30 March 2011

Revised Schedule VI- wef 01/04/2011-NOTIFICATION ISSUED

COMPANIES ACT

NOTIFICATION

Company Law : Section 642 of the Companies Act, 1956 - Schedules, forms and rules - Power of Central Government to make rules - Amendment in Notification No. S.O. 447(E), dated 28-2-2011

NOTIFICATION [F. NO. 2/6/2008-C.L-V], DATED 30-3-2011

In exercise of the powers conferred by clause(a) of sub-section(1) of section 642 read with sub-section(1) of section 210A and sub-section (3C) of section 211 of the Companies Act,1956, (1 of 1956), the Central Government hereby makes the following amendment to paragraph 2 of the notification No.447(E) dated the 28th February, 2011:-

"The notification shall come into force for the Balance Sheet and Profit and Loss Account to be prepared for the financial year commencing on or after 1.4.2011".



--
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

29 March 2011

Clarification regarding exemption from filing of ER-4, ER-5 & ER-6 returns

SERVICE TAX

LETTER

Service Tax : LETTER : [F.NO.209/03/11-CX-6], DATED 15-2-2011

The undersigned is directed to refer to Notification No. 20/2010-Central Excise (NT), dated 18.05.2010, Notification No. 21/2010-Central Excise (NT), dated 18.05.2010, Notification No. 17/2006-Central Excise (NT), dated 01.08.2006 and Notification No. 39/2004-Central Excise (NT), dated 25.11.2004.

2. It has been brought to the notice of the Board that there is lack of clarity regarding the exemption from filing the Annual Financial Information Statement (ER-4) prescribed under Rule 12(2)(a) of the Central Excise Rules, 2002 and the annual declaration (ER-5) and the monthly return (ER-6) relating to Principal Inputs prescribed under Rule 9A(1) and Rule 9A(3) of the CENVAT Credit Rules, 2004 respectively.

3. Notification No. 17/2006-Central Excise (NT), dated 01.08.2006, as amended, issued under Rule 12(2)(b) of the Central Excise Rules, 2002, inter alia, exempts assessees who paid duty of excise less than Rs. 1 crore in the preceding financial year, from filing the ER-4 return. Similarly, Notification No. 39/2004 Central Excise (NT), dated 25.11.2004, as amended, issued Rule 9A(4) of the CENVAT Credit Rules, 2004, exempts the specified class of manufacturers who paid duty of excise less than Rs. 1 crore in the preceding financial year, from filing ER-5 declaration and ER-6 return. Notification No. 20/2010-Central Excise (NT) and Notification No. 21/2010-Central Excise (NT) both dated 18.05.2010, prescribe that assessee who paid total duty of Rs. 10 lakhs or more including the duty paid by utilization of CENVAT credit in the preceding financial year, shall file such return/declaration electronically. A doubt has arisen on account of the different threshold limits prescribed for exemption from filing these returns and for filing these returns electronically.

4. The matter has been examined. The exemption provided under Notification No. 17/2006-Central Excise (NT), dated 01.08.2006 and Notification No. 39/2004-Central Excise (NT), dated 25.11.2004, as amended, is available to inter alia assessee who paid duty of excise less than Rs.1 crore including the amount paid by utilization of CENVAT credit. It is, therefore, clarified that the assessees or class of assessees who are not required to file the ER-4, ER-5 & ER-6 returns because of the above exemption, are not required to file such returns electronically even it the duty paid by them including the amount paid by utilization of CENVAT credit in the preceding financial year exceeds Rs.10 lakhs.

5. Trade and industry as well as field formations may be informed suitably.



--
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

27 March 2011

Notification on Revised Schedule VI

Company Law : Section 641 of the Companies Act, 1956 – Schedules, forms and rules – Power to alter Schedules – Replacement of existing Schedule VI by new Schedule VI

NOTIFICATION NO. S.O. 447(E), DATED 28-2-2011

Whereas the Central Government in consultation with the National Advisory Committee on Accounting Standards framed the Companies (Accounting Standards), Rules, 2006 vide G.S.R. No. 739(E), dated the 7th December, 2006 and was subsequently amended vide notification numbering (i) G.S.R. 212(E), dated the 27th March, 2008 (ii) G.S.R. 225(E), dated the 31st March, 2009, in exercise of the powers conferred by clause (a) of sub-section (1) of section 642, read with sub-section (1) of section 210A and sub-section (3C) of section 211 of the Companies Act, 1956 (1 of 1956);

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 641 of the Companies Act, 1956 (1 of 1956), the Central Government hereby replace the existing Schedule VI to the said Act by the following Schedule VI,


--
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

24 March 2011

FM on Amendments to Finance Bill,2011

IT: Finance Minister's Reply to the Discussion on the Finance Bill 2011-12 in Lok Sabha

 

Press Release, dated 22-3-2011

 

Madam Speaker,

It is unfortunate that the colleagues from across the House chose not participate in the discussion on the Finance Bill 2011-12. In a democratic polity the Government stands to benefit from inputs from colleagues from both sides of the House. In turn, they have an opportunity to lend their voice and expertise to influence public policy in the larger national interest. When this does not happen, it does not bode well for the institution or the society at large.

 

2. I would like to thank all the speakers who chose to spoke on the Finance Bill 2011-12. A number of valuable suggestions have been made. I have already responded to some of these suggestions while replying to the General Discussion on the Budget and I also addressed a few concerns while introducing the Bill earlier today.  I propose to address some more suggestions in the course of my reply.

 

Madam Speaker,

3. In my proposals for the Direct Taxes, for the year 2011-12, I had proposed to provide lower tax rate of 15 per cent on dividends received by Indian companies from foreign subsidiary companies in which the Indian company holds more than 50 per cent share capital. Several representations have been made requesting further relaxation  in the ownership pattern of the foreign subsidiaries.  I, therefore, propose to lower the holding requirement in the foreign company from 50 per cent to 26 per cent. This will enable overseas joint ventures with Indian partnership, to also avail this benefit.  

 

4. In order to provide for deduction to employer's contribution to a pension scheme on account of an employee, I propose a consequential amendment in section 40 A (9) so that the deduction to the employer for his contribution is not barred under this section. 

 

5. As no deduction for export profits is allowed after April 1, 2005, I propose that such export profits should also not be allowed as a deduction while computing book profit for the purpose of levy of Minimum Alternate Tax (MAT) after the said date.

 

 

6. Suitable amendments have been proposed to the Finance Bill to give effect to these changes.

 

Madam Speaker

7. In respect of my Indirect Tax proposals, among the Government amendments to the Finance Bill, I propose to insert a new provision in the Customs Tariff Act to enable the Central Government to extend anti-dumping duty imposed on an article in cases of circumvention. The other amendments are technical in nature and do not involve any substantive change.

 

8. The House would recall that one of the considerations that guided the formulation of my proposals on indirect taxes was to prepare the ground for the transition to GST, beginning with a reduction in the number of exemptions. It was in this background that a mandatory levy of 10 per cent was proposed on branded ready-made garments and made-ups of textiles. I have received a large number of representations seeking a review of this proposal on the ground that this industry is still quite fragmented with a pre-dominance of unorganised units. While moving the Finance Bill for consideration earlier today, I have already announced an increase in the level of abatement on these products so that the overall burden of tax comes down and small manufacturers benefit.  I would take this opportunity to re-emphasize that  this would enable an SSI unit to continue to enjoy the exemption even if  it had a turnover based on Retail Sale Price (RSP) of Rs.8.9 crore in 2010-11. I shall now take up some additional measures to provide relief to this sector.

 

9. It has been pointed out by the garment industry that often brand owners who outsource production to small units do not disclose the RSP to them. Since the duty is payable on a value linked to the RSP, this poses a problem for small manufacturers. A deeming provision is being made to enable such manufacturers to pay duty on the wholesale price at which they make a sale to the brand owner. As and when the brand-owner affixes the RSP on the garment or made-up, he would pay the additional duty, if any.

 

 

10. The garment and made-up industry has a high incidence of return of unsold stock. In order to obviate the burden of double payment on such goods, I propose to exempt from excise duty, returned goods not exceeding 10 per cent of the value of clearances of the unit in the preceding financial year. Physical verification of stock of such returned goods by Central Excise officers would not be necessary.

 

11.    The doubts and queries raised by the industry have also been examined. A detailed clarification is being issued on these. I would also like to recapitulate to the Hon'ble Members that –

i)   The levy does not apply to unbranded goods;

ii)  It does not apply to goods made to order for a retail customer;

iii) The benefit of SSI exemption is available to goods bearing or sold under the brand name of the small manufacturer himself

iv) Simplified Export procedure is available to units that predominantly export and sell unbranded goods or goods bearing their own brand name in the domestic market.

 

12. One issue that Hon'ble Members have persistently raised relates to the reduction of import duty on raw silk (not thrown) from 30 per cent ad valorem to 5 per cent ad valorem. Shri Deve Gowda ji also mentioned it in his intervention today. The annual requirement of raw silk for the weaving industry is around 30,000 metric tonnes. The domestic sericulture industry is able to produce two-thirds of this requirement and around 10,000 metric tonnes needs to be imported.  In reducing the duty Government have tried to balance the interests of the sericulture sector and silk weavers. As I have already stated earlier today, Government will keep close watch on import volumes and domestic prices and respond, if required, in the interests of domestic sericulture.

 

13. Some suggestions have been received in respect of the levy of 1 per cent  Central Excise duty on 130 items. I propose to extend RSP based assessment with an abatement of 35 per cent to many of these items so that disputes with regard to valuation are avoided. I also propose to exempt any waste, scrap or parings arising in the course of manufacture of these items as a measure of relief.

 

14. To provide a simplified regime for taxpayers exclusively manufacturing these items, the following procedural relaxations are being made:

i)    Physical verification of premises would not be necessary for new registrants;

ii)  Visits to such units by Central Excise officers would be permitted only with due authorisation as in the case of SSI units;

iii)   They would be required to file only quarterly returns; and

iv)   A simplified return format will be prescribed.

15. Based on the feedback from domestic industry, I am proposing the following reliefs in customs and central excise duties with a view to encourage domestic manufacture:

i)  To extend the concessional rate of 5 per cent CVD and Nil SAD to parts of all computer printers imported by actual users;

ii)  To exempt seven specified parts of personal computers from levy of special additional duty of customs;

iii)   To restore full exemption from excise duty (and CVD) on silicon wafers imported for manufacture of solar cells/modules;

iv)    To exempt certain types of coking coal imported for the manufacture of iron or steel from customs duty;

v)   To prescribe an unconditional 1 per cent excise duty (and CVD) on mobile handsets including cellular phones in  addition to 1 per cent NCCD already leviable; and

vi)   To reduce the basic customs duty from 60 to 30 per cent on CKD kits containing a pre-assembled engine, gear box or transmission assembly, imported for the manufacture of vehicles.

 

16. Notifications to give effect to these changes would be issued in due course and laid on the table of the House.

 

17. As for Service Tax, I have already announced earlier today our decision to exempt the new levy on health services in entirety both in respect of services provided by hospitals as well as by way of diagnostic tests.

 

18. Point of taxation Rules are due to come into force from April 1, 2011 and are meant to shift the payment of service tax from only cash basis towards accrual basis. The changes are essential to align the system of payment of taxes between goods and services. Many taxpayers have expressed concerns about some provisions and also sought some time for the switchover on account of changes required in their software. Accordingly, certain changes in the relevant provisions are being worked out and an additional period of three months up to June 30, 2011 is being provided to make the transition. These changes shall be notified shortly after completing the process of consultation.

 



--
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

23 March 2011

Analysis on Schedule VI

Dear Reader,

We are pleased to share with you our Supplement to Assurance Eye: Revised Schedule VI.

The Ministry of Corporate Affairs (MCA) recently issued a revised Schedule VI to the Companies Act, 1956, to lay down a new format for preparation and presentation of financial statements by Indian companies. The revised Schedule VI is applicable to companies following Indian GAAP (and not Ind-AS). Though a formal circular/official notification regarding the revised Schedule VI is still awaited, the MCA website states that it is applicable from the financial year 2010-11 onwards.

The revised Schedule VI introduces many new concepts and disclosure requirements and does away with several statutory disclosure requirements of the existing Schedule VI. More importantly, the revised schedule throws up numerous questions, the answers to which may not be straight-forward and would need additional guidance from the MCA or the Institute of Chartered Accountants of India (ICAI).

The efforts involved in implementing the revised Schedule VI, particularly, considering that it applies to 2010-11 financial statements and the consequences thereof should not be underestimated. The application of the revised Schedule VI will entail significant time and investments and may necessitate customizing IT/MIS systems within a short period. This Supplement to Assurance Eye gives an overview of the key changes and implications, critical issues and our perspectives thereon. We encourage you to read this Supplement to understand various issues that may apply to your company.

Click here to read the supplement

Thank you,
Ernst & Young

--
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

22 March 2011

Amendments to Finance Bill,2011 & GST

1.AMENDMENTS TO FINANCE BILL, 2011
2. CONSTITUTION AMENDMENT BILL FOR GST
 
SEE ATTACHMENTS

--
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

16 March 2011

New Name Availability Rules

COMPANIES ACT

RULES/REGULATIONS

Company Law : Companies (Name Availability) Rules, 2011

In exercise of the power conferred by clause (a) of sub-section (1) of section 642 read with sections 20 and 21 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following Rules:

1.(i) These Rules may be called "Companies (Name Availability) Rules, 2011";

(ii) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2. As per provisions contained in section 20 of the Companies Act, 1956, no company is to be registered with undesirable name. A proposed name is considered to be undesirable if it is identical with or too nearly resembling with:

   (i)  Name of a company in existence; or

  (ii)  A registered trade-mark or a trade mark which is subject of an application for registration, of any other person under the Trade Marks Act, 1999.

3. After notification of these Rules, while applying for a name in the prescribed e-form-1A, using Digital Signature Certificate (DSC), the applicant shall be required to furnish a declaration to the effect that:

   (i)  he has used the search facilities available on the portal of the Ministry of Corporate Affairs (MCA) i.e., www.mca.gov.in/MCA21 for checking the resemblance of the proposed name(s) with the companies and Limited Liability Partnerships (LLPs) already registered or the names already approved.

  (ii)  the proposed name(s) is/are not infringing the registered trademarks or a trademark which is subject of an application for registration, of any other person under the Trade Marks Act, 1999;

(iii)  the proposed name(s) is/are not in violation of the provisions of Emblems and Names (Prevention of Improper Use) Act, 1950 as amended from time to time;

(iv)  The proposed name is not offensive to any section of people, e.g., proposed name does not contain profanity or words or phrases that are generally considered a slur against an ethnic group, religion, gender or heredity;

  (v)  he has gone through all the prescribed guidelines, given in these Rules, understood the meaning thereof and the proposed name(s) is/are in conformity thereof;

(vi)  he undertakes to be fully responsible for the consequences, in case the name is subsequently found to be in contravention of the prescribed guidelines.

4. Where, the proposed name is containing more than one word, there will be an option in the e-form 1A for certification by the practicing Chartered Accountants, Company Secretaries and Cost Accountants, who will certify that he has used the search facilities available on the portal of the Ministry of Corporate Affairs (MCA) i.e., www.mca.gov.in/MCA21 for checking the resemblance of the proposed name(s) with the companies and Limited Liability Partnerships (LLPs) already registered or the names already approved and the search report is attached with the application form. The professional will also certify that the proposed name is not an undesirable name under the provisions of section 20 of the Companies Act, 1956 and also is in conformity with Companies (Name Availability) Rules, 2011 and Guidelines made therein.

5(i). Where e-form 1A has been certified by the professional in the manner stated at '4' above, the name will be made available by the system online to the applicant without backend processing by the Registrar of Companies (ROC). This facility is not available for applications for change of name of existing companies.

(ii) Where a name has been made available online on the basis of certification of practicing professional in the manner stated above, if it is found later on that the name ought not to have been allowed under provisions of section 20 of the Companies Act read with these Rules, the professional shall also be liable for penal action under provisions of the Companies Act, 1956 in addition to the penal action under Regulations of respective professional Institutes.

(iii) Where e-form 1A has not been certified by the professional, the proposed name will be processed at the back end office of ROC and availability or non-availability of name will be communicated to the applicant.

6. The name if made available, is liable to be withdrawn anytime before registration of the company, if it is found later on that the name ought not to have been allowed. However, ROC will pass an specific order giving reasons for withdrawal of name, with an opportunity to the applicant of being heard, before withdrawal of such name.

7. The name if made available to the applicant, shall be reserved for sixty days from the date of approval and further extension of thirty days with revalidation application and fees. If, the proposed company has not been incorporated within such period, the name shall be lapsed and will be available for other applicants.

8. Even after incorporation of the company, the Central Government has the power to direct the company to change the name under section 22 of the Companies Act, 1956, if it comes to his notice or is brought to his notice through an application that the name too nearly resembles that of another existing company or a registered trademark.

9. In determining whether a proposed name is identical with another, the following shall be disregarded:

   (i)  The words Private, Pvt, Pvt., (P), Limited, Ltd, Ltd., LLP, Limited Liability Partnership;

  (ii)  The words appearing at the end of the names – company, and company, co., co, corporation, corp, corpn, corp.;

(iii)  The plural version of any of the words appearing in the name;

(iv)  The type and case of letters, spacing between letters and punctuation marks;

  (v)  Joining words together or separating the words does not make a name distinguishable from a name that uses the similar, separated or joined words;

(vi)  The use of a different tense or number of the same word does not distinguish one name from another;

(vii)  Using different phonetic spellings or spelling variations does not distinguish one name from another. For example, J.K. Industries limited is existing then J and K Industries or Jay Kay Industries or J n K Industries or J & K Industries will not be allowed. Similarly if a name contains numeric character like 3, resemblance shall be checked with 'Three' also;

(viii) Misspelled words, whether intentionally misspelled or not, do not conflict with the similar, properly spelled words;

(ix)  The addition of an internet related designation, such as .COM, .NET, .EDU, .GOV, .ORG, .IN does not make a name distinguishable from another, even where (.) is written as 'dot';

  (x)  The addition of words like New, Modern, Nav, Shri, Sri, Shree, Sree, Om, Jai, Sai, The, etc. does not make a name distinguishable from an existing name such as New Bata Shoe Company, Nav Bharat Electronic etc. Similarly, if it is different from the name of the existing company only to the extent of adding the name of the place, the same shall not be allowed. For example, 'Unique Marbles Delhi Limited' cannot be allowed if 'Unique Marbles Limited' is already existing;

        Such names may be allowed only if no objection from the existing company by way of Board resolution is produced/ submitted;

(xi)  Different combination of the same words does not make a name distinguishable from an existing name, e.g., if there is a company in existence by the name of "Builders and Contractors Limited", the name "Contractors and Builders Limited" should not be allowed;

(xii)  If the proposed name is an exact Hindi translation of the name of an existing company in English especially an existing company with a reputation, e.g., Hindustan Steel Industries Ltd. will not be allowed if there exists a company with name 'Hindustan Ispat Udyog Limited';

Guidelines for availability of name

10. In supersession of all the previous circulars and instructions regarding name availability, the applicants and Registrar of Companies are also advised to adhere following guidelines while applying or approving the proposed name:

   (i)  It is not necessary that the proposed name should be indicative of the main object. However, in case the proposed name is indicative of any activity, the same will be appropriately reflected in the main object clause of the Memorandum of Association;

  (ii)  If the Company's main business is finance, housing finance, chit fund, leasing, investments, securities or combination thereof, such name shall not be allowed unless the name is indicative of such related financial activities, viz., Chit Fund/ Investment/ Loan, etc.;

(iii)  If it includes the words indicative of a separate type of business constitution or legal person or any connotation thereof, the same shall not be allowed. For e.g. co-operative, sehkari, trust, LLP, partnership, society, proprietor, HUF, firm, Inc., PLC, GmbH, SA, PTE, Sdn, AG etc.;

(iv)  Abbreviated name such as 'ABC limited' or '23K limited' cannot be given to a new company. However the companies well known in their respective field by abbreviated names are allowed to change their names to abbreviation of their existing name (for Delhi Cloth Mills limited to DCM Limited, Hindustan Machine Tools limited to HMT limited) after following the requirement of section 21 of the Companies Act, 1956;

  (v)  If the proposed name is identical to the name of a company dissolved as a result of liquidation proceeding should not be allowed for a period of 2 years from the date of such dissolution since the dissolution of the company could be declared void within the period aforesaid by an order of the Court under section 559 of the Act. Moreover, if the proposed name is identical with the name of a company which is struck off in pursuance of action under section 560 of the Act, then the same shall not be allowed before the expiry of 20 years from the publication in the Official Gazette being so struck off since the company can be restored anytime within such period by the competent authority;

(vi)  If the proposed names include words such as 'Insurance', 'Bank', 'Stock Exchange', 'Venture Capital', 'Asset Management', 'Nidhi', 'Mutual fund' etc., the name may be allowed with a declaration by the applicant that the requirements mandated by the respective regulator, such as IRDA, RBI, SEBI, MCA etc. have been complied with by the applicant;

(vii)  If the proposed name includes the word "State", the same shall be allowed only in case the company is a Government company. Also, if the proposed name is containing only the name of a continent, country, state, city such as Asia limited, Germany Limited, Haryana Limited, Mysore Limited, the same shall not be allowed;

(viii) If a foreign company is incorporating its subsidiary company, then the original name of the holding company as it is may be allowed with the addition of word India or name of any Indian state or city, if otherwise available;

(ix)  Change of name shall not be allowed to a company which is defaulting in filing its due Annual Returns or Balance Sheets or which has defaulted in repayment of matured deposits and debentures and/or interest thereon;

  (x)  With a view to maintain uniformity, the following guidelines may be followed in the use of keywords, as part of name, while making available the proposed names under sections 20 and 21 of the Companies Act, 1956:

 

S.No.

Key Words

Required authorized capital (in Rs.)

 

1

Corporation, corp, corpn, corp.

25 crore

 

2

international, Globe, Global, World, Overseas, Universe, Universal, Continent, Continental, Inter Continental, Asiatic, Asia, Asian being the first word of the name

5 crore

 

3

If any of the words at (2) above is used within the name (with or without brackets)

2 crore

 

4

Hindustan, India, Indo, Indian, Bharat, Bharatvarsh, Bhartiya or any other country's name being first word of the name

2 crore

 

5

If any of the words at (4) above is used within the name (with or without brackets)

25 lakh

 

6

Industries/ Udyog

5 crore

 

7

Enterprises, Products, Business, Manufacturing, Venture.

50 lakh

nn



--
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

14 March 2011

IT Scrutiny Simplified Procedure

No.402/92/2006-MC (07 of 2011)

Government of India / Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

***

New Delhi dated the 14

th March 2011

PRESS RELEASE

Streamlining procedure for scrutiny of income-tax returns

Scrutiny of income tax returns is an important mechanism for ensuring taxpayer

compliance and to counter tax-evasion. However, it has evoked some concern from small

taxpayers and senior citizens about prolonged enquiries. Concerns have also been raised about

selection of the same cases in scrutiny year after year.

Appreciating the concern of these taxpayers and with a view to mitigate their hardships,

Central Board of Direct Taxes has reviewed its scrutiny selection procedure. In order to redress

the grievance, it has been decided that during the financial year 2011-12, cases of senior citizens

and small taxpayers, filing income-tax returns in ITR-1 and ITR-2 will be subjected to scrutiny

only where the Income Tax department is in possession of credible information.

Senior citizens for this purpose would be individual taxpayers who are 60 years of age or

more. Small taxpayers would be individual and HUF taxpayers whose gross total income, before

availing deductions under Chapter VIA, does not exceed Rupees ten lakh.

***



--
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

13 March 2011

CBDT on Refund

From the desk of Chairman,CBDT       S.N. 17 / March 11 ,2011

 

Casual & cavalier attitude

Refund cases not yet entered on the system

 

All the CCITs, including the CCITs (CCA), were advised by the Board on Feb 28 & again on March 05 11 to provide data regarding paper refund cases not yet entered on the system.

The CBDT feels anguished that, except CCITs Nagpur, Ranchi, Panaji & Guwahati, no other CCIT has taken care to comply with the Board's appeal.

Such a casual & cavalier response of senior-most functionaries in the field is disheartening for the Board, which is doing its best for the welfare of the entire cadre.

May the CBDT expect that all the CCITs will get the paper refund cases not yet entered on the system uploaded today itself & ensure that all refund cases are processed forthwith without any further delay?

 



--
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

12 March 2011

IndianCAs: Company Incorporation- 1 Day

 

 General Circular No. 6/2011

F.No. 17/56/2011-CL-V

Government of India

Ministry of Corporate Affairs

  5

th Floor, A Wing, Shastri Bhavan

Dr. R.P. Road, New Delhi-110001

Dated 8

th March, 2011

To

All Regional Directors

All Registrar of Companies

All Official Liquidators

Sub: Process of incorporation of Companies ( Form-1) and establishment of principal place of business in India by Foreign Companies ( Form-44) – Procedure simplified.

Sir,

I am directed to inform that Ministry has received various representations regarding time taken by the Registrar of Companies for registration of Form-1 and Form-44.

The Ministry has got the issue examined by Business Process Re-engineering Group under MCA-21 and in order to speed up and simplify the process of incorporation of Companies and establishment of principal place of business in India by Foreign Companies for reduction in time taken by Registrar of Companies, the below mentioned procedure have been recommended :

1. Only Form-1 shall be approved by the RoC Office. Form 18 and 32 shall be processed by the system online.

2. There shall be one more category, i.e., Incorporation Forms ( Form 1A, Form 37, 39, 44 and 68) which will have the highest priority for approval.

3. Average time taken for incorporation of company should be reduced to one (1) day only.

4. A Notification to notify minor changes in e-forms 18 and 32 to enable them to be taken on record through STP mode for aforesaid procedure is being issued separately.

Yours faithfully,

(Seema Rath)

Assistant Director (Inspection)

Tele : 011-23387263



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07 March 2011

IndianCAs: DIN Rules Simplified [1 Attachment]

 
[Attachment(s) from Ashwin Nagar included below]


 

COMPANIES ACT

CIRCULAR/PRESS NOTE

Company Law : Section 266B of the Companies Act, 1956 - Director Identification Number (DIN) - Allotment of - DIN Process Simplified

GENERAL CIRCULAR NO. 5/2011 [F.NO.2/1/2011 CL.V], DATED 4-3-2011

I am directed to inform that the Ministry's has re-examined the process of allotment of Directors Identification Number (DIN) to be obtained u/s 266B of the Companies Act, 1956. The present process is cumbersome and time consuming. Representations have been received in the Ministry that the documents required to be submitted should be simple to prove the existence/residence of a person, who intend to become a director of a company.

The Ministry has constituted a Group to examine the business process re-engineering under MCA-21. In order to speed up and simplify the process to obtain a DIN, the below mentioned procedure have been recommended.

   1.  Application for DIN will be made on eForm; No physical submission of documents shall be accepted and for this purpose Scanned documents along with verification by the applicant will be attached with the eForm. Only online fee payment will be allowed i.e. No challan payment

   2.  The application can also be submitted online by the applicant himself using his DSC.

   3.  DIN 1 eForm can be digitally signed by the professional who shall also confirm that he has verified the particulars of the Applicant given in the application.

   4.  Where the DIN 1 is verified by the professional, the DIN will be approved by the system immediately online.

   5.  In other cases the DIN cell will examine the application and same shall be disposed of within one or two days.

   6.  Companies (Directors Identification Number) Rules, 2006 are being amended on the above lines.

   7.  Penal action against the applicant and professional certifying the DIN application in case of false information/certification as per provisions of section 628 of the Act will be taken in addition to action for professional misconduct and revocation of DIN, allotted on false information.

   8.  The above procedures is expected to enable allotment of DIN on the same day.

   9.  The above procedures applies to filing of DIN 4 intimating changes in particulars of Directors.

A notification to notify the aforesaid procedure is being issued. After issue of necessary notification, the applicant/professionals/DIN Cell are advised to follow the notified procedures for allotment of DIN.


 
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04 March 2011

CA A. K. Jain: Highlights - Indian Budget 2011

Indian Budget 2011
By CA A. K. Jain

The Budget for 2011-12 is widely seen as cautious approach of the Finance Minister, Dr. Pranab Mukherjee towards balancing this critical phase of Indian economy. We are facing complex issues relating to soaring inflation, high growth rate, employment problems, rising oil prices, increasing deficit on current and capital account, corruption, black money, internal law and order disturbances and many more. In these circumstances our Finance Minister can definitely be excused for remaining in hibernation and playing safe in his position.

We wish financial establishment gets more proactive towards the needs of the time and react muscularly keeping in mind the aspirations of the public. In view of the media generated publicity about wastages and misappropriations of public money by some selected class of individuals the whole governance has been put on public trial. In these circumstances Regulatory Bodies are required to get into action swiftly and clear the misgivings otherwise help the government to discipline the perpetrators.

However, if the government feels that, the regulatory mechanism and policing can not be the solution to the problems like black money and foreign bank accounts etc. than it should audaciously look for alternative means and measures in the larger interest of the nation without being conscientious of opposition party's political criticism. Finance Minister should realise that, enormous Indian wealth is lying in other countries which he can attract discreetly and not by any kind of intimidation or coercion. In the interest of infrastructure development the government can come out with some scheme which permits this money to return back to India and strictly get invested in sector like education, health, roads, housing etc. A very simple scheme can do wonders to the entire nation and make our finance minister's name and congress leadership immortal in the fiscal and financial history of India.

KEY FEATURES OF FINANCE MINISTER'S BUDGET 2011-2012

Overview of the Economy    
Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in2010-11 in real terms. Economy has shown remarkable resilience. Continued high food prices have been principal concern this year. Exports have grown by 29.4 per cent, while imports have recorded a growth of 17.6 per cent during April to January 2010-11 over the corresponding period last year. Indian economy expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12.

Tax Reforms 
Direct Taxes Code (DTC) to be finalised for enactment during 2011-12. DTC proposed to be effective from April 1, 2012 . GST, Constitution Amendment Bill proposed to be introduced in this session of Parliament.

Expenditure Reform 
Committee has been set up by Planning Commission to suggest government expenditure ( capital, revenue, plan and non plan) reforms

Subsidies       
Government actively considering extension of the Nutrient Based Subsidy regime to cover urea. Government to move towards direct transfer of cash subsidy to people living below poverty line in a phased manner for better delivery of kerosene, LPG and fertilisers.

PSU's
Rs. 40,000 crore to be raised through disinvestment in 2011-12. Government committed to retain at least 51 per cent ownership and management control of the Central Public Sector Undertakings.

Investment Environment      
Government to further liberalise the FDI policy. SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirements for equity schemes. To enhance flow of funds to infrastructure sector, the FII limit for investment in corporate bonds issued in infrastructure sector being raised.

Banking and Micro Finance 
Additional banking licences will be issued to private sector players. Rs. 6,000 crore will be provided to public sector banks for maintaining minimum of Tier I CRAR of 8 per cent. Rs. 500 crore will be provided to Regional Rural Banks for maintaining CRAR of at least 9 per cent as on March 31, 2012 . India Microfinance Equity Fund of Rs. 100 crore to be created with SIDBI. New authority will vouch interest of small borrowers. Women's SHG's Development Fund to be created with a corpus of Rs. 500 crore. Target of providing banking facilities to all 73,000 habitations having a population of over 2,000 to be completed during 2011-2012.

Micro Small and Medium Enterprises        
Rs. 5,000 crore will be provided to SIDBI for refinancing incremental lending by banks to these enterprises. Rs. 3,000 crore will be provided to NABARD to provide support to handloom weaver co-operative societies which have become financially unviable due to non-repayment of debt by handloom weavers facing economic stress. Public sector banks to achieve a target of 15 per cent as outstanding loans to minority communities under priority sector lending at the earliest.

Housing Sector Finance        
Existing scheme of interest subvention of 1 per cent on housing loan further liberalised. Existing housing loan limit enhanced to Rs. 25 lakh for dwelling units under priority sector lending. Provision under Rural Housing Fund enhanced to Rs. 3,000 crore. To enhance credit worthiness of economically weaker sections and LIG households, a Mortgage Risk Guarantee Fund to be created under Rajiv Awas Yojana. Central Electronic Registry to prevent frauds involving multiple lending on the same immovable property to become operational by March 31, 2011 .

Legislative Reforms
Financial Sector Legislative Reforms Commission set up to rewrite and streamline the financial sector laws, rules and regulations. Companies Bill to be introduced in the Lok Sabha during current session.

Food & Agriculture   
Allocation under Rashtriya Krishi Vikas Yojana increased from Rs. 6,755 crore to Rs. 7,860 crore. To improve rice based cropping system in eastern region, allocation of Rs. 400 crore has been made. Allocation of Rs. 300 crore to promote production of 60,000 tons of pulses in rainfed areas. Allocation of Rs. 300 crore to bring 60,000 hectares under oil palm plantations. Initiative to yield about 3 lakh Metric tonnes of palm oil annually in five years. Allocation of Rs. 300 crore for implementation of vegetable initiative to provide quality vegetable. Allocation of Rs. 300 crore to promote higher production of Bajra, Jowar, Ragi and other millets, which are highly nutritious and have several medicinal properties.  Allocation of Rs. 300 crore to promote animal based protein production through livestock development, dairy farming, piggery, goat rearing and fisheries. Allocation of Rs. 300 crore for Accelerated Fodder Development Programme to benefit farmers in 25,000 villages.

Agriculture Credit     
Credit flow for farmers raised from Rs. 3,75,000 crore to Rs. 4,75,000 crore in 2011-12. Interest subvention proposed to be enhanced from 2 per cent to 3 per cent for providing short-term crop loans to farmers who repay their crop loan on time. In view of enhanced target for flow of agriculture credit, capital base of NABARD to be strengthened by Rs.3,000 crore in phased manner. Rs. 10,000 crore to be contributed to NABARD's Short-term Rural Credit fund for 2011-12. Approval being given to set up 15 more Mega Food Parks during 2011-12.

Infrastructure and Industry  
Allocation of Rs. 2,14,000 crore for infrastructure in 2011-12. This is an increase of 23.3 per cent over 2010-11. This also amounts to 48.5 per cent of total plan allocation. Government to come up with a comprehensive policy for further developing PPP projects. IIFCL to achieve cummulative disbursement target of Rs. 20,000 crore by March 31, 2011 and Rs. 25,000 crore by March 31, 2012 . Under take out financing scheme, seven projects sanctioned with debt of Rs. 1,500 crore. Another Rs. 5,000 crore will be sanctioned during 2011-12. To boost infrastructure development, tax free bonds of Rs. 30,000 crore proposed to be issued by Government undertakings during 2011-12.

National Manufacturing Policy        
Share of manufacturing in GDP expected to grow from about 16 per cent to 25 per cent over a period of 10 years. Government will come out with a manufacturing Policy.National Mission for hybrid and electric vehicle to be launched. Financial Assistance to be made available for metro projects in Delhi , Mumbai, Bengaluru, Kolkata and Chennai. Capital investment in fertiliser production proposed to be included as an infrastructure sub-sector.

Exports
Self assessment to be introduced in Customs to modernize the Customs administration.  Proposal to introduce scheme for refund of taxes paid on services used for export of goods. Mega Cluster Scheme to be extended for leather products. Seven mega leather clusters to be set up during 2011-12. Jodhpur to be included for the development of a handicraft mega cluster.

Black Money
Five fold strategy to be put into operation to deal with the problem of generation and circulation of black money.Government joining various international forums which are engaged in anti money laundering, Economic development, Exchange of information for tax purposes. Various Tax Information Exchange Agreements and Double Taxation Avoidance Agreements being concluded. Foreign Tax Division of CBDT has been strengthened to effectively handle increase in tax information exchange and transfer pricing issues. Enforcement Directorate strengthened three fold to handle increased number of cases registered under amended Money Laundering Legislation. Finance Ministry has commissioned study on unaccounted income and wealth held within and outside the country. Comprehensive national policy to be announced in near future to strengthen controls over prevention of trafficking on narcotic drugs.

Bharat Nirman          
Allocation for Bharat Nirman programme proposed to be increased by Rs. 10,000 crore from the current year to Rs. 58,000 crore in 2011-12. Plan to provide Rural Broadband Connectivity to all 2,50,000 Panchayats in the country in three years.

MGNREGA
In pursuance of last years budget announcement to provide a real wage of Rs. 100 per day, the Government has decided to index the wage rates notified under the MGNREGA to the Consumer Price Index for Agricultural Labour. The enhanced wage rates have been notified by the Ministry of Rural Development on January 14, 2011 . From 1st April, 2011 , remuneration of Anganwadi workers increased from Rs. 1,500 per month to Rs. 3,000 per month and for Anganwadi helpers from Rs. 750 per month to Rs. 1,500 per month.

Education
Allocation for education increased by 24 per cent over current year. Rs. 21,000 crore allocated, which is 40 per cent higher than Budget for 2010-11. Pre-matric scholarship scheme to be introduced for needy SC/ST students studying in classes IX and X. Connectivity to all 1,500 institutions of Higher Learning and Research through optical fiber backbone to be provided by March, 2012. Additional Rs. 500 crore proposed to be provided for National Skill Development Fund during the next year.

Health
Plan allocations for health stepped-up by 20 per cent. Scope of Rashtriya Swasthya Bima Yojana to be expanded to widen the coverage.

Financial Inclusion    
Exiting norms under co-contributory pension scheme "Swavalamban" to be relaxed. Benefit of Government contribution to be extended from three to five years for all subscribers who enroll during 2010-11 and 2011-12. Eligibility for pension under Indira Gandhi National Old Age Pension Scheme for BPL beneficiaries reduced from 65 years of age to 60 years. Those above 80 years of age will get pension of Rs. 500 per month instead of Rs. 200 at present.

Environment and Climate Change   
Rs. 200 crore proposed to be allocated for Green India Mission from National Clean Energy Fund. Rs. 200 crore proposed to be allocated for launching Environmental Remediation Programmes from National Clean Energy Fund. Special allocation of Rs. 200 crore proposed to be provided for clean-up of some more important lakes and rivers other than Ganga .

Other Provisions and Defence Expenses    
To boost development in North Eastern Region and Special Category States , allocation for Special Assistance doubled. Rs. 8,000 crore provided in current year for development needs of Jammu and Kashmir . Allocation made in 2011-12 to meet the infrastructure needs for Ladakh Rs. 100 crore and Jammu region Rs. 150 crore).     Allocation under Backward Regions Grant Fund increased by over 35 per cent. Funds allocated under Integrated Action Plan for addressing problems related to Left Wing extremism affected districts. 60 selected Tribal and backward districts provided with 100 per cent block grant of Rs. 25 crore and Rs. 30 crore per district during 2010-11 and 2011-12 respectively A lump-sum ex-gratia compensation of Rs. 9 lakh for 100 per cent disability to be granted for personnel of Defence and Para Military forces discharged from service on medical ground on account of disability attributable to government service. To build judicial infrastructure, plan provision for Department of Justice increased by three fold to Rs. 1,000 crore. Provision of Rs. 1,64,415 crore, including Rs. 69,199 crore for capital expenditure to be made for Defence Services in 2011-12.  

Other Initiative by IT Dept.
These include e-filing and e-payment of taxes, adoption of 'Sevottam' concept by CBEC and CBDT, web based facility for tax payers to track the resolution of refunds and credit for pre-paid taxes and augmentation of processing capacity. Under Mission mode projects, funds released to 31 projects received from States/ UTs for computerisation of Commercial taxes. This will allow States to align with roll out of GST. Bill to amend the Indian Stamp Act proposed to be introduced shortly. A new scheme with an outlay of Rs. 300 crore to be launched to provide assistance to States to modernise their stamp and registration administration and roll out e-stamping in all the districts in the next three years. New simplified form 'Sugam' to be introduced to reduce the compliance burden of small tax payers falling within presumptive taxation. Three more benches of Settlement Commission to be set up to fast track the disposal of cases.

Budget Estimates 2011-12   
Gross Tax receipts are estimated at Rs. 9, 32,440 crore. Non-tax revenue receipts estimated at Rs. 1, 25,435 crore. Total expenditure proposed at Rs. 12, 57,729 crore. Increase of 18.3 per cent in total Plan allocation. Increase of 10.9 per cent in the Non-plan expenditure. XI Plan expenditure more than 100 per cent in nominal terms than envisaged for the Plan period. Increase of 23 per cent in Plan and Non-plan transfer to States and UTs. Fiscal Deficit brought down from 5.5 per cent in BE 2010-11 to 5.1 per cent of GDP in RE 2010-11. Fiscal Deficit kept at 4.6 per cent of GDP for 2011-12. 10. Fiscal Deficit to be progressively reduced to 3.5 per cent by 2013-14. "Effective Revenue Deficit" estimated at 2.3 per cent of GDP in the Revised Estimates for 2010-11 and 1.8 per cent for 2011-12. All subsidy related liabilities brought into fiscal accounting. Net market borrowing of the Government through dated securities in 2011-12 would be Rs. 3.43 lakh crore. Central Government debt estimated at 44.2 per cent of GDP for 2011-12 as against 52.5 per cent recommended by the 13th Finance Commission.

Tax Proposals - Direct Taxes

1          Exemption limit for the individual taxpayers enhanced from Rs. 1, 60,000 to Rs. 1, 80,000 giving uniform tax relief of Rs. 2,000.

2.         Exemption limit enhanced to Rs. 2, 50,000 and qualifying age reduced for senior citizens from 65 to 60 year. Higher exemption limit of Rs. 5, 00,000 Citizens over 80 years.

3          Surcharge of 7.5 per cent on domestic companies reduced to 5 per cent.

4.         Minimum Alternative Tax increased from 18 per cent to 18.5 per cent.

5.         Tax incentives extended to attract foreign funds for financing of infrastructure.

6.         Deduction of Rs. 20,000 for investment in long-term infrastructure bonds extended for one more year.

7.         Lower rate of 15 per cent tax on dividends received by an Indian company from its foreign subsidiary.

8.         Investment linked deduction extended to fertiliser industry and developing affordable housing.

9.         Deduction on payments made to National Laboratories, Universities and Institutes of Technology  enhanced to 200 per cent.

 

Tax Proposals - Indirect Taxes

1.         Stay on course for transition to GST. Central Excise Duty to be maintained at standard rate of 10 per cent. Nominal Central Excise Duty of 1 per cent imposed on 130 items entering in the tax net. Lower rate of Central Excise Duty enhanced from 4 per cent to 5 per cent.

2.         Branded garments subject to 10 per cent excise duty.

         Equipments needed for storage and warehouse facilities on agricultural produce exempted from excise duty.  Basic Custom Duty reduced for specified agricultural machinery from 5 per cent to 2.5 per cent. Basic Custom Duty reduced on micro-irrigation equipment from 7.5 per cent to 5 per cent. De-oiled rice bran cake to be fully exempted from basic Custom Duty. Export Duty of 10 per cent to be levied on its export.

4.         Rate of Export Duty for all types of iron ore enhanced and unified at 20 per cent ad valorem. Full exemption from Export Duty to iron ore pellets. Basic Custom Duty on two critical raw materials of cement industry viz. petcoke and gypsum is proposed to be reduced to 2.5 per cent. Cash dispensers fully exempt from basic Customs Duty. Full exemption from basic Customs Duty and a concessional rate of Central Excise Duty extended to batteries imported by manufacturers of electrical vehicles. Concessional Excise Duty of 10 per cent to vehicles based on Fuel cell technology. Exemption granted from basic custom duty and special CVD to critical parts/assemblies needed for Hybrid vehicles. Reduction in Excise Duty on kits used for conversion of fossil fuel vehicles into Hybrid vehicles. Excise Duty on LEDs reduced to 5 per cent and special CVD being fully exempted. Basic Customs Duty on solar lantern reduced from 10 to 5 per cent. Full exemption from basic Customs Duty to Crude Palm Stearin used in manufacture of laundry soap. Full exemption from basic Excise Duty granted to enzyme based preparation for pre-tanning.

5.         Parallel Excise Duty exemption for domestic suppliers producing capital goods needed for expansion of existing mega or ultra mega power projects. Full exemption from basic Customs Duty to bio-asphalt and specified machinery for application in the construction of national highways.

6.         Exemption from Import Duty for spares and capital goods required for ship repair units extended to import by ship owners. Concessional basic Custom Duty of 5 per cent and CVD of 5 per cent available to newspaper establishments for high speed printing presses extended to mailroom equipment. Jumbo rolls of cinematographic film fully exempted from CVD by providing full exemption from Excise Duty. Out right concession to factory-built ambulances from Excise Duty. Relief measures proposed for raw pistachio, bamboo for agarbatti, lactose for the manufacture of homoeopathic medicines, sanitary napkins, baby and adult diapers.

Service Tax   
Standard rate of Service Tax retained at 10 per cent, while seeking a closer fit between present regime and its GST successor. Hotel accommodation in excess of Rs. 1,000 per day and service provided by air conditioned restaurants that have license to serve liquor added as new services for levying Service Tax. Tax on all services provided by hospitals with 25 or more beds with facility of central air conditioning. Service Tax on air travel both domestic and international raised. Services provided by life insurance companies in the area of investment and some more legal services proposed to be brought into tax net. All individual and sole proprietor tax payers with a turn over upto Rs. 60 lakh freed from the formalities of audit.

Net Position   
Proposals relating to Customs and Central Excise estimated to result in a net revenue gain of Rs. 7,300 crore. Proposals relating to Service Tax estimated to result in net revenue gain of Rs. 4,000 crore. Proposals relating to Direct Taxes estimated to result in a revenue loss of Rs.11, 500 crore and those related to Indirect Taxes estimated to result in net revenue gain of Rs. 11,300 crore.


Budget in Numeric Format

                                                                                                                                (In Crore of Rupees)

 

  2008-2009 Actuals@

2009-2010 Budget Estimates

2009-2010 Revised Estimates

2010-2011 Budget Estimates

1.    Revenue Receipts

 540,259.00

      614,497.00

        577,294.00

      682,212.00

 

2.    Tax Revenue (net to Centre)

   443,319.00

        474,218.00

          465,103.00

        534,094.00

3.    Non-tax Revenue

    96,940.00

        140,279.00

          112,191.00

        148,118.00

4.    Capital Receipts (5+6+7)$ 

 343,697.00

      406,341.00

        444,253.00

      426,537.00

 

5.    Recoveries of   Loans

      6,139.00

            4,225.00

             4,254.00

            5,129.00

6.    Other Receipts

         566.00

            1,120.00

           25,958.00

          40,000.00

7.    Borrowings and other              Liabilities*

   336,992.00

        400,996.00

          414,041.00

        381,408.00

8.    Total Receipts  (1+4)$

 883,956.00

   1,020,838.00

     1,021,547.00

   1,108,749.00

9.    Non-plan Expenditure      

 608,721.00

      695,689.00

        706,371.00

      735,657.00

 

10.   On Revenue Account  of which,

   559,024.00

        618,834.00

          641,944.00

        643,599.00

11.   Interest  Payments

   192,204.00

        225,511.00

          219,500.00

        248,664.00

12.   On Capital Account

    49,697.00

          76,855.00

           64,427.00

          92,508.00

13.   Plan Expenditure

 275,235.00

      325,149.00

        315,176.00

      373,092.00

 

14.   On Revenue Account

   234,774.00

        278,398.00

          264,411.00

        315,125.00

15.   On Capital Account

    40,461.00

          46,751.00

           50,765.00

          57,967.00

16.   Total Expenditure (9+13)

 883,956.00

   1,020,838.00

     1,021,547.00

   1,108,749.00

 

17.   Revenue Expenditure

   793,798.00

        897,232.00

          906,355.00

        958,724.00

             (10+14)

18.   Capital Expenditure

    90,158.00

        123,606.00

          115,192.00

        150,025.00

             (12+15)

19.   Revenue Deficit (17-1)

 253,539.00

      282,735.00

        329,061.00

      276,512.00

 

 

         (4.50)

               (4.80)

                (5.30)

               (4.00)

20.   Fiscal Deficit

 336,992.00

      400,996.00

        414,041.00

      381,408.00

 

{16-(1+5+6)}

         (6.00)

               (6.80)

               (6.70)

               (5.50)

21.   Primary Deficit (20-11)

 144,788.00

      175,485.00

        194,541.00

      132,744.00

 

 

         (2.60)

               (3.00)

               (3.20)

               (1.90)

 

@  Actuals for 2008-09 are provisional,  $  Does not include receipts in respect of Market Stabilization Scheme, *  Includes draw-down of Cash Balance. Note: GDP for BE 2010-2011 has been projected at Rs.69,34,700 crore assuming 12.5% growth over the  advance estimates of 2009-2010 (Rs.61,64,178 crore) released by CSO.

Empanel as Concurrent Auditors

BANK OF MAHARASHTRA invites online applications from practicing firms of Chartered Accountants, in the prescribed format, who are willing to...