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Showing posts from July 14, 2016

How New Accounting Standards will Impact Indian Companies

Maruti Suzuki, Tata Steel, BPCL, UltraTech and Coal India may report 3-12% increase in earnings after to the implementation of new Indian Accounting Standard (Ind-AS).On the other hand, earnings of ITC, Bharti Infratel, Lupin, and Arvind may fall by 4-10%.Companies each with networth of `500 crore or more will adopt the new standards in FY17. The transition will have a considerable impact on the computation of revenue, operating profit, net profit, and networth of the listed companies. Sectors including metals, telecoms, oil & gas, and real estate are likely to be impacted most. According to analyst estimates, the new norms will increase revenues by 4-5%, while overall EBITDA may drop by 2-3%. Sebi has given publicly-listed companies additional one month to declare results for the June and the September quarters to comply with the new norms.
The new standards Every country stipulates a method for companies to report financial data based on rules called accounting standards. India ha…

I-T dept to send notices to settle tax claims froms Sept

The income tax department will start settling the piles of over 300,000 pending tax disputes starting september. These disputes are pending at various benches of the Income tax Appellate Tribunals(ITAT) across India, according to a financial ministry official. To this end, the revenue department has asked the over 300 commissioners of the income tax -appeals(the first-level appellate aythority), to start sending notices to individuals and entities for resolving their cases under the one-time dispute settlement window,which was introduced in this year's budget. The income tax dispute resolution scheme,2016 will run till december 31 this year. As per the contours of the scheme,dispute involving tax claims below 10 lakh,the settelment can be done by just paying the basic tax arrers without  penalty will also have to be paid apart from tax and interest to settle the dispute. "In addition to the individual notices, the tax department will soon come out with a set of FAQs,trying to answ…

ATM-based Validation Enhanced for e-ITRs

The Income-Tax department has widened the ATMbased validation system for filing e-ITRs by taxpayers with the nclusion of Axis Bank, after SBI, as part of its measure to enhance the paperless regime of filing the annual I-T returns. “Now, Electronic Verification Code (EVC) can also be generated by pre-validating ATM provided by Axis Bank.SBI had activated the facility last month. Other banks are expected to join soon,“ a senior I-T department official said.

The Economic Times New Delhi,14th July 2016

Govt accepts Lahiri report on jewellery trade levy

The Union government has decided to increase the small scale unit ( SSI) eligibility limit and exemption limit for gold jewellery manufacturers. The decision was taken on the report of the committee appointed under the chairmanship of Ashok Lahiri, former chief economic advisor, in the aftermath of jewellers’ strike last March to oppose excise duty. The SSI eligibility limit has been raised from the present Rs. 12 crore to Rs. 15 crore and the SSI exemption limit from Rs. 6 crore to Rs.10 crore in a financial year. The government has also accepted other recommendations of the panel, which had representatives from the trade. It had suggested several relaxations in the tax laws on issues relating to compliance procedure for the excise duty, records to be maintained and related administrative issues. In this year’s Budget, an excise duty of one per cent without input and capital goods credit or 12.5 per cent with input tax credit was imposed on articles of jewellery. Jewellers then went on s…

Tighter transfer norms for P- notes

The Security and Exchange board of India ( Sebi) has notified new norms restricting transfer of Pnotes to entities authorised for their use and after prior consent from the issuer foreign investor. Participatory notes or Offshore Derivative Units are issued by Sebi- registered foreign portfolio investors to other overseas entities looking for an exposure to the Indian markets without getting registered directly to save on costs and procedures. However, Sebi has tightened its norms substantially over the years about who can issue and who can subscribe to these instruments, amid long- standing concerns about their possible misuse for laundering of money. The regulator decided on the latest tightening of norms earlier this year after recommendations in this regard were made by the Supreme Court- appointed Special Investigation Team on black Money. Whilesomeofthenew amendmentstotheregulations governingP- Noteshave already come into effect,Sebi has now notified on emorechange that was approv…

Non- passage of GST Bill unlikely to rock markets

The markets are keenly eyeing the prospects of the goods and services tax ( GST) Bill in the monsoon session of Parliament. While passage will be sentimentally positive for the Street, any negative development could trigger a knee- jerk reaction from the markets with a limited downside from the current levels, analysts say. According to reports, apart from GST, there are 25 Bills that form a part of the legislative agenda of the National Democratic Alliance ( NDA) government. Experts say the All India Anna Dravida Munnetra Kazhagam (AIADMK) will play a pivotal role in passage of GST. Even if the Congress votes against it, support from the AIADMK, either through abstaining or voting in favour of the Bill would help clear the GST Bill in the Rajya Sabha. “If GST is passed in the Rajya Sabha, it will easily be cleared by the mandated 50 per cent of states, as 20 out of 29 states and two Union territories are ruled by either the NDA or with states in favour of the Bill. In such a scenario, …

Sebi simplifies process of opening trading a/ c

Making the investor account opening process easier for stock brokers, markets regulator Sebi has allowed them to provide certain standard documents in the electronic format after obtaining the clients consent. These bulky documents, including Rights and Obligations of stock broker, sub- broker and clients, as also that of beneficial owner and depository participant, the Uniform Risk Disclosure Documents and Guidance Note detailing Dos and Donts for trading on stock exchanges, need to be mandatory provided in the physical format. The move would also help investors as it could be easier for them to store and refer to these documents in electronic format. However, the brokers would have to provide physical copies of these documents if the investors desire so. The new direction would come into effect for all new clients from August 1, 2016. In a circular, Sebi said: " In consultation with market participants, with a view to simplify the account opening kit, it has been decided that, st… News.. News...
1. Reassessment when related question was examined but not the pointed question. [Pr. CIT vs. Gujarat Flurochemicals Ltd. (Gujarat HC)].
2. Property purchase agreement merely creates a right to seek specific performance. [ Bindiya H. Malkani vs. CIT (Bombay High Court)].
3. Tribunal cannot deal with merits of case in order passed in miscellaneous application. [ Safari Mercantile Private Limited vs. ITAT (Bombay HC)].
4. DVAT Amendment Bill 2016 passed by Delhi Assembly on 13.06.2016 got LG's approval & has been notified as an Act by Law Department of GNCT. However date of its effectiveness is yet to be notified by Finance Department of GNCT. Copy available In Bar Office. TEAM STBA.
5. Scope of assessment  u/s 153A in absence of incriminating material. [ Pr.Cit vs. Saumya Construction Pvt Ltd. (Gujarat High Court)].