Gold Looks Up And About On Hike In Import Duty - July 07, 2009

The gold prices recovered on the bullion market on Monday due to fresh local demand. Along with this, the silver also firmed up further owing to persistent demand from industrial users. The customs duty on silver has also been increased to Rs. 1,000 a kg from Rs. 500. In the domestic market, the standard gold (99.5 purity) shot up by Rs. 80 (10 gram) to Rs. 14,535 from previous weekend''s level of Rs. 14,455.

In line with this, the pure gold (99.9 purity) also firmed up with a similar margin to Rs. 14,605 from Rs. 14,525.

The silver ready (.999 fineness) hardened by Rs. 120 to Rs. 22,120 from Rs. 22,000 a kg previously.

India Direct Tax Receipt 8.3 Per Cent Higher - May 22, 2009

India''s direct tax receipts were 8.33 per cent higher to Rs.3.38 lakh crore in 2008-09, the finance ministry said on Thursday. However the direct tax collections dropped Rs 6,000 crore short of the target of Rs 3.45 lakh crore for 2008-09 fiscal. The fall is in spite of the decreasing the collection target by the government from Rs 3.64 lakh crore to Rs 3.45 lakh crore to allow for the dent the economic crisis could make on its revenues, the statement said.

According to the ministry, corporate tax collections were 10.8 per cent up to Rs 2.14 lakh crore last fiscal. In addition, individual income tax receipts were 9.1 per cent higher at Rs 1.24 lakh crore.

"Despite economic slow-down and substantial relief to non-corporate taxpayers, direct tax collections exceeded the previous year''s collection by about Rs 26,000 crore," the ministry statement said.

Corporate tax deducted at source reported 35.4 per cent rise to Rs 61,683 crore, compared to Rs 45,450 crore the previous fiscal.

Election Commission Obstructs Service Tax Sops For Units - April 27, 2009

The Election Commission (EC) obstructs service tax sops for SEZ units. Now, developers of special economic zones (SEZ) and units operating in them will have to wait until a new government is formed for exemption on service tax payments for services availed inside the zones.

EC is not ready to permit the finance ministry to pass a notification allowing the exemption while elections are on because it could result in direct benefits to a section of the electorate, a government official has said. It will be the new elected government which will bring out the notification, the official said.

Consequently, these units will have to pay the service tax and claim refunds, until the elections are over.

Initially, SEZ units and developers had been allowed exemption on service tax on services availed within the boundaries of the zone, but were made to pay tax on services enjoyed outside the zone.

Price Rises Surged Toward 0.26 Per Cent For The Week - April 23, 2009

The wholesale price index rose 0.26 per cent in the 12 months to April 11 as against the previous week''s annual rise of 0.18 per cent, government data showed on Thursday. However, the annual inflation rate was 7.95 per cent during the corresponding week of the previous year.

The WPI for primary articles shot up 0.5% to 248.9 (provisional) from 247.6 (provisional) for the last week. In line with this, the index for food articles group grew 0.5% to 246.8 (provisional) from 245.6 (provisional) for the last week due to higher prices of tea (5%), bajra and jowar (3% each), fruit & vegetables (2%) and mutton and maize (1% each). The index for fuel, power, light and lubricants remained unchanged at its previous week''s level of 322.6 (provisional).

India, Spain Indication Operate Agreement - April 23, 2009

In order to boost the bilateral ties, India and Spain signed a trade agreement on April 22, which is expected to give more scope in six crucial sector. The sectors are infrastructure development as well as renewable energy, agriculture, research and development, tourism, and cooperation in Latin America, where Spain has a sphere of influence. However, the focus is on technological exchange as well as tapping each other''s areas of expertise.

The agreement was done in the presence of President Pratibha Patil and Spanish Prime Minister Jose Luis Rodriguez Zapatero, and the respective government and trade representatives. In that business meeting, Ms. Patil noted that the bilateral trade was growing and crossing $ 4.5 billion mark. She also said that the Spanish enterprises are known for executing large-scale infrastructure projects and invited them to make use of the opportunities India presents, in particular through small and medium enterprises.

On the other hand, Ashwani Kumaar, Minister of State for Industrial Policy and Promotion, while addressing Indian mediapersons, described the presidential visit as highly successful. However, three framework agreements were signed in the fields of renewable energy as well as agriculture and tourism.

RBI Progress Resolve Banks Near Lending Charge - April 23, 2009

There is optimism in market that Reserve Bank of India''s cut in repo and reverse repo rates by 25 basis points each will pressurize financial institutions to slash interest rates to provide some relief. Mr Venugopal Dhoot, Chairman of Videocon Industries, said, "Although I welcome this move I expected a rate cut of 100 basis points. RBI must give same directions to other banks."

He said unless the commercial banks reduce interest rates, funding for projects and new ventures will not be easy.

The JSW Steel Vice-Chairman and Managing Director, Mr Sajjan Jindal, said repo and reverse repo rates should have been cut by 50 basis points, to bring down PLR to a single digit rate. "But I feel even 25 basis point cut, will send some signals to commercial banks to lower interest rates," he added.

Mr Pradeep Jain, Chairman, Parsvnath Developers Ltd, said the RBI has been taking all possible steps to infuse additional liquidity in the current cash-strapped market.

Since October last year, RBI has cut its short-term lending rate repo rate by 425 bps and reverse repo rate by 275 bps in different phases. "The RBI must also communicate to the PSU banks and financial institutions to lower the rate of interest further for providing loans to home buyers and companies as well," Mr Jain added.

India To Regain 8 To 9 Per Cent Growth - April 20, 2009

By giving a shy of relief, Indian Prime Minister Manmohan Singh said that the Indian economy should regain its annual growth rate of 8 to 9 per cent due to start in recovery of the world economy from September. "I expect the world economy will recover at least partially by September this year.

And if that happens we can hope to go back to the growth rate of 8 to 9 per cent which has been the growth rate of India in last five years," Singh said.

Singh also added that the growth rate of the country was close to 7.1 per cent in the financial year ending March 31, while in the current fiscal it will be between 6.5 per cent to 7 per cent. He also said that the global economic crisis was caused due to ''mishandling of the financial system by the major developed countries''. ''From financial crisis, it became a credit crisis. It has affected a large number of developed countries,'' he said.