12 October 2010

CFC- ACES- Update

Certified Facilitation Centres under ACES Project of the CBEC - (11-10-2010)
CBEC is now ready with the modules for processing applications for CFC. Issuance of password and usernames will commence after the new Application Forms are filed on-line.

Chartered Accountants in practice for one year or more may set up a Certified Facilitation Centre (CFC) for providing facilities to central excise and service tax assessees to file returns and other documents electronically under Automation of Central Excise and Service Tax (ACES) Project of the CBEC.

The Institute of Chartered Accountants of India (ICAI) is pleased to announce signing of Memorandum of Understanding with the Central Board of Excise and Customs, Department of Revenue, Ministry of Finance, Government of India to facilitate setting up of Certified Facilitation Centres (CFCs) under ACES Project by Chartered Accountants in practice.

Any member desirous of operating a CFC in his name is required to make an application to the ICAI together with the requisite information, whereupon the CBEC will issue a user name and password to the member. Thereafter, the ICAI will issue a Certificate to the member to operate Facilitation Centre under ACES Project of the CBEC. On the basis of the user name and password issued by the CBEC, the CFC will be able to upload returns and other documents for central excise and service tax assessees.

The names of the CFCs along with their contact details as provided by the CFCs will be put up on the website of the ICAI and the CBEC. The eligibility criteria, fee schedule and obligations of CFCs are set out in the Memorandum of Understanding, Supplementary Memorandum of Understanding and in the FAQs on the subject.

Please click here for Application Form for CFC under ACES Project

Please click here for Memorandum of Understanding

Please click here for Supplementary Memorandum of Understanding

Please click here for FAQs

Submit the printout of your Application Form alongwith the PAN card copy by Post/ Courier at :

Application for ACES Project,
EDP Department,
ICAI Bhawan,
The Institute of Chartered Accountants of India,
PO Box No. 7100, Indraprastha Marg,
New Delhi - 110002
Email:- cbectech@icai.org


Last Updated on 11th October, 2010


--
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

10 October 2010

Exposure Draft of Schedule XIV to the Companies Act, 1956



Exposure Draft of Schedule XIV to the Companies Act, 1956
[Last date for comments: Ocotber 15, 2010]


--
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

09 October 2010

NEFT Remittance Details in BANK PASS BOOK- RBI NOTIFICATION

Date: Oct 08, 2010
Furnishing remitter details in pass book / pass sheet / account statement for credits received by customers through NEFT / NECS / ECS

RBI/2010-11/230
DPSS (CO) EPPD No. 788/ 04.03.01 / 2010-11

October 8, 2010

The Chairman and Managing Director / Chief Executive Officer
of member banks participating in NEFT / NECS / ECS

Madam / Dear Sir,

Furnishing remitter details in pass book / pass sheet / account statement
for credits received by customers through NEFT / NECS / ECS

The volumes handled by the retail electronic payment products viz. National Electronic Funds Transfer (NEFT), National Electronic Clearing Service (NECS) and Electronic Clearing Service (ECS) variants are considerably increasing, which is indicative of their acceptability and popularity. Concomitant service delivery levels at banks should match customer requirements and expectations.

2. Complaints about incomplete details about the remitter (or beneficiary) and / or the source of credit (or debit) in the pass books / pass sheets / account statements, as also lack of uniformity across banks in providing even such minimal information are rising. A very generic mention as 'NEFT' or 'NECS' does not help customers in identifying the source of credits, particularly where multiple credits are afforded to their accounts through these products. The Procedural Guidelines on NEFT / NECS / ECS and various circulars issued from time to time clearly highlight the minimum information that should be provided to customers.

3. The Core Banking Solutions (CBS) of banks should be enabled to capture complete information from the relevant fields in the messages / data files which can be displayed to customers when they access their accounts online or provided to them additionally when they approach the branch counters / help desks / call centres. In the interest of straight-through capture of details from messages / data files and standardising the minimum information to be given in the pass books / pass sheets / account statements issued to customers, banks are advised to ensure the following  -

a) NEFT

Message N-02 - Inward transactions

The mandatory field 6091 contains the remitter's name, which should be picked up for the source of credit and information contained should be printed in the pass book / account statement. Banks originating transactions should ensure proper and meaningful details are provided in this field. Description of field 6091 is -

M

6091

Sending customer a/c name

50x

Sender's account name

There is an optional field with tag 7495 that enables inclusion of additional sender-to-receiver information. Destination banks should capture and store this information in their CBS / other systems as appropriate, to be provided to the customer on request.

Message N-07 - Return transactions

M

2006

Related reference number

16x

Transaction reference number of the received inward credit message at bank branch that is returned

M

6366

Rejection code

50x

Description of the reason for rejection

Destination banks may also explore the possibility of using the Unique Transaction Reference (UTR) number to link / retrieve the original message received by them, based on which additional information can be provided as a service initiative when customers make requests online or through call centres.

The extant prescriptions relating to the information to be provided (a) to the remitters for transactions originated by them, and (b) transactions that are returned, shall continue to be applicable.

b) NECS / ECS Variants

The fields "user name" and "user credit reference" (serial numbers '9' and '10' in the credit contra record) have a length of 33 (20 and 13) characters which should be printed in the pass book / account statement.

Sponsor banks need to advise user institutions to fill in these fields meaningfully, so that relevant information is passed on to the customers.

4. In addition to the above, banks are free to provide any additional details as they deem necessary or useful.

5. It is incumbent on the originating banks to ensure that all the relevant information as is provided to them is captured in the relevant fields in messages / data files.

6. Please acknowledge and ensure compliance with the requirements latest by January 1, 2011. These instructions are being issued under the powers conferred on the Reserve Bank of India by the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

Yours faithfully

(G. Padmanabhan)
Chief General Manager



--
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

06 October 2010

FIRMS QUALIFYIING FOR MAJOR AUDIT FOR 2010-2011

FIRMS QUALIFYIING FOR MAJOR AUDIT FOR 2010-2011(C & AG) - SEE ATACHMENT

 

 



--
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

02 October 2010

IndianCAs: exposure draft of Revised Schedule XIV -VINOD KOTHARI

Friday, October 1, 2010

ICAI issues exposure draft of Revised Schedule XIV

ICAI issues exposure draft of Revised Schedule XIV

From depreciation rates to depreciable lives,
from statutory rates to indicative rates

Vinod Kothari

The Accounting Standards Board of the Institute of Chartered Accountants of India issued an exposure draft of the proposed replacement of Schedule XIV. When replaced, this revised Schedule XIV will be applicable to such companies as have moved to accounting standards converged with IFRS. That is to say, to such companies as have converged to IFRS, the revised Schedule XIV will apply, and to others, the existing Schedule XIV will continue to apply.

Why is the new schedule needed:

In India, depreciation is governed by the statute, and hence, we commonly use the term "statutory" depreciation. Apparently, sections 205 and 350 of the Act deal with debiting of depreciation for specific purposes – declaration of dividends as for sec 205, and computation of profits for managerial remuneration in case of sec. 350. Hence, at a first glance, one may take the view that these two sections do not pertain to computation of profits for financial reporting, and that it is quite possible for a company to write-off depreciation as per accounting standards for financial reporting, and simply re-compute the same for managerial remuneration or for declaration of dividends. Such an interpretation is also supported by the section heading preceding sections 348 (now redundant), 349 and 350, which do not pertain to financial reporting, but computation of remuneration of managerial personnel.

However, while delinking depreciation as per books of account from those as per tax laws, a historical mistake was made in 1988 – the depreciation debited in the books of account of the company was linked with Schedule XIV. There was no need to do so – that is, Schedule XIV could have anyway been kept of limited relevance to sections 349 and 350 for computation of profits for managerial remuneration.

The situation that arises from a combined reading of sections 205 and 350 is that the Companies Act does lay down "specified rates" at which depreciation has to be provided, as pre Schedule XIV.

Statutory depreciation is surely not IFRS-compliant. Depreciation as per IFRSs is based on the nature of the asset – separate depreciation provisions exist:

  • in case of property plant and equipment, as per IAS 16
  • in case of intangible property, as per IAS 38
  • in case of investment property, as per IAS 40, etc.

In case of these, depreciation is based on depreciable value, that is, the difference between the initially recognized value and the residual value of the asset, and the depreciable value in turn is spread systematically over the useful life of the asset. "Useful life" is the estimated period over which the asset is expected to be available for use. In other words, there is no statutory prescription of the useful life: entities have to estimate the useful life.

Clearly, there are at least 3 points of conflict:

· While Schedule XIV refers to depreciation rates, IAS 16 and other accounting standards relate to useful lives, without laying down either any statutory rate or life;

· Sec 205/350 permit straight-line and WDV systems for depreciation, whereas IAS 16 is flexible and permits any other systematic basis too;

· The write-off required under sec 205/350 is to write off 95% of the asset, if using straight line method, whereas in IAS 16, the require write-off is the cost of the asset, minus residual value.

In order to permit companies converging with IFRS to adopt IAS 16, the amended Schedule XIV is required.

What is being amended?

The proposed replacement of Schedule XIV moves from prescribed rates of depreciation to indicative useful lives of assets. It makes a significant change from the existing scenario:

  • First of all, the revised Schedule XIV prescribes indicative lives only – that is to say, the useful lives of assets as laid down are only indicative and the managements are free to deviate from the same. For sure, there should be no difficulty in choosing a useful life shorter than that laid down (for example, in case of computers, the draft Schedule lays down 6 years – whereas most companies change computers every 3 years). If sufficient justification is available, there should be no difficulty even estimating a period longer than that specified in the draft Schedule;
  • Second, the move from rates to specified lives allows companies the freedom to select methods of spreading depreciation, in addition to commonly used straight-line and WDV options.

Does this resolve conflict between accounting standards and sec 350?

While the intent of the proposed revision of Schedule XIV is evident, the question is, does it at all resolve the conflict between accounting standards and sec 350?

  • First of all, sec 350 empowers the government to prescribe a rate, and not a life. Hence, the revised Schedule is strictly not in accordance with the law.
  • Second, if the law were to lay down an "indicative" schedule, is that the prescriptive schedule that sec 350 envisages?
  • If the schedule was only indicative, and did not require companies to adhere to any prescribed rates or lives, then, does it not make the prescription under sec 350 and 205 purely perfunctory? So, if the idea is to render the prescribed rates under sec 350 purely nugatory, would such idea not be better served by a clarification that sec. 350 of the Act is to be enforced only for the purpose of computation of managerial remuneration, and sec 211 (3A) read with the accounting standards will override sec 350 as far as financial reporting is concerned?

IndianCAs: Why Does my Body Do That?!!


Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com

Visit Us @ www.Fropki.com


Ashwin Nagar FCA and SAP-FICO\SEM-BCS
Success is not permanent and failure is not final

Tax Audit Limit Alert

Seeking Data on Tax Audit from CBDT: We have sent a letter of request to the Central Board of Direct Taxes (CBDT) asking them to provide the number of tax audit reports filed with them during 2009-10, e.g. data on tax audit based on fields like name and membership number of the auditor, assessment year, PAN of the auditee, etc., which would enable us to review the ceiling on the number of tax audit assignments that a chartered accountant can accept in a financial year, either as a partner or a proprietor.
 
 
(Source : ICAI Journal-Oct,2010


--
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

01 October 2010

Indirect Taxes:Suggestions for Pre-Budget Memorandum

Indirect Taxes Committee Invites Suggestions for Pre-Budget Memorandum - 2011 - (30-09-2010)
Dear Members,

The Central Indirect Taxes Committee is in the process of identifying issues that need to be taken up in the Pre-Budget Memorandum on Indirect Taxes - 2011 to be submitted to the Ministry of Finance.

The Committee invites suggestions on laws relating central excise duty, customs duty and service tax for the purpose of inclusion in the Pre-Budget Memorandum - 2011.

The suggestions relating to policy matters and procedural matters be mentioned separately and for each of the issue, following details be given in the format specified below:

Issue - brief description of the issue with relevant provisions of law
Suggestion - specific suggestion to deal with the issue
Rationale - the justification for the suggestion.

We look forward to receiving your suggestions at suggest.idtc@icai.org by 31st October, 2010.

Secretary
Indirect Taxes Committee 

Five Days Residential Programme on Advanced Leadership for Chartered Accountants at IIM Ahmedabad

ICAI: Registration for the 2nd Batch of *Five Days Residential Programme on Advanced Leadership for Chartered Accountants at IIM Ahmedabad *...