Amendments to Finance (No.2) Bill,2009

Tax Management India .Com

Amendments to Finance (No.2) Bill, 2009

Fiance Minister's reply to the debate on Finance (No.2) Bill,2009 in lok Sabha List No. 3 LOK SABHA FINANCE (No. 2), BILL, 2009 (As Introduced in Lok Sabha) Notice of Amendments Sl. No. Name of Member and text of Amendment Clause No SHRI PRANAB MUKHERJEE 11. Page 4, for lines 61 and 62 substitute - '(d) in clause (24), - (i) in sub-clause (iia), after the word and figures 'section 10", the words "or by an electoral trust" shall be inserted with effect from the 1st day of April, 2020; (ii) after sub-clause (xiv), the following sub-clause shall be inserted with effect from the 1st day of October, 2009, namely : - "(xv) any sum of money or value of property referred to in clause (vii) of sub-section 2 of section 56;";. 3 12. Page 5, for lines 51 and 52 substitute, - Amendment of section 17. '9. In section 17 of the Income-tax Act, in clause (2), with effect from the 1st day of April, 2010,- (a) in sub-clause (v), for the words "annuity; and", the word "annuity;" shall be substituted, (b) for sub-clause (vi), the following sub-clauses shall be substituted, namely : - 9 13. Page 6, in line 19, for "one lakh rupees;", substitute "one lakh rupees; and" 9 14. Page 6, after line 39 insert, - "Provided that the expenditure incurred, wholly and exclusively, for the purposes of any specified business, shall be allowed as deduction during the previous year in which he commences operations of his specified business, if - (a) the expenditure in incurred prior to the commencement of its operation; and (b) the amount is capitalised in the books of account of the assessee on the date of commencement of its operations,". 13 15. Page 10, for lines 5 to 10, substitute - Amendment of section 49. - '23. In section 49 of the Income-tax Act, - (a) for sub-section (2AA), the following sub-Section shall be substituted with effect from the 1st day of April, 2010, namely : - "(2AA) Where the capital gain arises from the transfer of specified security or sweat equity shares referred to in sub-clause (vi) of clause (2) of section 17, the cost of acquisition of such security or shares shall be the fair market value which has been taken into account for the purposes of the said sub-clause.;" (b) after sub-section (3), the following sub-section shall be inserted with effect from the 1st day of October, 2009, namely : - "(4) Where the capital gain arises from the transfer of a property, the value of which has been subject to income tax under clause (vii) of sub-section (2) of section 56, the cost of acquisition of such property shall be deemed to be the value which has been taken into account for the purposes of the said clause (vii)."'. 23 16. Page 10, for lines 11 and 12, substitute - Amendment of section 50B - "24. In section 50B of the Income-tax Act, in Explanation 2 with effect from the 1st day of April, 2010,- (i) in clause (a), the words "and" occurring at the end shall be omitted; (ii) for clause (b), the following clauses shall be substituted, namely : -". 24 17. Page 10, in line 51, for "that section", substitute "those section". 26 18. Page 11, for line 30, substitute - "referred to in clause (b) of section 145A.". 26 19. Page 12, for lines 37 to 40, substitute - '(a) in sub-section (I) (i) in the opening portion, after the words, figures and letters "Where an assessee, being an individual employed by the Central Government or any other employer on or after the 1st day of January, 2004,", the words "or any other assessee, being an individual" shall be inserted; (ii) for the words "as does not exceed ten per cent. of his salary in the previous year", the following words shall be substituted, namely : - "as does not exceed, - (a) in the case of an employee, ten per cent, of his salary in the previous year; and (b) in any other case, ten per cent, of this gross total income in the previous year:,;   30" 20. Page 12, for lines 48 and 49, substitute- Amendment of section 80E. 32. In section 80E of the Income tax Act, in sub-section (3), with effect from the 1st day of April, 2010,- (i) for clause (C), the following cause shall be substituted, namely:- 32 21. Page 12, after line 53, insert- (ii) for clause (e) the following clause shall be substituted namely:- (e) "relative", in relation to an individual, means the spouse and children of the individual or the student for whom the individual is the legal guardian.' 32 22. Page 13, in line 8, for "in sub-section (i)" substitute" in sub-section (2)". 36 23. Page 13, for line 12, substitute- '(c) in sub-section (4) - (A) in clause (iii), in the second proviso, for the words, figures and letters "the 31st day of March, 2009" the words, figures and letterers "the 31st day of March, 2011" shall be substituted'. 36 24. Page 13, line 13, for "(A)" substitute "(B)" 36 25. Page 13, line line 15, for "(B)" substitute "(C)" 36 26. age 13, line 18, for "(C)" substitute "(D)" 36 27 Page 13, line 46, for "following clause, " substitute " following clauses" 37 28. Page 13, after line, 52, insert- "(V) is engaged in commercial production of natural gas in blocks licensed under the IV Round of bidding for award of exploration contracts for Coal Bed Methane blocks and begins commercial production of natural gas on or after the 1st day of April, 2009, 37 29 Page 13, for lines 53 to 55, substitute - '(c) in sub-section (10),- (i) in the opening portion, for the figures, letters and words "31st day of March, 2007" the figures, letters and words "31st day of March, 2008" shall be substituted; (ii) in clause (c), for the words "any other place; and", the words "any other place;" shall be substituted with effect from the 1st day of April, 2010; (iii) after clause (d), the following clauses shall be inserted with effect from the 1st day of April, 2010, namely:-' 37 30. Page 13, for line 60, substitute - "(i) the individual or the spouse or the minor children of such individual,". 37 31. Page 13, in line 64, for "(ii)", substitute "(iv)". 37 32. Page 13, after line 68, insert - '(d) in sub-section (11A), with effect from the 1st day of April, 2010,- (i) after the words "vegetables or", the following words shall be inserted, namely:- "meat and meat products or poultry or marine or dairy products or"; (ii) the following proviso shall be inserted, namely:- "Provided that the provisions of this section shall not apply to an undertaking engaged in the business of processing, preservation and packaging of meat or meat products or poultry or marine or dairy products if it begins to operate such business before the 1st day of April, 2009.".'. 37 33. Page 13, after line 68, insert- Amendment of section 80-U. 37A. In section 80 U of the Income-tax Act, in subsection (l), after the proviso, the following proviso shall be inserted with effect from the 1st day of April, 2010, namely:- "Provided further that for the assessment years beginning on or after the 1st day of April, 2010, the provisions of the first proviso shall have effect as if for the words "seventy-five thousand rupees", the words "one lakh rupees: had been substituted.".'. New clause 37 A 34. Page 15, for lines 4 to 9, substitute - '(i) the amount of income-tax calculated at the rate of thirty per cent on the aggregate of anonymous donation received in excess of the higher of the following, namely:- (A) five per cent of the total donations received by the assessee, or (B) one lakh rupees; and"; (b) for clause (ii) the following clause shall be substituted, namely:- "(ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations received.".'. 42 35. Page 22, for line 37 to 40, substitute- Amendment of section 246A. "71. In section (I), with effect from the 1st day of October, 2009,- (i) in clause (a), for the words brackets and figures "under sub-section (3) of section 143", the words, brackets and figures "under sub. section (3) of section 143 except an order passed in pursuance of directions of the Dispute Resolution Panel" shall be substituted. (ii) in clause (b) after the words and figures "under section 147", the words "except an order passed in pursuance of directions of the Dispute Resolution Panel" shall be inserted.". 71 36. Page 22, for line 41 substitute- Amendment of section 253. '72. In section 253 of the income-tax Act, in sub-section (I) with effect from the 1st day of October, 2009,- (a) in clause (c) for the words, figures and letter "Director under section 272A.", the words, figures and letter "Director under section 272A; or" shall be substituted; (b) after clause (c), the following clause shall be inserted, namely.-' 72 37. Page 23, omit line 1. 72 38. Page 23, for line 2, substitute - "(d) an order passed by an Assessing Officer under sub-section (3) of section 143 or section 147 in pursuance". 72 39. Page 24, for lines 17 and 18, substitute- Power to withdraw approval. "293C. Where the Central Government or the Board or an income-tax authority, who has been conferred upon the power under any provision of this Act to grant any approval to any assessee, the Central Government or the Board or such authority may; notwithstanding," 78 40. Page 24, line 21, for "income-tax authority", substitute "Central Government or Board or income-tax authority.". 78 P.D.T. ACHARY Secretary-General Dated : July 24, 2009Srawana 2, 1931 (Saka) List No 4 LOK SABHA FINANCE (NO.2) BILL, 2009 (As introduced in Lok Sabha) Notice of Motion under Rule 388 SHRI PRANAB MUKHERJEE: Sl. No Name of Member and Text of Motion Clause No   41. "That this House do suspend clause (i) of rule 80 of Rules of Procedure and conduct of Business in Lok Sabha in so far as it requires that an amendment shall be within the scope of the Bill and relevant to the subject matter of the clause to which it relates, in its application to the Government amendment No. 33 to the Finance (No.2) Bill, 2009 and that this amendment may be allowed to be moved." 37A (New) Vide Amendment list No. 3 circulated on 24.7.2009. New Delhi; Dated : July 24, 2009 P D T Achary, Secretary-General.

Amendments to Finance (No.2) Bill, 2009 Fiance Minister's reply to the debate on Finance (No.2) Bill,2009 in lok Sabha List No. 3 LOK SABHA FINANCE (No. 2), BILL, 2009 (As Introduced in Lok Sabha) Notice of Amendments Sl. No. Name of Member and text of Amendment Clause No SHRI PRANAB MUKHERJEE 11. Page 4, for lines 61 and 62 substitute - '(d) in clause (24), - (i) in sub-clause (iia), after the word and figures 'section 10", the words "or by an electoral trust" shall be inserted with effect from the 1st day of April, 2020; (ii) after sub-clause (xiv), the following sub-clause shall be inserted with effect from the 1st day of October, 2009, namely : - "(xv) any sum of money or value of property referred to in clause (vii) of sub-section 2 of section 56;";. 3 12. Page 5, for lines 51 and 52 substitute, - Amendment of section 17. '9. In section 17 of the Income-tax Act, in clause (2), with effect from the 1st day of April, 2010,- (a) in sub-clause (v), for the words "annuity; and", the word "annuity;" shall be substituted, (b) for sub-clause (vi), the following sub-clauses shall be substituted, namely : - 9 13. Page 6, in line 19, for "one lakh rupees;", substitute "one lakh rupees; and" 9 14. Page 6, after line 39 insert, - "Provided that the expenditure incurred, wholly and exclusively, for the purposes of any specified business, shall be allowed as deduction during the previous year in which he commences operations of his specified business, if - (a) the expenditure in incurred prior to the commencement of its operation; and (b) the amount is capitalised in the books of account of the assessee on the date of commencement of its operations,". 13 15. Page 10, for lines 5 to 10, substitute - Amendment of section 49. - '23. In section 49 of the Income-tax Act, - (a) for sub-section (2AA), the following sub-Section shall be substituted with effect from the 1st day of April, 2010, namely : - "(2AA) Where the capital gain arises from the transfer of specified security or sweat equity shares referred to in sub-clause (vi) of clause (2) of section 17, the cost of acquisition of such security or shares shall be the fair market value which has been taken into account for the purposes of the said sub-clause.;" (b) after sub-section (3), the following sub-section shall be inserted with effect from the 1st day of October, 2009, namely : - "(4) Where the capital gain arises from the transfer of a property, the value of which has been subject to income tax under clause (vii) of sub-section (2) of section 56, the cost of acquisition of such property shall be deemed to be the value which has been taken into account for the purposes of the said clause (vii)."'. 23 16. Page 10, for lines 11 and 12, substitute - Amendment of section 50B - "24. In section 50B of the Income-tax Act, in Explanation 2 with effect from the 1st day of April, 2010,- (i) in clause (a), the words "and" occurring at the end shall be omitted; (ii) for clause (b), the following clauses shall be substituted, namely : -". 24 17. Page 10, in line 51, for "that section", substitute "those section". 26 18. Page 11, for line 30, substitute - "referred to in clause (b) of section 145A.". 26 19. Page 12, for lines 37 to 40, substitute - '(a) in sub-section (I) (i) in the opening portion, after the words, figures and letters "Where an assessee, being an individual employed by the Central Government or any other employer on or after the 1st day of January, 2004,", the words "or any other assessee, being an individual" shall be inserted; (ii) for the words "as does not exceed ten per cent. of his salary in the previous year", the following words shall be substituted, namely : - "as does not exceed, - (a) in the case of an employee, ten per cent, of his salary in the previous year; and (b) in any other case, ten per cent, of this gross total income in the previous year:,;   30" 20. Page 12, for lines 48 and 49, substitute- Amendment of section 80E. 32. In section 80E of the Income tax Act, in sub-section (3), with effect from the 1st day of April, 2010,- (i) for clause (C), the following cause shall be substituted, namely:- 32 21. Page 12, after line 53, insert- (ii) for clause (e) the following clause shall be substituted namely:- (e) "relative", in relation to an individual, means the spouse and children of the individual or the student for whom the individual is the legal guardian.' 32 22. Page 13, in line 8, for "in sub-section (i)" substitute" in sub-section (2)". 36 23. Page 13, for line 12, substitute- '(c) in sub-section (4) - (A) in clause (iii), in the second proviso, for the words, figures and letters "the 31st day of March, 2009" the words, figures and letterers "the 31st day of March, 2011" shall be substituted'. 36 24. Page 13, line 13, for "(A)" substitute "(B)" 36 25. Page 13, line line 15, for "(B)" substitute "(C)" 36 26. age 13, line 18, for "(C)" substitute "(D)" 36 27 Page 13, line 46, for "following clause, " substitute " following clauses" 37 28. Page 13, after line, 52, insert- "(V) is engaged in commercial production of natural gas in blocks licensed under the IV Round of bidding for award of exploration contracts for Coal Bed Methane blocks and begins commercial production of natural gas on or after the 1st day of April, 2009, 37 29 Page 13, for lines 53 to 55, substitute - '(c) in sub-section (10),- (i) in the opening portion, for the figures, letters and words "31st day of March, 2007" the figures, letters and words "31st day of March, 2008" shall be substituted; (ii) in clause (c), for the words "any other place; and", the words "any other place;" shall be substituted with effect from the 1st day of April, 2010; (iii) after clause (d), the following clauses shall be inserted with effect from the 1st day of April, 2010, namely:-' 37 30. Page 13, for line 60, substitute - "(i) the individual or the spouse or the minor children of such individual,". 37 31. Page 13, in line 64, for "(ii)", substitute "(iv)". 37 32. Page 13, after line 68, insert - '(d) in sub-section (11A), with effect from the 1st day of April, 2010,- (i) after the words "vegetables or", the following words shall be inserted, namely:- "meat and meat products or poultry or marine or dairy products or"; (ii) the following proviso shall be inserted, namely:- "Provided that the provisions of this section shall not apply to an undertaking engaged in the business of processing, preservation and packaging of meat or meat products or poultry or marine or dairy products if it begins to operate such business before the 1st day of April, 2009.".'. 37 33. Page 13, after line 68, insert- Amendment of section 80-U. 37A. In section 80 U of the Income-tax Act, in subsection (l), after the proviso, the following proviso shall be inserted with effect from the 1st day of April, 2010, namely:- "Provided further that for the assessment years beginning on or after the 1st day of April, 2010, the provisions of the first proviso shall have effect as if for the words "seventy-five thousand rupees", the words "one lakh rupees: had been substituted.".'. New clause 37 A 34. Page 15, for lines 4 to 9, substitute - '(i) the amount of income-tax calculated at the rate of thirty per cent on the aggregate of anonymous donation received in excess of the higher of the following, namely:- (A) five per cent of the total donations received by the assessee, or (B) one lakh rupees; and"; (b) for clause (ii) the following clause shall be substituted, namely:- "(ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations received.".'. 42 35. Page 22, for line 37 to 40, substitute- Amendment of section 246A. "71. In section (I), with effect from the 1st day of October, 2009,- (i) in clause (a), for the words brackets and figures "under sub-section (3) of section 143", the words, brackets and figures "under sub. section (3) of section 143 except an order passed in pursuance of directions of the Dispute Resolution Panel" shall be substituted. (ii) in clause (b) after the words and figures "under section 147", the words "except an order passed in pursuance of directions of the Dispute Resolution Panel" shall be inserted.". 71 36. Page 22, for line 41 substitute- Amendment of section 253. '72. In section 253 of the income-tax Act, in sub-section (I) with effect from the 1st day of October, 2009,- (a) in clause (c) for the words, figures and letter "Director under section 272A.", the words, figures and letter "Director under section 272A; or" shall be substituted; (b) after clause (c), the following clause shall be inserted, namely.-' 72 37. Page 23, omit line 1. 72 38. Page 23, for line 2, substitute - "(d) an order passed by an Assessing Officer under sub-section (3) of section 143 or section 147 in pursuance". 72 39. Page 24, for lines 17 and 18, substitute- Power to withdraw approval. "293C. Where the Central Government or the Board or an income-tax authority, who has been conferred upon the power under any provision of this Act to grant any approval to any assessee, the Central Government or the Board or such authority may; notwithstanding," 78 40. Page 24, line 21, for "income-tax authority", substitute "Central Government or Board or income-tax authority.". 78 P.D.T. ACHARY Secretary-General Dated : July 24, 2009Srawana 2, 1931 (Saka) List No 4 LOK SABHA FINANCE (NO.2) BILL, 2009 (As introduced in Lok Sabha) Notice of Motion under Rule 388 SHRI PRANAB MUKHERJEE: Sl. No Name of Member and Text of Motion Clause No   41. "That this House do suspend clause (i) of rule 80 of Rules of Procedure and conduct of Business in Lok Sabha in so far as it requires that an amendment shall be within the scope of the Bill and relevant to the subject matter of the clause to which it relates, in its application to the Government amendment No. 33 to the Finance (No.2) Bill, 2009 and that this amendment may be allowed to be moved." 37A (New) Vide Amendment list No. 3 circulated on 24.7.2009. New Delhi; Dated : July 24, 2009 P D T Achary, Secretary-General.

CPE Credit Requirements for Members of the Institute

We would like to inform the members, the CPE Credit Requirements for the rolling period of three years starting from the calendar year 2008 as given below:

CPE Credit Requirements for members of the Institute

• All the members who are holding Certificate of Practice (except those members who are residing abroad), unless exempted, are required to:
1. Complete at least 90 CPE credit hours in each rolling three-year period of which 60 CPE credit hours should be of structured learning.
2. Complete minimum 20 CPE credit hours of structured learning in each year.

• All the members who are not holding Certificate of Practice or are residing abroad (whether holding Certificate of Practice or not), unless exempted, are required to:
1. Complete at least 45 CPE credit hours of structured/unstructured learning in each rolling three-year period
2. Complete minimum 10 CPE credit hours of structured/unstructured learning in each year.

Dear Member,

To facilitate the members to submit the Self Declaration form for Unstructured learning hours for calendar years 2011-13, in the link given below, the format of the same is available at

http://www.cpeicai.org/Advisory-Unstructured%20Learning%20Activities.pdf

Important Announcement for Members attaining the age of 60 years or are at present of the age of 60 years and above - 26-05-2008

The Council of the Institute, at its 278th meeting held on May 13-15, 2008, has decided to make the CPE hours requirements mandatory, w.e.f. 15th May 2008, also for the members of the Institute, who are attaining the age of 60 years during a particular calendar year within 2008-2010 or are at present of the age of 60 years and above. Such members could, however, complete their CPE requirements either by structured or unstructured CPE learning activities.     Accordingly, Clause 6.2 (a) of the Statement on Continuing Professional Education, 2003 (as amended in August, 2006), which says that the requirements of this Statement shall not apply to a member who attains the age of 60 years during a particular calendar year, stands deleted.     In view of the fact that the CPE requirements for the members attaining the age of 60 years during a particular calendar year within 2008-2010 or are at present of the age of 60 years and above, are being made mandatory after passing of 4 ½ months in the three-years rolling period starting from the calendar year 2008, the Council has decided to proportionately reduce the CPE requirements for these members for the rolling period of 2008-2010. Hence, the CPE Credit Hours Requirements are as under:   All the members attaining the age of 60 years during a particular calendar year within 2008-2010 or are at present of the age of 60 years and above and holding Certificate of Practice (except those members who are residing abroad), unless exempted, are required to: ·         Complete at least 70 CPE credit hours in each rolling three-year period either through structured or unstructured learning. ·         Complete minimum 10 CPE Credit hours in the year 2008 and minimum 20 CPE Credit hours in 2009 and 2010. All the members attaining the age of 60 years during a particular calendar year within 2008-2010 or are at present of the age of 60 years and above and not holding Certificate of Practice or are residing abroad, unless exempted, are required to: ·         Complete at least 35 CPE credit hours in each rolling three-year period either through structured or unstructured learning. ·         Complete minimum 5 CPE Credit hours in the year 2008 and minimum 10 CPE Credit hours in 2009 and 2010. The Council has also approved a new CPE Advisory on Unstructured CPE Learning Activities. This Advisory is meant as guidance and direction to the members who want to avail CPE Credits through Unstructured Learning Activities. The advisory includes the details about the unstructured learning activities and the ways in which these can be undertaken. The members are required to submit a Self-Declaration Form to the Institute once in a year to avail the CPE Hours Credit.

Collage

 

PDICAI Daily News Roundup Thursday, July 23, 2009

Posted to the desk of CA. DUDHARA RAJESH BANSILAL Thursday, July 23, 2009 Tip:  Now you can create your OWN WEBSITE on pdicai.org. Kindly login and click on "Create Website". Please email at suggestions@pdicai.org in case you face any difficulty in creating your website Professional News INCOME TAX Higher refunds dent Q1 direct taxes growth Delhi : A big jump in refund payout of Rs 17,600 crore has dented the Centre's net direct tax collections growth rate for the first quarter this fiscal.In April-June 2009, the net direct tax collections stood at Rs 59,465 crore, up 3.65 per cent over the Rs 57,373 crore collected in the same quarter last fiscal. SERVICE TAX Service tax not for individual lawyers Uttar Pradesh : Allaying apprehensions on the levying of service tax on lawyers as has been proposed in the General Budget-2009-2010, the office of chief commissioner, customs, central excise and service tax in its release has clarified that the proposed service tax will be charged only on the `business entity` providing any service, advice, consultancy or assistance in any branch of law to an other `business entity`. VALUE ADDED TAX Maharashtra Govt firm on not waiving VAT on CNG Maharashtra : The Maharashtra Government is in no mood to accede to the demand of the taxi and auto-rickshaw unions to waive the 14 per cent value-added tax (VAT) on compressed natural gas (CNG). SEBI IPO scam accused ordered to pay Rs 6 cr Maharashtra : The Securities and Exchange Board of India has directed Mr Dushyant Natwarlal Dalal and his wife Ms Puloma Natwarlal Dalal to pay Rs 6 crore by way of disgorgement for their involvement in the IPO scam. Sebi amends equity-listing agreement Maharashtra : Market regulator Securities & Exchange Board of India (Sebi) has notified the amendment to the equity-listing agreement, prohibiting listed companies from issuing shares with superior rights with regards to voting or dividends for shares that are already listed. MTN meeting India regulator on Bharti deal-report Maharashtra : Officials from MTN (MTNJ.J: Quote, Profile, Research) are meeting India`s capital market watchdog and stock exchanges to understand regulatory issues on a proposed deal between the South African firm and Bharti Airtel (BRTI.BO: Quote, Profile, Research), the Economic Times reported on Thursday. RBI Soon, shop for money with debit card Maharashtra : The Reserve Bank on Wednesday allowed cash withdrawals using swipe machines at retail shops. The facility will initially be available to the 14.3-crore people holding debit cards issued in India. You will be able to withdraw up to Rs 1,000 in a day. Online biz may dip on new RBI verification rule Delhi : THE new Reserve Bank of India (RBI) guidelines, which becomes effective from August 1, to provide a third factor identification for all online transactions may trigger a decline of 25-30% decline in daily business. IRDA Insurance regulator caps charges on Ulips Maharashtra : Insurance Regulatory Development Authority (Irda) on Wednesday announced a cap on overall charges that life insurance companies can levy on subscribers of their unit linked insurance policies (Ulips).For those products which have maturity of 10 years, insurance companies have to maintain the difference between gross yields and net yields at 300 basis points. FDI Policy India slips in FDI ranking  India has dropped to third place in global foreign direct investments (FDI) this year following the economic meltdown, but will continue to remain among the top five attractive destinations for international investors during the next two years, says Unctad (United Nations Conference on Trade and Development) in a new report on world investment prospects.Last year, India was ranked second in global FDI flows after China. Misc. Corporate Laws & Other Commercial Policies Planning Commission sets out guidelines for infra JVs Delhi : The Planning Commission has worked out broad guidelines for establishing joint venture companies between public sector undertakings (PSUs) and the private sector in infrastructure that strengthen PSU interests and aim to clarify areas of uncertainty that have dogged several partnerships so far.The draft guidelines are being prepared to provide PSUs with clear directions that they lacked so far when they sign joint venture agreements with private companies for large infrastructure projects and will be put up for Cabinet clearance soon. Antony raises objections against FTA with Asean Delhi : Defence minister A K Antony has expressed reservations against the free trade agreement (FTA) with Asean, which comes up for clearance at the Cabinet meeting on Thursday.Mr Antony, whose views matter, has conveyed to the leadership that signing of FTA should be postponed in the light of the changed global economic environment . DoT may dial tower firms for licence fee Delhi : The department of telecommunications (DoT) is considering including telecom infrastructure providers such as phone tower firms under a new uniform licence fee regime, according to three senior officials of the department. ACCOUNTING STANDARDS(AS) Accounting for carbon credits Delhi : A number of Indian companies generate carbon credit under the Clean Development Mechanism (CDM). The amount involved is material enough to the overall viability of a project.Under the International Financial Reporting Standards (IFRS), the International Accounting Standards Board (IASB) had issued an interpretation IFRIC 3 (Emission Rights), which was withdrawn in June 2005. Finance & Money Markets Ulips may fetch 150 bps more on new fee cap Andhra Pradesh : Retail investors in unit-linked insurance plans (Ulips), arguably one of the hottest investment products, could see a 150-basis-point rise in returns.The Insurance Regulatory and Development Authority (IRDA) has put a cap on charges that insurance companies, which sell Ulips, collect from investors. MFs give arbitrage funds a break, stop fresh inflows Maharashtra : At a time when domestic mutual funds continue to aggressively scramble for more money to boost their asset base, they have made an exception for one category — arbitrage funds. Several top arbitrage schemes of mutual funds have stopped accepting fresh money from investors. Consumers pay price of futures trading ban   Delhi : The aggregate production shortage of pulses, year on year, is just 0.1 million tonne (mt): in 2007-09, India produced 14.76 mt, which has slipped to 14.66 mt this year. But that small fluctuation is enough to send retail prices of pulses soaring by at least 18% for chana in just three months. Hedge funds make a comeback Delhi : Hedge funds had net inflows of $6.2 billion and returned an average 0.2% in June, rounding off a record three-month rally, Eurekahedge Pte said. The advance by the Eurekahedge Hedge Fund Index, tracking more than 2,000 funds, follows 3.2% and 5% gains in April and May, respectively, and brings its 2009 advance to 9.5%, according to a report by the Singapore-based research firm. HDFC to raise Rs 4,000 cr thru debentures Maharashtra : Housing finance company HDFC Ltd on Wednesday said it would raise up to Rs 4,000 crore through issue of warrants and secured redeemable non-convertible debentures to qualified institutional buyers. Budget 2009 House adopts Finance Bill Kerala : The Assembly adopted the Finance Bill 2009 on Wednesday exempting cement or concrete frames for doors and windows and paper bags, including paper covers, from value added tax (VAT). The tax on sweets and bakery items sold under unregistered brand names, tread rubber and red oxide stands reduced from 12.5 per cent to four per cent. Economy  India At $14b, India gets generous with IMF MSMEs to get 6% of net bank credit Asia's pension funds key to long-term growth, says ADB Full recovery of IT sector not before next fiscal Q2 Maran invites Japanese textile cos to India FIIs, NRIs can invest in Indian Depository Receipts Chennai, Kolkata air passengers also to pay development fee    International World trade to shrink 10 pct, Asia leads recovery: WTO   Markets Today NSE 4,523.75 2.84% BSE 15,247.91 2.73% NASDAQ 1,926.38 0.00%       USD 48.42   EURO 68.89   JPY(100) 51.27   GBP 80.02     Corporate Watch Wipro net rises, guidance flat Delhi : The country's third-largest software firm, Wipro, beat its own guidance and outperformed market forecasts to post a 12% rise in net profit at Rs 1,016 crore for the quarter ended June 30, compared with the same quarter last fiscal. This is in line with its two bigger rivals, TCS and Infosys, whose quarterly numbers also surpassed market expectations. The company's revenue stood at Rs 6,274 crore, up 5% year-on-year, but down 2.7% sequentially, according to Indian GAAP. However, net profit was marginally up sequentially at 0.6%. RCom signs Rs 10,000-cr deal with Etisalat to share facilities Maharashtra : Telecom operator Etisalat DB, formerly known as Swan Telecom, has decided to outsource its telecom infrastructure requirements to the Anil Ambani Group company Reliance Communications as part of a Rs 10,000-crore deal spread over the next 10 years.According to the agreement announced on Wednesday, Etisalat DB would outsource its telecom infrastructure requirements for the 15 telecom circles for which it has received licences to set up mobile services. While Reliance Communications will provide transmission infrastructure, Reliance Infratel Ltd, another ADAG group company, will provide the tower facility."This significant development is part of our overall commitment to provide consumers with quality service and reach at the time of launch. India Cements' Rajasthan plans to be thru Indo Zinc Tamil Nadu : India Cements plans to route its proposed investments in Rajasthan through Indo Zinc Ltd, a company in which it recently acquired a 53 per cent stake.It had announced a 1.5-million tonnes (mt) cement plant with a 20 MW captive power plant in Rajasthan. This will now be set up by its subsidiary Indo Zinc, which owns limestone mining leases.Mr N. Srinivasan, Vice-Chairman and Managing Director, India Cements Ltd, told reporters that the company would invest Rs 300 crore as equity and subordinated debt in Indo Zinc and guarantee the balance Rs 300 crore debt to be raised by Indo Zinc for the project. BSNL's mega GSM contract stuck on pricing Delhi : Apart from legal issues, Bharat Sanchar Nigam Ltd's mega GSM contract for 93 million connections is now stuck on pricing issues. BSNL's internal vigilance officials have raised concerns that the bid amounts quoted by the two successful companies – Ericsson and Huawei – may be on the higher side.While the two bidders have quoted above Rs 7,000 per line for 3G equipment, sources said the amount quoted for 2G gear is around Rs 3,000. This is only for supplying the radio equipment and does not include IT, software, billing solution or passive infrastructure. Sun Pharma arm faces class action suit in US Maharashtra : Caraco Pharmaceuticals, the US arm of Sun Pharma, has been slapped with a class action suit in the United States for allegedly not disclosing adequate information about US regulatory action that hurt its shares, rendering India's most valuable drugmaker vulnerable to the prospect of hefty payouts as damages.US-based law firm Izard LLP filed the case on behalf of some of Caraco's shareholders in a Michigan court on July 17. The law firm has also asked other shareholders, who bought Caraco shares between May 2008 and June 2009, to join the litigation.   Tenders & Assignment Karnataka Neeravari Nigam Limited Description :Appointment of Internal Auditors for the year 2009-10. Last Date : 29/07/2009   Address :(A Government of Karnataka Undertaking) Regd. Office: 4th Floor, Coffee Board Building, No.1, Dr. B.R. Ambedkar Veedhi, Banglore-560001. Phone :080-22283074-78 E-Mail :knnl@knnlindia.com   Reminders  Tenders Axom Sarba Siksha Abhijan Mission 27/07/2009   Notifications & Circulars INCOME TAX NOTIFICATION NO. 48/2009 /S.O. 1492(E) (Delhi) 16/06/2009 SECTION 138(1)(A)(II) OF THE INCOME-TAX ACT, 1961 - DISCLOSURE OF INFORMATION RESPECTING ASSESSEES TO SPECIFIED OFFICER, AUTHORITY OR BODY PERFORMING FUNCTIONS UNDER ANY OTHER LAW - NOTIFIED AUTHORITY CUSTOMS Notification No. 92 / 2009-Customs (N.T.) (Delhi) 20/07/2009 Appoints Common Adjudicating Authority Notification No. 93 / 2009-Customs (N.T.) (Delhi) 20/07/2009 Appoints Common Adjudicating Authority Notification No. 94 / 2009-Customs (N.T.) (Delhi) 20/07/2009 Appoints Common Adjudicating Authority Notification No. 95 / 2009-Customs (N.T.) (Delhi) 20/07/2009 Appoints Common Adjudicating Authority Notification No. 96 / 2009-Customs (N.T.) (Delhi) 20/07/2009 Appoints Common Adjudicating Authority Notification No. 97 / 2009-Customs (N.T.) (Delhi) 20/07/2009 Appoints Common Adjudicating Authority Notification No. 98 / 2009-Customs (N.T.) (Delhi) 20/07/2009 Appoints Common Adjudicating Authority Notification No. 99 / 2009-Customs (N.T.) (Delhi) 20/07/2009 Appoints Common Adjudicating Authority Notification No. 100 / 2009-Customs (N.T.) (Delhi) 20/07/2009 Amends Notification No. 113/2005-Customs(N.T.), dated 28th December, 2005 Notification No.75 / 2009-Customs (Delhi) 30/06/2009 Regarding imposition of provisional safeguard duty on imports of Phthalic anhydride into India Notification No. 76/ 2009-Customs (Delhi) 30/06/2009 Rescinds notification No. 9/2009- Customs, dated the 29th January, 2009 RBI Notifications RBI/2009-10/105 (Delhi) 22/07/2009 Cash Withdrawal at Point-of-Sale Notifications RBI/2009-10/106 (Delhi) 22/07/2009 Issue of Indian Depository Receipts (IDRs)   Announcements National Convention for CA Students at Siliguri on 4th-5th September, 2009 Announcement Regarding Service Tax for November 2009 Examination Certificate Course on Enterprise Risk Management at Mumbai from August 22, 2009   Click here to visit Member's Forum Login to your forum account to know your Forum Activity Status. more from www.pdicai.org For suggestions and feedback click here or mail us at anujgoyal@icai.org Notes: 1. Copyright and ownership of all content from PDICAI.ORG and other ICAI sites belongs to ICAI except third-party resources 2. Copyright, intellectual property right, ownership or responsibility of error of other content belong to respective sources 3. Please do not reply to this mail Disclaimer ICAI is not responsible for any kind of loss arising due to the information. You are receiving this newsletter because you have subscribed to this service. To unsubscribe click here The Institute of Chartered Accountants of India, ICAI Bhawan, Indraprastha Marg, Post Box. No. 7100, New Delhi - 110 002.

Abhishek Gupta: CA can use Tax Consultant?

I am a chartered accountant not in practice. I want to know whether i can hang a board containing My name as a chartered accountant and tax consultant on My relative shop. If Yes, then what size of the board i can use and what information i can write on the board about me.

Sanjay Salgia: Cash Subscription by Directors

I have a query regarding the shares issued to the promoter directors of a private limited company. The memorandum has a subscription page wherein the promoter directors declare that they have subscribed to the shares. But as the company does not have a bank account, does this imply that share capital has been bought in cash. Or is it just an undertaking that they will be subscribing to the shares.

Anand Wadadekar: Going Concern

If a Company's net worth is eroded 100% and the auditors have commented in their report that its not a going concern or the going concern concept is questioned,   1) what the Directors should do and how much they will be responsible if there is no willful fraud or action which contributed to the situation? 2) Is the compulsory winding up the last route left for directors? 3) Will the officer in default be also liable? If yes, how and to what extent?  4) if the directors keep the company going even after the audit report, will the directors be liable for continuing trading while insolvent?   Assuming SICA is not applicable.   Waiting for inputs from elite professionals of the group. Your response will be highly appreciated.

Contact Book of Ashwn Nagar

Gujarat Budget 2009-10

માહિતી કમિશનરની કચેરી,                                           ૭/૨, ડો.જીવરાજ મહેતા ભવન,                                           ગુજરાત રાજય, ગાંધીનગર.                                           તારીખઃ-  ૨૨/૭/૨૦૦૯       સ્નેહી શ્રી         ગુજરાત રાજયનું  વર્ષ ૨૦૦૯-૧૦ નું બજેટ વિધાનસભામાં રજુ થયેલ છે. અત્યારે વિભાગવાર તેની ચર્ચા ચાલી રહેલ છે. ત્યારે આપને એક સુજ્ઞ નાગરિક તરીકે આ બજેટની અગત્યની બાબતોનો એક નાનકડો સ્લાઇડ શો મોકલી રહ્યો છું. આપના ફિડબેક મળશે તો અમો આ કોમ્યુનિકેશન (સંદેશા) માધ્યમને વધુ અસરકારક બનાવવા પ્રયત્ન કરીશું.           આભાર સહ,                                                         ભાગ્યેશ જહા                                                      માહિતી કમિશનર                                               ગુજરાત રાજય, ગાંધીનગર. | Ashwin Nagar | FCA and SAP-FICO\SEM-BCS | Success is not permanent and failure is not final Ph: India: +91-98330-15352  US: +1-323-325-4111

Important information relating to filing of ITR forms

By now, many of you would have filed several tax returns of your clients or your own companies or even your own returns. It has been brought to our notice that this year, whenever an ITR form is filed electronically without the digital signature, the system shows that the ITR-V has been e-mailed to the e-mail ID registered with the Income-tax Department's web site. Thereafter, when the ITR-V is tried to be opened, the system asks for a password. This was creating problems as the password that is generally used by the tax payer to log onto the e-filing site does not work while opening the ITR-V.   Recently, the Income-tax Department has put up the following clarification on its website. This would help all of you in opening the ITR-V in case of returns filed electronically.   Information on how to open your ITRV/ITR ACK   Dear TaxPayer, Please note that you will receive your ITRV/ITR ACK PDF file in a zip format. Please note that the ITRV/ITR ACK PDF document is password protected to ensure it is accessed by the appropriate user. The password is a combination of the pan (in lower case) and the date of birth in the format ddmmyyyy. For example, 1) if the pan is AAAAA0000A and the date of birth is 10-Jan-2008, then the password will be aaaaa0000a10012008 Please note that you will need Adobe Acrobat reader 8.0 or forward to open the password protected PDF file. If you do not have Adobe Acrobat Reader, please visit the following link to download it: www.adobe.com/products/acrobat/readstep2.html In case you are unable to open the document, please contact Efiling Income Tax Administrator at ask@incometaxindia..gov.in providing the document along with pan number and assessment year. Income Tax Department

NEW TDS RATES FROM 01.10.2009 PROPOSED IN BUDGET 2009

NEW TDS RATES FROM 01.10.2009 PROPOSED IN BUDGET 2009   PARTICULARS NEW TDS RATE % IF DEDUCTEE IS Section Nature of Payment Cut off Amount Rs. Individual & HUF Others 194A Interest from a Banking Company Rs. 10000/- p.a. 10% 20% 194A Interest other than From a Banking Company   Rs. 5000/- p.a.   10% 20% 194C Payment to Sub-Contractors And Payment for Advertising Contracts Rs. 20000/- per Contract or Rs. 50000/- p.a. 1% 2% 194C Other Contractors   Rs. 20000/- per Contract or Rs. 50000/- p.a. 1% 2% 194C Transport Contractors engaged In the business of playing, hiring or leasing goods carriages   NIL* 194H Commission or Brokerage Rs. 2500/- p.a 10% 194I Rent other than Plant, Machinery and Equipments   Rs. 120000/- p.a. 10%   194I Rent of Plant, Machinery and Equipments   Rs. 120000/- p.a. 10%     194J Professional and technical Services   Rs. 20000/- p.a. 10%   * The Nil rate will be applicable if the transporter Quotes his PAN. ** The rate of TDS will be 20% in all cases if PAN is not quoted by the deduce w.e.f. 1.04.2010 *** No Surcharge and Cess on Tax deducted on non-salary payments made toresident tax payers.

Watch this page for ICAI Election News & Activities

Hello friends,

I have published this page for the members and contestants for the forthcoming elections of ICAI for Regional & Central Councils.

I welcome members to write there comments. Also I welcome, contestants to write anything about them or their candidature. I will try to post profile of each contesting candidate. I also invite members comments on their performance, claims, manifesto, profile or candidature.

I think it will be a real interactive and fruitful exercise for the selection of right candidate.

What do you think? Go ahead and write below.

Cost inflation index For the year 2009-10

Sorry this mail was sent based on unconfirmed source. I have removed that page.
I sincerely apologise the inconvenience.
Will publish and mail the CII once it's available.

-Ashwin Nagar

RBI Directions to Auditors of NBFCs

Non Banking Finance Companies (NBFCs) is a constituent of the institutional structure of the organized financial system in India. NBFCs perform a significant and important role in our financial system. They facilitate the process of channelising of public savings and provide better return to the depositors. We are aware that due to liberalization and globalisation, banking industry and financial sector has gone through many reforms. In the present economic environment it is very difficult to cater need of society by Banks alone so role of Non Banking Finance Companies and Micro Finance Companies become indispensable.

While conducting audit of NBFCs, members are requested to kindly go through the RBI Directions to Auditors of NBFCs issued vide circular no RBI/2009-10/4 DNBS(PD)CC No.146 /03.02.001/2009-10 dated July 1, 2009.

[PDC Direcotrate, ICAI]

How is Budget in Your opinion?

Hello!
What do you think this Budget 2009 is?
Being an elite class with deep insight on economy, I will appreciate, if you would like to comment on the recent budget. What do you think, How was the budget?
Click the comment link just below and write your comments.
Thanks
Ashwin Nagar