ICAI |
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Why are few students Passing the CA Final Exams? |
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| The Chartered Accountancy final examination results touched a record low in the November 2009 attempt. Call it a result of the economic downturn, the Satyam effect or simply turning off the tap by ICAI. The CA exam is clubbed into two groups of three subjects each. Of the 18,502 students who appeared for both groups, only 1,454 passed. That is a pass percentage of 7.86 percent. Of the 8,654 students who appeared for both groups, 2,446 cleared the exam. | |
ICAI recommends stringent action against PwC over Satyam Audit |
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| A high-powered committee of ICAI has recommended stringent action against the Indian arm of global audit firm PricewaterhouseCoopers for delegating audit work in erstwhile Satyam Computer Services to an affiliate firm Lovelock & Lewes. The committee has found the Bangalore office of Price Waterhouse guilty of passing on confidential audit information about erstwhile Satyam to Lovelock & Lewes, said an official familiar with the development. | |
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ICAI may have to pay I-T Penalty of Rs 16 cr |
| Accounting watchdog Institute of Chartered Accountants of India (ICAI), which regulates auditors, is currently facing the prospect of meeting an income tax penalty of Rs 16 crore, after the Income-Tax department withdrew tax exemptions on the institute. It is also understood that the I-T department has written to the institute’s banks to freeze the accounting regulator’s accounts till the institute pays the penalty, according to persons familiar with the development. | |
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ICAI proposes Time Line to punish Erring Members |
| The Institute of Chartered Accountants of India (ICAI), the apex regulator of accountancy profession in the country, will propose a time line to dispose of the complaints that arise against its members. The institute had recently recommended disciplinary action against two of its member chartered accountants after they were charged with professional misconduct while conducting the audit of Global Trust Bank for the year 2000-01. | |
ICAI Campus Placement Programme in March 2010 |
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| The Institute of Chartered Accountants of India is organizing the Campus Placement Programme for newly qualified Chartered Accountants in March, 2010 wherein all the leading companies will participate It is now been more than a decade that the placement programme for newly qualified CA’s has proved to be a beneficial service to the Companies and candidates and is being carried out successfully all over the country by the CMII of The Institute of Chartered Accountants of India, twice a year. | |
Income Tax |
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NRI’s perspective on Personal Tax Reform’s |
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| “Country roads, take me home to the place I belong”- hums Mr. Anuj Kumar Gupta, an IT professional and a NRI residing in the United States. As India emerges in the wake of the global recession as an “extraordinary country” could the Hon’ble Finance Minister take a cue and woo India’s diaspora for the social, political and economic upliftment of the country? | |
Finance Minister may tap Non-Tax Revenue for Raising more Resources |
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| The Finance Minister, Dr T.M. Thomas Isaac, has said he would look to tap non-tax revenue for raising additional resources in the Annual Budget 2010-11. But experts are of the view that he would be required to tinker with the applicable rates under some of its own tax revenue heads – mainly stamp duty and registration, State Excise and motor vehicles tax. | |
Introduction of Advance Pricing Arrangements in Tax Statute |
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| If there is one direct tax reform that multinational enterprises and tax experts yearn for in the upcoming Budget, it is the introduction of the concept of APAs in the tax statute. Having regularly been in the Budget wish-list of multinational enterprises since 2001, when the transfer pricing legislation was enacted, APAs are essentially an advance ruling by which tax authorities agree upfront to the pricing of goods and services between the related parties. | |
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Myths & Misconceptions about Tax |
| We all do tax planning and some of us might also have become well versed with many provisions of the I-T Act that are relevant to us. Still there are many myths and misconceptions about personal tax. These are perceptions that have been formed through the opinions of the near and dear ones and other self-professed experts who themselves have not grasped the provisions of the I-T Act properly. | |
Notice for Submission of Return of Six Assessment Years |
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| Section 153A provides the procedure for completion of assessment where a search is initiated under section 132 or books of account, or other documents or any asset are requisitioned under section 132A after May 31, 2003. In such cases, the Assessing Officer shall issue notice to such person requiring him to furnish, within such period as may be specified in the notice, return of income in respect of six assessment years immediately preceding the assessment year relevant to the previous year… | |
Issue whether MAT Co can provide depreciation as per IT Rules while computing s. 115J book profits referred to Larger Bench |
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| Dynamic Orthopedics vs. CIT (Supreme Court) The assessee, a private limited company, provided for depreciation in its Profit & loss account by adopting the rates specified in the IT Rules and computed its “book profits” u/s 115J on that basis. The AO recomputed the book profits by adopting the depreciation rates as per Schedule XIV to the Companies Act as those were lower than the IT rates. | |
CBEC directs Staff to just bring in the Money |
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| The Central Board of Excise and Customs (CBEC) has directed its field formations to expedite “non-duty-related measures” for augmenting revenue. To this effect, CBEC members held meetings last week. Officials said the priority was revenue maximisation to take care of the fiscal deficit. While duty cuts have dampened indirect tax collection, the emphasis is now on non-duty measures like arrears and duty from existing goods. | |
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Transfer Pricing Regulations play Special Role: FM |
| Mr Mukherjee also sees TP regulations playing a “special role” in ensuring that profits are not shifted from India through cross border transactions. FM also highlighted that tendency for portability of profit will get further accelerated due to enhanced transfer pricing scrutiny by the other jurisdictions. | |
Go for Tax Planning, instead of Tax Saving |
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| Most taxpayers approach their tax-saving investments with the sole objective of saving tax for the current year. As long as investing in the chosen instrument results in getting the tax deduction, their immediate purpose is solved. The instrument of choice is more often than not something recommended by a colleague or promoted heavily in the media. | |
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Filing Tax Returns? Important Check List |
| The financial year 2009-10 is coming to an end but this does not mean one can take things easy in the last few weeks. Several other essentials on the tax front have to be completed. Here are a few areas where one needs to pay attention to ensure that there are fewer headaches in the next financial year. | |
Direct Taxes Code: How will it affect you? |
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| The year 2009 was a landmark year for taxation in India. During this year, the government introduced a landmark Bill – The Direct Taxes Code Bill. It remains to be seen if the finance minister speaks further on the code during his Budget speech on February 26, 2010. If and when it is implemented, it will affect all of us as it will not only alter the tax we pay, but will also impact our investments, borrowings, and expenses. | |
Section 80C of Income Tax Act- FAQ’s |
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| In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include: | |
Tax Implications of Giving Gifts |
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| As per the provisions of the I-T Act, 1961 (the Act), any sum of money received by an individual or a Hindu undivided family in a particular financial year, without consideration , the aggregate value of which exceeds Rs 50,000 is taxable. Effective October 1, 2009, the scope of the taxability provisions in respect of the gifts has been enlarged to include immovable property including land or building or both. | |
Section 14A of I.T.Act: Certain Critical Issues |
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| As per well settled law and also according to canons of taxation only that expenditure which is relatable to taxable income should be deducted in computing the total income. Expenditure which has a bearing on exempt income should not be considered in the computation of total income as otherwise this would result in double advantage to the assessee. It is advisable to compute the total income taking into cognizance the expenditure to be disregarded with respect to exempt income as… | |
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Provident Fund Payments u/s. 43B |
| S.43B of the IT Act provides that certain expenditures, which would otherwise have been allowable as deductions in computing the total income, shall be allowed as deduction only in the year of actual payment of such items by the assessee notwithstanding the method of accounting followed by the assessee. A dispute has arisen as to whether this amendment was applicable to all pending matters, and therefore applied from assessment year ’04-’05 onwards. | |
Sops for IT Cos will continue in Budget hopes Pilot |
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| Minister of State for IT and Telecom Sachin Pilot today expressed hope that the exemptions and benefits given to the Indian IT firms would be extended in the upcoming Budget to help them cope with the slowdown. “It is important that we have a view which will foster investment and create job opportunities. The IT sector has been growing…And so we hope the exemptions and benefits that the IT sector has been getting, there would be some more relief given,” Pilot told reporters here. | |
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Taxation Of Non-Residents |
| TAX INCIDENCE a) Resident & Ordinarily Resident – world income taxable. b) Resident but not Ordinarily Resident – Income earned / received in India or income deemed to accrue in India or income arising abroad out of business controlled in India is taxable. c) Non-Resident – only income earned / received in India and income deemed to accrue or arise in India is taxable. | |
Indirect Tax |
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Custom Notification |
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| Notification No. 11/2010 – Customs (N. T.), Dated 15th Feb, 2010 In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Cus (N. T.), dated, the 3rd August 2001, namely: - | |
Haryana Vat Rate increased from 4% to 5% |
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| Notification dated 15 Feb. , 2010 No. S.O. /H.A.6/2003/S.7/2010. — In exercise of the powers conferred by subclause(iii) of clause (a) sub-section (1) of section 7 of the Haryana Value Added TaxAct, 2003 (Act 6 of 2003), the Governor of Haryana hereby directs that tax payable by aValue Added Tax dealer on sale of goods specified in Schedules ‘C’ from Serial No. 1 to101 shall be calculated at the rate of five per cent with immediate effect. | |
GST |
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GST to help streamline Taxes for Retail Sector |
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| The Budget should focus on growth in the three main sectors: exports, agriculture and manufacturing. Focus on agriculture, infrastructure and services sectors can help the country’s GDP grow by more than 9 per cent. In retail, we expect introduction of the GST, which will help in streamlining taxes. The single-tax regime will benefit the retail sector and bring majority of transactions under the tax net. As a consequence, retail prices of number of items in various categories are likely… | |
Will GST find its way in Budget 2010? |
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| The pledge to implement GST by 1 April 2010 has been deferred for a later date. Therefore, in this budget, the policy makers may take steps to align the existing indirect tax scheme with the proposed GST structure. Central Sales Tax would be the biggest impediment for the proposed GST structure. CST being a non-creditable levy stands as a stumbling block in the smooth flow of credit across the supply chain. | |
Budget |
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How important is Budget for the markets? |
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| Till a few years ago, dealing rooms used to bustle with activity on the day the Union Budget was presented. Dealers and analysts had to report to work early and those who were part of the institutional desk were flooded with calls from Hong Kong and Singapore-based deep pocketed clients. The Budget is still an important event, but few on the street are waiting eagerly for B-day. The primary reason is that the government no longer waits for the Budget to make big bang announcements. | |
Service Tax |
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India Inc urges FM Not to raise Excise, Service Tax |
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| Concerned over the possibility of withdrawal of stimulus packages in the upcoming Budget, India Inc has urged Finance Minister Pranab Mukherjee not to raise excise or service tax till the economic growth rate reaches pre-crisis level of nine per cent. “We are afraid that roll-back of stimulus packages, even partially, could derail the growth process and adversely impact the industrial sector,” FICCI President Hash Pati Singhania told. | |
Audit |
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Extention of last date for Online Submission of form with the O/o C&AG of India |
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| We would like to inform that the last date for online submission of form with the O/o C&AG of India for getting empanelled for appointment as auditors of Government Companies / Corporations for the year 2010-2011 has been extended upto 18th February 2010 (05.30 PM). Follow the below steps to submit the same on line: | |
Auditors for Public Sector Banks must be appointed by RBI |
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| Auditors in public sector banks (PSBs) must be appointed by the Reserve Bank of India (RBI) and the current practice of allowing bank managements to decide on such appointments must be done away with, the new President of the CA Institute, Mr Amarjit Chopra, has said. “From every perspective, the older system was better. We must go back to the system where the RBI decides on the auditors for PSBs.” | |
General |
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All Directors of a Co. cannot be prosecuted for Cheque Bounces: Court |
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| As per section 141 of Negotiable Instruments Act, If the person committing an offence under section 138 of the Negotiable Instruments Act is a company, every person who, at the time the offence was committed, was in charge of and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against & punished accordingly. | |
EPFO subscribers likely to get 8.5% interest on PF deposits |
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| For the sixth year in a row, the EPFO subscribers are likely to get 8.5 per cent interest on their provident fund (PF) deposits for 2010-11. “Maintaining 8.5 per cent interest rate for 2010-11 would leave a surplus of Rs 15.26 crore whereas EPFO would face a deficit of Rs 426.53 crore if it gives a return of 8.75 per cent to subscribers,” an EPFO source said. | |
CFA gets Provisional Permission for Exams in India |
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| The Delhi High Court has given ‘provisional permission’ to the US-based Chartered Financial Analyst (CFA) Institute to register candidates for its exam slated to be held in India this June. “There was a change in the bench hearing our matter at the high court. The court had indicated that if the verdict comes before the June 2010 exams and if it’s not in our favour, we might have to cancel the examination,” explained Ashvin Vibhakar, MD of Asia Pacific Operations, CFA Institute | |
Week 15th to 20th Feb '10 Highlights
February 20th, 2010
