Skip to main content

Posts

Showing posts from May, 2011

XBRL-Taxonomy & Rules

Based on the comments received on the Exposure Draft on taxonomy, the Ministry of Corporate Affairs (MCA) has finalised the Taxonomy and Business Rules for Commercial and Industrial (C&I) entities for filing their Balance Sheet and Profit and Loss Account in XBRL.

CBDT on Black Money

Ministry of Finance28-May, 2011 14:34 IST




Committee constituted under chairman, CBDT to examine ways to strengthen laws to curb the generation of black money in the country, its illegal transfer abroad and its recovery.

The Government has constituted a Committee under the Chairmanship of Chairman, Central Board of Direct Taxes (CBDT) to examine ways to strengthen laws to curb the generation of black money in the country, its illegal transfer abroad and its recovery.

The Committee includes Member (L&C), CBDT, Director, Enforcement Directorate(ED), Director General, Directorate of Revenue Intelligence (DRI),Director General(Currency), Joint Secretary(FT&TR),CBDT, Joint Secretary,MoL, Director, FIU- IND, all as its Members. The Commissioner of Income Tax (CIT)(Inv),CBDT would be its Member Secretary.

The Committee will examine the existing legal and administrative framework to deal with the menace of generation of black money through illegal means including, inter alia,

(a) Declaring…

Appointment of LLP as Statutory Auditors now permissible -LLP will not be treated as Body Corporate for Limited Purpose

Appointment of LLP as Statutory Auditors now permissible -LLP will not be treated as Body Corporate for Limited Purpose


The Ministry of Corporate Affairs has paved the way for the appointment of LLP, as the Statutory Auditor of the Company.
MCA vide its notification, has notified that LLP, which is a Body Corporate as per the Limited Liability Partnership Act 2008, shall not be treated as Body Corporate, for the purpose of section 226(3)(a) of the Companies Act 1956, in exercise of its powers under 2(7)(c) of the Companies Act 1956.
As section 2(7)(c) of the Companies Act 1956, the Central Government may by notification, notify that a Body Corporate, will not be recognized as Body Corporate for the purpose of the Companies Act 1956.

The text of section is given below:
(7) "body corporate" or "corporation" includes a company incorporated outside India but does not include—
(a) a corporation sole ;
(b) a co-operative society registered under any law relating to co-operative…

MCA's clarification regarding loan to Public Ltd. companies under section 295 of Companies Act, 1956

MCA's clarification regarding loan to Public Ltd. companies under section 295 of Companies Act, 1956



Section 295 of the Companies Act, 1956 - Directors, loans to - Clarification regarding loan to Public Limited Companies under section 295

GENERAL CIRCULAR NO. 24/2011, DATED 11-5-2011

It has come to the notice of the Ministry that some companies are making applications for getting prior approval of Central Government when they propose to make any loan to, or give any guarantee or provide any security in connection with a loan made by any other person to a Public Limited Company of which any such Director is a Director or a member even when the proposal does not fall under section 295(d) and section 295(e) of the Companies Act, 1956.

2. Companies are requested to note that when the beneficiary of the loan/guarantee/security is a Public Limited Company, approval of Central Government should only be sought if the provisions of sub-section (d) or (e) of section 295 of the Companies Act, 19…

NEW DIRECTOR'S RELATIVE (OFFICE OR PLACE OF PROFIT) RULES, 2011

NEW DIRECTOR'S RELATIVE (OFFICE OR PLACE OF PROFIT) RULES, 2011
Director's Relative (Office or Place of Profit) Rules, 2011
NOTIFICATION NO. G.S.R. 357(E), DATED 2-5-2011
In exercise of the powers conferred by clause (b) of sub-section (1) of section 642, read with sub-section (1B) of section 314 of the Companies Act, 1956, the Central Government hereby makes the following Rules in supersession of the earlier Notification No. GS.R. 89(E), dated 5-2-2003, namely:—
1. (1) Short Title and Commencement: (1) These rules may be called Director's Relative (Office or Place of Profit) Rules, 2011.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Applicability : These rules shall apply to all companies registered under the Companies Act, 1956 except as provided in these rules.
3. Approval of the Central Government in case of Appointment of Relatives, etc. of Directors : No appointment for an office, or place of profit in a company shall take effec…

IndianCAs: NPA Norms Revised [1 Attachment]

[Attachment(s) from Ashwin Nagar included below]
RATES OF PROVISIONING FOR NPAS AND RESTRUCTURED ADVANCES REVISEDEnhancement of Rates of Provisioning for Non-Performing Assets and Restructured AdvancesCIRCULAR NO. DBOD.NO.BP.BC. 94 /21.04.048/2011-12, DATED 18-5-2011Please refer to paragraph 110 of the Monetary Policy Statement for the year 2011-12 (extract enclosed) wherein it was proposed to enhance the provisioning requirements on certain categories of non-performing advances and restructured advances. Accordingly, the revised provisioning requirements for the following categories of non-performing advances and restructured advances will be as under: (the current provisioning requirements are laid down in paragraph 5 of the Master Circular on Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances - Ref DBOD.No.BP.BC.21/21.04.048/2010-11, dated July 1, 2010).Sub-Standard Advances :1. Advances classified as "sub-standard" will at…

IndianCAs: AS-11- Applicability-31-03-2012 [1 Attachment]

[Attachment(s) from Ashwin Nagar included below]The date of applicabillity of treatment in respect of " AS-11" means the option to capitalise the foreign exchange fluctuation has been extended to 31st March, 2012 from 31st March,  2011.
Detailed notification is attached.


| Ashwin Nagar | FCA and SAP-Finance & Consolidations |Success is not permanent and failure is not final Facebook : http://www.facebook.com/ashwinnagar Twitter      : http://twitter.com/ashwinnagar Orkut        : http://www.orkut.co.in/Main#Profile?uid=18246210461112749074 Linkedin    : http://in.linkedin.com/in/ashwinnagar __._,_.___ Attachment(s) from Ashwin Nagar 1 of 1 File(s) Notification_G[1].S.R._11may2011.pdf Reply to sender | Reply to group | Reply via web post | Start a New Topic Messages in this topic (1) Recent Activity:New Members22Visit Your Group We are on Facebook, join:
http://www.facebook.com/?filter=app_2361831622#!/group.php?gid…

IndianCAs: CBEC on Restaurant and Hotels [1 Attachment]

[Attachment(s) from Ashwin Nagar included below]CBEC's CLARIFICATION REGARDING SERVICE TAX ON HOTELS/RESTAURANTSClarification regarding service tax on Short-Term Accommodation Service and Restaurant ServiceCIRCULAR NO. 139/8/2011-TRU, DATED 10-5-2011Since the levy of service tax on the two new services relating to services provided by specified restaurants and by way of short-term hotel accommodation came into force with effect from 1st May, 2011, a number of queries have been raised by the potential tax payers. 2. These are addressed as follows: Short-Term Accommodation Service:Sl. No Queries Clarification 1. What is the relevance of declared tariff? Is the tax required to be paid on declared tariff or actual amount charged? "Declared tariff" includes charges for all amenities provided in the unit of accommodation like furniture, air-conditioner, refrigerators etc., but does not include any discount offered on the published charges for such unit. The relevance of 'declar…

PF Rate of Interest-9.5%

EMPLOYEES' PROVIDENT FUND : 9.5% NOTIFIED AS RATE OF INTEREST UNDER RULE 6(B) OF PART A OF FOURTH SCHEDULERule 6(b) of Part A of Fourth Schedule to Income-tax Act, 1961 - Recognised Provident Fund - 9.5 per cent rate notified under rule 6(b) of part A of IVth Schedule - Supersession of Notification No. S.O. 2091(E), dated 26-8-2010NOTIFICATION NO. 24/2011 [F.NO. 142/14/2010-SO (TPL)], DATED 13-5-2011In exercise of the powers conferred by clause (b) of rule 6 of Part A of the Fourth Schedule to the Income-tax Act, 1961 (43 of 1961), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 2091(E), dated the 26th August, 2010, the Central Government hereby fixes, with effect from the 1st day of September, 2010, 9.5 per cent., as the rate referred to in the said clause.
--
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 Na…

MCA on XBRL-Amendment to Circular

FILING OF BALANCE SHEET & P&L ACCOUNT IN XBRL MODE - CORRIGENDUMFiling of Balance Sheet and Profit and Loss Account in eXtensible Business Reporting Language (XBRL) mode - Corrigendum to Circular No. 9/2011, dated 31-3-2011GENERAL CIRCULAR NO. 25 /2011, DATED 12-5-2011The undersigned is to draw the attention on the Circular No. 9/2011 dated 31-3-2011 of this Ministry on the subject cited above. The following errata has been noticed which is rectified as under:-2. In the said circular for clauses (i) and (ii) of paragraph 2 under the Heading Coverage in Phase I, the following shall be substituted and read as :- "(i)  All companies listed in India and their subsidiaries, having paid up capital of Rs. 5 crore and above or a turnover of Rs. 100 crore or above, excluding banking companies, insurance companies, power companies, Non-Banking Financial Companies (NBFCs) and overseas subsidiaries of these companies."

--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.…

ST Prosecution Guidelines

CBEC'S CLARIFICATION ON PROSECUTION PROVISION IN FINANCE ACT, 1994
Clarification regarding prosecution provision in Finance Act, 1994
CIRCULAR NO. 140/9/2011-SERVICE TAX, DATED 12-5-2011
With the enactment of Finance Act, 2011 (No.8 of 2011), Section 89 which provides for prosecution of specified offences involving service tax, becomes a part of Chapter V of Finance Act, 1994.
2. Prosecution provision was introduced this year, in Chapter V of Finance Act, 1994, as part of a compliance philosophy involving rationalization of penal provisions. Encouraging voluntary compliance and introduction of penalties based on the gravity of offences are some important principles which guide the changes made this year, in the penal provisions governing service tax. While minor technical omissions or commissions have been made punishable with simple penal measures, prosecution is meant to contain and tackle certain specified serious violations. Accordingly, it is imperative for the field formations,…