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Special audit of Satyam likely
The tax department is considering a special audit of the accounts of the scam-ridden Satyam to ascertain tax liability of the IT firm. "We are considering a special audit of the books of Satyam. An order for special audit of the accounts of Satyam is likely to be passed within a week," a tax official said.

Satyam paid taxes on fake earnings

Kingfisher pilots allege breach of contract
Mumbai, April 19
About a dozen pilots of Kingfisher Airlines have petitioned the Directorate General of Civil Aviation (DGCA) seeking a directive to the airline to waive the mandatory six-month notice before quitting, saying the company has altered the service contract by changing salary structure.

Industry for growth-oriented monetary policy
New Delhi, April 19
As the Reserve Bank is set to announce its annual monetary policy on April 21, the Assocham business survey has showed that industry is looking forward to a growth-oriented credit policy with enhanced focus on crisis-ridden sectors, including exports, textiles, gems and jewellery.



EARLIER STORIES





Ratan Tata    Mukesh           Anil 
                      Ambani      Ambani

BusinessWeek List
Tata, Ambanis among India's most powerful

New York, April 19
Prime Minister Manmohan Singh, Opposition leader L K Advani, business tycoons Mukesh and Anil Ambani, corporate czar Ratan Tata and star cricketer Sachin Tendulkar have been named among the 50 most powerful people in India by American magazine BusinessWeek.

Delta shuts Indian call centres
Washington, April 19
America's Delta Airlines, the world's largest airline, has announced to close down its Indian call centres. Airlines officials said the decision was driven by poor customer feedback. This could come as a major setback to India's flourishing call centres which provide employment to thousands of youths across the country.

Tax Advice
IT return not required if income below taxable limit
Q. I am a senior citizen aged 69 years drawing my income from interest and filing my I.T. return regularly without any tax liability for the past many years. Presently, my total gross income is below Rs 2,25,000.

 





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Special audit of Satyam likely
New Delhi, April 19

The tax department is considering a special audit of the accounts of the scam-ridden Satyam to ascertain tax liability of the IT firm. "We are considering a special audit of the books of Satyam. An order for special audit of the accounts of Satyam is likely to be passed within a week," a tax official said.

The Income Tax Department can order a special audit of the accounts under Section 142 (A) of the Income Tax Act in the interest of revenue. Under the special audit, the books of accounts are re-examined by the auditors appointed by the department.

When contacted, the Central Board of Direct Taxes (CBDT) spokesperson declined to comment on the issue.

"Special audit for Satyam is the only viable option", said Aseem Chawla, partner of Amarchand Mangaldas, the law firm which was engaged by the government-nominated board of the Satyam Computer to facilitate acquisition of the company.

According to Chawla, the special audit of the IT company to ascertain its actual tax liability was necessary in view of the admission of fudging of accounts.

Satyam plunged into a crisis in January after its founder B Ramalinga Raju revealed an accounting scam involving thousands of crores of rupees. He admitted to doctoring of accounts and inflating profits for the past many years.

Although the new Satyam board had appointed global auditing firms KPMG and Deloitte to re-state the books of accounts, it would be difficult for the department to accept the report of these auditors as they were not appointed by the authorities.

"We can only conduct an audit or even order it after other firms restating the accounts of Satyam hand over the company's books to us," sources said.

The tax officials further said the department will take a decision on special audit of Satyam after getting the books of accounts.

Board meet today

New Delhi/Hyderabad: The new owner of Satyam Computer, Tech Mahindra will have its first official interaction with the Satyam Board on Monday after obtaining the Company Law Board's approval for acquiring majority stake in trouble IT company.

All Satyam directors, senior Tech Mahindra officials and Anand Mahindra, chief of Mahindra Group, will take part in the Satyam board meeting in Hyderabad tomorrow.

Tech Mahindra will also appoint four directors on the Satyam Board.

The company has to deposit the requisite escrow amount of Rs 1,133 crore for the 20 per cent open offer in a separate account on or before April 22, taking the aggregate amount for 51 per cent stake in Satyam to Rs 2,889 crore.— PTI

Satyam paid taxes on fake earnings

Satyam Computer founder Ramalinga Raju falsified accounts to the tune of Rs 7,000 crore through fictitious fixed deposits, current account and interest on FDs and even paid taxes towards the non-existent interest income to make it appear real.

As of the quarter ending September 2008, the total falsification done by Raju was Rs 7,333 crore, sources said, adding that various fictitious assets were created in fixed deposits and the company showed interests on them.

Sources said the company was paying taxes on the fictitious interest that was shown as earnings to make it look real.

Raju brothers were able to mastermind the entire fraud due to loopholes in the accounting system and Enterprise Resource Planning packages of the company, the sources added.

The modus operandi of the Raju brothers, the sources said, was to firstly identify the amount to be falsified, which was finalised by Raju and former CFO Vadlamani Srinivas, and then creating invoices corresponding to the amount.

After the creation of invoices, receipts against them were prepared and the Raju brothers and the former CFO made sure that the facts were hidden from others.

They made invoices using the administration protocol and hid facts from others by using the super login of the company, the sources added. — PTI

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Kingfisher pilots allege breach of contract

Mumbai, April 19
About a dozen pilots of Kingfisher Airlines have petitioned the Directorate General of Civil Aviation (DGCA) seeking a directive to the airline to waive the mandatory six-month notice before quitting, saying the company has altered the service contract by changing salary structure.

The pilots said they were seeking the waiver as the airline has already breached their contracts by altering some service conditions, including changes in the salary structure.

"We have petitioned the DGCA that Kingfisher should not be allowed to invoke civil aviation requirement (CAR) of 2005, which entails a six-month prior notice for quitting, on the ground that our service contracts have been changed unilaterally," a petitioner told PTI here.

When contacted, a Kingfisher Airlines spokesperson declined to comment on the issue.

These pilots have put in their papers and are joining other carriers, but the airline is not relieving them, citing the six-month notice clause, the petitioner said.

A senior DGCA official confirmed that the pilots have approached the regulator.

"Yes, I think, they have... the petition will be heard on Monday," the official said.

The pilots, who have quit Mallya's airline include five from Delhi and two each from Mumbai, Bangalore and Hyderabad.

In 2005, the government had made it mandatory for pilots to give a six-month notice before quitting any airline.

"The CAR was put in place to prevent last-minute resignations by pilots. However, the airline is misusing it to stop us from joining other airlines," the petitioner alleged.

Kingfisher Airlines pilots have been up in arms against the management for quite some time now over alleged changes in their service contracts, especially after the airline slashed their salaries by Rs 80,000 in February this year. — PTI

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Industry for growth-oriented monetary policy
Tribune News Service

New Delhi, April 19
As the Reserve Bank is set to announce its annual monetary policy on April 21, the Assocham business survey has showed that industry is looking forward to a growth-oriented credit policy with enhanced focus on crisis-ridden sectors, including exports, textiles, gems and jewellery.

More than 92 per cent of corporate heads surveyed felt that the annual monetary policy for the financial year 2009-10 should focus on reviving growth path in the Indian economy.

The Assocham Business Barometer Survey, “RBI Monetary Policy Prospects”, took stock of the industry’s opinion on the actions necessary to bring back the Indian economy on growth trajectory. Around 77 per cent of the CEOs are of the opinion that RBI needs to focus on pushing up sectoral credit disbursements as worldwide recession has severely hit industrial segments such as textiles, gems and jewellery and information technology (IT). All of these sectors are labour-oriented; hence their demise has created serious problems of unemployment.

Assocham urged the RBI to take measures in order to substantiate ‘financial inclusion’ in the country as the rural economy, which accounts for half of the GDP size, has huge potential to fuel growth. Further, support from the government and central bank to micro finance institutions and regional rural banks is required to push the rural economy, which would provide growth and employment opportunities.

Amongst industries, construction is a sector where investments need to be boosted to prevent the slowdown in the pace of activity. A majority (75 per cent) of those surveyed believed that it is a good time for the RBI to re-look at the stringent regulations imposed on real estate sector.

The RBI had increased risk weights in case of commercial real estate from 100 per cent to 150 per cent. In the background of rising real estate prices fuelled by the excess money supply from foreign sources, the RBI has increased the provisioning requirements in respect of the standard assets in real estate to 2 per cent from 1 per cent.

Almost 69 per cent of the ABB respondents appreciated efforts of the RBI stating that it has been quite active in reducing interest rates. 

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BusinessWeek List
Tata, Ambanis among India's most powerful

New York, April 19
Prime Minister Manmohan Singh, Opposition leader L K Advani, business tycoons Mukesh and Anil Ambani, corporate czar Ratan Tata and star cricketer Sachin Tendulkar have been named among the 50 most powerful people in India by American magazine BusinessWeek.

Congress president Sonia Gandhi, Gujarat Chief Minister Narendra Modi, Congress leader Pranab Mukherjee, music maestro A R Rahman, BSP chief Mayawati, Olympics gold medallist Abhinav Bindra and SEBI chairman C B Bhave also feature in the league of 50.

The magazine pointed out that the list of 'India's 50 Most Powerful People 2009' reflects the impact of the Satyam scandal and the global economic crisis.

CPM general secretary Prakash Karat, Mahindra and Mahindra's managing director Anand Mahindra, steel czar Lakshmi Mittal, telecom tycoon Sunil Mittal, IPL chairman Lalit Modi and ISRO chairman G Madhavan Nair and bankers K V Kamath and Deepak Parekh also feature in the list.

"In modern India, even powerful reigns can be short-lived. In the newest edition of BusinessWeek's list of the 50 most influential Indians, politicians jostle for space with professors, businessmen with cricketers," the magazine said.

"The attempt is to pinpoint the shifts in power that defined India in the past year, and to predict the players to watch for in the next year," the magazine noted.

Businessweek has named RBI Governor Duvvuri Subbarao, RJD president Lalu Prasad Yadav, Infosys chief mentor Narayana Murthy, Wipro's Azim Premji, TCS chief Subramanian Ramadorai and Google India's managing director Shailesh Rao, among the powerful people.— PTI

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Delta shuts Indian call centres

Washington, April 19
America's Delta Airlines, the world's largest airline, has announced to close down its Indian call centres. Airlines officials said the decision was driven by poor customer feedback. This could come as a major setback to India's flourishing call centres which provide employment to thousands of youths across the country.

Delta's call centre in India was handled by a call centre of Wipro Ltd. Media reports said Richard Anderson, the airline's chief executive, told employees in a recorded message on Thursday night that Delta had stopped forwarding calls to India in the first quarter and would be bringing the function back in-house in the US.

"The customer acceptance of call centres in foreign countries is low and our customers were not shy about letting us have that feedback," Anderson said. — PTI

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Tax Advice
IT return not required if income below taxable limit
by S.C. Vasudeva

Q. I am a senior citizen aged 69 years drawing my income from interest and filing my I.T. return regularly without any tax liability for the past many years. Presently, my total gross income is below Rs 2,25,000.

Please refer to my query and your reply published on 12.01.2009 under “Non Deduction of TDS”. In that I wanted to know in case my total income (mostly interest) goes above the maximum income not chargeable to tax (which is presently 2.25 lakh as per I.T. Act) and it is brought down to say Rs 1,80,000 by investing u/s 80C the same year, am I entitled to submit Form 15H with the bank for no TDS? Your reply was that I can very well submit Form 15H and that I should file my I.T. return as well.

Now, to a query by Sh. Sushil Talwar (a non-senior citizen) and your reply published on 30.03.2009, you have advised that he cannot submit Form 15G if his total maximum income not chargeable to tax exceeds Rs 1,50,000 (he has mentioned his total as about Rs 2 lakh and he plans to bring it down to Rs 1.5 lakh by way of investment under Section 80C the same financial year).

Kindly clarify the position in view of the above two cases getting your different advices. The two cases appear to be almost similar.

ii) Please also advise on the following: Incidentally, my total income for financial year 2009-10 is likely to be below Rs 2,25,000. I shall of course submit Form 15H for No-TDS as advised by you.

Can I discontinue filing my I.T. return till such time, when my income remains below the income not chargeable to tax (i.e. below Rs 2,25 lakh)? I shall file the return when my income goes above Rs 2.25 lakh.

— S.P. Gambhir, Karnal

A. The reply given to you was in respect of Form 15H where as the reply to Sushil Talwar is in respect of Form 15G. The applicability of both forms is in different situations and, therefore, replies to both queries are not comparable.

(ii) The obligation to file the return of income arises in case the taxable income of an assessee without giving effect to the provisions of Section 80C of the Act, exceeds the maximum amount chargeable to tax. Therefore, in case your taxable income is likely to be below Rs 2,25,000 without claiming any deduction under Section 80C of the Act, you would not be obliged to file the return under the provisions of the Act for financial year 2009-10 provided the limit of Rs 2,25,000 continuous to be applicable for the said assessment year.

Form No. 60

Q. I want to know about the procedure of submission of Form No. 60 to the Commissioner Office. Is the data required to be submitted on a CD or can we submit hard copy of Form No. 60 along with account Nos. of parties, their name, amount and date of transaction. I also want to know if data is to be in CD then whether CD should be in Ms Word format or Ms Excel format.

— Samarth

A. A plain reading of Rule 114B of the Income-tax Rules 1962 indicates that a hard copy of Form No. 60 is required to be filed under the said rule. The details with regard to the parties can be filed in an Annexure in case the space available in the form is not sufficient to cover such details. The form is required to be signed by the declarant. It may not be thus possible for you to file the data in a CD. 

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BRIEFLY

BSNL sets up arm for overseas foray
New Delhi
: Moving aggresively on its overseas expansion plans, state-run BSNL has set up a separate international business division to explore telecom opportunities abroad. We have created an international business unit recently which will look at possibilities abroad — be it acquisition of companies and bidding for licences. M K Jain, GM, International Business is heading it, a senior BSNL official said. — PTI

India's 'wind man' Tulsi Tanti honoured
Toronto
: Tulsi Tanti, known as the "wind man of India", has been conferred with a prestigious award here for his pioneering work globally to promote non-conventional sources of energy. Tanti, the founder of Pune-based Suzlon Energy which is the world's fifth's largest supplier of wind turbines, received the CIF Chanchlani Global India award 2009, instituted by Canada India Foundation, from Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission of India.— PTI

PowerGrid to spend Rs 20,000 cr by 2012
Mumbai:
Central transmission utility PowerGrid Corp has announced an investment of up to Rs 20,000 crore during the XIth Five-Year Plan period to provide transmission system to four ultra mega power projects of 4,000 MW each. This is a part of PGCIL's total investment of Rs 55,000 crore for laying new transmission lines for various projects, including four UMPPs and others to be commissioned, in the 12th plan period (2007-12). — PTI

India gets 43 pc FDI through Mauritius route
New Delhi:
Mauritius accounted for 43 per cent of cumulative foreign fund inflow into India, even as money parked overseas for tax avoidance has become an issue in the Lok Sabha polls. Of the total $81 billion FDI that has come into India since April 2000, $35.18 billion was routed through the Mauritius route, according to figures available with the Department of Industrial Policy and Promotion. — PTI

ZTE to give up to $3 b loans to telcos
New Delhi:
Chinese telecom equipment major ZTE has found a novel way to do business in India as it has tied up with China Development Bank for financing mobile operators by up to $3 billion for their network rollout. This will help ZTE not only compete with well established European players like Ericsson and Nokia-Siemens but also grab market share in the fastest-growing telecom space.— PTI

IMF okays $47 b for Mexico
Washington:
The International Monetary Fund has approved a $47-billion credit line for Mexico under a new scheme designed to throw a cash lifeline to countries hit by the global economic crisis. — AFP

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