Conne K t …. April 2011. CONTENTS News Room 2 Value Creation 3 Corporate Watch 5 Legal Alley 7 Due dates 10. Registration of TAN made more user friendly. Consolidated TDS/TCS file requested online is also available for download
News Room 2
Value Creation 3
Corporate Watch 5
Legal Alley 7
Due dates 10
The deductors/collectors can register their TANs online. Authenticated access (through user ID and password) is provided to registered deductors/collectors. On login, the following feature are made available to the deductors/ collectors:
i. Request for quarterly consolidated TDS/TCS statement.
ii. View status and download consolidated TDS/TCS statement
iii. Bulk upload of Form 15CA records.
iv. Update of TAN registration demographic and contact details.
.Govt may hike penalty for improper use of names to 1000 times
The government is mulling hiking penalty for improper use of names and emblems conveying state patronage or ownership for the purpose of professional and commercial gains to Rs 5 Lakh. At present, the penalty for violating the provisions of the Emblems and Names (Prevention of Improper Use) of 1950 is only Rs 500. Indiscriminate use of names, flags and emblems misleads the consumers, hence, it is necessary to impose higher fine as some offenders are big corporations and institutions who get away easily by paying existing meagre penalty of Rs 500.News Room
4G rollout likely in India by next year
Even as third generation (3G) mobile telephony is still at a pilot stage, technology players are hopeful that the more advanced 4G will be here sooner than later due to its sheer economic advantage over the former besides its easy upgradability on the existing infrastructure. The 4G is likely to be in India sooner than later, as early as next year, because it is economically more advantageous than 3G, apart as it can be easily upgraded on the existing infrastructure.
India among world’s top 7 economies under G-20 scanner
The G-20 on Friday announced that International Monetary Fund (IMF) would review policies of the world’s seven largest economies, including India and China , with the objective of rectifying flaws before they imperil growth. The US, Japan, Germany, France and Britain are the other five countries that influence the global economy.
Merger/acquisition regime to be effective from June 1
The regulations governing mergers, acquisitions and combinations under the Competition Act would be finalised by May 1, and implemented from June 1. The revised draft of regulations is in the final stages and the notification is expected to be finalised by May 1.
Soon PAN may be mandatory for Cash Purchase Sale of bullion or jewellery and Cash Payment of life insurance premium
The income tax (I-T) department may make quoting of PAN in documents for sale and purchase of bullion or jewellery involving cash transfer of Rs 500,000 or more mandatory. PAN may also be required for cash payment of Rs 100,000 or more as life insurance premium, amid concerns that insurgents may be parking funds in high-value insurance policies. The department is also considering changes in the limits for cash payment for foreign travel. At present, the cap is Rs 25,000, including fare, the fee of a travel agent/tour operator and purchase of foreign currency
Govt may allow 100 per cent foreign direct investment in sea plane operations
Government is planning 100 per cent foreign direct investment in sea plane operations as there is scope of phenomenal growth of sea plane, general aviation and helicopter travel. With India having a long coast line, there is a need for concerted efforts to promote sea plane operations and they are significant for the economy of islands like Anadaman and Nicobar Islands and Lakshadweep
U.S. companies face the sixth- highest effective tax rate in the world
U.S. companies face the sixth- highest effective tax rate in the world, according to a study by PricewaterhouseCoopers LLP. The tax rate for the largest U.S. companies between 2006 and 2009 was 27.7 percent, compared with a non-U.S. average of 19.5 percent, according to the study released today. Companies based in Japan, Morocco, Italy, Indonesia and Germany faced higher tax rates. Excluding the U.S., companies based in industrialized countries had an average rate of 22.6 percent.
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The revision revolves around making the financial statements more meaningful to the user. The information that is necessary has been specified as such and it has also been provided that a balance between the necessary information and the excessive information (which may not assist users of the financial statements) needs to be worked out to maintain the relevance of the presentation. Companies will need to make disclosures required under the accounting standards and other statutes in addition to those required under the revised Schedule VI. However, if any statute or the accounting standard requires change in the treatment or disclosure in the financial statements, such accounting standard or statute will have an overriding effect i.e unlike earlier Schedule VI, revised Schedule VI allows for such requirements to prevail over its requirements.
There are other requirements which appear to have been laid out to make the revised Schedule VI tune with the IFRS. The earlier concept of providing the break up information of amounts disclosed in the main balance sheet and profit and loss account as schedules has been eliminated and now such schedules and information shall be provided in the notes to accounts and should be cross referred to that item on the face of balance sheet/profit and loss account.
In addition, depending upon the turnover of the company, the figures appearing in the Financial Statements may be rounded off to nearest hundreds, thousands, lakhs, millions, crores or decimals thereof. Once a unit of measurement is used, is should be used uniformly in the Financial Statements.
Except in the case of the first Financial Statements laid before the Company (after its Incorporation) the corresponding amounts (comparatives) for the immediately preceding reporting period for all items shown in Financial Statements including notes shall also be given.
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Though the revised Schedule is applicable to Companies working on Indian GAAP, certain concepts such as current / non-current classification seem to be adopted from Ind-AS/IFRS. This will require that even such Companies will have to familiarise themselves with Ind-AS/IFRS.
Further, since new concepts have been introduced, unless practicalguidance is issued, there is bound to be difference of opinions and the revision may not be able to achieve its motive.
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Details As on 25th April, 2011
Gulf Oil Corporation Limited
The Chemical Hub of Hinduja Group was created with Gulf Oil India Limited merging with IDL Industries Limited from 1st January 2002. The merger has enabled the Company to leverage the large marketing networks of lubricants and industrial explosives businesses and achieve a turnover for the financial year 2008-09 of Rs.1000 Crore (US$200 million). Exports accounted for 5% of the turnover.
IDL Industries Limited was renamed as GULF OIL Corporation Limited with the merger of Gulf Oil India’s business. A property Development Division was started in the Company from 2006. With effect from 1st April 2008 the business of specialty chemicals Division has been transferred to a 100% subsidiary – IDL Specialty Chemicals Limited through a scheme of arrangement sanctioned by the High Court of Andhra Pradesh at Hyderabad.
The activities of the current 4 operating Divisions are:
Manufacture, marketing and technical services in lubricants, greases, auto accessories and car care products. Major exporter of lubricants from India. Network of over 2000 distribution outlets in India.
Industrial Explosives Division
Manufacture, marketing and technical services in industrial explosives , detonators, explosive bonded metal clads and special devices for Defence and Space applications. The largest exporter of explosives products from India. Widest marketing and sales network in India.
Mining & Infrastructure Contracts Division
Undertakes large scale mining services in coal, iron ore, limestone and bauxite mines. Contracts in the infrastructure sector such as underground metro railways, elevated highways, industrial structures / buildings.
Development of large properties at Bangalore (Bangalore) and Hyderabad into SEZ, industrial parks and commercial conglomerates.
General Circular No:15/2011 Dated April 11, 2011
The Ministry of Corporate Affairs has reviewed the existing procedure followed by the companies for seeking prior approval of the Central Government for appointment of cost auditor under section 233B (2) of the Companies Act, 1956. In supersession of any earlier order/circular issued in this regard, the revised procedure to be followed by the companies and cost auditor provided in the circular.
Simplified Procedure for amalgamation of Government Companies U/s 396 of the Companies Act, 1956.
General Circular No:16/2011 Dated April 20, 2011
The Ministry of Corporate Affairs have been dealing with the amalgamation of
Government Companies in the Public Interest under section 396 of the Companies Act, 1956 by following the procedures prescribed under Companies (Court) Rules, 1959 which are applicable to amalgamation under Sections 391-394 of the Companies Act, 1956. Without prejudice to the generality of Section 396, it has now been decided that, in appropriate cases, simpler procedures shall be adopted for the amalgamation of Government Companies under section 396 of the Companies Act, 1956 given in the circular.
Green Initiatives in Corporate Sector -clarification regarding service of documents by e-mode instead of Under Posting certificate (UPC).
General Circular No:17/2011 Dated April 21, 2011
The Ministry of Corporate Affairs has taken a “Green Initiative in the Corporate Governance” by allowing paperless compliances by the companies after considering section 2,4,5, and 81 of the Information Technology Act, 2000 for legal validity of compliances under Companies Act through electronic mode.
Legal AlleyNotifications and circulars
Ministry of Corporate Affairs
Allotment of Director Identification Number (DIN) under Companies Act, 1956
General Circular No:11/2011 Dated April 07, 2011
The Ministry of Corporate Affairs has already simplified the process for obtaining DIN online, if the DIN-1 eform has been digitally signed by the practicing Chartered Accountant, Company Secretary, Cost Accountant, verifying the particulars of the applicants given in the application. Now another step towards simplification in allotment of DIN, the Ministry is considering to allot all DIN applications online.
Clarification Regarding Easy Exit Scheme (EES)
General Circular No:12/2011 Dated April 07, 2011
The Ministry of Corporate Affairs has received certain proposals for simplification in the procedures of Easy Exit Schemes (EES), 2011. The proposals have been examined in the Ministry and the revised simplified procedure for dealing with application under EES 2011 are given in the circular.
Certification of e-forms under the Companies Act,1956 by the Practicing professionals
General Circular No:14/2011 Dated April 08, 2011
Ministry of Corporate Affairs has been steadily progressing towards total electronic filing and approval regime, hence professionals are now to be responsible for submitting/certifying documents (to be signed digitally by them) and system would accept most of these documents online without approval by Registrar of Companies or other officers of the Ministry.
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Notification No. 36/2011 Dated April 25, 2011
Export of Services (Third Amendment) Rules, 2011 shall come into force on the 1st day of May, 2011.
Amends Service Tax Rules, 1994 – Insurance business
Notification No.35/2011 Dated April 25, 2011
An insurer carrying on life insurance business shall have the option to pay tax:
(i) on the gross premium charged from a policy holder reduced by the amount allocated for investment, or savings on behalf of policy holder, if such amount is intimated to the policy holder at the time of providing of service;
(ii) 1.5 per cent of the gross amount of premium charged from a policy holder in all other cases;
towards the discharge of his service tax liability instead of paying service tax at the rate specified in section 66 of Chapter V of the said Act:
Provided that such option shall not be available in cases where the entire premium paid by the policy holder is only towards risk cover in life insurance.” They shall come into force on the 1st day of May, 2011.
Legal AlleyNotifications and circulars
Ministry of Finance
Assistance provided for processing visa applications
Circular No. 137/6/ 2011– ST Dated April 20, 2011
Service provided by a visa facilitator, in the form of assistance to individuals directly, to obtain a visa, does not fall under any of the taxable services under section 65(105) of the Finance Act, 1994. Hence service tax is not attracted.
Accounting Codes for the taxable services introduced vide the Finance Act, 2011
Circular No.136/5/2011-TRU Dated April 20, 2011
Heads of Account under the Major Head “0044-Service Tax” in respect of the new taxable services have been allotted by the Office of the Principal Chief Controller of Accounts, CBEC. Which are mentioned in the circular.
Taxation of Services (Provided from Outside India and Received in India) Rules, 2006
Notification No. 37/2011 Dated April 25, 2011
The Taxation of Services (Provided from Outside India and Received in India) (Third Amendment) Rules, 2011shall come into force on the 1st day of May, 2011.
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Appoints the 1st day of May 2011 as the day for Finance Act, 2011 ( 8 of 2011) to come into force
Notification No. 29/2011 Dated April 25, 2011
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