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Deora to finalise policy on LNG distribution
Vijay Mallya eyes Whyte & Mackay
Market Scan |
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Rs 100-cr order for Liberty
Tax Advice
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Deora to finalise policy on LNG distribution
New Delhi, October 15 Companies that have been invited for Monday’s meeting include
Exxonmobil, BG, Shell, Reliance Industries, Anil Dhirubhai Ambani (ADA) group, Teri, British Petroleum, state- owned oil companies and the Planning Commission. Other issues likely to come up for discussion at the meeting are applicability, grant of authorisation, exclusivity, bid bond and performance bond, conditions under ROU acquisition and unbundling of operations. “The policy will be finalised after ascertaining the views of the participants,” said the minister in a statement. The ministry has already held discussions on the draft policy with some of the stakeholders, including the gas industry group. The objective of the draft policy is to promote investment from public as well as private sector in gas pipeline and city gas distribution networks. The Minister would also take up the matter of gas grid connectivity, technical HSE (Health, safety and Environment) standards and role of state governments. The issue of exclusivity - of allowing two players in the same city for gas distribution - has been a major hurdle in finalising the gas distribution policy. There have been conflicting demands from companies including RIL, REL, ONGC, IOC, GAIL and foreign energy firms like BG, BP, Shell, ExxonMobil for exclusivity in setting up networks to retail natural gas to households and commercial entities and CNG to automobiles. According to industry sources, Reliance Industries Ltd and Reliance Natural Resources Ltd do not favour more than one player in the same city. “But on the other hand, there is BG India which has been partnering with Mahanagar Gas Ltd in Mumbai and Gujarat Gas in Gujarat for city gas distribution,” sources said. “The main thrust of the policy is to secure consumer interest in terms of gas availability and reasonable tariff. It is envisaged that the policy would facilitate the laying of gas pipelines and city gas distribution networks,” the petroleum ministry said in a statement Friday.
— PTI
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Vijay Mallya eyes Whyte & Mackay
London, October 15 Mr Mallya met Whyte & Mackay's Chairman Vivian Immerman and other senior managers. He also had a tour of the distiller's central Scotland bottling plant in Grangemouth. Other options on the table for discussion were a strategic alliance or distribution deal, The Independent, reported yesterday. Buying W&M would enable him to blend its single malts with his own Indian-produced whiskies, which would improve their flavour and give them authenticity.
— PTI
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Minor correction due to profit booking likely
by J.C. Anand
Sensex closed at 12,736 points on Friday, registering an all-time new peak touching an intra-day high of 12,756 points. But, the rally was confined to a few scrips. Only nine stocks made a contribution to it: Reliance Communication (up by 6.32 per cent), Infosys (up by 3.34 per cent), HDFC Bank (up by 3.11 per cent), BHEL (up by 2.90 per cent), Wipro (up by 2.17 per cent), Reliance Industries (up by 1.77 per cent), Grasim Industries (up by 1.55 per cent) were the major contributions to the rally. Tata Steel, Larsen & Toubro, Bajaj Auto, NIPS and Reliance Energy actually closed lower. According to an analysis, as many as 80 per cent of the traded stocks are still trading below May 10 level.
Last week’s upsurge in the market is largely due to the reports that the Indian economy is doing well and the second quarter results are expected to be very good. Decline in international crude prices, now at $ 57 per barrel, and stable interest rates also contributed. According to the latest data with the revenue department, an overall direct tax collection for the April — September period of the current financial year was up by 74 per cent with 47.88 per cent from the corporation tax and 30.56 percent from the income tax. The corporate sector has made higher advance tax payments by September 15. Some analysts are of the view that the Sensex would touch even 1,3000 points. It is possible that during this week there may be minor correction due to profit booking. But the profit-booking is likely to be confined only to those stocks which have gained in the rally. In general, the stock market has remained untouched by the rally. It is possible that there may be a rally in small and mid cap scrips by Wednesday. The second quarter results of Infosys were beyond market expectations and it is expected that major software companies will also be announcing good results. Aztec Soft has reported much better results than its first quarter performance. BASF India, IL & FS and Dalmia Cement have also reported good results. Tata Tele has now announced details about its rights issue with 19 shares for every 100 shares held @ Rs. 17/- per share. Aditya Birla N (previously known as Indian Rayon) has already announced that it would issue rights issue but the full details have to be worked out. In the month of November some massive IPOs including that of DLF will be hitting the market. The investors should keep this in mind. A market gossip is that ABB is likely to issue bonus shares along with its annual results.
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Rs 100-cr order for Liberty
New Delhi, October 15 Liberty, which had clocked a turnover of about Rs 204 crore in the previous fiscal, has received the order - spread over three years - to manufacture and supply industrial-wear safety shoes from Van Eten, its Chief Executive Officer Adesh Gupta told PTI over phone from Germany. He said Liberty would supply anywhere between 3-5 lakh pairs of safety shoes to Van Eten in the next three years.
— PTI
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No rebate permissible on interest income from FDRs
by S.C. Vasudeva Q. I am 83 years old and retired Gazetted Officer. My queries are: (i) Whether any rebate is allowed on bank FD’s interest income, last year rebate was Rs 2000 (ii) Is it compulsory for the banks to deduct TDS if the amount during that exceeds Rs 50,000 even after filing forms H or G? (iii) Whether there is any rebate on rental income of i.e. whole or part of property rented out. (iv) Whether there is any rebate on pension received during the year. For example, my income is — Pension: Rs 70,000 approx (including medical allowances) Bank interest: Rs 70,000 (approx) Building rent: Rs 70,000 (approx). House tax not yet assessed for the year 2005-06. Previously i.e. last year it was about Rs 1,500. (v) Whether I being a senior citizen can avail expenses incurred - salary paid to a boy to attend to bank matters, look after the property, repair etc. & collection of rent, if so, how much? — M. S. Dewan A. (i) The bank interest is fully taxable according to the new provisions of the Act. (ii) In case of senior citizens, form 15H can be filed if the total estimated income is NIL. The deduction of tax at source in such case will not be made. However, in your case the total income is well above 1.85 lakh (being the maximum amount on which tax is not payable by senior citizen). Accordingly, the bank should deduct tax at source so as to avoid any penal consequences. There is no rebate allowable in respect of pension income. (iii) The rental income is computed after allowing a deduction of 30 pc from the annual letting value which is computed on the basis of rent received less house tax paid. (iv) No deduction is allowable for salary paid to a person who has been employed to look after the bank matters or the property. ULIP maturity Q. (i) I had started depositing Rs 7,500 p.m. in ULIP in the name of minor child (now he is major). In 2008, this scheme will be due. My query is whether on maturity this amount belongs to my son or not. If not, please let me know the procedure so that this amount belongs to my son. (ii) I am a bank employee. Our bank gives a loan of Rs 3 lakh @ 9 pc. Now I want to give loan to my son. I will also charge interest @ 9 pc from my son who will invest the money in shares. Kindly let me know is this a right way or is there any other way? — Narender Kumar, Rohtak A. (i) On maturity of the Unit Link Insurance Policy, the amount deposited by you in the name of your son would be paid by the company to your major son and the amount would belong to him and can be utilised in the manner he likes. (ii) You can definitely give a loan to your son by raising a loan from the bank. It would, however, be advisable to charge a higher rate of interest from your son in the method suggested by you otherwise it may be treated as a tax avoidance case thus leading to a long-drawn litigation. Tax liability Q. I am a salaried person having a total salary of Rs 2.30 lakh during 2005-06 (F.Y.). I have invested Rs 3.50 lakh in various unit schemes of UTI during 9/2003 and sold out these units during 6/2005 and received about Rs 3.75 lakh from this sale. My queries are: - (i) How to calculate tax liabilities for 2005-06 (My total savings in GPF/PPF is more than Rs 1 lakh)? (ii) Whether income from UTI units is tax-free, if yes, under which section? (iii) What is the price indexing system to calculate long-term gains. Whether these are applicable in my case? (iv) What is price index for 2003-04, 2004-05? — R. K. Sharma A. The sale of units costing Rs 3.50 lakh after indexation would result in a long-term capital gain of Rs 701. This is because the cost on the basis of cost indexation would work out at Rs 3,75,701. The sale price being Rs 3,75,000. There would thus be a loss of Rs 701. This long-term capital loss can be carried forward for a period of 8 years for an adjustment against future capital gain. The tax on your salary income after deducting savings up to Rs 1 lakh would be Rs 3,060, including education cess of 2 pc. (i) The income from sale of UTI units is taxable @ 10 pc. The income in the shape of dividend received from UTI is tax-free under Section 10 (35) of the Act. The cost inflation index is applicable in your case as the Units having been held for a period of more than 12 months would be treated as a long-term capital asset and, therefore, the benefit of indexation would be allowed to you. The cost inflation index for the Financial Year 2003-04 and 2004-05 is as under:- 2003-04 - 463 2004-05 - 480 II Q. I am a medical teacher doctor and getting salary from college and I am also in contract with a medical firm for consultation and getting professional income for advice. The firm deducts TDS at the rate of 5.10 pc. I would like to know the rebates/deductions available to reduce my tax liability of professional income of consultations. Whether rebate for conveyance, depreciation of value of car, employed driver’s salary and bank charges for clearing of cheques is permissible. My salary income Rs 2,37,720 (annual); Investment u/s 80C, LIC, PPF, NSC etc. Rs 1,00,000; Pension plan insurance premium u/s 80CC Rs 10,000; Donations u/s 80G Rs 4,000; Income from consultations Rs 2,25,000; TDS by firm Rs 11,500; My cars value (purchased on 07.07.04, first year depreciation) Rs 7,05,000; Driver’s salary Rs 2,000. Kindly calculate the income-tax liability. Am I supposed to pay advance tax by 15.03.06. — Dr Harmeet Kaur, Amritsar A. You can claim the deduction for expenditure incurred in connection with the carrying on your professional activity. Such expenditure should have a nexus with the conduct of the professional activity. Accordingly, the expenditure incurred on conveyance for going to the place where you are offering the consultancy services, expenditure on the maintenance of the car utilized for that purpose and depreciation thereon can be deducted while computing your taxable income. In case driver has been employed for the above purpose, the expenditure incurred towards the salary would also be deductible. It would be helpful incase separate account books are kept for such purpose which would be an evidence for claiming the deductions. The relevant supporting vouchers for incurring the above expenses should also be retained so that the same can be produced in case of any query by the department. On the basis of figures given by you, your tax liability would be Rs 12,698 excluding interest chargeable u/s 234B and 234C of the Act. You are also supposed to pay advance tax on 15th September, 15th December and 15th March. Tuition fee Q. I am a government pensioner. I had paid Rs 8,470 to a coaching centre on account of coaching fee for my daughter during July 2005. Please advise whether I can avail the benefit of this amount under Section 80C or not? — J. Singh, Nahan A. Section 80C of the Act provides for the deduction of tuition fee paid whether at the time of admission and thereafter to any university, college, school or other educational institutions situated in India for the purpose of fulltime education of any two children of the assessee. In view of the above requirements of the section, it would not be possible to get the deduction of Rs 8,470 paid to a coaching centre for IAS. and other competitive examinations in respect of your daughter. This is because the coaching has not been paid for the fulltime tuition fee of the course conducted by the institute referred to in the section.
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