The Tribune, Chandigarh, India

	Obama for reducing trade barriers Mumbai, November 6 President Barack Obama today began his 3-day visit to India with a surprise announcement of business deals worth $10 billion in aviation, power and other sectors that will create 50,000 jobs in the US, but he made a strong pitch for New Delhi reducing trade barriers. Seeking to double bilateral trade and create employment in the two nations, he asked why India could not be the US' top trading partner from the 12th position now. Making the trip against the backdrop of strong electoral reverses on top of slow economic recovery, evidenced by the high unemployment rate, Obama appeared to strongly bat for American access to Indian market, saying US companies wanted to invest more in India. In the surprise announcement, Obama said that moments before he arrived several landmark deals were sealed between the US and India, which included Boeing's cargo and commercial aircraft with low-cost airline Spicejet, besides advanced jet engines by General Electric. He said Boeing was going to sell dozens of planes, while GE would give more than 100 electric engines among more than 20 deals worth $10 billion (nearly Rs 44,000 crore) and sealed before his arrival. He, however, wanted India to cut barriers to both trade and investment in different sectors saying cooperation could not be a one-way street and effort should be made for creation of jobs in both the countries. "Infrastructure, greater trade barriers and other issues still pose some serious challenges. Today, India is making major investments in its infrastructure and creating greater transparency to support growth and entrepreneurship. "Going forward that commitment must be matched by a steady reduction in barriers to trade and foreign investments from agriculture to infrastructure, from retail to telecom, because in a global economy new growth and jobs flow to countries that lower barriers to trade and investment," Obama said in his address to the US India Business Council as he began his maiden visit to India. Committing to enhancing American investment in India, the US President said the two countries had the potential to double bilateral trade in the next five years and such a situation would be a "win-win proposition for both the nations." ADAG, SpiceJet ink $5 bn deals Anil Ambani group firm Reliance Power and low cost airline SpiceJet today inked deals worth $5 billion with US firms, including GE and Boeing, in the presence of US President Barack Obama. Chairman ADA group Anil Ambani announced a deal to procure gas turbines for 2,400 megawatt power project from GE and other US firms, totalling an investment of $2.2 billion. The gas turbine for the Rs 10,000 crore expansion of Samalkot power project in Andhra Pradesh would be valued at $750 million, the company said later in a statement. On the signing occasion, Obama said the deals barely scratched the potential and dubbed India as the market of the future where Washington was willing to step up investments, provided uncertainties relating to tariffs and other barriers were addressed. "This is defining moment in Indo-US energy cooperation," Ambani said after signing the deal with General Electric Chairman Jeff Immelt here. As for no-frills carrier, SpiceJet is buying 30 planes from US aircraft manufacturer Boeing. The $2.7 billion deal was signed by SpiceJet Director Bhulo Kansagra and Christopher Chadwick of Boeing. — PTI
	IT industry pins hopes on Obama Tribune News Service New Delhi, November 6 Hopes are high in the Indian Information Technology (IT) industry that all issues concerning them would be addressed during the visit of US President Barack Obama with government all set to raise the ticklish issue. Although the US officials have indicated that there would be no change in Washington’s attitude towards hardening of rules on the outsourcing of jobs in the IT sector, the industry officials here are hopeful that there would be some breakthrough on the issue with the US, which remains the largest business provider to the country. External Affairs Minister SM Krishna, Commerce and Industry Minister Anand Sharma, and Minister of State for IT and Communication Sachin Pilot, have all assured the industry that the issue would be raised during the US President’s visit. Reports suggest that the officials representing the Indian IT industry are unlikely to get an audience with the US President where they were looking forward to put their views on outsourcing of IT services and the recent hike in the US visa fee for the IT software professionals. But there is still hope that with the government also raising the issue there would be some ground met. Over 60 per cent of the country's IT exports are to the US and the recent moves by the administration have come as warning bells for the industry.
	Canada, Punjab to explore JVs Amritsar, November 6 Canada's Alberta Province and Punjab today inked a MoU to work together in sectors including post-secondary education, agriculture, agro-based industry and Shale gas. Punjab's Deputy Chief Minister Sukhbir Singh Badal and Ed Stelmach, Premier of the Province of Alberta signed the MoU here, in a bid to start a new era of mutual cooperation between Punjab and Alberta province, which has a population of one lakh Punjabis. — PTI
	Aviation Notes ‘Cut’ perks for AI’s growth by KR Wadhwaney Airports worldwide are sleepless townships. They are nerve-centres for prompt and efficient transportation of people. Their rating is assessed on the service and friendliness provided to passengers, particularly disabled persons, and visitors. According to ICAO figures, the needs of the disabled passengers must be fully met promptly and graciously. Worldwide, including Asian countries like Singapore, Malaysia and Sri Lanka , the disabled passengers are not only provided on arrival wheel-chairs but they are escorted out by courteous hostesses to the waiting cars or taxis. They are provided the considerations and facilities they deserve. Sadly, it is not so in this country, where authorities at international and national airports continue to be indifferent and casual to the disabled passengers. The officials of the DIAL at Terminal-III, and Air India continue to treat the disabled passengers with scant respect. Recently, two aged passengers, arriving from Chennai to the IGIA's Terminal-III, were not provided wheels-chairs for four hours. They had to be, eventually, transported out of the building on luggage trolleys. Instead of apologising to the passengers for their gross negligence, officials of both Air India and DIAL gave unconvincing reasons for their failure in providing the basic facilities to the disabled passengers. This is not the first time that the disabled persons have been treated shabilly at the IGIA and other airports. There are innumerable instances and the Directorate-General of Civil Aviation (DGCA) must institute a probe as how and why wheel-chairs could not be provided when the officials of the national carrier, AI, had sent a requisition to Delhi well in advance. Judging from this failure and erratic functioning of baggage handling outfits, the DAIL officials should realise that designs and length and breath of the Terminal-III do not make it world class but service to passengers and other commuters does. Regardless of how much equity government places in the lap of the national carrier, its turnaround is not possible without drastically cutting overhead expenses, including heavy salaries and perks given to senior officials. The chairman-cum-managing director, Arvind Jadhav, is only the 'carrier' of the orders, which come from the top. Unless the 'troublesome root' is removed from the system, AI's happy days are far away.
	Investor Guidance STT can be refunded by AN Shanbhag Q: Kindly guide me in current provisions related to STT. If a person is dealing in shares & showing income under profit & gains of business, then whether STT paid will be deducted as TDS or not. Whether situation will change if he is showing gains as capital gains? — Manish Kedia A: Sec. 36 has been amended to allow deduction of STT only when the income from such transactions is included under the head ‘profits and gains of business or profession’. Consequently, Sec. 88E which offered a tax rebate when the total income of an assessee included business profits arising from securities transactions stands discontinued. Effectively, the tax benefit in respect of STT paid would result in a saving in income tax depending upon the tax zone as against 100% of the STT as could have been claimed as per the erstwhile Sec. 88E. On the other hand, the STT rebate as per Sec. 88E was a deduction from the actual tax payable. Consequently, in the case of business loss, the STT could not be carried forward or refunded. Now there is a possibility to do so. Whether transactions in share should be considered as business or speculation or capital gains / loss is a matter which continues to be left to the subjective discretion of the assessing officer. In any case, note that when the loss has occurred due to trading transactions of shares entered into by assessee on its own account and not on behalf of its customers, same is only speculative loss and cannot be set off against non-speculative income - Priyasha Meven Finance Ltd. v. ITO [ITA NO. 6686/Mum/2005 The way out of this dilemma is to maintain two separate and unconnected accounts, one for day trading (speculation) and another for investment (delivery-based). In such a case, assessee is not to be treated as trader in respect of sale and purchase of shares in investment portfolio - Sarnath Infrastructure (P) Ltd. v ACIT (ITA 301/Luc/2006) HRA rebate Q: I was working in Delhi till few months back , so I rented a house there and was living with my parents (in rented accommodation). Now because of job shift, I have shifted to Bangalore, but my parents are staying in Delhi (in the same rented accommodation). My parents are dependent on me, so I am continuing paying rent for Delhi accommodation .Can I claim this rent against my HRA? Please note that I don’t want to claim HRA against my Bangalore accommodation. I have heard that some court verdict has already passed on these lines, but I am not able to trace it out. — Nitin Goel A: One of the conditions for claiming HRA deduction is that the rented accommodation should be occupied by the employee. In this specific case, though you are paying the rent, the accommodation in respect of which the rent is being paid is not occupied by you and hence as per the wording of the law, you are not entitled to claim the deduction. II Q: I stay with my parents in their house. Recently one of my friends advised me to pay rent to my father to claim HRA exemption. Is this allowed under the rules? Is there any restriction on giving money to your parents and living under the same roof? — B V Pant A: There is a deduction available from the House Rent Allowance amount (HRA) if the taxpayer pays rent for the premises he or she resides in. The reason your friend asked you to pay rent to your father was because then you would be able to claim HRA deduction. If no rent is paid, then there is no deduction available. However, this transaction should not be entered into to evade tax. In other words it should be a genuine arms length agreement between you and your father. Also, note that your father would have to include the rent you pay in his taxable income. The authors may be contacted at wonderlandconsultants@yahoo.com