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India
to amend double taxation convention with Italy
New Delhi: India has decided to amend the double
taxation avoidance convention with Italy, with a view
to boosting trade and investment from the European nation.
"The cabinet today gave its approval for signing
of the protocol amending the double taxation avoidance
convention," the information and broadcasting minister,
S Jaipal Reddy, said after the meeting. The two sides
agreed to incorporate the Italian proposals as well as
the Indian proposals through a 'protocol' amending the
existing convention, he said.
The
main provisions of the protocol include substitution of
local income tax with a regional tax on productive activities
by Italy.
It
also envisages broadening the scope of permanent establishment
for taxation of services and insurance covers. The protocol
also covers tax treatment of business profits, air transport
and shipping.
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Industry
welcomes new steel policy
New
Delhi: Domestic steel companies and industry chambers
have welcomed the new steel policy cleared by the Cabinet.
The policy envisages the country's annual steel production
to reach 100 million tonnes by 2020 from 30 million tonnes
at present.
According to Tata Steel officials the policy took cognisance
of improving the domestic demand, which was vital for
the growth of the steel industry.
Essar Steel officials said it was a long-awaited decision
that would enhance the country's steel manufacturing capability.
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Domestic
steel prices soften
Kolkata:
Steel companies are cutting steel prices as inventories
are rising. This comes after steel prices have softened
in China.
JSW Steel and Ispat Industries have cut prices by around
Rs500 a tonne with effect from November 1. JSW Steel had
had increased flat product prices by Rs500 a tonne on
September 1 and has now corrected the move.
According
to industry official's pressure on prices was coming from
China where Baosteel, the Chinese market leader with a
21-million-tonne production capacity, cut prices by around
US$100 a tonne in September. In India steel prices are
aligning with the international market.
In
recent times there has also been a deluge of cheap steel
imports mainly from Russia, Ukraine and Romania. Industry
sources said even after the price cut, there was a difference
of Rs500 a tonne between domestic prices and import prices.
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Inflation
down to 4.49 per cent
New
Delhi: Inflation, based on the wholesale price index,
declined to 4.49 percent for the week ended October 22
from 4.71 per cent the previous week.
The
reason for the fall is mainly due to a fall in prices
of essential food items and industrial fuel although manufactured
products became costlier.
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Cabinet
approves infrastructure SPV
New
Delhi: The Government has given its nod for setting
up of India Infrastructure Finance Company (IIFCL), a
special purpose vehicle to fund mega projects.
The
Government will provide guarantee up to Rs10,000 crore
to IIFCL in 2005-06, for borrowing long-term funds, of
ten years and above, from domestic and overseas markets.
It can also borrow funds from multilateral lending agencies
such as World Bank and ADB.
IIFCL
would be incorporated under the Companies Act, and would
be fully owned by Government.
The
SPV would fund viable projects in sectors such as road,
bridges, railways, seaports, airports, inland waterways,
power, urban transport, water supply, gas pipeline, special
economic zones, international convention centres and tourism
projects.
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Tax
revenue up 24 per cent in H1
New
Delhi: Robust rise in corporation tax and customs
duty along with a reasonable rise in excise duty collections
have helped the Centre raise tax revenue by 24 per cent
at Rs96,249 crore during the first half of this fiscal
as against Rs77,860 crore in the previous half
Tax
revenue, till September, constituted 35.2 per cent of
the estimated Rs2,73,466 crore for the entire 2005-06.
Till the first half of the last fiscal, tax revenue had
touched 33.3 per cent of the estimated figure of Rs2,33,906
crore for the whole 2004-05.
Corporation
tax collections rose substantially by 66.81 per cent at
Rs33,926 crore during April-September period over the
previous year's first half, reflecting industrial growth
during the period. For the month of September itself,
the tax yielded 44.2 0 per cent more revenue at Rs20,589
crore compared to Rs14,278 crore during the same month
of the last year.
Excise
duty collections grew by 10.35 per cent at Rs40,416 crore
during first half of this fiscal compared to Rs 36,622
crore during the first half of the previous fiscal.
During
the April-September period of this fiscal, excise duty
collections contributed 41.99 per cent of the total tax
revenue collections.
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ATF
price cut by 1.85 per cent
New
Delhi: Public sector oil firms have cut Aviation Turbine
fuel (jet fuel) prices by up to Rs745 per kilolitre or
1.85 per cent, as oil prices across the world are falling.
The
slash in ATF prices for domestic airlines ranges from
Rs650 per kilolitre to Rs745 per kilolitre, according
to Indian Oil Corporation, India's largest oil firm.
The
new prices came into effect from November 1.
For
international airlines, who do not have to pay local levies
on the fuel, the cut would be between US$25 and US$26
per kilolitre.
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New
law on limited liability partnership on the anvil
New
Delhi: The concept paper on the new Limited Liability
Partnership (LLP) Act, which has been released by the
ministry of company affairs, proposes to allow firms to
form LLPs.
This provision will provide the corporate sector greater
business flexibility as two or more companies will be
able to enter into an LLP to execute specific projects
like mining, research and exploration.
As more and more Indian companies are entering into ventures
with foreign companies, it was felt that the country needed
a modern law, which gave flexibility to businesses. Globally,
LLP is a recognised form of doing business, especially
in the services sector, and now with the services sector
driving India's growth, the time is ripe for the enactment
of an LLP law, officials said.
The ministry is likely to introduce the LLP Bill during
the winter session of Parliament.
Under the new legislation, all kinds of businesses and
services, including professional services, like those
offered by chartered accountants and lawyers, will be
allowed to form LLPs.
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