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ADAG lines up Rs 150k cr on infra
Stunning Indian gift for JCB staff in UK
Bicycle that can reach up to 90 kmph
Hike in petro prices imminent
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Air India’s offer on flights to US
Tax Advice
Market Update
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ADAG lines up Rs 150k cr on infra projects
New Delhi, January 13 "In infrastructure sector that includes power, investment could be Rs 1,50,000 crore in the next five years. As a private sector entity, we will play a crucial role... The growth is through organic route," Ambani told PTI. Asked about international acquisitions for higher growth, he said: "Today the whole world is embracing India. In power and coal sectors, there will be selective international opportunities." He, however, said the focus of infrastructure business would be the country itself. ADAG's power business has targeted an investment of Rs 1,00,000 crore, even as the group is aggressively bidding for projects in road and transport sectors. After being shortlisted, Reliance Energy, one of the group company, has made financial bid for Rs 50,000-crore Ganga Expressway Project in UP. The group is also bidding for airports at Udaipur and Amritsar, besides being in the race for ambitious Mumbai Trans Harbour Link project. Asked about the prospect of becoming the richest Indian ahead of elder brother Mukesh after the listing of Reliance Power, IPO of which is opening on January 15, Anil said "I am usually amused with such comments." "I firmly believe in the potential of India and what both of us have achieved and will continue to hopefully achieve what will make one man happy in heaven, which is my father (Dhirubhai Ambani)," he said. Talking about his father's belief in benefiting the shareholders most, he said: "We have proved him right when he said one and one is not two but hundred. He should be delighted." The two groups have a combined market capitalisation of over Rs 8,00,000 crore, accounting for more than 11 per cent of the wealth created by all the listed companies. Anil, who just returned to India after global road shows for Reliance Power IPO — through which the company expects to raise up to Rs 11,700 crore, said he was lucky to have been graduated from Dhirubhai Ambani Management Institute. — PTI |
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Stunning Indian gift for JCB staff in UK
London, January 13 The Christmas bonus for the entire workforce of digger makers JCB was one of the big financial stories of the festive season in Britain, and now one of its senior executives confirmed just before flying to New Delhi that India had everything to do with it. "The connection is straightforward: our largest sales last year was in India, wasn't it," JCB global director Philip Bouverat told IANS on the sidelines of an India investors' gathering. Bouverat is among a planeload of British executives representing 60 companies arriving in New Delhi on Monday - part of an investment delegation being led by trade and investment minister Lord Digby Jones. In 2006, JCB India became the first construction equipment manufacturer in India to sell more than 50,000 machines — the final figure was well in excess, at 56,000. And sales in 2007 are likely to hit 70,000 - "a phenomenal growth," enthused Bouverat. All 5,500 staff at the Staffordshire-based unit got a 1,000 pound windfall after global sales topped £2 billion for the first time this year, largely on account of the demand in India, where the construction industry is enjoying an unprecedented boom. —
IANS |
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Bicycle that can reach up to 90 kmph
New Delhi, January 13 These include the only line of bicycles on show by the Noida-based FireFox Bikes and super luxury car by none other than the ingenious Dilip Chhabria on the chassis of the ever-dependable Ambassador. Madone 5.2, is a Rs 1 lakh pedal bicycle and has 20 high-speed gears with which it can reach speeds which actually are much faster than the small wonder Nano. Madone can notch up to 90 km per hour. This made-to-order bike is a de-tuned version of seven-time Tour de France winner Lance Armstrong's bike — Madone 6.5 SSL — and has a lifetime warranty on the carbon frame. It can bee taken anywhere and weighs just about 900 gm. FireFox managing director Shiv Inder Singh said the company's participation at the expo was aimed at creating awareness among young customers on the need for environment-friendly transport alternatives. Ambeirod, a super luxury car, evinces more interest as it is a fusion of the Ambassador, the iconic brand redolent of India’s pre-liberalisation days, and marques like the Rolls Royce or Maybach. Created by renowned designer Dilip Chhabria, the car was unveiled at the Auto Expo by Sanjay Dutt. The car, priced at Rs 4 crore, which took 50,000 man hours to develop, is a three-seater with gull wing doors, three LCD TV screens coupled with a V12 engine.
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Hike in petro prices imminent
New Delhi, January 13 The toss is between a Rs 4 a litre hike in petrol and Rs 2 per litre increase in diesel prices, and Rs 2 a litre rise in petrol and Re 1 per litre hike in diesel prices. The former option is to come with a 2.5 pc cut in customs duty on crude and petroleum products and a Re 1 a litre excise duty cut on petrol and diesel. The latter option, however, is to be coupled with a 5 pc cut in customs duty on crude oil and petroleum products and a Re 1 a litre excise duty drop on petrol and diesel. —
PTI |
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Air India’s offer on flights to US
Chandigarh, January 13 The passengers travelling in premium classes — first and executive — will get a free limousine pick-up and drop service to/from Delhi’s Indira Gandhi International Airport and JFK airport at the time of departure/arrival. Additionally, they will receive a gift voucher of $75 and $50, respectively, for each sector of travel for onboard duty-free shopping. It may be recalled that Air India had also started Mumbai-New York non-stop flight in August, 2007. Those who purchase tickets in India for travel by this flight from Delhi/Mumbai in the economy class on full published IATA fares can avail of Air India’s Companion Free Scheme. The scheme is valid till March 31, 2008.
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Prize money is taxable
by S.C. Vasudeva Q. I had got a gift item in promotional scratch card worth Rs 7,999 (MRP). I want to know whether: 1 The company is suppose to deduct TDS ? 2 If yes, then how much? 3 How much worth of gift/prize in kind is taxable? — S.P, via e-mail A: The term ‘income’ includes any winning from lottery, cross word puzzles, races, including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever. The term lottery has been defined to include winnings of prizes awarded to any person by draw of lots or by chance or in any other manner whatsoever under any scheme or arrangement by whatever name called. The term card game and other games of any sort has been defined to include any game show, an entertainment programme on television or electronic mode, in which people compete to win prizes or any other similar game. On the basis of the above definitions, the replies to your queries are as under: 1. In case the gift received by you is covered within the aforesaid definition, it would be subjected to deduction of tax at source under Section 194B of the Act as the amount of prize is more than Rs 5,000/-. 2. The deduction of tax at source as per the Finance Act, 2007, in this case would be at the rate 30 per cent plus applicable additional surcharge in respect of education cess. 3. The entire amount of gift/prize whether received in any kind or in cash is taxable. TDS deduction
Q. What is the TDS implication on freight charged separately by the vendors along with material in the invoices? If TDS is required to be deducted, then TDS is to be deducted on the freight part only or on the whole of the bill? Whether limit of Rs 20,000 per bill or Rs 50,000 for the whole year shall be applicable as per Section 194C? — Hardeep Saini A. A TDS should be deducted on freight amount only. Section 194C of the Income-tax Act, 1961, (the Act) provides that no deduction shall be made from the amount credited or paid or is likely to be credited or paid if such sum does not exceed Rs 20,000. However, where the aggregate of the amounts credited or paid or likely to be credited or paid during the financial year exceeds Rs 50,000, person responsible for paying such sums shall be liable to deduct income-tax under the aforesaid section. Senior citizen
Q. I am a retired colonel and a senior citizen. I file my returns regularly. My date of birth is April 3, 1942. Kindly confirm that: a) that I qualify as a senior citizen for tax purposes during this FY i.e. 2007-2008 b) that I can file my return as a senior citizen for the AY 2008-09. — Col H.S. Dham A. The answer to your queries is as under: a) You will be treated as a senior citizen for the financial year 2007-2008 relevant to the assessment year 2008-09. b) You can file the return for the assessment year 2008-09 in the status of a senior citizen. HUF account
Q. My father expired on October 30, 2006. He was filing income-tax returns(ITR) and operating his savings account etc as karta of HUF account. My query is: a) Whether ITR of the current year shall have to be submitted by me as karta? What documents, like death certificate or affidavits, shall have to be sent by me and to which authorities? b) A PPF account is existing in his HUF account in the post office. Can I operate it as karta, being the only surviving son or the written consent of all members of HUF is required to be forwarded? If yes, to which authorities and in which performa? — Wadhwa A. a) IT return of HUF will have to be filed in the status of HUF and the return would be signed by you as karta of the HUF. According to the present position, no documents can be filed alongwith the return. The death certificate and the affidavit be kept ready so that these can be filed in case the return is taken up for scrutiny or the information in this regard is sought by the department. b) The account will have to be operated by you as a karta. However, the process whereby you can do so will have to be ascertained from the bankers with whom such account is being maintained. Embezzlement of funds
Q. A credit entry has been found in the bank, which is of an amount withdrawn from bank of a religious institution and utilised for personal purposes, with the intention to return the money. It is alleged that this is embezzlement. Kindly let me know can this amount be treated as income of a person in whose account the amount has been credited. — S.S. Kanwar, Amritsar A. In the case cited by you, the issue which will have to be determined is the intention behind the withdrawal of the amount by a person. In case the intention is to refund the amount, which can be proved by a documentary or any other evidence, the amount so withdrawn can not be treated as income of the person, who has withdrawn the amount for personal use. The allegation as to embezzlement will have to be proved. It may be added that an unauthorized use of money may be treated as embezzlement but may not be an ‘income’ of the person, who has made such use. The ‘income’ as per decided cases should flow from a source. A source of income may be described as the spring or fount from which a clearly defined channel of income flows. In view of the above definition, it may be difficult to say that alleged amount of embezzlement is an income in the hands of the person, who is alleged to have embezzled it. |
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Q3 results to set the tone
by Lalit Batra
The two key Indian market indices witnessed divergent trends with the Sensex gaining 140 points to close at 20,827 and Nifty lost over a per cent to close at 6,200. The divergent trends in the indices can be attributed to the weights that these indices assign to different stocks. Since IT stocks have higher weight in Nifty, it bore the brunt of sell off in IT stocks post Infosys results.
The third quarter results will set the tone for the market in the coming weeks, though earnings surprise holds the key. There might be some liquidity drain from the secondary market as action might shift to primary market as the mega initial public offer (IPO) of Reliance Power opens for subscription on January 15. Future Capital IPO Future Capital Holdings Limited (FCH) is the financial services arm of the Future Group, which is a business group focusing on consumption-led businesses in India and is also one of India’s leading organised multi-format retailers. FCH’s three primary lines of business are investment advisory and asset management, retail financial services and research. FCH is expected to do well with its niche business model, retail boom and future group synergy. FCH’s lineage, being a Future Group company and having a strong understanding of the retailing business, gives it an edge over its peers. Though the IPO pricing is stiff at over 6.5 times its book value at the upper end but the same will get reasonable as the company leverages its book and acquires volume in retail lending. For investors, with high risk appetite, Future groups tag will, meanwhile, ensure the bounce in the stock on listing. Therefore, investors with high risk appetite may apply at the higher end of offer price of Rs 765. Reliance Power RPL is part of the Reliance Anil Dhirubhai Ambani (Reliance ADA) group and was established with the purpose of developing, constructing and operating power projects domestically and internationally. The company is currently in the process of developing 13 medium and large-sized power projects with a combined planned installed capacity of 28,200 MW. India is a power-deficit country. The gap between demand and supply has been increasing, leading to increased power shortages. The economy still faces an acute shortage of power. And therein lies the opportunity for companies operating/planning to operate in this space. RPL has a portfolio to develop 28,200 MW of generation capacity over the next few years, which is one of the most aggressive plans as far as the sector is concerned. The only downside to the Reliance Power are the risk of execution and change in government policies. Though as per strict financial models and after comparisons with its peers like NTPC, Tata Power, the IPO is very stiffly priced, but given the Reliance-ADAG tag, the stock is likely to find favour with FIIs in the short run and other overseas investors willing to take stake in Indian power sector in the long run. Investor may apply at cut in the IPO with a clear objective of gains on listing. |
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New Delhi, January 13
