Economy & Business   

Taxmen target exporters

What is India News Service, August 02, 2004, 1700 hrs IST


With Finance Minister P Chidambaram having raised the bar on tax collection, taxmen will now breathe down the neck of exporters who have claimed up to Rs 1 lakh in tax exemption on their profits over the last four years and more than Rs 1 lakh over the last six years. 

The income tax department has decided to reopen the cases of exporters who availed of tax exemption on the basis of export incentives and not on actual profit from exports under the Section 80 HHC of the Income Tax Act. The section, which exempted profits from exports from tax, ceased to exist on March 31, 2004. 

Share broking on a consolidation spree: The share broking business is in the consolidation and expansion mode. The big are getting bigger and the small are beginning to align with the big to adapt to the demands of the retail market. 

DLF to invest in Delhi airport plan: The DLF Group-Malaysia Airports Holding Berhad (MAHB) consortium plans to invest about Rs 5,000 crore in the modernisation of the Delhi airport over a period of 7-10 years. 

Net profit of 499 firms climbs 180%: Only 44 per cent (499 companies) of the 1,250 companies posted a staggering 180.1 per cent rise in net profit and a 28.1 per cent rise in sales in the quarter ended June 2004. Their profit margins increased by anywhere between 350 basis points and 500 basis points from June 2003. 

India gains clout as regional trade hub: The first BIMST-EC summit meeting has paved way for the launch of several initiatives. This confirms India’s emergence as a significant player in the new regional group that will act as an economic bridge between South Asia and Southeast Asia. 

Major victory for India in trade talks: India has scored a major victory in the World Trade Organisation(WTO) in being able to ensure significant gains and protection for the agricultural sector.The framework promises to slash state support and tariffs in the farm sector, lower import duties on manufactured goods, open up the world’s services sector and harmonise customs procedures. 

Oil marketing firms ask govt to slash tariffs: Oil marketing companies have approached the government to reduce tariffs since they will continue to lose around Rs 210 crore due to a Rs 1.20 per litre under-recovery on diesel. 

Govt to privatise only four metro airports: The government has decided to limit the privatisation of airports to the four metro airports only. The modernisation of other airports will be undertaken by the Airports Authority of India (AAI). 

UPA panel yet to take shape: There has been a delay in the setting up of the co-ordination committee between the Congress-led United Progressive Alliance (UPA) government and the four Left parties supporting the government from outside. 

Hind Lever bets big on water: At a time when Hindustan Lever (HLL) is going through one of its most challenging phases of growth, the company is betting big on its water business. Developed in-house, HLL believes that the ‘Pure It’ brand of water purifiers will change the dynamics of the water business. 

Poor infrastructure Indian Silicon Valley’s bane: The fight for Bangalore’s infrastructure, and in larger terms for an economic and political model that seeks to create wealth rather than rely on short-term redistribution, is beginning in earnest. 

Bharti, Reliance send missive to minister: Telecom majors Bharti and Reliance have called upon the government to reject any proposed move to allow cellularoperators direct connectivity between two circles bypassing the STD operators as it would adversely affect them.

Improved sentiment on bourses: Encouraging financial performance by most blue chip companies in the first quarter and increased participation by foreign institutional investors kept the bourses extending the winning streak to a fifth straight week. 

Status report on textile industry by February: The Textiles Committee is preparing a State-wise "status report" of the industry which is expected to be completed by February next. 

Tax collection surges by 27%: The buoyance witnessed in the tax collections has been attributed to the 25 per cent growth in the corporation tax and robust sales and profits. 

Return on shareholder funds on the rise: Shareholders in Indian companies now get a better buck for every rupee invested than they did a couple of years ago. 

Ro-ro may become Konkan Rly monopoly: Konkan Railway Corporation Ltd (KRCL) may get the monopoly rights to operate a ro-ro service along the Indian Railway network. 

Infosys bags Pepsi contract: Infosys Technologies Ltd has won a deal from Pepsi that has the potential to swell up to $40 million over two years, according to sources. 

i-flex lines up Rs 120-cr expansion plan: Increased momentum in the Latam (Latin America) and European markets has prompted banking solutions provider i-flex Solutions to earmark Rs 120 crore towards infrastructure expansion. 

As fares fall, people take off: Things just got better for domestic air travellers. In a concerted effort to stimulate the market all airlines have come up with highly tempting deals to woo passengers. 

300 essential drugs may come under price control: The Centre plans to regulate retail prices of 300 essential drugs, according to the Union Minister for Chemicals, Fertilisers and Steel, Mr Ram Vilas Paswan. 

'PSU banks must offer more educational loans': The public sector commercial banks should offer more educational loans, observed the Union Finance Minister, Mr P. Chidambaram, at the conclusion of his visit to the rural bank branches in the district.

Fertiliser pricing policy soon,Paswan: The Centre is working on a fertiliser pricing policy that will address the requirements of manufacturers such as Madras Fertilizers Ltd (MFL). The Fertiliser Ministry is reconsidering the decontrol of urea marketing, which he said was a `blunder' by the previous Government.

Sensex steady, Bajaj gains 4%: The indices are moving in a narrow band. The Sensex is currently at 5183, up 13 points, while the Nifty is unchanged at 1632.
Other major Sensex gainers include HPCL, GACL, ACC and Tata Power. 

Overall:

FM targets exporters: Taxmen will now breathe down the neck of exporters who have claimed up to Rs 1 lakh in tax exemption on their profits over the last four years and more than Rs 1 lakh over the last six years. 

India successful in trade talks: It scored a major victory in the World Trade Organisation(WTO) in being able to ensure significant gains and protection for the agricultural sector.

Oil firms request governmnet to slash prices: As they will continue to lose around Rs 210 crore due to a Rs 1.20 per litre under-recovery on diesel.