ICAI President Amarjit Chopra’s Message – July 2010
As part of our responsibility to train officials of various departments of the Government and public sector undertakings on the matter of IFRS implementation, meetings were held with the Secretary, Ministry of Urban Development, CMD, Power Finance Corporation, Finance Advisor, Department of Telecommunications, etc. As a matter of follow-up, details of the training programmesworkshops are being sent wherever desired. Also, meetings with officials of various Departments and public-sector…
ICAI Announcement: November ‘10 CA Examinations
The next Professional Competence Examination (PCE), Integrated Professional Competence Examination (IPCE) and Final Examinations of the Institute will be held from 8th November-2010 to 22nd November-2010 at the following centres : Click here to check the Centres in India & Overseas
Exam date, center, fees and last date for PCE, IPCE, CA Final, Management Accountancy Course, IRM, ITL & WTO exam form submission for Exams to be held in Nov ‘10
In pursuance of Regulation 22 of the Chartered Accountants Regulations, 1988, the Council of the Institute of 
Chartered Accountants of India is pleased to notify that the Professional Competence Course (PCC), Integrated Professional Competence Course (IPCC) and Final (Existing and New course) examinations will be held on the dates given below at the following centres provided that sufficient number of candidates offer themselves to appear from each centre.
Khurshid: 33% reservation for women in CA profession
The Corporate Affairs Minister, Mr Salman Khurshid, has called for higher representation of women in the chartered accountancy profession, similar to the 33 per cent reservation for women in Parliament. “If there can be 33 per cent representation for women in Parliament, then why not something like that in the chartered accountancy profession too?,” Mr Khurshid said at the Chartered Accountants’ Day celebrations organised by the Institute of Chartered Accountants of India (ICAI) held here.
Shri Salman Khurshid wants CA’s to Function Like an Army to Conquer New Grounds across the World
Shri Salman Khurshid, Minister of Corporate Affairs, has congratulated the Institute of Chartered Accountants of India (ICAI) for completing 61 years. Addressing the 62nd Foundation Day celebration of the Institute, which falls under the aegis of the Ministry of Corporate Affairs, here at Vigyan Bhawan, Shri Khurshid said that Chartered Accountants have brought great laurels to India and likened them to an efficient army ready to hoist the Indian Flag atop any height.
ICAI wants more regulatory powers to prevent frauds
India’s apex audit and accounting body wants more regulatory powers to prevent frauds such as the one perpetrated by B. Ramalinga Raju, the founder of Satyam Computer Services Ltd. The Institute of Chartered Accountants of India (ICAI), in a report to the ministry of corporate affairs (MCA), has asked that its committees be given the power to summon witnesses and ask for production of records of companies when it is investigating corporate and accounting frauds perpetrated by audit firms.
BCCI may have to pay Rs. 500 crore in taxes
The Board of Control for Cricket in India (BCCI) may have to stump up more than Rs 500 crore in taxes, with tax authorities not in favour of granting exemption requests sought by the board for the past two tax years. The board, widely regarded as one of the richest sporting bodies on the planet, has claimed exemption of Rs 421 crore and Rs 145 crore for assessment years 2008-09 and 2009-10, respectively, under Section 11 of the Income-Tax Act. This Section exempts taxation on charitable…
32 showcause notices to IPL franchises for service tax evasion
After the Income Tax department raising a demand of over Rs 600 crore from the Board of Control for Cricket in India (BCCI), the service tax department, another arm of the finance ministry, has slapped as many as 32 showcause notices on Indian Premier League (IPL) franchises for alleged duty evasion to the tune of nearly Rs 64 crore. The total collection of service tax by the department during the third season of IPL was Rs 29 crore.
I-T narrows down probe into three IPL franchisees
The income-tax department has narrowed down its probe into the Indian Premier League to three franchisees Rajasthan Royals, Kolkata Knight Riders and Kings XI Punjab after initial findings. The department has also written to tax authorities in Mauritius, Bahamas, Cayman and British Virgin Islands seeking details of companies registered there that have invested in these franchisees, as it suspects round-tripping of Indian funds.
Goa considering reducing VAT on petroleum products to ease prices
Goa Chief Minister Digambar Kamat today said the state was examining the possibility of reducing Value Added Tax (VAT) on petroleum products to ease the prices. The Commissioner of Commercial Taxes Department has been asked to examine the possibility of reducing VAT on these products, Kamat said.
ITD releases ITR-5 E-Filing RPU for A.Y. 2010-11 for firms
ITD releases ITR -5 E-Filing Return Preparation utility for Asst Year 2010-11 for firms, AOPs and BOIs E-filing for ITR 5 has commenced. One can E-file AY 2010-11 returns now. Click below to download ITR-5 E-filing Return Preparation Software For A.Y. 2010-11 2010_ITR5_R3
Exchange of expensive gifts during at wedding is liable to taxmen scrutiny
Exchange of expensive gifts and jewellery items during wedding marriage ceremonies are liable to taxmen scrutiny, said a city court. It also said that immovable assets as gifts would require mandatory authentic registration. Additional Sessions Judge Kamini Lau said, “Pricey gifts given to relatives, which do not fall within the definition of Stridhan (gift items received by girl) are taxable in the hands of the recipient.”
FICCI calls for reduction in the rate of DDT to 10%
The Federation of Indian Chambers of Commerce and Industry (FICCI) has called for reduction in the rate of dividend distribution tax (DDT) to 10 per cent from the current 15 per cent. DDT is a tax whose incidence falls at the level of the domestic company declaring, distributing or making the dividend payments.
Unabsorbed depreciation of AYs 1997-98 to 2001-02 not eligible for relief
Till AY 1996-97 unabsorbed depreciation could be set off against income under any head. From AY 1997-98 to 2001-2002 unabsorbed depreciation could be set off only against business income. From AY 2002-2003 onwards unabsorbed depreciation could again be set off against income under any head of income. The question before the Special Bench was whether in AY 2003-04, the unabsorbed depreciation relating to AY 1997-1998 to 1999-2000 could be set off against non-business income.
JetLite asked to deposit Rs 100 cr in Sahara tax dues’ dispute
The Customs, Excise & Service Tax Appellate Tribunal has directed JetLite (formerly Sahara Airlines Ltd) to pay Rs 100 crore (Rs 1 billion) as a pre-deposit on a service tax dispute, pending final settlement. Of the amount, Rs 64 crore is towards service tax arrears and the rest is penalty for non-payment. The amount in dispute, of alleged service tax arrears, is Rs 128 crore (Rs 1.28 billion). It is a tax demand based on the operations of the earlier Air Sahara, before its takeover by…
New features launched by income tax dept for e-filing
The Department has modified the return preparation software to include automatic calculation of tax and interest and this is available for download free of cost. 2. New facility added in “My Account” allows registered E-filers to View the Tax Credit Statement (Form 26AS) to verify if the tax payments made by you or TDS deducted from salary or interest etc are correctly reported to the Department.
All govt services may go online in 28 states
Citizens across 28 Indian states will be able to avail all government services including payment of utility bills and applying for a driving licence, through common internet portals being developed as part of Rs 2,000-crore State Portal Project, senior government officials. The government plans to develop portals for at least 10 states by October 2010, and the rest will follow suit. These state portals will offer services right from getting a birth or death registration certificate, to…
Soon E-filing of Central excise, Service tax
The Institute of Company Secretaries of India (ICSI) has entered into a memorandum of understanding with the Central Board of Excise and Customs (CBEC). This would enable company secretaries to set up Certified Facilitation Centres (CFCs) under the Automation of Central Excise and Service Tax (ACES) project, which will facilitate e-filing of returns and other documents by assessees of Central Excise and Service Tax.
Exporters demand tax refund on diesel
Exporters are demanding refund of taxes on diesel as they fear that subjecting the fuel to global rates would create problems for a power-starved industry, which depends on it for daily operations. Any decision to decontrol diesel prices, even in a phased manner, would affect exporters as they are dependent on diesel due to erratic electricity supply, apex exporters’ body FIEO said.
No Service tax on select operations within airports
From July 1 this year, no service tax will be levied on taxable service of commercial or industrial construction provided wholly within the airport. Similarly, the taxable service of commercial or industrial construction, when provided within the port or other ports for construction, repair, alteration and renovation of wharves, quays, docks, stages, jetties, piers and railways, will also not be levied a service tax from the beginning of July.
CBI asks revenue dept to probe into I-T bodies
The CBI has asked the revenue department of the finance ministry to conduct an inquiry to determine if orders issued by income tax appellate authorities in 75 cases, where private parties benefited at the expense of the government, were in accordance with law. Over investigations spanning two years, CBI sleuths stumbled upon evidence suggesting that certain documents retrieved from the computers of a chartered accountancy firm were created prior to their issuance in the form of orders by…
TDS returns may come under I-T department scrutiny
Entities required to deduct tax while making payments could face a close scrutiny of their returns by the income-tax department as it gears to check payment defaults and boost collections. The I-T department is contemplating scrutinising TDS returns on the lines of income tax and corporate tax returns to ensure that those required to deduct tax at source are complying with the rules and depositing due taxes.
IFRS: India Inc faces taxing issues
As corporate India comes to terms with the complex new system of accounting standards, which it will have to adopt beginning April 1, it is vexed with two related issues that it has no control over – taxation and the companies law. As it is, the kaleidoscope of conflicting perspectives is complex enough to confound even the knowledgeable. For example, when you depreciate different components of an asset over varying useful lives and …
IFRS a huge business opportunity for Indian BPO’s
Come 2014, the US will align its accounting practices with the International Financial Reporting Standards (IFRS) – a system of harmonised standards recommended by the International Accounting Standards Board, an independent body of the International Accounting Standards Committee Foundation. Over 100 countries mandate that companies operating on their soil conduct financial reporting in accordance with IFRS. India is to get on to the IFRS regime in a phased manner beginning next year.
IFRS: The roadmap
To clear certain doubts, the Ministry of Corporate Affairs (MCA) has issued a clarification on the International Financial Reporting Standards (IFRS) roadmap for India. The MCA has confirmed that companies will be required to comply with the converged accounting standard (AS) that are in the process of being notified by the Institute of Chartered Accountants of India (ICAI), and not ‘full’ IFRS.
TRAI raises FDI limit for broadcast carriage services
Telecom Regulatory Authority of India raised the foreign investment limit for broadcast carriage services like direct to home to 74 per cent and that in FM radio to 26 per cent. The investment limit for news and current affairs TV channels has been retained at 26 per cent. The foreign investment limit for local cable operators will be 26 per cent.
SEBI relaxed FII’s reporting requirement
Market regulator SEBI eased the reporting requirement on lending of securities by FIIs for the purpose of short selling. FIIs now have to disclose the information on a weekly basis instead of daily. However, foreign institutional investors (FIIs) issuing participatory notes (PNs) will have to immediately report their short position.
FM meeting state CMs on timely GST rollout
Finance minister Pranab Mukherjee has intensified back-channel contact to states to bring them on a common ground on Goods and Services Tax (GST) – the indirect tax proposal he wants to make a reality by April 2011. After meeting the eastern states’ chief ministers in Patna in May, the FM met chief ministers of western and central states in Mumbai. While the finance ministry said the meetings worked on financial inclusion, sources in one of the state secretariat said GST was the big topic for…
Purchase Tax can be included under GST
Subsuming purchase tax in GST is next on the Centre’s agenda. The finance ministry is hopeful that states will agree to subsume purchase tax in GST after a long drawn battle to keep it out of the purview of the proposed indirect tax regime. “We have to talk to four states – Punjab, Haryana, Madhya Pradesh and Andhra Pradesh – on purchase tax. We are very hopeful that they will agree to subsume it in GST,” a senior finance ministry official told
GST impact on telecommunication sector
The proposed dual GST is an ambitious bid to reform the present indirect tax regime with an aim to introducing a common market for goods and services in India with a uniform countrywide tax structure. Once implemented, the GST will subsume the current set of multiple taxes such as central excise, service tax, state VAT, surcharges and cesses. The first discussion paper on the GST provides a broad framework of the proposed tax.
Changes Direct Taxes Code will bring
The new Direct Taxes Code has been put in the public domain and will most likely be up for debate in the monsoon session of Parliament. There are three major components to the code – personal income taxes, treatment of capital gains, and corporate taxes. But first, some deep congratulations to all those, and especially the UPA government, for daring to change the landscape.
Nasscom seeks continuity of SEZ sops under DTC
Software lobby Nasscom will make a pitch to the government, seeking continuity of tax benefits on special economic zones (SEZs) in the Direct Taxes Code (DTC). It is scheduled to meet the government in this regard. The government said in the DTC paper, while benefits will continue for existing units, it will be retired for units that came up after the DTC is implemented, in March 2011. Nasscom president Som Mittal said that the SEZ policy should be continued to encourage the balanced…
Gems & jewellery industry bodies do not favour proposed DTC
The national body for jewellery trade the All India Gems & Jewellery Trade Federation (GJF) and apex industry body Gems and Jewellery Industry (GJI) have opposed the proposed Direct Taxes Code. Both the industry bodies have also made representations to the Finance Ministry to seek modifications in the DTC.
Banks may continue to offer discounted loans despite base rate regime
Banks will not lend below the minimum or base interest rate as directed by RBI, but may continue to give cheaper credit to some preferred clients as per their discretion under existing agreements. While public sector major State Bank of India has made its intentions partly clear in this regard, industry sources said that some of the top private sector banks might do the same.
New interest rate regime will improve transparency
A new interest rate regime, aimed at improving transparency and disallowing big corporations to get loans at rates below established benchmarks, will kick in from as part of a new rule that requires banks to set their minimum lending rates. Major state-run banks have announced their respective minimum lending rates, or the base rate – the minimum interest a bank has to charge on its loans – between 7-8 percent.
Are Ulips now more investor friendly ?
Investors in unit-linked insurance policies can look forward to some more transparency. But costs, though not front-loaded, will be spread over the lock-in period. More important, insurance agents will now have to sell the product as a long-term one, instead of touting it as a product that will give returns based on the stock market.
Banks will not honour overwritten cheques from December 1
The Reserve Bank of India (RBI) directive to banks, asking them not to honour cheques with overwriting, will come into effect from December 1 instead of the earlier scheduled date of July 1, the apex bank said in its latest circular. The new rule is intended to prevent fraudulent withdrawal of money and expedite clearance of cheques.
India’s stand against any tax on banks has its way at G-20
India’s stand against any tax on banks for funding bailouts was vindicated, with the G-20 leaders agreeing that any such levy should be left to individual nations. Discussing the issue threadbare, the leaders of the developed and fast developing economies declared that though the financial sector should make a fair and substantial contribution towards paying for any bailouts, policy should take into account each nation’s ‘circumstances and options.
