Poll India: 2004
EC moves out Haryana DGP
New Delhi: The Election Commission has asked for the transfer of the Haryana Director General of Police M S Malik to a post unrelated to elections, following complaints by some political parties. Malik's wife, Krishna, is the ruling party (INLD) candidate from the Sonepat parliamentary constituency, and it has been alleged that police machinery in the constituency was being misused. The Commission has also asked for a panel of names to fill the post of DGP.
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Moody's projects 6.5 per cent average annual growth
New Delhi: In its annual report on India the rating agency Moody's has said that the country's economy is proving to be stronger than its peers enjoying a similar Baa3 foreign currency rating. Moody's has projected the economy to grow at an average annual rate of 6.5 per cent in the coming years.

It has said though this would mean a slight slowing down from the growth in the current fiscal, it would nevertheless be a "respectable" rate. It has pointed out that the growth trend would be difficult to maintain "in the absence of increased investment in human and physical infrastructure and a fiscal adjustment that would leave more room for private investment to expand."
The agency blames the weak fiscal situation for the lower rating of the domestic currency.
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Crisil: GDP growth will be higher than preceding years
Mumbai: The country's gross domestic product (GDP) growth is expected to exceed the average annual growth of the preceding three years, according to Crisil. In its ratings roundup for 2003-04, Crisil (Credit Rating and Information Services Ltd) said the year ended March 2004 saw rating upgrades outnumbering downgrades by three to one (14 upgrades and 5 downgrades), which is happening for the first time since 1995-96.

With broad-based strengthening of credit quality, increasing capacity utilisation levels across the industrial economy and the improved environment for raising funds, Crisil believes that there is a strong likelihood that industrial investment will pick up in financial year 2005. The manufacturing sector's credit quality improved in 2002-03 after almost a decade of decline. This positive trend was maintained in 2003-04 as well. The commodity and financial services sectors saw a particularly strong improvement in credit quality in 2003-04.
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Jaswant: Low interest rates boosted economy
Mangalore: The Union Finance Minister, Jaswant Singh, has said that low interest rate regime had helped boost economic growth in the country. This had helped trade and commerce to make progress in their respective spheres. Stressing the need for maintaining the current economic growth, he hoped that India could become an economic superpower earlier than expected, provided the present growth rate is sustained.

The Government has set 2020 deadline for becoming an economic superpower. On tax concessions to salaried class people, he said that it was part of the recommendations of the Pay Commission. Since salaried people were prompt in paying their tax, they did deserve special attention.
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Assocham submits queries on service tax rules
New Delhi: The Associated Chambers of Commerce and Industry of India (Assocham) has submitted a proposal to the Finance Ministry recommending that the services of individual self-employed people where the total value of service is not in excess of Rs 10 lakh in a year be exempted from service tax.
Alternatively, the Chamber feels a flat amount of service tax under a simplified system should be charged to enterprises and individuals rendering annual service for a value not exceeding Rs 10 lakh.

A similar approach is also adopted in the case of proposed VAT under compensation scheme. According to the Chamber, at present the service tax regulation does not have any threshold limit.
Assocham has sought clarification with regard to whether the right given by a foreign enterprise to an Indian company on payment of royalty to access its knowledge base, trademark and technology overseas is taxable in India under service tax or not; and also whether royalty payments are taxable under service tax and if so, under what category.
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Finance Ministry clears 34 FDI proposals
New Delhi: A total of 34 foreign direct investment (FDI) proposals have been cleared by the Ministry for Finance and Company Affairs, involving investments worth Rs 617.28 crore.
The government has cleared a proposal by Zee Telefilms' to issue Foreign Currency Convertible Bonds (FCCB) worth Rs 480 crore to British Virgin Island-based Delgrada Ltd and Mauritius-based Wakefield Holdings Ltd. The UK-based investment company Pearson Overseas Holding Ltd's plan to acquire 13.85 per cent stake in Business Standard involving FDI worth Rs 8.37 crore has also been cleared.
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