The Tribune, Chandigarh, India

	Reliance cancels US lobbying registration Washington, D.C., January 20 Amid a huge uproar over lobbying by American firms to gain access to Indian market, India's leading corporate house Reliance Industries has terminated its lobbying activities among the US lawmakers after having spent nearly US $2 million (over Rs 10 crore) to its lobbyist here in the past four years. Mukesh Ambani-led Reliance Industries Ltd (RIL) began lobbying among the US lawmakers through leading lobbyist firm, Barbour Griffith & Rogers LLC (BGR), in January 2009 for its business activities and other causes. However, the company had put on hold its lobbying activities here for the past five quarters and it has now terminated its lobby registration itself in the United States. The company, which has been expanding its presence in global markets, including the United States, in the recent years and has interests in businesses ranging from energy, polyester and retail to telecom back in India, has paid a total amount of $1.88 million (over Rs 10 crore) to its US lobbyist since January 2009. According to its latest lobbying disclosure report dated January 18, filed with the US Senate through BGR, it terminated its lobbying registration with the US authorities on January 11. The disclosure further mentioned that there was "no lobbying issue activity" during the last quarter, which ended on December 31, 2012. This was the fifth consecutive quarter when BGR reported 'no lobbying activity' for its client RIL among the US lawmakers. Lobbying in the government departments and other institutions is a legal activity in the US, but all the registered lobby firms are required to make a disclosure every quarter about the payments received by them, as also the details of their lobbying activities. BGR also happens to be the lobbyist for the Indian government, as also the software industry body Nasscom, another major Indian entity doing lobbying in the US. Nasscom is currently lobbying in the US through one more lobbyist, the Lande Group. The Indian government and Nasscom continued their lobbying activities in the US unabated during the last quarter and paid $180,000 (about Rs 1 crore) and $100,000, respectively, to their lobbyists between October and December 2012. Last month, disclosures about huge lobbying spending incurred by US-based global retail giant Wal-Mart Stores in the US on various issues including its entry into the Indian market generated a heated political debate in India. A number of US companies have been lobbying in the recent past with their own lawmakers to seek their help in pushing further their business interests in India, which is emerging as a major market for various businesses for global companies. Similarly, some Indian companies have also been lobbying for their business interests among the US lawmakers for past few years while Reliance Industries has been one of the major Indian entities lobbying there. In the recent years, RIL has expanded its presence in the US and other foreign countries, while the US government's policies are as such said to have significant implications for most of the large corporations across the world. On Reliance Industries’ behalf, BGR has lobbied with the US Senate, House of Representatives, Department of State and the US Government Accountability Office, among others. BGR has lobbied for RIL in the areas of 'domestic and foreign trade' and has provided "strategic counsel on issues related to trade", as per its lobbying disclosure reports. In the first eight quarters of its lobbying activities (from 2009 to 2010) in the US, RIL had paid $190,000 every quarter. — PTI
	Ethical investors sharpen focus on tax avoidance London, January 20 Growing anger at aggressive tax avoidance by big business has prompted ethical investors to consider shunning shares in companies that don't pay their fair share of tax. As governments struggle to balance massive budget deficits caused by the financial crisis, reports that big companies like Apple, Google and Vodafone pay minimal taxes in some big markets have sparked public protests in Europe and the United States. All the companies criticised say they follow the law, and some argue they owe it to investors to pay as little tax as legally possible. But politicians on both sides of the Atlantic have argued such avoidance is immoral and hauled executives into public hearings to explain their tax affairs. Tax authorities in France, Germany and Italy have even launched raids on some high-profile companies' offices. Many investors with a 'socially responsible' mandate say they have long taken account of companies' tax practices when deciding where to invest, but few if any funds have made a point of screening out companies over tax issues, according to more than a dozen industry professionals contacted by Reuters. That may be about to change. FTSE Group, which compiles the share indexes that fund managers in the UK, US and Asia use to build investment portfolios, said it was looking into excluding companies with what it called overly aggressive tax reduction policies from its ethical index group, FTSE4Good. "Tax is one of the areas which the independent FTSE4Good Policy Committee are considering, among other criteria priorities," a spokeswoman said. FTSE did not say when it would reach its decision. The FTSE4Good indexes are one of the benchmarks most commonly used by ethical funds to build their portfolios. European funds invested in socially responsible investments totalled 7 trillion euros at the end of 2011, according to European Sustainable Investment Forum, an ethical investment industry association. 11% of the $33.3 trillion in assets under professional management in the US is invested in funds that screen for environmental and ethical factors, according to a 2012 report from the US Forum for Sustainable and Responsible Investment. — Reuters
	FIIs invest over Rs 13k cr Mumbai, January 20 FII investment in Indian equities so far this month has touched a staggering over Rs 13,000 crore (about $2.5 billion) on the back of postponement of the controversial GAAR (General Anti Avoidance Rules) by two years and partial deregulation in diesel prices. From January 1-18, foreign institutional investors were gross buyers of shares worth Rs 42,926 crore, while they sold equities amounting to Rs 29,525 cr translating into a net inflow of Rs 13,401 cr ($2.5 bn), according to SEBI data. In 2012, FIIs had made net investment of Rs 1.28 lakh crore ($24.4 billion) in Indian equities, making it the second best year for the market after record inflow of Rs 1.33 lakh crore ($29 billion) in 2010. Market analysts attributed huge inflows into Indian equities to steps taken by the government including the postponement of the implementation of the GAAR by two years to April 1, 2016 and partial decontrol in diesel prices. Another major reason was passage of 'fiscal cliff' bill by the US Senate. — PTI
	Moody’s retains rating outlook New Delhi, January 20 Retaining India's credit rating at the existing level, global agency Moody's has cautioned that a high fiscal deficit could pull down the growth in the coming years. "Large government deficits and debt ratios as well as supply constraints in the form of infrastructure, policy and administrative inefficiencies constrain the sovereign credit profile," Moody's said in India rating report. On the positive side, the global rating agency reaffirmed sovereign credit rating of India at Baa3, which indicates investment grade, with a stable outlook. Moody's expect Indian economy to grow by 5.4% in the current fiscal and 6% in FY2013-14. — PTI
	BIZ TALK Carrier Midea embarks on major expansion in India Carrier Midea, the latest multinational entrant in the consumer durables industry has set up a manufacturing facility in Haryana. In an interview to Sanjeev Sharma, Krishan Sachdev, managing director, Carrier Midea India talks about the manufacturing and investment plans, business strategy and brand positioning for the company. Q: What are the contours of the joint venture between Carrier and Midea? Carrier Midea India Pvt Ltd was formed in February 2012 through a 60:40 joint venture between G.D. Midea Holding Co. and Carrier Corporation. GD Midea Holding Co is a US $22 billion home appliances and airconditioning conglomerate with presence in more than 190 countries. Carrier is the world leader in high technology heating, airconditioning and refrigeration (HVACR) solutions with operations in more than 170 countries. We started our operations in February last year with Carrier brand residential air-conditioners. We set up a state-of the-art AC manufacturing facility in Bawal, Haryana (about 60 km from Gurgaon), which started operations in November 2012. The plant currently makes two airconditioners brands – Carrier residential and Midea residential and light commercial ACs. Q: What are the entry plans for Midea brand in India? We have earmarked a joint investment of Rs 500 crore over a period of five to six years. So far we have invested Rs 150 crore in the first year itself. We plan to establish Midea as a complete home appliances brand in India. We are starting with a wide range of airconditioners, microwaves and water dispensers and plan to gradually bring in Midea’s entire product range in India. We have already started production of Midea ACs in our Bawal facility. We would like to make India a manufacturing hub and are evaluating to localize to the maximum. Q: With so many players already present in this segment, how do you see the competitive intensity and what niche will the brand take? Midea is a mid-premium segment brand. It has a youthful, energetic and technology savvy persona. Carrier Midea India has a strong pan-India service network and will ensure customer delight through Midea aftersales service, and this will be a significant differentiator in the market. Also the product range is specifically designed for India. Q: What will be the marketing and distribution strategy? In terms of distribution, our products will be available in the top 30 cities of the country with presence in about 1,000 outlets comprising of a network of retailers, sales and service dealers. Additionally we have over 750 service providers across the country with more than 5,000 trained technicians. The communication and marketing plans are to gain greater visibility through advertising and and experiential activities. We’ll look at increasing in-store visibility ensuring maximum coverage of retail with brand presence. Q: What are the company's revenue targets? We are targeting to achieve Rs. 1000 crore revenue in a full year of commercial operations this year with both the Carrier and Midea brands. Going forward and depending on the response, we will gradually introduce other home appliances from Midea’s global portfolio. Q: How do you see the industry growth given slowdown concerns? Barring the last two years, the airconditioning industry had witnessed an average of 15% growth for over five years prior to 2010. In India the penetration level for ACs is only 3-4% which is very low as compared to China 45%, Singapore 70%. So there is huge scope in India and we expect an average growth of 15% over the next five years.
	Tax Advice Income tax liability on gratuity By S.C. Vasudeva Q: How will the tax liability of an individual, who retired in December 2012 and was paid a gratuity of Rs 12 lakh, be calculated, as gratuity over Rs 10 lakh is taxable? — Dinesh Kumar A: Gratuity exceeding Rs 10 lakh will form part of salary income and be taxed accordingly. However, the Income Tax Act provides in a case where an assessee receives funds in the nature of salary, being paid in arrears or in advance or is in receipt of, in any one financial year, salary of over12 months or a payment which is construed as a profit in lieu of salary and due to which his total income is assessed at the rate higher than that at which it would have otherwise have been assessed, the assessing officer shall, on a application made to him in this behalf provide such relief as may be prescribed. The assessee can therefore seek a relief under Sec. 89 of the IT Act for the amount of Rs 2 lakh by furnishing particulars specified in Form 10E to the person responsible for making the payment in respect of which relief under section 89(1) of the Act is sought. Q: My son, who emigrated to Canada in 2003, had opened a bank savings account in India in 1999. Can he continue with this account and , if not, what formalities have to be completed? Also, what are the regulations governing this? — Rohit A: It would be advisable for your son to inform his bank in India about his emigration to Canada. The regulations on a NRO (Non-Resident Ordinary Rupee) Account, which are specified in the RBI’s circular on July 2, 2012, say when a resident leaves India with an intention to reside abroad for an uncertain period, his existing bank account is required to be designated as a NRO account.
	personal finance Financial planning tips for the year ahead No resolution is more profitable than to be debt-free and begin planning a smarter financial strategy. It could be the year in which everything goes right but, to help things go your way, it’s wise to take some steps in advance Arun Thukral FOR many people the New Year signifies a fresh start. Traditionally, January is the traditional month to make resolutions People take a fresh look at their income and expenses so that they can plan on how they will move toward their goals. No resolution is more profitable than the decision to be debt-free and begin planning a smarter financial strategy. It could be the year in which everything goes right, but to help things go in the preferred direction it is wise to take some steps in advance. The following are a few tips for financial planning for the new year. Review the past year Before you start thinking about what you want to do in the coming year, it helps to get an idea of how your plans for the last year worked out. Some of them may not have had much success, while others may have surpassed your expectations. Reviewing your last year will give you some insight into what worked but also highlights those areas that could do with some extra effort. If you started the past year with written goals it is best to document which of them have been achieved and which are still outstanding. Make a plan Everyone has goals, whether to buy a home, take a vacation, or be able to retire comfortably. As the year begins, take a fresh look at your income and expenses so that you can plan how you will move toward your goals. After paying fixed expenses, your remaining income can pay for variable and optional expenses, including groceries, saving, entertainment and shopping. Prioritize the items that are important to you. Then keep track of your spending every day, week and month throughout the year. In case you are using credit cards for most of your purchases then make sure you pay off your credit card bills on time. This will help you maintain a healthy credit record. A healthy credit record would help you access loan/credit (if you wish to borrow in the future faster) and on better terms. Stick to a budget Set an annual budget for you. It is advisable to plan your spending and saving goals in order to know where your money is going. This will help you plan your income strategically. Discuss goals with your family Include your spouse, your children if they’re old enough, or other loved ones who might be affected by your goals. They can help you clarify the goals, motivate you to make changes, and aid in their achievement. Plan holiday spending in advance To avoid getting into unnecessary debt in the year ahead it is advisable to carefully plan your holiday spending. Try to keep a detail on how much you want to spend on each category, like food, entertainment and luxury items. In order to rebuild your credit record i.e. a good credit score you can make use of your credit cards for your purchases and keep paying off your bills on time. Timely payment of bills will reflect a good credit record which would eventually result in an increased credit score. Manage your credit cards wisely Credit card companies come out with attractive offers during the festive season. Double check all such offers for fine print, if any. Be sure to use credit cards wisely and ensure you pay your bills on time. To eliminate credit card debt continue paying the same monthly amount toward your debt until all debts have been paid off. This would help you improve your credit score in due course. Manage your borrowings prudently Have a look at your credit report in case you plan to apply for any kind of loan - auto / home / personal. EMIs are great - they let you purchase things in installments so that you won’t feel the burden of a big purchase. In case you have already taken a loan make sure that paying off your EMI is the first priority when every new month begins this year. Set aside funds for recurring expenses To make sure you have the money to cover your recurring expenses for the coming year it helps to calculate how much you would need to have in advance. Insurance payments, membership renewals and other expense categories should be planned for because they crop up year after year at the same time. Save information for tax returns Finally, although you may not need to file tax returns until early in the New Year it helps to make sure everything is in order. This way when tax time rolls around you can be sure to be ready. Educate yourself financially The more you understand about finances-from budgeting to investments to insurance to borrowing-the more confident and motivated you’ll be to take the right financial steps this year. Wishing you all the best for the year ahead! The author is managing director of CIBIL, India’s first credit information bureau. The views expressed in this article are his own
	Nomination or will: What do you need? Pankaaj Maalde MOST of us think that by nominating someone from the family in movable or immovable property suffices for transferring the asset in the name of the nominee. However, in reality this is not true. One must know the legal standing of the nomination before signing a nomination form. Nomination is the facility available to individual to transfer the asset in the name of the nominee in case of his or her demise. The liability of insurance and mutual fund companies, banks, society at large and others comes to an end if the asset is transferred as per the nomination registered with them. It does not mean the nominee is the owner of that asset but he/she is its trustee and has to share the asset with other legal heirs if a will is not executed. The other legal heirs, who have not received the share in asset, can also demand the share in the assets and can also seek legal course and recover their share from the nominee. In the absence of a will the asset will be transferred to legal heirs as per succession act in the case of Hindus. In the case of others respective personal laws also come into picture which one should be aware. It is equally true that most of us even fail to register the nomination wherever it is available, say in a bank, demat, mutual fund or Provident Fund account or other investment, or even in societies and institutions where we own immovable property. In the absence of nominee you have to go to court and obtain succession certificate to claim the ownership of the asset even will is made. The first and most important step is to nominate someone to whom you intend to transfer that asset and than prepare a will and allocate the asset as you desire. A recent high court judgment gave the absolute right to a nominee in the case of shares, which is the only exception otherwise in all other cases; nominee is only the trustee of the asset and not the owner. In the absence of proper nomination and valid will, your heirs will be fighting for your assets in the long legal battle, which may be very painful. So, it is very much important to execute will at earliest so that your near and dear one gets share of your assets as you desire and also you can keep away unwanted persons out of your assets. Guidelines to prepare a will A will can be defined as “a wish of an individual to legally allocate or transfer all his/her assets both movable and immovable to his/her legal heirs or to the loved ones after his/her demise.” A will must be written either handwritten or typed. No stamp paper is necessary. A will should be simple, precise and clear. A person making a Will is known as a “testator”. It is always better to take the advice of a trusted advocate. There should be an executor of the will who would be entrusted with the responsibility of ensuring that the assets are distributed according to the provisions of the will. The testator in the presence of at least two witnesses, who have also to attest the same, should sign a will. The witness should not be the beneficiary in the will. It would be better if one of the witnesses is a medical practitioner, so it cannot be easily challenged on the ground that the person was not of sound mind when the will was made. A will must always be dated. Each page of the will should be serially numbered and signed by the testator and the witnesses. The will may be kept in a safe place like a bank vault and duplicate copies may be given to the executor and the beneficiaries. For making changes only in certain clauses of the will, a codicil (supplement) is to be prepared. If there are too many changes in the will, it is better to prepare an entirely new will. It is not compulsory for one to register a will with the registering authority, but if registered than it becomes more powerful and one cannot challenge it easily. A person’s will becomes operative only after his or her demise. The author is head of financial planning at Apnapaisa.com. The views expressed in this article are his own