Announcements - Definition of Relative in Chapter-IV of the Council General Guidelines, 2008 - (29-07-2011)

ANNOUNCEMENT No. ICAI/ESB//2011/02 All the members of the Institute of Chartered Accountants of India (ICAI) are  hereby informed that in terms of its decision taken at the 299th Meeting of the  Council held on 27th – 28th October, 2010, it has been decided that the term  “relative” for the purpose of Chapter-IV of Council General Guidelines, 2008  (Opinion on Financial Statements when there is substantial interest)  will have the same meaning as assigned to it in AS-18..

Announcements - Amendment in Council General Guidelines , 2008 - (29-07-2011)

ANNOUNCEMENT

No. ICAI/ESB/2011/01

All the members of Institute of Chartered Accountants of India (ICAI) are hereby informed that in terms of the Council decision taken at its 306th Meeting held on 7th - 8th June, 2011, the Chapter-XII (Minimum Audit Fee in respect of Audit) of the Council General Guidelines, 2008 appended to the ICAI publication titled “ The Chartered Accountants Act, 1949” has been repealed with effect from 7th June, 2011

Announcement of KYC Norms -ICAI

No. ICAI/ESB/2011/03

Announcement of KYC Norms

All the members of Institute of Chartered Accountants of India (ICAI), who are in practice,  are hereby informed that the Council has formulated the following Know Your Client Norms (KYC norms)  at it’s 307 th Meeting held on 13thJuly,2011, which shall be recommendatory in nature, and apply only in case of attest function.

ITAT case:HUF is a “relative” for gifts exemption u/s 56(2)(v), (vi) & (vii)

CASE OF: Vineetkumar Raghavjibhai Bhalodia vs. ITO (ITAT Rajkot)

The assessee received a gift of Rs.60 lakhs from his HUF. The AO & CIT(A) held that as HUF was not covered by the definition of “relative”, the gift was chargeable to tax u/s 56(2)(v). The alternate submission that gift was exempt u/s 10(2)was rejected on the basis that s. 10(2) applied only to amounts received “out of income of the estate” on partial or total partition of the HUF. On appeal by the assessee, HELD allowing the appeal:

(i) S. 56(2)(v) exempts gifts from a “relative”. Though the definition of the term “relative” does not specifically include a Hindu Undivided Family, a ‘HUF” constitutes all persons lineally descended from a common ancestor and includes their mothers, wives or widows and unmarried daughters. As all these persons fall in the definition of “relative”, an HUF is ‘a group of relatives’. As a gift from a “relative” is exempt, a gift from a ‘group of relatives’ is also exempt since the singular will include the plural;

(ii) The gift was also exempt u/s 10(2) because the two conditions required to be satisfied for relief viz (1) that the assessee is a member of the HUF and (2) that he receives the sum out of the income of such HUF (may be of an earlier Year) were satisfied.

Registration Of Lawyers For Service Tax Stayed By Madras High Court

The Revenue Bar Association, Madras, filed a Writ Petition in the Madras High Court challenging the validity of levy of service-tax on “legal consultancy services”. The Court has passed an order of interim injunction dated 24.06.2011 restraining the Ministry of Finance from compelling the members of the Petitioner from registering themselves with the service tax authorities andcollecting service-tax from them until further orders.


Click here to download Madras HC order dated 24.06.11 staying service-tax on lawyers:
http://dhavaldesaisays.files.wordpress.com/2011/06/service_tax_registration_stay.pdf

New services at NSDL website

Two new services started at NSDL website

 

PAN view - Taxpayer view for TDS/TCS credit (from F. Y. 2005-06 onwards) athttps://onlineservices.tin.nsdl.com/TIN/JSP/form16A/LinkToUnauthorizedPanView.jsp

To know whether your deductor/collector has filed quarterly TDS/TCS statement and provided your PAN, provide details as below.

PAN of the Deductee:
TAN of the Deductor:
Financial Year:	SELECT  2012-13  2011-12  2010-11  2009-10  2008-09  2007-08  2006-07  2005-06

 Verification of Forma16A generated by TIN website by Tax Payer athttps://onlineservices.tin.nsdl.com/TIN/JSP/form16A/LinkToUnauthorizedView.jsp

verification of Form 16A generated from TIN website issued by Deductor to the deductee.

Financial Year:	SELECT  2011-12  2010-11
Quarter:	SELECT  Q1  Q2  Q3  Q4
TAN of the Deductor:
PAN of the Deductee:
Certificate Number:
Total Amount Deducted:

 

Extension in date of Package scheme of incentives-2007 to 31/08/2011

Forwarded MSG attached.

Dear Friends

The PCI(Maharashtra) 2007 has extended upto 31/08/2011 the GR is attached


Click here to download the GR passed:http://dhavaldesaisays.files.wordpress.com/2011/06/20110630125414001.pdf

AIR Related scrutiny assessments should be limited to info in AIR

FORWARDED MSG ATTACHED OF MR. Hiten Gada 


Dear All,

Please go through the letter from CBDT in this behalf addressed to all the
CCITs and DGITs.
The assessment for AY 2009-10 are now taken up for hearing. Please make use
of this letter to convey to officer that scope of inquiry should be
restricted to matter reported in AIR If he is extending the scope in its
questionnaire they send, you may reply against the same asking for a copy of
AIR info and please ask him to restrict his scope.
I believe before submitting details as per lengthy questionnaire, it would
be advisable to obtain the copy of AIR info and submitt only the relevant
details.


To read that letter click here:https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0Bz0INWeiJAEQNWExNmY3YzYtZDExMi00YmQxLTk4M2MtMzY5NWYyMzEwNjFk&hl=en_US

High Court stay for Service tax on bar attached hotels

FORWARDED EMAIL IS ATTACHED

It is understood from reliable sources that Kerala High Court has granted stay for two months on service tax on Bar attahced hotels.

Service tax on Air conditioned Restaurent (Bar attached hotel) service was made taxable from 1.5.2011

The order is awaited. will share the copy of the order at the earliest.

This is for your information



With Warm Regards,

CA. TONY.M.P
THRISSUR,KERALA
Mobile: 094470 80631. 

Shareholding of promoter / promoter group to be in dematerialized mode

CIRCULAR


Cir/ISD/ 3/2011 June 17, 2011

To,
All Stock Exchanges

Dear Sir / Madam,

Sub: Shareholding of promoter / promoter group to be in dematerialized mode

1) SEBI had vide SEBI/Cir/ISD/1/2010 dated September 02, 2010 issued a circular on “trading rules and shareholding in dematerialized mode”. The said circular was issued in order to moderate sharp and destabilizing price movements in shares of companies, to encourage better price discovery and to increase transparency in securities market. The aforesaid circular inter-alia mandated securities of companies to be traded in normal segment, if and only if, the company has achieved atleast 50% non-promoter shareholding in dematerialized form and maintained the same on a continuous basis.

CPT Mock Test for June, 2011 Exam---Last date for registration 25th May.

CPT Mock Test for June, 2011 Exam Day & Date : Sunday 5th June, 2011 Time : Morning session – 10.30 am to 12.30 pm Afternoon session – 02.00 pm to 04.00 pm Fees : Rs.200/- by cash / Cheque Mode of Mock Test : OMR answer Sheet Last Day for Registration : 25th May, 2011 (upto 05:00pm ) Registration Centres : 1. WIRC Office, ICAI Bhawan, Cuffe Parade, Mumbai 2. WIRC -DADAR Library 3. WIRC – Andheri RVG Hostel 4. WIRC – Mulund Library Date of Result : 11th June, 2011 (will be hosted at WIRC website) Chief Co-ordinators : CA Neel Majithia 9820327660 CA Mangesh Kinare 9869070539 For Registration and information contact 022-3980 2923/22 Cheques should be drawn on in favour of “WIRC OF ICAI” payable at Mumbai. Note: Forms will be available on WIRC Website and should be submitted by 25th May, 2011. Hard Copy of Registration forms will also be available at the above centres. Download Registration Form:click here:https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0Bz0INWeiJAEQZDc1ZWM4OWMtNWI2NC00Zjc0LTlhZmUtNThiYTIxYmY4YWQw&hl=en_US

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 effect unless approved by the Central Government on an application, in respect of:—

 (a)  Partner of film or relative of a Director or Manager; or
 (b)  Firm in which such Director, or Manager of relative of either is a partner; or
  (c) Private Company of which such Director or Manager or relative of either is a Director, or member, which carries a monthly remuneration exceeding, Rs. 2,50,000 p.m.
 (d)  An individual who is a relative of a Director, or Manager and is appointed as an Advisor or Consultant and paid remuneration including commission on periodical basis.

IAASB Seeks Global Views on Enhancing the Value of Auditor Reporting

FOR IMMEDIATE RELEASE

Contact:

Laura E. Wilker

Head of Communications

+1-212-471-8707

(Mobile) +1-914-646-3957

laurawilker@ifac.org

IAASB SEEKS GLOBAL VIEWS ON ENHANCING THE VALUE OF AUDITOR REPORTING

(New York/May 16, 2011) – The International Auditing and Assurance Standards Board (IAASB) today released its consultation paper, Enhancing the Value of Auditor Reporting: Exploring Options for Change, to obtain views on enhancing the quality, relevance and value of auditor reporting on an international basis.

The consultation paper seeks to determine whether there are common views among users of audited financial statements and other stakeholders about the usefulness of auditor reporting. It describes issues with current financial reporting, including a perceived “information gap,” identified by some stakeholders. It then sets out possible options for change and seeks input as to whether such options might be effective in enhancing auditor reporting and the communicative value of the auditor’s report.

“The auditor communicates to financial statement users primarily through the auditor's report,” noted Prof. Arnold Schilder, IAASB Chairman. “Over the past several years, the IAASB has developed International Standards on Auditing addressing auditor communication and reporting with the aim to address the expectations gap and, more recently, to promote international consistency in auditor reporting. The IAASB believes that now is the time for a more fundamental review of auditor reporting to ensure, in the public interest, that it can meet the information needs of financial statement users in a global business environment with increasingly complex financial reporting requirements.”

The IAASB is also seeking information about the potential implications of changes in auditor reporting, as well as about possible implementation challenges. The paper recognizes that not all of the options explored are able to be implemented by the IAASB on its own—some would require collaboration with national standard setters, regulators and/or legislators to develop or implement.

“This consultation is aimed at gathering views from around the world to inform the IAASB about whether there is consensus about the need to enhance auditor reporting and, if so, how an enhanced model might be achieved,” said James Gunn, IAASB Technical Director. “Investors and financial analysts have signalled to us they want additional, and more pertinent, information for their decision making. The IAASB wants to better understand these views as well the views of others, including users of audited financial statements of small- and medium-sized entities and public sector organizations, preparers, auditors and other key participants in the financial reporting process.”

How to Comment
The IAASB invites all stakeholders to respond to its consultation paper. To access the onsultation paper or submit a comment, visit the IAASB’s website atwww.iaasb.org/ExposureDrafts.php. Comments on the Consultation Paper are requested by September 16, 2011.

Puma creates world's first eco-P&L statement

Footwear company Puma is reported to be the world's first company to publish a comprehensive environmental profit-and-loss statement, detailing the economic cost of greenhouse emissions, water consumption and social impact related to its operations. John Elkington, who first proposed the concept of the triple bottom line, said: "This sort of accounting was pretty much what I had in mind when I came up with the triple bottom line 17 years ago. We've taken a while to get there, but the pace is accelerating."

Supreme Court stays Delhi High Court's service tax order on rent

January, 13th 2011

The Supreme Court has stayed an order of the Delhi High Court, which stopped the Centre from recovering service tax on renting of immovable property for commercial use, including shops and malls, from some firms.

A Supreme Court bench comprising Justices Mukundakam Sharma and A R Dave stayed the interim order passed by the Delhi High Court on May 18, 2010. The Centre has challenged the order.

"There shall be an interim stay of the operation of the impugned judgement till the next date," said the apex court, directing that the matter be listed for next hearing on January 20.

The High court, allowing the appeal of around 20 firms including Home Solutions Retail, had stayed the amendments made by the government in the Budget, 2010-11.

In the Finance Act, 2010, the government had amended taxing entry of "Renting of Immovable Property service", with retrospective effect, from June 1, 2007