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Audit and accounting firms favour multi- disciplinary partnership, the legal fraternity stays out The global turf war between accountants and lawyers was played out in India last month, when the Society of Indian Law Firms (SILF), an association of about 100 law firms, filed a complaint with the regulator, Bar Council of India, saying that four multinational audit and accounting firms — EY, KPMG, Deloitte and PwC — were indulging in the practice of law in violation of the Advocates Act, 1961 provisions. The Bar Council sent notices to the firms, seeking their response. The move comes at a time when the three professional institutes that represent chartered accountants, cost accountants and company secretaries are working on broad contours of setting up multi- disciplinary partnerships. That would allow them to offer audit, cost accounting and consultancy services under one roof. However, the legal fraternity in India has taken an aggressive stand against the multi- disciplinary...

Will amend 1986 law to bring provisions in line with global standards; DMs to get implementation powers, rehabilitation fund coming The government will push a Bill amending the law on child labour in the coming session of Parliament. It was introduced in the Rajya Sabha in December 2012 and then sent to a standing committee for scrutiny. The final shape was cleared by the Cabinet in May. It proposes a full ban on employment of children below 14 years of age across all industries and processes. However, a child will be allowed to “ help” her family in their own businesses after school hours or during  vacations , and also work as a child artist. The ministry will continue its ban on children working in a circus. Various activists had criticised the government’s move to allow children to assist their families in work. However, the government has said it will not allow children to work in set- ups where an employer- employee relation is established. “It is important to not...

Monsoon uncertainty, increase in oil prices cloud inflation outlook The Reserve Bank of India ( RBI) is expected to keep the interest rate unchanged on August 24, in its third bi- monthly monetary policy review for 2015- 16. This was the near- unanimous response of 10 market participants in a poll conducted by Business Standard. While nine of the respondents said they expected RBI to maintain the repo rate — the rate at which banks borrow from the central bank — at 7.25 per cent, only one said the rate could be reduced, by 25 basis points. The market believes the outlook for inflation over the next few months depends on the monsoon rainfall during the rest of the season. So, RBI Governor Raghuram Rajan might adopt a wait- andwatch approach for now. Besides, RBI had front- loaded the rate cut, with a 75- basis- point reduction since the start of 2015. “Food prices remain at the mercy of exogenous events like rains. As such, they also remain the biggest threat for RBI in ...

Congress preparing a dissent note on the issue The government appears ready to accept the demand for full compensation to states for a period of five years after introduction of the proposed national goods and services tax ( GST). By acceding to this view among the Rajya Sabha panel scrutinising the constitutional amendment Bill for GST, the government would be closer to getting regional political parties on board for the major tax change. The Congress party, however, continues to oppose the present Bill and is preparing a dissent note to the report. Left representatives are also likely to dissent on several clauses. The Bill had proposed full compensation for three years, tapering to 75 per cent in the fourth year and 50 per cent in the fifth. The panel is slated to finalise the report next week. It could see a majority siding with the government, with the dissenters likely to be limited to Left, Congress and AIADMK, five of the 21 members. The Congress wants removal of th...

There is needless despair over the centre’s inability to pass a land law After almost a year of struggling, the Union government has admitted to political roadblocks that prevent the passage of a rational land acquisition law. Efforts to replace the existing law, approved by Parliament in 2013, have failed. At a meeting of the NITI Aayog last week, Union finance minister Arun Jaitley hinted at a different, less than perfect, solution to the problem. In comments after the meeting, Jaitley said that, “There was a suggestion from the states that those who wanted development (should) be allowed to frame their own laws that the central government could approve. This was a suggestion from an overwhelming section of the chief ministers.” As matters stand now, this appears to be the only way out. The Narendra Modi government has repeatedly issued ordinances that embody a better, more industry-friendly law. But these have fallen in the Rajya Sabha as the government is in a minority ther...

For both central and state systems, to be opened for feedback once the Constitution amendment is through The government is preparing model draft legislations to implement the proposed national goods and services tax (GST). "It is to put these for comments from stakeholders once Parliament approves the GST constitution amendment bill," disclosed Central Board of Excise and Customs (CBEC) member V S Krishnan at a business chamber event here. He said this would be done once the constitution amendment, pending in the Rajya Sabha, is passed. This Bill will also then, have to be approved by half the states. The Bill, approved by the Lok Sabha, is being scrutinised by a Rajya Sabha panel, likely to give its report next week. The three legislations - Central GST (CGST), State GST (SGST) and integrated GST (iGST) - will have to be approved by the respective legislatures for nationwide roll out of the single rate GST. CGST would be a central law and states would have to pas...

Indian co. may issue ESOP & sweat equity shares outside India,subject to filing of return in Form-ESOP to RBI within 30Days of issue.Notification dated 16.07.15 Regards Webecreator!

The Reserve Bank of India ( RBI) has clarified that the restriction on investments with less than three years residual maturity shall not be applicable to investment by foreign portfolio investors (FPIs) in security receipts issued by asset reconstruction companies ( ARCs). However, investment in security receipts shall be within the overall limit prescribed for corporate debt from time to time, RBI said. Earlier, the regulator had received enquiries about the applicability of the aforesaid directions on investment by FPIs in the security receipts. RBI also said operational guidelines, if any, would be issued by the Securities and Exchange Board of India. Business Standard, New Delhi, 17th July 2015

But tax exemption will depend on the purpose Balance transfer of home loans has become very common after the removal of penalty on pre- payment. Many banks are offering borrowers the option to avail of a top- up loan while doing the transfer. The advantage is the possibility to shift to a lower interest rate loan and getting a higher amount at the same time. The additional amount can be used for any purpose as long, as it is not speculative in nature. Today, banks are willing to offer top- up home loans at the same rate as a home loan, as a strategy to entice borrowers to do a balance transfer, says Gaurav Gupta, of Myloancare. in, a home loan advisory. “Most banks tend to price top- up loans closer to rates on loan against property ( LAP). But to make balance transfers attractive, many are offering discounts on top- ups as an incentive,” Gupta says. As compared to an LAP, the advantage of a top- up home loan is a lower interest rate and longer repayment period. Processing is...

The Reserve Bank on Thursday said a company where foreign investment is under the approval route will require prior Foreign Investment Promotion Board’s nod for issuing employee’s stock option to employees of its foreign units. Business Standard, New Delhi, 17th July 2015

The Maharashtra government is exploring options to bring in its own Act on land acquisition or to amend the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act. The government wanted to continue using Maharashtra Industrial Development Act, 1961, for industrial projects but adhere to the provisions of the higher compensation proposed in the present Act ( LAAR Act). The government had assured higher compensation to landowners through negotiations and consent route when land was being acquired for industrial purpose. Maharashtra Chief Minister Devendra Fadnavis had at the NITI Aayog meeting on Wednesday said the Centre had retained the right to exempt social- impact assessment ( SIA) and the consent clause for acquisition under the LARR Act, 2013, while states had not been given this flexibility. A state revenue official said the government would in its new Act give more clarity to contentious issues relating to compensation, social ...