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Satyam a Rs 9,600-cr scam, says CBI
New Delhi, March 22
Its probe into the accounting fraud in Satyam Computer has given CBI enough reason to believe that the scam involves a much bigger amount, close to Rs 10,000 crore, than what was disclosed by the IT company's founder Ramalinga Raju, who is now awaiting trial.

Tatas to roll out Nano today
New Delhi, March 22
History will be created in Mumbai tomorrow when Tata Motors launches the world's least expensive car, Nano — a car that can redefine personal transportation in modern India. Described as "People's Car" by Tata Group chairman Ratan Tata, Nano's commercial launch will mark a milestone in a journey, which was replete with controversies, hurdles and criticism from competitors.

1,182-cr order for Wipro
Mumbai, March 22
The Employees State Insurance Corporation (ESIC) has awarded a Rs 1,182-crore contract to software major Wipro Technologies for converting its paper-based administrative and operational system into a paperless E-governance system, a top ESIC official said.



EARLIER STORIES




A vendor carries mops in a small market in the city of Yanji in China's Jilin province on Sunday. China's huge four-trillion-yuan ($580 billion) stimulus package is expected to contribute at least 1.5 per cent to the nation's economic growth this year, a top official said, as the Asian giant continues to fight the crisis.
A vendor carries mops in a small market in the city of Yanji in China's Jilin province on Sunday. China's huge four-trillion-yuan ($580 billion) stimulus package is expected to contribute at least 1.5 per cent to the nation's economic growth this year, a top official said, as the Asian giant continues to fight the crisis. — AFP

Telcos to face penalty for poor service
New Delhi, March 22
Telecom regulator TRAI has come out with specific regulations for mobile and landline services to monitor the quality of service (QoS) offered by telecom operators. Although the telecom sector already has QoS regulations in place, but those were specified in 2005. TRAI has now come out with a new set of regulations which have tightened the existing benchmarks.

Tax Advice
No rebate on amount deposited in grandson’s PPF account
Q. I am a senior citizen and income tax payee. Please advise:
(i) Can I claim rebate under Section 80C towards amount deposited in PPF A/c of my grandsons.
(ii) My son and daughter in law are working couple and have their own PPF A/c and claiming rebate also.
Jaswant Singh, Hoshiarpur

 





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Satyam a Rs 9,600-cr scam, says CBI

New Delhi, March 22
Its probe into the accounting fraud in Satyam Computer has given CBI enough reason to believe that the scam involves a much bigger amount, close to Rs 10,000 crore, than what was disclosed by the IT company's founder Ramalinga Raju, who is now awaiting trial.

Sources said the agency has retrieved over 7,000 fake invoices and forged documents showing fixed deposits and bank balances and their evaluation shows that the size of the scam is over Rs 9,600 crore, much more than the Rs 7,800 crore disclosed by Raju on January 7.

They said the investigating agency during the probe found that the accused relied heavily on technology to generate nearly 7,000 fake invoices to the tune of Rs 4,500 crore and fed the same into Satyam's books.

The sources said these inflated figures were also reflected in the balance sheet in the form of audit reports which helped the company to cheat the public who were purchasing its shares.

The buck did not stop here as the accused also have given false and fabricated statements, found by the CBI, about high capital of the company.

The accused forged documents and created fake fixed deposit receipts to the tune of Rs 3,300 crore.

The FDRs were shown by the accused as available deposits by the company, the sources said, adding the accused had also allegedly manipulated the bank guarantees to show the balance in bank accounts as Rs 1,800 crore.

The CBI alleged that the accused had forged bank documents showing the existence of the cash balance in five banks including ICICI Bank, HSBC, Citibank and BNP Paribas but the banks clarified that they do not have any cash balance in the name of the firm.

CBI is at present questioning the disgraced former chairman of Satyam, B Ramalinga Raju, and others including the auditors of PriceWaterhouse. Their custody was handed over to the CBI yesterday for two days.

Besides Raju, his brother Rama Raju, Satyam's former CFO Vadlamani Srinivas, PW partners S Gopalakrishnan and Talluri Srinivas are in jail awaiting trial in connection with the case dubbed as India's biggest corporate fraud.

In a related development, the CBI was examining the "digital evidence" about the share transactions at National Stock Exchange and Bombay Stock Exchange and did not rule out the possibility of questioning some officials of SEBI, the capital market regulator. SEBI, too, is independently probing the fraud.

Experts including chartered accountants from the Institute of Chartered Accountants of India (ICAI) and Institute of Cost and Works Accountants of India (ICWAI) are also assisting the CBI in probing the role of the regulator in this case, the sources said.

The case was handed over to the CBI on February 18 by the centre after a request for the same was received from the Andhra Pradesh government. On January 7, Raju disclosed to fudging accounts and inflating profits over the last several years. He was arrested by the Andhra Pradesh Police on January 9. — PTI 

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Tatas to roll out Nano today

— Bookings will start from April second week.

— Nano was unveiled at the Auto Expo in Delhi in January 2008

— The company's website, featuring the 'Nano', has registered 30 million hits or visits since the car was first unveiled

— Tata Motors chairman Ratan Tata had said last year that he would retain the price tag at Rs 1,00,000 (for the base model) despite costs of input shooting up

— Nano has 21 per cent more interior space and
8 per cent smaller exterior as compared to its closest rival, Maruti 800.

  • 1908 — Henry Ford launched Model T at half the price of its competitors. It is said that Model T put the USA on wheels
  • 1936 — Volkswagen (people’s car in German) launched in Germany

New Delhi, March 22
History will be created in Mumbai tomorrow when Tata Motors launches the world's least expensive car, Nano — a car that can redefine personal transportation in modern India.

Described as "People's Car" by Tata Group chairman Ratan Tata, Nano's commercial launch will mark a milestone in a journey, which was replete with controversies, hurdles and criticism from competitors.

As far as customers are concerned, they can expect to own a car coming at a price between Rs 1.20 lakh and Rs 1.30 lakh, depending on the version of Nano, although bookings will start only in April second week.

According to dealer sources, if the company keeps the ex-factory price at Rs 1 lakh, as promised by Tata, then the base model could easily have an on-road price of Rs 1.20 lakh after adding taxes such as excise duty, education cess and road tax, along with transportation cost, local taxes, insurance and registration fees and a lifetime parking fees (wherever applicable).

Last month, Tata Motors had appointed public sector lender State Bank of India as the sole booking agent for the world's least expensive car from the stable of Tatas. The booking amount is reportedly fixed at Rs 70,000.

Till the time the Sanand facility in Gujarat is ready by 2010, Nano will be produced from Tata Motors' factories at Pantnagar in Uttarakhand and Pune in Maharashtra in limited numbers.

After the launch in Mumbai, Nano would be displayed at the company's dealerships from the first week of April, while the bookings would start from the following week. The booking process and other details of the Rs 1 lakh car would be announced on the day of launch. — PTI

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1,182-cr order for Wipro

Mumbai, March 22
The Employees State Insurance Corporation (ESIC) has awarded a Rs 1,182-crore contract to software major Wipro Technologies for converting its paper-based administrative and operational system into a paperless E-governance system, a top ESIC official said.

"ESIC has signed a Rs 1,182-crore contract with Wipro Technologies for converting its paper-based administrative and operational system into a paperless E-governance system. The five-phase project would be implemented in the next five years," ESIC (Maharashtra) Additional Commissioner S C Chakraborty said at a meeting on 'Recent Developments in Employees State Insurance Scheme' organised by the Indian Merchants Chamber here. — PTI

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Telcos to face penalty for poor service
Tribune News Service

New Delhi, March 22
Telecom regulator TRAI has come out with specific regulations for mobile and landline services to monitor the quality of service (QoS) offered by telecom operators.

Although the telecom sector already has QoS regulations in place, but those were specified in 2005. TRAI has now come out with a new set of regulations which have tightened the existing benchmarks.

It has also brought the pre-paid segment under the gamut of the new regulations and also recommended financial penalties in case of non-compliance of the regulations.

Faced with an increasing number of complaints from mobile customers, the regulatory body has put in additional regulations for pre-paid users over issues that include billing and call drops. So far, the pre-paid segment was unregulated.

In a statement issued, TRAI said it was considering imposition of financial disincentives on operators as an option apart from penal action to ensure compliance of QoS regulations.

TRAI would also analyse the performance of service providers in detail after the regulations come into effect from July 1 before taking a final call on imposing financial disincentives.

Observing that the majority of billing defaults are not reported by operators, TRAI has expanded the parameter for the same. It would now include instances of payment made and not credited to the subscriber account, payment made on time but late payment charges levied wrongly, double charges and charging for services provided without consent.

It has also made it mandatory for service providers to refund the amount due to a subscriber within a week.

TRAI has also asked the operators to monitor service signals and ensure that they are not less than two per cent. It would mean that the network should be fully available to mobile users 98 per cent of the time. It is also of the opinion that not more than two in 100 users should experience call drops.

The regulator has also mandated that operators withdraw the connection on demand by a customer within a week. It has also said that the operators cannot stall the closure of an account on conditions of non-payment of dues.

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Tax Advice
No rebate on amount deposited in grandson’s PPF account
by S.C. Vasudeva

Q. I am a senior citizen and income tax payee. Please advise:

(i) Can I claim rebate under Section 80C towards amount deposited in PPF A/c of my grandsons.

(ii) My son and daughter in law are working couple and have their own PPF A/c and claiming rebate also.

— Jaswant Singh, Hoshiarpur

A. (i) The deduction under Section 80C of the Income-tax Act 1961 (the Act) in respect of deposit made in a Public Provident Fund (PPF) Account is allowable if the deposit is made in the name of the individual himself, his wife or any child of such an individual. In view thereof, no deduction would be allowable under Section 80C of the Act in respect of amount deposited in PPF account in the name of your grandson.

(ii) Your son as well as your daughter-in-law can claim deduction in case the deposit is made by them in a Public Provident Fund Account opened in the name of their children.

Long-term capital gain

Q. I am an individual and do online trading. I hold 1,287 shares of RPL since last one year. I would like to know more about this swap ratio.

I think, I will get 80 RIL shares after merger i.e. after 1-Apr-09. What should I do for remaining 7 shares of RPL? Suppose, I sell all 80 RIL shares on 1-May-09, will it come under LTCG or STCG?

— Mayank

A. (i) The swap ratio for Reliance Petroleum Limited (RPL) shares as announced in the newspapers was the allotment of one share of Reliance Industries Limited (RIL) against 16 shares of RPL.

(ii) On the basis of the figures given in the query you should be entitled to 80 shares of RIL and a cheque towards proceeds of the 7 shares. Normally in case of odd holdings the remaining shares are allotted to trustees who sell them in the open market at the prevailing price and the shareholders to whom such odd belong are remitted proceeds towards the sale of such odd holdings.

(iii) The profit arising on the sale of 80 RIL shares would be categorised as a long-term capital gain in case the RPL shares were held by you for more than one year.

IT return

Q. Please clarify:

1. If somebody has income only in the form of bank interest for AY 2004-2005 and TDS is deducted and return is filed in October 2007 when net income becomes below taxable limit after 80L, is the person eligible for refund now?

2. My son was lecturer in a college at Jalandhar up to 31.7.2008 and joined an Institute at Chandigarh on 1.8.2008. Should he file the return for AY 2009-2010 at Jalandhar or Chandigarh though he had been filing returns at Jalandhar previously and of course he will file at Chandigarh for the AY 2010-2011.

— Gurdev Singh

A. It seems you have filed your return of income for assessment year 2004-05 in October 2007. If my understanding in this regard is correct, the return as filed is not valid as you could have filed the same by 31st March 2006. If possible, you may persuade the Assessing Officer to issue a notice under section 142 of the Act which would enable the Assessing Officer to take the return already filed as basis for making an assessment. This would enable you to claim the refund.

Your son can file return at Jalandhar in case his permanent residential address is at Jalandhar.

Tax liability of Sr Citizens

Q. Please give information regarding slabs of I.Tax for the financial year 2008-09 (assessment year 2009-10) for the senior citizen who have completed 65 years of age on 4.1.2009.

— Gurdev Singh, Pandoh

A. The Income-tax slab rates as applicable to a senior citizen for assessment year 2009-10 are as under:

1) where the total income does not exceed Rs 2,25,000: Nil;

2) where the total income exceeds Rs 2,25,000 but does not exceed Rs.3,00,000: 10 per cent. of the amount by which the total income exceeds Rs 2,25,000;

3) where the total income exceeds Rs 3,00,000 but does not exceed Rs 5,00,000: Rs 7,500 plus 20 per cent. of the amount by which the total income exceeds Rs 3,00,000;

4) where the total income exceeds Rs 5,00,000: Rs 47,500 plus 30 per cent. of the amount by which the total income exceeds Rs 5,00,000.

The above tax is required to be increased by a surcharge of 10% in case the total income exceeds Rs 10,00,000/- and a surcharge @ 3% towards the education cess. 

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