R VASUDEVAN (044- 42148569)

Item (1) PSU Banks   Please refer my Email dt.8th July 2009.   The following facts confirm the validity  of my suggestion.   a)                 Last year ALL INDIA BANK ENPLOYEES and OFFICERS threatened to disclose list of Big Bank loan defaulters.   Eventually these Associations dropped this threat for reasons best known to them.   According to an official report the PSU BANKS made huge profits. But the total NPAS have gone up by 11 thousand crors.   Total MPA may be about a few lackh crores.   b)                Higher rate of tax on high income groups.   No less a person than Mr. Narayanamoorthy, chief Mentor INFOSYS has also suggested this on the eve of the budget.   c)                 Excise duty concession on luxury cars – Roll  Back   It is necessary to raise excise duty on costly cars and bikes, sold and use on the Roads in  India.   This has been emphasized by the Mr. CHHAVI DHING, Associate fellow on transport and URBON Development – The energy and Resources Institute New Delhi. (Courtesy  Times of India Dt 15th 2009)   The percentage of use of public transport is less than New Delhi & Mumbai.     Personal Profile: Name                                       :         R. VASUDEVAN Age                                          :         75 yrs Educational Qualification           :         MA (Economics), B.L.                                                           Regular reader B.L. particularly SUNDAY issue Very much interested in helping poor.

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Dear Editor,

 

I am attaching my ‘Reactions on Specific Budget Proposals', alongwith my brief profile and a photograph.

 

Best Regards,

D.R.Dogra
Dy. Managing Director
Credit Analysis & Research Ltd.
4th Floor, Godrej Coliseum, Somaiya Hospital Road
Off Eastern Express Highway
Sion (East)
Mumbai 400 022
India.

 

Tel No.+91-22-67543434 / 35

Mobile : +91-98204 16002         
Fax No.+91-22-67543457

 

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Opinion for Budget Line

Dear Sir,

               My Sanjay Razdan, managing director of Capita India has written a paragraph for budget Line. I am attaching his photograph along with this mail and

 I would really appreciate if you can feature the same in your budget line.

 

“The budget has been positive for the IT-ITES sector as most of the expectations of the Industry have been met. The biggest expectation was the extension of the Income Tax holiday which has been met. Though personally I would have liked it be for at least 3 years. The elimination of the anomaly in the formula for SEZ units and removal of FBT were other long standing demands of the Industry which have been met. The other welcome measure for the sector is the introduction of the ‘Safe-Harbour’ rules and alternative dispute resolution mechanism for transfer pricing adjustments. Hopefully, this will provide a greater deal of certainty in the Transfer Pricing assessments. Though the Minimum Alternate Tax has been increased from 10% to 15% resulting in a higher payout for the IT-ITES units, but the same will now be available for set-off for a longer term of 10 years. Overall it is an inclusive and balanced budget with greater focus on increased public spending and an effort towards reviving the economy.”

 

Quote from Sanjay Razdan on the budget. He is Managing Director Capita India.

 

Thanks and Regards,

Tushar Santra

09967462250.

 

 

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Budget reactions on FBT abolition and its implication to employees by Dr. Rakesh Gupta

Dear Mr. Murali,


I would like to take this opportunity to write this mail to you on the
recent abolition of FBT and how its going to impact the employees.


Please find below the reactions on the abolition of FBT by the government
and the increased burden of tax on employees by Dr. Rakesh Gupta, Senior
Advocate and former ITAT (Income Tax Appellate Tribunal) member. Also,
attached his photograph for the same.


Hope you will be able to carry this news for the benefit of your reader and
guide them about the implication of FBT abolition to them.


Thanks and regards,


Farooque Shaikh
-----------------------------------------------------------------
Ogilvy Public Relations Worldwide
Tel.: +91-22-44344669
Cell: +91-9819753272
www.ogilvypr.com


(See attached file: Article on tax burden on employees post FBT abolition
- Dr. Rakesh Gupta.doc)(See attached file: Photo - Dr. Rakesh Gupta.jpg)

Advocate and former Income Tax Appellate Tribunal (ITAT) member
Would the Tax on Perquisite (Post FBT Abolition) Over Burden the Employee?

Dr. Rakesh Gupta
Advocate and former Income Tax Appellate Tribunal (ITAT) member

The Union Budget is out. Industry's main demand of Abolition of FBT has
been met. Contribution to an approved Superannuation Fund exceeding Rupees
One Lac and ESOP's to employees will be now chargeable as perquisite in the
hands of the employees. That there would be further impact of taxation in
the hands of the employee is clear, as the ministry would now define the
tax incidence on employees on account of the fringe benefits that they get
from their employers. The question that would be arising in the minds of
the millions of employees would be the likely impact on them from the
change. Yes, they got a few sops from the Budget.

The basic exemption limits were raised by Rs 10,000/ giving them a net
benefit of Rs 1,000/. Employees above Rs 10 Lacs taxable salary got extra
benefit due to doing away of the 10% surcharge on their income tax. But
would they still lose overall from the budget provisions, as the burden of
taxation is passed back to them. After all most companies had adjusted
their pay packages on the basis of the Cost to Company of the employee,
including the Fringe Benefit Tax it had to pay. Would it be a windfall for
the company at the cost of the employee?

The valuation of perquisite should have the same exemptions for benefits as
were prescribed under FBT on the employer so that employees are not taxed
in more burdensome manner. These include valuation in respect of prescribed
electronic meal cards, prepaid vouchers, and meals, crèches, other
statutory obligations etc. However, there could still be tax incidence on
account of motor car, driver, club membership, credit cards and a host of
other items. Taking the sum total of the impact, the employee is likely to
get burden with more tax, and this could completely override the tax
advantage that the individual employee got from the budget, unless the
current exemptions are continued and valuation of benefits is done to
ensure no more burden on employees as was in pre FBT regime.

In conclusion, we see that the employees are likely to face more tax burden
from the transfer of tax on Fringe Benefits to them. It is hoped that the
government would be mindful of the impact and align the rules of valuation
with objective of at least maintaining the tax on benefits no more than pre
FBT scenario. While framing the rules it should be borne in mind that the
last rules for valuation of perquisites were defined in 2001 and inflation
has been running high since then. The need to leave sufficient money in the
hands of the employees to increase spending power is the need of the hour.
-END-


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Budget Reflections

A Disappointing Budget
for

 Small Scale and Micro Industries

The Union Budget 2009-2010 came as a total disappointment for the Micro and Small Scale industries as there is no special packages given for this sector which are severely affected due to economic downturn.

There is no mention about the reduction in interest rates for micro & SSIs on par with the agriculture eventhough  MSEs are the largest employment provider and contributor to GDP.

Rs.4000 crore allocated to SIDBI for refinancing MSMEs was already announced by
the Prime Minister in the relief package and it has not actually reached the needy.

The abolition of Fringe Benefit Tax comes and service tax relief for exporters will give fillip to this sector. 

The allocation of Rs.2080 crores for power sector is not sufficient and not realistic since most of the states are suffering due to acute power shortage.

Though It was decided by the Government of India to reduce the Central Sales Tax from 2% to 1% from April 1, 2009, it was not implemented. We request that the Government of India should reconsider for reduction of CST to 1 % with retrospective effect.

 

K. GOPALAKRISHNAN
Hon. General Secretary - TANSTIA-
Tamilnadu Small and Tiny Inds. Association
No.10, G.S.T. Road, Guindy, Chennai - 600 032.
Ph : 044-22501302, 22500939, Fax : 044-22501890
Email : tanstiaorg@gmail.com, tanstiaassn@yahoo.co.in
Website : www.tanstia.org.in

Budget Reactions- Mr. Harpal Singh (Chairman- Impact Group, Chairman- CII Northern Region, Mentor & Chairman- Emiritus Fortis Healthcare Limited)

 

Hi!

 

Please find attached herewith my mail and given below the budget reactions from Mr. Harpal Singh (Chairman- Impact Group, Chairman- CII Northern Region, Mentor & Chairman- Emiritus Fortis Healthcare Limited)

 

 

 

 

 

Thanks & Regards

 

Archana Surya
Senior Associate
Lexicon Public Relations & Corporate Consultants Limited.
(A Fleishman-Hillard International Communications Affiliate)
14-Community Centre, East of Kailash
New Delhi-110065

 

 

Budget Reaction

A balanced Budget

 

The Budget this year appears to be a balanced one with the thrust on inclusive growth. Government has decided to keep the fiscal measures going for stimulating the economy. The Plan expenditure is higher by Rs 40,000 crore than what was mentioned in the interim Budget earlier. If we are lucky and have adequate monsoon, the Government's efforts may yield good harvest for the economy. The challenge for the Government would be to contain the Fiscal deficit which is set to reach 6.8% of GDP (around Rs 4 lakh crore) and return to the provisions of FRBM as soon as possible.

 

Allocations and spending in the rural economy through initiatives like enhanced allocation to NREGS, Bharat Nirman & PMGSY will not only work for the upliftment of the rural areas but will also help in the overall GDP growth of the country as the rural economy is unaffected by the global crisis. Increased spending on infrastructure will ensure liquidity in the market without increasing the fiscal deficit of the Government considerably.

 

On taxation front, the Government has done a commendable job by not increasing taxes despite such rigid fiscal conditions. Extension of Sunset clause is a welcome step considering IT Service industry is the key to India's GDP.

 

Extension of weighted deduction on R&D expenses in manufacturing will help in promoting innovation. Reduction in customs duty on various consumer goods will boost private consumption.

 

Increase in MAT, no increase in IT exemption for home loan interest and no headway on the divestment front were some of the disappointments. However, one cannot get everything from the Budget. There are constraints which the government has to deal with and given the current circumstances, this is a decent Budget.

 

To spur private participation in healthcare, the sector needed infrastructure status. Tax cut on import duties of medical equipments will allow healthcare institutions to access state-of-the-art med equipments.

 

Capacity expansion of all levels of education with a focus on faculty production and training is a welcome step. Infrastructure expansion in Higher Education will lead to increased enrollment rates which had been dwindling alarmingly. The focus on employment oriented vocational education will also boost enrollments in higher education institutions.