India's WTO offerings dependant on reciprocity
New Delhi: The Cabinet Committee on WTO, which met under the chairmanship of Prime Minister Manmohan Singh, has directed the Commerce Ministry to make improved offers in sectors where initial offers have already been made in 2003.

"What we ultimately offer will depend on what is offered to us," Commerce Minister Kamal Nath said, adding that his ministry had been given the flexibility to move forward in services negotiations.

"While making the revised offer, New Delhi will also be guided by the range and depth of the improved offers that would be made by the developed countries in modes and sectors of interest to India," he said.

The sectors in which initial offers were made included business services, construction and related engineering services, health related and social services, tourism and travel related, maritime and transport services.

The opening up of retail, legal and accountancy services will be solely driven by national interests even though there is a mounting pressure on India from the US and other developed countries on the issue.
Back to News Review index page  

GE to join NTPC, BHEL for Dabhol revival
New Delhi: Scott Bayman, President and CEO, GE India, has announced that GE Energy would join National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals Ltd (BHEL) to determine a course of action for restarting and completing the Dabhol Power Project (DPC).

In a statement to the press, GE India said that as soon as arrangements are completed at the site, GE Energy would dispatch its engineers and technical advisors to examine GE-supplied turbines and related equipment. Based on these evaluations and the findings of NTPC and BHEL on the balance of the plant, a detailed work schedule for the restart of phase 1 and completion of phase 2 would be established.

"GE is pleased with the course of discussions with the various stakeholders in DPC and looks forward to a complete resolution of the outstanding issues," Bayman said, adding that the company had always held that a fully producing plant was in the best interests of the people. "We are keen to put Dabhol behind us, assist with bringing power to the people of Maharashtra and pursue our growth initiatives across a wide range of business sectors in the country," he said in a statement.

GE's decision to partner with NTPC and BHEL follows the recent visit of GE Chairman and CEO, Jeffrey R. Immelt, to the country during which he met the Prime Minister and Ministers for Power, Finance and Commerce.

The 2,184-megawatt Dabhol plant, one of the country's largest foreign investment projects, was shut down in June 2001 after a dispute over electricity tariffs between the then US-based promoter Enron Corporation and the Maharashtra State Electricity Board.

GE and Bechtel Group Inc together own an 85 per cent stake in DPC.
Back to News Review index page  

ICAI to issue guidance note on fringe tax
New Delhi: The Institute of Chartered Accountants of India (ICAI) has finalised a Guidance Note that requires corporates to disclose FBT as a separate line item in their financial statements. It is implied that FBT would have to be disclosed separately in both the quarterly as well as annual earnings disclosures of corporates.

According to ICAI officials, the FBT has to be shown as a line item that is separate from the current tax liability of the company as FBT is not a tax on the income of the company and therefore cannot form part of the current tax liability.

The officials have also clarified that FBT couldn't be considered as part of employee cost as it was an additional tax and the liability to pay this tax was on the employer and not on the employee.
Back to News Review index page  

Chidambaram: No sales tax from States on textiles meant for exports
Coimbatore: The Union Finance Minister, P. Chidambaram, has asked the State Governments to desist from levying sales tax on textile items meant for exports.

The Union Minister said that he was ready to make common cause in this regard with textile manufacturers organisations/trade bodies. The trade can lead delegations to all State Chief Ministers to prevail upon them to spare textiles meant for exports from sales tax, he said.

"States can't levy sales tax on export of readymade garment or hosiery goods. Any levy of sales tax on exports should be either reimbursed or removed," Chidambaram, said while addressing a textile exporters' meet at Tirupur.

Chidambaram, who was called upon by textile exporters to compensate for the various taxes including the State levy that pushed up their transaction cost, however made it clear that there was no substance in their asking the Centre to reimburse a duty levied by the States.

"As for the Central sales tax data on exports, no sales tax has been levied on exports and India does not have an export tax on textiles. There has been no cess on textiles either," Chidambaram said.
Back to News Review index page