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Date : 23 Mar 2010 | RBI issues Revised Guidelines on Uniform Accounting for Repo/Reverse Repo Transactions | |
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Dear sir,
Ref : Web based registration of Chartered Accountant firms for empanelment for Concurrent Audit assignment for the year 2010 - 11
We have pleasure in informing you that our Bank has invited online applications for empanelment for Concurrent Audit assignment for the year 2010 - 11. The registration for the same will be open on our website www.denabank.com from 25.03.10 to 15.04.10. The details of the same are available on our website .
This is for your information.
Dy. General Manager
Inspection and Internal Audit Department,
4th floor, 17, Horniman Circle, Fort,
Mumbai -23
Attachment(s) from Ashwin Nagar
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Date: Mar 15, 2010 | Additional Disclosures by banks in Notes to Accounts | |
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March 4, 2010
All Regional Rural Banks
Dear Sir,
Provisioning Requirement for Standard Assets
Please refer to paragraph 2 of our circular RPCD.RRB.No.BC.97/03.05.34/2000-01 dated June 11, 2001 regarding provisioning requirements for 'standard assets'.
2. In this connection, a reference is invited to paragraph 158 of the Second Quarter Review of Monetary Policy for the year 2009-10 announced on October 27, 2009 (copy enclosed). It was proposed to increase the provisioning requirement for advances to the Commercial Real Estate (CRE) sector classified as 'standard assets' to 1.00 per cent with a view to building cushion against likely non-performing assets (NPAs). Accordingly, it has been decided to increase the provisioning requirement for advances to the CRE Sector classified as 'standard asset' to 1%. As regards other standard assets, it has been decided that while the provisioning requirements for direct advances to agriculture and SME sectors would remain unchanged at 0.25%, the same for all other loans and advances would be 0.40%.
3. The standard asset provisioning requirements for all categories, after the above changes, are summarised below.
Sr.No. | Category of standard asset | Rate of provisioning |
(a) | Direct advances to Agriculture and SME sectors | 0.25 % |
(b) | Commercial Real Estate (CRE) sector | 1.00% |
(c) | All other loans and advances not included in (a) and (b) above | 0.40% |
4. Please acknowledge receipt to our Regional Office concerned.
Yours faithfully
(R.C.Sarangi)
Chief General Manager
Encl: 1
Paragraph 158 of the Second Quarter Review
Of Monetary Policy for the year 2009-10
In view of large increase in credit to the commercial real sector over the last one year and the extent of restructured advances in this sector, it would be prudent to build cushion against likely non-performing assets (NPAs). Accordingly, it is proposed to increase the provisioning requirement for advances to the commercial real sector classified as 'standard assets' from the present level of 0.40 per cent to 1 per cent.
Companies (Central Government's) General Rules and Forms (Second Amendment), 2010 - Insertion of rule 20G(1) and Form No. 68
Notification No. G.S.R. 177(E), dated 5-3-2010
In exercise of the powers conferred by sub-section (1) of Section 642 read with sub-section (1) of 61OB of the Companies Act, 1956, the Central Government hereby makes the following rules further to amend the Companies (Central Government's) General Rules and Forms, 1956, namely:—
1. (1) These rules may be called the Companies (Central Government's) General Rules and Forms (Second Amendment), 2010.
(2) They shall come into force with effect from the 14th day of March, 2010.
2. In the Companies (Central Government's) General Rules and Forms, 1956, hereinafter referred to as the said rules,
(i) after Rule 20F, the following rule shall be inserted, namely :—
"20G(1) An application for rectification of mistakes made while filing Form No.1, Form No.1A and Form No.44 electronically, on the Ministry's website, shall be made to the Registrar of Companies in Form No.68 and such application shall be accompanied by fee of rupees one thousand for rectification of mistakes in Form No.1 and Form No.IA and rupees ten thousand for rectification of mistakes in Form No.44 respectively;
(2) An application in Form No.68 complete in all respects shall be made to the Registrar within a period of three sixty-five days from the date of approval of Form No.1, Form No.IA and Form No.44 respectively by the Registrar:
Provided that the provision relating to the rectification of mistakes as is referred to in sub-rule (1) shall also be made applicable to the Form No.1, Form No.1A and Form No.44 filed and approved electronically on the Ministry's website, prior to the 14th day of March, 2010.
(3) After receiving the application for rectification of mistakes, the Registrar shall examine the said application based on the relevant documents filed and available on record and thereafter approve the application and intimate the mistakes rectified to the applicant within a period of sixty days from the date of filing of the said application:
Provided that the rectification of mistakes shall be allowed only once in respect of one company."
India Budget: Sundry Debtors and share of Pakistan
THERE is one item consistent and uniform in all Union Budgets from 1950. If you look at the Annexure-3 to the Receipts Budget of India, 2010-11, you will find certain interesting figures.
India ' s debt by the end of March 2011 is expected to be nearly 40 Lakh Crores.
As per the Statement of the Liabilities of the central Government, the Total Liabilities are Rs. 39,44,598 Crores. From this an amount of Rs. 300 crores is deducted and the net liability is shown as Rs. 39,44,298 Crores.
What is this amount of Rs. 300 Crores?
This is supposed to be “Amount due from Pakistan on account of share of Pre-partition debt (Approx)�.
This same amount had been shown consistently in all our budgets since 1950.
In 1950-51, when our total liability was Rs. 2865 Crores, this 300 Crores was deducted to arrive at Rs. 2565 Crores. That is the dues from Pakistan constituted slightly more than 10 percent of our debts. Ten percent of the present liabilities would amount to about 4 Lakh Crores, about 40% of today's budget.
Even at 6% interest per annum, this would amount to approximately Rs. 10,000 Crores now.
The fact is that we are not able to collect this amount from Pakistan for the last 60 years. Why to keep showing it in the budget year after year. Is it to show our inability to collect from Pakistan or do we send a copy of our Budget to Pakistan to remind them gently that they owe us Rs. 300 Crores? Why can't we simply write off this 300 Crores and be done away with it instead of having this blot in all our annual budget year after year? As a goodwill gesture, can't we tell Pakistan that their dues are written off? May be there are diplomatic problems!
Why are Dues from Pakistan shown in Statement of Liabilities of Central Government?
THE position of the undivided Government as on the date of partition was that its outstanding liabilities exceeded its assets so that ultimately it was the debt that was being divided between the two Governments. On a rough estimate the outstanding debt of the Central Government as on the 14th August, 1947, included in this is not merely the outstanding public debt but all its obligations to outside parties such as deposits in Postal Savings Banks, outstanding balances of Post Office Cash and National Savings Certificates, Provident Fund Deposits of Government servants, the amount likely to be paid to the British Government for surplus stores and other property acquired by the Defence Services and the capitalised value of the liability for pensions in payment on the date of partition and pensions earned by serving officers upto that date, was likely to be of the order of Rs. 3,300 crores.
In his Budget Speech of 1948, Finance minister Shanmukham Chetty said, “On a very rough estimate this debt is likely to be of the order of Rs. 300 crores and the rate of interest may be near about 3 per cent. Pakistan's total debt is to be repaid in Indian rupees in fifty annual equated instalments for principal and interest. As a measure of assistance to the new Dominion in its earlier years it has been agreed that the first repayment should commence only in 1952. In addition to the Rs. 75 Crores given to her out of the cash balance of the undivided Government it has also been agreed that India would make available to Pakistan a further sum of Rs. 6 crores for meeting the expenditure on the setting up of Ordnance factories and similar special institutions required by her. This amount will also be added to Pakistan's debt. With this settlement, the terms of which, as the Deputy Prime Minister has already told the House, are generous and conceived in a real spirit of assistance to Pakistan, the purely financial problems arising out of the partition may be said to have been satisfactorily solved.�
That was in 1948, but when it came to payment, nothing came from Pakistan.
In the 1952-53, budget, credit had been taken for a recovery of Rs.9 crores from Pakistan as the first instalment of its debt repayment to India, but not a paisa came.
In his 1954 Budget Speech, Finance Minister Deshmukh said, “the budget for the current year placed the revenue at Rs.439.26 crores and the expenditure at Rs.438.81 crores leaving a nominal surplus of Rs.45 lakhs. In balancing this budget, I had taken credit for a recovery of Rs.18 crores from Pakistan on account of two instalments due from that country in repayment of the partition debt. I have been having discussions on this subject with the Finance Minister of Pakistan and we both hope that it will be possible to commence the repayment of the debt in the coming year. This single factor has made for a deterioration of Rs.18 crores in the revenue budget for the current year, and converted the surplus of Rs.45 lakhs into a deficit of Rs.16. 96 crores.�
In the next year's budget speech, he said, “I am not taking any credit for repayment of partition debt by Pakistan in view of what has happened in the last two years.�
So the debt continues and do we hope to collect it some day?
Section 35A(3) of the Central Excise Act, 1944 / Section 128A(3) of the Customs Act, 1962 as it existed before 11.5.2001 provided that Commissioner (Appeals) shall, after making such further enquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling decision or order appealed against or may refer the case back to the adjudicating authority with such direction as he may think fit for a fresh adjudication or decision as the case may be, after taking additional evidence, if necessary.
2. An amendment was brought out in the aforesaid sections vide Finance Act, 2001 w.e.f. 11.5.2001 deleting the phrase as mentioned in bold above with an intention to withdraw the powers to Commissioner (Appeals) to remand the cases for fresh adjudication to the original adjudication authorities. After the amendment in 2001, the said Sections read as follows:-
"The Commissioner(Appeals) shall, after making such further enquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling the decision or order appealed against."
3. The matter whether the Commissioner(Appeals) continues to have powers to remand beyond 11.5.2001 came up before the Gujarat High Court in the case of M/s. Medico Lab. The Hon'ble High Court of Gujarat, vide order dated21.9.2004 in the case of CCE, Ahmedabad-I Vs. Medico Lab, held that Commissioner(Appeals) continues to have the power to remand even after the amendment.
4. Hon'ble Punjab & Haryana High Court in the case of CC, Amritsar Vs. M/s. Enkay (India) Rubber Co. Pvt. Ltd. vide order dated 8.3.2007 and in the case of CCE, Jallandhar Vs. B.C. Kataria [2008(221) ELT.508 P&H] vide order dated 6.9.2007 had held that the Commissioner(Appeals) have been divested of the powers to remand the cases back to adjudicating authority after deletion of that power from Section 35A(3) of Central Excise Act vide amendment made in 2001. Hon'ble High Court has distinguished the judgement of the Gujarat High Court in the case of Medico Labs in this case and also stated that the reliance on the Hon'ble Supreme Court judgement in the case of Umesh Dhaimonde (1998(98) ELT 584 ) cannot be made as in that case Hon'ble Supreme Court was not dealing with the provisions where earlier power of remand was specifically conferred and subsequently taken away by amendment carried by Finance Act, 2001.
5. The Hon'ble Supreme Court in its judgement dated 1.3.2007 in Civil Appeal No. 6988/2005 in the case of MIL India Ltd. [2007(210) ELT.188(SC)] has observed that "in fact, the power of remand by the Commissioner(Appeals) has been taken away by amending Section 35A with effect from 11.5.2001 under the Finance Bill, 2001. Under the Notes to clause 122 of the said Bill it is stated that clause 122 seeks to amend Section 35A so as to withdraw the power of the Commissioner(A) to remand matters back to the adjudicating authority for fresh consideration." The said decision of the Supreme Court was brought to the notice of CESTAT in the case of CCE, Jallandhar Vs. Hawkins Cookers Ltd. reported in 2007(8)RLT.7, but the Tribunal held that the Supreme Court in the said case had only noted the provisions of amended law whereas the specific issue whether Commissioner(A) has power to remand after amendment to provisions of Section 35A has been considered by the Hon'ble Gujarat High Court in the case of Medico Lab and the High Court has held that the Commissioner (A) has power to remand under the amended provisions also. The appeal (CEA No.29/2008) filed by the Commissioner of Central Excise, Jallandhar against the said order in the Hawkins Cookers case stating that the said observations as quoted above are part of the ratio decidendi of the decision of the Hon'ble Supreme Court , has been allowed by the Punjab & Haryana High Court vide order dated 14.7.2008 relying upon its own judgement in the case of CCE, Jallandhar Vs. B.C. Kataria [2008(221)ELT.508].
6. In the light of the observations of Hon'ble Supreme Court in the case of MIL India Ltd. and the judgement of Hon'ble High Court of Punjab & Haryana in the case of M/s. Enkay (India) Rubber Co. Pvt. Ltd., M/s. B.C. Kataria and M/s. Hawkins Cookers Ltd., you are requested to issue suitable instructions to the Commissioners(A) working under your jurisdiction to follow the said judgments strictly. It may also be brought to their notice that Hon'ble Supreme Court in the case of MIL India Ltd., while noting that the powers of remand had been taken away, has also categorically stated that the Commissioner (A) continues to exercise the power of adjudicating authority in the matter of assessment and the Commissioner(A) can add or subtract certain items from the order of assessment made by the adjudicating authority and the order of Commissioner (A) could also be treated as an order of assessment. Board instructions dated 25.7.2008 (copy enclosed) may be referred in this regard.
7. The receipt of this instruction may please be acknowledged. A copy of the instruction issued to the Commissioners(Appeals) under your jurisdiction may also be endorsed to the Board. The issue may also be monitored at your level.
Procedure in Appeal under Sec. 35A of the Central Excise Act/Section 128A of Customs Act/Sec. 85 of the Finance Act, 1994 - reg.
Section 35A of the Central Excise Act, 1994 prescribes the procedure in appeal to be followed by Commissioner (Appeals) while deciding the appeals filed before him under Section 35/35E of the Central Excise Act 1944. Similar provisions exist under Section 128A of the Customs Act, 1962 and Section 85 of the Finance Act, 1994.
2. Sub-Section (3) of the Section 35A of Central Excise Act, 1994 reads as follows-
The Commissioners(Appeals) shall, after making such further enquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling the decision or order appealed against;
3. The Board has noted that Commissioner (Appeals) do not resort to the mechanism of further enquiry as provided to them under the appeal procedure as above in such cases where it may be necessary before passing the order. Sub-Rule 4 of Rule 5 of Central Excise (Appeals) Rules, 2001 provides that nothing contained in said rule shall affect the power of the Commissioner (Appeals) to direct the production of any document, or the examination of any witness to enable him dispose of the appeal.
4. In the light of the provisions as contained in the statute and the rules made there under, I am directed to request you to advise Commissioners(Appeals) working in your jurisdiction to resort to enquiry in such appeals as may be necessary in the facts and circumstances of the case before passing a just and fair order in accordance with the provisions of the Act.
Processing of returns of A.Y. 2008-09 - Steps to clear the backlog
Instruction No. 1/2010, dated 25-2-2010
The issue of processing of I.T. returns for the A.Y. 2008-09 and giving credit for TDS has recently been considered by the Board and following decisions have been taken, in order to clear the backlog of returns pending for processing:
i) In all the returns filed in ITR-1 and ITR-2 for the A. Y. 2008-09, where the aggregate TDS claim does not exceed Rs four lakh and where the refund computed does not exceed Rs.25,000; the TDS claim of the tax payer concerned should be accepted at the time of processing of return.
ii) In all the returns filed in forms other than ITR-1 and ITR-2 for the A. Y. 2008-09, where the aggregate TDS claim does not exceed Rs four lakh and the refund computed does not exceed Rs.25,000, and there is 70% matching of TDS amount claimed, the TDS claim of the tax payer concerned should be accepted at the time of processing of return.
iii) In all remaining cases, TDS credit shall be given after due verification.
Dear All,
Find attached a copy of notification dated 10.2.2010 notifying new Form 32 w.e.f. 14.3.2010. Main changes are:
1) Provision has been made for filing Form 32 for directors who ceased to be associated with the company on or before 31.10.2006 and do not have DIN.
2) Signatory to the form has to verify that the Director has given declaration to the company in writing that he is not restrained/ disqualified /removed of, for being appointed as a director under the provisions of the Act including Sections 203, 274 and 388E.
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CBDT clarifies that Explanation to 194A is not meant to apply in cases of banks where credit is made to provisioning account on daily/monthly basis for the purposes of macro monitoring only by the use of CBS software
As per provisions of section 194A of the Income Tax Act 1961, income tax has to be deducted at source at the time of credit of interest income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, at the rates in force if such interest amount exceeds specified limit. Further, Explanation to section 194A states that "for the purpose of this section, where any income by way of interest as aforesaid is credited to any account, whether called 'Interest payable account' or 'Suspense Account' or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly".
2. Representations have been received from Indian Banks Association (IBA) seeking clarification regarding deduction of tax at source from payment of interest on time deposits by banks using Core-Branch Banking Solutions (CBS) software. In case of banks using CBS software, interest payable on time deposits is calculated generally on daily basis or monthly basis and is swept & parked accordingly in the provisioning account for the purposes of macro-monitoring only. However, constructive credit is given to the depositor's / payee's account either at the end of the financial year or at periodic intervals as per practice of the bank or as per the depositor's / payee's requirement or on maturity or on encashment of time deposits; whichever is earlier.
3. The matter has been considered by the Board. Explanation to section 194A was introduced with effect from 1.4.1987 by the Finance Act, 1987 to plug the loophole of avoiding deduction of tax at source by crediting interest in the books of accounts under accounting heads 'interest payable account' or 'suspense account' instead of to the depositor's / payee's account. Therefore, the Explanation is not meant to apply in cases of banks where credit is made to provisioning account on daily/monthly basis for the purposes of macro monitoring only by the use of CBS software.
4. In view of the above position, it is clarified that since no constructive credit to the depositor's / payee's account takes place while calculating interest on time deposits on daily or monthly basis in the CBS software used by banks, tax need not be deducted at source on such provisioning of interest by banks for the purposes of macro monitoring only. In such cases, tax shall be deducted at source on accrual of interest at the end of financial year or at periodic intervals as per practice of the bank or as per the depositor's / payee's requirement or on maturity or on encashment of time deposits; whichever event takes place earlier; whenever the aggregate of amounts of interest income credited or paid or likely to be credited or paid during the financial year by the banks exceeds the limits specified in section 194A.
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Best Wishes
CA. V.M.V.SUBBA RAO
We are forwarding herewith a copy of Budget Analysis, 2010.
Thanks & Regards,
SNK
Attachment(s) from SNK
1 of 1 File(s)
With regards,
Sangeet Kr Gupta, ( = +91-9312608426
FCA, ICWA, PGDMM, B.Com(Hons)
Team Leader, Finsys Infotech Limited, the OEM of Finsys ERP packages
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Attachment(s) from Sangeet
1 of 1 File(s)
Please find the attachment of detailed Analysis of Budget 2010-11 & I T Matter March 2010. I look forward to your valuable feedback / suggestion.
Thanks.
Attachment(s) from Ashwin Nagar
1 of 1 File(s)
Attachment(s) from Ashwin Nagar
1 of 1 File(s)
