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| J&K Bank extends facilities to Haj pilgrims Excelsior Correspondent JAMMU, Feb 21: The Jammu and Kashmir Bank has made elaborate arrangements for the benefit of Haj ......more
Budget
should be NEW DELHI, Feb 21: The budget 2001-02 should offer fresh incentives for small savings......more PSEB to introduce CHANDIGARH, Feb 21: Punjab State Electricity Board (PSEB) will soon introduce an innovative scheme of.....more France
to support dev NEW DELHI, Feb 21: France is willing to support the development of a food-fruit-flower.......more |
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CBDT circulars on NEW DELHI, Feb 21: Two circulars by Central Board of Direct Taxes (CBDT) allowing Foreign Television Companies (FTCs) to pay normal tax rate on their presumptive profit of 10 per cent earned through advertisements in India, have been challenged in Delhi High Court on the ground that these were issued solely to benefit the FTCs.....more Napster
offers 1 bln SAN FRANCISCO, Feb 21: Napster, the wildly popular online song swap service, offered a five-year, 1 billion dollar deal to the recording industry in an .....more CMs
oppose move to cut NEW DELHI, Feb 21: Even before the centre cut interest on small savings, Chief Ministers of different states have stiffly opposed any such move saying....more US
trade group demands WASHINGTON, Feb 21: An American trade group has demanded the Bush administration to put India on priority watch list under a special trade law ..more |
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J&K Bank extends facilities to Haj pilgrims Excelsior Correspondent JAMMU, Feb 21: The Jammu and Kashmir Bank has made elaborate arrangements for the benefit of Haj pilgrims at the Jammu airport today. According to a press release, large banner welcoming the Haj Pilgrims were displayed enroute airport and in the departure lounge. Grant Shamianas were erected with chairs and mats where Haj pilgrims could take test and offer Namaz before departure. The Bank had also put up an exchange counter where each Haj pilgrim was provided 50 US Dollar against cash payment. Bank also provided one leather pouch to each Haj pilgrim for keeping the passport, air ticket, identity card and other travel document. Every pilgrim was served snacks, tea, coffee and mineral water. Bank senior officers remained present at the air port to oversee the arrangements till last Haj pilgrim boarded the plane. Minister for Haj and Auquaf, B A Kichloo, Minister for Ruler Development, Ajay Sadhotra, Divisional Commissioner, Jammu, Mr Anil Goswami, Director Airport, R K Singla and other government functionaries had all praise for the arrangements made by the Bank. The Haj pilgrims hailing from remote areas of the state thanked the Bank for having showing this courtesy to them and they told officers of the Bank that they will pray to almighty to shower their blessing on the Bank, its management and the staff. |
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Budget should be state-friendly: CMs NEW DELHI, Feb 21: The budget 2001-02 should offer fresh incentives for small savings and a fiscal restructuring package for the states to help them tide over the resource crunch, according to State Governments. In separate interviews to UNI on the budget, Chief Ministers and Finance Ministers of various states also favoured a greater share for the states in the tax revenue collected by the Centre. Most of them said their financial problems mainly stem from the additional burden imposed on them by the Fifth Pay Commission recommendations for Government employees and as such the centre has the responsibility to help them. "Almost all the states are facing a severe fiscal crunch, more so in Orissa. I would like the Finance Minister (Mr Yashwant Sinha) to present a comprehensive fiscal restructuring package for states like Orissa who are in urgent need of central assistance," says Chief Minister Naveen Patnaik. His counterpart in Himachal Pradesh, Mr Prem Kumar Dhumal, agrees, stating that the Centre should give financial assistance to states as they have to bear the burden on account of the Pay Commission. Assam Chief Minister Prafulla Kumar Mahanta says "what I would like to see in the union budget 2001-02 is a much more state-friendly" approach, especially for Assam and other special category states of the northeast. "Our problems could be summed up in one expression: The vicious cycle of backwardness, made more complex by problems of insurgency. In order to make a meaningful dent in this scenario, we have to have a special window of financial assistance from the centre," Mr Mahanta states. On small savings, Mr Dhumal says the centre should consider giving more tax concessions to encourage small savings which the states utilise for development work. "Small savings should have total exemption from income tax, irrespective of the amount," he suggests. According to Mr Lalchamliana, Mizoram’s Minister of State for Finance, "the State Government employees were demoralised after the rate of interest on the GPF savings was reduced from 12 per cent to eleven per cent recently." Greater incentives are required to reverse the declining trend in savings which have slipped from 26 per cent of the GDP in 1995 to about 22 per cent now, he says. Agreeing with the suggestion, the Haryana Government says "incentive-related small savings campaign launched to mobilise public deposits have received a serious setback due to policy changes at central level like frequent reduction in interest rates and discontinuation of instruments like the Kisan Vikas Patra. Interest rates have to be fairly higher and the level of non-taxable savings needs to be enhanced from Rs 60,000 to Rs 1.5 lakh." Rajasthan Chief Minister Ashok Gehlot says the Rs 60,000 limit under Section 88 of the Income Tax Act was fixed long time ago. It should be raised to Rs one lakh to motivate people to invest more in small savings. The proposal, however, does not find favour with Mr Patnaik who states that incentives to promote savings are in place. What we need is a stronger regulatory framework to protect the interests of small investors who are defrauded by fly-by-night operators. Haryana also wants a hike in the share of the states in the total central revenues, from 37.5 per cent to at least 40 per cent. The present share is very low compared to 38 to 44 per cent during 1990-95, it argues. Mr Gehlot supports this stand, stating that "we feel that the union gets the lion’s share of tax revenue whereas major developmental tasks and regulatory functions have been assigned to states." The capital market also needs to be boosted to channelise household savings, while specific tax incentives can induce fresh investment, Haryana suggests. (UNI) |
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PSEB to introduce ‘pre-paid card’ facility CHANDIGARH, Feb 21: Punjab State Electricity Board (PSEB) will soon introduce an innovative scheme of ‘pre-paid card’ facility for supply of power to its consumers. The ‘pre-paid card’ can be inserted into the meters at the consumers premises for getting power supply, he said, adding that on trial basis the board would initially put such cards into use in about 10,000 connections mostly in Mohali, near here. PSEB Chairman G S Sohal told reporters today that the pilot project for giving pre-paid cards to consumers is in the final stage as all modalities in this respect have been completed. The pre-paid card system is in practice in South Africa, Israel and China, Sohal said. He said the Board had installed ‘electronic meters’ in the premises of all consumers having connections with above 100 kw load. The Chairman said the accumulated loss of the Board is to the tune of Rs 970 crore during the last fiscal. Efforts were being made by the Board to bring down these losses to Rs 250 crore during this year, he added. Sohal said the total revenue collected by the Board last year stood at Rs 3890 crore while the target for this fiscal is Rs 4800 crore. As many as 2.5 lakh applications for fresh tube well connections are pending before the Board with 8.2 lakh application cleared. Sohal said the Board has stopped from September last the import of coal from Australia due to increase in import duty. The outstanding for various industries in Punjab is to the tune of Rs 130 crore, he said adding that this was due several reasons, including closure of certain units. The Board is suffering an annual loss of Rs 300 crore on account of supply of free power to farmers, he said adding that the Government had committed to give Rs 200 crore as compensation this year against free supply of power to farmers. (PTI) |
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France to support dev of
food-fruit-flower NEW DELHI, Feb 21: France is willing to support the development of a food-fruit-flower cold chain system in India to boost farm product processing and export. The proposal, likely to get financial support from the French Ministry of Agriculture, will be jointly assessed by the Confederation of Food Marketing Enterprises (CFME) and ACTIM, the French technical cooperation agency, before the India visit of the French Agriculture Minister later this year. An official delegation of French food firms is expected to accompany the French Minister. The Indo-French initiative forum at its two-day meeting that ended Tuesday also suggested India going in for the highly successful french model food parks for integrated processing of farm products. For this, India is to identify an official agency to work with the french technical arm Agripole. (The forum is a policy suggesting body of influential persons, set up at the initiave of the two Governments during the 1998 Delhi visit of French President Jacques Chirac). Utilisation of the cooperative movement for organising production and processing is another thrust area suggested by the Forum meet. In France, cooperatives are highly successful and active in food processing. The Forum is making an initiative to popularise the Indian food to French hotels and restaurants. A food meet being planned in Goa in April is expected to bring together Indian and French chefs and restaurant owners. In the process, the French food service in Indian hotels is expected to get a boost. Development of micro-hydel projects was another area identified for bilateral cooperation between the two countries. The Indian embassy in Paris has been asked to coordinate participation of French firms in such projects on a build-own-operate pattern of agreement. The French side has also considered making available funds for Indo-French surveys on underground water management, flood control and provision of safe drinking water (especially for low income areas). (UNI) |
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CBDT circulars on ‘tax reliefs’ to FTCs challenged in HC NEW DELHI, Feb 21: Two circulars by Central Board of Direct Taxes (CBDT) allowing Foreign Television Companies (FTCs) to pay normal tax rate on their presumptive profit of 10 per cent earned through advertisements in India, have been challenged in Delhi High Court on the ground that these were issued solely to benefit the FTCs. A bench comprising after a preliminary hearing, has posted the matter for further hearing on march 15 after the Government counsel said a reply would be filed if the court so desired. CBDT circular of May 2, 1996 and a subsequent circular of April 15, 1998 overruling objections by Secretary, Department of Revenue regarding the former order, were sought to be quashed by a Public Interest Litigation (PIL) saying these were not required as the Income Tax Act already had provisions for estimation of the incomes of non-residents. The Secretary, Revenue Department had raised objection to the first circular, but this was overruled "for reasons best known to the chairman of CBDT, resulting in huge losses of revenue to the exchequer and causing injury to public," the PIL, filed by Advocate B L Wadhera claimed. The PIL, alleged in view of the impunged circulars, the rate of taxation for FTCs was reduced from 55 per cent during assessment years 1995-96 to 1997-98 to 48 per cent from 1998-99. "The effective rate, thus, worked out to be 3.8 per cent for the year 1995-96 to 1997-98 and 3.3 per cent from 1998-99 onward on advertisement revenues of the FTCs" if calculated in terms of the normal rate of tax which was in force in those particular years, the petitioner contended. Wadhera alleged that CBDT’s first circular was based on a presumption that advertising agencies working for ftcs were retaining 15 per cent of the gross amount earned by these companies and their Indian agents were keeping another 15 per cent of their gross earnings. The FTCs, which did not maintain their own offices in India but operated only through agents, were taking away the remaining 70 per cent of the revenue earned on advertising, cbdt had presumed while issuing the circular, the PIL said. Making such an imaginary presumption without having any ground level assessment, the CBDT came to the conclusion that 10 per cent of the gross receipts of advertisement revenue, excluding 30 per cent or so retained by the agents and the advertising agencies "would be fair and reasonable profit of the FTCs." It said. Since the CBDT had clarified that guidelines mentioned in the circulars would be applicable to all pending tax cases of FTCs subject to a review later with regard to reasonableness of the rate of interest, but no such review or assessment was carried out against any of the company, the writ alleged. The board in February 1996 had issued direction to all the assessing officers of Income Tax Department to take into account only the criteria of 10 per cent profitability by FTCs, which they might have transmitted abroad. The circulars thus had put a cap on tax authorities to ascertain the actual amount of profit earned by a particular television company in India and what was the actual amount sent by it abroad even as the advertising revenue had shown a rising trend in India, the writ said. (PTI) |
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Napster offers 1 bln dollar settlement deal SAN FRANCISCO, Feb 21: Napster, the wildly popular online song swap service, offered a five-year, 1 billion dollar deal to the recording industry in an attempt to stop the legal battle that threatens its survival. Napster officials, outlining a strategy they hope will keep their company afloat in the face of a threatened legal injunction, yesterday said they were willing to pay 150 million dollar per year in licensing fees to major record companies and 50 million per year in fees to independent labels and artists. "We updated on short notice everyone in the music industry," Andreas Schmidt, President and Chief Executive of the e-commerce group at German media giant Bertelsmann AG, which in October joined forces with Napster in an effort to resolve the company’s legal problems. Napster’s new proposal follows earlier settlement efforts with the recording industry which met with little success. Unlike the previous offer, however, its current proposal is based on the number of files traded over its service rather than a percentage of record company revenues. Many industry observers quickly scoffed at the latest proposal noting that 1 billion dollars over five years does not even come close to the money the labels have figured they are due for infringements on the service which facilitates the downloading of billions of songs each month. "It is Napster’s responsibility to come to the creative community with a legitimate business model and a system that protects our artists and copyrights," said Vivendi Universal’s universal music group in a statement yesterday. "Nothing we have heard in the past and nothing we have heard today suggests they have yet been able to accomplish that task," Universal said. Napster, developed by 19-year-old college drop-out Shawn Fanning, lets fans swap songs for free by trading MP3 files, a compression format that turns music on compact discs into small computer files. Officials at AOL/Time Warner Inc , and Sony Corp had no immediate reaction to the company’s latest proposal, but other industry officials said they are awaiting more concrete details about Napster’s promised plan to unveil a new, secure, fee-charging membership service "If there is a compelling and convincing business model, we would be interested in participating," a spokeswoman for EMI Group PLC. said. Recording Industry Association of America (RIAA) President and Chief Executive Hilary Rosen yesterday accused Napster of waging a public relations campaign through the media while engaging in "delay tactics" in court. "We are exasperated that they have a public relations strategy rather than a business strategy. All you need to do is meet with record companies rather than holding press conferences," said Amy Weiss, a spokeswoman for the RIAA after Napster unveiled its latest proposal to reporters in San Francisco. "We understand Napster’s desire to not have to cease its operations in order to comply with an injunction order from the court," Rosen said earlier in a statement. "It is unfortunate that Napster still has not developed a legitimate system that protects the interests of both consumers and creators." (REUTERS) |
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CMs oppose move to cut interest on small savings NEW DELHI, Feb 21: Even before the centre cut interest on small savings, Chief Ministers of different states have stiffly opposed any such move saying resources so raised were vital for development purposes. Infact they demanded fresh incentives on small savings to step up the savings rate and some even suggested that these savings should have total exemption from income tax irrespective of their amounts. These suggestions were made in separate interviews to UNI on the budget. There is widespread speculation that the Finance Ministry will slash interest on small savings and the opposition comes from the states as part of these accrue to them, making the job of the Central Government difficult in this regard. The fears of a cut have been fuelled by recommendations of the Economic Advisory Council which feels the Government is doling out huge amounts adding to its astronomical borrowing costs resulting from a huge fiscal deficit. Many economists feel that there should be no administered savings rate and it should be market determined. Those who spoke to UNI include Himachal Chief Minister Prem Kumar Dhumal, Assam Chief Minister Prafulla Kumar Mahanata, Mizoram Minister of State for Finance Lalchamlina, a spokesman of Haryana Government and Rajasthan Chief Minister Ashok Gehlot. Orissa Chief Minister Naveen Patnaik was the lone voice which felt that incentives to promote savings are in place. What was needed was a strong regulatory framework to protect the interest of small investors who are often cheated by fly-by-night operators. Favouring a greater share for the states in the Centre’s kitty, the leaders demanded a fiscal restructuring package in the budget to help them tide over their resource crunch. They said their problems chiefly arose from implementation of the recommendations of the Fifth Pay Commission,which was not of their making. It was the therefore, the Centre’s responsibility to bail them out. Mr Dhumal demanded more concessions to encourage small savings which the states use for development work. Mr Lalchamlina said the State Government employees were demoralised after the rate of interest on GPF savings was reduced from 12 per cent to eleven per cent recently. Greater incentives are required to reverse the declining trend in savings which have slipped from 26 per cent of the GDP in 1995 to about 22 per cent now, he said. (UNI) |
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US trade group demands India be put on priority WASHINGTON, Feb 21: An American trade group has demanded the Bush administration to put India on priority watch list under a special trade law provision, which provides for trade sanctions in the event of violation of international agreements. The international property alliance wanted the administration to take the measure to protect the American industry and trade. Other countries in the priority watch list are Brazil, Costa Rica, Guatemala, Indonesia, Kuwait, Lebanon, Lithuania, Peru, Philippines, Saudi Arabia, Taiwan and Uruguay. In the trade field, the US has problems with almost every country in the world. The Government usually works in very close cooperation with industry in these matters. Priority watch list represents the highest category of alleged violations of international trade agreements. The trade group claimed that at least 70 countries are in violation of various international agreements. (PTI) |
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