The Tribune, Chandigarh, India

	India, Syria launch joint business council Geetanjali Gayatri in SYRIA Tribune news service November 28 India and Syria today launched a Joint Business Council to double the bilateral economic and trade volumes with visiting President Pratibha Patil saying that at current levels they were "far below potential". Observing that the bilateral trade between the two countries was far below its potential, Patil said the Council would address specific problems that hinder the smooth flow of commerce. A Memorandum of Understanding (MoU) for setting up the India Syria Business Council was signed by VRS Natrajan from the Indian side and Syria’s Ali Khwanda, co-chairmen of the Council, in the presence of President Patil. "We should renew our focus on bilateral economic and commercial ties, which at current levels is far below potential", the President said, recalling that the Bilateral Joint Commission that met in June this year, identified ways of strengthening ties, including doubling bilateral trade levels in the next 2 to 3 years. "We should now take it forward", she said. Addressing the gathering, Syrian Minister for Economy and Trade Lamia Mari Assi said investment was welcome by way of joint ventures or foreign direct investment or even public-private partnerships in the Information Technology, Research and Development, pharmaceutical and energy sector. She called for "big involvement" by Indian companies in the infrastructure projects in Syria, mentioning it requires $115 billion investment in the current five-year plan. Maintaining that Syria was taking steps to integrate in the world economy by carrying out reforms, she added that it already had free trade agreements with Iran and Turkey while those with Russia, Belarus and Kazakhistan and a number of other countries were in the pipeline. Natrajan said India has become a "one stop shop" for all kinds of industrial and techological knowhow as also investment though he urged the Syrian government to step in and cut delays in granting approvals to projects. Khawanda urged Indian businessmen to avail themselves of the many opportunities that abound in developing Syria. Earlier, the Indian President met Syrian Prime Minister Naji Al Otri who expressed satisfaction on the business engagements between the two countries while inviting India to participate in “Expanding and promising” sectors of power and hydrocarbons. The Union Minister of State, Power, Bharat Sinh Solanki, conveyed India’s interest in the power sector in Syria while adding that PSUs like NTPC and PowerGrid Corporation could be potential participants. PM Otri also sought Indian participation in phosphates and manufacturing of phosphate-based fertilisers. President Patil and the Prime Minister agreed that there should be follow-up ministerial contacts to keep the momentum of enhanced engagement going. Patil visited the Syrian Parliament and met Speaker Mahmoud Al Abrash and other senior officials. They discussed cooperation between the two countries. The latter informed her that a Syrian-India friendship group had been set up in the Syrian Parliament. Earlier, the Indian president visited Aaman, an NGO headed by Syrian Fiorst Lady Asma Al Assad, working for disabled children and sonated two million Syrian Pounds (Rs 20 lakh) for its activities. She attended a reception in her honour by the Indian community in Syria and gave one million Syrian pounds (Rs 10 lakh) to the Missionaries of Charity to meet the cost of an old-age home in Aleppo.
	Rolls Royce plans dealership in region Ruchika M Khanna Tribune News Service Chandigarh, November 28 The Rolls Royce Motor Company has ambitious plans to increase sales in India. The company, which imports its ultra-luxury cars from Goodwood in the UK, is now looking at the super rich club in Punjab and Haryana to sell its luxury cars. Once considered the vehicle for royalty, cars from the Rolls Royce, ranging from Rs 2.50 crore to Rs 4.20 crore, will now be available to the rich and famous here. The company has a dealership in New Delhi, and is exploring the possibility of opening another dealership in Punjab (Chandigarh or Ludhiana). Talking to TNS, Hal Serudin, corporate communication manager, Asia Pacific, Rolls Royce Motor Cars, said that they the company was showcasing its cars in the two cities, after the company got many queries from the super-rich. Depending on the orders that they receive, the company will set up a dealership or showroom in either Chandigarh or Ludhiana. “This year, we expect 400 per cent jump in sales. As against 15 cars sold in India last year, we expect to sell 70 cars across the country by December,” he said. The company had re-launched its operations in India in 2005, after a 50-year break. Since then over 100 Rolls Royce cars are on the roads. “For us, India is amongst the top three markets in the Asia-Pacific region. We are definitely looking at increasing our sales and operations here. Various wealth reports by reputed international agencies has shown a growing number of super-rich here, and this will definitely mean more business for us,” he said. No wonder that sale of these super-luxury models, priced between Rs 2.5 crore and Rs 4.2 crore increased 9 times to 50 cars till September. This is, half the number of Rolls-Royce cars sold in India, since 2005 when the company opened its first dealership. The surge is partly due to the just-launched Ghost, the ‘less pricey' Rolls at Rs 2.5 crore. The company sells one Phantom (priced Rs 3.5 crore upwards) to every four Ghost cars.
	Punjab pavilion bags 2nd prize at trade fair Tribune News Service Chandigarh, November 28 The Punjab pavilion has been adjudged second for excellence in display at the ongoing India International Trade Fair in Delhi. Disclosing this here yesterday, an official spokesman said Secretary, Industries and Commerce SS Channy received the award on behalf of the state from Delhi Chief Minister Sheila Dixit at an award presentation ceremony held at the Pragati Maidan on the occasion of closing ceremony of the trade fair. The efforts made by the state in projecting itself as a provider of clean and energy efficient technology products and services was largely responsible for the prize. Exhibits included the Patiala Green Cab by a Patiala-based NGO besides models showing power being generated in rural areas and water being drawn from a well using a solar-powered motor.
	Tax Advice Employee stock options taxable by SC Vasudeva Q I own shares of company listed on the National Stock Exchange. I have been granted certain employees stock options from my employer. Will the amount of such stock option be taxable? — Bishambar A Section 72(2) of the Income-tax Act, 1961 (The Act) provides that value of any specified security in the form of equity shares allotted by an employer is taxable as a perquisite in the hands of the employee, the value of which is to be computed in accordance with the prescribed guidelines. The perquisite value of such stock options will be taxable in your hands in accordance with such prescribed guide lines. Minimum holding of LIC policy Q. I am a retired senior citizen and file I-T return regularly. My total pension with post office interest comes to Rs 2.3 lakh a year. I had taken life insurance policy in 2008-09 fiscal, and have paid premium of Rs 50,000, I will pay this yearly premium only for 3 years, after that I will withdraw my 3-year premium along with interest as the lock-in period is for 3 years. My query is as under: a) How much rebate I will get on my above premium in financial year 2008-09? b) Whether interest earned on 3 years premium will be taxable at the time of receipt in financial year 2011-12? — HS Sharma A. To take the benefit or deduction under section 80C of the Income-tax Act, 1961, (the Act), the minimum period of holding of the policy has to be two years. This two-year holding period basically implies that a person will at least have to pay premium for first three years. If the premium payment is annual, then annual payments for three years have to made i.e. first premium at the beginning of the year and two more premii. On the basis of facts given in the query you would be entitled to a deduction of an amount not exceeding 20% of the capital sum assured. In calculating capital sum assured no account shall be taken of (a) value of any premium agreed to be returned or (b) benefit by way of bonus or otherwise over and above the sum assured which is to be or may be received under the policy. The taxability of the amount received on maturity would depend upon the premium paid with reference to the capital sum assured. The particulars with regard to capital sum assured not being given in the query, I am unable to give reply to the second limb of your query. Tax-saving scheme Q. One of my close relations is going to retire from the government service by the end of this year. He is likely is receive retirement benefits, i.e. GPF, gratuity, Leave encashment & Insurance amount to the tune of about Rs 80 lakh. Just to save income tax, can he gift Rs 20 lakh to his wife through payee’s account cheque. With this amount she can open PPF account in her name. She can take her interest income up to Rs 2.95 lakh. If she deposits the entire amount of Rs.20 lakh in FD for for years she is likely to earn interest of Rs 8 lakh. Can she purchase National Savings Certificates with Rs 1 lakh. I would like to know which of the tax saving scheme, you think, is better proposition. 2. Her brother is an NRI. He sends every year festival gifts to her sister. Is there any tax liability on this amount? 3. Will you please suggest any other tax saving scheme for investment? — GS Sondhi A. The queries raised by you are being replied hereunder: 1. He can gift a sum of Rs 20 lakh to his wife without attracting any tax liability. The amount so gifted will not be allowed as a deduction, wile computing his tax liability. Further, income arising on such gifted amount would be clubbed with his income. 2. In case the amount is deposited by her in a fixed deposit account for 5 years, the interest on such deposits would be clubbed with the income of your friend. However, income earned on such interest i.e. interest-on-interest will be taxable in the hands of the wife of your friend. 3. The interest accruing on National Saving Certificates would also be clubbed with the income of your friend. 4. The best method would be to invest the gifted amount in an asset, the income from which is tax-free. 5. There is no tax liability in respect of the money received by your friend’s wife from her NRI brother. Section 80U Q I am physically handicap person with 50% disability. I will appreciate highly knowing the amount of deduction I am eligible u/s 80U. — Dharam Paul Chaudhary A. A resident individual who is certified by the medical authority to be a person of the disability is entitled to claim a deduction of Rs. 50,000 from his total income. The person with disability means a person suffering not less than 40% of any disability as certified by a medical authority. The term disability means blindness, low vision, leprosy-cured, hearing impairment, locomotor disability, mental retardation and mental illness, etc. Is gratuity taxable? Q. Clarification regarding payment of I-T on death-cum-retirement Gratuity. There is contradiction between me and my employer (Punjab State Electricity Board now Powercom) regarding deduction of Income Tax on receipt of Death-Cum-Retirement-gratuity. I retired from the Punjab State Electricity Board service on 30-11-2007. According to revised scales, my gratuity is calculated to be Rs 5,74,261 (Rs 3,50,000/- before pre-revised scale + Rs 22,4261/- after revision of pay scales). Please clarify that is it this gratuity exempted from income tax or will there be any tax deduction from it. — Virinder Gupta A. The amount of gratuity received due to the revision of pay scales would not be exempt from tax. You would therefore be liable to pay tax thereon. The amount received would be added to your taxable income in the year of accrual of such income. However, you can claim relief under section 89(3) of Income-tax Act, 1961 (The Act) in respect of the additional amount of gratuity.
	Market Update Market may slip further by Lalit Batra The latest bank-loan bribery scandal has hit investor sentiment hard. On Wednesday, the CBI unearthed a bank loans bribery scandal, arresting 5 senior officials of PSU banks and CEO of LIC housing finance. The markets went into a tailspin on the news. The BSE sensex lost 449 points during the week to close at 19,136. Nifty lost 138 points to close the week at 5,751. Poor global market and net sale figures too exerted downward pressure on domestic bourses. In the coming fortnight, besides domestic factors, Geopolitical tension arising from hostility between the Koreans, persistent concerns about euro-zone debt problems and Chinese monetary tightening measures may weigh on the markets. Investors may keep away from taking fresh positions in this uncertain scenario and wait for a clearer picture to emerge. However, it is strongly advised that investors may look at some of good quality PSU IPOs that are like it to hit the market. Besides sound balance sheet, some of these IPOs are leaving money on the table for the investors. MOIL has come out with a Initial Public Offering (IPO). Incorporated during the British Raj in 1986, MOIL - a Mini Ratna - is the largest producer of manganese ore in India. Over 90 per cent of the world’s production of manganese is utilised in the desulphurisation and strengthening of steel. In 2008, OIL accounted for 50 per cent of the total volume of manganese ore produced in the country. MOIL is also one of the lowest cost producers of manganese ore in the world. The company caters to the domestic ferro-alloy market. The top ten customers of the company accounted for about 52 per cent of its manganese ore sales. MOIL also operates two wind farms with an aggregate capacity of 20 MW located at Nagda hills and Ratedi hills near Dewas in Madhya Pradesh. According to the Indian steel ministry, India is expected to become the second largest producer of crude steel in the world by 2015-16 from the fifth-largest producer it was in 2009. This augurs well for manganese ore demand. MOIL being the largest producer of manganese ore India is well positioned to tap this increasing demand, hence the company intends to increase its production from 1.09 million tonne per annum (mtpa) in 2010 to 1.5 mtpa by 2015-16. MOIL has had a strong financial performance with no debt and a huge pile-up of cash. The company has cash in books of Rs 1762.9 crore (This translates into Rs 104 per share) in end September, 2010 and has been generating good free cash flows. Investors may subscribe to the IPO of MOIL at cut off. The recommendation is based on the fact that the key positives of the company like, strong balance sheet, a stable dividend policy (the company pays about 20 per cent of its earnings) the company plans of expansion of its existing capacity at mines far out weigh the negatives such as proposal of 26 per cent mining tax and company’s dependence on single industry, steel.