www.rupeedesk.in
Stocks of major steel companies are seen up next week following announcement of 15% investment allowance in the ensuing financial year. In order to attract new investment and speed up implementation of projects, Finance Minister P. Chidambaram announced deduction of 15% for investments over 1 bln rupees till 2014-15 (Apr-Mar) in his Budget speech Thursday.
I propose to introduce an investment allowance for new high value investments. A company investing 100 crore (1 bln rupees) or more in plant and machinery during the period 1.4.2013 to 31.3.2015 will be entitled to deduct an investment allowance of 15 percent of the investment. This will be in addition to the current rates of depreciation. There will be enormous spill-over benefits to small and medium enterprises.
Clarity on tax residency by the finance minister is also expected to lend support to the stocks in the sector. The finance minister clarified that residents of contracting state will be entitled to Double Taxation Avoidance Agreements benefit and that nothing new was introduced in 2013-14 (Apr-Mar).
Steel companies are also expected to raise product prices for March following the hike in rail freight. On Feb 26, Railway Minister Pawan Kumar Bansal announced an average 5.8% hike in rail freight with effect from Apr 1, linked to fuel price adjustment.
In light of deregulation of the HSD (high speed diesel) oil, Railways' finances need to be rationally insulated and to this end a mechanism to neutralise the impact of fuel prices on operating expenses is required to be put in place," Bansal had said in his Railway Budget for 2013-14.
Stocks of major steel companies are seen up next week following announcement of 15% investment allowance in the ensuing financial year. In order to attract new investment and speed up implementation of projects, Finance Minister P. Chidambaram announced deduction of 15% for investments over 1 bln rupees till 2014-15 (Apr-Mar) in his Budget speech Thursday.
I propose to introduce an investment allowance for new high value investments. A company investing 100 crore (1 bln rupees) or more in plant and machinery during the period 1.4.2013 to 31.3.2015 will be entitled to deduct an investment allowance of 15 percent of the investment. This will be in addition to the current rates of depreciation. There will be enormous spill-over benefits to small and medium enterprises.
Clarity on tax residency by the finance minister is also expected to lend support to the stocks in the sector. The finance minister clarified that residents of contracting state will be entitled to Double Taxation Avoidance Agreements benefit and that nothing new was introduced in 2013-14 (Apr-Mar).
Steel companies are also expected to raise product prices for March following the hike in rail freight. On Feb 26, Railway Minister Pawan Kumar Bansal announced an average 5.8% hike in rail freight with effect from Apr 1, linked to fuel price adjustment.
In light of deregulation of the HSD (high speed diesel) oil, Railways' finances need to be rationally insulated and to this end a mechanism to neutralise the impact of fuel prices on operating expenses is required to be put in place," Bansal had said in his Railway Budget for 2013-14.
