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Tata rolls out Jaguar,  Land Rover in India
Tata Group chairman Ratan Tata and Land Rover's managing director Phil Popham at a press conference to announce Jaguar Land Rover's India entry in Mumbai on Sunday.Mumbai, June 28
Two of Britain's most luxurious and elegant auto brands, Jaguar and Land Rover, were today launched here at prices as rich as their features.


Tata Group chairman Ratan Tata and Land Rover's managing director Phil Popham at a press conference to announce Jaguar Land Rover's India entry in Mumbai on Sunday. — PTI

Lager faces challenge from craft beer
First unit to come up in Himachal
Chandigarh, June 28
Lager beer that has monopolised Indian markets for the past several decades has a competitor in craft beer now.

Budget Countdown – III
SMEs seek funds for upgrade,  lower lending rates
Chandigarh, June 28
Among the sectors worst hit by the global economic meltdown, small and medium enterprises (SMEs) are now looking to the 2009 Budget for some relief in the form of reduced interest rates as well as a technical upgradation fund for this sector.





EARLIER STORIES



AI unions continue talks with management 
New Delhi, June 28
Adopting an accommodative posture, Air India unions are continuing their talks with the management ahead of their decision to boycott work on Tuesday to protest the delay in payment of their salary.The AI management had some days ago said that the salary for the month of June would get delayed by 15 days that there was financial crisis in the PSU.

CII demands sops for IT sector
New Delhi, June 28
Seeking to bring in more investment in the IT sector, the industry think tank CII has recommended to the government to consider according full depreciation, once in a block of three financial years.

‘SBI Ezee’ car loans at 8 pc
Mumbai, June 28
The State Bank of India yesterday said it would launch a car loan scheme 'SBI Ezee' for financing new cars on July 1 at interest as low as 8 per cent for the first year.

Tax Advice
No tax on gift by daughter

Q. This is with reference to your column in the Tribune dated June 6. Please let me know whether one can receive gift from his married daughter or son-in-law without paying any gift tax and up to what limit. Also will there be any liability on the part of receiver? — V.K. Singla





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Tata rolls out Jaguar, Land Rover in India

Mumbai, June 28
Two of Britain's most luxurious and elegant auto brands, Jaguar and Land Rover, were today launched here at prices as rich as their features, although their Indian owner Tata Motors swallowed a Rs 2,500-crore loss on account of them.

Tata will sell the Jaguar, which had its origins in a motorcycle sidecar company, XF and XKR series for between Rs 63 lakh and Rs 92 lakh, while Land Rover's Discovery and Range Rover would be priced between Rs 63 lakh and Rs 89 lakh.

"It's quite a memorable day in the history and heritage of Tata Motors... JLR has been well received and well established in India (in the past), but over the years this brand has been disconnected from India," Tata group chief Ratan Tata told reporters here announcing the launch.

"We will measure the response to the brands here and at an appropriate time, we will expand the brand to other cities, which is yet to be determined," Jaguar managing director Mike O' Driscoll said.

Asked how many units the company hopes to sell in India, Land Rover managing director Phil Popham said: "These are premium niche brands, so we are looking at relatively small numbers. Our challenge is to establish the brands here."

About the two brands' official entry into the country, Tata said: "I think the cars will exhibit the levels of technology and levels of performance here."

The two brands would give Indian public an opportunity to experience the "pleasure of driving the superior technology" and now "we have decided to extend the penetration of the two brands in India," he added.

Asked about the current status of JLR asking for financial assistance from the UK government, Tata said: "We are in discussion with the UK government on loan guarantee. We are hopeful that we will find a solution to it. Our funding plans for JLR will progress further..." "Sustaining downturn is extremely important... I would like to see these two brands to come out of the downturn and the companies will have new vehicles and new models.

"...the loan that we are talking to, would be allotted to the company by European Banks," he added.

On sharing, leveraging JLR's strong markets, like the US, for Tata Motors' products, Tata said company did not have any such plans as the vehicles were in completely different segments.

He , however, said: "We will work closely on R&D. We will share intellectual property, but we have never tried to merge the two brands with Tata Motors. Over time, the sophistication of dealing with customers and spares will start to commonalise between the two companies."

Tata Motors would also decide about assembling the premium cars in India depending upon the business scales by the two iconic brands, he said. — PTI

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Lager faces challenge from craft beer
First unit to come up in Himachal
Prabhjot Singh
Tribune News Service

Chandigarh, June 28
Lager beer that has monopolised Indian markets for the past several decades has a competitor in craft beer now.

TVB Craft Breweries, enjoying strategic technical partnerships with a group of Australian craft brewing companies, has decided to enter Indian market in eight states, including Punjab, Haryana, Himachal Pradesh and Chandigarh, to give beer guzzlers a high- end variety in ever-expanding market that has been witnessing 14 per cent growth every year.

Though the growth of lager beer industry elsewhere in the world is restricted three to four per cent, it is craft beer that has been witnessing a rapid increase in its market share globally. Craft beer now enjoys 10 to 20 per cent of world market share, says David Home, CEO and managing director of the TVB Group International.

“We do not intend to achieve volumes but want to provide the consumers in India with a high-end variety. We have entered into partnership with Manav Breweries in Ghaziabad to contract brew all five craft beer and ale flavours. We are in the process of starting our own brewery that will be 100 per cent craft beer brewery in Himachal Pradesh, by 2010.

“We have an initial brewing target of 600,000 cases annually. This will be followed by a target increase in brewing production between 2009 and 2012 to 40,00,000 cases annually,” he adds.

Indian brewery industry is way behind the world craft beer industry.

David Home maintains that even stronger Indian lager beers have been losing to moderate and lighter beers. He expects three to four new craft beer players to enter Indian market every year from now onwards, saying there is a tremendous potential for growth for everyone.

One reason for the phenomenal growth of lager beer industry worldwide has been its low-temperature fermentation. While most of the North American, European and Australsian countries have gradually gone for craft beer that has specialised process of fermentation. Craft beers are based on hops and malts and have superior taste and aroma.

Talking to a select group of newsmen, Habeeb Kamaal, chairman, TVB Craft Breweries, says Indian Pale Ale, one of the most popular craft beer worldwide, has no brewer in India. Introduced by the British, it used to be imported in India. While more than 100 breweries make Indian Pale Ale in the US, nearly 50 breweries in Australia also specialise in Indian pale Ale. Ales are fermented on high temperature. Indian pale Ale is the best beer to go with the hot spicy Indian food.

Since craft beer need special fermentation and are malt and hop-based, they are priced 20 to 25 per cent more than the normal lager beers. While alcohol content varies between 4.7 and 5 per cent, bitterness of craft beer varies between 14 per cent and 32 per cent.

Umesh Kapoor and Kamaljeet Cheema, CF Agents of TVB Breweries, say that there has been overwhelming response to craft beer in the markets in the northern region. They have met the long-standing demand for high-end flavoured and aromatic beers that were missing earlier.

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Budget Countdown – III
SMEs seek funds for upgrade, lower lending rates
Ruchika M Khanna
Tribune News Service

Chandigarh, June 28
Among the sectors worst hit by the global economic meltdown, small and medium enterprises (SMEs) are now looking to the 2009 Budget for some relief in the form of reduced interest rates as well as a technical upgradation fund for this sector.

Already facing the heat because of the slowdown in demand (both domestic and export), SMEs in the region said they have also been burdened by the credit squeeze. Since the vast majority work on very small margins, they are now hoping Finance Minister Pranab Mukherjee would enhance working capital limits and also cut interest rates on bank loans.

Amarjit Goyal, chairman & MD of Modern Steels and a former PHDCCI chairman, said in spite of the government’s economic stimulus packages SMEs as well as micro enterprises had not been able to benefit much from them. “The need of the hour is to control production costs and become price competitive in world markets. With SMEs in China receiving full support from their government, we are losing out on this front. The budget should provide for softer lending rates till the present economic situation improves. The government could subsidise the interest rate being charged to SMEs by 200 bps less than the BPLR till March 2010. Also, a 5 per cent cash subsidy on the value of exports could be given to boost them,” he said.

Agreeing with him, SC Ralhan, regional chairman of the Engineering Export Promotion Council (EEPC), North India, noted SMEs could only survive now if they continued to modernise their units. “We suggest schemes like TUFS (already existing for the textile sector) should be introduced for the SMEs engaged in manufacturing engineering goods. At the same time the government should lower interest rates for those units that require capital for revamping their plants,” he said, adding a five-year tax holiday on exports by SMEs should also be announced in the budget.

Chandigarh Industrial Fasteners Association president AL Aggarwal said since SMEs contribute in a big way to the country’s economy, accounting for 45 per cent of total sales and over 40 per cent of exports, the budget should provide relief to this sector. “Besides lowering interest rates commercial banks and other financial institutions must be issued directions to provide 20 per cent of funds over and above their sanctioned credit limits so that SMEs can cope with payment delays and boost production”, he added.

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AI unions continue talks with management 
Tribune News Service

New Delhi, June 28
Adopting an accommodative posture, Air India unions are continuing their talks with the management ahead of their decision to boycott work on Tuesday to protest the delay in payment of their salary.

The AI management had some days ago said that the salary for the month of June would get delayed by 15 days that there was financial crisis in the PSU.

Since then major unions of the organisation have held several rounds of discussion with the CMD of AI, Arvind Jadhav, and other management representatives in Delhi and Mumbai, suggesting several measures to cut costs and increase savings for the airline, reeling under financial crisis.

Representatives of the unions held a long drawn out meeting with the CMD on Friday, which although remained inconclusive, but the representatives would be meeting him again over the next few days.

Among the measures suggested by the unions, the management has accepted and notified the leave without pay scheme for the employees. The unions have been blaming the earlier decisions of the management on various issues for the present financial crisis.

The unions' leaders have pointed out that giving away profitable routes to international airlines through bilaterals, providing lucrative slots and sectors to private domestic airlines, acquisition of new aircraft and merger of erstwhile Air India and Indian Airlines were some of the reasons which have made the airline cash-strapped.

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CII demands sops for IT sector
Tribune News Service

New Delhi, June 28
Seeking to bring in more investment in the IT sector, the industry think tank CII has recommended to the government to consider according full depreciation, once in a block of three financial years.

This has particularly been sought for the companies with an annual investment in IT equipment and software to a limit of Rs 25 lakh.

The CII feels that this will significantly lower the tax burden on high-tech investment, induce large-scale corporate buying of computers, which will raise labour productivity, increase economic growth and give a boost to the MSMEs and thus the whole economy.

It feels that both government and industry have a common objective of increasing penetration of ICT and computers in the country, which currently stands very low as compared to the developed and even some of the developing countries. To improve ICT penetration, it is of utmost importance that the absolute cost of purchasing ICT and computers is brought down.

It further said that the capital cost of purchase can either be directly made cheaper by bringing down the prices of hardware, or indirectly reducing the overall cost of purchase of ICT by providing incentives to corporate and individual to invest in ICT.

It feels that 100 per cent depreciation is one such option in the latter category, wherein the SMEs immediately obtain the benefit, by way of reduction in the cost of purchase of a computer.

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‘SBI Ezee’ car loans at 8 pc

Mumbai, June 28
The State Bank of India yesterday said it would launch a car loan scheme 'SBI Ezee' for financing new cars on July 1 at interest as low as 8 per cent for the first year.

Car buyers can get loans at reduced rates of 8 per cent per annum fixed for the first year and 10 per cent per annum fixed for the second and third year, a press release issued here said.

Equated monthly installments (EMIs) for a SBI car loan for Rs 1-lakh will be as low as Rs 1,559 in the first year and Rs 1,647 in the second and third year, the release said.

The interest rate will be reset from the fourth year at the card rate contracted as on date of sanction, depending on the tenure of the loan. The SBI car loan card rates are 0.25-0.75 per cent below the bank's PLR, the release said. The SBI Ezee Car Loan Scheme will have a full processing fee waiver during the scheme period.

SBI, which had introduced a special 10 per cent per annum fixed interest rate for the first year from February 23, has now extended it up to September 30.

"During the last year, SBI has marched ahead in the car financing space and is now the largest financier of new cars.

The scheme has a long repayment period of seven years and no advance EMI. Besides, it offers the benefit of a free accident insurance cover for loan outstanding up to Rs 40 lakh.

There is financing up to 85 per cent on the on-road price of the car and interest is calculated on the daily outstanding balance, which reduces the interest burden on the borrower against the monthly outstanding balance or flat rate basis as charged by a few others, the release said.

SBI has entered into strategic tie-ups with Maruti Suzuki India and Tata Motors and financing arrangements with all major car manufacturers including Hyundai Motors, the release said. — PTI 

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Tax Advice
No tax on gift by daughter
by S.C. Vasudeva

Q. This is with reference to your column in the Tribune dated June 6. Please let me know whether one can receive gift from his married daughter or son-in-law without paying any gift tax and up to what limit. Also will there be any liability on the part of receiver? — V.K. Singla

A. In accordance with the provisions of Section 56 of the Act any sum of money the aggregate value of which exceeds Rs 50,000 received from any relative is not chargeable to income-tax. The term 'relative' as defined under the said section includes any lineal ascendant or descendant of the individual as well as the spouse of such lineal ascendant or descendant. Accordingly, such gifts, if any received by the donee from her daughter as well as son-in-law would not be chargeable to Income-tax. It may be added that there is no gift tax leviable on gifts as the Gift-tax Act 1958 is not in force.

Relief u/s 89

Q. I want to know that to claim relief u/s 89 what has to be done whether the Form 10E is to be submitted with employer and how the relief is calculated u/s 89. If someone has not submitted the form 10E can he claim relief? — Tarun Airi And Saha

A. The relief under Section 89 of the Income-Tax Act 1961 (the Act) can be granted if an individual receives any portion of his salary in arrears or in advance or receives profits in lieu of salary. The relief can be claimed under the provisions of Section 89 of the Act read with Rule 21A. The requirement of submission of Form 10E is contained in Rule 21AA. Rule 21AA requires that an assessee entitled to relief under Section 89(1) of the Act may furnish to the person responsible for making the payment referred to in sub section (1) of Section 192 of the Act the particulars specified in Form 10E. The calculation of the relief under section 89 of the Act has to be made as under:

1. Compute the tax payable on the total income, including the arrears etc., of the relevant previous year in which the same is received.

2. Compute the tax payable on the total income, excluding the arrears etc., of the relevant previous year in which the additional salary is received.

3. Ascertain the difference between the tax at (1) and (2).

4. Compute the tax on the total income after including the arrears etc in the previous year to which such salary relates.

5. Compute the tax on the total income after excluding the arrears etc in the previous year to which such salary relates.

6. Find out the difference between (4) and (5).

7. The excess of tax computed at (3) over the tax computed at (6) is the relief admissible under Section 89 of the Act. No relief is admissible if tax at (3) is less than tax computed at (6).

There are certain decisions of various courts according to which any document required to be filed along with the return if not so filed, be filed during the course of assessment proceedings. However, in case Form 10E is not filed along with the return and an assessment is framed under Section 143(1) of the Act, the relief under Section 89 of the Act may become a casualty. It is therefore advisable to file Form 10E with the return in case the same has not been filed with the employer/ex-employer as required by Rule 21AA.

Tax liability

Q. I am a senior citizen of 70 years of age. My total income for the financial year 2008-09 is as under:

Annual pension 1,95,000

Interest income 1,25,000

Amount invested in PPF and National Saving Certificates 1,00,000.

What would be the tax payable for assessment year 2009-10?

— T.P. Srivastava

A. Your taxable income on the basis of the figures given in the query for the assessment year 2009-10 works out at Rs 2,20,000. This being below the maximum amount which is not chargeable to tax in case of senior citizen, no tax would be payable by you. I may however add that you would be liable to file return of income in view of the proviso to Section 139 of the Act.ITR-4

Q. In ITR 4 in balance sheet annexure under the head "loans and advances" there are two items: (a). Advances recoverable in cash or in kind or for value to be received (b). Deposits, loans and advances to corporates and others. What is the difference between the two? I want to know while filing return in case of commission agents, money they have to take from agriculturists , i.e (zimidara ugrahi) is to be shown in (a) or (b). Please guide.— Sam

A. The term 'advances recoverable in cash or in kind or for value to be received' is reflected under the category of 'asset' in ITR 4. Similarly, the amount of 'deposits, loans and advances to corporate and others' are required to be reflected as an 'asset' in ITR 4. However, your query is with regard to the receipt of money by the commission agent which will have to be reflected as a current liability under head 'sundry creditors' in ITR 4.

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