New Perquisite Rules,2009

INCOME-TAX (THIRTEENTH AMENDMENT) RULES, 2009 - SUBSTITUTION OF RULE 3 AND INSERTION OF RULE 40F

 

Notification No. 94/2009/F.NO. 142/25/2009-SO (TPL), dated 18-12-2009

 

In exercise of the powers conferred by section 295 read with sub-section (2) of section 17 of the Income-tax Act, (43 of 1961). The Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namlely :-

1. (1) These rules may be called the Income-tax (13^th Amendment) Rules, 2009.

 (2)  They shall be deemed to have come into force on the 1^st day of April, 2009.

 

2. In the Income-tax Rules, 1962, for rule 3, the following shall be substituted, namely: -

 

"3. For the purpose of computing the income chargeable under the head "Salaries", the value of perquisites provided by the employer directly or indirectly to the assessee (hereinafter referred to as employee) or to any member of his household by reason of his employment shall be determined in accordance with the following sub-rules, namely:—

(1) The value of residential accommodation provided by the employer during the previous year shall be determined on the basis provided in the Table below:

 

Sl. NO.	Circumstances	Where accommodation is Unfurnished	Where accommodation is furnished
(1)	(2)	(3)	(4)
(1)	Where the accommodation is provided by the Central Government or any State Government to the employees either holding office or post in connection with the affairs of the Union or of such State.	License fee determined by the Central Government or any State Government in respect of accommodation in accordance with the rules framed by such Government as reduced by the rent actually paid by the employee.	determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment) or if such furniture is hired from a third party, the actual hire charges payable for the same as reduced by any charges paid or payable for he same by the employee during the previous year.
(2)	Where the accommodation is provided by any other employer and—             (a)        where the accommodation is owned by the employer, or	(i)  15% of salary in cities having population exceeding 25 lakhs as per 2001 census; (ii) 10% of salary in cities having population exceeding 10 lakhs but not exceeding 25 lakhs as per 2001 census; (iii)      7.5% of salary in other areas, in respect of the period during which the said accommodation was occupied by the employee during the previous year as reduced by the rent, if any, actually paid by the employee.	The value of perquisites as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, refrigerators, other household ap plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year.
	(b)     where the accommodation is taken on lease or rent by the employer.	Actual amount of lease rental paid or payable by the employer or 15% of salary whichever is lower as reduced by the rent, if any, actually paid by the employee.	The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year.
(3)	Where the accommodation is provided by the employer specified in serial number (1) or (2) in a hotel (except where the employee is provided such accommodation for a period not Exceeding in aggregate fifteen days on his transfer from one place to another)	Not applicable	24% of salary paid or payable for the previous year or the actual charges paid or payable to such hotel, which is lower, for the period during which such accommodation is provided as reduced by the rent, if any, actually paid or payable by the employee:

 

Provided that nothing contained in this sub-rule shall apply to any accommodation provided to an employee working at a mining site or an on-shore oil exploration site or a project execution site, or a dam site or a power generation site or an off-shore site—

   (i)  which, being of a temporary nature and having plinth area not exceeding 800 square feet, is located not less than eight kilometers away from the local limits of any municipality or a cantonment board; or

  (ii)  which is located in a remote area:

Provided further that where on account of his transfer from one place to another, the employee is provided with accommodation at the new place of posting while retaining the accommodation at the other place, the value of perquisite shall be determined with reference to only one such accommodation which has the lower value with reference to the Table above for a period not exceeding 90 days and thereafter the value of perquisite shall be charged for both such accommodations in accordance with the Table.

Explanation.—For the purposes of this sub-rule, where the accommodation is provided by the Central Government or any State Government to an employee who is serving on deputation with any body or undertaking under the control of such Government,-

   (i)  the employer of such an employee shall be deemed to be that body or undertaking where the employee is serving on deputation; and

  (ii)  the value of perquisite of such an accommodation shall be the amount calculated in accordance with Sl. No. (2)(a) of Table I, as if the accommodation is owned by the employer.

(2)(A) The value of perquisite by way of use of motor car to an employee by an employer shall be determined in accordance with the following Table, namely:—

 

 

Sl.No.	Circumstance	Where cubic capacity of engine does not exceed 1.6 liters	Where cubic capacity of engine exceeds 1.6 liters
(1)	(2)	(3)	(4)
(1)	Where the motor car is owned or hired by the employer and—   (a)        is used wholly and exclusively in the performance of his official duties;     (b)       is used exclusively for the private or personal purposes of the employee or any member of his household and the running and maintenance expenses are met or reimbursed by the employer;       (c)        is used partly in the performance of duties and partly for private or personal purposes of his own or any member of his household and—               (i)        the expenses on maintenance and running are met or reimbursed by the employer;             (ii)       the expenses on running and maintenance for private or personal use are fully met by the assessee.	No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.   Actual amount of expenditure incurred by the employer on the running and maintenance of motor car during the relevant previous year including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by any amount charged form the employee for such use.                     Rs. 1,800 (plus Rs. 900, if chauffeur is also provided to run the motor car)       Rs. 600 (plus Rs.900, if chauffeur is also provided by the employer to run the motor car)	No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. Actual amount of expenditure incurred by the employer on the running and maintenance of motor car during the relevant previous year including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by any amount charged form the employee for such use.                 Rs. 2,400 (plus Rs. 900, if chauffeur is also provided to run the motor car)     Rs. 900 (plus Rs. 900, if chauffeur is also provided to run the motor car)
(2)	Where the employee owns a motor car but the actual running and maintenance charges (including remuneration of the chauffeur, if any) are met or reimbursed to him by the employer and—   (i) such reimbursement is for the use of the vehicle wholly and exclusively for official purposes;   (ii) such reimbursement is for the use of the vehicle partly for official purposes and partly for personal or private purposes of the employee or any member of his household.	No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.     Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above.	No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.   Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above.
	(3) Where the employee owns any other automotive conveyance but the actual running and maintenance charges are met or reimbursed to him by the employer and   (i). such reimbursement is for the use of the vehicle wholly and exclusively for official purposes;   (ii) such reimbursement is for the use of vehicle partly for official purposes and partly for personal or private purposes of the employee.	No Value : Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer. Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount of Rs. 900.	Not applicable :

 

 

 

Provided that where one or more motor-cars are owned or hired by the employer and the employee or any member of his household are allowed the use of such motor-car or all of any of such motor-cars (otherwise than wholly and exclusively in the performance of his duties), the value of perquisite shall be the amount calculated in respect of one car in accordance with Sl. No. (1)(c)(i) of Table II as if the employee had been provided one motor-car for use partly in the performance of his duties and partly for his private or personal purposes and the amount calculated in respect of the other car or cars in accordance with Sl. No. (1)(b) of Table II as if he had been provided with such car exclusively for his private or personal purposes.

(B) Where the employer or the employee claims that the motor-car is used wholly and exclusively in the performance of official duty or that the actual expenses on the running and maintenance of the motor-car owned by the employee for official purposes is more than the amounts deductible in Sl. No. 2(ii) or 3(ii) of Table II, he may claim a higher amount attributable to such official use and the value of perquisite in such a case shall be the actual amount attributable to official use of the vehicle provided that the following conditions are fulfilled:—

  (a)  the employer has maintained complete details of journey undertaken for official purpose which may include date of journey, destination, mileage and the amount of expenditure incurred thereon;

  (b)  the employer gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties.

Explanation.—For the purposes of this sub-rule, the normal wear and tear of a motor-car shall be taken at 10% per annum of the actual cost of the motor-car or cars.

(3) The value of benefit to the employee or any member of his household resulting from the provision by the employer or services of a sweeper, a gardener, a watchman or a personal attendant, shall be the actual cost to the employer. The actual cost in such a case shall be the total amount of salary paid or payable by the employer or any other person on his behalf for such services as reduced by any amount paid by the employee for such services.

(4) The value of the benefit to the employee resulting from the supply of gas, electric energy or water for his household consumption shall be determined as the sum equal to the amount paid on that account by the employer to the agency supplying the gas, electric energy or water. Where such supply is made from resources owned by the employer, without purchasing them from any other outside agency, the value of perquisite would be the manufacturing cost per unit incurred by the employer. Where the employee is paying any amount in respect of such services, the amount so paid shall be deducted from the value so arrived at.

(5) The value of benefit to the employee resulting from the provision of free or concessional educational facilities for any member of his household shall be determined as the sum equal to the amount of expenditure incurred by the employer in that behalf or where the educational institution is itself maintained and owned by the employer or where free educational facilities for such member of employees' household are allowed in any other educational institution by reason of his being in employment of that employer, the value of the perquisite to the employee shall be determined with reference to the cost of such education in a similar institution in or near the locality. Where any amount is paid or recovered from the employee on that account, the value of benefit shall be reduced by the amount so paid or recovered :

Provided that where the educational institution itself is maintained and owned by the employer and free educational facilities are provided to the children of the employee or where such free educational facilities are provided in any institution by reason of his being in employment of that employer, nothing contained in this sub-rule shall apply if the cost of such education or the value of such benefit per child does not exceed one thousand rupees per month.

(6) The value of any benefit or amenity resulting from the provision by an employer who is engaged in the carriage of passengers or goods, to any employee or to any member of his household for personal or private journey free of cost or at concessional fare, in any conveyance owned, leased or made available by any other arrangement by such employer for the purpose of transport of passengers or goods shall be taken to be the value at which such benefit or amenity is offered by such employer to the public as reduced by the amount, if any, paid by or recovered from the employee for such benefit or amenity :

Provided that nothing contained in this sub-rule shall apply to the employees of an airline or the railways.

(7) In terms of provisions contained in clause (viii) of sub-section (2) of section 17, the following other benefits or amenities and value thereof shall be determined in the manner provided hereunder:

   (i)  The value of the benefit to the assessee resulting from the provision of interest-free or concessional loan for any purpose made available to the employee or any member of his household during the relevant previous year by the employer or any person on his behalf shall be determined as the sum equal to the interest computed at the rate charged per annum by the State Bank of India, constituted under the State Bank of India Act, 1955 (23 of 1955), as on the 1st day of the relevant previous year in respect of loans for the same purpose advanced by it on the maximum outstanding monthly balance as reduced by the interest, if any, actually paid by him or any such member of his household:

        Provided that no value would be charged if such loans are made available for medical treatment in respect of diseases specified in rule 3A of these Rules or where the amount of loans are petty not exceeding in the aggregate twenty thousand rupees:

        Provided further that where the benefit relates to the loans made available for medical treatment referred to above, the exemption so provided shall not apply to so much of the loan as has been reimbursed to the employee under any medical insurance scheme.

  (ii)  The value of travelling, touring, accommodation and any other expenses paid for or borne or reimbursed by the employer for any holiday availed of by the employee or any member of his household, other than concession or assistance referred to in rule 2B of these rules, shall be determined as the sum equal to the amount of the expenditure incurred by such employer in that behalf. Where such facility is maintained by the employer, and is not available uniformly to all employees, the value of benefit shall be taken to be the value at which such facilities are offered by other agencies to the public. Where the employee is on official tour and the expenses are incurred in respect of any member of his household accompanying him, the amount of expenditure so incurred shall also be a fringe benefit or amenity:

        Provided that where any official tour is extended as a vacation, the value of such fringe benefit shall be limited to the expenses incurred in relation to such extended period of stay or vacation. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity.

(iii)  The value of free food and non-alcoholic beverages provided by the employer to an employee shall be the amount of expenditure incurred by such employer. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity:

        Provided that nothing contained in this clause shall apply to free food and non­-alcoholic beverages provided by such employer during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, to the extent the value thereof either case does not exceed fifty rupees per meal or to tea or snacks provided during working hours or to free food and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation.

(iv)  The value of any gift, or voucher, or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise from the employer shall be determined as the sum equal to the amount of such gift:

        Provided that where the value of such gift, voucher or token, as the case may be, is below five thousand rupees in the aggregate during the previous year, the value of perquisite shall be taken as "nil".

  (v)  The amount of expenses including membership fees and annual fees incurred by the employee or any member of his household, which is charged to a credit care (including any add-on-card) provided by the employer, or otherwise, paid for or reimbursed by such employer shall be taken to be the value of perquisite chargeable to tax as reduced by the amount, if any paid or recovered from the employee for such benefit or amenity:

        Provided that there shall be no value of such benefit where expenses are incurred wholly and exclusively for official purposes and the following conditions are fulfilled:—

  (a)        complete details in respect of such expenditure are maintained by the employer which may, inter alia, include the date of expenditure and the nature of expenditure;

  (b)  the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.

(vi)  (A) The value of benefit to the employee resulting from the payment or reimbursement by the employer of any expenditure incurred (including the amount of annual or periodical fee) in a club by him or by a member of his household shall be determined to be the actual amount of expenditure incurred or reimbursed by such employer on that account. The amount so determined shall be reduced by the amount, if any paid or recovered from the employee for such benefit or amenity:

        Provided that where the employer has obtained corporate membership of the club and the facility is enjoyed by the employee or any member of his household, the value of perquisite shall not include the initial fee paid for acquiring such corporate membership.

        (B) Nothing contained in this clause shall apply if such expenditure is incurred wholly and exclusively for business purposes and the following conditions are fulfilled:—

  (a)        complete details in respect of such expenditure are maintained by the employer which may inter alia, include the date of expenditure, the nature of expenditure and its business expediency;

  (b)  the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.

        (C) Nothing contained in this clause shall apply for use of health club, sports and similar facilities provided uniformly to all employees by the employer.

(vii)  The value of benefit to the employee resulting from the use by the employee or any member of his household of any movable asset (other than assets already specified in this rule and other than laptops and computers) belonging to the employer or hired by him shall be determined at 10% per annum of the actual cost of such asset or the amount of rent or charge paid or payable by the employer, as the case may be, as reduced by the amount, if any, paid or recovered from the employee for such use.

(viii) The value of benefit to the employee arising from the transfer of any movable asset belonging to the employer directly or indirectly to the employee or any member of his household shall be determined to be the amount representing the actual cost of such assets to the employer as reduced by the cost of normal wear and tear calculated at the rate of 10% of such cost for each completed year during which such asset was put to use by the employer and as further reduced by the amount, if any, paid or recovered from the employee being the consideration for such transfer :

        Provided that in the case of computers and electronic items, the normal wear and tear would be calculated at the rate of 50% and in the case of motor cars at the rate of 20% by the reducing balance method.

(ix)  The value of any other benefit or amenity, service, right or privilege provided by the employer shall be determined on the basis of cost to the employer under an arm's length transaction as reduced by the employee's contribution, if any :

        Provided that nothing contained in this clause shall apply to the expenses on telephones including a mobile phone actually incurred on behalf of the employee by the employer.

(8)(i) For the purposes of clause (vi) of sub-section (2) of section 17, the fair market value of any specified security or sweat equity share, being an equity share in a company, on the date on which the option is exercised by the employee, shall be determined in accordance with the provisions of clause (ii) or clause (iii).

(ii) In a case where, on the date of the exercising of the option, the share in the company is listed on a recognized stock exchange, the fair market value shall be the average of the opening price and closing price of the share on that date on the said stock exchange :

Provided that where, on the date of exercising of the option, the share is listed on more than one recognized stock exchanges, the fair market value shall be the average of opening price and closing price of the share on the recognised stock exchange which records the highest volume of trading in the share :

Provided further that where, on the date of exercising of the option, there is no trading in the share on any recognized stock exchange, the fair market value shall be—

  (a)  the closing price of the share on any recognised stock exchange on a date closest to the date of exercising of the option and immediately preceding such date; or

  (b)  the closing price of the share on a recognised stock exchange, which records the highest volume of trading in such share, if the closing price, as on the date closest to the date of exercising of the option and immediately preceding such date, is recorded on more than one recognized stock exchange.

(iii) In a case where, on the date of exercising of the option, the share in the company is not listed on a recognised stock exchange, the fair market value shall be such value of the share in the company as determined by a merchant banker on the specified date.

(iv) For the purpose of this sub-rule,—

  (a)  "closing price" of a share on a recognised stock exchange on a date shall be the price of the last settlement on such date on such stock exchange :

        Provided that where the stock exchange quotes both "buy'' and "sell" prices, the closing price shall be the "sell" price of the last settlement;

  (b)  "merchant banker" means category I merchant banker registered with Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);

  (c)  "opening price" of a share on a recognised stock exchange on a date shall be the price of the first settlement on such date on such stock exchange :

        Provided that where the stock exchange quotes both "buy" and "sell" prices, the opening price shall be the "sell" price of the first settlement;

  (d)    "recognised stock exchange" shall have the same meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

  (e)  "specified date" means,—

   (i)  the date of exercising of the option; or

  (ii)  any date earlier than the date of the exercising of the option, not being a date which is more than 180 days earlier than the date of the exercising.

(9) For the purposes of clause (vi) of sub-section (2) of section 17, the fair market value of any specified security, not being an equity share in a company, on the date on which the option is exercised by the employee, shall be such value as determined by a merchant banker on the specified date.

Explanation.—For the purposes of this sub-rule, 'merchant banker' and 'specified date' shall have the meanings assigned to them in sub-clause (b) and sub-clause (e) respectively of clause (iv) of sub-rule (8).

(10) This rule shall come into force with effect from the 1st day of April, 2009.

Explanation.—For the purposes of this rule-

   (i)    "accommodation" includes a house, flat, farm house or part thereof, or accommodation in a hotel, motel, service apartment, guest house, caravan, mobile home, ship or other floating structure;

  (ii)    "entertainment" includes hospitality of any kind and also, expenditure on business gifts other than free samples of the employers own product with the aim of advertising to the general public;

(iii)  "hotel" includes licensed accommodation in the nature of motel, service apartment or guest house;

(iv)  "member of household" shall include—

  (a)        spouse(s),

  (b)        children and their spouses,

  (c)        parents, and

  (d)        servants and dependents;

  (v)  "remote area", for purposes of proviso to this sub-rule means an area that is located at least 40 kilometres away from a town having a population not exceeding 20,000 based on latest published all-India census;

(vi)  "salary" includes the pay, allowances, bonus or commission payable monthly or otherwise or any monetary payment, by whatever name called from one or more employers, as the case may be, but does not include the following, namely:—

  (a)        dearness allowance or dearness pay unless it enters into the computation of superannuation or retirement benefits of the employee concerned;

  (b)        employer's contribution to the provident fund account of the employee;

  (c)        allowances which are exempted from payment of tax;

  (d)  the value of perquisites specified in clause (2) of section 17 of the Income-tax Act;

  (e)  any payment or expenditure specifically excluded under proviso to sub­-clause (iii) of clause (2) or proviso to clause (2) of section 17;

  (f)        lump-sum payments received at the time of termination of service or superannuation or voluntary retirement, like gratuity, severance pay leave encashment, voluntary retrenchment benefits, commutation of pension and similar payments;

(vii)  'maximum outstanding monthly balance' means the aggregate outstanding balance for each loan as on the last day of each month.

appendix 2

Section 17 of Income-tax Act, 1961

"Salary", "perquisite" and "profits in lieu of salary" defined.

17.   For the purposes of sections 15 and 16 and of this sec­tion,—

          (1)        "salary" includes—

       (i)  wages;

      (ii)  any annuity or pension;

     (iii)  any gratuity;

     (iv)  any fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages;

      (v)  any advance of salary;

    (va)  any payment received by an employee in respect of any period of leave not availed of by him;

     (vi)  the annual accretion to the balance at the credit of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under rule 6 of Part A of the Fourth Schedule;

    (vii)  the aggregate of all sums that are comprised in the transferred balance as referred to in sub-rule (2) of rule 11 of Part A of the Fourth Schedule of an employee participating in a recognised provident fund, to the extent to which it is charge­able to tax under sub-rule (4) thereof; and

  (viii)  the contribution made by the Central Government or any other employer in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD;

(2) "perquisite" includes—

       (i)  the value of rent-free accommodation provided to the assessee by his employer;

      (ii)  the value of any concession in the matter of rent respecting any accommodation provided to the assessee by his employer;

            Explanation 1.—For the purposes of this sub-clause, concession in the matter of rent shall be deemed to have been provided if,—

(a) in a case where an unfurnished accommodation is provided by any employer other than the Central Government or any State Government and—

(i) the accommodation is owned by the employer, the value of the accommodation determined at the specified rate in respect of the period during which the said accommodation was occupied by the assessee during the previous year, exceeds the rent recoverable from, or payable by, the assessee;

(ii) the accommodation is taken on lease or rent by the employer, the value of the accommodation being the actual amount of lease rental paid or payable by the employer or fifteen per cent of salary, whichever is lower, in respect of the period during which the said accommodation was occupied by the assessee during the previous year, exceeds the rent recoverable from, or payable by, the assessee;

(b) in a case where a furnished accommodation is provided by the Central Government or any State Government, the licence fee determined by the Central Government or any State Government in respect of the accommodation in accordance with the rules framed by such Government as increased by the value of furniture and fixtures in respect of the period during which the said accommodation was occupied by the assessee during the previous year, exceeds the aggregate of the rent recoverable from, or payable by, the assessee and any charges paid or payable for the furniture and fixtures by the assessee;

(c) in a case where a furnished accommodation is provided by an employer other than the Central Government or any State Government and—

(i) the accommodation is owned by the employer, the value of the accommodation determined under sub-clause (i) of clause (a) as increased by the value of the furniture and fixtures in respect of the period during which the said accommodation was occupied by the assessee during the previous year, exceeds the rent recoverable from, or payable by, the assessee;

(ii) the accommodation is taken on lease or rent by the employer, the value of the accommodation determined under sub-clause (ii) of clause (a) as increased by the value of the furniture and fixtures in respect of the period during which the said accommodation was occupied by the assessee during the previous year, exceeds the rent recoverable from, or payable by, the assessee;

(d) in a case where the accommodation is provided by the employer in a hotel (except where the assessee is provided such accommodation for a period not exceeding in aggregate fifteen days on his transfer from one place to another), the value of the accommodation determined at the rate of twenty-four per cent of salary paid or payable for the previous year or the actual charges paid or payable to such hotel, whichever is lower, for the period during which such accommodation is provided, exceeds the rent recoverable from, or payable by, the assessee.

            Explanation 2.—For the purposes of this sub-clause, value of furniture and fixture shall be ten per cent per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the assessee during the previous year.

            Explanation 3.—For the purposes of this sub-clause, "salary" includes the pay, allowances, bonus or commission payable monthly or otherwise or any monetary payment, by whatever name called, from one or more employers, as the case may be, but does not include the following, namely:—

   (a) dearness allowance or dearness pay unless it enters into the computation of superannuation or retirement benefits of the employee concerned;

   (b) employer's contribution to the provident fund account of the employee;

    (c) allowances which are exempted from the payment of tax;

   (d) value of the perquisites specified in this clause;

    (e) any payment or expenditure specifically excluded under the proviso to this clause.

            Explanation 4.—For the purposes of this sub-clause, "specified rate" shall be—

    (i) fifteen per cent of salary in cities having population exceeding twenty-five lakhs as per 2001 census;

   (ii) ten per cent of salary in cities having population exceeding ten lakhs but not exceeding twenty-five lakhs as per 2001 census; and

  (iii) seven and one-half per cent of salary in any other place;

     (iii)  the value of any benefit or amenity granted or provided free of cost or at concessional rate in any of the following cases—

   (a) by a company to an employee who is a director thereof;

   (b) by a company to an employee being a person who has a substantial interest in the company;

    (c) by any employer (including a company) to an employee to whom the provisions of paragraphs (a) and (b) of this sub-clause do not apply and whose income under the head "Salaries" (whether due from, or paid or allowed by, one or more employers), exclusive of the value of all benefits or amenities not provided for by way of monetary payment, exceeds fifty thousand rupees:

          [***]

            Explanation.—For the removal of doubts, it is hereby declared that the use of any vehicle provided by a company or an employer for journey by the assessee from his residence to his office or other place of work, or from such office or place to his resi­dence, shall not be regarded as a benefit or amenity granted or provided to him free of cost or at concessional rate for the purposes of this sub-clause;

   (iiia)  [***]

     (iv)  any sum paid by the employer in respect of any obliga­tion which, but for such payment, would have been payable by the assessee;

      (v)  any sum payable by the employer, whether directly or through a fund, other than a recognised provident fund or an approved superannuation fund or a Deposit-linked Insurance Fund established under section 3G of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948), or, as the case may be, section 6C of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), to effect an assurance on the life of the assessee or to effect a contract for an annuity; ¹[and]

     (vi)  the value of any other fringe benefit or amenity (excluding the fringe benefits chargeable to tax under Chapter XII-H) as may be prescribed :

            The following sub-clauses (vi), (vii) and (viii) shall be substituted for the existing sub-clause (vi) of clause (2) of section 17 by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010 :

     (vi)  the value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer, free of cost or at concessional rate to the assessee.

            Explanation.—For the purposes of this sub-clause,—

    (a) "specified security" means the securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and, where employees' stock option has been granted under any plan or scheme therefor, includes the securities offered under such plan or scheme;

   (b) "sweat equity shares" means equity shares issued by a company to its employees or directors at a discount or for con­sideration other than cash for providing know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called;

    (c) the value of any specified security or sweat equity shares shall be the fair market value of the specified security or sweat equity shares, as the case may be, on the date on which the option is exercised by the assessee as reduced by the amount actually paid by, or recovered from the assessee in respect of such security or shares;

   (d) "fair market value" means the value determined in accordance with the method as may be prescribed;

    (e) "option" means a right but not an obligation granted to an employee to apply for the specified security or sweat equity shares at a predetermined price;

    (vii)  the amount of any contribution to an approved superannuation fund by the employer in respect of the assessee, to the extent it exceeds one lakh rupees; and

    (viii)  the value of any other fringe benefit or amenity as may be prescribed:

                      Provided that nothing in this clause shall apply to,—

       (i)  the value of any medical treatment provided to an employee or any member of his family in any hospital maintained by the employer;

      (ii)  any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family—

   (a) in any hospital maintained by the Government or any local authority or any other hospital approved by the Govern­ment for the purposes of medical treatment of its employees;

   (b) in respect of the prescribed diseases or ailments, in any hospital approved by the Chief Commissioner having regard to the prescribed guidelines :

            Provided that, in a case falling in sub-clause (b), the employee shall attach with his return of income a certificate from the hospital specifying the disease or ailment for which medical treatment was required and the receipt for the amount paid to the hospital;

     (iii)  any portion of the premium paid by an employer in relation to an employee, to effect or to keep in force an insur­ance on the health of such employee under any scheme approved by the Central Government or the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), for the purposes of clause (ib) of sub-section (1) of section 36;

     (iv)  any sum paid by the employer in respect of any premium paid by the employee to effect or to keep in force an insurance on his health or the health of any member of his family under any scheme approved by the Central Government or the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), for the purposes of section 80D;

      (v)  any sum paid by the employer in respect of any expendi­ture actually incurred by the employee on his medical treatment or treatment of any member of his family other than the treat­ment referred to in clauses (i) and (ii); so, however, that such sum does not exceed fifteen thousand rupees in the previous year;

     (vi)  any expenditure incurred by the employer on—

   (1) medical treatment of the employee, or any member of the family of such employee, outside India;

   (2) travel and stay abroad of the employee or any member of the family of such employee for medical treatment;

   (3) travel and stay abroad of one attendant who accompanies the patient in connection with such treatment,

            subject to the condition that—

   (A) the expenditure on medical treatment and stay abroad shall be excluded from perquisite only to the extent permitted by the Reserve Bank of India; and

   (B) the expenditure on travel shall be excluded from per­quisite only in the case of an employee whose gross total income, as computed before including therein the said expenditure, does not exceed two lakh rupees;

    (vii)  any sum paid by the employer in respect of any expenditure actually incurred by the employee for any of the purposes specified in clause (vi) subject to the conditions specified in or under that clause :

                      Provided further that for the assessment year beginning on the 1st  day of April, 2002, nothing contained in this clause shall apply to any employee whose income under the head "Salaries" (whether due from, or paid or allowed by, one or more employers) exclusive of the value of all perquisites not provided for by way of monetary payment, does not exceed one lakh rupees.

                      Explanation.—For the purposes of clause (2),—

       (i)  "hospital" includes a dispensary or a clinic or a nursing home;

      (ii)  "family", in relation to an individual, shall have the same meaning as in clause (5) of section 10; and

     (iii)  "gross total income" shall have the same meaning as in clause (5) of section 80B;

                [* * *]

          (3)        "profits in lieu of salary" includes—

       (i)  the amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with the termination of his employment or the modification of the terms and conditions relating thereto;

      (ii)  any payment (other than any payment referred to in clause (10), clause (10A), clause (10B), clause (11), clause (12), clause (13) or clause (13A) of section 10), due to or received by an assessee from an employer or a former employer or from a provident or other fund, to the extent to which it does not consist of contributions by the assessee or interest on such contributions or any sum received under a Keyman insurance policy including the sum allocated by way of bonus on such policy.

            Explanation.—For the purposes of this sub-clause, the expression "Keyman insurance policy" shall have the meaning assigned to it in clause (10D) of section 10;

     (iii)  any amount due to or received, whether in lump sum or otherwise, by any assessee from any person—

   (A) before his joining any employment with that person; or

   (B) after cessation of his employment with that person.

 

--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
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Bank Audit Empanelment Announcement

Important Announcement on Empanelment for the year 2010-11 - (17-12-2009)

The Council of the Institute at its 242nd meeting held in April, 2004 had decided that there shall be a cut off date for condonation of cases for empanelment purposes as on 1st January and the cases received beyond the cut off date will not be considered for condonation. Accordingly, members may note as under: "For the purposes of Empanelment in the panel prepared by Office of C&AG and Bank Branch Auditors' Panel prepared by ICAI (for which Constitution Certificates as on 1st January are issued every year); no condonation of delay in submission of Form No. 18 beyond 31st January preceding the financial year under audit (e.g. 31st January, 2010 for empanelment for the year 2010-11) will be done by the Institute".

--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
          +91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
          vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx

IndianCAs: Real Time results of ICAI Elections 2009

 

Hello members,

 

After the 3 months long strenuous and sometimes irritating election campaign, now is the time to have thrill of the results. We have made arrangement to upload the latest available trends to satisfy your quest for information and anxiety.

 

Here are two links. for Regional Council and Central Council. I will provide info about WIRC only, unless someone from other region volunteer to provide me information. Counting begins on 19th. Late night 19th or early morning 20th, you will be able to get the first preference votes information. trends may be by late evening.

 

Here is the link

 

Regional Council:

http://indiancas.blogspot.com/search/label/ICAI%20Election%202009%3A%20Regional%20Council

 

Central Council:

http://indiancas.blogspot.com/search/label/ICAI%20Election%202009%20Central%20Council

 

 

You can add to your favourite to get it quickly once the counting begins..

Have good time!!

 

| Ashwin Nagar | FCA and SAP-FICO\SEM-BCS |

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Task Force Report on GS

Dear All,

 

Report of the Task Force on Goods and Service Tax - see attachment

--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
          +91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
          vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx

IndianCAs: CPE Credit Extended upto 31/01/2010

 

Extension of date for completion of CPE Hours for the calendar year 2009 - (15-12-2009)

Announcement regarding extension of date for completion of the mandated CPE hours requirements for the calendar year 2009 in respect of structured learning, for members holding certificate of practice: It is hereby announced that the date for completion of the mandated CPE hours requirements for the calendar year 2009 in respect of structured learning, for members holding of certificate of practice is hereby extended from 31st December 2009 to 31st January 2010. B. Muralidharan Secretray CPEC

 

| Ashwin Nagar | FCA and SAP-FICO\SEM-BCS |

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IndianCAs: Advance FBT paid for the FY:2009-10 is to be treated as advanc...

 

 

 

THE POST BUDGET MEMORANDUM OF THE ICAI CLEARLY SPECIFIES AS UNDER

"Advance FBT paid should be treated as advance income tax paid, so that the same can be adjusted against incometax liability in order to avoid the procedural hassles and time involved in claiming refund. Further in case there is no advance tax payable either on account of loss or exempt income appropriate circular be issued to grant refund."

To download the post budget memorandum just click here : http://www.mediafir e.com/file/ yjylh2ligyi/ 16677postbudget_ memorandum09. pdf 

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Clarification on st on Alcoholic

Clarification regarding service tax payable by manufacturers of alcoholic beverages on job work basis

Letter F.No. 332/17/2009-TRU, dated 30-10-2009

 

It may be recalled that vide Finance (No.2) Act, 2009, the definition of taxable service, namely, Business Auxiliary Service (BAS) was suitably amended so as to include the manufacture of alcoholic beverages on job work basis. In practice, the brand owners (BOs) of alcoholic beverages get the products (Indian Made Foreign Liquor) manufactured on job work basis under a contract manufacturing arrangement with distilleries having facility to manufacture such beverages. In trade parlance, such job workers/distilleries are called as 'contract bottling units' (CBU). The aforesaid arrangement has come under tax net w.e.f. 01,.09.2009.

2. Under section 67 of the Finance Act, 1994, service tax is chargeable on the 'gross amount charged' by the service provider for providing taxable services. As per CIABC the gross value of sales, as per invoices, includes the following elements:

1) Bottling/job charges - paid to CBU

2) Distribution costs including freight, transit insurance etc. – paid to CBU

3) Other reimbursables – paid to CBU

4) Cost of raw materials – paid to CBU

5) Cost of packaging materials – paid to CBU

6) State excise duty and VAT – paid to State Government

7) Surplus/profit – retained by BO

It was their plea that if the entire amount charged by CBU is subject to service tax, it would amount to charging tax on goods. The CIABC, therefore, requested that the service tax should be charged on the amount representing the charges for service alone. Accepting their plea, Notification No.39/2009-ST dated 23.09.2009 was issued wherein exemption from service tax has been provided on the value which represents the value of inputs i.e. raw materials and packaging materials used in the manufacture of such alcoholic beverages.

3. The CIABC has now sought clarifications on the tax base on which the service tax would be chargeable after allowing the deduction provided in the notification. In short, they want to know as to how many of the above 7 elements (para 2 above) would be includible in the value for the purpose of charging service tax.

4. For removal of doubts and with a view to avoid disputes on valuation, it is clarified that :-

a) Service tax would be payable on the bottling/job charges, distribution costs and other reimbursables.

b) So far as inputs i.e. raw materials and packing materials are concerned, one of the conditions of exemption notification No.39/2009-ST is that there should be documentary proof specifically indicating the value of these inputs. Therefore, service tax on the value of raw materials and packaging materials would be exempt only when such charges are specifically mentioned in the invoice raised/documents maintained by the CBU.

c) As regards the statutory levies, namely, excise duty /VAT, they do not present any 'consideration' for rendering the service. Whether such amount is paid by BO or by CBU, they have no nexus with the provision of service. As such, these levies will not be included for charging service tax.

d) Similarly, the surplus/profit earned by the BO being in the nature of business profit (which falls within the purview of direct taxes), will not be chargeable to service tax.

5. This position may be clarified suitably to the field formations.

--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
          +91 - 0 9440278412
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ICE

Dear All,

A colleague has sent me the below message. It needs to be followed by each one of us......

We all carry our mobile phones with names & numbers stored in its memory but nobody, other than ourselves, knows which of these numbers belong to our closest family or friends. 
  
If we met with  an accident or  fall ill, the people attending us would have our mobile phone but wouldn't know whom to call. Yes, there are hundreds of numbers stored but which one is the contact person in case of an emergency? Hence this "ICE" (In Case of Emergency) Campaign 
  
The concept of "ICE" is catching on quickly. It is a method of contact during emergency situations. As cell phones are carried by the majority of the population, all you need to do is store the number of a contact person or persons whom should be contacted during emergency under the name "ICE" ( In Case Of Emergency). 
  
The idea was thought up by a paramedic who found , when he went to the scenes of accidents, there were always mobile phones with patients, but they don't know which number to call. He therefore thought that it would be a good idea if there was a nationally recognized name for this purpose. In case of an emergency situation, Emergency Service personnel and hospital Staff would be able to quickly contact the right person by simply dialing the number you have stored as "ICE." 
  
For more than one contact name simply enter ICE1, ICE2 and ICE3 etc. A great idea that will make a difference! 
  
Let's spread the concept of ICE by storing an ICE number in our Mobile phones today! 
  
Please forward this. It won't take too many "forwards" before everybody will know about this.

It really could save your life, or put a loved one's mind at rest . 

Remember:- "ICE will speak for you when you are not able to".

Warm Regards

Murali Mohan

--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
          +91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
          vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx

IndianCAs: Dubai real estate facts

 

By Indranil Sen Gupta, Research Analyst

FORTY years earlier Dubai was a village on the edge of the Arabian Desert. Locals citizens lived in houses made out of mud shacks and the only vehicle for travel or moving was `The Ship of The Desert'.

After 40 years Dubai have created artificial islands full of luxury villas, the world's tallest tower, an underwater hotel and many more things which might make tails spin of one's eyes. Dubai is now the glittering crown of the Middle East. The gulf state is now being known for its tall skyscrapers, wall-to-wall shopping centers and luxury hotels.

But the whole glittering castle is of the boom in real estate was constructed on sand. Sand made of credit/borrowed money. But the leash of bubble got broken when the financial crisis broke off sending the prices of real estate to rock bottom levels.

Now prices in the real estate sector crashed where prices have fallen by up to 60%.

400 construction projects worth more than $300 billion have been shut down or postponed. The project cancelaation reveals demand havedried up and future outlook is also very bleak.

Even after the world economy tried to come out of the dark woods of recession the Dubai real estate sector struggles to survive. They are finding hard to find buyers even after prices came down by 60%.

Moreover the cost of living in Dubai has gone up like any thing.

All these will add the unemployment in Dubai. Most of the Asians are placed their and they might come back as Dubai have less to offer now and cost of living have goes up.

Foreigners have refused to buy the projects which have resulted further trap for inventory creation. This has resulted to default of payments of debt.

The fear in Western markets is that banks risk losing billions, which will damage their lending process and recovery of the economy too. Dubai World has a net exposure of debt of $59 billion of liabilities as of August. Where as the total debt of Dubai is $80 billion. So the Dubai World holds debt of 73.75% of Dubai's total debt. The Dubai Government announced that it is restructuring Dubai World, an investment company owned by the government, with immediate effect. It has asked creditors for a six-month standstill on its obligations until at least 30 May 2010. Nakheel, a real estate subsidiary of Dubai World, has a convertible bond due next months

The most of the fear of UK and US is that Dubai might go for sell of assets which they are holding in UK and US. If this breaks out then one might find cascading fall in the world equities.

The fall in the share prices of banks eroded £14 billion from the UK alone. As per Credit Suisse European banks could have an exposure of €40 billion (£36 billion) as loans to Dubai. Banks including HSBC and Royal Bank of Scotland have helped to finance Dubai's acquisitions and are now on the hook if the state cannot repay its debts. 
 

| 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

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ST Notification on BAS

Government of India
Ministry of Finance
(Department of Revenue)

 

New Delhi, the 2^nd December, 2009

 

Notification No. 43/2009-Service Tax

 

G. S. R.        (E).- Whereas the Central Government is satisfied that a practice was generally prevalent regarding levy of service tax ( including non-levy thereof ), under section 66 of the Finance Act, 1994 ( 32 of 1994) (hereinafter referred to as the Finance Act), on taxable service namely 'business auxiliary services' specified in sub-clause (zzb) of clause 105 of section 65 of the Finance Act provided by a person ( hereinafter called the 'service provider') to any other person ( hereinafter called the 'service receiver') during the course of manufacture or processing of alcoholic beverages by the service provider, for or on behalf of the service receiver, and that such services being a taxable service were liable to service tax under the said sub-clause (zzb) of clause 105 of section 65 of the Finance Act with effect from 1 st day of September 2009, which was not being levied according to the said  practice during the period commencing from the 1 st day of September, 2009 and ending with the 22^nd day of September, 2009;

 

Now, therefore, in exercise of the powers conferred by section 11 C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the Finance Act, the Central government hereby directs that the service tax payable on the said taxable service, namely 'business auxiliary service' provided by the service provider to the service receiver, during the course of manufacture or processing of alcoholic beverages by the service provider, for or on behalf of the service receiver, which was not being levied in accordance with the said practice, shall not be required to be paid in respect of  such business auxiliary service provided during the aforesaid period.

(F. No. 332/17/2009 – TRU)

 

(Prashant Kumar)

Under Secretary

--
CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
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          +91 - 0 9440278412
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ICAI ELECTION - unwanted SMS, Emails & Calls

Like you and Mr.Ramesh Agarwal, I as well as many of our members are equally suffering.  40/50 SMS and numerous mails that too multiple mails from the same candidate are such a pain that I sincerely wish the election is over. I do not mean any disrespect to any of our fellow members. I understand their anxity.

 

The institute can send mails giving contributions by candidates at one go and request all candidates not to canvass. All candidates hold respectable position in the society and it would be better if canvassing is not resorted to in future elections.

 

Best wishes

CA. P.Chatterjee

I fully agree with Mr Agrawal's view. One lady vandana is also disturbibg like hell on SMS as well as E mail. I wonder how come she has got all the details like mobile numbers, e mail id etc.

 

Our Institute should barred all these menance at once or may be such kind of approach should be barred from election's fair practice code.

 

CA Paresh Desai

 

Dear fellow members,
 
In continuation to the same I would like to add that some of the electoral candidates have send their article students at the residence/offices of the members. And each article has to at least cover 100 members  in a day.
Thanks & Best Regards
CA Kanan Gala

Dear All,

 

I have been having this menace as our friend has pointed out and I guess all of us have got into this mess.

 

I understand that we could ask the Institute not to share the e-mail and mobile numbers. Could one of you check? If it is not there then we need to write to the Institute and ask them to put up a code of ethics and also adopt a privacy policy.

 

In my personal case - I have been lucky for the past 10 days as I am out of India and switched off the mobile and I know that when I get back on Saturday morning I will be greeted with a huge number os SMS.

 

Unfortunately, the Institute elections have become worse than political elections. If you have friends contesting elections please forward this and any other mail on this topic and ask them to think.

 

CA Sriganesh  

Dear Shri All,

 

Thanks for the e-mail.

I fully subscribed to the feeling of my fellow members Chartered Accountants.

 

It is really so much of the botheration that some time we feel not to open the PC, the laptop, the incoming calls and even the SMS.

 

I really failed to understand as to what this election is? Are we really comparable to the most polluted politicians???

 

It's really the time to introspect and do something about the nuisance that we have been facing all through out from last more than a month.

 

With regards,

One totally frustrated and totally disturbed Chartered Accountant.  

Dear Members

 

It has made my family's life miserable. Even When you are in bed room, sms beep buzz. This beep is like a horrible sound. Every one in my family has fear of it. Before becoming CA, I never thought that this nobel profession will make my life miserable for few days. Let us, honour the dignity of profession and make lives happy.

Pawan Jain

 

Dear sirs,
Yes, I agree with all of you! It has become like a political battle and this does not go well with the esteemed profession like CAs in India. Also it sends a wrong signal to outside world of CAs that Indian CAs are no way less than their political leaders displaying not so good qualities of keeping the profession away from the politics. I am sure once elected, our elected members will conveniently forget their fellow colleagues following the foot steps of our elected MPs or MLAs.
So, our institute should bring out a Dos and Don'ts for the next election keeping the ethical and moral standards of our profession in high order.
Hope wisdom prevails with the central council for the future.
M.Ganeshan

Dear All

My name is Ameet Israni and my membership number is 13252 (1972 registration).

I am appalled at the manner in which this election is taking place and the mode of canvassing.

1) I have received the official list of candidates from the ICAI New Delhi only three days back and the election is on 4th Dec. The list was dispatched by ordinary post on 15th November 2009.

2) There are some candidates on the list for Central Council who may not deserve to be in the list. Has any background check been done?

3) The reputation of our profession has taken a severe blow due to unpleasant happenings in the past.

4) We have to device a system that if any member of the institute wishes to blackball any candidate, it should be allowed after an investigation.

I look for suggestions.

Kind Regards

Ameet Israni

It is me sincere appeal to all members, either young ones or like us to boycott the elections.

Let us go to H.C, Appeal for the dissolve of constitution wherein the elected members of the professionals are the members of any type of body except framing Accounting Standards.

 

Let the Institute should be controller by some other institute or by elected group of Learned Retired Advocates of H.C. to keep our profession intact, otherwise one day will come where no one will believe this profession.

 

All members are spending recklessly to mint money with interest once they elected.

 

One day we all have to stop this nonsense. It is possible only if we all unite at this crucial juncture to save the image of profession.

 

CA Laxmi Mittal

With all due respect and acknowledgement of sentiments and views expressed by some of the fellow members, I would like to add that the election of the council is a part of the overall process of democracy being practiced in our country and in my view, democracy itself is a process of evolution where we try to arrive at a fine balance between FREEDOM and CONTROLS. Electoral Canvassing is also an integral part of democratic process where some times we experience excesses on the side of FREEDOM. However, rather than trying to overcome such excesses through systemic CONTROLS, it would be in the interest of democracy to try and achieve it through the process of creating awareness about the importance and value of Individual privacy. This can be best achieved by initiating debate and discussion as done herein by the fellow members. I am sure that in times to come, the learned fraternity like ours shall give due consideration to the value of Individual privacy while going through this process of canvassing for the future elections.

 

Thanks.

 

Kishor Kansagra

Dear Srinivas/Ramesh,
 
While I do agree on this however I think its legitimate and fair to hear from Election Candidates over the phone and SMS and request for preferntial votes. This is all part of the election process and should be taken in a very right spirit.

Warm Regards,
 
Mahesh C Soni

Dear Sir
At least mr. Agarwal is getting SMS address to him, in my case SMS addressed to some mr. Deshpande is being delivered to me since last six months and despite several attempts to get it straightened out, no solution! Further it is very shallow and unbecoming when some one whom i do not know or even have a faintest acquaintance, sends me a mass sms for navratri, diwali, new year etc! Time our members reflected on this and use the money spent on these to better causes like sponsoring some deserving students for education!

Natarajan T.G.

To stop this menace, you could do the following :
 
Call your mobile service provider or visit their website and register for DNC ( though not very effective but still)
 
If you use outlook for emails then you can block / delete all messages containing word " election " by going to the rules option wherein you can create your own rules.
 
Similarly you can block emails by going to Option - "safe & Blocked sender" -in hotmail /gmail etc., and block a particular email ID. After the election you can unblock whichever you want. 
 
It is a pity that we all have to do this by wasting our precious professional time but there is no other option at this point of time.
 
My proposal to the ICAI :
Let's all write a letter to the ICAI and request them to order immediate stoppage of all types of canvassing for the election and if anyone does not follow the order, his name should be removed from the electoral list and debarred from the ICAI list for atleast six months. 
 

CA.Bharat Desai

Dear All,

 

Can we do something?..... i guess no... except exchanging mails and in the worst case not to vote.

Election fever from politics has been passed on to our esteemed institute....

 

Regards,

CA Himesh Lakhani

The best thing seems to be that you update your profile in the institute in which you do not provide any telephone or email id as the members' directory is the main source of this type of harassment. 

Any body at institute listning?

Regards

CA Deepak Purswani

I fully support & request our professional brothers & sisters to act responsibly.
vimal singhania