Monday, August 2, 2010
Friday, April 23, 2010
Minimum 25% public holding rule for listed companies next month
THE finance ministry is likely to prescribe next month the minimum 25% public holding for listed companies. Official sources told PTI that a notification to this effect is likely to be issued next month by the ministry. While all future public issues will have to abide by 25% criteria, the existing listed companies may be asked to follow the rules in stages. However, big public issues may be exempted from the minimum 25% public holding criteria as the market may not have appetite for such big issues, official sources said, but refused to divulge what would constitute the big public issues.
There will not be any distinction between private and public sector companies or between sectors for following the minimum public holding criteria, the sources said.
The finance ministry had came out with a draft proposal in 2008 in this regard, while finance minister Pranab Mukherjee, in his Budget speech last year, said that equity holding of non-promoter or public shareholders in all listed entities, whether from public or private sector, needs to be raised.
There are a number of public sector companies in which public holding is below 25%, while in some cases the public holding is only in single digit. For example, non-government holding in MMTC is less than one per cent.
The existing rules, which are in place since 2006, also mandate a minimum 25% public shareholding for the listed companies, but there exist many exemptions. Till 1993, regulations required a minimum 60% public holding, but there were relaxations.
In 1993, the threshold was lowered to 25% and further cut to 10% in 2001, before being raised to 25% in 2006. But all along, there have been flexibilities in the regulations allowing companies to have promoter holding of up to 90% in most cases.
There will not be any distinction between private and public sector companies or between sectors for following the minimum public holding criteria, the sources said.
The finance ministry had came out with a draft proposal in 2008 in this regard, while finance minister Pranab Mukherjee, in his Budget speech last year, said that equity holding of non-promoter or public shareholders in all listed entities, whether from public or private sector, needs to be raised.
There are a number of public sector companies in which public holding is below 25%, while in some cases the public holding is only in single digit. For example, non-government holding in MMTC is less than one per cent.
The existing rules, which are in place since 2006, also mandate a minimum 25% public shareholding for the listed companies, but there exist many exemptions. Till 1993, regulations required a minimum 60% public holding, but there were relaxations.
In 1993, the threshold was lowered to 25% and further cut to 10% in 2001, before being raised to 25% in 2006. But all along, there have been flexibilities in the regulations allowing companies to have promoter holding of up to 90% in most cases.
Govt slaps duty on import of air-conditioning gas from China
India has imposed anti-dumping duty of up to USD 1.63 per kg on the import of refrigeration and air-conditioning gas from China and Japan to protect the domestic industry.The Finance Ministry imposed the duty after the Directorate General of Anti-Dumping and Allied Duties (DGAD) concluded that imports of the gas from the two countries are at very low prices and caused material injury to the domestic industry.
Tuesday, April 6, 2010
Amendments to the Equity Listing Agreement
CIRCULAR
CIR/CFD/DIL/1/2010 April 05, 2010
To
All Stock Exchanges
Dear Sir/Madam,
Sub: Listing Conditions-Amendments to the Equity Listing Agreement
1. As part of a review of the extant policies of disclosure requirements for listed entities
and also to bring more transparency and efficiency in the governance of listed
entities it has been decided to specify certain listing conditions so to amend the
Equity Listing Agreement.
2. The full text of amendments to be effected in the Equity Listing Agreement is given at
Annexure and the brief of the said listing conditions are as under:-
(a) Requirement of auditors’ certificate for accounting treatment under schemes of
arrangement- Amendment to clause 24
(i) It has been observed that in some of the recent schemes of amalgamation /
merger / reconstruction, etc. (schemes) of certain listed entities submitted to the
Hon’ble High Court for approval, there are included details of the accounting
treatment to be given to various items in the process of
amalgamation/merger/reconstruction etc. If this accounting treatment is not in
accordance with the accounting standards specified under section 211(3C) of the
Companies Act, 1956, the resultant financial statements of the entity concerned
will not be in conformity with the accounting standards.
(ii) In view of the above, it has been decided that while submitting the scheme of
amalgamation / merger / reconstruction, etc. (schemes) to the stock exchanges
under clause 24(f) of the Equity Listing Agreement, the listed entities shall also
submit to the concerned stock exchange, an auditors’ certificate to the effect that
the accounting treatment contained in such schemes is in compliance with all the
applicable Accounting Standards.
(b) Timelines for submission and publication of financial results by listed entities-
Amendment to clause 41(I)(c),(d)(e) and 41(VI)(b)
(i) With a view to streamline the submission of financial results by listed entities by
making it uniform and to reduce the timeline for submission of the same to the
stock exchanges, it has been decided that listed entities shall disclose, on standalone
or consolidated basis, their quarterly (audited or un-audited with limited
review), financial results within 45 days of the end of every quarter.
(ii) Also, audited annual results on stand-alone as well as consolidated basis, shall
be disclosed within 60 days from the end of the financial year for those entities
which opt to submit their annual audited results in lieu of the last quarter unaudited
financial results with limited review.
(iii) With regard to publication of consolidated financial results alone, the following,
viz.,(a) Turnover (b) Profit before tax and (c) Profit after tax on a stand-alone
basis shall also be published.
(c) Voluntary adoption of International Financial Reporting Standards (IFRS) by
listed entities having subsidiaries - Insertion of Clause 41(I) (g)
(i) Various regulatory authorities are working on arriving at a roadmap for
implementation of IFRS in India and on the steps to be taken for convergence of
the Indian Accounting Standards with IFRS by April 01, 2011.
(ii) In order to familiarize listed entities with the IFRS requirements within the
aforesaid timeline, it has been decided to provide an option for listed entities
having subsidiaries to submit their consolidated financial results either in
accordance with the accounting standards specified in section 211(3C) of the
Companies Act, 1956, or in accordance with IFRS.
(iii) where the figures for the current period are as per IFRS and the figures for the
corresponding previous period are as per the notified Accounting Standards, a
reconciliation shall be provided in respect of significant differences between the
figures as disclosed as per IFRS and the figures as they would have been if the
notified Accounting Standards were adopted.
(iv) Submission of stand-alone financial results to the stock exchanges shall
continue to be in accordance with the Indian GAAP.
(d) Requirement of a valid peer review certificate for statutory auditors- Insertion
of Clause 41(1) (h)
(i) The Institute of Chartered Accountants of India (ICAI / Institute) has specified a
peer review mechanism to ensure that the quality of services rendered by the
members of the Institute is maintained and enhanced on a continuous basis. Firms
of chartered accountants (proprietary as well as partnership) and members of the
Institute practising individually are required to undergo the peer review process.
(ii) It has been decided that in respect of all listed entities, limited review/statutory
audit reports submitted to the concerned stock exchanges shall be given only by
those auditors who have subjected themselves to the peer review process of ICAI
and who hold a valid certificate issued by the ‘Peer Review Board’ of the said
Institute.
(e) Interim disclosure of Balance Sheet items by listed entities- Insertion of clause
41(V) (h) and Annexure IX
(i) Presently, shareholders have access to the statement of assets and liabilities of
the listed entity and its solvency position only on an annual basis. In the wake of
the recent global financial crisis, the issue of solvency has come to the forefront
from the shareholders’ perspective.
(ii) With a view to have more frequent disclosure of the asset-liability position of
entities, it has been decided that listed entities shall disclose within forty-five days
from the end of the half-year, as a note to their half-yearly financial results, a
statement of assets and liabilities in the specified format.
(f) Modification in formats of limited review report and statutory auditor’s report -
Amendment to Annexures V, VI, VII and VIII to clause 41
(i) Clause 41 of the Listing Agreement provides for periodical disclosure of financial
results by listed entities. Annexures V, VI, VII and VIII to the said Clause provides,
inter-alia, the formats for submission of limited review reports by the statutory
auditors and the formats for reports by the statutory auditors wherein an
unqualified opinion on the financial results is expressed.
The aforesaid formats are hereby modified to make it clear that disclosures
pertaining to details of public shareholding and promoters’ shareholding, including
details of pledged/encumbered shares of promoters/promoter group, contained in
the format have been traced from disclosures made by the management.
(g) Approval of appointment of ‘CFO’ by the Audit Committee- Insertion of Clause
49(II)(D)(12A)
In order to ensure that the CFO has adequate accounting and financial management
expertise to review and certify the financial statements as required under Clause 49 of
the Listing Agreement, it has been decided that the appointment of the CFO is approved
by the Audit Committee before finalization of the same by the management. The Audit
Committee, while approving the appointment, shall assess the qualifications, experience
& background etc. of the candidate.
3. The above listing conditions are specified in exercise of the powers conferred under
Section 11 read with Section 11A of the Securities and Exchange Board of India Act,
1992. The said listing conditions should form part of the existing Listing Agreement of
the stock exchange. A text of amendments in the Listing Agreement is enclosed as
Annexure.
4. Applicability
(i) The provisions of para. 2 (a) above shall be applicable to all schemes of
arrangement / amalgamation / merger / reconstruction / reduction of capital of listed
entities that are being filed before the Hon’ble Courts/Tribunals on or after the date
of this circular.
(ii) The provisions of paras. 2 (b), (c), (e) and (g) shall be applicable with immediate
effect.
(iii) The provisions of para 2 (d) above shall be applicable to all financial statements
submitted by listed entities to the stock exchanges after appointment of auditors for
accounting periods commencing on or after April 01, 2010.
5. All stock exchanges are advised to ensure compliance with this circular and carry out
the amendments in their Listing Agreement as per the Annexure to this circular.
6. This circular is available on SEBI website at www.sebi.gov.in under the categories
“Legal Framework” and “Issues and Listing”.
Yours faithfully,
Sunil Kadam
General Manager
+91-22-26449630
sunilk@sebi.gov.in
Encl: as above
Annexure
Amendments to Listing Agreement
1. In clause 24 of the Equity Listing Agreement, after sub-clause (h), the following subclause
shall be inserted,-
“(i) The company agrees that, while filing for approval any draft Scheme of
amalgamation / merger / reconstruction, etc. with the stock exchange under subclause
(f), it shall also file an auditors’ certificate to the effect that the accounting
treatment contained in the scheme is in compliance with all the Accounting
Standards specified by the Central Government in Section 211(3C) of the
Companies Act, 1956.
Provided that in case of companies where the respective sectoral regulatory
authorities have prescribed norms for accounting treatment of items in the
financial statements contained in the scheme, the requirements of the
regulatory authorities shall prevail.
Explanation – For this purpose, mere disclosure of deviations in accounting
treatments as provided in para 42 of AS-14 shall not be deemed as compliance
with the above”.
2. In clause 41,
(i) in sub-clause(I),
(a) in item (c); for the words “one month” and for the words “two months”,
wherever they appear the words “forty-five days” shall be substituted;
(b) in item (d), for the words “one month”, “ two months”, wherever they
appear, the words “forty-five days” and for the words “three months”,
wherever they appear, the words “sixty days” shall be substituted;
(c) in item (e)(i), for the words “one month” and for words “two months”,
wherever they appear, the words “forty-five days” shall be substituted;
(d) in item (e)(ii), after the words “to the stock exchange” the words “within
sixty days from the end of the financial year” shall be inserted;
(e) after item (e), the following item shall be inserted:-
“(ea) As a part of its audited or unaudited financial results for the halfyear,
the company shall also submit by way of a note, a statement of
assets and liabilities as at the end of the half-year.
(eaa) However, when a company opts to submit un-audited financial
results for the last quarter of the financial year, it shall, submit a
statement of assets and liabilities as at the end of the financial year only
along with the audited financial results for the entire financial year, as
soon as they are approved by the Board.
(f) after item (f), the following items shall be inserted, namely:-
“(g) In case the company has subsidiaries and it opts to submit
consolidated financial results as mentioned at (e) above, it may submit
the consolidated financials as per the International Financial Reporting
Standards (IFRS) notified by the International Accounting Standards
Board.
(h)The company shall ensure that the limited review/audit reports
submitted to the stock exchanges on a quarterly/annual basis shall be
given only by an auditor who has subjected himself to the peer review
process of Institute of Chartered Accountants of India (ICAI) and holds
a valid certificate issued by the Peer Review Board of the ICAI.”
(ii) in sub-clause (V), after item (g), the following item shall be inserted, namely:-
“(h) Disclosure of Balance Sheet items as per items (ea) shall be in the format
specified in Annexure IX drawn from Schedule VI of the Companies Act, or its
equivalent formats in other statutes, as applicable.”
(iii) in sub- clause (VI), in item (b), for the words “only consolidated financial results”,
the words “consolidated financial results alongwith the following items on a
stand-alone basis, as a foot note:- (a)Turnover (b)Profit before tax (c)Profit after
tax”, shall be substituted;
(iv) in sub-clause (VI) item (b), after para (iii), the following sub-para (iv) shall be
inserted, namely:-
“(iv) Companies that are required to prepare consolidated financial results for the
first time at the end of a financial year shall exercise the option mentioned at (b)
above in respect of the quarter during the financial year in which they first acquire
the subsidiary.”
(v) in Annexure V, after the words “for the period ended……” the words “except for
the disclosures regarding ‘Public Shareholding’ and ‘Promoter and Promoter
Group Shareholding’ which have been traced from disclosures made by the
management and have not been audited by us” shall be inserted;
(vi) in Annexure VI, after the words “for the period ended……” the words “except
for the disclosures regarding ‘Public Shareholding’ and ‘Promoter and Promoter
Group Shareholding’ which have been traced from disclosures made by the
management and have not been audited by us” shall be inserted;
(vii) in Annexure VII(both parts), after the words “pursuant to the requirement of
clause 41 of the Listing Agreement” the words “except for the disclosures
regarding ‘Public Shareholding’ and ‘Promoter and Promoter Group
Shareholding’ which have been traced from disclosures made by the
management and have not been audited by us” shall be inserted;
(viii) in Annexure VIII(both parts), after the words “pursuant to the requirement of
clause 41 of the Listing Agreement” the words “except for the disclosures
regarding ‘Public Shareholding’ and ‘Promoter and Promoter Group
Shareholding’ which have been traced from disclosures made by the
management and have not been audited by us” shall be inserted;
(ix) after Annexure VIII, the following Annexure shall be inserted:-
“Annexure IX
(Rs. in lakhs)
Particulars 6 months ended
(dd/mm/yyyy)
Corresponding 6 months
ended in the previous year
(dd/mm/yyyy)
Audited/
Unaudited
Audited/
Unaudited
SHAREHOLDERS’ FUNDS:
(a) Capital
(b) Reserves and Surplus
LOAN FUNDS
FIXED ASSETS
INVESTMENTS
CURRENT ASSETS, LOANS
AND ADVANCES
(a) Inventories
(b) Sundry Debtors
(c) Cash and Bank balances
(d) Other current assets
(e) Loans and Advances
Less: Current Liabilities and
Provisions
(a) Liabilities
(b) Provisions
MISCELLANEOUS
EXPENDITURE (NOT
WRITTEN OFF OR
ADJUSTED)
PROFIT AND LOSS ACCOUNT
TOTAL
3. In clause 49, sub-clause II, para D, after item 12, the following shall be inserted:-
“12A. Approval of appointment of CFO (i.e., the whole-time Finance Director or any
other person heading the finance function or discharging that function) after assessing
the qualifications, experience & background, etc. of the candidate.”
*************
CIR/CFD/DIL/1/2010 April 05, 2010
To
All Stock Exchanges
Dear Sir/Madam,
Sub: Listing Conditions-Amendments to the Equity Listing Agreement
1. As part of a review of the extant policies of disclosure requirements for listed entities
and also to bring more transparency and efficiency in the governance of listed
entities it has been decided to specify certain listing conditions so to amend the
Equity Listing Agreement.
2. The full text of amendments to be effected in the Equity Listing Agreement is given at
Annexure and the brief of the said listing conditions are as under:-
(a) Requirement of auditors’ certificate for accounting treatment under schemes of
arrangement- Amendment to clause 24
(i) It has been observed that in some of the recent schemes of amalgamation /
merger / reconstruction, etc. (schemes) of certain listed entities submitted to the
Hon’ble High Court for approval, there are included details of the accounting
treatment to be given to various items in the process of
amalgamation/merger/reconstruction etc. If this accounting treatment is not in
accordance with the accounting standards specified under section 211(3C) of the
Companies Act, 1956, the resultant financial statements of the entity concerned
will not be in conformity with the accounting standards.
(ii) In view of the above, it has been decided that while submitting the scheme of
amalgamation / merger / reconstruction, etc. (schemes) to the stock exchanges
under clause 24(f) of the Equity Listing Agreement, the listed entities shall also
submit to the concerned stock exchange, an auditors’ certificate to the effect that
the accounting treatment contained in such schemes is in compliance with all the
applicable Accounting Standards.
(b) Timelines for submission and publication of financial results by listed entities-
Amendment to clause 41(I)(c),(d)(e) and 41(VI)(b)
(i) With a view to streamline the submission of financial results by listed entities by
making it uniform and to reduce the timeline for submission of the same to the
stock exchanges, it has been decided that listed entities shall disclose, on standalone
or consolidated basis, their quarterly (audited or un-audited with limited
review), financial results within 45 days of the end of every quarter.
(ii) Also, audited annual results on stand-alone as well as consolidated basis, shall
be disclosed within 60 days from the end of the financial year for those entities
which opt to submit their annual audited results in lieu of the last quarter unaudited
financial results with limited review.
(iii) With regard to publication of consolidated financial results alone, the following,
viz.,(a) Turnover (b) Profit before tax and (c) Profit after tax on a stand-alone
basis shall also be published.
(c) Voluntary adoption of International Financial Reporting Standards (IFRS) by
listed entities having subsidiaries - Insertion of Clause 41(I) (g)
(i) Various regulatory authorities are working on arriving at a roadmap for
implementation of IFRS in India and on the steps to be taken for convergence of
the Indian Accounting Standards with IFRS by April 01, 2011.
(ii) In order to familiarize listed entities with the IFRS requirements within the
aforesaid timeline, it has been decided to provide an option for listed entities
having subsidiaries to submit their consolidated financial results either in
accordance with the accounting standards specified in section 211(3C) of the
Companies Act, 1956, or in accordance with IFRS.
(iii) where the figures for the current period are as per IFRS and the figures for the
corresponding previous period are as per the notified Accounting Standards, a
reconciliation shall be provided in respect of significant differences between the
figures as disclosed as per IFRS and the figures as they would have been if the
notified Accounting Standards were adopted.
(iv) Submission of stand-alone financial results to the stock exchanges shall
continue to be in accordance with the Indian GAAP.
(d) Requirement of a valid peer review certificate for statutory auditors- Insertion
of Clause 41(1) (h)
(i) The Institute of Chartered Accountants of India (ICAI / Institute) has specified a
peer review mechanism to ensure that the quality of services rendered by the
members of the Institute is maintained and enhanced on a continuous basis. Firms
of chartered accountants (proprietary as well as partnership) and members of the
Institute practising individually are required to undergo the peer review process.
(ii) It has been decided that in respect of all listed entities, limited review/statutory
audit reports submitted to the concerned stock exchanges shall be given only by
those auditors who have subjected themselves to the peer review process of ICAI
and who hold a valid certificate issued by the ‘Peer Review Board’ of the said
Institute.
(e) Interim disclosure of Balance Sheet items by listed entities- Insertion of clause
41(V) (h) and Annexure IX
(i) Presently, shareholders have access to the statement of assets and liabilities of
the listed entity and its solvency position only on an annual basis. In the wake of
the recent global financial crisis, the issue of solvency has come to the forefront
from the shareholders’ perspective.
(ii) With a view to have more frequent disclosure of the asset-liability position of
entities, it has been decided that listed entities shall disclose within forty-five days
from the end of the half-year, as a note to their half-yearly financial results, a
statement of assets and liabilities in the specified format.
(f) Modification in formats of limited review report and statutory auditor’s report -
Amendment to Annexures V, VI, VII and VIII to clause 41
(i) Clause 41 of the Listing Agreement provides for periodical disclosure of financial
results by listed entities. Annexures V, VI, VII and VIII to the said Clause provides,
inter-alia, the formats for submission of limited review reports by the statutory
auditors and the formats for reports by the statutory auditors wherein an
unqualified opinion on the financial results is expressed.
The aforesaid formats are hereby modified to make it clear that disclosures
pertaining to details of public shareholding and promoters’ shareholding, including
details of pledged/encumbered shares of promoters/promoter group, contained in
the format have been traced from disclosures made by the management.
(g) Approval of appointment of ‘CFO’ by the Audit Committee- Insertion of Clause
49(II)(D)(12A)
In order to ensure that the CFO has adequate accounting and financial management
expertise to review and certify the financial statements as required under Clause 49 of
the Listing Agreement, it has been decided that the appointment of the CFO is approved
by the Audit Committee before finalization of the same by the management. The Audit
Committee, while approving the appointment, shall assess the qualifications, experience
& background etc. of the candidate.
3. The above listing conditions are specified in exercise of the powers conferred under
Section 11 read with Section 11A of the Securities and Exchange Board of India Act,
1992. The said listing conditions should form part of the existing Listing Agreement of
the stock exchange. A text of amendments in the Listing Agreement is enclosed as
Annexure.
4. Applicability
(i) The provisions of para. 2 (a) above shall be applicable to all schemes of
arrangement / amalgamation / merger / reconstruction / reduction of capital of listed
entities that are being filed before the Hon’ble Courts/Tribunals on or after the date
of this circular.
(ii) The provisions of paras. 2 (b), (c), (e) and (g) shall be applicable with immediate
effect.
(iii) The provisions of para 2 (d) above shall be applicable to all financial statements
submitted by listed entities to the stock exchanges after appointment of auditors for
accounting periods commencing on or after April 01, 2010.
5. All stock exchanges are advised to ensure compliance with this circular and carry out
the amendments in their Listing Agreement as per the Annexure to this circular.
6. This circular is available on SEBI website at www.sebi.gov.in under the categories
“Legal Framework” and “Issues and Listing”.
Yours faithfully,
Sunil Kadam
General Manager
+91-22-26449630
sunilk@sebi.gov.in
Encl: as above
Annexure
Amendments to Listing Agreement
1. In clause 24 of the Equity Listing Agreement, after sub-clause (h), the following subclause
shall be inserted,-
“(i) The company agrees that, while filing for approval any draft Scheme of
amalgamation / merger / reconstruction, etc. with the stock exchange under subclause
(f), it shall also file an auditors’ certificate to the effect that the accounting
treatment contained in the scheme is in compliance with all the Accounting
Standards specified by the Central Government in Section 211(3C) of the
Companies Act, 1956.
Provided that in case of companies where the respective sectoral regulatory
authorities have prescribed norms for accounting treatment of items in the
financial statements contained in the scheme, the requirements of the
regulatory authorities shall prevail.
Explanation – For this purpose, mere disclosure of deviations in accounting
treatments as provided in para 42 of AS-14 shall not be deemed as compliance
with the above”.
2. In clause 41,
(i) in sub-clause(I),
(a) in item (c); for the words “one month” and for the words “two months”,
wherever they appear the words “forty-five days” shall be substituted;
(b) in item (d), for the words “one month”, “ two months”, wherever they
appear, the words “forty-five days” and for the words “three months”,
wherever they appear, the words “sixty days” shall be substituted;
(c) in item (e)(i), for the words “one month” and for words “two months”,
wherever they appear, the words “forty-five days” shall be substituted;
(d) in item (e)(ii), after the words “to the stock exchange” the words “within
sixty days from the end of the financial year” shall be inserted;
(e) after item (e), the following item shall be inserted:-
“(ea) As a part of its audited or unaudited financial results for the halfyear,
the company shall also submit by way of a note, a statement of
assets and liabilities as at the end of the half-year.
(eaa) However, when a company opts to submit un-audited financial
results for the last quarter of the financial year, it shall, submit a
statement of assets and liabilities as at the end of the financial year only
along with the audited financial results for the entire financial year, as
soon as they are approved by the Board.
(f) after item (f), the following items shall be inserted, namely:-
“(g) In case the company has subsidiaries and it opts to submit
consolidated financial results as mentioned at (e) above, it may submit
the consolidated financials as per the International Financial Reporting
Standards (IFRS) notified by the International Accounting Standards
Board.
(h)The company shall ensure that the limited review/audit reports
submitted to the stock exchanges on a quarterly/annual basis shall be
given only by an auditor who has subjected himself to the peer review
process of Institute of Chartered Accountants of India (ICAI) and holds
a valid certificate issued by the Peer Review Board of the ICAI.”
(ii) in sub-clause (V), after item (g), the following item shall be inserted, namely:-
“(h) Disclosure of Balance Sheet items as per items (ea) shall be in the format
specified in Annexure IX drawn from Schedule VI of the Companies Act, or its
equivalent formats in other statutes, as applicable.”
(iii) in sub- clause (VI), in item (b), for the words “only consolidated financial results”,
the words “consolidated financial results alongwith the following items on a
stand-alone basis, as a foot note:- (a)Turnover (b)Profit before tax (c)Profit after
tax”, shall be substituted;
(iv) in sub-clause (VI) item (b), after para (iii), the following sub-para (iv) shall be
inserted, namely:-
“(iv) Companies that are required to prepare consolidated financial results for the
first time at the end of a financial year shall exercise the option mentioned at (b)
above in respect of the quarter during the financial year in which they first acquire
the subsidiary.”
(v) in Annexure V, after the words “for the period ended……” the words “except for
the disclosures regarding ‘Public Shareholding’ and ‘Promoter and Promoter
Group Shareholding’ which have been traced from disclosures made by the
management and have not been audited by us” shall be inserted;
(vi) in Annexure VI, after the words “for the period ended……” the words “except
for the disclosures regarding ‘Public Shareholding’ and ‘Promoter and Promoter
Group Shareholding’ which have been traced from disclosures made by the
management and have not been audited by us” shall be inserted;
(vii) in Annexure VII(both parts), after the words “pursuant to the requirement of
clause 41 of the Listing Agreement” the words “except for the disclosures
regarding ‘Public Shareholding’ and ‘Promoter and Promoter Group
Shareholding’ which have been traced from disclosures made by the
management and have not been audited by us” shall be inserted;
(viii) in Annexure VIII(both parts), after the words “pursuant to the requirement of
clause 41 of the Listing Agreement” the words “except for the disclosures
regarding ‘Public Shareholding’ and ‘Promoter and Promoter Group
Shareholding’ which have been traced from disclosures made by the
management and have not been audited by us” shall be inserted;
(ix) after Annexure VIII, the following Annexure shall be inserted:-
“Annexure IX
(Rs. in lakhs)
Particulars 6 months ended
(dd/mm/yyyy)
Corresponding 6 months
ended in the previous year
(dd/mm/yyyy)
Audited/
Unaudited
Audited/
Unaudited
SHAREHOLDERS’ FUNDS:
(a) Capital
(b) Reserves and Surplus
LOAN FUNDS
FIXED ASSETS
INVESTMENTS
CURRENT ASSETS, LOANS
AND ADVANCES
(a) Inventories
(b) Sundry Debtors
(c) Cash and Bank balances
(d) Other current assets
(e) Loans and Advances
Less: Current Liabilities and
Provisions
(a) Liabilities
(b) Provisions
MISCELLANEOUS
EXPENDITURE (NOT
WRITTEN OFF OR
ADJUSTED)
PROFIT AND LOSS ACCOUNT
TOTAL
3. In clause 49, sub-clause II, para D, after item 12, the following shall be inserted:-
“12A. Approval of appointment of CFO (i.e., the whole-time Finance Director or any
other person heading the finance function or discharging that function) after assessing
the qualifications, experience & background, etc. of the candidate.”
*************
Monday, March 8, 2010
Budget effects on Business Income - Companies & LLP
Tax Rates
Tax rate for firms, LLP and companies remain the same as per last year's budget.
• However surcharge in the case of domestic company gets reduced from existing 10% to 7.50%
for the Financial Year 2010-2011.
• Similarly surcharge in the case of dividend distribution tax and minimum alternate tax gets
reduced to 7.50 %.
MAT
• Minimum Alternate Tax (MAT) rate has been increased from 15 % to 18 %. Rate of MAT for the
company on the basis of profit will be as under:-
- Book Profit exceeds Rs. 1.00 crore - 19.93%
- Book Profit upto Rs. 1.00 Crore - 18.54%
Deemed Gift
• Taxation of deemed gift has been introduced. If a company/ firm acquires shares of other unlisted
company for inadequate consideration or without consideration and aggregate fair market value
exceeds Rs. 50,000/. This provision will apply w.e.f. 1 June 2010.st
Non Residents
• It is proposed to expand the scope of taxation of non residents.
• If a non resident earns interest , royalty or technical fees, it will be deemed to accrue or arise in India,
whether or not services are rendered in India or outside India.
• This amendment is introduced to nullify the impact of judicial ruling in favour of assesee and is to be
applied retrospectively from FY 1976-77.
• This provision will also have implication in case of TDS on payment to non resident
Depreciation
• It is proposed that the company and LLP will apportion the depreciation allowable under the Act
in the ratio of number of days for which assets were used by them in case of conversion of private
limited or public unlisted company to LLP as per the amended provisions of Act.
• Further WDV of assets in case of such LLP will be WDV of assets of company before such conversion.
• LLP can claim the benefit of unabsorbed brought forward loss and depreciation in case of conversion
of company.
• However MAT credit gets lapsed in the hand of LLP in case of conversion of company.
Research
• Deduction of amount paid to research association is proposed to be enhanced to one and three
fourth time of sum paid as against existing of one and one fourth time of sum paid.
• For specified businesses i.e. pharmaceutical, chemical computers, who incur expenditure on
scientific research, the weighted deduction to the extent of two time of the amount spent will be
allowed as against existing one and one half time of amount spent.
Hotel
• A person will be allowed to claim deduction of expenditure of capital nature incurred on a new
hotel of two star and above category.
• The expenditure will be allowed in the year in which hotel commence the operation and entire capital
expenditure incurred prior to commencement of hotel will be eligible for deduction.
• However the assessee will not be able to claim any other deduction in any other assessment year.
Capital gain on conversion to LLP
• It is proposed that conversion of private limited or public unlisted company to limited liability
partnership will not result into transfer and capital gain on such conversion will not attract tax.
• However this clause is non starter since condition attached with such exemption is rigorous i.e. sales
of company in preceding three year should not exceed 60 lacs, partners can not withdraw any
money out of balance of accumulated profit standing in the accounts on the day of conversion,
partners can not receive any consideration / benefit directly or indirectly from LLP after conversion
during the existence of LLP etc.
Tax Audit
• It is proposed to increase the threshold limit for the requirement of Tax Audit.
• Now Professionals are required to get the tax audit done if gross receipts exceeds Rs. 15. 00 Lacs and
other business entity requires to get the tax audit done if turnover exceeds Rs. 60 Lacs.
• However penalty for non compliance of tax audit provision will attract maximum penalty of Rs. 1.50
Lacs in place of existing penalty of Rs. 1.00 lacs.
Housing Project
• Deduction for housing project approved after 1 April 2005 will be allowed in case project getsst
completed within five year from the end of financial year in which first approval was granted after
1/4/2005 .
• However commercial area is now restricted to 3% of total built up area in place of existing 5% of built
up area or 5000 Sq. ft which ever is higher is specified for claim of deduction u/s 80IB (10) of the
Act.
Valuation of Property
• Now department can refer the valuation of property for determination of value of gift in case of transfer
of property without consideration or inadequate consideration to valuation officer during the course
of scrutiny assessment proceeding.
Tax rate for firms, LLP and companies remain the same as per last year's budget.
• However surcharge in the case of domestic company gets reduced from existing 10% to 7.50%
for the Financial Year 2010-2011.
• Similarly surcharge in the case of dividend distribution tax and minimum alternate tax gets
reduced to 7.50 %.
MAT
• Minimum Alternate Tax (MAT) rate has been increased from 15 % to 18 %. Rate of MAT for the
company on the basis of profit will be as under:-
- Book Profit exceeds Rs. 1.00 crore - 19.93%
- Book Profit upto Rs. 1.00 Crore - 18.54%
Deemed Gift
• Taxation of deemed gift has been introduced. If a company/ firm acquires shares of other unlisted
company for inadequate consideration or without consideration and aggregate fair market value
exceeds Rs. 50,000/. This provision will apply w.e.f. 1 June 2010.st
Non Residents
• It is proposed to expand the scope of taxation of non residents.
• If a non resident earns interest , royalty or technical fees, it will be deemed to accrue or arise in India,
whether or not services are rendered in India or outside India.
• This amendment is introduced to nullify the impact of judicial ruling in favour of assesee and is to be
applied retrospectively from FY 1976-77.
• This provision will also have implication in case of TDS on payment to non resident
Depreciation
• It is proposed that the company and LLP will apportion the depreciation allowable under the Act
in the ratio of number of days for which assets were used by them in case of conversion of private
limited or public unlisted company to LLP as per the amended provisions of Act.
• Further WDV of assets in case of such LLP will be WDV of assets of company before such conversion.
• LLP can claim the benefit of unabsorbed brought forward loss and depreciation in case of conversion
of company.
• However MAT credit gets lapsed in the hand of LLP in case of conversion of company.
Research
• Deduction of amount paid to research association is proposed to be enhanced to one and three
fourth time of sum paid as against existing of one and one fourth time of sum paid.
• For specified businesses i.e. pharmaceutical, chemical computers, who incur expenditure on
scientific research, the weighted deduction to the extent of two time of the amount spent will be
allowed as against existing one and one half time of amount spent.
Hotel
• A person will be allowed to claim deduction of expenditure of capital nature incurred on a new
hotel of two star and above category.
• The expenditure will be allowed in the year in which hotel commence the operation and entire capital
expenditure incurred prior to commencement of hotel will be eligible for deduction.
• However the assessee will not be able to claim any other deduction in any other assessment year.
Capital gain on conversion to LLP
• It is proposed that conversion of private limited or public unlisted company to limited liability
partnership will not result into transfer and capital gain on such conversion will not attract tax.
• However this clause is non starter since condition attached with such exemption is rigorous i.e. sales
of company in preceding three year should not exceed 60 lacs, partners can not withdraw any
money out of balance of accumulated profit standing in the accounts on the day of conversion,
partners can not receive any consideration / benefit directly or indirectly from LLP after conversion
during the existence of LLP etc.
Tax Audit
• It is proposed to increase the threshold limit for the requirement of Tax Audit.
• Now Professionals are required to get the tax audit done if gross receipts exceeds Rs. 15. 00 Lacs and
other business entity requires to get the tax audit done if turnover exceeds Rs. 60 Lacs.
• However penalty for non compliance of tax audit provision will attract maximum penalty of Rs. 1.50
Lacs in place of existing penalty of Rs. 1.00 lacs.
Housing Project
• Deduction for housing project approved after 1 April 2005 will be allowed in case project getsst
completed within five year from the end of financial year in which first approval was granted after
1/4/2005 .
• However commercial area is now restricted to 3% of total built up area in place of existing 5% of built
up area or 5000 Sq. ft which ever is higher is specified for claim of deduction u/s 80IB (10) of the
Act.
Valuation of Property
• Now department can refer the valuation of property for determination of value of gift in case of transfer
of property without consideration or inadequate consideration to valuation officer during the course
of scrutiny assessment proceeding.
Friday, February 26, 2010
Budget Highlights - 2010-11
Direct Taxes
! Income tax slabs for individual taxpayers to be as follows
Income upto Rs 1.6 lakh Nil
Income above Rs 1.6 lakh and upto Rs. 5 lakh 10 per cent
Income above Rs.5 lakh and upto Rs. 8 lakh 20 per cent
Income above Rs. 8 lakh 30 per cent
! Deduction of an additional amount of Rs. 20,000 allowed, over and above the
existing limit of Rs.1 lakh on tax savings, for investment in long-term infrastructure
bonds as notified by the Central Government
! Besides contributions to health insurance schemes which is currently allowed as a
deduction under the Income-tax Act, contributions to the Central Government Health
Scheme also allowed as a deduction under the same provision.
! Current surcharge of 10 per cent on domestic companies reduced to 7.5 per cent.
! Rate of Minimum Alternate Tax (MAT) increased from the current rate of 15 per
cent to 18 per cent of book profits.
! To further encourage R&D across all sectors of the economy, weighted deduction
on expenditure incurred on in-house R&D enhanced from 150 per cent to 200 per
cent. Weighted deduction on payments made to National Laboratories, research
associations, colleges, universities and other institutions, for scientific research
enhanced from 125 per cent to 175 per cent.
! Payment made to an approved association engaged in research in social sciences
or statistical research to be allowed as a weighted deduction of 125 per cent. The
income of such approved research association shall be exempt from tax.
! Benefit of investment linked deduction under the Act extended to new hotels of
two-star category and above anywhere in India to boost investment in the tourism
sector.
! Allow pending projects to be completed within a period of five years instead of
four years for claiming a deduction of their profits, as a one time interim relief to
the housing and real estate sector. Norms for built-up area of shops and other
commercial establishments in housing projects to be relaxed to enable basic facilities
for their residents.
! Limits for turnover over which accounts need to be audited enhanced to Rs. 60
lakh for businesses and to Rs. 15 lakh for professions.
! Limit of turnover for the purpose of presumptive taxation of small businesses
enhanced to Rs. 60 lakh.
! If tax has been deducted on payment by way of any expense and is paid before the
due date of filing the return, such expenditure to be allowed for deduction. Interest
charged on tax deducted but not deposited by the specified date to be increased
from 12 per cent to 18 per cent per annum.
! To facilitate the conversion of small companies into Limited Liability Partnerships,
transfer of assets as a result of such conversion not to be subject to capital gains
tax.
! “The advancement of any other object of general public utility” to be considered as
“charitable purpose” even if it involves carrying on of any activity in the nature of
trade, commerce or business provided that the receipts from such activities do not
exceed Rs.10 lakh in the year .
! Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore
for the year.
Indirect Taxes
! Rate reduction in Central Excise duties to be partially rolled back and the standard rate on all non-petroleum products enhanced from 8 per cent to 10 per cent ad valorem.
! The specific rates of duty applicable to portland cement and cement clinker also
adjusted upwards proportionately. Similarly, the ad valorem component of excise
duty on large cars, multi-utility vehicles and sports-utility vehicles increased by 2
percentage points to 22 per cent.
! Restore the basic duty of 5 per cent on crude petroleum; 7.5 per cent on diesel and
petrol and 10 per cent on other refined products. Central Excise duty on petrol and
diesel enhanced by Re.1 per litre each.
! Some structural changes in the excise duty on cigarettes, cigars and cigarillos to be
made coupled with some increase in rates. Excise duty on all non-smoking tobacco
such as scented tobacco, snuff, chewing tobacco etc to be enhanced. Compounded
levy scheme for chewing tobacco and branded unmanufactured tobacco based on
the capacity of pouch packing machines to be introduced.
Agriculture & Related Sectors
! Provide project import status with a concessional import duty of 5 per cent for the
setting up of mechanised handling systems and pallet racking systems in ‘mandis’
or warehouses for food grains and sugar as well as full exemption from service tax
for the installation and commissioning of such equipment.
! Provide project import status at a concessional customs duty of 5 per cent with full
exemption from service tax to the initial setting up and expansion of
♦ Cold storage, cold room including farm pre-coolers for preservation or storage
of agriculture and related sectors produce ; and
♦ Processing units for such produce.
! Provide full exemption from customs duty to refrigeration units required for the
manufacture of refrigerated vans or trucks.
! Provide concessional customs duty of 5 per cent to specified agricultural machinery
not manufactured in India;
! Provide central excise exemption to specified equipment for preservation, storage
and processing of agriculture and related sectors and exemption from service tax
to the storage and warehousing of their produce; and
! Provide full exemption from excise duty to trailers and semi-trailers used in
agriculture.
! Concessional import duty to specified machinery for use in the plantation sector to
be, extended up to March 31, 2011 along with a CVD exemption.
! To exempt the testing and certification of agricultural seeds from service tax.
! The transportation by road of cereals, and pulses to be exempted from service tax.
Transportation by rail to remain exempt.
! To ease the cash flow position for small-scale manufacturers, they would be
permitted to take full credit of Central Excise duty paid on capital goods in a single
installment in the year of their receipt. Secondly, they would be permitted to pay
Central Excise duty on a quarterly, rather than monthly, basis.
Environment
! To build the corpus of the National Clean Energy Fund, clean energy cess on coal
produced in India at a nominal rate of Rs.50 per tonne to be levied. This cess will
also apply on imported coal.
! Provide a concessional customs duty of 5 per cent to machinery, instruments,
equipment and appliances etc. required for the initial setting up of photovoltaic
and solar thermal power generating units and also exempt them from Central Excise
duty. Ground source heat pumps used to tap geo-thermal energy to be exempted
from basic customs duty and special additional duty.
! Exempt a few more specified inputs required for the manufacture of rotor blades
for wind energy generators from Central Excise duty.
! Central Excise duty on LED lights reduced from 8 per cent to 4 per cent at par with
Compact Fluorescent Lamps.
! To remedy the difficulty faced by manufacturers of electric cars and vehicles in
neutralising the duty paid on their inputs and components, a nominal duty of 4 per
cent on such vehicles imposed. Some critical parts or sub-assemblies of such
vehicles exempted from basic customs duty and special additional duty subject to
actual user condition. These parts would also enjoy a concessional CVD of 4 per
cent.
! A concessional excise duty of 4 per cent provided to “soleckshaw”, a product
developed by CSIR to replace manually-operated rickshaws. Its key parts and
components to be exempted from customs duty.
! Import of compostable polymer exempted from basic customs duty.
Infrastructure
! Project import status to ‘Monorail projects for urban transport’ at a concessional
basic duty of 5 per cent granted.
! To allow resale of specified machinery for road construction projects on payment
of import duty at depreciated value.
! To encourage the domestic manufacture of mobile phones accessories, exemptions
from basic, CVD and special additional duties are now being extended to parts of
battery chargers and hands-free headphones. The validity of the exemption from
special additional duty is being extended till March 31, 2011.
Medical Sector
! Uniform, concessional basic duty of 5 per cent, CVD of 4 per cent with full
exemption from special additional duty prescribed on all medical equipments. A
concessional basic duty of 5 per cent is being prescribed on parts and accessories
for the manufacture of such equipment while they would be exempt from CVD
and special additional duty.
! Full exemption currently available to medical equipment and devices such as
assistive devices, rehabilitation aids etc. retained. The concession available to
Government hospitals or hospitals set up under a statute also retained.
! Specified inputs for the manufacture of orthopaedic implants exempted from import
duty.
Infotainment
! To address the difficulties experienced by film industry in importing digital masters
of films for duplication or distribution loaded on electronic medium vis-a-vis those
imported on cinematographic film, owing to a differential customs duty structure,
customs duty to be charged only on the value of the carrier medium. The same
dispensation would apply to music and gaming software imported for duplication.
In all such cases the value representing the transfer of intellectual property rights
would be subjected to service tax.
! Provide project import status at a concessional customs duty of 5 per cent with full
exemption from special additional duty to the initial setting up “Digital Head End”
equipment by multi-service operators.
Precious Metals
! Rates on precious metals indexed as follows:
♦ On gold and platinum from Rs.200 per 10 grams to Rs.300 per 10 grams
♦ On silver from Rs.1,000 per kg to Rs.1,500 per kg.
! Basic customs on Rhodium – a precious metal used for polishing jewellery reduced
to 2 per cent.
! Basic customs duty on gold ore and concentrates reduced from 2 per cent ad valorem
to a specific duty of Rs.140 per 10 grams of gold content with full exemption from
special additional duty. Further, the excise duty on refined gold made from such
ore or concentrate reduced from 8 per cent to a specific duty of Rs.280 per 10
grams.
Other Proposals
! Full exemption from import duty available to specified inputs or raw materials
required for the manufacture of sports goods expanded to cover a few more items.
! Basic customs duty on one of key components in production of micro-wave ovens,
namely magnetrons, reduced from 10 per cent to 5 per cent.
! Value limit of Rs. 1 lakh per annum on duty-free import of commercial samples as
personal baggage enhanced to Rs. 3 lakh per annum.
! Outright exemption from special additional duty provided to goods imported in a
pre-packaged form for retail sale. This would also cover mobile phones, watches
and ready-made garments even when they are not imported in pre-packaged form.
The refund-based exemption is also being retained for cases not covered by the
new dispensation.
! Toy balloons fully exempted from Central Excise duty.
! Reduction in basic customs duty on long pepper from 70 per cent to 30 per cent;
! Reduction in basic customs duty on asafoetida from 30 per cent to 20 per cent;
! Reduction in central excise duty on replaceable kits for household type water filters
other than those based on RO technology to 4 per cent;
! Reduction in central excise duty on corrugated boxes and cartons from 8 per cent
to 4 per cent;
! Reduction in central excise duty on latex rubber thread from 8 per cent to 4 per
cent; and
! Reduction in excise duty on goods covered under the Medicinal and Toilet
Preparations Act from 16 per cent to 10 per cent.
! Proposals relating to customs and central excise are estimated to result in a net
revenue gain of Rs. 43,500 crore for the year.
Service Tax
! Rate of tax on services retained at 10 per cent to pave the way forward for GST.
! Certain services, hitherto untaxed, to be brought within the purview of the service
tax levy. These to be notified separately.
! Process of refund of accumulated credit to exporters of services, especially in the
area of Information Technology and Business Process Outsourcing, made easy by
making necessary changes in the definition of export of services and procedures.
! Accredited news agencies which provide news feed online that meet certain criteria,
exempted from service tax.
! Proposals relating to service tax are estimated to result in a net revenue gain of Rs
3,000 crore for the year.
! Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore
for the year. Proposals relating to Indirect Taxes estimated to result in a net revenue
gain of Rs.46,500 crore for the year. Taking into account the concessions being
given in the tax proposals and measures taken to mobilise additional resources, the
net revenue gain is estimated to be Rs. 20,500 crore for the year.
! Income tax slabs for individual taxpayers to be as follows
Income upto Rs 1.6 lakh Nil
Income above Rs 1.6 lakh and upto Rs. 5 lakh 10 per cent
Income above Rs.5 lakh and upto Rs. 8 lakh 20 per cent
Income above Rs. 8 lakh 30 per cent
! Deduction of an additional amount of Rs. 20,000 allowed, over and above the
existing limit of Rs.1 lakh on tax savings, for investment in long-term infrastructure
bonds as notified by the Central Government
! Besides contributions to health insurance schemes which is currently allowed as a
deduction under the Income-tax Act, contributions to the Central Government Health
Scheme also allowed as a deduction under the same provision.
! Current surcharge of 10 per cent on domestic companies reduced to 7.5 per cent.
! Rate of Minimum Alternate Tax (MAT) increased from the current rate of 15 per
cent to 18 per cent of book profits.
! To further encourage R&D across all sectors of the economy, weighted deduction
on expenditure incurred on in-house R&D enhanced from 150 per cent to 200 per
cent. Weighted deduction on payments made to National Laboratories, research
associations, colleges, universities and other institutions, for scientific research
enhanced from 125 per cent to 175 per cent.
! Payment made to an approved association engaged in research in social sciences
or statistical research to be allowed as a weighted deduction of 125 per cent. The
income of such approved research association shall be exempt from tax.
! Benefit of investment linked deduction under the Act extended to new hotels of
two-star category and above anywhere in India to boost investment in the tourism
sector.
! Allow pending projects to be completed within a period of five years instead of
four years for claiming a deduction of their profits, as a one time interim relief to
the housing and real estate sector. Norms for built-up area of shops and other
commercial establishments in housing projects to be relaxed to enable basic facilities
for their residents.
! Limits for turnover over which accounts need to be audited enhanced to Rs. 60
lakh for businesses and to Rs. 15 lakh for professions.
! Limit of turnover for the purpose of presumptive taxation of small businesses
enhanced to Rs. 60 lakh.
! If tax has been deducted on payment by way of any expense and is paid before the
due date of filing the return, such expenditure to be allowed for deduction. Interest
charged on tax deducted but not deposited by the specified date to be increased
from 12 per cent to 18 per cent per annum.
! To facilitate the conversion of small companies into Limited Liability Partnerships,
transfer of assets as a result of such conversion not to be subject to capital gains
tax.
! “The advancement of any other object of general public utility” to be considered as
“charitable purpose” even if it involves carrying on of any activity in the nature of
trade, commerce or business provided that the receipts from such activities do not
exceed Rs.10 lakh in the year .
! Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore
for the year.
Indirect Taxes
! Rate reduction in Central Excise duties to be partially rolled back and the standard rate on all non-petroleum products enhanced from 8 per cent to 10 per cent ad valorem.
! The specific rates of duty applicable to portland cement and cement clinker also
adjusted upwards proportionately. Similarly, the ad valorem component of excise
duty on large cars, multi-utility vehicles and sports-utility vehicles increased by 2
percentage points to 22 per cent.
! Restore the basic duty of 5 per cent on crude petroleum; 7.5 per cent on diesel and
petrol and 10 per cent on other refined products. Central Excise duty on petrol and
diesel enhanced by Re.1 per litre each.
! Some structural changes in the excise duty on cigarettes, cigars and cigarillos to be
made coupled with some increase in rates. Excise duty on all non-smoking tobacco
such as scented tobacco, snuff, chewing tobacco etc to be enhanced. Compounded
levy scheme for chewing tobacco and branded unmanufactured tobacco based on
the capacity of pouch packing machines to be introduced.
Agriculture & Related Sectors
! Provide project import status with a concessional import duty of 5 per cent for the
setting up of mechanised handling systems and pallet racking systems in ‘mandis’
or warehouses for food grains and sugar as well as full exemption from service tax
for the installation and commissioning of such equipment.
! Provide project import status at a concessional customs duty of 5 per cent with full
exemption from service tax to the initial setting up and expansion of
♦ Cold storage, cold room including farm pre-coolers for preservation or storage
of agriculture and related sectors produce ; and
♦ Processing units for such produce.
! Provide full exemption from customs duty to refrigeration units required for the
manufacture of refrigerated vans or trucks.
! Provide concessional customs duty of 5 per cent to specified agricultural machinery
not manufactured in India;
! Provide central excise exemption to specified equipment for preservation, storage
and processing of agriculture and related sectors and exemption from service tax
to the storage and warehousing of their produce; and
! Provide full exemption from excise duty to trailers and semi-trailers used in
agriculture.
! Concessional import duty to specified machinery for use in the plantation sector to
be, extended up to March 31, 2011 along with a CVD exemption.
! To exempt the testing and certification of agricultural seeds from service tax.
! The transportation by road of cereals, and pulses to be exempted from service tax.
Transportation by rail to remain exempt.
! To ease the cash flow position for small-scale manufacturers, they would be
permitted to take full credit of Central Excise duty paid on capital goods in a single
installment in the year of their receipt. Secondly, they would be permitted to pay
Central Excise duty on a quarterly, rather than monthly, basis.
Environment
! To build the corpus of the National Clean Energy Fund, clean energy cess on coal
produced in India at a nominal rate of Rs.50 per tonne to be levied. This cess will
also apply on imported coal.
! Provide a concessional customs duty of 5 per cent to machinery, instruments,
equipment and appliances etc. required for the initial setting up of photovoltaic
and solar thermal power generating units and also exempt them from Central Excise
duty. Ground source heat pumps used to tap geo-thermal energy to be exempted
from basic customs duty and special additional duty.
! Exempt a few more specified inputs required for the manufacture of rotor blades
for wind energy generators from Central Excise duty.
! Central Excise duty on LED lights reduced from 8 per cent to 4 per cent at par with
Compact Fluorescent Lamps.
! To remedy the difficulty faced by manufacturers of electric cars and vehicles in
neutralising the duty paid on their inputs and components, a nominal duty of 4 per
cent on such vehicles imposed. Some critical parts or sub-assemblies of such
vehicles exempted from basic customs duty and special additional duty subject to
actual user condition. These parts would also enjoy a concessional CVD of 4 per
cent.
! A concessional excise duty of 4 per cent provided to “soleckshaw”, a product
developed by CSIR to replace manually-operated rickshaws. Its key parts and
components to be exempted from customs duty.
! Import of compostable polymer exempted from basic customs duty.
Infrastructure
! Project import status to ‘Monorail projects for urban transport’ at a concessional
basic duty of 5 per cent granted.
! To allow resale of specified machinery for road construction projects on payment
of import duty at depreciated value.
! To encourage the domestic manufacture of mobile phones accessories, exemptions
from basic, CVD and special additional duties are now being extended to parts of
battery chargers and hands-free headphones. The validity of the exemption from
special additional duty is being extended till March 31, 2011.
Medical Sector
! Uniform, concessional basic duty of 5 per cent, CVD of 4 per cent with full
exemption from special additional duty prescribed on all medical equipments. A
concessional basic duty of 5 per cent is being prescribed on parts and accessories
for the manufacture of such equipment while they would be exempt from CVD
and special additional duty.
! Full exemption currently available to medical equipment and devices such as
assistive devices, rehabilitation aids etc. retained. The concession available to
Government hospitals or hospitals set up under a statute also retained.
! Specified inputs for the manufacture of orthopaedic implants exempted from import
duty.
Infotainment
! To address the difficulties experienced by film industry in importing digital masters
of films for duplication or distribution loaded on electronic medium vis-a-vis those
imported on cinematographic film, owing to a differential customs duty structure,
customs duty to be charged only on the value of the carrier medium. The same
dispensation would apply to music and gaming software imported for duplication.
In all such cases the value representing the transfer of intellectual property rights
would be subjected to service tax.
! Provide project import status at a concessional customs duty of 5 per cent with full
exemption from special additional duty to the initial setting up “Digital Head End”
equipment by multi-service operators.
Precious Metals
! Rates on precious metals indexed as follows:
♦ On gold and platinum from Rs.200 per 10 grams to Rs.300 per 10 grams
♦ On silver from Rs.1,000 per kg to Rs.1,500 per kg.
! Basic customs on Rhodium – a precious metal used for polishing jewellery reduced
to 2 per cent.
! Basic customs duty on gold ore and concentrates reduced from 2 per cent ad valorem
to a specific duty of Rs.140 per 10 grams of gold content with full exemption from
special additional duty. Further, the excise duty on refined gold made from such
ore or concentrate reduced from 8 per cent to a specific duty of Rs.280 per 10
grams.
Other Proposals
! Full exemption from import duty available to specified inputs or raw materials
required for the manufacture of sports goods expanded to cover a few more items.
! Basic customs duty on one of key components in production of micro-wave ovens,
namely magnetrons, reduced from 10 per cent to 5 per cent.
! Value limit of Rs. 1 lakh per annum on duty-free import of commercial samples as
personal baggage enhanced to Rs. 3 lakh per annum.
! Outright exemption from special additional duty provided to goods imported in a
pre-packaged form for retail sale. This would also cover mobile phones, watches
and ready-made garments even when they are not imported in pre-packaged form.
The refund-based exemption is also being retained for cases not covered by the
new dispensation.
! Toy balloons fully exempted from Central Excise duty.
! Reduction in basic customs duty on long pepper from 70 per cent to 30 per cent;
! Reduction in basic customs duty on asafoetida from 30 per cent to 20 per cent;
! Reduction in central excise duty on replaceable kits for household type water filters
other than those based on RO technology to 4 per cent;
! Reduction in central excise duty on corrugated boxes and cartons from 8 per cent
to 4 per cent;
! Reduction in central excise duty on latex rubber thread from 8 per cent to 4 per
cent; and
! Reduction in excise duty on goods covered under the Medicinal and Toilet
Preparations Act from 16 per cent to 10 per cent.
! Proposals relating to customs and central excise are estimated to result in a net
revenue gain of Rs. 43,500 crore for the year.
Service Tax
! Rate of tax on services retained at 10 per cent to pave the way forward for GST.
! Certain services, hitherto untaxed, to be brought within the purview of the service
tax levy. These to be notified separately.
! Process of refund of accumulated credit to exporters of services, especially in the
area of Information Technology and Business Process Outsourcing, made easy by
making necessary changes in the definition of export of services and procedures.
! Accredited news agencies which provide news feed online that meet certain criteria,
exempted from service tax.
! Proposals relating to service tax are estimated to result in a net revenue gain of Rs
3,000 crore for the year.
! Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore
for the year. Proposals relating to Indirect Taxes estimated to result in a net revenue
gain of Rs.46,500 crore for the year. Taking into account the concessions being
given in the tax proposals and measures taken to mobilise additional resources, the
net revenue gain is estimated to be Rs. 20,500 crore for the year.
Thursday, February 25, 2010
Railway Budget 2010 at glance
- No increase in passenger fares
- Free travel for cancer patients in 3rd AC classes
- Matribhoomi special trains to be introduced for women
- New Janmabhoomi train between Ahmedabad and Udhampur
- Funding for metro rail projects to be increased by 5%
- Special train ' Bharat Tirth' to connect Himachal to Kanyakumari.
-
Karmabhoomi trains to be introduced for migrant labour
- FY 11 dividend liability at Rs. 6,600 cr
- Work under Mumbai suburban area under MUTP phase 1 to be completed this year, and under phase 2 to be completed by March 2014
-
Kolkata Metro to be extended inside the city, 5 stations to be renamed.
- Railways to have master plan for N-E region
- Railway line to be extended from Bilaspur in Himachal Pradesh to Leh in Jammu and Kashmir
- Andaman and Nicobar Islands to get railway line from Port Blair to Diglipur
- Sikkim capital Gangtok to be connected by rail from Rangpo
- 2011 being 150th anniversary of Rabindranath Tagore, special train to be run from West Bengal to Bangladesh
- Impact of Sixth Pay Commission recommendations placed at Rs.55,000 crore
- Rs 4411 cr allotted for new railway lines
- Stone India is quoting at Rs 61.20, down 4.08%
- National High Speed rail authority to be set up
- To exceed freight loading target by eight million tonnes
- Wagon repair shop to be set up in Badnera (Maharashtra)
- To set up 50 creches, 8000 hostels for women railway staff
- Railways to set up 10 auto ancillary hubs
- Job for one member of family whose land is acquired
- Diesel plant in Bengal if land available
- New anti-collision devices to be installed
- Door to door service for freight
- Service charge on AC fares cut
- Railways to set up Tagore museums
- Clearance in 100 days for private investments
- To extend routes of 21 trains
- To ink a western corridor pact with a Japanese company
- Dedicated passenger corridor to be set up
- Will set up 10 railway eco-parks
- 10 more Duranto trains to be launched
- Freight cut on foodgrain and kerosene
- IVRCL is quoting at Rs 316.70, up 0.64%
- Railways to enhance contribution to Central staff benefit fund
- Titagarh Wagons is trading at Rs 396.25, down 2.23%
- No forceful land acquisition for railway projects
- Mobile e-ticketing centres at hospitals, courts
- Centre for railway research to be set up in IIT- Kharagpur
- RPF to be strengthened through amendments in RPF Act
- Will introduce modified wagon investment scheme
- Houses to all railway employees in next 10 years
- To set up more freight corridors
- To launch new tourist trains in 16 routes
- 13,000 un-manned crossings to be manned in five years
- Integral Coach Factory in Chennai to be modernised
- Work on Rai Bareilly coach factory to begin this year
- Railways to acquire 80,000 new wagons
- Design, development and testing center in Bangalore
- To introduce 54 new trains in FY 2011
- To run 101 new suburban trains in Mumbai
- To introduce several schemes for railway employees
- State-of- the-art loco training centers to be set up
- No hike in freight tariff
- Railways to run a special train during CWG 2010
- Will induct ex-service men into railway security
- Will modernise 93 railway stations
- Railways will give concessions for sportspersons
- Railways will partner with CWG 2010
- Security for women passengers to be improved
- Double-decker trains to be introduced
- RFID technology to be used for freight transport
- Ticket counters at district headquarters and village panchayats
- Special task force to be set up for early clearance of projects
- Rs 1300 cr for passenger amenities
- Plan to start 6 water bottling plants for railways
- Construction of multi-level parking through PPP model
- To complete 1000 km railway lines in one year
- Railway exams can be taken in regional languages
- Plan to raise Rs. 10,000 - 20,000 crore by next fiscal
- Will withdraw examination fees for backward classes and women
- English, Hindi, Urdu will be used for Railway entrance exams
- 117 of 120 new trains for current fiscal to be flagged off
Tuesday, February 23, 2010
Annoucemnet for Taxation Papers of PEII, PCC/IPCC & Final Students for May 2010 Exam
Annoucemnet for Taxation Papers of PEII, PCC/IPCC & Final Students for May 2010 Exam
Announcement relating to taxation papers for students appearing in May 2010 examination
PE-II [Income-tax and Central Sales Tax], PCC/IPCC [Taxation],
Final (Old) Course [Direct Taxes] and Final (New) Course [Direct Tax Laws]
(1) Fringe Benefit Tax is not applicable from A.Y.2010-11 and hence, is not relevant for May 2010 examination.
(2) Consequential Notification of new perquisite rules on 18.12.2009 not to apply for May 2010 examination
Consequent to abolition of fringe benefit tax, certain benefits taxed earlier as fringe benefits in the hands of the employer would now be taxable as perquisites in the hands of the employees. For this purpose, new perquisite valuation rules have been notified vide Notification No.94/2009/ F.No.142/25/2009-S.O.(TPL), dated 18.12.2009 with retrospective effect from 1.4.2009. However, the new perquisite valuation rules would be applicable only for November 2010 examination. They would not be applicable for May 2010 examination, since only notifications/circulars issued up to 31st October, 2009 are relevant for May 2010 examination.
(3) Applicability of erstwhile Rule 3 for May 2010 examination
(a) Therefore, the erstwhile Rule 3 would be applicable for May 2010 examination. All the perquisites which were earlier taxable in the hands of the employee, only if the employer was not liable to pay fringe benefit tax, would now be taxable in the hands of the employee in all cases, since no employer is liable to pay fringe benefit tax for A.Y.2010-11.
(b) Rule 3(7), providing for valuation of “other fringe benefits and amenities”, is based on the terms of the provisions contained in the erstwhile clause (vi) of section 17(2). The Finance (No.2) Act, 2009 has amended section 17(2) by including certain other perquisites under clauses (vi) and (vii) of section 17(2). Consequently, the residual clause, namely, clause (viii) of section 17(2), now provides for taxing the value of any other fringe benefit or amenity as may be prescribed. Therefore, the Rule 3(7), prescribing the fringe benefits or amenities in terms of the erstwhile clause (vi) [now clause (viii)] of section 17(2)] have been given in the latest study material relevant for May 2010 examination.
Announcement relating to taxation papers for students appearing in May 2010 examination
PE-II [Income-tax and Central Sales Tax], PCC/IPCC [Taxation],
Final (Old) Course [Direct Taxes] and Final (New) Course [Direct Tax Laws]
(1) Fringe Benefit Tax is not applicable from A.Y.2010-11 and hence, is not relevant for May 2010 examination.
(2) Consequential Notification of new perquisite rules on 18.12.2009 not to apply for May 2010 examination
Consequent to abolition of fringe benefit tax, certain benefits taxed earlier as fringe benefits in the hands of the employer would now be taxable as perquisites in the hands of the employees. For this purpose, new perquisite valuation rules have been notified vide Notification No.94/2009/ F.No.142/25/2009-S.O.(TPL), dated 18.12.2009 with retrospective effect from 1.4.2009. However, the new perquisite valuation rules would be applicable only for November 2010 examination. They would not be applicable for May 2010 examination, since only notifications/circulars issued up to 31st October, 2009 are relevant for May 2010 examination.
(3) Applicability of erstwhile Rule 3 for May 2010 examination
(a) Therefore, the erstwhile Rule 3 would be applicable for May 2010 examination. All the perquisites which were earlier taxable in the hands of the employee, only if the employer was not liable to pay fringe benefit tax, would now be taxable in the hands of the employee in all cases, since no employer is liable to pay fringe benefit tax for A.Y.2010-11.
(b) Rule 3(7), providing for valuation of “other fringe benefits and amenities”, is based on the terms of the provisions contained in the erstwhile clause (vi) of section 17(2). The Finance (No.2) Act, 2009 has amended section 17(2) by including certain other perquisites under clauses (vi) and (vii) of section 17(2). Consequently, the residual clause, namely, clause (viii) of section 17(2), now provides for taxing the value of any other fringe benefit or amenity as may be prescribed. Therefore, the Rule 3(7), prescribing the fringe benefits or amenities in terms of the erstwhile clause (vi) [now clause (viii)] of section 17(2)] have been given in the latest study material relevant for May 2010 examination.
Extension of last date for receipt of May-2010 CA Exam Forms - 5th March 2010
Important Announcement-Extension of last date for receipt of May-2010 CA Exam Forms
This is to inform that owing to delay in making available Application Forms for May-2010 Chartered Accountants Examiantions at some branches/Regional offices , the Competent Authority has decided to extend the last date for receipt of filled in Examination Forms ( without late fee of Rs.500/-) till 5th March,2010. Further to this, this is also to reiterate that no filled in examination form will be received after 5th March,2010 . ( G.Somasekhar)
Additional Secretary(Exams)
Source : http://icai.org/post.html?post_id=5494&c_id=240
This is to inform that owing to delay in making available Application Forms for May-2010 Chartered Accountants Examiantions at some branches/Regional offices , the Competent Authority has decided to extend the last date for receipt of filled in Examination Forms ( without late fee of Rs.500/-) till 5th March,2010. Further to this, this is also to reiterate that no filled in examination form will be received after 5th March,2010 . ( G.Somasekhar)
Additional Secretary(Exams)
Source : http://icai.org/post.html?post_id=5494&c_id=240
Sunday, February 21, 2010
Announcement Relating to AS-11-“The Effects of Changes in Foreign Exchange Rates”
Accounting Standard-11 relating to “The Effects of Changes in Foreign Exchange Rates” earlier prescribed under the Companies (Accounting Standards) Rules 2006 has been now amended by the Central Government, in terms of the powers conferred on them under the Companies Act, 1956, vide Notification dated 31st March, 2009. The said Notification contains an amendment i.e. a new Paragraph-46 to be inserted in the AS-11 earlier prescribed as aforementioned. The Notification so published by the Central Government is available at
http://www.icai.org/resource_file/15726mca193_and_194.pdf
It may be noted that the amendment as contained in the said Notification shall be applicable to corporates registered under the Companies Act, 1956.
As for entities other than those registered under the Companies Act, 1956, the Accounting Standard-11 as issued by the Institute shall continue to apply.
http://www.icai.org/resource_file/15726mca193_and_194.pdf
It may be noted that the amendment as contained in the said Notification shall be applicable to corporates registered under the Companies Act, 1956.
As for entities other than those registered under the Companies Act, 1956, the Accounting Standard-11 as issued by the Institute shall continue to apply.
Relaxation of 9 months study course period to converted to IPCC students
BOS/Announcement/227/10
February 5, 2010
An Important Announcement for Students of Erstwhile Intermediate/ Professional Education (Course – II)/ Professional Competence Course (PCC) who have mean while converted to Integrated Professional Competence Course (IPCC) – relaxation of nine months study course period to appear in the Integrated Professional Competence Course (IPCC) examination to be held in May, 2010 and onwards.
Eligibility to appear in the May, 2010 and onwards Integrated Professional Competence Examination (IPCE):
All students who have been registered for the erstwhile Intermediate under paragraph 2 or 2 A of schedule B to the Chartered Accountants Regulations 28 or who have been registered for the erstwhile Professional Education (Course-II) or who have been registered for the Professional Competence Course (PCC) are eligible for conversion to Integrated Professional Competence Course (IPCC) by paying the prescribed conversion fee along with the conversion application form obtained along with IPCC prospectus or down loaded from http://www.icai.org/resource_file/14262ipcc_re_regform.pdf - IPCC Re-Registration Form to be submitted to the concerned Regional Office for becoming eligible to appear in the May, 2010 and onwards examination before last date for submission of examination application form as notified from time to time.
Students so converted from erstwhile Intermediate/ Professional Education (Course – II)/ Professional Competence Course to Integrated Professional Competence Course (IPCC) and have completed minimum period of nine months from the date of registration in Intermediate/ Professional Education (Course – II) or completed nine months after joining the Professional Competence Course are permitted to appear in the Integrated Professional Competence Examination to be held in May, 2010 and onwards. However, they should successfully complete 35 hours Orientation Programme and also 100 hours Information Technology Training before the commencement of relevant Integrated Professional Competence Examination (IPCE).
CA.R.Devarajan
Director, Board of Studies
Source : http://www.icai.org/post.html?post_id=5453&c_id=219
February 5, 2010
An Important Announcement for Students of Erstwhile Intermediate/ Professional Education (Course – II)/ Professional Competence Course (PCC) who have mean while converted to Integrated Professional Competence Course (IPCC) – relaxation of nine months study course period to appear in the Integrated Professional Competence Course (IPCC) examination to be held in May, 2010 and onwards.
Eligibility to appear in the May, 2010 and onwards Integrated Professional Competence Examination (IPCE):
All students who have been registered for the erstwhile Intermediate under paragraph 2 or 2 A of schedule B to the Chartered Accountants Regulations 28 or who have been registered for the erstwhile Professional Education (Course-II) or who have been registered for the Professional Competence Course (PCC) are eligible for conversion to Integrated Professional Competence Course (IPCC) by paying the prescribed conversion fee along with the conversion application form obtained along with IPCC prospectus or down loaded from http://www.icai.org/resource_file/14262ipcc_re_regform.pdf - IPCC Re-Registration Form to be submitted to the concerned Regional Office for becoming eligible to appear in the May, 2010 and onwards examination before last date for submission of examination application form as notified from time to time.
Students so converted from erstwhile Intermediate/ Professional Education (Course – II)/ Professional Competence Course to Integrated Professional Competence Course (IPCC) and have completed minimum period of nine months from the date of registration in Intermediate/ Professional Education (Course – II) or completed nine months after joining the Professional Competence Course are permitted to appear in the Integrated Professional Competence Examination to be held in May, 2010 and onwards. However, they should successfully complete 35 hours Orientation Programme and also 100 hours Information Technology Training before the commencement of relevant Integrated Professional Competence Examination (IPCE).
CA.R.Devarajan
Director, Board of Studies
Source : http://www.icai.org/post.html?post_id=5453&c_id=219
Payment of Interest on Savings Bank Account on Daily Product Basis
Payment of Interest on Savings Bank Account on Daily Product Basis
RBI/2009-10/322
DBOD. No. Dir. BC 77/13.03.00/2009-10
February 19, 2010
All Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir
Payment of Interest on Savings Bank Account on Daily Product Basis
Please refer to our circular DBOD. No. Dir. BC.128/13.03.00/2008-09 dated April 24, 2009 advising banks that in view of the present satisfactory level of computerisation in commercial bank branches, it is proposed that payment of interest on savings bank accounts by scheduled commercial banks would be made on a daily product basis with effect from April 1, 2010. Further, banks were advised that in order to ensure a smooth transition, they may work out the modalities in this regard.
2. We advise that payment of interest on savings bank accounts may be made by banks on a daily product basis with effect from April 1, 2010.
Yours faithfully
(P. Vijaya Bhaskar)
Chief General Manager-in-Charge
RBI/2009-10/322
DBOD. No. Dir. BC 77/13.03.00/2009-10
February 19, 2010
All Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir
Payment of Interest on Savings Bank Account on Daily Product Basis
Please refer to our circular DBOD. No. Dir. BC.128/13.03.00/2008-09 dated April 24, 2009 advising banks that in view of the present satisfactory level of computerisation in commercial bank branches, it is proposed that payment of interest on savings bank accounts by scheduled commercial banks would be made on a daily product basis with effect from April 1, 2010. Further, banks were advised that in order to ensure a smooth transition, they may work out the modalities in this regard.
2. We advise that payment of interest on savings bank accounts may be made by banks on a daily product basis with effect from April 1, 2010.
Yours faithfully
(P. Vijaya Bhaskar)
Chief General Manager-in-Charge
Thursday, February 18, 2010
What to do when you fail an attempt or a number of attempts?
The popular advices for this question are:
· Sit and analyze where you have gone wrong
· Revise more
· Try a different strategy
· Buy a better reference book
· Attend different Coaching classes
The student does all or some of this and again fails! And again he or she is thrown into confusion. What the hell is happening in my life? He or She promptly enters into depression (some even think of suicide), his or her self-esteem takes a beating. Anything can take a beating but never your self-esteem. It is the real wealth and the only wealth you have. All concepts and precepts of religion and morality, success and failure, love and hatred is formed from this. Don’t lose this self-esteem at any cost. We Indians had (and still have to some extent) a tendency to lose our self-esteem at the first given chance. We wait for leaders, inspirers, Gandhis to come and lead us but little do we do an inner-think about ourselves and where we stand.
So let me dissect each of these popular advices to pieces.
“Sit and analyze where you have gone wrong”---It’s easy to say this by people who have cleared the exam or who are not in your shoes. You plain would not do such a thing. Your mind resists the idea of you having to do a post-mortem of the paper which you failed. Mind seeks pleasure always and an undisciplined mind seeks easy pleasure as it cannot stand denial of self-gratification. So sitting and analyzing and being self-judgmental requires a strong mind. If you have a really strong mind (don’t fool yourself, stand before the mirror and look whether you can face yourself) then you can go ahead with the post-mortem work.
“Revise more”—Yes, this is some what of a better advice. But this revision also has a strategy (Read my article on how to revise for success).Also, it is a bore to revise the same portions once enthusiastically read attempt after attempt. The student enters a kind of daze and yawns at the boredom of it all.
“Try a different strategy”—this is what I call a “Non-advice” advice. This looks like a good advice on the face of it but has no meaning. The person who is proffering this advice must be specific. What the heck is the meaning of “different strategy”? It is as good as saying to a person who says he/she is hungry, “Go eat food”. Doesn’t he/she know that?
Buying a better reference book or attending a coaching class is not a sure-shot remedy either. Many a reference book has been referred and many a failure has been encountered(and vice-versa also but the failed student always focuses on failure more and is ever-critical and bitter after his/her failure).The same is the case with Coaching centers.
So what do you do?
You have two options---
Option 1: Quit this whole farce called CA and lead a peaceful life elsewhere doing some other thing.
Option 2: Give the next attempt.
I’m not mentioning a 3rd more dangerous option: Suicide here as it is meaningless.
A sane student/human would go for the second option unless he or she feels that a mistake has really been committed by entering this course. In this context, it would not be out of place to mention that one must analyze one’s aptitude, intelligence level, enthusiasm, etc before taking up CA. And not blindly enter into this course and then later on spend good number years in Articleship and then finally leave this course in disillusionment. Can ICAI or your principal give back your youthful years?
Option 2 must be taken recourse after all this.
Fludity:
What most often weighs you down and brings you misery is the past, in the form of unnecessary attachments, repetitions of tired formulas, and the memory of old victories and defeats. You must consciously wage war against the past and force yourself to react in the present moment. Be ruthless on yourself; do not repeat the same tired methods. Sometimes you must force yourself to strike out in new directions, even if they involve risk. What you may lose in comfort and security, you will gain in surprise, making it harder for your inner failings to tell you what to do. Wage guerilla war on your mind, allowing no static lines of defense, no exposed citadels - make everything fluid and mobile.
If you want cut off friendships which are a burden on your time, change your residence, Change your reference books, Change your coaching centre, change whatever darned thing or things you need to change but CHANGE you must. I will not spoon-feed you here on what you need to do to keep yourself fluid and mobile. I’m just going to throw some hints and then you will be able to catch the whiff of it all. I’m showing a branch and the moon shines between the branch but I don’t show the moon(as it is not possible),I just show the branches and suddenly you have an eureka moment(which is special for you) and you say, “YES! I have found my moon” This is all a true teacher can do. This is all a true teacher should do. Unfortunately we have lot of spoon feeders and they make us weak.
This is an attitude of mind which you must develop to counteract failures. Being fluid is an art.
Calmness:
Learn to emotionally detach from the failure. Say to yourself some student has failed,its not me(even though you keep your marksheet before you!) and then start dissecting like a bio-lab dissector the failure. At the back of you mind, you had a cringing feeling you would not make it in costing yet kept a smiling face before friends cheating everyone, till the D-Day when the results came and you flopped in Costing and then joined the chorus of students who bashed ICAI for the poor results. You had some temporary relief. No doubt!.. but then the gnawing feeling is not over. You cannot cheat yourself, you did a great job cheating everyone around you but you fail before yourself.
So, you pounce on Costing during this calm stage, not as yourself but as analyzing some other student who had failed. It’s always easy to point out mistakes of someone else than to be truthful with oneself and face the music. You have to fool your mind (and mind is easily malleable and ductile! You can bend it to your will, you can fool it easily).You do the post-mortem work now. Anyone who starts with the postmortem work directly without proper mental preparation will not get proper results.And people who claim that they have the mental prowess to analyze their results unbiased are again fooling themselves.No one can really be totally unbiased unless they have a mental dissonance purposely created like this.
If your name is Anirban and you failed last attempt.You take your marksheet and say to yourself, "Why did Anirban1 fail? This is Anirban 2 asking this."Say this actually to your mind.This is not something stupid,this has scientific basis on the concept called cognitive dissonance created by Muller and they use precisely this technique to cure terminal failures in life.
This is at the end of these 2 stages—Fluidity first, then at the end of Calmness.To get the calmness you may meditate,or take a break or go for a vacation completely forgetting all this failure and CA or do something which totally distracts the mind from it temporarily(dont go and drink in the local pub to drown your sorrows in the booze! That is stupid!Its not gonna work!)
That’s about it! This method will make you slowly conquer ground and beat the failure and transmute it alchemically to success.Believe me,it works and has worked for soem of my friends.I helped them with it.
Always great things in life are either free or simple to attain. Everything else you know what to do. Buy new reference books, go to new coaching classes, etc these run-of-the-mill options which people dole out in general to those who fail, you can choose judiciously only after you have carefully destroyed your old weak self which made the mistakes in the first place. You now feel like a new student who starts afresh like a Phoenix which rises from ashes.
Clarity comes forth from simplicity, so un-clutter your life and be fluid and yet retain an unemotional calmness. CA exam is something man-made, so don’t get too worked up or emotional about it.
Then follow what your mind says as true and beneficial. Don’t be cowered by peer-pressure here. Always while in postmortem work take the counsel of one good/genuine friend who is interested in your welfare. Don’t let emotions cover your judgment in this as friends are the first people who will be jealous about your progress, rare is a good friend! And if you have a good friend, you are blessed.
Keep yourself inspired always. Let your room emanate the fragrance of self-confidence. Stick messages of confidence. Keep books of self-help in your vicinity, even if you don’t read them all, their vibrations help.
Keep yourself uncluttered and organized,bold and confident,rise like a thousand lions and elephants in strength.Dont cower down and die a daily death of a coward, live once and die once bravely!
Finally, after all this post-mortem work is done and you have identified problem areas: You immediately focus on resolving those areas. Don’t postpone this.
Then follow the advices I have given in my earlier(and future) articles, regarding revision, positive crisis situation (which should now be bereft of the burden of past failures),strategies to adopt for various subjects,etc. In my profile home page you will find a link to all my articles and postings in forum. Have a look at them all.Best is yet to come!
God Bless Ya!
· Sit and analyze where you have gone wrong
· Revise more
· Try a different strategy
· Buy a better reference book
· Attend different Coaching classes
The student does all or some of this and again fails! And again he or she is thrown into confusion. What the hell is happening in my life? He or She promptly enters into depression (some even think of suicide), his or her self-esteem takes a beating. Anything can take a beating but never your self-esteem. It is the real wealth and the only wealth you have. All concepts and precepts of religion and morality, success and failure, love and hatred is formed from this. Don’t lose this self-esteem at any cost. We Indians had (and still have to some extent) a tendency to lose our self-esteem at the first given chance. We wait for leaders, inspirers, Gandhis to come and lead us but little do we do an inner-think about ourselves and where we stand.
So let me dissect each of these popular advices to pieces.
“Sit and analyze where you have gone wrong”---It’s easy to say this by people who have cleared the exam or who are not in your shoes. You plain would not do such a thing. Your mind resists the idea of you having to do a post-mortem of the paper which you failed. Mind seeks pleasure always and an undisciplined mind seeks easy pleasure as it cannot stand denial of self-gratification. So sitting and analyzing and being self-judgmental requires a strong mind. If you have a really strong mind (don’t fool yourself, stand before the mirror and look whether you can face yourself) then you can go ahead with the post-mortem work.
“Revise more”—Yes, this is some what of a better advice. But this revision also has a strategy (Read my article on how to revise for success).Also, it is a bore to revise the same portions once enthusiastically read attempt after attempt. The student enters a kind of daze and yawns at the boredom of it all.
“Try a different strategy”—this is what I call a “Non-advice” advice. This looks like a good advice on the face of it but has no meaning. The person who is proffering this advice must be specific. What the heck is the meaning of “different strategy”? It is as good as saying to a person who says he/she is hungry, “Go eat food”. Doesn’t he/she know that?
Buying a better reference book or attending a coaching class is not a sure-shot remedy either. Many a reference book has been referred and many a failure has been encountered(and vice-versa also but the failed student always focuses on failure more and is ever-critical and bitter after his/her failure).The same is the case with Coaching centers.
So what do you do?
You have two options---
Option 1: Quit this whole farce called CA and lead a peaceful life elsewhere doing some other thing.
Option 2: Give the next attempt.
I’m not mentioning a 3rd more dangerous option: Suicide here as it is meaningless.
A sane student/human would go for the second option unless he or she feels that a mistake has really been committed by entering this course. In this context, it would not be out of place to mention that one must analyze one’s aptitude, intelligence level, enthusiasm, etc before taking up CA. And not blindly enter into this course and then later on spend good number years in Articleship and then finally leave this course in disillusionment. Can ICAI or your principal give back your youthful years?
Option 2 must be taken recourse after all this.
Fludity:
What most often weighs you down and brings you misery is the past, in the form of unnecessary attachments, repetitions of tired formulas, and the memory of old victories and defeats. You must consciously wage war against the past and force yourself to react in the present moment. Be ruthless on yourself; do not repeat the same tired methods. Sometimes you must force yourself to strike out in new directions, even if they involve risk. What you may lose in comfort and security, you will gain in surprise, making it harder for your inner failings to tell you what to do. Wage guerilla war on your mind, allowing no static lines of defense, no exposed citadels - make everything fluid and mobile.
If you want cut off friendships which are a burden on your time, change your residence, Change your reference books, Change your coaching centre, change whatever darned thing or things you need to change but CHANGE you must. I will not spoon-feed you here on what you need to do to keep yourself fluid and mobile. I’m just going to throw some hints and then you will be able to catch the whiff of it all. I’m showing a branch and the moon shines between the branch but I don’t show the moon(as it is not possible),I just show the branches and suddenly you have an eureka moment(which is special for you) and you say, “YES! I have found my moon” This is all a true teacher can do. This is all a true teacher should do. Unfortunately we have lot of spoon feeders and they make us weak.
This is an attitude of mind which you must develop to counteract failures. Being fluid is an art.
Calmness:
Learn to emotionally detach from the failure. Say to yourself some student has failed,its not me(even though you keep your marksheet before you!) and then start dissecting like a bio-lab dissector the failure. At the back of you mind, you had a cringing feeling you would not make it in costing yet kept a smiling face before friends cheating everyone, till the D-Day when the results came and you flopped in Costing and then joined the chorus of students who bashed ICAI for the poor results. You had some temporary relief. No doubt!.. but then the gnawing feeling is not over. You cannot cheat yourself, you did a great job cheating everyone around you but you fail before yourself.
So, you pounce on Costing during this calm stage, not as yourself but as analyzing some other student who had failed. It’s always easy to point out mistakes of someone else than to be truthful with oneself and face the music. You have to fool your mind (and mind is easily malleable and ductile! You can bend it to your will, you can fool it easily).You do the post-mortem work now. Anyone who starts with the postmortem work directly without proper mental preparation will not get proper results.And people who claim that they have the mental prowess to analyze their results unbiased are again fooling themselves.No one can really be totally unbiased unless they have a mental dissonance purposely created like this.
If your name is Anirban and you failed last attempt.You take your marksheet and say to yourself, "Why did Anirban1 fail? This is Anirban 2 asking this."Say this actually to your mind.This is not something stupid,this has scientific basis on the concept called cognitive dissonance created by Muller and they use precisely this technique to cure terminal failures in life.
This is at the end of these 2 stages—Fluidity first, then at the end of Calmness.To get the calmness you may meditate,or take a break or go for a vacation completely forgetting all this failure and CA or do something which totally distracts the mind from it temporarily(dont go and drink in the local pub to drown your sorrows in the booze! That is stupid!Its not gonna work!)
That’s about it! This method will make you slowly conquer ground and beat the failure and transmute it alchemically to success.Believe me,it works and has worked for soem of my friends.I helped them with it.
Always great things in life are either free or simple to attain. Everything else you know what to do. Buy new reference books, go to new coaching classes, etc these run-of-the-mill options which people dole out in general to those who fail, you can choose judiciously only after you have carefully destroyed your old weak self which made the mistakes in the first place. You now feel like a new student who starts afresh like a Phoenix which rises from ashes.
Clarity comes forth from simplicity, so un-clutter your life and be fluid and yet retain an unemotional calmness. CA exam is something man-made, so don’t get too worked up or emotional about it.
Then follow what your mind says as true and beneficial. Don’t be cowered by peer-pressure here. Always while in postmortem work take the counsel of one good/genuine friend who is interested in your welfare. Don’t let emotions cover your judgment in this as friends are the first people who will be jealous about your progress, rare is a good friend! And if you have a good friend, you are blessed.
Keep yourself inspired always. Let your room emanate the fragrance of self-confidence. Stick messages of confidence. Keep books of self-help in your vicinity, even if you don’t read them all, their vibrations help.
Keep yourself uncluttered and organized,bold and confident,rise like a thousand lions and elephants in strength.Dont cower down and die a daily death of a coward, live once and die once bravely!
Finally, after all this post-mortem work is done and you have identified problem areas: You immediately focus on resolving those areas. Don’t postpone this.
Then follow the advices I have given in my earlier(and future) articles, regarding revision, positive crisis situation (which should now be bereft of the burden of past failures),strategies to adopt for various subjects,etc. In my profile home page you will find a link to all my articles and postings in forum. Have a look at them all.Best is yet to come!
God Bless Ya!
SEBI-cleared IPOs out of 25% public float rule
Companies such as Reliance Infratel and IL&FS Transportation, which have got the regulator’s approval for initial public offers(IPOs) won’t be subject to the 25% mandatory public float proposed by the finance ministry, even if the much-awaited rule is implemented before they open their IPOs for bids.
The increased public holding proposal, first mooted by the ministry in 2008 and then by Pranab Mukherjee in his budget speech on July 6 last year, may be implemented from April, a senior official at the ministry said. But there is no official deadline yet on it. Those companies that are already trading on stock exchanges will get between 3-5 years to comply with the minimum 25% listing requirement, the official said.
“The average public float in Indian listed companies is less than 15%,” Mr Mukherjee had said in his budget speech. “Deep non-manipulable markets require larger and diversified public shareholdings. This requirement should be uniformly applied to the private sector as well as listed public sector companies.”
Many Indian companies, including Reliance Power and Wipro, have a public float of less than 25% which probably doesn’t reflect the true market interest since a lot of global funds avoid buying into companies which have a low float. The government’s measure could boost the confidence of global investors and reduce the chances of price manipulation in stocks.
The increased public holding proposal, first mooted by the ministry in 2008 and then by Pranab Mukherjee in his budget speech on July 6 last year, may be implemented from April, a senior official at the ministry said. But there is no official deadline yet on it. Those companies that are already trading on stock exchanges will get between 3-5 years to comply with the minimum 25% listing requirement, the official said.
“The average public float in Indian listed companies is less than 15%,” Mr Mukherjee had said in his budget speech. “Deep non-manipulable markets require larger and diversified public shareholdings. This requirement should be uniformly applied to the private sector as well as listed public sector companies.”
Many Indian companies, including Reliance Power and Wipro, have a public float of less than 25% which probably doesn’t reflect the true market interest since a lot of global funds avoid buying into companies which have a low float. The government’s measure could boost the confidence of global investors and reduce the chances of price manipulation in stocks.
Saturday, February 6, 2010
Meeting of Articles at 10AM on 8th February, 2009
All the Articles are invited to Meeting at Office (35, NS Marg, Darya Ganj, New Delhi-2) on 8th February, 2009 at 10 AM.
Regards.
Regards.
Friday, February 5, 2010
NTPC issue scrapes through with support from SBI, LIC
Foreign institutional investors and India’s retail investors gave a thumbs down to the prestigious Rs 8,300-crore follow-on public offer of NTPC, the navratna, which owns country’s 20% power generation capacity. The issue managed to sail through and fully subscribed primarily due to the support from the state-owned banks and insurance monolith LIC.
Following the poor response, the senior officials from the company and the department of disinvestment went into huddle to find out the reasons, said a senior executive in the government. “The actual reasons of this poor show can be attributed to method of divestment — French auction, or the sudden change in the market sentiment or the poor performance by the investment bankers is yet to be known, but it will impact all the future issue by the state-owned companies,” said the official.
Despite huge support from state-owned financial firms, the issue was subscribed only 1.2 times. It has received a little over 100,000 applications from the retail investors. Some of the recent public issues of smaller companies have received much better retail response, said a senior executive from the company. DB Corp’s recent issue of Rs 1,500 crore had received 73,000 applications, according to Prime Data base. Similarly, JSW Energy issue received 87,000 retail applications.
The official said that the both forthcoming issues Rural Electrification Corporation and NMDC, which are slated to open on February 19 and March 10 respectively, will have to come under the French auction route. REC has already taken approval from Sebi to complete the FPO under French auction route, said the official and added NMDC has filed the draft red herring prospectus with Sebi under the same route. Now, it is difficult to change the method to book building route, he added.
Source : http://economictimes.indiatimes.com/NTPC-issue-scrapes-through-with-support-from-SBI-LIC/articleshow/5540681.cms
Following the poor response, the senior officials from the company and the department of disinvestment went into huddle to find out the reasons, said a senior executive in the government. “The actual reasons of this poor show can be attributed to method of divestment — French auction, or the sudden change in the market sentiment or the poor performance by the investment bankers is yet to be known, but it will impact all the future issue by the state-owned companies,” said the official.
Despite huge support from state-owned financial firms, the issue was subscribed only 1.2 times. It has received a little over 100,000 applications from the retail investors. Some of the recent public issues of smaller companies have received much better retail response, said a senior executive from the company. DB Corp’s recent issue of Rs 1,500 crore had received 73,000 applications, according to Prime Data base. Similarly, JSW Energy issue received 87,000 retail applications.
The official said that the both forthcoming issues Rural Electrification Corporation and NMDC, which are slated to open on February 19 and March 10 respectively, will have to come under the French auction route. REC has already taken approval from Sebi to complete the FPO under French auction route, said the official and added NMDC has filed the draft red herring prospectus with Sebi under the same route. Now, it is difficult to change the method to book building route, he added.
Source : http://economictimes.indiatimes.com/NTPC-issue-scrapes-through-with-support-from-SBI-LIC/articleshow/5540681.cms
Thursday, February 4, 2010
Compliance with FDI norms-Half yearly certificate from Statutory Auditors of NBFCs
Compliance with FDI norms-Half yearly certificate from Statutory Auditors of NBFCs
RBI/2009-10/304
DNBS (PD).CC. No 167 /03.10.01 /2009-10
February 04, 2010
All Non-Banking Financial Companies
Compliance with FDI norms-Half yearly certificate from Statutory Auditors of NBFCs
NBFCs having FDI whether under automatic route or under approval route have to comply with the stipulated minimum capitalisation norms and other relevant terms and conditions, as amended from time to time under which FDI is permitted.
2. As such these NBFCs are required to submit a certificate from their Statutory Auditors on half yearly basis (half year ending September and March) certifying compliance with the existing terms and conditions of FDI. Such certificate may be submitted not later than one month from the close of the half year to which the certificate pertains, to the Regional Office in whose jurisdiction the head office of the company is registered.
Yours faithfully,
(A.S.Rao)
Chief General Manager In-Charge
RBI/2009-10/304
DNBS (PD).CC. No 167 /03.10.01 /2009-10
February 04, 2010
All Non-Banking Financial Companies
Compliance with FDI norms-Half yearly certificate from Statutory Auditors of NBFCs
NBFCs having FDI whether under automatic route or under approval route have to comply with the stipulated minimum capitalisation norms and other relevant terms and conditions, as amended from time to time under which FDI is permitted.
2. As such these NBFCs are required to submit a certificate from their Statutory Auditors on half yearly basis (half year ending September and March) certifying compliance with the existing terms and conditions of FDI. Such certificate may be submitted not later than one month from the close of the half year to which the certificate pertains, to the Regional Office in whose jurisdiction the head office of the company is registered.
Yours faithfully,
(A.S.Rao)
Chief General Manager In-Charge
Standard warning in Advertisements by Mutual Funds
SEBI/IMD/CIR No. 17/ 193751/2010
February 04, 2010
All Mutual Funds, Asset Management Companies (AMCs)
Sub: Standard warning in Advertisements by Mutual Funds
1. Please refer to clause 2 of the circular SEBI/MFD/CIR No.6/ 12357/03 dated June
26, 2003 and SEBI Circular No. SEBI/IMD/CIR No.12/118340/08 dated February
26, 2008 on Advertisements through Audio-Visual media and Standard warning in
Advertisements by Mutual Funds, respectively.
2. As per the present guidelines, in advertisements through audio-visual media like
television, a statement “Mutual Fund investments are subject to market risks, read
the offer document carefully before investing” is required to be displayed on the
screen for at least 5 seconds and be accompanied by a voice over reiteration.
However, it has been observed that in some cases the visual and voice over were
run for less than 5 seconds, or if the visual stayed for 5 seconds the voice over
either started late or ended early or both. In some cases extra words were inserted
in the visual and voice over. As a result, the warning was rendered unintelligible to
the viewer/listener.
3. In order to improve the manner in which the said message is conveyed to the
investors it has been decided that with effect from May 01, 2010:
i. The standard warning in audio-visual advertisement shall be displayed as
“Mutual Fund investments are subject to market risks, read all scheme related
documents carefully”.
ii. No addition or deletion of words shall be made in the standard warning.
4. It is evident from the circular dated June 26, 2003, that the visual is to be
accompanied by voice over. It is therefore re-emphasized that both the visual and
the voice over of the standard warning will be run for at least 5 seconds.
5. All other conditions specified in the above mentioned circular remain unchanged.
6. All mutual funds shall comply with the above requirements in letter and spirit.
7. This circular is issued in exercise of powers conferred under Section 11 (1) of the
Securities and Exchange Board of India Act, 1992, read with the provisions of
Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996, to protect the
interests of investors in securities and to promote the development of, and to
regulate the securities market.
February 04, 2010
All Mutual Funds, Asset Management Companies (AMCs)
Sub: Standard warning in Advertisements by Mutual Funds
1. Please refer to clause 2 of the circular SEBI/MFD/CIR No.6/ 12357/03 dated June
26, 2003 and SEBI Circular No. SEBI/IMD/CIR No.12/118340/08 dated February
26, 2008 on Advertisements through Audio-Visual media and Standard warning in
Advertisements by Mutual Funds, respectively.
2. As per the present guidelines, in advertisements through audio-visual media like
television, a statement “Mutual Fund investments are subject to market risks, read
the offer document carefully before investing” is required to be displayed on the
screen for at least 5 seconds and be accompanied by a voice over reiteration.
However, it has been observed that in some cases the visual and voice over were
run for less than 5 seconds, or if the visual stayed for 5 seconds the voice over
either started late or ended early or both. In some cases extra words were inserted
in the visual and voice over. As a result, the warning was rendered unintelligible to
the viewer/listener.
3. In order to improve the manner in which the said message is conveyed to the
investors it has been decided that with effect from May 01, 2010:
i. The standard warning in audio-visual advertisement shall be displayed as
“Mutual Fund investments are subject to market risks, read all scheme related
documents carefully”.
ii. No addition or deletion of words shall be made in the standard warning.
4. It is evident from the circular dated June 26, 2003, that the visual is to be
accompanied by voice over. It is therefore re-emphasized that both the visual and
the voice over of the standard warning will be run for at least 5 seconds.
5. All other conditions specified in the above mentioned circular remain unchanged.
6. All mutual funds shall comply with the above requirements in letter and spirit.
7. This circular is issued in exercise of powers conferred under Section 11 (1) of the
Securities and Exchange Board of India Act, 1992, read with the provisions of
Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996, to protect the
interests of investors in securities and to promote the development of, and to
regulate the securities market.
Adj of “Adv FBT” for AY 2010-11 against Advance Tax
CIRCULAR NO. 2/2010.
Dated 29/01/2010
F. N0.385/05/2010-IT (B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
The Finance Act, 2005 introduced a levy namely Fringe Benefit Tax (FBT)
on the value of certain fringe benefits as contained in Chapter XII H (Sections 115
W to 115 WL) of Income Tax Act, 1961. By the Finance (No. 2) Act, 2009 a new
Section 115 WM was inserted to abolish the FBT with effect from Assessment
Year (A.Y.) 2010-11. Consequently, benefits given to employees are taxed as
perquisites in the hands of employees in terms of amendments to Clause 2 of
Section 17 of Income Tax Act, 1961. However, during the current Financial Year
2009-10 some assessees have paid “advance tax in respect of fringe benefits” for
Assessment Year 2010-11. In such cases the Board has decided that any
installment of “advance tax paid in respect of fringe benefits” for A.Y. 2010-11
shall be treated as Advance Tax paid by assessee concerned for A.Y. 2010-11.
The assessee can adjust such sum against its advance tax obligation in respect of
income for A.Y. 2010-11 or in case of loss etc claim such payment as refund as
advance tax paid in A.Y. 2010-11.
Dated 29/01/2010
F. N0.385/05/2010-IT (B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
The Finance Act, 2005 introduced a levy namely Fringe Benefit Tax (FBT)
on the value of certain fringe benefits as contained in Chapter XII H (Sections 115
W to 115 WL) of Income Tax Act, 1961. By the Finance (No. 2) Act, 2009 a new
Section 115 WM was inserted to abolish the FBT with effect from Assessment
Year (A.Y.) 2010-11. Consequently, benefits given to employees are taxed as
perquisites in the hands of employees in terms of amendments to Clause 2 of
Section 17 of Income Tax Act, 1961. However, during the current Financial Year
2009-10 some assessees have paid “advance tax in respect of fringe benefits” for
Assessment Year 2010-11. In such cases the Board has decided that any
installment of “advance tax paid in respect of fringe benefits” for A.Y. 2010-11
shall be treated as Advance Tax paid by assessee concerned for A.Y. 2010-11.
The assessee can adjust such sum against its advance tax obligation in respect of
income for A.Y. 2010-11 or in case of loss etc claim such payment as refund as
advance tax paid in A.Y. 2010-11.
PE-II,PCE,IPCE & Final Exam - May2010
ICAI has announced the Schedule for the May 2010 examination.
Applications together with the prescribed fee by Demand Draft of any Scheduled Bank may be sent so as to reach the Additional Secretary (Examinations) at New Delhi not later than 26th FEBRUARY,2010. However, applications will also be received direct by Delhi Office after 26th FEBRUARY,2010 and upto 5th MARCH,2010 with late fee of Rs. 500/-.
Alternatively the candidate may fill up the examination application form online at http://icaiexam.icai.org from 5th FEBRUARY,2010 to 5th MARCH,2010 and remit the fee online by using credit card, either VISA or Master Card.
For detailed Schedule of Exams, Fee & centres, reffer following link :
http://icai.org/resource_file/17901NOTIFICATION__MAY-2010_Final.pdf
Applications together with the prescribed fee by Demand Draft of any Scheduled Bank may be sent so as to reach the Additional Secretary (Examinations) at New Delhi not later than 26th FEBRUARY,2010. However, applications will also be received direct by Delhi Office after 26th FEBRUARY,2010 and upto 5th MARCH,2010 with late fee of Rs. 500/-.
Alternatively the candidate may fill up the examination application form online at http://icaiexam.icai.org from 5th FEBRUARY,2010 to 5th MARCH,2010 and remit the fee online by using credit card, either VISA or Master Card.
For detailed Schedule of Exams, Fee & centres, reffer following link :
http://icai.org/resource_file/17901NOTIFICATION__MAY-2010_Final.pdf
Wednesday, February 3, 2010
Roadmap for Convergence to IFRS by MCA
The Core Group, constituted by the Ministry of Corporate Affairs for convergence of Indian Accounting Standards with International Financial Reporting Standards (IFRS) from April, 2011, that held its meeting on 11th January 2010 agreed that in view of the roadmap for achieving convergence, there will be two separate sets of Accounting Standards u/s Section 211(3C) of the Companies Act, 1956.
First set would comprise of the Indian Accounting Standards which are converged with the IFRSs which shall be applicable to the specified class of companies. The second set would comprise of the existing Indian Accounting Standards and would be applicable to other companies, including Small and Medium Companies (SMCs).
The first set of Accounting Standards (i.e. converged accounting standards) will be applied to specified class of companies in phases:
(a) Phase-I:- The following categories of companies will convert their opening balance sheets as at 1st April, 2011, if the financial year commences on or after 1st April, 2011 in compliance with the notified accounting standards which are convergent with IFRS. These companies are:-
a. Companies which are part of NSE – Nifty 50
b. Companies which are part of BSE - Sensex 30
c. Companies whose shares or other securities are listed on stock exchanges outside India
d. Companies, whether listed or not, which have a net worth in excess of Rs.1,000 crores.
(b) Phase-II :- The companies, whether listed or not, having a net worth exceeding Rs. 500 crores but not exceeding Rs. 1,000 crores will convert their opening balance sheet as at 1st April, 2013, if the financial year commences on or after 1st April, 2013 in compliance with the notified accounting standards which are convergent with IFRS.
(c) Phase-III :- Listed companies which have a net worth of Rs. 500 crores or less will convert their opening balance sheet as at 1st April, 2014, if the financial year commences on or after 1st April, 2014, whichever is later, in compliance with the notified accounting standards which are convergent with IFRS.
When the accounting year ends on a date other than 31st March, the conversion of the opening Balance Sheet will be made in relation to the first Balance Sheet which is made on a date after 31st March.
Companies which fall in the following categories will not be required to follow the notified accounting standards which are converged with the IFRS (though they may voluntarily opt to do so) but need to follow only the notified accounting standards which are not converged with the IFRS. These companies are: -
(a) Non-listed companies which have a net worth of Rs. 500 crores or less and whose shares or other securities are not listed on Stock Exchanges outside India.
(b) Small and Medium Companies (SMCs).
Separate roadmap for banking and insurance companies will be submitted by the Sub-Group I in consultation with the concerned regulators by 28th February, 2010.
The draft of the Companies (Amendment) Bill, proposing for changes to the Companies Act, 1956 will be prepared by February, 2010 incorporating the recommendation of Sub-Group 1 Report.
Revised Schedule VI to the Companies Act, 1956 according to the converged Accounting Standards has been submitted by the ICAI to NACAS which, after review, will submit to the Ministry by 31st January, 2010. Amendments to Schedule XIV will also be made in a time bound manner.
In respect of the converged Accounting Standards, the Chairman of the Accounting Standards Board of ICAI will submit the converged version of Accounting Standards to NACAS from time to time for recommendations and onward submission to Ministry. However, convergence of all the accounting standards will be completed by ICAI by 31st March, 2010and NACAS will submit its recommendations to the Ministry by 30th April 2010
First set would comprise of the Indian Accounting Standards which are converged with the IFRSs which shall be applicable to the specified class of companies. The second set would comprise of the existing Indian Accounting Standards and would be applicable to other companies, including Small and Medium Companies (SMCs).
The first set of Accounting Standards (i.e. converged accounting standards) will be applied to specified class of companies in phases:
(a) Phase-I:- The following categories of companies will convert their opening balance sheets as at 1st April, 2011, if the financial year commences on or after 1st April, 2011 in compliance with the notified accounting standards which are convergent with IFRS. These companies are:-
a. Companies which are part of NSE – Nifty 50
b. Companies which are part of BSE - Sensex 30
c. Companies whose shares or other securities are listed on stock exchanges outside India
d. Companies, whether listed or not, which have a net worth in excess of Rs.1,000 crores.
(b) Phase-II :- The companies, whether listed or not, having a net worth exceeding Rs. 500 crores but not exceeding Rs. 1,000 crores will convert their opening balance sheet as at 1st April, 2013, if the financial year commences on or after 1st April, 2013 in compliance with the notified accounting standards which are convergent with IFRS.
(c) Phase-III :- Listed companies which have a net worth of Rs. 500 crores or less will convert their opening balance sheet as at 1st April, 2014, if the financial year commences on or after 1st April, 2014, whichever is later, in compliance with the notified accounting standards which are convergent with IFRS.
When the accounting year ends on a date other than 31st March, the conversion of the opening Balance Sheet will be made in relation to the first Balance Sheet which is made on a date after 31st March.
Companies which fall in the following categories will not be required to follow the notified accounting standards which are converged with the IFRS (though they may voluntarily opt to do so) but need to follow only the notified accounting standards which are not converged with the IFRS. These companies are: -
(a) Non-listed companies which have a net worth of Rs. 500 crores or less and whose shares or other securities are not listed on Stock Exchanges outside India.
(b) Small and Medium Companies (SMCs).
Separate roadmap for banking and insurance companies will be submitted by the Sub-Group I in consultation with the concerned regulators by 28th February, 2010.
The draft of the Companies (Amendment) Bill, proposing for changes to the Companies Act, 1956 will be prepared by February, 2010 incorporating the recommendation of Sub-Group 1 Report.
Revised Schedule VI to the Companies Act, 1956 according to the converged Accounting Standards has been submitted by the ICAI to NACAS which, after review, will submit to the Ministry by 31st January, 2010. Amendments to Schedule XIV will also be made in a time bound manner.
In respect of the converged Accounting Standards, the Chairman of the Accounting Standards Board of ICAI will submit the converged version of Accounting Standards to NACAS from time to time for recommendations and onward submission to Ministry. However, convergence of all the accounting standards will be completed by ICAI by 31st March, 2010and NACAS will submit its recommendations to the Ministry by 30th April 2010
Tuesday, February 2, 2010
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Welcome to the Blog - Hingorani M & Co., Chartered Accountants, Darya Ganj, New Delhi-110002
Welcome the Blog - Hingorani M & Co., Chartered Accountants, Darya Ganj, New Delhi-110002
This Blog will be used to send/feed useful information relating to Amendments/Circulars/Notifications etc relating to various Taxation & other Laws as well as for other related informations for Articles in our firm.
This Blog will be used to send/feed useful information relating to Amendments/Circulars/Notifications etc relating to various Taxation & other Laws as well as for other related informations for Articles in our firm.
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