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Tata plans Nano rollout by Durga Puja
13 Indian Cos among world’s 500 most-valued firms
‘South India has maximum approvals for SEZs’
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Aviation Notes
Investor Guidance
Siemens to cut 17,200 jobs
BoB hikes PLR by 0.5 per cent
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Tata plans Nano rollout by Durga Puja
No plans for 1 lakh car:
Maruti Asked if MSIL planned to come out with a competitor to Nano, Maruti Suzuki India chairman R.C. Bhargava said: "Let me make it clear that there is no plan to develop a one-lakh car at Maruti."
New Delhi, June 28 Tata Motors managing director Ravi Kant said in Kolkata that although it’s ambitious Nano project was facing cost overrun but the car could still be rolled out from its Singur facility by Durga Puja. The company is looking at starting the production either next month or by August at this plant. This, however, is of no threat to MSIL, whose chairman R.C. Bhargava in an interview with a privatre news channel, said, "It (Nano) increases the market size but it will not cut into the market of people who are buying cars that are in the Rs 2-lakh price category”. “A person who buys a car for Rs two lakh, I believe that there will be very few people who will buy this (Nano) car. It is a new segment," he added. Kant said Tata Motors was fully committed to the Nano project and the company had already sunk in around Rs 2,000 crore, which had overrun the earlier project cost of Rs 1,700 crore. He said that Nano was seeing a huge global interest with enquiries pouring up for setting up plants from the US, Latin America, Europe and South East Asia. The Nano had become a hit at the Geneva Motors Show this year, with many global firms showing their admiration for the Tatas to come up with a cost-effective product. However, Bhargava was of the view that people who could not buy Maruti 800 would now buy Nano as the price difference was huge. More than the existing entry-level cars, Nano will affect the two wheelers, he said. Casting doubts over maintaining the 1 lakh tag in the wake of rising steel prices and other input costs, Bhargava said: "The one lakh price will be difficult to maintain." Asked if MSIL planned to come out with a competitor to Nano, he said: "Let me make it clear that there is no plan to develop a one-lakh car at Maruti." |
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13 Indian Cos among world’s 500 most-valued firms
London, June 28 Excluding tobacco-to-consumer goods major ITC, all 12 Indian companies present on the list, including RIL, ONGC, NTPC, SBI, Bharti Airtel, DLF and Reliance Communications, saw their rankings drop in the latest FT Global 500 list, topped by American energy giant ExxonMobil with a market value of $452.5 billion. FT publishes the list based on the market capitalisation of the companies at the end of every quarter and the latest rankings are based on March-end figures for this year. The previous list was based on market cap figures at the end of December 2007. In the global list, ExxonMobil has replaced China's PetroChia as the most-valued firm, while US industrial conglomerate GE has retained its third position. Other firms in the top 10 include Gazprom, China Mobile, Industrial and Commercial Bank of China, Microsoft, AT&T, Royal Dutch Shell and P&G. Among the Indian companies, Mukesh Ambani-led RIL has been ranked the highest at 80th, down 15 places from 65th earlier, with a market cap of $82 billion. RIL is followed by state-run ONGC at 148th (down from 115), public sector power major NTPC at 206th (down from 163), Sunil Mittal-led telecom giant Bharti Airtel at 218th (down from 193), realty major DLF at 329th (down from 195) and Anil Ambani-led Reliance Communications at 350th position (down from 252). However, ITC climbed six spots to the 484th place, with a market value of $19.38 billion.
— PTI |
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‘South India has maximum approvals for SEZs’
Canacona (Goa), June 28 Andhra Pradesh leads the southern states with 54 notifications followed
by Tamil Nadu at 33, the white paper observes. The paper was released today during the ongoing first annual international conference and exhibition of IT
specific SEZs. The two-day conference brings together IT, ITeS companies and SEZ promoters from the country. In the approved SEZ section, Maharashtra leads with 88 formal approvals. West India has 60 in-principal approvals with Maharashtra leading with 37 in-principal approvals, the paper reads. The study mentions that Maharashtra is followed by Haryana with its 17 in-principal approvals and West Bengal with 13 ones. Of all the in-principal approved, formal approved and notified SEZs, most of them are IT or ITeS sector. "In all, 453 formal approvals were granted, of which IT-ITeS sector accounts for 283 approvals," the white paper reads. In the notified SEZ category, 135 are from IT-ITeS of the total 207 SEZs. The white paper, which touches upon all the aspects of these industrial enclaves, stated that the seeds of the present day SEZ model in India can be traced back to 1965, when Asia's first export processing zone was set up at Kandla in Gujarat. It adds that although SEZ is not a new concept in India, the country's leap towards SEZ is however only very recent. "With the SEZ policy set in place by 2000, the process of notification and approvals of SEZ have witnessed emergence of key demand driver being IT/ITeS sector followed closely by manufacturing and multi-product SEZs," the white paper says. Further it observes that despite fairly long period of existence of SEZ policy, India is still in the process of devising new means and ways of streamlining procedure of approvals and developments.
— PTI |
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Aviation Notes
The minister of state for civil aviation, Praful Patel stands for all-India, all airlines and all airports. He is ‘Sarcar’s’ super boss to supervise, monitor, promote, popularise and react on all sectors, government and private, in aviation. He does not merely stand for the newly-formed National Aviation Company (Air India). His slogan ‘perform or perish’ should be directed at all aviation functionaries and not only at Air India.
Drunk pilots leading to delay or cancellation of flights, deaths and injuries to workers and passengers on tarmacs, no food/snacks to passengers by no-frills carriers, paucity of toilet paper, loss and mishandled baggage, leaking roofs, thefts, taxi menace and several other ills have been plaguing the sector. All functionaries need disciplining. Any stick is good enough to hit Air India with. It is an ‘orphan’ airline, which cannot even cry. If in turbulent weather the commander keeps sign of ‘fasten seat belts’, he is blamed. The national airline is performing below its potential not merely because of indifferent functioning of the cockpit crew, cabin/crew and ground staff, but because of needless nagging and interference in day-to-day functioning by the politicians and bureaucrats. This is the only carrier which is not being run commercially and professionally. Being government undertaking, it is totally in the grasp of politicians and bureaucrats. They issue freebies, make foreign postings, engineer promotions and appointments, and also suggest transfers. If politicians and bureaucrats reduce meddling into day-to-day functioning, Air India will be as good as any foreign airline. It has competent commanders and efficient cabin crew. The much-talked about and much-hyped merger of two airlines, Air India and Indian, to bring about much needed change in work culture has failed. In fact, there is a marked deterioration because staff of two carriers has not blended beautifully. They are on different platforms as they are unsure of their future. The NAC has been acquiring new aircraft which are not being maintained, as they ought to be. The IAS-appointed bosses (both have since retired) were merely busy issuing complimentaries to their favourites. If the airline is privatised — please do it by all means — it will be answerable to none, as all other private operators are. They will be free and independent, as all private airlines are. Who is questioning misdeeds and wrong doings of private operators? None. Not even directorate-general of civil aviation (DGCA) is doing anything to reform and discipline private airlines which are functioning, as and how they please. The government should introduce one rule for all airlines instead of two-one for favourite and another for Air India. Don't treat Air India as ‘sarkari white elephant’. Allow it to function freely and its happier days will return. Statistics show that government officials and politicians prefer to travel by foreign and private airlines because they get certain `advantages' which Air India cannot provide them. The government should make it mandatory that all officials travel by Air India and things will start looking bright as before. A senior advocate was arguing in the court of Chief Justice whose son was defending his client in a murder case. Disappointed with the goings-on, the advocate politely said: "My honour, pardon my saying so, but you are being partial to him (meaning his son)". The justice, quietly rose from his chair, and said: "You are right. But if father does not help his son, who would? There was laughter in the court and the case proceeded unhindered. The question is: "Should parent decry his own product when other products are much worse? |
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Investor Guidance
Q: My grandfather had purchased some shares 10 years ago. I was nominated as the nominee for those shares. After his death I got the shares in my name. After getting the shares I have sold some shares. I want to know whether the amount of gain earned by me is taxable or it is long-term capital gain as the shares were purchased long before. If it is taxable, then please tell me under which section?
— Tejas A: For computing long-term capital gains arising out of the subsequent sale by the donee or the legatee, the cost of the property is the cost incurred by the donor when he originally acquired it, or the FMV as on 1.4.81 as assessed by an official chartered valuer, whichever is higher. Explanation ‘iii’ to Sec. 48, defines ‘indexed cost of acquisition to mean an amount which bears to the cost of acquisition the same proportion as Cost Inflation Index for the year in which the asset is transferred bears to the Cost Inflation Index for the first year in which the asset was held by the assessee or for the year beginning on the 1st day of April, 1981, whichever is later’. This means that in the case of an inherited or gifted property, the cost of acquisition is the cost to the original holder (or FMV as on 1.4.81) but the date of acquisition for indexing should be taken as the date of the inheritance or the gift. However, the character of long or short-term depends upon the date of acquisition of the original holder. In case this original holder has also acquired the property by way of gift or inheritance then it will be the date of very first holder who purchased or constructed the property. Please note that the long term capital gains (LTCG) earned by you from inherited shares sold on any recognised stock exchange in India are exempt from tax. Capital gains
Q: Please answer the following queries:— 1. If one earns capital gains from the sale of house, can one save taxes by investing the same in a plot of land? 2. If one builds a house on that plot after 2 years can one save capital gains tax? Even if the house is rented out and if the house is sold? 3. Will capital gains from sale of a plot be treated as capital gains from sale of a house? 4. A house sold in the current year was renovated (improvement) 10 years earlier as per plans submitted to the municipality. However there is no evidence of the expenses incurred. Can the owner consider the advantage of the renovation. (addl. expenses) to calculate the capital gains? — Tambe A: 1) No. Sec. 54 requires the capital gains to be invested only in a residential property. 2) The assessee can claim exemption u/s 54 by investing the long term capital gains LTCG (not the entire sale proceeds) to purchase a residential house within 1 year before or 2 years after the date of sale of the old house. Alternatively, a residential house may be constructed within 3 years after the date. 3) Capital gains from sale of a plot is not the same as capital gains from sale of a residential house for purpose of saving taxes. 4} We presume that you have got the permission given by the municipality on your record and you have got proof of the fact that you have renovated the property and the extent to which you have renovated is there in the blueprint. In that case, you can obtain an official chartered valuer to assess your value addition and use this figure for computing the capital gains. Interest from NSCs
Q: Does the interest received from NSC be added to taxable salary every year? For example, if I put Rs. 1,00,000 in NSC do I need to add Rs. 8,000 the next year to my taxable salary? — Vikas Kadam A: Yes, you need to do that. However, interest from NSC is deemed to be reinvested. Hence you will add Rs 8,000 to your income and reduce the same Rs 8,000 as a sec. 80C investment. So for that year (next year), your Sec. 80C fresh investment can only be Rs 92,000. This treatment will be valid for the first five years of the NSC. Interest for the sixth year will be fully taxable and will not be eligible for the Sec. 80C deduction. Tax liability
Q: My friend residing in the USA has now acquired theUS citizenship. He wants to buy a property in India and wants to know what will be his tax status/liability when he sells the property. — Shivanand A: If he sells the property before 3 years, then he will earn short-term gains else it will be long-term. It is just like what is applicable to a resident of India. Redesignating NRNR accounts
Q: I was an NRI and returned back to India on 15th June, 2007. Now I am working in India in a private company. I have NRE, FCNR and NRNR accounts which I have not closed so far. I am also operating demat accounts (NRE & NRO). Please inform me how to close all above accounts without losing any amount and without violating the rules. — P V G Krishnan A: After returning to India permanently, you should either close your NRE / NRO accounts or get them redesignated as Resident savings accounts. NRNR accounts have already been discontinued and the balances therein transferred to NRO account of the account holder. The same principle holds good for demat accounts also. Your NRE and / or NRO demat accounts need to be converted into Resident demat accounts. For getting the same done, you have to write to the banks (where you have the accounts) informing them about the change in your status. By changing the status of your accounts you will not lose any amount. The authors may be contacted at
wonderlandconsultants@yahoo.com |
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Siemens to cut 17,200 jobs
Frankfurt, June 28 The Sueddeutsche Zeitung reported that the Munich-based company was set to shed the jobs mostly white-collar and administrative without citing any sources. The Wall Street Journal also reported a similar figure, citing a person who was familiar with the matter.
— AP |
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BoB hikes PLR by 0.5 per cent
Mumbai, June 28 BoB's PLR would go up from the existing 12.75 per cent and the new rate would be effective from July 1, the bank said in a filing to the Bombay Stock Exchange. The lending rate revision would lead to increase in PLR-related lendings like floating home loan, corporate loan, car loan etc.
— PTI |
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