AIDA seeks protection from liquor imports
New Delhi: The All India Distiller's Association (AIDA) has urged the state and union territory governments to levy state excise laws and other relevant labeling requirements to safeguard the domestic industry and monitor entry of imported alcoholic beverages.

In a representation, the association has stated that though liquor imports would give a slight boost to the customs receipts, the states will not gain much since they will receive only a small amount under this head. AIDA says that states instead stand to lose out on their excise revenue due to likely decline in IMFL sale. The association has said that with consumption of scotch whiskies going down in the developed countries there is also a possibility of dumping in the Indian market.

It says safeguards are required for the domestic industry since there is a moratorium on Indian companies expanding liquor production, besides which they are also in the negative list of financial institutions. Further, the association has pointed out that once quantitative restrictions on liquor is removed, imported brands will be available through the regular retail and wholesale vends along with IMFL. The association has urged the Union government to negotiate the export of IMFL liquor to the European Union markets. Indian whiskies are currently not permitted exports since they are molasses-based and not grain-based.
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Company laws to be impacted by new transfer pricing norms
Mumbai: The government’s transfer pricing policy, expected to be a part of the ensuing budget proposals, is likely impact provisions of the companies act, dealing with related party disclosures. As per the recently adopted accounting standards on "related party disclosures", the companies are required to declare all the transactions with the related parties in their audited return to the registrar of companies.
Presently, under the companies' act, a party with equity holding of 20 per cent and above is considered a related party. This is likely to be replaced by the adoption of international norm soon. The international norm for determination of a related party is to consider a party having 25 per cent or more equity in the company as a related party. Any transaction with such a party is considered as a related party transaction and dealt with accordingly.
The Central Board of Direct Taxes had appointed a Transfer Pricing committee to draft a suitable transfer pricing policy for the government. The committee has already submitted its report to the CBDT. India’s transfer pricing policy would be in line with the guidelines of the Organisation for Economic Development and Co-operation, which has 29 countries as members including the US and the UK. Transfer pricing has become a matter of concern with over 60 per cent of the world’s transactions at present taking place between related parties.
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ANZ brings in $330m on SC directive
Mumbai: ANZ Banking Group has brought in nearly $330 million into the country, following a Supreme Court ruling that required Grindlays to deposit Rs 1,522 crore with the court. The money has been parked in an account with State Bank of India. Market sources say the funds were transferred through Standard Chartered Bank, which has acquired the Grindlays operations of ANZ in India and other countries.
Last year Grindlays had sought the Supreme Court permission to deposit with the court funds it had received from the National Housing Bank, following an arbitration award arising out of the 1992 securities scam dispute. The petition was aimed at capping the bank’s contingent liability as the Australian bank would be liable to return the funds with 18 per cent interest, if the final order went against Grindlays.
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Inflation remains static at 8.16%
New Delhi: The annual rate of inflation stood firm at 8.16 per cent during the week ended January 6, despite rise in the prices of manufactured products. The point-to-point inflation rate based on the wholesale price index for all commodities (base year: 1993-94=100) was static during the week but significantly higher compared to 3.55 per cent a year ago.
WPI, however, again rose by 0.1 per cent to 157.8 from the previous week's figure of 157.7 points. The final WPI for all commodities at 158.1 was lower than the provisional level of 158.2 for the week ended November 11. The final inflation rate for the second week of November was 7.48 per cent, which was lower than the provisional level of 7.55 per cent.
Although the inflation rate remained unchanged, the all-India consumer price index for urban non-manual employees fell by one point to 375 during December on account of a sharp fall in vegetable prices. Manufactured products' prices rose by 0.1 per cent, while primary articles and fuel prices witnessed no change as compared to the previous week's levels.
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