Amid main Opposition party Congress’ protest over big advertisement budget for the last 10 days of the financial year ending March 31, 2010, the state Assembly today cleared the second supplementary budget by a voice vote.

Rawat said the state government had proposed the supplementary budget to earn publicity through media as it was impossible for the government to use the budget to highlight its achievements.

The State Bank of India (Amendment) Bill 2010 contains a provision that will further limit the Reserve Bank of India’s powers on bank auditor appointment. The provision allows SBI to appoint its own statutory auditors.

The Central Government too will have no say in the appointment of statutory auditors of SBI. At present, the RBI appoints auditors for SBI in consultation with the Government.

A Dutch company earning capital gains by selling shares in its Indian subsidiary does not need to pay tax in India if it offloads the shares to a non-resident entity, according to AAR, the quasi-judicial body that decides on tax matters involving overseas firms.

The AAR came out with the order last week after a Dutch company KSPG sought ruling on its proposed divestment of shares in its Indian arm.

An individual is taxed based on his residential status in India. The residential status, in turn, is determined based on the physical stay of an individual in the relevant financial year (tax year) as well as preceding ten tax years.

This is particularly relevant in respect of Indians working overseas or having income/income earning assets outside India.

The Reserve Bank of India’s Reference Rate on
March 11, 2010

for the US Dollar is Rs. 45.47

for Euro is Rs. 62.02

The corresponding rates for the previous day (March 10, 2010) were Rs. 45.41 and Rs. 61.75 respectively.

Approaching IFRS through a converged set of accounting standards, as announced by India, is a highly inconsistent but alternative line of thinking, observes T. P. Ghosh, Professor in the Institute of Management Technology, UAE.

For starters, it may help to know why there is a growing interest among all capital market participants, including the SEC in the US, for accepting a single set of robust accounting standards

Foreign investors may soon be able to set up Limited Liability Partnerships, or LLPs, in India, as the government is all set to allow foreign direct investment in this new form of business organisation.

Initially, FDI up to 49% may be allowed in LLPs in select sectors such as manufacturing, a DIPP official told.



Haryana Finance Minister Captain Ajay Singh Yadav presented his maiden budget in the Assembly with a total outlay of Rs 33,600 crore – Rs 10,500 crore in plan outlay and Rs 23,100 crore in non-plan outlay.

The revenue deficit has been projected at Rs 3,941.81 crore for 2010-11. The fiscal deficit is estimated at 3.59 per cent of GSDP in 2010-11, which is within the prescribed limit of four per cent, the finance minister said.

The Reserve Bank of India’s efforts to activate millions of dormant no-frills accounts is slowly progressing, with Andhra Pradesh and Karnataka Governments agreeing to route all their social security programme payments through these accounts.

The RBI has set a target to reach banking facilities to 6,000 villages with habitants of 2,000 people by 2011 through the ‘business correspondent’ model, using smart cards.

To improve the scrutiny of foreign direct investment (FDI) for sensitive sectors, the Foreign Investment Promotion Board (FIPB) has come out with a new set of norms for applicants.

It would now be mandatory for foreign companies that wish to invest in telecom, defence and security services in India to provide details of all directors.