New Delhi, January 1
Direct taxes have crossed the net collection figure of Rs 2.05 lakh crore, registering a growth of 42.36 per cent, and looks set to cross Rs 3 lakh crore (Rs 3 trillion) in the current fiscal.

Non-committal on tax moderation Even as the direct tax collections this fiscal set to cross Rs 3 trillion, a 12 per cent jump over the budget estimates, union finance minister P. Chidambaram today remained non-committal on moderation of taxes in the coming budget. “Let me recall what I said. If voluntary compliance (in taxes) increases there is a case for moderation. That does not mean the case has been accepted. You make a case for moderation instead of writing imaginary stories,” Chidambaram said at a select press briefing here.

With the buoyancy in collection, direct taxes have left indirect taxes behind and for the first time become the largest contributor to the government’s exchequer, finance minister P. Chidambaram disclosed at a select briefing here today to announce constitution of a Directorate of Income Tax (HRD) in the Central Board of Direct Taxes (CBDT).

The minister also disclosed that the much-awaited new income tax code is ready and would be released along with a discussion paper soon.

Corporate tax collection during April-December 2007 stood at Rs 1,27,683 crore, a growth of 39.84 per cent year on year, while personal income tax collection (including STT, FBT and BCTT) stood at Rs 77,380 crore, recording a growth of 50.06 per cent.

“Direct taxes collection would be more than the indirect taxes this year and there will be primary surplus in the tax collection as against the budgeted targets,” the finance minister said. The budgeted direct taxes target is Rs 2,67,490 crore.

To have new adviser Finance minister P Chidambaram will have a new adviser in place of Parthasarathi Shome, who has resigned from his post. "Yes," Chidambaram said at a press conference in reply to a question whether he would have new adviser in place of Shome. However, he refused to disclose any names. — PTI

As far indirect tax collections were concerned, he expressed confidence that the budgeted targets will be achieved. “Service tax and customs duty collections are more or less comfortable, though some shortfall is there on excise collection… We will achieve the budgeted target,” he added.

Chidambaram said over 35 lakh refunds have already been issued up to December as against about 27 lakh refunds issued during the same period last fiscal.

The refund banker scheme is being extended to cover all non-corporate taxpayers in the country, he said, adding that the tax return preparer (TRP) scheme, launched to help small taxpayers comply with tax laws, is being extended with more TRP certifications this year.

Out of the about 13.36 lakh electronic returns filed by taxpayers this fiscal, over 50 per cent returns are voluntarily, an increase of about 290 times over the last year. He added that the facility of electronic payment of direct taxes is now available through 12 agency banks and 12 more banks are likely to extend this facility.

“All tax payers having e-banking facility through these banks can pay their direct taxes online,” he said.

As far as the new income tax code is concerned, Chidambaram said: “The code is ready along with a draft discussion paper. The draft discussion paper is running into 70 odd pages and I am trying to concise it to 50 to 50 pages… It will take few more days.”

Giving details about the directorate of income tax (HRD), the minister said it shall have three divisions of cadre management, performance management and training and capacity building.

Among the functions of the directorate would be to develop and design strategic human resource plans, policies and processes aligned to the goal and vision of the Income Tax Department for ensuring optimal resource mobilisation and delivery of taxpayer services.

An additional amount of about Rs 200 crore has been sanctioned to the IT Department to develop its infrastructure and human resources over the next couple of years.

New Delhi, January 1
India’s exports recorded a growth of 26.82 per cent in November 2007 to $12.42 billion as against $9.79 billion in the same month last year.

However, hardening of rupee against the dollar and high interest rates resulted in 35 per cent downfall in exports in November 2007 as against $13.3 billion in October 2007.

In rupee terms, exports touched Rs 49,000.16 crore, which was 11.51 per cent higher than the value of exports during November 2006.

The cumulative value of exports for the period April-November 2007 was $98.39 billion as against $80.59 billion, registering a growth of 22.08 per cent in dollar terms and 8.02 per cent in rupee terms during the same period last year, according to the government data released here today.

Imports during November 2007 were valued at $19.83 billion, representing an increase of 29.26 per cent over the level of imports valued at $15.34 billion in November 2006. In rupee terms, imports increased by 13.66 per cent.

Cumulative value of imports for the period April-November, 2007 was $151.19 billion as against $119.08 billion, registering a growth of 26.97 per cent in dollar terms and 12.43 per cent in rupee terms during the same period last year.

Oil imports during November, 2007 were valued at $5.8 billion, which was 16.72 per cent higher than oil imports valued at $4.99 billion in the corresponding period last year. Oil imports during April-November 2007 were valued at $43.35 billion, which was 10.19 per cent higher than the oil imports of $39.34 billion in the corresponding period last year.

Non-oil imports during November 2007 were estimated at $14.01 billion, which was 35.30 per cent higher than growth of non-oil imports of $10.35 billion in November 2006.

The trade deficit for April-November 2007 has increased to $52.80 billion than the deficit at $38.49 billion during April-November 2006, the data said.

Mumbai, January 1
Market regulator SEBI today unveiled draft regulations aimed at checking insiders from making short-term profits based on their access to price sensitive company information.

"Such a regulation will check insiders, who have greater access to price sensitive company information, from taking advantage of information for the purpose of making short-term profits," SEBI said in a consultative paper on introduction of 'Short Swing Profit' regulations in India.

The regulator has invited public comments on the paper by January 21.

Under the regulations proposed by SEBI, the insider would be asked to surrender the profits made through trading in shares of the company, as well as its parent and subsidiaries, if the purchase and sale transactions are conducted within six months.

SEBI said that similar regulations exist in the US that requires 10 per cent shareholders, directors and officials of a company to give up any profit realised from purchase and sale of securities of the company within a period of six months.

The regulator said it assumed that insiders have a long-term investment in the company and are not expected to make rapid buy/sell transactions, which are presumably based on at least some level of superior access to information, whether material or not.

According to the draft regulations, the insiders would include all key management personnel, directors, direct or indirect beneficial owners having at least 10 per cent shares, alone or in concert, of the company.

The short-swing rules will automatically apply if same shares are purchased and sold by the insider within six months. It also stipulates that "where there is a delay, interest may be payable" by the insider.

Under the regulations, these provisions will not apply in case of transactions approved by a regulatory authority, employee benefit plans, bonafide gifts, inheritances and mergers and acquisitions.

SEBI also said that "certain securities may also be considered as exempt altogether" from the purview of short-swing regulations. — PTI 

New Delhi, January 1
Telecom regulator TRAI today asked internet service providers (ISPs) to specify minimum speed of broadband plan, which must be at least 256 Kbps.

In a statement here, the regulator said it has already written to all service providers not to use words like "up to" while specifying minimum speed of the plan. They have also been asked to bring to the notice of subscribers the definition of broadband while offering high speed internet connections.

While efforts are being made to ensure minimum 256 Kbps speed for broadband connections, some stakeholders have also suggested raising the minimum speed of such connections.

To set future roadmap for defining broadband in the country, TRAI also released a status paper on 'Broadband Speed' today.

TRAI said the speed of the broadband connection is generally defined to indicate average speed which can support different applications. Broadband speed is related both to the availability of the network access infrastructure as well as to appropriate content which requires such high internet speeds. — PTI 

Patna, January 1
Close on the eve of bid by Tata Motors to take over international Jaguar and Land Rover, Tata Steel took another major step towards brownfield expansion of its works at Jamshedpur.

Reports said the project, once completed by December 2010, would make Jamshedpur the single largest unit and one of the most efficient steel plants in the world by doubling its present capacity from five million tones per annum.The groundbreaking ceremony for the expansion project was conducted at Jamshedpur on Monday.

The project was said to be linked to Tata group’s objective of growth and globalisation as the company was also making steady progress on its three greenfield steel projects in Jharkhand, Orissa and Chhattisgarh, to add 23 million tonnes to its present capacity.

Besides, it also plans to set up steel making capacities in Vietnam, Iran and Bangladesh in the near future.

It may be noted that with the recent acquisition of Corus by Tata, the combined enterprise has an aggregate crude steel production capacity of around 28.1 million tonnes with about 82,700 employees across four continents.

Managing director, Tata, B. Muthuraman, was confident to complete the new expansion project at Jamshedpur on time despite challenges.

It was learnt that the company also planned to develop a number of facilities in connection with this new expansion project in Jamshedpur.These included augmentation of mines, setting up a six million tonnes per annum pellet plant, and expansion of Hooghly Metcoke (coming up at Haldia in West Bengal) from 1.2 million tonnes to 1.6 million tonnes,besides a few others.

New Delhi, January 1
India Inc may have made waves across the world for its entrepreneurial spirit in 2007, but back home it made headlines for court battles to settle business rivalry and challenge government decisions.

Titans of the Indian industry will try to settle scores and resolve issues when courts start opening from tomorrow after a two-week vacation.

Family feuds involving the Bajaj brothers (Rahul and Shishir), Kanwars (of Apollo Tyres), Singhals (of Bhusan Steel) will resume before the Company Law Board (CLB), while a battle involving Tatas and Birlas over Idea Cellular will play itself out before the Supreme Court during this year.

The Delhi High Court as well the telecom appellate tribunal Tdsat will start hearing the issue of spectrum allocation and permission to dual technology that reached its crescendo at the turn of the year.

The spectrum controversy took wings in October last year when the government allowed Anil Ambani-led Reliance Communications to operate in the lucrative GSM segment under the dual technology clause and new norms for spectrum allocation as recommended by sector regulator TRAI.

Cellular Operators Association of India (COAI), the lobby of GSM operators such as Bharti, challenged the norms in tribunal Tdsat and the Delhi High Court, but did not get any relief.

Besides, anti-monopoly watchdog Monopolies and Restrictive Trade Practices (MRTPC) would also hear a matter pertaining to possible cartelisation in the GSM mobile industry, which saw the three big players simultaneously raise mobile tariffs by 20 per cent in August last year. Tdsat too is scrutinising the matter.

Elsewhere, the Delhi High Court is expected to continue hearing rebel cricket league ICL’s petition seeking to protect its cricketers from punitive action.

The fair trade practices body MRTPC may stop admitting new cases this year after the Competition Commission of India Act gets the presidential nod.

In 2007, MRTPC cracked its whip on banks for tweaking interest rates simultaneously and hidden costs charged by them on credit cards, for suspected cartelisation by cement manufacturers and airlines. A report on the alleged illegal grouping by cement producers is expected to be presented to MRTPC by its investigative unit DGIR.

A similar allegation involving tyre and shipping industry is likely to be forwarded to MRTPC for probe.

Besides, the fair trade practices body was also made to intervene in the fight between global sports gear majors Nike and Adidas over the rights to use brand Sachin Tendulkar. The case will resume this month.

Among the notable cases, the Supreme Court will hear are the ones pertaining to calculation adjusted gross revenue of telecom companies for the purpose of paying licence fee to the government.

The year 2007 saw the case pertaining to late Priyamvada Birla’s will, through which she bequeathed the Rs 5,000-crore estate of M.P Birla to her chartered accountant R.S Lodha, reach the Supreme Court. The apex court has reserved its verdict in the cross appeals filed by the Birlas and Lodha challenging each other’s right to object late Priyamvada Birla’s 1999 will and late M.P Birla’s 1982 will. — PTI

Mumbai, January 1
The Sensex Mini Futures, which have been launched to woo retail investors to the derivative market, today settled 161 points up at 20,462 points.

The small sizes of the contracts in the mini futures help in attracting retail investors with lower comparative capital outlay, trading costs, more precise hedging and flexible trading.

The Sensex mini derivatives have a market lot size of five. The Sensex mini contracts are available for one, two and three months along with weekly options. Market regulator SEBI approved introduction of seven new derivative products for the domestic market. — PTI

Mumbai, January 1
Following the SEBI's decision to permit short selling, Reserve Bank today allowed foreign institutional investors to sell shares without owning them at the time of trade.

"It has now been decided in consultation with Government of India and SEBI, to permit Foreign Institutional Investors (FIIs) registered with SEBI and sub-accounts of FIIs to short sell, lend and borrow equity shares of Indian companies," RBI said in a notification.

Short selling, lending and borrowing of equity shares of Indian firms shall be subject to conditions prescribed by the RBI, SEBI and other regulatory agencies from time to time, it said.

The Reserve Bank said, the short selling would be guided by the current FDI policy and short selling of shares by FIIs would not be permitted for equity shares which are in the ban list or caution list of the apex bank.

Besides, borrowing of shares by FIIs shall only be for delivery into short sale, it said, adding FIIs need to maintain margin or collateral in the form of cash which would not earn any interest.

The circular said, the designated custodian banks would separately report all transactions pertaining to short selling of shares and lending and borrowing of scrips by FIIs in their daily reporting with a suitable remark for monitoring by RBI.

To enable this necessary amendments to the Foreign Exchange Management Regulations, 2000 are being issued separately, it said.

Earlier, FIIs were not allowed to engage in short selling and were required to take delivery of securities purchased and give delivery of securities sold. — PTI