 |
|
|
Time to rejig oil pricing policy
Badal disburses subsidy to 404 industrial units
India for ‘Open Sky’ policy with UK
Tax Advice |
|
Talks Today
Labour Laws for SEZs
ICICI Bank in US
|
|
Time to rejig oil pricing policy
New Delhi, May 25 The present pricing structure was approved by the Cabinet on the recommendations of the Rangarajan Committee in mid-2006. The Cabinet approved a mix of measures to reduce the burden of continued mismatch between domestic retail prices and international oil prices against the projected loss (under-recoveries). The Rangarajan Committee had included a small increase in price of petrol and diesel, a cut in customs duty on petrol and diesel (from 10.5 per cent to 7.5 per cent), and introduction of trade parity pricing (based on 80 per cent import and 20 per cent export prices) at refinery gate for petrol and diesel, and the balance under-recoveries were to be partly made up by oil bonds to be contributed by the ONGC and GAIL. The estimated impact on account of shift to trade parity and reduction in customs duty on petrol and diesel was Rs 6,500 crore only. For example, if import parity price is $100 and export parity price is $90, the oil companies would get 80 per cent of $100 and 20 per cent of $90 totalling to $98. The government, by this method could reduce under-recovery by $2. What is faulty with this method is that consumers are paying international prices indirectly and then taxes on these prices. There is no rationale for oil marketing companies to get import parity and export parity prices, especially when these companies are refining products in India. “What is the purpose of setting up a refinery and importing crude when these companies have to be given import prices. It would be better to import products directly rather than doing the whole refining process if the international prices have to be paid,” said an oil pricing expert. The rationale of giving these companies trade parity prices was always opposed by various ministries within the government. The Planning Commission and finance ministry were opposed to the idea because they also believed that giving oil marketing companies such international prices was not justified at the expense of consumers. The finance ministry is of the opinion that these companies should be paid for their manufacturing cost plus a refining margin, which would be around 10-15 per cent . When calculated from the cost plus method, as advocated by the finance ministry, the cost of petrol and diesel will come down drastically and there may actually be no under-recoveries (loss) to the oil companies, as is being claimed. In the cost plus formula using international benchmark refining cost, the oil companies should be getting $80 for production of petrol and diesel. So, the government will not have to pay the heavy price of oil bonds on petrol and diesel and will have to issue bonds only for LPG and kerosene, which would be minimal. |
|
Badal disburses subsidy to 404 industrial units
Ludhiana, May 25 Promising to clear the backlog of pending subsidy by next financial year, he said: "We consider pending subsidy as a debt the government owed to industrialists. While Rs 100 crore would be given this year, the entire backlog would be cleared by next year." Declared in 1996, capital subsidy to the tune of Rs 565 crore was pending, out of which only Rs 112 crore was disbursed in 10 years. It was last financial year that the SAD-BJP government announced to clear the backlog and disbursed Rs 100 crore. Addressing industrialists, Badal assured them that their problems like electricity and infrastructure were being taken on priority. Locational disadvantage apart, the state's industry has been suffering on account of Centre's policies, he said. "We are not against the incentives that our neighbouring states are getting but the treatment should have been equal. Due to absence of incentives, no new units are setting base here and even the existing ones are shifting out." He said within the next five years various power generation projects, which would generate 5,000 to 6,000 mega watt of electricity, would be put to operation, making Punjab a power surplus state. The recently formed industrial boards for large, medium, small industries and traders would help bridge communication gap between government and industry, he said. "We would soon grant Cabinet minister's status to the chairman of these boards and that of minister of state to the vice-chairman."
|
|
India for ‘Open Sky’ policy with UK
London, May 25 "On our side we are keen. We would like to have an Open Sky policy with the UK on the pattern of the one with the USA," Ashok Chawla, secretary, ministry of civil aviation, said during an Interactive Session at the India House here. Chawla, who held talks with his counterparts here, said Britain has pointed out their problems in having such a policy with India "because of EU stipulations." Talks were also on with the EU to overcome the problem, he said. The civil aviation secretary said in the last three to four years, the number of flights from the UK to India has increased very rapidly — from 27 to 113. At present there are 56 weekly flights from India to the UK and 57 flights from the UK to India. Shiv Shankar Mukherjee, India's High Commissioner to the UK, who presided over the Interactive Session this weekend, said: "Tourism and Civil Aviation is an area which is almost exploding in India. Tourism which was No. 64 in the priority list of development in the First Five Year plan, has now emerged as among the largest creator of jobs in the country and India is literally on the move." K D Row, regional manager, Air India, UK and Ireland was also present. Referring to the explosive growth that is taking place in passenger travel and aircraft induction, Chawla said "there has been a cumulative growth of 25 per cent." — PTI
|
|
LTCG tax-free if transaction is subjected to STT
by S.C. Vasudeva Q. You have explained that long-term capital gain (LTCG) would not be taxable in case the transaction has been effected through the stock exchange and subjected to the Securities Transaction Tax (STT); otherwise it is taxable @ 10% plus surcharges etc. In my case, some shares have been sold through the issuing companies under their own schemes for disposal of shares in odd-lots and some others are under way for similar disposal. A copy of one of such schemes is enclosed for your information. I think that as the concerned companies do all required formalities and bear all expenses, including stamps on transfer deeds etc. my transactions under the above odd-lot schemes fulfil the condition for exemptions in L.T. Capital Gain Tax. However, please advise the correct position to avoid any complication. — Darshan Singh Bhar, Patiala A. On the basis of the enclosed papers, it is evident that the transactions of the odd-lots shares will be undertaken through the share brokers and would be on the platform of the Mumbai/National Stock Exchange. If that be so, the transaction would be subjected to Securities Transaction Tax and therefore capital gain if any, arising on sale of such shares should not be assessable to tax in view of the provisions of section 10(38) of the Income-tax Act 1961 (the Act). IT return Q. I am a senior citizen and a retired govt employee with a pension income of Rs 2 lakh for the financial year 2007-08. I am PAN card holder and have been filing my income tax returns regularly. Kindly guide me in respect of the following:- 1. I have fixed deposits in some nationalised banks on which I shall be earning an interest of about 75,000 on their maturity during the financial year 2010-11. To avoid TDS, I have submitted form 15H depicting therein my PAN and Ac/ No. with amount of all fixed deposits to the concerned banks. I wanted to know whether all those FDs for which Form 15H has been submitted are to be shown in my income tax return for the financial year 2007-08 or not. 2. Secondly, I have received a sum of Rs 62,000 as interest on my fixed deposits during the financial year 2007-08 for which the TDS by the concerned bank has already been deducted @ 10.2%. In this regard I want to know whether or not this sum of Rs 62,000 is to be clubbed with my total pension income of Rs 2 lakh for the current financial year for which I have already paid the TDS. In case I have to add this interest amount to my pension income then the tax slab rises to 30% level from 20% by this addition. Kindly also intimate me the last date to file income tax return for 2007-08. — N.L. Gupta, H.P. A. The answer to your queries is as under: (i) The Income-tax return form applicable for the assessment year 2007-08 did not require any disclosure with regard to the fixed deposit held by an assessee. The new ITR-1 which would be applicable in your case for the assessment year 2008-09 also does not include any column for this purpose. (ii) The amount of Rs 62,000 received by you as interest will have to be added to your pension income for the purpose of arriving at the total income on which tax would be leviable in accordance with the provisions of the Act. (iii) The last date for filing the return of income in respect of the financial year 2007-08 is 31st July, 2008. II Q. I am a retired person (61 years) having income from bank interest (FDR etc) only. This was expected to be around 90,000 in the F/Y 2007-08. So I submitted form 17G to the bank for TDS purpose. Now some arrears of pay and allowances are likely to be received, by which it may be just a little above Rs 1,10,000 also, the bank has already deducted I/ Tax during the financial year, before I could submit the 17-G form. Taking into account my savings under Section 80C, no tax will be due on my income even if it is sufficiently above 1,10,000. In these circumstances, can I file I/Tax return for the A/Year 2008-09 to claim the refund of income-tax already deducted? Or the return is compulsory even if no refund is due? — P. N. Gupta, Sangrur A. In accordance with the provisions of Section 139 of the Act, in case your total income exceeds the maximum amount on which no tax is payable and income remains below taxable limit on account of the deductions allowable under Section 80C of the Act, you are required to file the income tax return. Accordingly, in case you expect that your total income will exceed Rs 1,10,000, including the interest income, but will be below the taxable limit after claiming deduction allowable under Section 80C of the Act, you should file your return of income by 31st July 2008. Tax liability Q. The following are details of salary and agricultural income of my daughter for the year 2006-07. 1. Gross salary Rs 80,000 p.a. 2. C.P.F. deduction Rs 10,000 p.a. 3. Agricultural income Rs 80,000 p.a. Kindly clarify the following points with respect to ITR 2007-08 in ITR-1 form. (i) Income chargeable will be Rs 80,000 (at S.No. 1 o the Form) or 70,000/- (ii) At S. No. 7 aggregate income will be (Sal) = 80,000 /70,000 + 80,000 (Agri) (iii) At S.No. 8(a) of the Form tax payable on aggregate income 80,000+80,000 = Rs,3,500 less 1,35,000 exempt. (iv) At S. No. 8(b) in respect of Net Agricultural Income - how to calculate it? It is not clear in S. No. 11 at (f) of ITR-1 Form. — T.S. Lamba, Ludhiana A. On the basis of the figures reflected in your query, there should not be any tax liability on the total income as the income chargeable to tax without the addition of agricultural income is below Rs 1,45,000 being the maximum limit up to which tax is not payable by an assessee who is a woman below the age of 65 years. The net agricultural income is to be computed after deducting the expenditure incurred for earning the said income. In case the amount of Rs 80,000 represents the net income in your case, the amount of Rs 80,000 will be reflected against the column of net agricultural income. |
|
India to press for changes
in WTO proposals
New Delhi, May 25 India has already rejected the proposals in the drafts on opening global market for agriculture and industrial goods on the ground that they were unfair to the millions of small and marginal farmers of the developing world. At the talks stretching over the next 10 days, the Indian side led by additional secretary in the ministry of commerce Rahul Khullar would engage with key interlocutors from the US, European Union, Japan and Canada to bridge the differences on the issues of livelihood concerns and farm subsidies. India would press for enlarging number of items to be included in the Special Safeguard Mechanism (SSM), through which it can protect its farmers from cheap imports. The May 19 draft has disappointed India and 45 other developing nations by limiting the number of items in SSM to 3-8. They would also try and strengthen the different groupings of the developing countries like G-20 as the officials do parleys with counterparts from Brazil, China, South Africa, Mexico, Thailand and Pakistan, a senior official told PTI. While the areas of differences were narrowed down to 30 in the new negotiating text on agriculture, the key areas of interest to India would be Special Products, which can be protected through a tariff wall even as the world market is thrown open after an agreement is signed under the Doha Round. — PTI
|
|
Maharashtra plea turned down
Shiv Kumar Tribune News Service
Mumbai, May 25 Under a draft law prepared by the Maharashtra government, a number of relaxations on existing legislations like the Bombay Shop and Establishment Act, laws pertaining to trade union activity, the Provident Fund Act and the Contract Labour Act were proposed to be enacted specially for SEZs. According to state government sources, companies setting up shop in SEZs would be allowed to hire and fire labour at will and employ women without restrictions even while employees would be restricted from forming trade unions. The draft prepared in consultation with a number of ministries in the Vilasrao Deshmukh government had been forwarded to the Centre more than a month ago, sources said. However, the central government has turned down the proposal to relax labour laws even inside SEZs. The state government will now delete provisions pertaining to relaxation of labour laws in the proposed legislation, sources said. Under the SEZ scheme mooted by the Central government, state governments were asked to make appropriate legislations pertaining to land acquisition, rehabilitation of project-affected persons and compensation for those whose land was being acquired. While Maharashtra's proposal regarding land acquisition and rehabilitation has passed the Centre's scrutiny, the state has to now work on the labour laws. Sources here say, a few states like Gujarat, which had enacted laws to hire and fire labour before the UPA government came to power four years ago will have an advantage over Maharashtra. However, labour activists here say that even companies not located in SEZs have skirted the provision of labour laws by hiring people on short-term contracts. Maharashtra has been pushing for legislation which prohibits outsiders from holding office in trade unions. Maharashtra has the largest number of proposed SEZs in the country. While 24 SEZs have been notified so far, 37 SEZs have been given in-principle clearance. In addition, 88 SEZs have been given formal clearance.
|
|
| 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 | |
