A host of companies from Mumbai, said to be 367 in number and mostly multinational in nature, have moved the recently set up dispute resolution panel (DRP) to resolve issues related to cross-border taxation.
An official in the I-T department said except two, all of the companies have chosen DRP instead of the conventional channel of appeal — that of approaching the commissioner (appeal).
The income-tax law is not very clear on the tax treatment of derivatives except that clause (d) of sub-section (5) to Section 43 says transactions in the derivatives segment in the recognised stock exchanges in India will not be treated as speculative transactions.
The upshot is losses incurred in this segment will not be condemned to a shorter carry forward period of four years against the norm of eight years for set off in future nor would they have to be set off only against speculative profits now or in the future four assessment years.
ICSI has suggested the Ministry of Corporate affairs to include about 10 secretarial standards in the Companies Bill 2009.
The Bill already includes suggestions pertaining to general and board meetings of companies, said Vinayak S Khanvalkar, president, ICSI, at an interactive session. The ICSI has come out with ten secretarial standards – on meetings of the board of directors, general meetings, dividend, registers and records, minutes on transaction of shares and debentures, passing of resolution by circulation, affixing common seal, forfeiture of shares and board meetings.
Indian firms can borrow up to $40 billion this year from overseas markets, with the government moving in to ensure easy availability of funds for the rapidly recovering economy.
The high level co-ordination committee on external commercial borrowings decided in principle to raise the annual indicative ceiling to $40 billion for 2010-11 from $35 billion last year, a government official said.
The Bangalore zonal unit of the Directorate of Revenue Intelligence (DRI) has unearthed the biggest customs duty evasion by any company in India, of the order of Rs 1,450 crore.
Hewlett Packard India Sales Pvt Ltd (HPISPL) has been slapped a show cause notice for this.
DRI Additional Director General R Venkataraman told that HPISPL had undervalued imported products and spares like computers, laptops, notebooks , desktops, spares etc. supplied by its overseas HP entities.
The Government has said that ICAI is the Regulator for Chartered Accountancy profession in India and it is collecting information whether top multi-national firms have flouted norms to provide services in the country. Shri Salman Khurshid told the House that as far as the functioning of multinational accounting firms is concerned the Ministry has collected the following information from the relevant Central Govt. Departments:
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