ICAI
ICAI opposition on ‘management’ tag for costing body may delay LLP
The differences between the professional bodies of chartered accountants and cost accountants could delay the amendments to their respective acts, which are necessary for setting up of big and multi-functional professional firms in the country. The Institute of Chartered Accountants of India, or ICAI, has opposed one of the clauses of the amendment that has …
ICAI seek amendment in Chartered Accountants Act, needs 
regulatory powers to cover audit firms
Accounting profession watchdog Institute of Chartered Accountants of India (ICAI) will seek an amendment to the Chartered Accountants Act to expand its regulatory powers to cover audit firms. Currently, the institute has powers to regulate only its members - chartered accountants - but does not have a specific mandate under law to oversee audit firms operating in …
Mention of ICAI allotted firm’s registration number in all reports
Requirement to mention the firm registration number allotted by ICAI in all reports issued, including certificates, by members of the ICAI Attention of the members is invited to the announcement regarding requirement relating to mentioning the firm registration number in the audit reports and resolution passed by the company for appointment of statutory auditors, published …
Income Tax
Form 16/16A should have receipt number
Receipt number to be quoted in Form 1616A will be generated by TIN. Receipt number will be generated for the quarterly TDS TCS statements pertaining to FY 2010-11 and onwards uploaded to TIN. Receipt number generated will be of eight digits (alphabets) and will be applicable only for statements pertaining to FY 2010-11 and …
Exchange Fluctuation loss on pending forward contracts is an “accrued” loss
DCIT vs. Bank of Bahrain & Kuwait (ITAT Mumbai Special Bench) The assessee, a foreign bank carrying on business in India, entered into forward contracts with its clients to buy or sell foreign exchange at an agreed price on a future date. On the date of maturity, the contract was executed which resulted in either …
DTC likely to moderate tax rates
Taxpayers may get relief in terms of tax rates in the proposed Direct Taxes Code, which is likely to replace the 50-year-old Income Tax Act from the next fiscal, a key official indicated. “We are in the process of reducing the rate of tax and DTC will be a good example in that direction,” Central …
IT dept: FIPB approval critical for Hutch-Voda deal taxable
The Income-Tax department told the division bench of the Bombay High Court, hearing the Vodafone tax case, that approval from the Foreign Investment Promotion Board (FIPB) was critical to the $11-billion acquisition of Indian company Hutch Essar by Vodafone. FIPB is a nodal government agency that monitors foreign direct investments into the country. The division …
GST
GST amendment bill unlikely this session
The much-awaited Constitution Amendment Bill on GST is unlikely to be tabled in this session of Parliament in the face of opposition from the BJP, among others. “The bill is not likely in the Monsoon Session,” an official source said in New Delhi. However, they said GST could still be implemented from the target date …
GST Updates by CA Sudhir Halakhandi – 2
18th Aug 2010 Why Not National GST?? We are getting so much News about GST these days and they are related to the projections mainly concerned how the GST will change the National Economic scenario positively and further majority of “trade and Industry” is in the favour of proposed GST . I am following the developments with …
States free to fix their own State GST
The Finance Minister, Mr Pranab Mukherjee, has told the State Finance Ministers that they are free to fix their own State GST rates, but hopes that they would not exercise this freedom after a consensus is reached in the GST Council.
GST updates by CA Sudhir Halakhandi
17TH AUG 2010 How GST will work in Our Country? In India the states and Centre are agree on “Dual GST” in which a single transaction of sale of Goods will be taxed both by the state and centre. Let us try to understand this with the help of an example:- Illustration under proposed GST …
States asks 1 month’s time for GST constitutional amendment
As the government has failed to reach a consensus on goods and service tax (GST) some more BJP ruled states have joined the bandwagon. States like UP and Tamil Nadu are opposing the GST draft amendment.. Asim Dasgupta, chairman of the Empowered Committee of State Finance Ministers has said that states have sought for one …
Govt likely to introduce GST & DTC Bills by month end
The government is planning to introduce Bills on the Direct Taxes Code (DTC) and the Goods and Services Tax (GST) by August 26. The two legislations are likely to be taken up by the Cabinet early next week. The finance ministry is racing against time to introduce the Bills during the ongoing monsoon session, scheduled …
SEBI
SEBI gets suggestion on splitting top posts in cos
Market regulator SEBI has gotten a suggestion for preventing the same individual from holding the position of chairman and managing director simultaneously in listed entities, but apex body of public enterprises SCOPE has opposed such a move, Parliament was informed. “SEBI has received suggestions stating that the position of Chairman and that of Managing Director …
SEBI wants brokers to return unused cash
Market regulator SEBI has asked the broking entities to return the clients’ unutilized cash at the end of every month or quarter, as there are growing concerns over brokers misusing funds lying in investors’ trading accounts. SEBI has also asked them to transfer within a day the funds withdrawn by the investors. The direction from …
Retail investment limit in IPOs to be raised
Retail investors will now get to subscribe more in initial public offers (IPOs). The Securities and Exchange Board of India (SEBI) has proposed to raise the investment limit for retail investors from the current Rs1 lakh to Rs2 lakh. The move is seen as an intermediate step before increasing the limit to Rs5 lakh and …
SEBI & MFs wants equity-linked scheme’s tax benefits to continue in DTC
Market regulator SEBI and mutual fund houses have asked the finance ministry to continue with the tax benefits on equity linked schemes in the Direct Taxes Code, which will replace the existing Income Tax Act. The revised DTC draft, based on which the government is finalising the bill, has proposed to do away with the …
Company Law
Appointment of auditors of government owned companies
The Government has said statutory auditors for Government Companies are appointed by the Comptroller & Auditor General of India (C&AG) in exercise of the powers conferred under section 619(2) of the Companies Act, 1956 as amended vide Companies (Amendment) Act, 2000. For this purpose, a panel of firms of Chartered Accountants is maintained by the …
Govt likely to introduce DIN from July next year
The government proposes to allot an identification number, which would be quoted on every income-tax related communication, from July one next year, Parliament was informed. “The government proposes to allot the Document Identification Number (DIN)… An income tax authority is required to allot a computer generated DIN on or after July 1, 2011, before issue …
Service Tax
Service Tax on commercial training and coaching
Circular No.127092010 – ST F.No.3541192010-TRU Subject: Service tax on commercial training and coaching – clarification whether ‘donation’ is ‘consideration’ – regarding. A representation has been received seeking clarification whether donations and grants-in-aid received from different sources by a charitable Foundation imparting free livelihood training to the poor and marginalized youth, will be treated as ‘consideration’ …
Definition of taxable service for Journey by Air
With effect from July 1, 2010, the definition of taxable service for the taxable service ‘Transportation of Passengers Embarking in India for Journey by Air’ has been amended, i.e. Air tickets taxable except in specified cases The new definition is as follows: “Taxable service”… means any service provided or to be provided to any passenger, …
Indirect Tax
Valuation of Goods cleared in DTA by EOU’s
Circular No 933 23 2010-CX F No 06 062010-CX.1 Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs New Delhi the,16th August 2010 To, All the Chief Commissioners of Central Excise All the Chief Commissioners (LTU) All the Director Generals All the Commissioners & Commissioner (Appeals) of Central …
General
Setting up of National Company Law Tribunal
The Government has informed the Rajya Sabha that the Hon’ble Supreme Court has given its verdict on 11.5.2010 for setting up of National Company Law Tribunal to replace the Company Law Board, Board for Industrial & Financial Reconstruction and High Court jurisdiction relating all matters under the Companies Act. Giving this information in written reply …
Inoperative PF accounts may not get interest credit from 2011-12
Holders of about 3 crore inoperative provident fund accounts may not get any interest on their deposits from the next fiscal if the recommendations of the EPFO’s advisory body, Finance and Investment Committee (FIC), are approved. The FIC has recommended to the EPFO’s apex decision making body, Central Board of Trustees (CBT), that interest should …
Satyam case hearing on August 24
A local court in Hyderabad put the hearing of arguments on framing of charges against former Chairman of Satyam Computers B Ramalinga Raju and nine other accused in the multi-crore accounting scam in the IT firm to August 24. The CBI informed the XXI Additional Chief Metropolitan Magistrate court, specifically on its allegations mentioned against …
