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More coordinated global action on anvil
Ambanis’ gas row reaches SC
6 Indian cities among top global outsourcing hubs
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Industry pitches for more cut in CRR, repo rate
Aksh Optifibre set to launch quad play
Tax Advice
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More coordinated global action on anvil
Singapore/London, October 26 The US Federal Reserve is expected to cut rates sharply following share selloffs and currency collapses in developed economies and the emerging markets of Asia and Latin America. Advance third-quarter US economic growth data due on Thursday is expected to show a 0.5 per cent contraction in GDP after 2.8 per cent growth the previous
quarter. The likelihood of the Fed slashing interest rates by 50 basis point stood at 74 per cent on Sunday and at 26 per cent for a cut of 75 basis points to 0.75 per cent. Asian and European leaders closed ranks over the weekend to bolster confidence among investors facing the worst financial crisis in 80 years. Protecting real economy
China's central bank governor, Zhou Xiaochuan, was on Sunday quoted as saying that Asia's second-largest economy was in good condition but needed to be on guard to fend off risks. Investment in infrastructure and expansion of consumer demand could help cushion the impact of weakening exports, he said, adding that the central bank would work out an advance plan to provide emergency help to banks if needed. Japanese economics minister Kaoru Yosano said on Sunday the government should increase its bank bailout scheme to around 10 trillion yen ($106 billion) from two trillion. South Korea, whose markets and currency tumbled in the global financial storm last week, said it needed to take urgent action to prop up the economy. Some analysts said the central bank would cut interest rates on Monday. Kuwait's central bank was forced to step in to support Gulf Bank, hit by derivatives trading losses, prompting the government to announce it would guarantee deposits at local banks. Saudi Arabia unveiled plans to deposit 10 billion riyals ($2.67 billion) into the Saudi Credit Bank, established to extend interest-free loans to poor citizens. Gulf markets tumbled to multi-month lows on Sunday. Both Qatar and Oman indices fell more than 8 per cent, Dubai sank 5.53 per cent and Saudi Arabia's index slipped 1.83 per cent after an 8.7 per cent slide on Saturday. Governments have pledged about $4 trillion to support banks and restart money markets to try to stem the crisis and are considering tougher financial rules to guard against any repeat. The IMF is likely to finalise a deal this week with Iceland, where the financial system has all but collapsed. The international lender is also due to approve a plan to give those economies that qualify for a proposed new liquidity fund an unusually high level of
funding. — Reuters |
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New Delhi, October 26 The petition filed in public interest by one B A Aloor, a practising advocate from Pune, alleged that the feud between two brothers is affecting people at large who are being deprived of "the most-efficient and environment-friendly fossil fuel". The matter is coming up for hearing on November 10. While challenging the High Court order dismissing its intervention application, the petition said vacation of stay would help early gas production from Krishna-Godavari basin. Contesting the interim stay order, Aloor said the delay in using the gas from the RIL-controlled KG basin gas fields was against public interest, as the gas could be used as a cheaper alternate source of energy. — PTI
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6 Indian cities among top global outsourcing hubs
Chandigarh, October 26 This has been revealed by a study by CyberMedia's Global Services, the media platform for global IT outsourcing and BPO industry, and Tholons, a global investment advisory firm. Besides this, India's representation in the top 50 emerging global outsourcing cities has grown to four, from last year' three, with the addition of Jaipur to the list at number 31. The other three cities in the list include Kolkata at number six, Chandigarh at number 12 and Coimbatore at number 17. Cebu City (The Philippines), Shanghai (China) and Beijing (China) lead the list of emerging global outsourcing cities. The study also revealed that six Chinese cities are a part of the top 50 emerging cities for global outsourcing list, compared to India's four. These are Shanghai, Beijing, Shenzhen, Dalian, Guangzhou and Chengdu. It also revealed that to set up an outsourcing centre, the choice of the right city has become more important than the choice of the country. Attributes of a city like available resources (quality and type of work force, cost, available infrastructure) and its long-term potential in fulfilling demand for specific services determine its attractiveness as an outsourcing centre. Ed Nair, editor, Global Services, said, "The concept of an individual location being a 'one-stop-shop' has given way to 'smart, multi, selective sourcing' models, wherein selected processes are outsourced only to the most appropriate destination." He said while Bangalore, Krakow, Makati City and Shanghai are established centres for finance and accounting, Cebu City, Colombo and Pune are the emerging centres of excellence for this function. Similarly, he said, Shanghai, Dublin and Bangalore are currently the leading centres for research and development and Beijng, Chennai and Prague have been identified as the new emerging centres for R&D services in 2008. Avinash Vashistha, CEO, Tholons, said, "Clients' focus on identifying outsourcing locations has driven the emergence of 'Centres of Excellence.'
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Industry pitches for more cut in CRR, repo rate
New Delhi, October 26 "In the area of domestic liquidity and interest rates, it is necessary to further reduce repo rate by at least 0.5 per cent and CRR by 1.5 per cent to ensure adequate liqudity and reasonable cost of funding," the chamber said. Inadequate liquidity, high cost of capital and volatile foreign exchange market are the major problems being faced by the Indian economy, CII said. Non-availability of credit and low level of confidence in the industry are also symptomatic issues affecting the country's economic growth, it added. "A line of liquidity needs to be provided to mutual fund and Non-Banking Financial Corporations sectors to enable orderly operation of financial markets," it said. It also asked the government to guarantee all bank deposits for a two-year period to maintain deposit confidence in the banking sector.
— PTI |
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Aksh Optifibre set to launch quad play
Chandigarh, October 26 The company has already conducted successful tests of the quadruple play in Mumbai, where MTNL has a spectrum for third generation (3G) technology. Once the spectrum for 3G technology is allocated by the Government of India to other individual players, Aksh Optifibre is ready to offer this service across the country. This was disclosed by the head, strategic initiatives, Aksh Optifibre, Ashok Kumar Wahi, during an interaction with The Tribune here. The company has already tied up with MTNL to provide IPTV service in Delhi and Mumbai, and with BSNL to provide this service in Jammu, Shimla, Agra, Meerut and 16 other cities across Punjab and Haryana. While Aksh rolled out services in Mumbai and Delhi last year, all 20 BSNL network cities are now going live. Wahi said IPTV provides limitless interactivity, compared to the limited interaction possible through DTH. “It allows customers to surf Internet via TV sets; view caller IDs of incoming calls and with a click on the remote, even make a phone call and; purchase a product while it is being advertised on the TV. IPTV users can also stream TV programmes to their mobile or to an office computer rather than being restricted to viewing them on TV sets alone. IPTV users can also schedule their TV programmes and also set reminders from their PCs at work using the IPTV network. This service can offer localisation and customisation of content up to the user level,” he said, explaining how IPTV has an edge over the direct-to-home technology. Aksh sees its IPTV customer base swelling from 10,000 now to 0.5 million over the next three years. Besides subscription charges (which is around Rs 150 per subscriber per month) for the content, the company sees a greater revenue opportunity from “pull advertising” which it launched recently. “This is a new technique pioneered by us and we are getting a good response from advertisers,” he said. Wahi added that Aksh is looking to increase its revenue from services like IPTV and VoIP and, by the turn of the decade, expects 60-70 per cent of revenue and 80 per cent of operating profit to come from these services.
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LIC’s ULIP covered u/s 80C
by S.C. Vasudeva Q. Kindly clarify the following points: I am a government pensioner having some income from interest also. (i) I shall be completing 65 years on 30th December, 2008. Shall I be eligible for senior citizens status during the current financial year i.e. Financial Year 2008-09 (Assessment Year 2009-10) for availing exemption limit of Rs 2.25 lakh? (ii) I propose to invest Rs 1 lakh each year in LIC’s ULIP Scheme (Market Plus). Will this amount qualify for deduction under Section 80C? This scheme has a lock-in-period of three years. (iii) In first week of Oct, 2004, I opened an account of Sr. Citizens Saving Scheme in Post Office. I withdrew the whole amount on 1st Jan, 2008 after a lapse of more than three years. Authorities deducted one per cent of the amount. Were they entitled to do so? (iv) I have more than Rs 1 lakh in my National Savings Scheme, 1987. I intend to withdraw Rs 35,000 from this account every year and intend to invest in LIC’s ULIP Plan - Market Plus. (a) Shall I be eligible for deduction of the amount under Section 80C? (b) While calculating the income tax, have I first to add this amount in total income or not while calculating my tax liability? — Satish Sharma, Mandi A. The answer to your queries is as under: (i) You would be entitled to claim the status of a senior citizen for the financial year 2008-09 in case you attained the age of 65 years on 30th December 2008. (ii) Contribution to Unit Linked Insurance Plan of LIC Mutual Fund is covered within the provisions of Section 80C of the Income-tax Act 1961 (the Act). You would thus be entitled to a deduction of the said amount under the aforesaid section. (iii) The deduction has been made in accordance with the provisions of Rule 9(1)(b) of the Senior Citizens Savings Scheme Rules 2004 and in my opinion the same is in order. (iv) You will be entitled for the deduction under Section 80C of the Act if the amount withdrawn from an account under National Saving Scheme 1987 is contributed towards the Unit Linked Insurance Plan of LIC Mutual Fund. (v) As indicated above, the withdrawn amount will have to be included as part of your income and thereafter deduction in respect of contributions made to ULIP should be claimed. Revised IT return Q. In the previous year’s income tax return, I had shown Rs 5,000 as deposited in the PPF account and I availed the tax benefit. Unfortunately, this amount could not be deposited in the PPF account. Now may I show this discrepancy in a revised income tax return or mention in the ensuing year’s income tax return. — Amandeep Kaur, Ferozepur A. It will be better to revise the return. I hope you had filed the return of your income for the year ended March 2007 by 31st July 2007. If that be so, you can revise your income-tax return for the said year before 31st March 2009.
Advance tax Q. I am a senior citizen and have income from pension, interest earned on deposit under Senior Citizen Savings Scheme and fixed deposits with banks. My income for the year ended 2009 would be about Rs 3,50,000. The tax is being deducted in respect of my interest income from fixed deposit and Senior Citizen Saving Scheme. Am I liable to pay advance tax? — Ajay Kumar A. The advance tax is payable on an estimated income for a particular year. The gross tax computed on the estimated total income is reduced by the estimated amount of tax deductible at source. Accordingly, in your case, the gross income-tax will be computed on your total income and after adjusting the tax deductible at source, you would be required to pay advance tax in case the net amount exceeds Rs 5,000. The first installment of 30% of such an amount should have been paid by 15th September 2008. You can now pay 60% of the amount so computed by 15th December 2008. The interest for non-payment of first installment i.e. that of 30% will have to be included in such a payment. The balance 40% on the estimated total income will have to be paid by 15th March 2009. TDS on freight
Q. Would you be kind enough to explain the implications of tax deducted at source with regard to the freight payment. Is the deduction to be made only in respect of the freight amount or on the total amount of bill which may include the cost of goods which are being sold? — Manit Sharma A. TDS should be deducted on freight amount only. Section 194C of the Act provides that no deduction shall be made if the amount credited or paid or is likely to be credited or paid does not exceed Rs 20,000. However, where the aggregate of the amounts credited or paid or likely to be credited or paid to the same person during the financial year exceeds Rs 50,000, the person responsible for paying such sums shall be liable to deduct income-tax under the aforesaid section. |
Air India offer Motorola launch Rel Money tie-up for gold Spice contest R Systems’ net dips
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The central banks are likely to launch new coordinated emergency action this week to calm panic in financial markets, which could be rocked further by data pointing to global recession.
