Contents

PHD
CHAMBER Vol No. XXXX No.3 President Writes ...............................................................5

BULLETIN March 2010

Activities ...........................................................................7

Policy Pronouncements .....................................................19

A monthly news bulletin

Highlights of Budget-2010 :- Service Tax
of PHD Chamber - J.K. Mittal ...................................................................... 20

President
PHD-KAF Cooperation Project .......................................... 24
Shri Ashok Kajaria

Senior Vice President Socio Economic Activities ................................................25

Shri Salil Bhandari

Vice President
Disclaimer : The PHD Chamber is not responsible for
Shri Sandip Somany the views of the authors of the articles.

Editor :
Readers please write to us
Shri S Kapur We welcome feed back from our readers about the articles
Additional Secretary General published in the bulletin. You may also send any other suggestion.
Letters must be brief. Please write to the Editor skkapur@phdcci.in

Editorial Board
Shri P K Sharma On the Cover :
Ms Sushmita Shekhar Top (L-R): Shri Bhupinder Singh Hooda, Chief Minister, Haryana
Ms Rashmi Aggarwal addressing the audience. Also seen are Shri Salil Bhandari, Senior Vice
President, PHD Chamber; Shri R I Singh, Chief Information
Ms Shobha Ahuja Commissioner, Punjab and Shri Rajeev Arora, Managing Director,
Shri Rohit Pandit HSIIDC

Ms Mallika Singh Middle left: (L-R): Shri Rajnish Goenka, Chairman, Membership
Ms Shilpa Gupta Services and Development Committee, PHD Chamber; His Holiness
Shri Shri Ravi Shankar Ji; Shri Ashok Kajaria, President, Smt Varsha
Shri Dalip Sharma Kajaria and Ms Shilpa Gupta, Secretary, MSDC, PHD Chamber
Ms Malti Chandkika
Middle Right: (L-R): Mr. Dale Tasharski, Commercial Counselor,
Shri Rajender Kothari Embassy of United State of America with spouse; Shri Ashok Kajaria,
Brig. Amitabha President and Smt Varsha Kajaria

For Advertising, subscription,
circulation enquiries please e-mail :
phdcci@phdcci.in
Bottom (L-R): Shri Rajnish Goenka, Chaiman MSDC; Shri Ashok Kajaria,
President, Smt Sushma Berlia, Past President, PHD Chamber, H. E. Mr.
Thomas Matussek, Ambassador of Germany, Shri Sanjay Bhatia, Past
President; Shri V. C. Jain, Chairman, Foreign Trade & Investment
Committee, PHD Chamber.

PHD CHAMBER OF COMMERCE AND INDUSTRY

PHD House, 4/2 Siri Institutional Area, August Kranti Marg, New Delhi-16,
Phone : 91-11-26863801-04 Fax : 91-11-26855450, 26863135 Email : phdcci@phdcci.in Website : www.phdcci.in
 PHD Chamber Bulletin • March 2010 5

President Writes
Last month, in the Union Budget for 2010, the Union
Finance Minister has sent out a positive message for
reform that will ensure a stable macro-economic
environment conducive for growth. As expected there
were not many surprises in the Budget proposals. The
provisions go a long way to reflect the Government's
commitment to satisfying the aspirations of the “aam
aadmi” through social sector programmes even while
striving to revive growth in the economy and addressing
the problem of fiscal deficit.

There are issues and concerns which will gradually be

resolved. Inflation continues to ride high and has
touched 9.89 per cent in February. It is anticipated that it
might touch double-digit level next month. RBI's action
of increasing the repo rate signals a tight monetary
framework for some more time. I concur that the private
demand has just picked up; increase in interest rate will
certainly affect the housing and the automotive sectors
which are the key drivers of growth in the economy. For
sure, RBI wants to manage demand-linked inflation
trend. However, to me it sounds like beginning of high
interest rate regime.
Meanwhile the 13th Finance Commission for 2010-15
headed by Shri Kelkar has recommended a model GST
structure that includes features such as single rate, zero
rating of exports, and inclusion of various indirect taxes
at the central and state level in GST ambit, major
rationalization of the exemption structure and also on
the distribution mechanism amongst the States. Both
the Centre and the states should reach consensus to reap
the 'Grand Bargain' by implementing the moderate, just
and fair GST regime. We trust that the government will
give adequate opportunity for public debate before
implementing GST. It is critical yet necessary to build
consensus among all the States on this issue. I
compliment the Government for assuring industry on its
decision to come out with a revised Direct Taxes Code
(DTC) Bill and seeking the views and comments of cross
section of the society at large before finalizing it,
although I understand that it would be for a short period
only. Such a vital policy framework which concerns all
should certainly be well conceived, premeditated and
thoroughly discussed. We at the Chamber will be keen to
contribute constructively to the process.
Another concern which is specific to the National Capital
Territory of Delhi is 33 percent increase in the Minimum
Wages. Some feel that it is a way of sending the industry
out of Delhi, whereas I feel that this could be a softer
measure taken by the government to compensate for the
general price rise but will perhaps result in inflation
which the monetary policy of RBI seeks to contain, as it
will result in demand for higher wages and salaries at all
the levels and in all the sectors.
” As expected there were not many surprises in the
Budget proposals. The provisions go a long way to
reflect the Government's commitment to satisfying the
aspirations of the “aam aadmi” through social sector
programmes even while striving to revive growth in the
economy and addressing the problem of fiscal deficit.
”
Now, I will like to apprise you on some of the
events that Chamber has conducted successfully this
month. We have had Post Budget Interactive Session
on 'Implications of Union Budget 2010' in Delhi and
similar sessions in States of Rajasthan, UP and MP. A
Seminar on Good Governance was conducted in
Chandigarh whereat Shri Bhupinder Singh Hooda,
Chief Minister, Haryana was the Chief Guest. Members
have also had a chance to interact with the German
Ambassador and offcourse the Ambassadors' Meet was
a success. We called upon Shri TKA Nair, Principal
Secretary to Prime Minister. Chamber is also supporting
the initiative taken by His Holiness Shri Shri Rravi
Shankar Ji to clean Yamuna under a citizen action plan
called 'Meri Delli, Meri Yamuna'.
There are many more such events in the pipeline. I am
keen on involving our membership at large in the
activities and the functioning of the Chamber. I look
forward to your views and suggestions. I represent all
the member colleagues and would conclude by
quoting Napoleon Bonaparte. He said that 'the art of
choosing men is not nearly as difficult as the art of
enabling those one has chosen to attain their full
worth'. I wish we endeavour towards a healthier,
optimistic and buoyant framework
around us.
Ashok Kajaria

ACTIVITIES
Railway Budget Viewing
Session at Bhopal
PHD Chamber organised a Railway
Budget viewing session on 24
February 2010 at Bhopal. Shri
Shalabh Sharma, Vice President,
Federation of Madhya Pradesh
Chamber of Commerce and
Industry, Shri Sanjay Khandelwal,
President, Mandideep Industries'
Association; and Shri C B Malpani,
Secretary, Mandideep Industries
Association attended the session.
BTV, Madhya Pradesh, Sahara TV
and ETV covered the session.
Union Budget Viewing Session
and Panel Discussion
Shri Salil Bhandari, Senior Vice President PHD Chamber; Shri M K Zutshi, Former
Chairman, CBEC; Shri Ashok Kajaria, President, PHD Chamber; Prof. Charan D.
Wadhva, Professor Emeritus, CPR; Shri R V Kanoria, Chairman, Economic Affairs
Committee and Shri S Kapur, Additional Secretary General, PHD Chamber
PHD Chamber organised the Union
Budget Viewing Session and Panel
Discussion on 26 February 2010 at
PHD House, New Delhi, with the
purpose of ascertaining the views of
members on the implications of the
Budget on the industry and economy.
The Budget Viewing Session and
Panel Discussion was attended by
Shri Ashok Kajaria, President; Shri
Salil Bhandari, Senior Vice President;
Shri R V Kanoria, Chairman,
Economic Affairs Committee and
Shri J K Mittal, Chairman, Indirect
Taxes Committee, PHD Chamber.
Past Presidents and members of the
Managing Committee of the
Chamber also attended the meeting
and participated in the discussion.
Dr Charan Wadhwa, Professor
Emeritus, Centre for Policy Research
and Shri M K Zutshi, Former
Chairman, CBEC also gave their
expert comments during the Panel
Discussion which followed
immediately after the session.
Shri Ashok Kajaria while welcoming
the Union Budget Proposals said
that the provisions would go a long
way in satisfying the aspirations of
“aam aadmi” even while providing
the requisite thrust on growth and
addressing the problem of fiscal
deficit.
Expressing similar views both Shri R
V Kanoria and Dr Charan Wadhwa
said that the Budget had a number
of positives which would help the
economy to move to a higher
growth trajectory. The favourable
features of the Budget included a
move towards fiscal consolidation,
ensuring fiscal transparency, putting
a restraint on non-plan expenditure,
better targeting of subsidies, accent
on innovation, raising slabs on
personal income tax, among others.
Shri J K Mittal observed that the
Budget was growth orriented,
balanced with many welcome
PHD Chamber Bulletin • March 2010 7
measures like simplification of
income tax returns and automation
of central excise and service tax;
amendment to the Settlement
Commission which ultimately would
reduce litigation and facilitate
quicker recovery; facility of 100%
credit in the first year and also
quarterly payment of duty for SSI
units, which would give lot of relief.
However, it was unanimously agreed
that the rise in MAT from 15% to
18% was a retrograde step which
would adversely impact long term
investments required for industrial
growth. Besides, not enough has
been done to address the problem
of rising food inflation in the
country.
Shri Salil Bhandari gave the
concluding remarks and proposed a
vote of thanks on the occasion.
Union Budget Viewing Session
at Bhopal
PHD Chamber organised Union
Budget Viewing Session on 26
February 2010 at Bhopal. The
session was attended by Shri Sanjay
Khandelwal, President; and Shri C B
Malpani, Secretary, Mandideep
Industries Association, Mandideep
(Raisen); Shri Yogesh Goel, Vice
President, Govindpura Industries
Association; Shri M K Deb,
Chairman, M P Windfarm Ltd; Shri
Chander Lalchandani, Builder,
Bhopal; Shri R K Tripathi, (IPS) Retd.
Additional. Director General of
Police, Bhopal; Shri L S Hardenia,
Economic Journalist, Bhopal; Shri
Zamaluddin, General Manager,
Press Trust of India, Bhopal; Ms
Anurita Pagare, Representative of
UNICEF (Bhopal); Shri Jacob Mani,
CEO, HEG Ltd, Mandideep (Raisen);
Shri D K Mittal, CEO, Vardhman
Fibres, Budni (Sehore).
BTV, a Madhya Pradesh based
news channel, covered the
meeting and participants were
interviewed.
 PHD Chamber Bulletin • March 2010 8

Union Budget Meet PHD Chamber organised another Rajasthan in the Changing Global
at Chandigarh Union Budget Viewing Session on 26 Scenario' on 3rd and 4th March 2010 at
Jaipur. The objective of the workshop
was to sensitize middle level officers
of the Department of Industries,
Government of Rajasthan on the
constraints being faced by SMEs
while conducting their business
operations and to deliberate on the
ways along with the means to
empower these units to be prepared
to face the challenges.

The speakers included Dr. J S Juneja,

Chairman, Global Projects and
Services (P) Ltd and Special Invitee,
Managing Committee, PHD
Chamber; Shri Mukesh Gulati,
Shri R K Saboo, Past President, PHD Chamber commenting on the Union Budget
Executive Director, Foundation of
2010-2011. Also seen are: Shri Vikram Sahgal, Chairman, Chandigarh Committee;
Shri Ashok Khanna, Past President; Shri Satish Bagrodia, Immediate Past President, MSME Clusters, New Delhi; Dr Rajesh
PHD Chamber; Ms. Sudha Sharma, Chief Commissioner, Income Tax (Retd.), Shri Kothari, Director, Poddar Institute of
Amarjit Goyal, Member, Managing Committee and Shri Dalip Sharma, Regional Management, Jaipur; Prof. Rajesh
Director PHD Chamber. Mehratra, Head, Centre for
Management Studies, Jaipur
PHD Chamber organised Union February 2010 at Lucknow. The Meet National University and Ms Malti Jain,
Budget Meet on 26 February 2010 at was attended by various Resident Director, PHD Chamber,
PHD House, Chandigarh. Besides industrialists, economists, chartered Jaipur.
members of the Chamber, members accountants and members of the
of the Bar Associations, Chartered Chamber. The gathering discussed Dr J S Juneja, in his theme
Accountants, Company Secretaries, the positive proposals and concerns presentation on 'Strenghthening
academicians, Tax consultants were arising for the Budget 2010-11. Issues SMEs in Rajasthan', highlighted the
also present on the occasion. Shri like hike in duty on petrol and diesel, need for SMEs to enhance their
Vikram Sahgal, Chairman, increase in MAT, direct tax rates, tax competitiveness in the context of
Chandigarh Committee and Shri reforms etc were discussed. globalisation. He further mentioned
Madhu S Vij, Co-Chairman, that the sector has the capability of
Chandigarh Committee hosted the Workshop on 'Survival of emerging as the engine of growth
lunch on the occasion. The event SMEs in Rajasthan in the for the country.
was widely covered by print and Changing Global Scenario'
electronic media. However, the sector finds itself
at Jaipur
constrained from utilizing its full
Union Budget Viewing Session potential on account of problems
PHD Chamber organised a two day
at Lucknow accruing from lack of finance,
workshop on 'Survival of SMEs in
absence of marketing support, rigid
government policy, paucity of
infrastructure including power,
technological obsolescence, etc. He
made a brief mention about the
various schemes of the Central and
the State Governments meant for
capacity building among MSMEs
and suggested that the government
should change its mindset from that
of a regulator to a facilitator of
business.

(L-R): Dr. B. Joshi, Innovative Management; Shri S M A Rizvi, General Manager (PR&A), Shri Mukesh Gulati, during his
Indo Gulf Fertilizer; Shri Sudhaker Tiwari, Consultant , Indo Gulf Fertilizer; Shri L K presentation on “Growth of SMEs in
Jhunjhunwala, Chairman, K M Sugar Mills Ltd.; Brig. Amaitabha, Resident Director,
Rajasthan Focus on Traditional
PHD Chamber; Shri Pawan Dhawan, Chairman, ICAI, Lucknow; Shri Panakaj Agarwal,
Chartered Accountant and Shri Pankaj Bhargava, Chartered Accountant. sectors,” dwelt upon the role of
 PHD Chamber Bulletin • March 2010 9

budget proposals were balanced

and pro-growth, with many
welcome measures like automation
of Central Excise and Service Tax,
amendment to the Settlement
Commission which will ultimately
reduce litigation and facilitate
quicker tax recovery, facility of 100%
tax credit in the first year and also
quarterly payment of duty for SSI
units, etc.

Shri Manu Verma, Co-Chairman,

Workshop on 'Survival of SMEs in Rajasthan in the Changing Global Scenario’
government institutions and
mentioned that the expectations
from the government had
undergone a change in the post
liberalization period.
Post Budget Interactive
Session on 'Implications of
Union Budget 2010’
Indirect Taxes Committee, PHD
Chamber, made a presentation on
issues relating to excise, custom and
service tax. He also explained some
of the key concerns like service tax
on construction, renting of
immovable property, information

Dr Rajesh Kothari, felt that the SMEs

should look out for opportunities in
the sunrise sector as this is the
segment which offers maximum
potential. He said new opportunities
lie in both basic, essential and critical
sectors. He then introduced the
concept of building brands which
according to him has a high
retention value and makes entry
hassle free. He said that quality,
availability and pricing create a
brand.

Ms Malti Jain, Resident Director, PHD (L-R): Shri V S Wahi, Co-Chairman, Direct Taxes Committee; Shri Ajay Vohra,
Chamber, Jaipur explained that Chairman, Direct Taxes Committee; Shri Gautam Bhattacharya, Joint Secretary,
there has been a change in the CBEC; Shri J K Mittal, Chairman, Indirect Taxes Committee; Shri Y G Parande,
expectations of SME from the Member (Budget & Service Tax), CBEC; Shri Manu Verma, Co-Chairman, Indirect
government. They now seek support Taxes Committee and Shri S Kapur, Additional Secretary General, PHD Chamber
by the way of providing them with
PHD Chamber organised a Post technology software service,
better infrastructure and reducing
Budget Interactive Session on commercial training or coaching
their tax burden.
'Implications of Union Budget 2010' service, nursing homes and multi-
on 5 March 2010 at PHD House, New specialty clinics and copyright. He
Prof. Rajesh Mehrotra, spoke on
Delhi. Senior Government officials - also highlighted proposed changes
facilitating change in management
Shri Y G Parande, Member (Budget & in the law and exemptions related to
and the need to identify short term
Service Tax), CBEC and Shri Gautam indirect taxes.
and long term goals and policies
Bhattacharya, Joint Secretary (TRU),
which would further help SMEs to
CBEC were the key speakers who Shri Y G Parande while addressing
stay ahead.
shared their perspective on the the members, said that the
Budget proposals and responded to government had to do balancing act
The Programme was sponsored
the queries. and had undertaken a calibrated
by the Department of Industries,
rollback of stimulus which was
Government of Rajasthan and
Shri J K Mittal, Chairman, Indirect required. He stated that government
was widely covered by the print
Taxes Committee, PHD Chamber, in has given thrust to certain key
media.
his opening remarks said that the sectors of economy like agro and
 PHD Chamber Bulletin • March 2010
food processing, clean energy,
health care, SSI, etc. Some initiatives
have been taken to pave way for
GST. He further mentioned that the
Revenue Department has always
opined that the renting of property
is liable to taxable service and many
representations were received for
re-forcing it as taxable.
Shri Gautam Bhattacharya
mentioned that double taxation in
federal structure is inevitable. He
explained that the government has
made retrospective amendment in
certain situations, where it is
necessary.
Welcoming the direct tax proposals
for the year 2011-2012, Shri Ajay
Vohra, Chairman, Direct Taxes
Committee, PHD Chamber remarked
that the government needs to put
the revised Direct Tax Code in public
domain for another round of
debate.
He further highlighted the proposals
relating to the conversion of small
companies into limited liability
partnerships and the provisions
relating to charitable trusts /
institutions. He observed that large
impetus has been given to research.
The weighted deduction under
section 35(i)(ii) and (iii) has been
proposed to be enhanced from
125% to 175%. Moreover, the scope
of research has been extended from
scientific research to include
research in social science and
statistical research. He observed that
the amendment proposed in the
computation of exempted profits in
the case of units in Special Economic
Zones (SEZs) with retrospective
effect from 1st April 2006 was a
welcome move.
Shri Vohra highlighted that the
housing sector which has faced
adverse repercussions due to global
recession has been given a boost by
relaxing the time limit for
completion of the pending projects,
from 4 years to 5 years. Further,
ceiling regarding built-up area of
shops and other commercial
10
establishments included in the
housing project is proposed to be
liberalized. Now 3% of the
aggregate built-up area of the
housing project or 5,000 sq. ft.,
whichever is higher can be utilized
for shops and other commercial
establishments in the housing
project to provide basic facilities for
the residents.
He also elaborated on other
provisions such as section 9 relating
to income deemed to accrue or arise
in India to a non-resident; section
40(a)(i)/(ia) relating to the
disallowance of expenditure on
account of non-compliance with
TDS provisions; provisions relating
to taxation of gifts under section 56;
taxation of certain transactions
without or for inadequate
consideration; power of settlement
commission and high court's power
to condone delay.
Shri V S Wahi, Co-Chairman, Direct
Taxes Committee, PHD Chamber
felt that the proposals in the Union
Budget were a pre-cursor to the
Direct Taxes Code. He highlighted
that the widening of the slabs is
indeed a welcome move. The
weighted deduction under section
35(2AB) is being proposed to be
(L-R): Brig. Amitabha, Resident Director, PHD Chamber; Dr A K Singh-Director, Giri
Institute of Development; Dr Arvind Mohan, Senior Economist; and Shri M P Singh,
Manager Business Development, Larsen & Toubro.
enhanced from 150% to 200%.
This will incentivise the corporate
sector to invest in in-house
research.
He highlighted that the Budget has
shut the window for non-resident
service providers like technical or
financial consultants, or certain
other foreign service providers as
the Finance Bill has clarified that
such services rendered by a non-
resident will attract withholding tax
of 10.56%, irrespective of whether
the services were rendered in India
or abroad, if it was paid by or availed
for a business in India.
The Session was followed by lively
discussions. Among the important
issues discussed were those relating
to Minimum Alternate Tax and Direct
Taxes Code, levy of service tax on
copyrights, levy of customs duty on
power sale by SEZ to DTA/NPA,
drawback benefits on furnace oil,
custom duty exemption on solar
lanterns, excise duty on cyanotic, etc.
The Chamber has been advised to
submit a detail memorandum
highlighting the areas where relief
and/or clarifications are desired.
“Post Budget Day Meeting
2010-11” at Lucknow
PHD Chamber organised a Post
Budget Discussion on the Union

Budget 2010-11 on 5 March 2010
at Lucknow. The Session was inter
alia attended by Dr A K Singh,
D i r e c t o r, G i r i I n s t i t u t e o f
Development; Dr Arvind Mohan,
Senior Economist; Shri Pankaj
Agarwal, Past Chairman, ICAI,
L u c k n o w ; D r B J o s h i , C E O,
Innovative Management; Shri S M
A Rizvi, General Manager, Indo Gulf
Fertilizers Ltd; Shri Sudhaker Tiwari,
Consultant, Indo Gulf Fertilizers
Ltd, Shri S K Tiwari, Director, IMRT
and Shri M P Singh, Larsen &
Toubro Ltd.
Seminar on 'Good Governance
2010' at Chandigarh
Shri Salil Bhandari, Senior Vice President, PHD Chamber presenting a bouquet to
Shri Bhupinder Singh Hooda, Chief Minister, Haryana.
PHD Chamber in association with
KPMG organised a Seminar on 'Good
Governance 2010' on 6 March 2010
at PHD House, Chandigarh. Shri
Bhupinder Singh Hooda, Chief
Minister, Haryana was the Chief
Guest on the occasion.
Shri Bhupinder Singh Hooda, in his
address, said that good
governance aims at securing
justice, equality, empowerment,
employment and efficient delivery
of services. He said that good
governance requires a culture of
transparency and accountability.
Government procedures need to be
transparent and timely. He said
that good governance has all the
three aspects of governance viz
judicial, executive and legislative.
PHD Chamber Bulletin • March 2010
Shri Hooda advocated the
continuous regulatory review of
policy since all the policies are
necessarily temporal in nature. He
was of the view that with an
increasingly well informed and
educated citizenry, a constant re-
look at the existing rules and
regulations, and re-engineering of
the same is required with the change
in time. He called for fundamental
rethinking about the government
working.
To bring in transparency, the Chief
Minister informed that the Haryana
Government has taken certain
initiatives like self certification,
comprehensive labour policy,
Investment Promotion Act,
infrastructure development through
PPP mode, land acquisition policy
and R&R Policy amongst others.
Earlier, Shri Salil Bhandari, Senior
Vice President, PHD Chamber, while
welcoming Shri Hooda, said that
good governance is much larger
than mere administrative reforms in
the conventional sense of the term
as it covers much more. Good
governance has much to do with the
ethical grounding of governance
and must be evaluated with
reference to specific norms and
objectives as may be laid down. Shri
Bhandari said that legislative,
executive and administrative actions
must be decentralised as much as
11
possible. None of the decisions must
be taken at levels higher than the
level at which they ought to be
appropriately taken.
Speaking on the occasion, Shri Navin
Agrawal, Executive Director, KPMG
said that good governance aims at
bringing in security, sustainability
and predictability to social, political
and economic affairs. Shri Agrawal
further said that it is important to
have definite time lines.
Shri R I Singh, Chief Information
Commissioner, Punjab, delving into
the issue said that rather than asking
for good governance, the citizens
should put a demand for good
governance by putting up a solid
value system. And the State should
limit its size of operations to
essentials of governance only.
Shri S K Sehgal, Chief General
Manager, State Bank of India,
speaking on 'Challenges before the
Corporate World', stressed that
ethical transactions would lead to
good governance in the corporate
sector. In corporate governance,
there can not be a written code of
conduct, it comes from within.
Summing up, Shri Rajiv Bali,
Chairman, Punjab Committee, PHD
Chamber, said that effective and
transparent communication, easy
access to information, advertisement
campaigns regarding policies and
programmes of the government,
mass contact programmes,
initiatives at the grass root levels, all
inclusive initiatives could certainly
lead to good governance.
Dr Pramod Kumar, Chairman, Punjab
Administrative Reforms Commission;
Shri S S Channy, Principal Secretary,
Industries, Punjab; Shri Akhil Bansal,
COO, KPMG; Shri Vivek Atray, Senior
Advisor, Advisory Services, KPMG
also spoke on the occasion.
Shri Chhatar Singh, Principal Secretary
to Chief Minister, Haryana, Shri Rajeev
Arora, MD, HSIIDC also graced the
occasion. Shri Satish Bagrodia,
Immediate Past President; Shri Ashok
 PHD Chamber Bulletin • March 2010
Khanna, Past President; Shri Yoginder
Dewan, Shri R S Sachdeva, Co-
Chairman, Punjab Committee; Shri
Pranav Gupta, Co-Chairman, Haryana
Committee; Shri N S Aulakh,
Convener, Mohali Zone, PHD
Chamber, also attended the Seminar.
“Panel Budget Discussion
2010-11: Impact on Growth and
Development”
Shri Vishnu Agarwal, Managing Director, Technical Associate addressing the
participants.
PHD Chamber, in association with
Lucknow Management Association
(LMA) organised a Panel Discussion
on “Union Budget 2010-11: Impact
on Growth and Development” on 6
March 2010 at IIPM, Lucknow. The
panelist were Shri M K Mirani, Chief
Commissioner Income Tax; Shri B R
Tripathi, Chief Commissioner, Custom
and Excise; Shri Vishnu Agarwal, Past
Chairman, Uttar Pradesh Committee
and Managing Director of Technical
Associate; Dr Arvind Mohan, noted
economist. Shri Atul Chandra,
Resident Director, Times of India
moderated the discussion .
Dr Arvind Mohan, during the
discussion said that inflation was
not properly addressed in the
Budget. He was infact of the view
felt that the entire exercise was
directionless.
Shri B R Tripathi emphasized on
voluntary compliance by the
industry and requested that all
should pay their taxes on time.
12
Shri M K Mirani, discussed on the
indirect tax proposals and informed
that in the area of income tax
simplified form is being introduced
(saral 2).
Shri Vishnu Agarwal complimented
on the focus being given to
strengthen the rural grant fund, skill
development and drought
management fund.
Seminar on 'Augmenting Firm
Level Competitiveness
through Security and Loss
Prevention’
Shri R.S. Bedi, Managing Committee Member, PHD Chamber; Mr. Motti Levin, CEO,
Maman Group of Israel; Shri P D Aggarwal, Chairman, Industry Affairs Committee,
PHD Chamber; Mr. Erik Kerten, General Manager and Ms Shobha Ahuja, Senior
Economist, PHD Chamber
PHD Chamber organised a Seminar
on 'Augmenting Firm Level
Competitiveness through Security
and Loss Prevention' on 16 March
2010 at PHD House, New Delhi. The
objective of the Seminar was to
educate the participants about the
ways and means through which
organisations can improve their
profitability and reduce costs of
business operations by minimising
or preventing potential losses on a
daily basis. Mr Motti Levin, CEO and
Mr. Erik Kerten, General Manager,
Maman Group Ltd, Israel were the
lead speakers at the Seminar.
During his welcome remarks, Shri P
D Agarwal, Chairman, Industry
Affairs Committee, PHD Chamber
said that the security and the loss
prevention is crucial to minimise
operating costs of business
especially in this era of liberalization
and globalization of the Indian
economy wherein the corporate
sector has started feeling the heat of
competition. He said that concerted
efforts should be made to save costs
accruing through shrinkages,
overstocking & inventories, non-
availability of the right data at the
right time, etc. Managers must
focus on identifying losses at an
early stage, involve members of staff
in a loss prevention strategy,
investigate and deter losses and
maximize the benefits of existing
security systems. The importance of
technology in security and
prevention of loss was highlighted
and possibilities of implementation
of ERP solution were discussed.

Mr Motti Levin and Mr Erik Kerten,
during their presentations provided
a deep insight into loss prevention
strategy and mentioned that it is a
holistic approach to prevent losses
in all areas such as physical security,
finance, marketing & sales,
personnel, data security, insurance,
logistics, supply chain, etc which
would yield maximum results.
According to Mr. Erik Kerten, around
70% of problems are due to in-
house mismanagement and hence
there proper addressal can provide
benefit to the bottom line of a
company. The approach to tackle
the problem of security and loss
prevention should be a preventive
one. Whenever a problem arises, the
entire system should be checked and
not just the area where the incident
has occurred. Both normal and
irregular activities should be clearly
defined and only those activities
which are abnormal should be
checked. Data collation should be
restricted to exact information
required from each department.
Besides, technology should be
adapted to suit the specific needs of
the organisation.
Some of the other aspects that were
highlighted pertained to types of
business losses, loss prevention
principles, areas of investigation,
security technologies, etc. Mr Erik
Kerten further said that the loss
prevention approach should be
adopted as a strategy rather than as
a reaction. The presentations were
followed by the floor participation
wherein several issues relating to
security and loss prevention
approach were raised.
The Seminar was concluded with a
vote of thanks proposed by Shri R S
B e d i , M e m b e r, M a n a g i n g
Committee, PHD Chamber. The
lunch on the occasion was hosted by
P S Bedi Maman Group.
Meeting with Ambassador of
Germany
PHD Chamber organised a meeting
with H E Mr Thomas Matussek,
PHD Chamber Bulletin • March 2010
Shri Ashok Kajaria, President, PHD Chamber presenting a bouquet to H.E. Mr.
Thomas Matussek, Ambassador of Germany.
Ambassador of Germany on 22
February 2010 at PHD House, New
Delhi. He was accompanied by Ms
Karin Stoll, Minister Counsellor and
Head of Economic and Commercial
Department, Embassy of Germany.
In his welcome remarks, Shri Ashok
Kajaria, President, PHD Chamber
said that trade and economic
relations between India and
Germany were based on the
complementarities of interests,
nurtured over a period of time. He
further mentioned that Germany is
India's second largest trading
partner in EU accounting for 15% of
their exports to EU countries.
While addressing the members, the
Ambassador stressed on the
strategic partnership between the
two countries. He said that there is a
huge scope for bilateral co-
operation, particularly in areas like
information technology, research &
development, insurance, education,
healthcare and infrastructure.
Mr Matussek felt that while there
were tremendous opportunities for
cooperation, there was a need to
prioritize the areas for bilateral
cooperation. One important area
was that of vocational training. In
this context, he mentioned that
during the recent visit of the
President of Germany to India, it was
13
decided to establish a centre in Pune
to train the trainers.
The focus of cooperation in
vocational training would be on
training the people at the shop floor
level. He further stressed on the
need for businesses in both
countries to relook at each other,
particularly in SME sector, which was
the backbone of both the
economies.
During the discussion session, issues
relating to visas, need for more
courses in German language, EU
m o n e t a r y p o l i c y, e t c w e r e
deliberated upon.
The vote of thanks was proposed by
Smt. Sushma Berlia, Past President,
PHD Chamber who also sponsored
the lunch.
Meeting with Delegation from
Italy
A four member delegation from the
Veneto region of Italy visited the
Chamber on 23 February 2010 at
PHD House, New Delhi. The
members of the delegation included
the Director of Economic Promotion
and Internationalisation Department,
Regional Government of Veneto
Region and the representatives of
the Chamber of Commerce from the
Veneto Region. Shri S Kapur,
 PHD Chamber Bulletin • March 2010
Additional Secretary General, PHD
Chamber, welcomed the delegation
and apprised them about the
Chamber and its activities.
Informing about the Veneto region,
the delegation members mentioned
that the region was strong in
tourism with about 60 million
people visiting every year. It made a
significant contribution to the world
production of sports shoes,
eyewear, marble, clothing, etc.
Veneto is well established in the
sector of food processing also. It was
felt that there were opportunities for
bilateral cooperation in food
processing, waste management,
nano technology, etc. The delegates
informed that they were having
discussions with the Government of
Maharashtra for the development of
a technology park, a part of which
would be for the nano-technology in
the health sector.
Interactive Session with
Minister for Industries &
Commerce, Government of
J&K on 'Sustainable
Industrialisation of Jammu &
Kashmir’
PHD Chamber organised an
interaction with Shri S S Slathia,
Minister for Industries and
Commerce, Government of J&K on
17 February 2010 at Jawahar Lal
Nehru Udyog Bhawan, Jammu. Shri
B S Dua, Director, Industries and Shri
(L-R): Shri B S Dua, Director Industries, Jammu & Kashmir, Shri S S Slathia, Minister
for Industries & Commerce and Shri Vikrant Kuthiala, Chairman PHD Jammu &
Kashmir Committee
14
R K Razdan, Managing Director,
SICOP were also present.
Shri Vikrant Kuthiala, Chairman, J &
K Committee, PHD Chamber
presented a memorandum to the
Minister regarding various measures
required for removal of bottlenecks,
which interalia included inadequate
road connectivity, creation of grid
stations, need for power sector
reforms and formulation of policy
on skill development to increase the
employability of youth in the State.
Shri Slathia informed that the State
Cabinet has taken a decision to
construct a canal from Thein Dam to
(L-R): Shri Lalit Bhasin; Shri Bharat Mehta; Shri Sushil Kumar Jain; Shri S K
Srivastava; Shri Ravi Wig, Shri Sudhakar Babu and Shri Ashish Wig
Vijaypur. Welcoming the initiative of
the Chamber, the Minister stated that
his team would work tirelessly to
remove all hindrances to facilitate
rapid industrialization of the State
and would, under the leadership of
Chief Minister, make efforts for early
extension of North Eastern Package
to J&K covering the service sectors like
hotels, hospitals, tourism, etc. He also
stated that issues highlighted by PHD
Chamber would receive due
consideration and would be resolved
expeditiously.
Shri Vikrant Kuthiala complimented
the Chief Minister and his Cabinet
colleagues for extension of Central
Excise package.
Seminar on “Applicability of
EPF & MP Act - Members'
Services and Exemption”
PHD Chamber organised a one-day
Seminar on “Applicability of EPF and
MP Act - Members' Services and
Exemption” on 12 March 2010 PHD
House, New Delhi jointly with
Employers' Federation of India and
Pioneer eServices Pvt Ltd as the
knowledge partners. The objective
of the Seminar was to discuss the
difficulties being faced by the
members in implementation of the
EPF & MP Act.
Shri S K Srivastava, Additional
Secretary, Ministry of Labour &
Employment and Central Provident
Fund Commissioner was the Chief
Guest. Shri Sudhakar Babu,
Additional Central Provident Fund
Commissioner as well as Senior
officials from EPFO also addressed the
Technical Sessions of the seminar and
responded to the queries of the
members.

The seminar was also addressed by Shri
Ravi Wig, Past President; Shri R P
Jhalani, Chairman, HR & IR Committee,
PHD Chamber; Shri Lalit Bhasin,
Managing Partner, Bhasin & Company;
Shri Sushil Kumar Jain, Director,
Pioneers eServices Pvt. Ltd. and Shri
Bharat S Mehta, Co-Chairman, HR & IR
Committee, PHD Chamber. The
Seminar was well attended by
around 85 participants. Shri Ashish
Wig, Chairman, Builders' Association
of India (Haryana Chapter) and Co
Chairman Infrastructure Committee,
PHD Chamber hosted the lunch on
the occasion.
Lecture on 'Top Management
Audit on Lean Manufacturing'
by Chairman, Kaizen Institute
(India) Pvt Ltd.
Mr Massaki Imai, Chairman, Kaizen Institute (India) Pvt Ltd delivered a lecture on
'Top Management Audit on Lean Manufacturing'. Also seen Ms. Susmita Shekhar,
DSG; Shri Salil Bhandari, Senior Vice President, PHD Chamber and Shri Ashok Puri,
Director Kaizen Institute (India) Pvt Ltd.
Mr Massaki Imai, Chairman, Kaizen
Institute (India) Pvt Ltd delivered a
lecture on 'Top Management Audit
on Lean Manufacturing' on 19
February 2010 at PHD House, New
Delhi. Mr Masaaki Imai is a
consultant in the field of quality
management and is known as the
“Lean Guru” and the father of
Continuous Improvement (CI). He
has been a pioneer and leader in
spreading the Kaizen philosophy all
over the world.
Mr Imai discussed the Kaizen
PHD Chamber Bulletin • March 2010
techniques in his lecture. The lecture
was well attended. The programme
was followed by a high tea
sponsored by Dr. Lalit Khaitan,
Chairman, Delhi & NCR Committee,
PHD Chamber.
'Meri Dilli Meri Yamuna’
PHD Chamber has offered its
support to the 'Meri Dilli Meri
Yamuna' - Citizen Action Plan, an
initiative taken by the Art of Living
Foundation under the aegis of His
Holliness Shri Shri Ravi Shankar Ji.
The Citizen Action Plan was
inaugurated on16 March 2010 at
Purana Qila, New Delhi.
Shri Salil Bhandari, Senior Vice
President, Shri Rajneesh Goenka,
Chairman, Membership Services and
Development Committee, Shri Lalit
Khaitan, Chairman, Delhi
Committee, Shri Ashok Khanna, Past
President, Shri G S Singhvi, Member,
Managing Committee and Ms.
Shilpa Gupta, Secretary, Membership
Services and Development
Committee, PHD Chamber shared
the stage with His Holiness on the
occasion. It marked the beginning of
a series of events aimed at creating
awareness for the cleaning of river
Yamuna. The event was well
attended by hundreds of
15
enthusiastic supporters showcasing
their concern for the imperative
cause.
Subsequent to the meeting Shri
Ashok Kajaria called upon His
Holiness Sri Sri Ravi Shankar Ji on 18
March 2010 at 6 Sardar Patel Marg,
New Delhi. Smt Kajaria, Mr. Rajnish
Goenka and Ms. Shilpa Gupta also
accompanied him to discussed the
future plan of action.
Ambassadors' Meet
On 19 March 2010, PHD Chamber
organised an annual event, The
Ambassador's Meet, at PHD House,
New Delhi.
The meet provided an excellent
platform to members to build
connections with the foreign
diplomats so as to further their
international linkages. The meet was
well attended by over 50 diplomats
including Ambassadors/ High
Commissioners/Counselors from
countries like Argentina, Armenia,
Belarus, Botswana, Brunei
Darussalam, Cuba, China, Ecuador,
Ethiopia, Gambia, Germany, Ghana,
Hungary, Indonesia, Italy, Kyrgyz
Republic, Pakistan, Papua New
Guinea, Paraguay, Poland, Russia,
Slovak, Suriname, Syria, Tajikistan,
Ta i w a n , U S A , U k r a i n e a n d
Uzbekistan.
Senior Government officials from
various ministries/departments i.e.
C o m m e r c e , H o u s i n g , Po w e r,
Railways, Road Transport, etc.
participated in the meet. Several
other dignitaries including senior
former diplomats and
representatives from international
organizations were also present.
More than 150 members along with
their spouses made the most of this
opportunity to interact with the
diplomatic community.
The event was sponsored by CHL
Ltd., Kajaria Ceramics and RRB
Energy Ltd.
Glimpses of Ambassadors’ Meet 2010
 PHD Chamber Bulletin • March 2010 19

Policy Pronouncements
India imposed 15 anti-dumping duties in 2009-10:
As many as 15 anti-dumping duties have been
imposed in the first 11 months of the current fiscal
with the maximum on Chinese goods, Minister of
State for Commerce and industry Shri Jyotiraditya
Scindia informed the Rajya Sabha. The countries on
which the duty has been imposed include China,
Taiwan, Korea, Thailand, Malaysia, the US and the UK.
The anti-dumping duties imposed are mostly on
products such as fabrics, industrial chemicals, auto
parts, electronic items and machineries. Against
China, the products on which the anti dumping duty
was imposed includes television picture tubes,
ceramic tiles, tyre curing presses, carbon black, radial
tyres and certain stainless steel products.

Government gave a go ahead to the FDI plan of

India Infra Development Fund: The Government
cleared a proposal by India Infrastructure
Development Fund (IIDF), Mauritius, for international
investment in its India fund, which is likely to bring in
foreign direct investment (FDI) of Rs 750 crore in the
country.

Department of Telecommunication not to exclude

the portability charges from telcos' revenue: The
Department of Telecommunications has denied a
request by the Cellular Operators Association of India
(COAI) to let telecom operators exclude the money
they earn by “porting” mobile numbers from their
adjusted gross revenue (AGR).

Dumping duty slapped on stainless steel: India has

imposed anti-dumping duty of up to $2,254 per
tonne on import of certain stainless steel products
from the US, EU, China and other countries.

India may also impose an anti-dumping duty on

import of bus and truck radial tyres to protect domes-
tic manufacturers from surge in cheap shipments
from China and Thailand. The Directorate General of
Antidumping and Allied Duties (DGAD) in the com-
merce ministry has recommended imposition of anti-
dumping duty to the extent of $90 per tyre.

RBI hikes repo and reverse repo rates: The Reserve

Bank of India (RBI) has raised the repo and reverse
repo rates by 25 basis points each with immediate
effect, to 5% and 3.5%, respectively. These are the
rates at which the central bank lends and borrows
overnight money from banks.

........................................................
Contributed by Shilpa Gupta
Sr. Asst. Secretary, PHD Chamber
 PHD Chamber Bulletin • March 2010 18
20
HIGHLIGHTS OF BUDGET-2010 :- SERVICE TAX
[Amendments proposed in the Finance Bill, 2010 & other changes]
The following changes are proposed in the Finance Bill,
2010 [refer clause 75 of the Finance Bill, 2010]:
(A) Service Tax is proposed to be levied on the eight
new services (tax will come into force from the
date to be notified after the enactment of the
Finance Bill, 2010).
The new services are,-
1. Services of promoting, marketing or organizing of
games of chance, including lottery [Section 65 (105)
(zzzzn)].
2. Health services, namely:
health check up undertaken by hospitals or medical
establishments for the employees of business
entities; and health services provided under health
insurance schemes offered by insurance companies.
[Section 65 (105) (zzzzo)]
[The tax on these health services would be payable
only to the extent payment for such medical check
up or preventive care or treatment etc. is made
directly by the business entity or the insurance
company to the hospital or medical establishment].
3. Services provided for maintenance of medical
records of employees of a business entity [Section 65
(105) (zzzzp)].
4. Services of promoting of a 'brand' of goods, services,
events, business entity etc [Section 65 (105) (zzzzq)].
5. Services of permitting commercial use or
exploitation of any event organized by a person or
organization [Section 65 (105) (zzzzr)].
6. Services provided by Electricity Exchanges [Section
65 (105) (zzzzs)].
7. Services related to two types of copyrights namely,
(a) cinematographic films; and (b) sound recording
[Section 65 (105) (zzzzt)].
8. Special services provided by a builder etc. to the
prospective buyers such as providing preferential
location or external or internal development of
complexes on extra charges [Section 65 (105)
(zzzzu)].
(B) Alteration of Expansion in the scope of existing
services (tax will come into force from the date to
be notified after the enactment of the Finance Bill,
2010).
In the case of following existing taxable services, the
scope has been altered either to expand their scope
or to remove certain difficulties that have been faced
during tax implementation. These changes are as
follows,-
*Mr. J.K. Mittal
1. The scope of the taxable service 'Air Passenger
Transport Service' [section 65 (105) (zzzo)] is being
expanded to include domestic journeys, and
international journeys in any class.
2. Presently the taxable service, 'Information
Technology Software Service' [section 65 (105)
(zzzze)] is subjected to tax only in cases where such
IT software is used for furtherance of business or
commerce. The scope of the taxable service is being
expanded to tax such service even if the service
provided is used for purposes other than business or
commerce.
3. An Explanation is being added in the definition of
the taxable service 'Commercial Training or Coaching
Service' [section 65 (105) (zzc)] to clarify that the
term 'commercial' appearing in the relevant
definitions, only means that such training or
coaching is being provided for a consideration,
whether or not such training or coaching is
conducted with a profit motive. This change is being
given retrospective effect from 01.07.2003.
4. In the definition of the taxable service 'Sponsorship
Service' [section 65 (105) (zzzn)], the exclusion
relating to sponsorship pertaining to sports is being
removed.
5. In the definition of the taxable services 'Construction
of Complex service' [section 65 (105) (zzzh)], and
'Commercial or industrial construction service'
[section 65 (105) (zzq)] by way of Explanation, it is
being provided that unless the entire consideration
for the property is paid after the completion of
construction (i.e. after issuance of completion
certificate by the competent authority), the activity
of construction would be deemed to be a taxable
service provided by the builder/promoter/developer
to the prospective buyer and the service tax would
be charged accordingly.
As this amendment is being made by inserting an
Explanation, hence disputes may arise, whether it
will have prospective or retrospective effect.
6. Amendments are being made in the definition of the
taxable service 'Renting of immovable property'
[section 65 (105) (zzzz)] to,-
(i) provide explicitly that the activity of 'renting' itself is
a taxable service. This change is being given
retrospective effect from 01.06.2007; and
(ii) provide that renting of vacant land, where the
agreement or contract between the lessor and lessee
provides for undertaking construction of buildings
or structures on such land for furtherance of
business or commerce during the tenure of the
lease, shall be subjected to service tax

7. The definitions of the taxable services, namely the
'Airport Services' [section 65 (105) (zzm)], the 'Port
Services' [section 65 (105) (zn)] and the 'Other Port
Services' [section 65 (105) (zzl)] are being amended
to provide that,-.
(i) all services provided entirely within the airport/port
premises would fall under these services; and
(ii) an authorization from the airport/port authority
would not be a precondition for taxing these
services.
8. An explanation is being added in the definition of
the taxable service 'Auctioneer's Service' [section 65
(105) (zzzr)] to clarify that the phrase 'auction by
government' means an auction involving sale of
government property by any auctioneer and not
when the government acts as an auctioneer for sale
of the private property.
9. The definition of the taxable service 'Management of
Investment under ULIP Service' [section 65 (105)
(zzzzt)] is being amended to provide that the value
of the taxable service for any year of the operation of
policy shall be the actual amount charged by the
insurer for management of funds under ULIP or the
maximum amount of fund management charges
fixed by the Insurance Regulatory & Development
Authority (IRDA), whichever is higher.
10. Separately provide definition of the term 'business
entity' so as to include an association of persons,
body of individuals, company or firm but to exclude
an individual.
(C) Transport of goods by rail taxable w.e.f.
01.04.2010
Transport of goods by rail (except some essential
goods) is subject to Service tax w.e.f. 01.04.2010.
[Refer: Notification No. 7/2010-ST, dated
27.02.2010 & 8/2010-ST, dated 27.02.2010]
(D) Changes in the other provisions of the Finance
Act, 1994 (changes will come into force from the
date of enactment of the Finance Bill, 2010).
Inserted an explanation in sub-section (3) of Section
73 to clarify that no penalty shall be imposed where
service tax along with interest has been paid before
issuance of notice by the department.
(E) Changes made through Notifications
1. Compulsory e-filing of return those who are paying
service tax in a year Rs. 10 lacs or more (w.e.f.
01.04.2010) [Refer Notification No. 1/2010-ST,
dated 19.02.2010].
2. Compulsory e-payment of taxes through internet
banking those who are paying tax in a year Rs. 10
lacs or more (w.e.f. 01.04.2010), earlier limit was Rs.
50 lacs [Refer Notification No. 1/2010-ST, dated
19.02.2010].
3. Packaged or canned software has been fully
exempted from the levy of Service tax w.e.f.
27.02.2010 provided that duty of excise or custom
PHD Chamber Bulletin • March 2010 21
has been paid [Refer Notification No. 2/2010-ST,
dated 27.02.2010 & Notification No.17/2010-ST,
dated 27.02.2010 + Notification No. 17/2010-CE
dated 27.02.2010 + Notification No. 31/2010
Custom, dated 27.02.2010].
4. Vocational training exemption has been made
limited to the institute or the centre affiliated with
the National Council for Vocational Training (NCVT)
and providing courses in designated trade as
notified in the Apprentice Act, 1961 [Refer
Notification No. 3/2010-ST, dated 27.02.2010].
5. Transport of food grains and pulses by road in a
goods carriage has been fully exempted from the
levy of Service tax w.e.f. 27.02.2010 [Refer
Notification No. 4/2010-ST, dated 27.02.2010].
6. Exemption from service tax for Group Personal
Accident Scheme provided by Govt. of Rajasthan to
its employees, under General Insurance Service is
withdrawn [Refer Notification No. 5/2010-ST, dated
27.02.2010].
7. Exemption for transportation of essential
commodities by Railways w.e.f. 01.04.2010 [Refer
Notification No. 8/2010-ST, dated 27.02.2010].
8. Abatement of 70% of transportation of goods by
Government Railways w.e.f. 01.04.2010 [Refer
Notification No. 9/2010-ST, dated 27.02.2010].
9. Exemption from service tax is provided to the
'Technical Testing and Analysis Service' and 'Technical
Inspection and certification service' provided by
Central and State seed testing laboratories, and
Central and State seed certification agencies [Refer
Notification No.10/2010-ST, dated 27.02.2010].
10. Exemption from service tax is provided to the
transmission of electricity [Refer Notification
No.11/2010-ST, dated 27.02.2010].
11. Exemption from service tax is provided to services
relating to 'Erection, Commissioning or Installation'
of,-
4 Mechanized Food Grain Handling Systems etc.;
4 Equipment for setting up or substantial expansion of
cold storage; and
4 Machinery/equipment for initial setting up or
substantial expansion of units for processing of
agricultural, apiary, horticultural, dairy, poultry,
aquatic, marine or meat products [Notification
No.12/2010-ST, dated 27.02.2010].
12. Exemption from service tax is provided to Indian
news agencies under 'Online Information and
Database Retrieval Service' and 'Business Auxiliary
Service' subject to specified conditions (Refer
Notification No.13/2010-ST, dated 27.02. 2010].
13. Service tax levy on taxes levied by the Government
(including levied by foreign Government) on the
passenger traveling by Air w.e.f. 27.02.2010 is
excluded from taxable value, if shown separately in
invoice [Refer Notification No. 15/2010-ST, dated
27.02.2010].
 PHD Chamber Bulletin • March 2010 22
14. Notification No.1/2002-ST dated 01.03.2002 is
replaced to provide that the construction and
operation of installations, structures and vessels for
the purposes of prospecting or extraction or
production of mineral oils and natural gas in the
Exclusive Economic Zone and the Continental Shelf
of India and supply of any goods connected with
these activities would be within the purview of the
provisions of Chapter V of the Finance Act, 1994.
[Refer Notification No. 14/2010-ST, dated
27.02.2010].
(F) Export of Services-
The taxable service, namely 'Mandap Keeper Service'
has been shifted from the list under rule 3(1) (ii) [i.e.
performance related services] to the list under rule
3(1)(i) [immovable property related services] and
three taxable services, namely 'Chartered
Accountant Services', 'Cost Accountant Services' and
'Company Secretary's Services', have been shifted
from the list under rule 3(1) (ii) [i.e. performance
related services] to the list under rule 3(1)(iii)
[residual category of services];
The condition prescribed under rule (2) (a) i.e. 'such
service is provided from India and used outside India'
has been deleted;
As the Notification No. 1/2002-ST, dated 01.03.2002
is replaced, changes have been made in the
definition of the term 'India' appearing in the Export
of Services Rules, 2005.
[Refer Notification No. 6/2010-ST, dated
27.02.2010].
(G) Import of Services-
The taxable service, namely 'Mandap Keeper Service'
has been shifted from the list under rule 3(1) (ii) [i.e.
performance related services] to the list under rule
3(1)(i) [immovable property related services] and
three taxable services, namely 'Chartered
Accountant Services', 'Cost Accountant Services' and
'Company Secretary's Services', have been shifted
from the list under rule 3(1) (ii) [i.e. performance
related services] to the list under rule 3(1)(iii)
[residual category of services];
As the Notification No. 1/2002-ST, dated 01.03.2002
is replaced, changes have been made in the
definition of the term 'India' appearing in the
....................................................................................................
Taxation of Services (Provided from Outside India &
Received in India) Rules, 2006.
[Refer Notification No. 16/2010-ST, dated
27.02.2010].
(H) Cenvat Credit Rules-\
(a) Amendment in the Notification No. 05/2006-CE
(NT), dated 14.03.2006 with retrospective effect
from 14.03.2006 to remove anomalies and speedy
refund to exporters (refer to clause 73 of the Finance
Bill, 2010 shall be enforced on enactment of the
Finance Bill, 2010). The 'Form A' appended to that
Notification has also been suitably amended
[Refer Notification No. 07/2010-CE (N.T.), dated
27.02.2010].
(b) Central Excise Rules 1944, Cenvat Credit Rules 2001,
Cenvat Credit Rules 2002 and Cenvat Credit Rules
2004 are being amended retrospectively from 1st
September 1996 to 31st March 20008 to provide for
reversal of credit or payment of equivalent amount
attributable to the inputs used in or in relation to the
excisable goods on which no central excise duty is
payable. The provisions would apply only to such
manufacturers where the disputes are pending as on
the day the Finance Bill 2010 is enacted.
[Refer to clause 70, 71 & 72 read with Schedule 6, 7
& 8 of the Finance Bill, 2010, shall be effective on
enactment of the Finance Bill 2010.].
(c) CENVAT Credit Rules are amended to :
(i) allow credit of Cenvat duty paid on Capital Goods in
the year of receipt itself to the manufacturers
eligible to avail of the exemption under notification
no. 8/2003-Central Excise dated 01.03.2003;
(ii) allow accelerated reduction in cenvat credit required
to be reversed on clearance of used computers and
computer peripherals;
(iii) allow availment of credit on jigs, fixtures, moulds
and dies sent to a vendor;
(iv) allow cenvat credit on inputs used in the manufacture
of goods supplied to mega power projects from which
power has been tied up through tariff based
competitive bidding or the project has been awarded
through tariff based competitive bidding
(v) create parity in penal provisions for wrong availment
of credit in respect of goods and services.
*FCA, FCS, LLB, Advocate, Supreme Court & Delhi High Court
Chairman, Indirect Tax Committee, PHD Chamber.
 PHD Chamber Bulletin • March 2010
PHD-KAF Cooperation Project
One day workshop on
“Preparing Bankable Project
Reports”
“Preparing Bankable Project Reports” Programme with Faculty members.
A day long workshop on “Preparing
Bankable Project Reports” was
organised on 10 February 2010 at
PHD House, New Delhi. The
programme aimed at apprising the
participants on development and
designing of a viable project report.
Shri Deepak Tandon, Former
Professor of Finance at IILM Institute
of Higher Education, Gurgaon and
Shri Alok Kumar, CEO, Mind
Xpansion Portfolio Pvt Limited
conducted sessions on
understanding, analysing, planning,
selection, financing and
implementation of a viable project
report parameters and
interpretation; evaluation of a project
report by a bank and institution
parameters and CMA data
interpretation, calculation of M.P.B.F
and term loan lending proposals. A
case study was interpreted with
respect to term loan project
evaluation and working capital
MPBF evaluation by a bank was
discussed in detail to help SMEs in
making a viable project report in
tune with the requirements of the
banks and other lending agencies.
One day workshop on
“Finance for Non-Financial
Managers”
24
One day workshop on “Finance for
Non-Financial Managers” was
organised on 18 February 2010 at
PHD House, New Delhi. The
programme aimed at enabling the
participants to appreciate the key
financial aspects of their role and its
importance to the business. Shri
Deepak Tandon, Former Professor of
Finance at IILM Institute of Higher
Education, Gurgaon; Prof. Pankaj
Upadhyaya, visiting faculty &
Former, H.O.D. of M.B.A. (IB) at
Bharati Vidyapeeth University,
Institute of Management &
Research, New Delhi; Ms Puja
Khanna, Director (Finance),Raveena
International and Dr. J K Batra,
General Manager (Finance &
Accounts), SRS Entertainment &
Participants of “Finance for Non-Financial Managers” programme with Shri C M
Krishna, Honorary Advisor, PHD Chamber and Faculty members
Retail Ltd explained the purpose and
use of accounts; main elements of a
balance sheet and a profit & loss
statement, budgets and budgetary
control and working capital
management strategies.
One day workshop on “New
Product Development &
Launch”
One day workshop on “New Product
Development & Launch” was
organised on 23 February 2010 at
PHD House, New Delhi. The
programme aimed at equipping the
participants with the necessary
knowledge and skills, so as to,
enable them to contribute towards
new product development and
launch. Shri Vijay Nagrani,
Management Consultant and
F o r m e r G e n e r a l M a n a g e r,
Marketing, Glaxo, took sessions on
factors that influence companies to
venture into new products, types of
new products, planning
development and introduction
process for new products, business
analysis and marketability factor etc.
To make the programme interactive
groups were formed who gave
presentations for the development
and the launch of their respective
new products.

Socio – Economic Activities
UNDP-GEF-SGP Project,
Rajasthan
Twenty two SHG Meetings were
organised at different villages in
Alwar District to train villagers on
different schemes of bank, benefits
of plantation, handicrafts, animal
husbandry and different techniques
of agriculture.
PHDRDF- Rotary Projects,
Rajasthan
Twelve SHG meetings and eleven
village committee meetings were
organised to discuss issues relating
to importance of plantation, bank
loans, animal husbandry and
different schemes of agriculture.
Nursery Rising
During last month preparation of
bed, nursing and raising seedlings in
bags were done at different village
nurseries in Lohsal Brahmin,
Shyaluta, Gur ka Khera,
Guwaravyas, Khohdariba, Pal Pur,
Avinashi, Lohiya, Luharabas and
Tilwad in Sikar and Alwar districts of
Rajasthan. More than 45,000
saplings have been prepared in all
the nurseries and 2,500 sapling
plants were distributed among the
villagers and students.
Nursery rising under process
PHD Chamber Bulletin • March 2010
New Water Harvesting Projects
launched in Rajasthan
RDF SAIL water project under construction
1) Construction of a new water
harvesting structure has been
started under UNDP project on 21
February 2010 at village Todi kabas,
Rajgarh, Alwar.
2) Another project has been started
on 21 February, 2010 at village
Gujaron Ki Dhani, Alwar with
financial support from Pranik
Healing Foundation of India.
3) One more project has been
started in the village Shyaluta in
Alwar district with financial support
from Amrit Banaspati on 23
February 2010. The ground breaking
25
was done by the Sarpanch and the
local villagers.
4) SAIL Water Harvesting Project is
also nearing its completion.
Completed Water Harvesting
Projects in Rajasthan
Check dam at village Hathideh,
district Sikar funded by Shri R. P.
Modi and another check dam at
Banjaron ki Dhani village, Alwar
district implemented with financial
assistance from Godfrey Phillips
India Ltd. have been completed on
12 t h and 15 t h February 2010
respectively.
PHDFWF-TI Project on
HIV/AIDS
Two different VCTC camps were
organised at different hotspots on
9th and 23rd February 2010 where
134 women belonging to high risk
groups underwent voluntary blood
testing. Out of them 3 positive cases
w e r e d e t e c t e d . Tw o s m a l l
programmes have been organised
at Drop-In-Centre and around 45
young girls and women participated
who were presented with small
gifts. Two video shows on STD and
HIV have been shown to the HRG
groups at the site office of the
project.
 PHD Chamber Bulletin • March 2010 26

PHDFWF_Health Posts
A free cataract eye check up camp
was organised at Pandav Nagar
Health post on 25 February 2010.
Around 44 people have participated
in the programme and eight positive
cases have been referred to the local
h o s p i t a l s . T h e H e a l t h Po s t s
participated in the Pulse Polio
immunization programme. Around
4,900 children were vaccinated.
Door to door visits were conducted
during the following week to ensure
vaccination of total child population
of the area.
PIF Mobile Medical Van
During one of the Van's regular visits
to village Satheri, Khatoli of Uttar
Pradesh, a young boy (Monu) aged
14 years was found suffering from
cardiac valve disease (Rheumatic
heart disease). The Medical van staff
arranged for his free treatment at
Escorts Hospital, New Delhi with the
help of RIWCT. The boy underwent
the heart surgery and his two valves
have been replaced successfully.
During last month seventeen health
camps have been organised in the
villages of Uttar Pradesh, Haryana,
Rajasthan and slums of Delhi.
Around 2,563 patients were
examined. Free diagnostic care,
clinical services and medicines were
provided to the patients.

***

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