Mumbai, May 7:  A benchmark index for Indian equities markets on Monday clawed back into green after Finance Minister Pranab Mukherjee deferred the general anti-avoidance rules (GAAR) by a year and said the burden of proving tax evasion will lie with the authorities rather than with overseas investors.

In a day of volatile trading the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), after falling 318 points in early trade, closed 81.63 points or 0.48 percent higher at 16,912 from its previous close at 16,831.08.

The Sensex, which opened in the red at 16,620.44 points, touched a high of 16,944.13 and low of 16,513.77 in intra-day trade. The Sensex midcap was up 31.78 points and the smallcap rose by 20.09 points.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange, which slipped below the crucial 5,000 mark, also ended 0.54 per cent or 27.30 points up at 5,114.15.

The sectoral indices rebounded mostly towards the end of the trade.

Banking stocks, which had slumped a week after the Reserve Bank of India (RBI) announced guidelines for implementation of the Basel III norms, rebounded after Mukherjee spoke in parliament.

The BSE banking index closed at 11,374.31, up 90.28 points. The country’s largest lender, State Bank of India (SBI) was up by 1.63 per cent at Rs 2,026.15. Private lender ICICI Bank’s scrip closed 1.65 per cent up at Rs 847.70.

The metals index closed up 166.05 points and the auto index gained 123.02 points.

Stock of major auto companies closed the day higher. Maruti Suzuki was up 2.46 per cent at Rs 1,314.70. And so were Tata Motors, up 2.29 per cent at Rs.308.30, Bajaj Auto, up 0.91 per cent at Rs 1,515.45, and Mahindra and Mahindra, up 0.47 per cent at Rs 691.10.

There were 19 gainers in the 30-scrip Sensex. These included BHEL, up 6.12 per cent at Rs 227.20, L&T, up 4.79 per cent at Rs 1,202.90, DLF, up 4.34 per cent at Rs 189.75, Jindal Steel, up 3.54 per cent at Rs.501.20 and Tata Steel, up 1.86 per cent at Rs 441.60.

Titan Industries and Gitanjali Gems gained 1-2 per cent after the Finance Minister withdrew levy on all branded and non-branded jewellery.

Among major Sensex losers were Reliance Industries, down 1.53 per cent at Rs 715.30, Hero MotoCorp, down 1.21 per cent at Rs 1,956.95, Hindustan Uniliver, down 1.17 per cent at Rs 429.80, HDFC Bank, down 0.86 per cent at Rs 532.15 and Wipro, down 0.71 per cent at Rs 411.95.

Earlier, Asian markets that closed with deep cuts following the political changes in France and Greece weighed on investors.(IANS)

New Delhi, May 7: Giving in to demands from various sections, government on Monday rolled back the one per cent excise duty levy on branded or unbranded precious metal jewellery and deferred implementation of tax avoidance rules on foreign investors but left untouched the proposal to tax Vodafone-type deals retrospectively.

Moving the Finance Bill, 2012 for consideration in the Lok Sabha, Finance Minister Pranab Mukherjee raised the threshold limit for tax collection at source (TCS) by sellers on cash purchases of jewellery to Rs 5 lakh from Rs 2 lakh.

However, the threshold limit for TCS on cash purchase of bullion will be retained at Rs 2 lakh. Bullion will not include any coin or other articles weighing 10 gms or less.

Jewellery traders all over the country had gone on a long strike in protest against the one per cent central excise on branded and unbranded jewellery and delegations had met Mukherjee and Congress President Sonia Gandhi demanding its withdrawal.

In a bid to augment long-term low cost funds from abroad for the infrastructure sector, Mukherjee extended the lower rate of withholding tax of 5 per cent for funding specific sectors to foreign borrowings to all businesses.

This lower rate of tax will also be available for funds raised through long term infrastructure bonds in addition to borrowing under a loan agreement.

On General Anti-Avoidance Rules (GAAR) provisions that have been widely opposed by the foreign institutional investors (FIIs), the Minister announced deferring its implementation by one year. They will now apply to income of financial year 2013-14 and subsequent years.

Touching on another controversial proposal, the Minister held firm on amending the Income Tax Act with retrospective effect to tax capital gains on sale of assets in India through indirect transfers abroad, an apparent reference to Vodafone-type deals. However, he gave an assurance that clarificatory amendments would not override Double Taxation Avoidance Agreement (DTAA). (PTI)

GUWAHATI, May 7: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has suggested variable pricing of diesel linked to end consumers and early creation of fuel-pipeline-grid.

The chamber has recommended graduated steps towards market determined prices for diesel rather than de-regulation of the pricing system in one go.

The Chamber Secretary General, DS Rawat said, as for the pricing, the full market price should be charged for diesel used for moving large cars and luxury buses while the increase should be very moderate for others to begin with.

Smaller farmers should be exempt for sometime and in phases should be increased.  

“It is inequity when the users of luxury vehicles get diesel fuel  at the same subsidized rate as those who drive small and medium sized cars”, ASSOCHAM said.

ASSOCHAM has also suggested that Government should encourage replacing old vehicles, especially trucks, modern trailers with high efficiency engines.

An ASSOCHAM detailed study on diesel use has pointed out that use of high capacity trucks, paving of all major roads with cement and removal of administrative impediments to smooth highway movement of trucks alone could ensure large scale saving on the use of diesel in goods transportation and buses which could also mitigate the higher costs transport bodies would have to incur when diesel prices are aligned with the market price.  The major user of diesel is the transport sector.

Among other users, diesel finds another massive use in the rising number of telecom towers.

Though Government has promoted shared use of telecom towers by linking advances for them from the USO fund to sharing of the facility, some of the operators or would be operators are determined to set up their own towers. With some four lakh towers planned to carry telecom services to rural areas in the coming expansion phase, the use of diesel as fuel for the back up for the structure would make telecom towers as second most largest guzzler of this fuel.

“We plead that the issue of market pricing of fuel should not be seen as a linear imposition to overcome rising international prices of oil but must be presented as a holistic response to the challenge the country faces on the energy front” ASSOCHAM secretary general said. This was stated in a press release.

Government rolls back TDS on property sales

New Delhi, May 7:  The government on Monday rolled back the proposed one percent tax deduction at source (TDS) on transfer of immovable property.

Initiating the debate on the Finance Bill for 2012-13 in the Lok Sabha, Finance Minister Pranab Mukherjee said the government had decided to roll back the levy after receiving various representations.

“The Finance Bill proposes that every transferee of immovable property (other than agricultural land), at the time of making payment for transfer of the property, shall deduct tax at the rate of 1 percent of such sum,” Mukherjee said.

“I have received a number of representations pointing out the additional compliance burden this measure would impose. I, therefore, propose to withdraw this provision for levy of TDS on transfer of immovable property,” he added.

In the budget for financial year 2012-13 presented March 16, the finance minister had proposed to levy TDS on transfer of immovable property, in a bid to tighten screw on corruption and black money in the property markets. (IANS)

By our Staff Reporter

GUWAHATI, May 7: Classteacher learning systems, pioneers of Digital interactive Solutions for K - 12 on Monday announced  the launch of its latest innovation - Classpad in Guwahati.

Classpad facilitates personalized and interactive learning in the classroom and makes education accessible to every student according to his/her individual intelligence level and talent. Using the Classpad, teachers can effortlessly transfer class work to the students’ tablet, share their own content instantly and conduct tests/assessments hassle free. Students can also give undivided attention to class lessons, attempt, assessments and get immediate results to further enhance their learning.

Sameer Buti, Executive director and co-founder of Classteacher learning systems launched the class pad in presence of Debasish Biswas - VP and Head-Institutional Alliances Star TV at Sanskriti - The Gurukul School.