IT notices to airline ticketing companies
Mumbai: The income tax department has asked foreign airlines operating from the country to pay their dues to computer reservation companies directly to the department until the tax arrears of these companies are cleared.

The department, invoking section 226 of the Income Tax Act, has warned the airlines that if they fail to comply with the notice, they shall be treated as "persons liable to pay tax with all its added consequences". The airlines have together decided to contest the order. Among the airlines to receive the notice are KLM, Swiss Air, Gulf Air, British Airways and Air-India.

Some of the computer reservation companies are contesting the tax department's demand on the ground that they are not liable to pay any tax in India.

Computer reservation systems offers facilities for passengers and travel agents to book air tickets from anywhere in the world. The important companies are Sabre, Galelio, Amadeus and Abacus. 
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JT Mobile arm for a patch-up with DoT
New Delhi: A subsidiary of JT Mobiles, Evergrowth Telecom, which holds a cellular licence for Punjab, has proposed a conditional withdrawal of its cases in the Delhi high court against the department of telecommunications.

The company has proposed that it will withdraw the cases on condition that DoT will not charge the licence fee of about Rs 258 crore for the period of 636 days during which it was denied permission to operate its services in Punjab, DoT will withdraw its termination notice cancelling inter-connect facility, and grant commercial clearance to its network and restore interconnectivity in cities within the circle.

The company says DoT should treat the 636 days from 12 June 1996 to 10 March 1998, when DoT withdrew the company's cellular licence, as a black-out period. Evergrowth has committed a licence fee of Rs 115 crore and has paid its first year's fee.
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FIPB approves Siemens' proposal
New Delhi: The Foreign Investments Promotion Board has approved the proposal of Siemens AG of Germany to increase its equity stake in the Indian venture from 51 per cent to 60.8 per cent.

The increase in the equity stake will be accomplished through a rights issue in which the German company will subscribe to the unsubscribed portion.

The FIPB also approved the proposals of:

• Acer Computer International to set up a 100 per cent subsidiary in India to make personal computers, desk-top computers and providing customer services,
• Forbes Shipping Corporation's for a joint venture with Brawil Agencies of Malysia,
• AB Electrolux's to increase its paid up capital in Electrolux Kelvinator, and
• Diamond Boart SA of Belgium to set up a wholly-owned subsidiary for marketing and trading diamond and diamond tools.
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RBI panels unified
Mumbai: The Reserve Bank of India has merged the technical advisory committee on the government securities market and the standing committee on money market, both headed by RBI deputy governor Y.V. Reddy.

According to a RBI release, the merged committee -- the technical advisory committee on money and government securities markets -- will now advise the central bank on an ongoing basis on the development of the money and government securities markets.

Mr Reddy will continue to head the committee. Deputy governors S.P. Talwar and Jagdish Capoor and the chief economic advisor in the ministry of finance or his nominee will be permanent invitees of the committee.
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19 investment banks in fray for Hudco securitisation
New Delhi: The Housing and Urban Development Corporation's Rs 1,000 crore securitisation deal, the largest ever to be attempted in India, has attracted 19 investment banks, including seven foreign banks.

Hudco is also to announce another securitisation deal for Rs 4,000 crore, all involving urban infrastructure projects.

The banks include ABN Amro, ANZ Investment Bank, Citibank, DSP Merrill Lynch, HSBC Capital Markets India, Century Finance, JM Morgan Stanley and KPMG India. Among the Indian banks are ICICI, IFCI Financial Services, Kotak Mahindra Finance PNB Capital Services and United Bank of India. 
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