Economy & Business   

Finance minister moping up tax
arrears from big defaulters

What is India News Service, July 26, 2004, 1700 hrs IST


Finance Minister P Chidambaram has swung into action to realise a tidy Rs 18,000 crore from undisputed direct and indirect tax arrears. He is putting in place a battery of tax officials with a mandate to go after companies with big arrears. 

RBI's salutary moves: The Reserve Bank of India is moving towards internationally accepted best practices. It wants to ensure that undesirable elements are kept out of the dynamic financial system.

Tax benefits help insurance companies: The tax advantages are so glaring that the new insurance companies find it easier to compete in the mutual fund market than in conventional life insurance against the Life Insurance Corporation.

The steel conundrum: Steel prices have doubled since early 2002, but so have the prices of inputs.

Tax relief, results buoy up bourses: The relaxation in turnover tax for certain classes of investors, and the encouraging first quarter results of many corporates, had a positive impact on bourses last week. 

India Inc highest tax payer in Third World: At an average corporate tax rate of 35.875 per cent, Indian industry pays the highest tax in comparison with industry in many developing countries.

Tata Steel to finalise S.African project: The company will finalise investment details for its ferrochrome project in South Africa after September. The technology has already been chosen and negotiations have begun for shortlisting equipment suppliers.

Skoda to make small car for Asians: Czech carmaker Skoda Auto has said that it was looking at the possibility of developing a small passenger car for the Asian market, including India. 

Global BPO biz to hit $230 billion by 2008:The Indian business process outsourcing and IT enabled services sectors are on course to outpace the IT services business over the next five years as the country is now positioned to garner a bigger chunk of the global BPO pie.

MTNL to bid for 2 m GSM lines: Mahanagar Telephone Nigam Ltd (MTNL) plans to float tenders for equipment for two million GSM connections for next year, one million each in Delhi and Mumbai, its circles of operation. 

Nightmare without end: Net users are downloading illegal copies of films through the abuse of technology. For the movie industry, it's a scene straight out of a horror film. 

Indo-US meet on info security: Exploring the possibility of joint US-India programmes to strengthen information security and establishing global standards for secure sourcing would top the agenda at the first India-US Information Security Summit in New Delhi.

Cut your deal: It looks like the backlash in the US against outsourcing has cut both ways. Along with the hysteria of job losses, more companies abroad have become conscious of the benefits of right-shoring. This may trigger good times for Indian IT companies, as long as they play their cards carefully.

Dumping probe on compressors from China, Malaysia: The Designated Authority in the Commerce Ministry has initiated anti-dumping investigation into imported compressors from China and Malaysia. 

'Sectoral approach key to growth': Credit Rating Investment Services of India Ltd (Crisil), is the consultant to the Gujarat Government for preparing the `Vision 2020' document. The document will serve as a blueprint for the state's growth trajectory over the next 15 years.

Bengal keen to reform PSUs: West Bengal chief minister Buddhadeb Bhattacharjee, has reiterated his firm commitment to reforming the state PSU sector. West Bengal has a total of 56 PSUs, mostly taken over from private entrepreneurs. 

India Inc welcomes Kelkar panel proposal: Chambers of commerce and industry have welcomed the Kelkar Task Force Report's recommendations on introducing the goods and services tax (GST) as it would simplify the tax structure. However, there are some concerns on the proposal to do away with tax exemptions.

'Patents Act change can trigger IP violations': Amendments to the Patents Act will require research and development institutions and technology-driven companies to deal with frequent instances of intellectual property violation.

Brokers will not face settlement problem: The Securities and Exchange Board of India on Sunday said broking firms holding clearing accounts with Global Trust Bank, which has been placed under a three-month moratorium by the centre, will not face any problem in settlement of trades.

GTB to be merged with OBC: The Reserve Bank of India (RBI) today announced that Global Trust Bank (GTB) would be amalgamated with Oriental Bank of Commerce (OBC). The scheme of amalgamation would be put on the RBI website. There will be no swap arrangement for GTB shareholders when the private sector bank is amalgamated with OBC.

Demat a/c, lockers to work as usual: Setting at rest ambiguities on the scope of the three-month moratorium imposed on Global Trust Bank, the Reserve Bank of India on Sunday said demat accounts and safe deposit lockers of customers in the bank will operate as usual.

IOC to hike investment in R&D: With the Union Budget 2004-05 exempting research and development from the tax net, downstream major Indian Oil Corporation is contemplating a hike in investment in the particular department.

OBC joins hands with M&M: Oriental Bank of Commerce has entered into a tie-up with Mahindra and Mahindra Ltd to leverage strengths of tractor industry leader and to offer best value for money to farmers. 

TCS to dip into reserves: A historic largest ever IPO from a private Indian corporate notwithstanding, TCS will have to dip into its internal resources for a minimum of Rs 250 crore to pay parent company Tata Sons for transfer of assets.

Tax policy in conflict with comfort signals to airlines: Finance Minister P Chidambaram's summary rejection of any case against service tax on the aviation industry is a clear indicator of divergent views within the government.

Remittances from US on the rise: India’s remittances from the US have soared to $4.5 billion in 2003 and both countries need to establish a mechanism to increase interaction of skilled workforce, Confederation of Indian Industry (CII) has said.

Godrej plans foray into food retailing: The Rs 4,000-crore Godrej group is foraying into food retailing, either by acquiring a food retail chain or by setting up a new one.

Sensex gains 33 pts: Barring tech stocks, sustained buying is seen in almost all the old economy counters. The Sensex, as a result, in early noon deals, has firmed up further to 5,106 - up 33 points. 

Overall:

Chidambaram moping up tax: The finance minister is going after big defaulters, and has set a battery of officials after them.

India pays more tax than other developing countries: Statistics show that India is a better tax payer than others in the Third World. 

GTB will merge with OBC: The Reserve Bank has said it will merge Global Trust Bank, now under a moratorium, with Oriental Bank of Commerce.