Companies & Sectors
NMDC suffers revenue loss during 2007-10: CAG

CAG said by extending unwarranted reduction in price, NMDC had passed Rs600.83 crore benefit to customers and not increasing prices in line with increase in export prices led to a loss of Rs227.40 crore for the state-run iron ore miner

New Delhi: Iron ore miner NMDC has suffered Rs745.94 crore revenue loss during 2007-10 for not revising the domestic prices of the steel-making raw material in line with prevailing market rates, the Comptroller and Auditor General (CAG) said, reports PTI.

 

"...due to non-revision of domestic prices by the company (NMDC) in line with movement of market price, the company has suffered a revenue loss of Rs754.94 crore during 2007-10," CAG said in a report, tabled in Rajya Sabha (Upper House of Indian Parliament), on Thursday.

 

The government auditor also said by extending unwarranted reduction in price, NMDC had passed Rs600.83 crore benefit to customers during 2010-11.

 

"Further, not increasing the prices by full percentage in line with increase in export prices led to a loss of Rs227.40 crore during the same period," CAG said.

 

The government miner exports iron ore by entering into long-term agreements (LTA) with Japanese Steel Mills (JSM) and the price it gets is at par with what Australian and Brazilian exporters get from JSM.

 

LTA prices of exports formed the basis for determining the domestic prices for LTA with domestic customers, CAG said, adding that 95% of NMDC's sales came from LTA and the rest were spot sales during 2005-12.

 

"Sales to domestic customers through LTA accounted for 84% of its sales," CAG said.

 

State-run Rashtriya Ispat Nigam and private sector firms like JSW Steel, JSW Ispat and Essar Steel are NMDC's major customers domestically.

 

During 2005-12, NMDC contributed 13% of India's iron ore production and met 26% of the domestic iron ore demand. Last fiscal, it had sold 27.3 million tonnes iron ore valued at Rs11,167.56 crore.

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EPFO trustees may decide interest on PF deposits on 15th January

According to the sources, the preliminary estimates of EPFO indicate that the body would neither have surplus nor have deficit if it pays 8.6% rate of interest to its over 50 million subscribers.

New Delhi: Retirement fund body Employees' Provident Fund Organisation's (EPFO)'s apex decision making Central Board of Trustees (CBT) is likely to decide rate of interest on provident fund (PF) deposits for 2012-13 in its meeting on 15th January, reports PTI.

 

"EPFO trustee may consider the proposal for deciding the rate of interest on PF deposits in its meeting on 15th January," a source said.

 

EPFO has also issued a notice that the 201st meeting of the CBT has been scheduled to be held on 15 January 2013 in Mumbai.

 

As per the practise after the CBT, headed by the Labour Minister, decides the rate of interest for a fiscal, it is sent to the Finance Ministry for concurrence.

 

According to the sources, the preliminary estimates of EPFO indicate that the body would neither have surplus nor have deficit if it pays 8.6% rate of interest to its over 50 million subscribers.

 

However, the unionists are demanding to keep the interest rate at par or above 8.8% provided to the subscribers of Public Provident Fund, which is voluntary scheme.

 

The unionist have also been demanding raising the interest rate to 9.5% provided by the body in 2010-11. EPFO had slashed the rate of interest by 1.25% to 8.25% for 2010-11.

 

Prior to 2010-11, EPFO had maintained an interest rate of 8.5% for five consecutive years since 2004-05.

 

"We will demand interest rate of 9.5% for this fiscal in the trustees meet. It should commensurate the prevailing bank deposits rate ranging from 9 to 10%," Hind Mazdoor Sabha Secretary AD Nagpal who is also an EPFO trustee told PTI.

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India realises Rs181 crore in tax based on info provided by France

France has provided details of Indians having bank accounts in one of the banks of Switzerland using which the tax authorities realised Rs181 crore in tax

New Delhi: The Indian government on Thursday said tax authorities have realised Rs181 crore on undisclosed income of Rs565 crore detected so far on the basis of information provided by the French government relating to certain bank accounts in a Swiss bank, reports PTI.

 

"On the request of the government and persistent follow up in June 2011, France has provided details of Indians having bank accounts in one of the banks of Switzerland, under the provisions of Double Taxation Avoidance Convention (DTAC) between India and France," Minister of State for Finance SS Palanimanickam said in a written reply in the Rajya Sabha.

 

Investigation conducted led to detection of undisclosed income of about Rs565 crore and realisation of taxes of about Rs181 crore, he said.

 

Palanimanickam also added that the investigation in the cases where information was received from France are under progress including with the foreign tax authorities to obtain more information.

 

Based on the information received from the Government of France relating to certain bank accounts reportedly held by certain individuals or non-individuals in a foreign bank, he said, investigations have been undertaken by different jurisdictional authorities under the Income Tax Act 1961.

 

In a separate response, Palanimanickam said government receives information from various countries regarding assets including bank accounts held abroad by Indians under the respective Double Taxation Avoidance Agreements (DTAAs) or Tax Information Exchange Agreements.

 

Based on information received since March 2009 under DTAAs regarding foreign bank accounts maintained by certain individuals or non-individuals, undisclosed income of about Rs600 crore has been detected and taxes of about Rs 200 crore have already been realised, he said.

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COMMENTS

NSriramamurty

4 years ago

Even in Rajya Sabha ,GOI is not telling Rajya Sabha Members full details of Indians having Rs.600 Crores in Banks in France.India has Strong Acts like Money Laundering Act,FEMA,& Black Money control. Rs. 600 Crores should have gone to France in Violation of Acts. GOI do not take any action to find out the Illegal Activity involved in it. This also Proves Arvind Kejriwal's Allegation as Correct.

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