Mumbai: The tax dispute with telecom major, Vodafone, has not impacted foreign fund inflows into the country which, on the contrary, has increased substantially, reports PTI quoting a top income tax official.
"The issue (Vodafone tax liability) has not impacted foreign funds inflow," Central Board of Direct Taxes (CBDT) chairman, S S N Moorthy, told reporters on the sidelines of an event here today.
"Foreign funds inflows have increased in 2009-10 as compared to 2008-09," the official said.
Mr Moorthy's assertion came in the wake of a section of India Inc voicing apprehensions that the huge tax liability raised against Vodafone could discourage multi-nationals from investing in India.
The income tax (I-T) department has finalised its tax liability claim against Vodafone at around Rs12,000 crore, he said.
"It (the tax liabilities) is around Rs12,000 crore," the CBDT chairman said in response to a query.
The IT department is likely to issue a fresh tax demand notice to Vodafone amounting to around Rs12,000 crore today.
The Supreme Court had on 27th September issued notices to the tax authorities directing them to decide within four weeks the liabilities of Vodafone.
It had refused to offer any immediate relief to the company, which has challenged the Bombay High Court order allowing the government to tax the company's $11 billion deal with Hutch.
The Vodafone case will come up in the Supreme Court on 25th October.
Tata Mutual Fund floats Tata Fixed Maturity Fund Series 29 Scheme A; Kotak Mahindra MF launches Kotak FMP 370 Days Series 10; HDFC Mutual Fund unveils HDFC FMP 100D October 2010 (3); Sharekhan ties up with US-based academy to offer stock market courses
Tata Mutual Fund floats Tata Fixed Maturity Fund Series 29 Scheme A
Tata Mutual Fund has launched Tata Fixed Maturity Fund Series 29 Scheme A, a close-ended income scheme. The investment objective of the Scheme is to generate income and/or capital appreciation by investing in debt and money-market instruments having maturity in line with the maturity of the Scheme.
The Scheme offers growth and dividend (payout). During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The exit load for the Scheme is nil. The Scheme opens on 22nd October and closes on 27th October. The minimum investment amount is Rs10,000.
The benchmark index for the Scheme A (371 days maturity) is CRISIL Short Term Bond Fund Index.
Kotak Mahindra MF launches Kotak FMP 370 Days Series 10
Kotak Mahindra Mutual Fund has launched Kotak FMP 370 Days Series 10, a close-ended income scheme.
The investment objective of the Scheme is to generate returns through investments in debt and money-market instruments with a view to significantly reduce the interest rate risk.
The Scheme offers growth and dividend (payout). During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The Scheme closes on 26th October. The exit load for the Scheme is nil.
The minimum investment amount is Rs5,000. The Fund seeks to collect a minimum subscription amount of Rs1 crore.
CRISIL Short Term Bond Index is the benchmark index. Deepak Agrawal and Abhishek Bisen are the fund managers.
HDFC Mutual Fund unveils HDFC FMP 100D October 2010 (3)
HDFC Mutual Fund has launched HDFC FMP 100D October 2010 (3), a close-ended income scheme. The investment objective of the Plan under the Scheme is to generate income through investments in debt/money-market instruments and government securities maturing on or before the maturity date of the Plan. The Plan will invest 60%-100% in debt and money-market instruments having low to medium risk. The Plan will invest 40% in government securities having low risk.
The Plan offers growth and dividend (payout). During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The exit load for the Plan is nil. The Plan closes on 1st November. The minimum investment amount is Rs5,000.
CRISIL Liquid Fund Index is the benchmark index. Bharat Pareek and Anand Laddha are the fund managers.
Sharekhan ties up with US-based academy to offer stock market courses
Mumbai-based retail broking house Sharekhan Ltd has tied up with California-based financial education provider Online Trading Academy (OTA), to offer courses in stock market education in India. The curriculum will be based on OTA's hands-on coaching style to provide live trading experience to students.
All trading costs and losses, if any, incurred by the students, will be borne by OTA. The seven-day introductory course called Professional Trader India Course has been specifically designed to suit Indian trading conditions.
Sharekhan will offer brokerage discounts to students till their entire tuition fee is virtually reimbursed. It will also offer access to its recently launched Trade Tiger platform - a single online platform for multiple exchanges as well as mutual funds and initial public offerings.
We dug deep into the coal behemoth’s seamier side. Though Coal India is flying high now on the back of its big-bang IPO, it really did not come up smelling of roses
Now that the hype about Coal India Ltd's (CIL) Rs15,000-crore mega initial public offer (IPO) is dying down, now it's time to look at the company's darker side.
For instance, there are about 615 proceedings pending against employees of CIL and its subsidiaries, including investigation by the CBI and the Central Vigilance Commission, (among other regulatory bodies) relating to corruption and other charges. Still, CIL firmly believes that these proceedings will not impact its financial results. The world's largest coal reserve holder, in its red herring prospectus, has not submitted a comprehensive list of legal proceedings.
In May 2010, MP Dikshit, ex-chairman and managing director of South Eastern Coalfields Limited (SECL), a subsidiary of CIL, was arrested by the CBI for allegedly accepting about Rs1.30 crore from two private firms. In 2003, the government suspended NK Sharma, CMD of CIL, on allegations of corruption. He was charged with misappropriation in the purchase of coal and allegedly favoured Bharat Earth Movers Ltd for awarding a contract.
The Centre is also fully aware about CIL and its subsidiaries' illegal practices but it looks like the government, and indeed, the coal behemoth itself, do not seem to be concerned, since the entity accounts for more than 80% of India's coal output.
Recently, Union coal minister Sriprakash Jaiswal had told reporters that the Centre has taken "adequate efforts" to curb corrupt activities in the coal sector, which had built up over the past 30 years. However, he did not miss the chance to blame state governments, saying that the Centre is "not getting help" from them in eradicating corruption.
As on 10 September 2010, nine public interest litigations, three criminal and ten income-tax cases have been filed against the company. Despite being a government undertaking, CIL is also facing allegations from other government departments. The Department of Central Excise and Customs has raised a claim of Rs6.40 million against the company (CIL did not provide the detailed information in its red herring prospectus).
There are 16 arbitration matters and 10 civil cases, which account for about Rs268.69 million and more than Rs100 million respectively, involving the company.
Additionally, there are about 160 cases relating to sales and marketing disputes filed by CIL's consumers. The company has also been charged for alleged encroachment of land for carrying on mining activities and 236 service matters have been filed by its employees.
CIL's subsidiaries are one step ahead as far as pending litigation goes. More than 250 criminal cases have been filed against Bharat Coking Coal Limited (BCCL), another subsidiary of CIL. One notable case has been the criminal case filed by the directorate general of mines safety, against BCCL officials, alleging that certain company officials had failed to take timely action to repair or replace badly-deteriorated pipelines which resulted in the death of three workers.
Six public interest litigations and a whopping 448 tax cases, relating to sales tax, service tax, royalties, rural employment and primary education cess, and bank guarantees which involve Rs5,696.27 million, have been filed against BCCL. A total of 868 civil, 843 service cases and 71 arbitration petitions have also been filed against BCCL.
Central Coalfields Limited, which has lost 11.26 lakh tonnes in production till June this year, is also facing allegations for illegally dumping hazardous waste, forceful occupation of land, violating environmental norms, evading electricity duty and various tax cases. The total amounts involved in tax cases and arbitration cases are Rs29,423.42 million and Rs478 million respectively. The directorate general of mines safety has also slapped accident cases against a few CCL employees.
Central Mine Planning and Design Institute Limited (CMPDIL), Eastern Coal Fields Limited (ECFL), Mahanadi Coalfields Limited (MCL), Northern Coalfields Limited (NCL), South Eastern Coalfields Limited (SECL) and Western Coalfields Limited (WCL) - all CIL subsidiaries - are facing thousands of cases relating to criminal, tax, encroachment and environmental issues amounting to billions of rupees. A molestation case has also been filed against a senior official of NCL.
A media report says that despite the company's safety and health measures, the situation is still poor. Major accidents were in the New Kenda Colliery (54 deaths) in 1994, Gaslitand mine (65 deaths) in 1995, and Bagdiggi mine (29 deaths) in 2001 and there is also a steady toll of smaller accidents. In the case of units under CIL, the annual number of deaths run at an average of 190, added the report.
Despite the company and its subsidiaries being charged with serious allegations, almost all market pundits and research firms have gone ballistic over the IPO citing the company's strong balance sheet, rapidly growing production and reserve capacity and increasing demand for the company's products.