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Govt gets power to arrest service
BIZ TALK
Air India’s plan to reduce workforce stuck with FinMin
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I-T Dept slaps Rs 582-cr tax demand notice on Infosys
Just Dial’s Rs 950-cr IPO opens today
Investor
Guidance
Take big leap with SIP
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Govt gets power to arrest service tax defaulters
New Delhi, May 19 Earlier, the officials did not have power to arrest a person for service tax evasion. Besides, director and manager of a company who fail to pay collected service tax can now be arrested with imprisonment for up to seven years in addition to the penalty which may extend to Rs 1 lakh. This is for the first time that service tax rules have been amended to attract the Criminal Procedure Code (CrPC) in line with customs and central excise. The Section 91, which was incorporated in this year's Finance Bill, provides power to arrest a person for non-payment of collected service tax, by an officer not below the rank of Superintendent of Central Excise. The Bill, which was passed on May 10, also imposes a penalty on a person or company liable to pay service tax and fails to take registration number from the government. "Failure to pay any amount collected as service tax to the credit of the central government beyond a period of six months from the date on which such payment becomes due then any director, manager, secretary or other officer of such company, who at the time of such contravention was in charge of, and was responsible to, the company for the conduct of business of such company and was knowingly concerned with such contravention, shall be liable to a penalty which may extend to Rs 1 lakh," it says. In the case of the offence, where the amount exceeds Rs 50 lakh, a defaulter will get imprisonment for a term which may extend to seven years. The limit of evasion, where arrest provision can be invoked, has been extended to Rs 50 lakh from Rs 30 lakh in terms of excise and customs duty.
— PTI |
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Woodland to invest over Rs 500 crore in 3
years
Founded in Quebec, Canada, Woodland is the world's leading brand in outdoor and adventure category. Having entered the Indian market in 1992, it now offers a wide range of footwear, apparels and accessories for men, women and kids through its network of over 400 exclusive stores and 4,000 plus multi-brand outlets across the country. Harkirat Singh, managing director, Woodland Shoes, talks to Girja Shankar Kaura about the future strategy of the company. Q. How has the Woodland brand been performing in the competitive Indian market? A. We are proud to make sturdy, outdoor products that have gained us wide acceptance and support by the masses across the globe. With our unwavering commitment to quality and introduction of latest designs and technologies, we stand firm amid competition. We attain customer satisfaction by introducing new technologies and presenting cutting-edge innovations in our products. Q. How have you developed your distribution strategy to aid your growth strategy? A. The Indian retail sector has been growing but yes, one needs to be cautious to ensure steady growth. We have been growing consistently and are proud to have a growth rate of 25%+ annually. We have been selective in our expansion plans and that has reaped results for us. We started with the metros but lately, have also been expanding in the smaller towns as market is developing there in parallel with growing aspirations. Our belief is that growth should be consistent and our product offering should be good. We are particular about product quality and keep working on improvising the same. Retail expansion will continue to be a core focus besides diversifying into specialised product lines. Q. Are there any launches planned for the year? A. Our product development and design team is spread across various countries and the idea is to get the best of the designs and technologies to be incorporated in our products. We are known for functional products that ensure the best of support in outdoors. We are in the process of developing more products for the summers which include: Super charged cotton-based apparels - skin-friendly cotton with highly comforting properties while going outdoors
Q. What is your business target going forward? A. In the next three years, Woodland is planning to invest more than Rs 500 crore for expansion. With our market set to grow at a quick pace, the firm would like to double its manufacturing capacity in the next three years. Our current manufacturing capacity in footwear is 4.5 to 5 million pieces through 15 units, while on apparel it is around 4 million through five units. Our overseas manufacturing facility in Bangladesh is still at a nascent stage. Q. Have you been looking to find your feet in China? A. Woodland products are available across the globe though various channels as per the market requirement. We are also going to China as it is a huge market in terms of consumption. We have recently opened an office in Hong Kong and will be reaching out to China through this office. We are confident that we can replicate our retail success in China as well. Q. How big do you think the shoe market could be by 2020? A. India produces nearly 300 crore pairs of footwear annually, exports over 10 per cent and accounts for about 15 per cent of annual global footwear production, which is over 2,000 crore. Indian footwear market is dominated by men’s segment, which accounts for about 55 per cent followed by women and kids segment, which account for about 30 and 15 per cent, respectively. Q. At present, which models do you think are building Woodland’s volumes in India? A. Being a specialised outdoor-wear brand, all our product offerings have been widely accepted by the masses and their demand is rapidly growing. Our apparel to footwear ratio is almost 60:40 and we expect the same to equate very shortly.
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Air India’s plan to reduce workforce stuck with FinMin
Mumbai, May 19 The VRS scheme is "stuck in the Finance Ministry over the payment of Rs 1,200 crore for it. The ministry has pointed out that around 7,000 employees will retire from service over the next three years and another 12,000 will be transferred to the ground handling and engineering subsidiaries," Air India sources said. This means only about 8,000 employees will be left with the carrier over the next five years, as it has not been hiring for the past couple of years. The Finance Ministry doesn’t see any rationale in coming out with such an offer at this stage, the sources said, adding that Air India requires the nod of this ministry and the Department of Expenditure before it comes out with the offer. The airline had last September approved the VRS package for all its permanent employees who have served for 15 years or were at least 40 years of age. The proposed scheme targeted a total of approximately 5,000 employees. However, licensed category employees, like pilots, aircraft engineers, simulator maintenance engineers, approved flight dispatchers and service engineers, would not be eligible for the scheme. The national carrier also aims to reduce its annual wage bill by Rs 375 crore annually over the next five years once VRS is doled out to its employees. "This way Air India's net savings would be Rs 1,725 crore in the next five years and if the government gives out Rs 1,200 crore, then it will save a little over Rs 500 crore only. Moreover, there is also an apprehension that the talent will migrate and the deadwoods would remain there till superannuation," the sources said.
— PTI |
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I-T Dept slaps Rs 582-cr tax demand notice on Infosys
New Delhi, May 19 The Bangalore-based software services exporter is already contesting additional income tax demands of $214 million (about Rs 1,175 crore) for four fiscals years beginning 2005 and said it will take legal recourse against the fresh tax demand notice as well. "The company has received the assessment order from the Income tax authorities for fiscal 2009 on May 2, 2013, along with a demand order for an amount of $106 million," Infosys said in a filing to the US Securities and Exchange Commission (SEC) last week. In the filing, Infosys added, “As the company is contesting this position like earlier years, the appellate authority would be approached within the time limit prescribed under the relevant law.” Infosys is already facing tax demands worth $214 million for fiscal 2005 to fiscal 2008 “mainly on account of disallowance of a portion of the deduction claimed by the company under Section 10A of the Income Tax Act.” “The company has received demands from the Indian IT authorities for payments of additional taxes totalling $214 million, including interest of $62 million upon completion of their tax review for fiscal 2005, fiscal 2006, fiscal 2007 and fiscal 2008,” it said.
— PTI |
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Just Dial’s Rs 950-cr IPO opens today
Mumbai, May 19 The issue price range is Rs 470-543 and the discount to retail investors is Rs 47 (10 per cent to the floor price). "This is for the first time that any company is offering such a huge discount of 10 per cent at the lower price band," KRIS director Arun Kejriwal said. The Just Dial IPO, if successful, will be the biggest IPO in calendar year 2013. Last year, Bharti Infratel raised Rs 4,118 crore in 2012's biggest IPO. Founded by VSS Mani, the company, which started offering local search services in 1996 under the Justdial brand, has already raised Rs 208 crore by issuing shares to anchor investors, including Goldman Sachs and HSBC. Citigroup and Morgan Stanley are the book-running lead managers to the issue. The company plans to list its shares on the BSE, NSE and MCX-SX. — PTI
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Form H must to get interest on contributions to extended PPF a/c by AN Shanbhag
— Govind A: Form-H is to be used to declare the intention of continuing the account with subscription for each extended period. It should be filed before the first contribution is made for the first extended year in each block. In its absence, the account will be treated as without-subscription extension. Fresh contributions made to such accounts will enjoy neither the deduction u/s 80C nor the interest. [MoF (DEA) 7/21/88-NS-II dt 10.8.90] If an account holder has failed to file the form, he can approach the MoF and pray for getting the account regularised. The authorities state that the account offices should not accept any after-maturity subscriptions without the Form-H. For this purpose, a list of matured accounts should be kept with the counter assistant. You are not entitled to any interest on the amount contributed in the extended period since Form H was not submitted by you. However, the amount held till maturity (prior to extension) will earn interest till the month prior to the date of withdrawal. Q: Can I report long-term capital loss in stock market while filing the return and carry forward the same for setting-off? For, in case the government introduces long-term gains tax, this loss can be adjusted. — Ramesh A: As long-term capital gain from the stock market is tax-free currently, long-term capital loss from the same source can’t be set-off. Nor can the same be carried forward for set-off in future. Q: I stay in Pune in a rented house. I claim HRA for the same. I have constructed a house in Chennai and taken loan for the same. My parents stay in that house. Can I claim tax exemption on the loan and also get HRA benefit? — Shakthi A: Yes, you can. The provisions relating to HRA and home loan interest deduction are independent of each other. HRA deduction is available as long as you pay rent, regardless of whether you own any property, whether in the same town/city or not. Similarly, as long as you pay interest on housing loan, the interest is deductible, even if you stay in a rented house. Q: My grandfather wants to transfer his shares in my name. Will I have to pay capital gains tax on it? — Sanjay Singh A: The gift of shares by your grandfather will not attract either income tax or capital gains tax. However, when you subsequently sell the shares, capital gains tax will be exigible. The cost of the shares would be the cost incurred by your grandfather when he originally acquired it. If these were acquired prior to 1.4.81, their market value as on 1.4.81 has to be taken as your cost of acquisition. Explanation ‘iii’ to Section 48, defines ‘indexed cost of acquisition to mean an amount which bears to the cost of acquisition the same proportion as Cost Inflation Index for the year in which the asset is transferred bears to the Cost Inflation Index for the first year in which the asset was held by the assessee or for the year beginning on the 1st day of April, 1981, whichever is later’. This means that in the case of an inherited or gifted property, the cost of acquisition is the cost to the original holder (or FMV as on 1.4.81 if the date of purchase is earlier) but the date of acquisition for indexing should be taken as the date of the inheritance or the gift. However, the character of long or short term depends upon the date of acquisition of the original holder. In case this original holder has also acquired the property by way of a gift or inheritance then it will be the date of very first holder who purchased or constructed the property. This may end up in some strange results. For instance, if and when you sell the property, it will be treated as sale of a long-term capital asset, irrespective of your holding period but the ratio for computation of indexed cost will be the CII of FY in which you have sold the property and the FY in which you became its owner.
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Taking a health insurance policy when younger means you get a better deal in terms of a lower premium, as you would usually have fewer pre-existing diseases and better health conditions
Take into account your age Your age is the first thing that must be taken into consideration since it is one of the most important factors that affects your health insurance. It is, therefore, advisable to start early. For instance, if you start at age 35 years or below, then you should start with a sum insured of Rs 1.5 lakh and increase it by 10-15% every year. Taking a health insurance policy when younger means you get a better deal in terms of a lower premium, as you would usually have fewer pre-existing diseases and better health conditions. In addition to that, some insurers also offer plans that are designed specifically for senior citizens or people aged 46 years and above. Such plans come with special features such as a shorter waiting period than the normal health plans. These are some options you can consider, since they meet age-specific requirements. Consider your life stage As life progresses, your insurance requirements will change. For instance, if you are married, you have the responsibility of your spouse and perhaps children too. In such a case, you should have a plan that caters to the possibility of their health problems as well. Thus, you can consider a family floater plan which would cover the entire family under a single policy. This policy will be easier to manage rather than having separate plans for each family member. Consider any other health cover that you may have The company you work at may offer you an insurance cover. While this is definitely a convenient benefit offered by employers, it may not always be sufficient, and will not be long-term. You could lose these benefits upon quitting the job, thus leaving you without any cover, especially in a situation where you may have treated the group cover as the primary health insurance option. It is, therefore, advisable to have an individual health insurance plan too. Also, considering the rising medical treatment costs, especially with new and advanced procedures being available in India, you should consider a product which can serve as a top-up policy (with some deductions applicable). Such a plan would give you continuity benefits over your existing policy at a reasonable premium. Think beyond basic health cover While your basic health insurance would offer standard hospitalisation benefits, you should think beyond that and also include a cover that would cater to specific needs for your family such as critical illness, personal accident etc. There are certain plans available in the market today that can enhance your health cover, thus making it a comprehensive cover. Some of these are:
Tax benefit As per the current tax laws, the premium paid towards health insurance is eligible for tax deduction under Section 80D of the Income Tax Act. This can be a maximum of Rs 35,000, including premium paid for both parents above 60 years. Hence, this is another reason for you to consider a health insurance. The author is Head-Health Insurance, Bajaj Allianz General Insurance. The views expressed in this article are his own
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Take big leap with SIP
To earn maximum returns with maximum risk doesn’t mean you win all the time and earn that return, as risk attached with such an instrument is risk of default, which is the biggest risk as compared to the returns we earn. So now what is the solution to this problem? Does it mean that we should avoid such good return instruments? Hold on…
…I know we all are anxious to know the answer! Of course it is not a good idea to avoid such risk-associated instruments because ultimately they may give good returns. Hence to overcome this situation and get the best returns, you can invest in such instruments by the way of SIP (Systematic Investment Plans) in Mutual Funds. It does not mean that with SIP in Mutual Funds you win all the time or SIP gives more return than direct equity. Wait…
…Definitely SIP may not give higher returns as it happens in case of direct equity, but certainly SIP will give returns and you will not lose money. Let’s see how. So my advice to you is that don’t play with your hard-earned money because though at the time of investing we accept the risk, it is upsetting to lose money when it actually happens. This way even SIP may not give us absolute highest return but as compared to the risk (we are taking through SIP) returns are good, provided you choose a good Mutual Fund and your holding period is for the long term. So it is like if you want healthy investment then you must complete the full dose of SIP (your entire tenure) to reduce the symptoms of market fluctuations. Our in-house research at Apnapaisa for Nifty reveals that if we have invested in Nifty through monthly SIP for 10 years at any time between January 1995 and November 2011, the lowest return was 9.02% and for Mutual Fund the lowest return was 16.98%. So does it mean we can earn this much return? No, we may earn more return than that because for Nifty’s 10-year monthly SIP average is 17.97% and for Mutual Fund it is 27%. We may earn such handsome returns in the long-term provided that while choosing a Mutual Fund, we have taken professional advice and got it reviewed by a professional. So what is the advantage of investing for longer tenure? Investment should be made for a longer tenure only because we don’t know index will move in which direction. Every economy goes through ups and downs and markets move accordingly, and it is not a short-term phenomenon. To overcome such market movements, our investment cycle should be long term. This way like for our body’s fitness, regular exercise is important and not just exercising once in a while. For youngsters, heavy exercise instruments like equity Mutual Funds may work well but for not so young yoga like instruments say debt Mutual Funds, MIP and FMP are good. Still if you want to invest through direct equity for higher returns then “Best of Luck” but if you start investing through SIP then Party to banti hai dost! The author is a research analyst, Apnapaisa.com. The views expressed in this article are his own. |
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Founded in Quebec, Canada, Woodland is the world's leading brand in outdoor and adventure category. Having entered the Indian market in 1992, it now offers a wide range of footwear, apparels and accessories for men, women and kids through its network of over 400 exclusive stores and 4,000 plus multi-brand outlets across the country. Harkirat Singh, managing director, Woodland Shoes, talks to Girja Shankar Kaura about the future strategy of the company.
Q: I had opened a PPF account on 15.02.1998 and it was to mature on 15.02.2013. I failed to furnish Form-H because of lack of awareness in this regard. However, the bank accepted the subsequent deposit in the 16th year. Later on, the bank, on realising that I couldn’t have deposited the money without furnishing the Form-H, refunded the balance due and payable on the date of maturity. Moreover, they refused to pay the interest for almost more than a year for no fault of mine. I came across your article wherein you have briefly discussed the issue. I wish to know whether I am entitled to receive the interest for the period between the date of maturity and actual payment made by the bank. You have stated that such an account shall be treated as without subscription extension. You have also stated that the account extended without subscription shall also earn interest until the entire money in account is withdrawn.
The reasons for having a
health insurance can’t be undermined, but have you ever wondered how
much insurance would be enough for you and your family? It may be a
difficult decision if you are not aware what factors to consider while
deciding how much health insurance you need, but it no longer has to be.
Here are a few tips to help you decide what the right health insurance
amount is for you.
As a rational investor, we always want to invest in those instruments from where we get maximum returns with minimum risk. Unfortunately, there is no such instrument available in the world. That is why we get attracted to risky instrument like equity to get maximum returns.