ICAI
ICAI seeks power to punish errant audit firms with prior govt nod
The Institute of Chartered Accountants of India (ICAI) is likely to ask for powers to penalise errant audit firms, but only with prior approval from the government. The ICAI Council, the apex decision-making body that met last week, was divided on the issue of the regulatory agency for auditors getting 
powers to penalise firms as …
Submission of Online Form for Chartered Accountants Examinations, November 2010
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DTC
DTC: Corporates shows thumps-up to 30% cap on tax
With the draft bill for the Direct Taxes Code (DTC) now cleared by the Union Cabinet and set to be tabled before Parliament, it seems almost certain that the DTC deadline will be met. While the revised discussion paper released earlier for public discussion did indicate a calibration of tax rates to make up …
DTC: Income-tax rates could be reduced
The revised discussion paper on DTC had relaxed many of the key proposals of the original draft, leaving taxpayers to infer that the rates would not go down. However, the Central Board of Direct Taxes (CBDT) Chairman, Mr S. S. N. Moorthy, today sought to allay such apprehensions by indicating that rates could be reduced …
Direct Tax Code Bill: EEE to stay, no tax on withdrawal of savings
The Direct Tax Bill has given bonanza to individual savers, as proposed in the revised Direct Tax Code (DTC) circulated in June 2010. However, the bill did not keep the promise of lowering the corporate tax to 25%, but kept it at the current level of 30%. However, for individuals, the bill has proposed to …
DTC: Companies foreign income may not be taxed
If one takes out the 20% minimum alternate tax blow, the gist of the amended Direct Taxes Code maintains status quo. But, sources said, there are also some goodies penciled into the Bill for companies. One of the moves unlikely to be implemented pertains to the anti-tax-avoidance measure adopted by the Ministry of Finance in …
DTC bill approved: IT exemption limit likely to go up
In a move that could leave more money in the hands of people, the government proposed to raise exemption limit on income tax from the present Rs 1.6 lakh to Rs 2 lakh. The Cabinet approved the much-awaited Direct Taxes Code (DTC) Bill, which is likely to be tabled in Parliament during the ongoing Monsoon …
Direct Tax Bill approved by cabinet
Cabinet on Thursday approved a bill to simplify the country’s archaic direct tax laws, law minister Veerappa Moily said. The direct tax code bill is a key reform aimed at widening the tax net and increasing revenues for the federal government.
SEBI’s asks CBDT for Tax saving in ELSS under new DTC regime
Investors tend to choose their tax-saving investments carelessly. They invest in types of investments that are not really suitable for them solely because they’ll save on taxes. Of course, the tax-saving landscape of the country is set for sweeping changes from next year onwards. The new Direct Tax Code severely limits the types of investments …
New DTC to alter Resident Status
As per the provisions of the Income Tax Act, 1961, an individual’s income is taxable based on his residential status in India. Residential status is determined based on the physical stay of the individual in the current financial year (1 April to 31 March) and the preceding 10 financial years. Residential Status An individual is …
Company Law
Govt likely to allow LLP setup for foreigners in sectors open to FDI
The government may soon allow foreigners to set up limited liability partnerships in sectors where 100% foreign investment is allowed, taking a decisive step after much flip-flop over funding guidelines for this form of business organisation, favoured globally for its flexibility. The department of industrial policy and promotion (DIPP), the nodal agency for foreign investment …
Bankers worried on foreign shareholding cap
A suggestion by the Reserve Bank of India (RBI) that foreign shareholding in new private sector banks be capped at 50 per cent with a lock-in of 10 years has led to some consternation among banks in which a majority share is held by overseas investors. The discussion paper has also triggered a debate if …
GST
GST to miss rollout deadline of April 1, 2011
The much awaited new indirect tax regime Goods and Service Tax (GST) is unlikely to be implemented from the scheduled date of April 1, 2011, a top government official said. “In all probability it (the introduction of GST) will miss the deadline,” Revenue Secretary Sunil Mitra told.
Realistic date for the GST rollout: 1 June 2011
The goods and services tax could make a debut in the middle of next year as the government doesn’t seem to be in a mood to delay the ambitious indirect tax reform by another year. Its planned rollout from April next year now looks uncertain due to opposition from BJP-ruled states, which fear an erosion …
RBI
RBI asks clarification on FDI policy changes in aviation sector
The Reserve Bank of India has sought clarification on some specific changes in the new foreign direct investment (FDI) policy and the rationale for the shift before it incorporates them in the foreign exchange rules. In a letter to the Department of Industrial Policy and Promotion (DIPP), the key government body for framing foreign investment …
Service Tax
Service tax on on-going works contracts entered into prior to 01.06.2007
Circular No. 128/10/2010-ST F.No.354/141/2010-TRU Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs (Tax Research Unit) North Block, New Delhi, 24 thAugust, 2010. To Director General (Service Tax), Director General (Central Excise Intelligence) Director General (Audit) Chief Commissioner of Central Excise and Service Tax (All) Commissioner of Central Excise …
Indirect Tax
Govt to extend DEPB policy by six months
In a move that would be certainly be welcomed by the country’s exporters and importers, the government has decided to extend the interest subvention plan on certain sectors while extending the Duty Entitlement Pass Book (DEPB) policy by another six months. The Commerce and Industry Minister Anand Sharma, while reviewing the foreign trade policy 2009-14, …
Income Tax
ITAT: No penalty for genuine delay in return filing
In an order that will help companies and individuals who face penalty proceedings on account of the delay in filing returns, a Delhi bench of the Income-Tax Appellate Tribunal (ITAT) has ruled that penalty cannot be levied if there is a genuine reason for the delay.
Audit
2011-12 challenging for CA’s with IFRS & direct tax code
The financial year 2011-12 is going to be more vibrant, especially for the accounting professionals, with the implementation of Direct Taxes Code (DTC) and the convergence of Indian accounting standards with IFRS (International Financial Reporting Standards), according to Mr G. Ramaswamy, Vice-President of the Institute of Chartered Accountants of India (ICAI).
General
IRDA issues show cause notice to 884 corporate agents for not registering PAN
The Insurance Regulatory and Development Authority (IRDA) told insurance companies to abstain form doing business with 884 corporate agents who had not registered their PAN (permanent account number) with the agency licensing web portal. On 11 July, IRDA had advised all insurers through the agency portal to update the income tax PAN number of their …
Rs 1,000 cr sops for exporters
The government handed out a Rs 1,000-crore ($214 mn) package of fresh incentives to exporters still struggling in an uncertain global market, and said it would review the situation in a few months. “We are not out of the woods yet,” said commerce and industry minister Anand Sharma, while announcing the annual trade policy review. …
TPAs yet to finalise rates on cashless claims
Hospitals and state-owned insurers will take a few more days to reach a deal on resuming cashless mediclaims in all city hospitals. “Third Party Administrators (TPAs) are yet to finalise on the rate structure. We expect them to revert next week,” Max Healthcare Institute MD Pervez Ahmed, mediator for the private hospitals, said. TPAs, or …
