 |
|
|
India, Turkmenistan in gas, oil pact
Aviation Notes
Investor Guidance |
|
|
|
India, Turkmenistan in gas, oil pact
Ashgabat (Turkmenistan), April 5 The two countries signed a memorandum of understanding (MoU) in this regard that will also allow Indian companies to work with the firms here on several projects that are being planned by hydrocarbon-rich Turkmenistan in oil exploration and setting up of gas pipelines. Minister of state for external affairs E Ahamed and Tukmenistan Deputy Prime Minister for oil and gas Tachberdy Tagiev inked the MoU in the presence of visiting Vice President Hamid Ansari at a time when New Delhi was looking towards Central Asia to meet its growing energy needs. The MoU which is expected to give a boost to Indo-Turkmen ties was the higlight of the visit of Ansari to the country which is among the top ten countries with gas reserves. "India, with its vast requirement of energy and dependence on imports to meet it, is Turkmenistan's natural partner", Ansari said, adding Turkmenistan is geo-strategically located and with its vast hydrocarbon resources has an important role to play in world's energy security. Turkmenistan President Gurbanguly Berdimuhammedov said the participation of Indian companies and enterprises in the oil-gas projects in Turkmenistan was to the benefit of both the countries. The Vice President thanked the Turkmen leader for "the formal support we have received about our membership in the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project". The proposed project envisages a transnational pipeline that would carry gas from the Dauletabad fields here to energy hungry India. The Vice President said despite the excellent progress in the ties, the potential of bilateral cooperation and economic engagement is "far from realised". Ansari noted that Indian companies like ONGC, OVL, GAIL, and IOC have vast expertise, experience as well as required capital and are willing to "constructively participate" in Turkmen energy sector, in upstream and downstream activities. Petroleum minister Murli Deora had a stopover visit here sometime back during which heads of oil companies had also accompanied him, a senior official accompanying the Vice President said.
— PTI |
|
Air India, Indian staff on collision course
by K.R. Wadhwaney Eight months into merger, two national airlines, Air India and Indian (Airlines), have not blended. The staff, senior and junior, with varying work culture, different priorities and besieged by 15 unions, continue to be on virtual collision course. This is mainly because the National Aviation Company of India Limited (NACIL), led by the outgoing chairman-cum-managing director V Thulasidas, sadly treated Air India staff more equal than the staff of Indian Airlines. This false step of not treating staff of two airlines on par with each other has caused more turbulance than reducing it. The marriage has merely been on paper. The two airlines are functioning independently while wearing the tag of one brand, NACIL. Unfortunately, the incidents of delayed operations, off-loading of passengers, cancellation of flights and technical snags continue to occur bringing negative publicity to the new brand. Add to it, renovation concerns at Delhi and Mumbai airports, the whole scenario has turned messier causing insurmountable problems to the passengers. Surprisingly, neither politicians, nor ministry of civil aviation nor even airline bosses have taken concrete measures to reduce losses by minimising over-head expenses. Air India offices in Delhi, for example, are housed in rented buildings. The annual rental runs into crores. The analysts feel that they can easily shift to the airline house off Parliament Street and Safdurjung building in addition to Rajiv Bhavan. Why should reservation offices of the merged entity be located at two divergent areas. They should be under one roof. This will mean saving money as also providing much-needed facility to the travellers to seek reservations in one building. Similarly, offices in Scindia House and Hansalaya building should be merged into IA buildings. Similar yardstick should apply for offices in several other cities. The new CMD Raghu Menon is fully aware of the goings-on in the complex industry since he has been connected with aviation for quite sometime. This is unlike his predecessors, Thulasidas and Vishwaspati Trivedi who, when they joined AI and IA, respectively, had no knowledge whatsoever of the functioning of the two carriers. The marraige, forced on two carriers by politicians, may be successful if the NACIL is allowed to function commercially and professionally, as several other foreign carriers are working. There should be no interference in day-to-day functioning. Let the management undertake recognised measures in making promotions, transfers and appointments of cabin crew and other staff on merit, skill and seniority. Similarly, the Indian Airlines staff should be given arrears, as Air India staff has already been given. There should be no disparity and favouritism. The competition from private carriers and foreign airlines is razor-sharp. India has become a cash-cow for passenger and cargo sectors. The tourism in the country is picking up despite manifold problems. The task is tough. But NACIL can burn brightly, as it used to do during the regime of JRD Tata, if the staff is handled judiciously without any partiality.
|
|
Interest on NRE deposits tax-free
by A.N. Shanbhag Q. I would like to know if there will be any TDS deducted on the interest earnings of my NRE/NRO/FCNR accounts? If yes, how can I avoid it since my earnings for 2008 will be less than Rs 1 lakh? — Ramu A. Interest on NRE and FCNR deposits is tax-free in India. The interest on NRO is fully taxable at the rates applicable to Residents. Under the Income Tax Act, it is mandatory for the banks to apply TDS (= Withholding Tax) on NRO interest. But there is no income threshold under which TDS is not chargeable. However, TDS is applicable @30.9% (plus surcharge, if any) on the entire NRO interest (without any threshold). The TDS is applicable on accrual basis on cumulative deposits. If your tax liability is less than the TDS, the only practical way to get the refund is to file the tax returns. The TDS is not the same as your tax liability. This liability will be computed on the basis of the income tax rates which again depend upon your income and the exemptions, deductions and rebates you can claim. The TDS can be set off against your actual tax payable and pay only the difference. In case the TDS is higher than the tax liability, you will get a refund. Form 15-G (for non-seniors) or 15-H (for senior citizens), requesting for non-application of TDS is not available for NRIs. Exemption to STs
Q. I am residing in Ladakh (J&K) w.e.f. December, 2007 and also a Scheduled Tribe (ST) member and working in a insurance company (government undertaking). I have heard that the income of a member of a Scheduled Tribe residing in Ladakh is exempted. Kindly clarify it and if exemption is available then under which section/clause it will be exempted. — Nawang Dorje A. Yes, the exemption is still available. To avail of the exemption, both of the following conditions must be satisfied :- 1. The person must be a member of the Scheduled Tribe as defined by Article 366(25) of the Constitution of India and, 2. He should be residing in any area in the state of Nagaland, Manipur, Tripura, Arunachal Pradesh, Mizoram or districts of North Cachar Hills, Mikir Hills, Khasi Hills, Jaintia Hills and Garo Hills or in the Ladakh region of the state of Jammu and Kashmir. In that case, any income which accrues or arises to him a) from any source in the areas or states aforesaid b) by way of dividend or interest on securities from all over India does not form of total income and hence exempted from tax. PPF rules
Q. I have queries regarding PPF. What happens if PPF A/c holder or subscriber dies under following condition:- i) If 15th year of investment period is not completed ii) If extension period of five years (15 years are over) is not completed. Can legal heir close the a/c or he/she has to continue for the full duration? — Vrinda A. On the death of a subscriber, the balance in the PPF account is paid on demand to his nominee or successor. However, the balance, if not withdrawn, continues to earn tax-free interest. No partial withdrawals are permitted. It is risky for the nominee to continue the account because the nominee cannot appoint a nominee. In the case of joint nominees, PPF rules allow allocating percentage of benefits against each nominee. But the form does not provide a specific place to indicate the same and therefore, many fail to indicate the percentages. In that case, the nominees are treated as joint holders and have to apply together for the closure. Each nominee is required to identify himself to the satisfaction of the concerned officer. After completing all the formalities, a single cheque is issued in favour of all of them together. This cannot be encashed, unless all the nominees have a joint account. If no nomination is in force, the balance will be paid to the legal heirs on production of succession certificate or probate. In India, it takes an enormous time, money and energy to obtain this. To mitigate hardships, balance up to Rs 1 lakh, may be paid to legal heirs on applying in Form-G along with i) a letter of indemnity, ii) an affidavit, iii) a letter of disclaimer on affidavit and iv) a death certificate. Tax on gift
Q. I have received a sum of Rs 8 lakh from my brother, upon surrendering my share of inherited property to him after my mother’s demise. I would like to know if the same is taxable. — Sunita A. The transaction can be treated as a family arrangement related with inherited property. It can also be viewed as a gift from your brother to you. In either case, there is no income tax involved. However, if the property has been sold, the tax on capital gains will have to be paid by your brother. DTAA with Kuwait
Q. I recall reading in the newspapers a couple of years ago that when the Emir of Kuwait visited India, a protocol was signed between the Governments of Kuwait and India whereby income earned in one country was not to be taxed in the other country. I am a potential beneficiary of such an agreement (if it exists), since my pension is earned in Kuwait but taxed in India. I would like to know that such an exemption exists in the Income Tax Rules; and if it does exist, the Section/subsection providing such an exemption. — Bhuskute A. As per the provisions of Article 18 and Article 19 of Double Tax Avoidance Agreement (DTAA) between Kuwait and India, pension earned from Kuwait by a person who has subsequently relocated to India will only be taxed in India. The authors may be contacted at
wonderlandconsultants@yahoo.com |
|
Gold regains 12k level
New Delhi, April 5 Gold prices rose by Rs 160 to 12,010 per 10 grams while silver surged by Rs 570 at Rs 23,720 per
kg. — PTI |
RIL mulls rig manufacturing OVL’s plan in Venezuela
|
|||||
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Letters | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
Videos
