No service tax to be levied on NRI remittances: FinMin

New Delhi, July 10

The Finance Ministry today clarified that no service tax would be levied on NRI remittances from overseas.

The clarification by the Central Board of Excise and Customs (CBEC), which functions under the Finance Ministry, follows concerns over reports that there was a move to levy 12 per cent tax on money sent back home by Indians abroad under the changed service tax regime from July 1.

The CBEC said in a circular “that the matter has been examined and it is clarified that there is no service tax per se on the amount of foreign currency remitted to India from overseas”. In the negative list regime, “service” excludes transaction in money. As the amount of remittance comprises money, the activity does not comprise a “service” and is not subjected to service tax, the circular clarifies.

It further added that “in case any fee or conversion charges are levied for sending such money, they are also not liable to service tax as the person sending the money and the company conducting the remittance are located outside India. Such services are deemed to be provided outside India and thus not liable to service tax”.

It has been further clarified that even the Indian counterpart bank or financial institution which charges the foreign bank for the services provided at the receiving end, is not liable to service tax as the place of provision of such service is outside India.

The clarification will alleviate concerns of NRIs as India is one of the top recipient of remittances ($64 billion in 2011), according to the World Bank data. Given the dire need for dollar at a time when current account deficit is high and Rupee is under pressure, any move to levy service tax on NRI remittances would have been disastrous.

CMs of Punjab and Kerala, which are among the states receiving the largest remittances from NRIs, had taken up the matter with Prime Minister Manmohan Singh.

M Rafeeque Ahmed, president, Federation of Indian Export Organisations (FIEO), said that towards addressing the trade deficit, remittances were the single largest source of unconditional flow of foreign exchange into India, according to estimates by the World Bank. Given the slowdown and declining levels of foreign exchange, service tax could only act as a deterrent to precious incoming foreign exchange, he added.

He said the waiver of service tax on the same would ensure that this stable source of foreign exchange would continue to maintain the delicate balance of payments position of India at this moment of global crisis. 

WHY THE CLARIFICATION  Concerns were being expressed over reports that there was a move to levy 12% tax on money sent back home by Indians abroad under the changed service tax regime from July 1 THE FINAL WORD  The matter has been examined and it is clarified that there is no service tax per se on the amount of foreign currency remitted to India from overseas  As the amount of remittance comprises money, the activity does not comprise a “service” and is not subject to service tax  In case any fee or conversion charges are levied for sending such money, they are also not liable to service tax as the person sending the money and the company conducting the remittance are located outside India

Pray for Dara Singh, says Dharmendra

Mumbai, July 10 (IANS) Actor Dharmendra, who visited hospitalised wrestler-turned-actor Dara Singh whose condition is very critical, asked people to pray for his recovery.
"He is my darling brother. Let's pray for him. Doctors are trying their best. Please pray for him," Dharmendra told reporters after his visit.
Dara Singh, who was hospitalised at the Kokilaben Dhirubhai Ambani Hospital Saturday, continues to be very critical and is now undergoing dialysis, a doctor had said Monday.
"He is still very critical. His condition has not deteriorated and he is holding up, but he requires a high dose of medication.The problem he came up with during hospitalization has now affected hiskidneys. His kidneys are not functioning the way they should, so we have to put him on dialysis," hospital COO Ram Narain told IANS.
Dara Singh, who won the title of Rustam-e-Hind for his wrestling prowess, entered the film world in the 1960s.
He appeared in various films like "Watan Se Door", "Rustom-e-Baghdad", "Sher Dil", "Sikandare- Azam", "Ham Sab Ustaad Hai", "Raaka", "Mera Naam Joker" and "Dharam Karam". He was last seen in a 2007 release "Jab We Met".
He has also done TV serials and is best known for his portrayal of Hanuman in various film and TV adaptions of the Ramayan.

Patiala ex-DC chargesheeted for dereliction of duty

 Vigilance probe ordered into sale of government land
Chandigarh, July 9 - The Punjab Government has chargesheeted former Patiala Deputy Commissioner Vikas Garg for dereliction of duty. The chargesheet has been approved by Chief Minister Parkash Singh Badal, following which a vigilance probe has been ordered into the sale of government land at Patiala while Garg was the Deputy Commissioner there.

DC Vikas Garg



THE CHARGES l He failed to prevent loss to government property l Was instrumental in the sale of prime govt land in Patiala city l The 6,000 sq yrd chunk of land is valued around Rs 250 cr

Garg has been accused of failure to prevent loss to government property. The chargesheet says Garg was instrumental in the sale of prime government land in the heart of Patiala city. The land, measuring about 6,000 sq yards, is valued around Rs 250 crore and houses the offices of the Civil Surgeon, the Education Department etc.

Garg and five other officials of the Patiala Revenue Department were suspended in May for

False Alarm! Air India flight makes emergency landing in Pakistan, passengers safe

Relief aircraft brings back 128 passengers, crew safely to Delhi

New Delhi/Nawabshah Airport, July 9

It’s a journey, which will be etched in their memories forever. As many as 128 passengers and crew of Air India’s Abu Dhabi-Delhi flight, which had to make an emergency landing in Pakistan after a technical snag, are back home safe. They were flown back in a special relief plane which took from Nawabshah airport in Pakistan and landed at the Indira Gandhi International Airport here at 5 pm. An hour later, the “snag-hit” airbus also returned to Delhi.

SCARE IN THE AIR  l Flight AI-940, which was on its way from Abu Dhabi to Delhi, had to land at Nawabshah airport in the Sindh province after pilots noticed a hydraulic failure warning. The plane was carrying 128 passengers and crew members l The pilots saw a warning light in the cockpit and sought permission to land which was granted by the Pakistani authorities l A special plane was sent to bring back the stranded passengers safely

Flight AI-940, which departed from Abu Dhabi at 0015 hours on Monday after originating from Bahrain, had to land at Nawabshah airport in the Sindh province after pilots noticed a hydraulic failure warning.

"The aircraft was flying over Pakistani air space when a pilot saw a warning light in the cockpit and sought permission to land at the nearest airport which was Nawabshah," said an Air India spokesperson.

Pakistan High Commission spokesman Manzoor Ali Memon said Pakistan allowed the Indian aircraft to land at Nawabshah airport. “Passengers were given visas on arrival at the airport. 

They were extended hospitality and support by the Pakistan Government,” he said. MEA Special Secretary Ashok Tomar, who received the passengers in Delhi, praised the Pakistani authorities for their help. “We are happy this situation has ended now and passengers are back. They were treated well by the Pakistan authorities.”
Pakistan's Civil Aviation Authority spokesman Pervez George said the stranded passengers were offered lounge facilities but the pilot declined and did not allow the passengers to come out of the plane, apparently over security concerns.
As per preliminary reports of the engineers flown to Pakistan to check the stranded aircraft, the instrument panel emitted a “false alarm” (pertaining to hydraulic failure) on the computer system.”The cockpit panel emitted false alarm, causing red lights on the control panel to blip. There was nothing wrong with the hydraulics system,” said engineers.
The Civil Aviation Ministry has forwarded an incident report to the PMO. This may be followed by a detailed analysis of by the airline’s permanent investigation board. Since the incident was an “uncommon” occurrence, sources said the civil aviation regulator, DGCA, may even constitute a probe committee.
Backing pilots, experts said they made a right decision. “All warnings lights on the instrument control panel have to be taken seriously. Even the smallest technical glitch in the computer system needs to be rectified before the aircraft takes off again. For each warning light on the instrument panel, there are specified actions in the flight manual-to continue to destination, divert to the most appropriate airfield or land as soon as possible,” said experts.

Maruti Suzuki sales rise 20.30 per cent in June

New Delhi - India's largest carmaker Maruti Suzuki has reported an increase of 20.30 per cent to 96,597units in June 2012, according to a company statement.

The company had sold 80,298 units during June of 2011. Its domestic sales rose 19.30 per cent from 70,020 units in June 2011 to 83,531 units in June 2012. The exports from the company roseby an impressive 27.13 per cent to
13,066 units during the month from 10,278 unitsin the same month of the previous year, according to the company. Passenger car ales in the domestic market rose 23.11 per cent to 70,977 units from 57,653 units in the same month of 2011. However, the sales of models including M800, A-Star, Alto and WagonR fell 10.44 per cent to 34,198 units in June 2011 compared to 38,183 units in June, 2011.

On the other hand, the sales in the compact segment including Estilo, Swift and Ritz modelsrose 39.32 per cent to 22,624 units from 16,239 units during the same month of the previous year. The company's new DZiRE recorded an impressive rise in sales to 13,741 units in June from 2,486 units in the same month of the previous year.

Maruti Suzuki Turns To Africa To Boost Gasoline Car Sales

Maruti Suzuki India Ltd. (MSIL), India’s biggest carmaker by volume, plans to boost exports to Africa and South East Asia to utilize gasoline-engined car capacity and to offset higher import costs after the rupee’s fall.

The unit of Suzuki Motor Corp. (7269) aims to sell more gasoline- engined vehicles abroad as Indians shift preference to cars running on diesel and “mitigate exchange risks,” Chief Financial Officer Ajay Seth said in an interview in New Delhi. The automaker will widen its offerings in countries it already exports to and add new markets, Shashank Srivastava, executive officer for product planning and international markets, said.