Ludhiana, June 18
Candle makers in Punjab are struggling for sustenance as the cost of raw material -wax- has more than doubled over the last year. Kerogated paper used for packing has also turned more expensive. The cost of wax has now doubled to Rs 95 per kg, while paper cost has risen 8-10 per cent.

To add to their woes, wax dealers are allegedly indulging in black marketing. “Rising petroleum prices are a death knell for us. Sales have dipped 50 per cent due to the rise in the prices of wax. Paper and cardboard used for packaging are also priced way above our sustenance,” said Ram Murti Mahendru, president, Punjab Candle Manufacturers Association.

A candle manufacturer Ajit Singh from Jalandhar added that it was only during Diwali that the demand for candles was on an upswing. During this time, dealers indulge in black marketing. “Rising prices of wax and cardboard have resulted in an increase in price of the end-product, leading to dip in demand,” he said.

“There are only two authorised wax dealers for Punjab, Himachal Pradesh, Haryana and J&K. Due to monopoly, they harass candle manufacturers, who are dependent on them for their supply of wax. They often indulge in black marketing and sell wax at higher price when the demand is high,” said Chitwan Loomba, a wax dealer from Ludhiana.

New Delhi, June 18
Appreciating India’s ‘excellent’ non-proliferation record, Germany yesterday announced that it had eased its export control laws to allow India access to dual use items.

"India has been removed from the list of countries subject to national export control restrictions. Now, India will be treated by us just like any other EU country…this will add a new cornerstone to our strong strategic partnership," German Ambassador Thomas Matussek told reporters here.

He said a week before German Chancellor Angela Merkel’s visit to India on May 30-31, the export control legislation was modified. Berlin was now ready to support India in joining international export control regimes like the Nuclrear Suppliers’ Group (NSG). However, Matussek was of the view that India must also do its part in this process. While sticking to its good non-proliferation record, India should consider signing the CTBT.

“We appreciate India’s policy in the field of non-proliferation and acknowledge its good non-proliferation track record. We have an interest in bringing India closer to non-proliferation regime,’’ the German envoy said.

New Delhi, June 18
The government yesterday extended the tax incentive scheme for exporters, DEPB, till September 30, a step which will benefit the exports sector.

"The Duty Entitlement Pass Book (DEPB) scheme gets an extension of three months from June 30, 2011 to September 30, 2011," the Directorate General of Foreign Trade said.

Under the 14-year-old DEPB scheme, the government spends annually about Rs 8,500 crore for re-reimbursing exporters on the taxes paid on import equivalent content of export products.

As the scheme was set to close on June 30, exporters were agitated and lobbying hard with both Finance and Commerce ministries for its extension.

A lion's share of about 60 per cent of the funds under the DEPB goes to exporters in the chemical and engineering sectors.

Both the Ministry of Finance and Ministry of Commerce and Industry have said that the scheme would not get any further extension after September.

The government plans to replace the DEPB by an alternate Duty Drawback scheme. Commerce Secretary Rahul Khullar had said DEPB was being extended so that there could be smooth transit to Duty Drawback scheme. — PTI

An Indian low-cost carrier has come of age. It thinks big, talks big and does big. It has fulfilled all mandatory parameters and complied with other conditions to go international. It has secured government’s approval and by September this year, it will operate flights to Singapore, Dubai and Bangkok.

"We are starting on short-haul routes initially before plunging in the long-haul routes", said officials, who are in upbeat mood after undertaking market survey on three highly lucrative routes.

The return fares on these three routes will be reasonable and, in view of its competitive doings, the fares are bound to reduce regardless of demand and supply scenario.

Analysts believe that airfare war will unleash as this Indian carrier starts operating flights on these routes.

The entry of this airline on these routes will further affect the market share of Air India (AI) which, despite being receiving equity from the government from time to time, continues to be on oxygen. The analysts are of the firm view that the politicians, involved with it in the past, has brought it to the brink of collapse whatever may be government's infusion.

The carrier, going international, has decided to set aside nine wide-bodied aircraft for operations. "We are certain of cutting even immediately on launching", said official adding: "We will start securing profits as new year begins". After launching flights on these routes, the airline will expand its operations to Kathmandu and Muscat. The analysts feel that the airline officials are choosy, but their route selection is based on acme of good sense.

While government is said to have agreed to release equity to the ailing AI to help it disburse salaries to staff, the Group of Ministers (GoM) will initiate rejig plan this month. This provides some respite to the national carrier but prospects of turning around do not seem bright. Sadly, the Minister of State, Vayalar Ravi, has been given a 'failed merged airline' and, no matter how experienced he is in 'trade unionism', he cannot bring 'happy days' to the national carrier.

State-run oil corporations have been directed to supply fuel to the national carrier for three months so that it continues to operate its flights without any hindrance. It brings cheer to the airline bosses but they are aware that it is a 'temporary relief'. Maybe, some new incumbents are brought in to resort discipline in this division which is as slippery as the sections of cockpit crew and cabin crew. The entire structure of the national carrier is shaking and the analysts are certain that sooner or later the government will have to return to the original set-up of two airlines - Indian Airlines for domestic operations and Air India for international routes, as was the case before the merger.

Q. I am an NRI (Overseas Citizen of India) who had the following income in India in AY 11-12 (FY 10-11):

1. Interest income in NRO and NRE bank accounts- TDS deducted.

2. Dividend income in NRO account: No tax liability.

3. Inherited family house sold in August 2010 where my share was around Rs 9 lakh. The house was inherited in 2005 and the total sale consideration was Rs 27 lakh. The proceeds have been reinvested in another residential house.

Am I obligated to file a return of income in India?

— Singh

A. The law is that if your income in India (before claiming any deductions) is more than Rs 160,000 (for FY 10-11), then you need to file your tax return. Here by income, we mean taxable income (excludes tax-free incomes like NRE interest, long-term capital gains on equity etc.)

Your income especially on account of the capital gains could be over the above figure. Though you have invested in another property thereby perhaps making the tax liability nil, nonetheless, the gross income (before deduction) if above Rs 160,000, tax return filing becomes mandatory.