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Chinas top legislature on Sunday approved a proposal to revamp the countrys initial public offering ( IPO) system, authorising the government to implement changes to the system that could be in place as early as March, the official Xinhua news agency said. The State Council, or cabinet, had been awaiting approval on its plans to shift to aUS- style registration system for stock market floations. In the latest reform aimed at developing Chinas financial market, the changes are expected to help companies raise money more efficiently and reduce the involvement of regulators in the capital market. The widely expected approval by the National Peoples Congress, announced on Sunday, paves the way for regulators to draft detailed rules that will be implemented after seeking public feedback. Xinhua reported the approval on its official microblog. The next step for the State Council is to come up with specific details of the new IPO system. The cabinet could do so and implement a new I...

Updates Of the Day 1.Auditors are now required to report any suspected corporate fraud amounting Rs 1 crore or more to the central government, as stringent measures are being put in place to curb misdoings. 2.Disallowance cannot be made of expenditure not claimed as deduction in profit and loss account. [ITAT Delhi: Sunaina Tower Pvt. Ltd. vs. ACIT.] 3.Interest in leasehold property includable in net wealth of assessee if he exercises power of owner on it. Bombay High Court: Jaya Hind Sciaky Limited. 4.Government of the Republic of India and the Government of the Republic of Macedonia enters DTAA for the avoidance of double taxation. Notification No. 94/2015. 5.SEBI meeting on Implementation of OECD Principles of Corporate Governance, Spot Price Determination of Commodities etc. PR No. 297/2015. For more News Like us on https://www.facebook.com/caonlineofficial Or Subscribe on mail visit : www.caonline.in

Updates Of the Day 1.SEBI meeting on Implementation of OECD Principles of Corporate Governance, Spot Price Determination of Commodities etc. PR No. 297/2015. 2.Export Policy of Onions- Removal of Minimum Export Price on onions. Notification No. 29/2015-20. 3.Auditors are now required to report any suspected corporate fraud amounting Rs 1 crore or more to the Central Government under the Companies Act, 2013. 4.Section 54F do not stipulate purchase of new asset from sale proceeds of original capital asset only.[CIT vs. Shri Kapil Kumar Agarwal (P&H High Court)]. 5.Finance Ministry has asked Income Tax department officials to mandatorily mention their email and official phone numbers in e-letters and notices. 6.Applications are invited from advocates of substantial standing and repute and with good academic credentials for the empanelment of Addl. / Asstt Public Prosecutor of Income Tax Department. For more News Like us on https://www.facebook.com/caonlineofficial Or Subscr...

Updates Of the Day 1.Delhi High Court ruled that undervalued property can be registered in the capital. 2.SEBI Meeting on Implementation of OECD Principles of Corporate Governance, spot price determination of commodities etc. PR No. 297/2015. 3.CLB has issued a circular stating that the certified copies of the "Interim Orders" passed by the Principal Bench and New Delhi Bench on its official web site w.e.f 01.01.2016. 4.CD (compact disc) is an admissible ‘documentary evidence’-Supreme Court of India. [Shamsher Singh Verma vs. State of Haryana] 5.TPO can reject transfer pricing study report based on multiple year data and use only current year data [ITAT Bangalore DCIT vs. M/s. Parametric Technology (India) Pvt. Ltd]. 6.It is not the ‘profit from export’ but ‘profit of business’ which is to be considered in formula u/s 10B(4) [Delhi High Court in Riviera Home Furnishing vs. Addl. CIT]. 7.Interest paid on borrowed sums further advanced to subsidiary company for purpose...

Rajya Sabha passes three Bills while Lok Sabha passes 13 Curtains came down on the winter session of Parliament on Thursday, with the Lok Sabha (where the government has a majority) logging a productivity of 102 per cent. The Rajya Sabha, which faced continuous disruptions, was only half as productive at 50 per cent. The Bharatiya Janata Party (BJP)- led government’s efforts at pushing through the goods and services tax ( GST) Bill came a cropper with the Opposition digging in its heels, asking for specific changes in the Bill. The Congress disrupted the Upper House and 55 hours were lost over court summons to Congress President Sonia Gandhi and vice- president Rahul Gandhi in the National. Herald case; the overthrowing of the Arunachal Pradesh chief minister; and Finance Minister Arun Jaitley’s alleged role in the Delhi & District Cricket Association scam. While the Lok Sabha passed 13 Bills in 20 working days, the Rajya Sabha tried to make up for the lost time by passin...

To end uncertainty over applicability of Minimum Alternate Tax (MAT) on foreign institutional investors (FIIs) and foreign companies, the Central Board of Direct Taxes (CBDT) on Wednesday asked its field officers to complete the pending assessments in light of the directions issued regarding inapplicability of the tax liability on such entities. “The field authorities are hereby advised that pending assessments involving applicability of MAT on foreign companies (including FIIs and FPIs) should be completed in accordance with the decision of the government,” CBDT said in an instruction to field formations. The government had earlier decided that Section 115JB of Income Tax with regard to levy of MAT will not apply to foreign companies, FIIs and foreign portfolio investors (FPIs) and a requisite amendment would be made in the Finance Bill 2016. It was decided that MAT will not apply to companies prior to April 1, 2015. The government had already in last Budget clarified that MAT...

Clearing the Air Central Board of Direct Taxes' guidelines on whether an entity's place of effective management lies in India will affect foreign, domestic cos' overseas ops PLUGGING THAT LOOPHOLE Cos avoided paying tax in India by artificially escaping residential status outside India Foreign companies outsourcing high-end critical functions to India that contribute substantially to their global value or domestic companies setting up arms outside the country for raising funds or expanding business could now face a tighter scrutiny to see if they were being effectively managed from India. In what could have significant tax implications for such businesses, the Central Board of Direct Taxes has spelt out norms to determine if an entity's place of effective management lies in India. These guidelines follow a change in income tax in the budget, which provided that a company will be resident in India in any previous year if it is an Indian company or its place of effe...

In a relief to those thinking of buying or selling properties in the capital, the Delhi High Court on Wednesday ruled that municipal corporation’s Registering Officer cannot refuse to register the sale or transfer deed, even if they are under-valued against the existing circle rates. A bench of Chief Justice G Rohini and Justice RS Endlaw said the registering authority will then have to give an opportunity to the parties to revise the valuation in “consonance with the circle rates”. However, in the event parties do not pay the deficient stamp duty or transfer duty in terms of the circle rates, the registering authority will forward the case to the Collector of Stamps for determination of the actual value. “…the stamp duty paid on a transfer document need not always be in accordance with the prescribed circle rates and that if the valuation and stamp duty is below the circle rates the registering authority has to first register the document and refer it to the Collector for dete...

IT min seeks relief on cap gains invested in new ventures & those made on investments The ministry of communications and information technology has proposed tax exemptions on stock options given to employees by startups, on capital gains that are invested in new ventures and those made from investing in new firms. The moves could have a catalytic effect on such companies in the event the measures are adopted. The proposals have been sent to the finance ministry as part of suggestions for next year's Budget and are aimed at promoting the startup ecosystem, in line with the initiative that Prime tive that Prime Minister Narendra Modi announced in his Independence Day speech. Some “70-80% of startups in the country are tech-related and we need to find a way to encourage private capital and long-term investment in Indian tech startups“, said an official. The department of IT, which is part of the ministry, has also proposed that such exemptions on employee stock options (Es...

Such firms to pay tax in India if decision- makers hold Multinational companies ( MNC) will be liable to pay tax in India if those who take key decisions conduct most of their meetings in India, even if the decisions are implemented in another tax jurisdiction, according to the draft guidelines of the finance ministry. The proposed rules might force MNCs to locate their regional controller offices outside India, say experts. With a view to tightening loopholes to deter tax evasion by multinational companies —Indian or foreign — the government on Wednesday released guidelines on place of effective management ( PoEM). The rules will affect Indian companies that take most decisions about their foreign subsidiaries from India and also foreign multinational companies with shell divisions. The rules will come into effect from 2016- 17 assessment year, which means this financial year. PoEM has been defined as “ a place where key management and commercial decisions that are necessa...

Updates Of the Day 1.Online Applications are invited from CA firms / LLPs from 1st January 2016 to 15th February 2016 for empanelment for appointment as auditors of Govt Co.s / Corporations for the year 2016-17. www.saiindia.gov.in. 2.ICAI issued revised schedule of counting of votes for Northern Region o Postal Ballots –4th or 5th January, 2016 o Ballot Boxes – 5th or 6th January, 2016 3.Ghaziabad branch of CIRC OF ICAI is hosting National Convention of CA Students on 25th and 26th December 2015 at Hindi Bhawan, Lohia Nagar, Ghaziabad Fee : 400/- only. For registration call at 0120-4114478 / 2793802 4.Lok Sabha on Thursday passed the Arbitration and Conciliation (Amendment) Bill, 2015, aimed at making dispute resolution in the country quicker and easier. 5.Reserve Bank of India has created an email helpline to provide regulatory advice for start-ups. 6.MCA has notified the Companies (Meetings of Board and its Powers) Second Amendment Rules, 2015 which shall come into force o...