Knowledge test’ soon to assess company directors

Monday, October 26, 2009 6:58 PM By Livemail


The Corporate Affairs Ministry wants to introduce a new concept called the ‘knowledge test’ to find out if directors had previous knowledge of a company’s wrongful acts.
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As a first step,
it would be ensured that the board processes are totally transparent. If it is found that the board papers had a mention of any wrongful act, and a director to whom the papers were circulated did not get his objections recorded in the minutes of the meeting, then he would be deemed to have colluded to commit that wrongful act.
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The silence of directors will no longer save them, they said. Currently this concept of ‘knowledge test’ is not included in the Companies Bill. The Bill is now being considered by the Parliamentary Standing Committee of Finance. The debate on this is on and officials are finalising details, the sources said. Besides, companies would have to hire external specialists to get their directors trained on their legal duties. As in the US and the UK, the companies would then need to get directors’ performance evaluation done by a Nominations Committee comprising external experts, or by their Chairman. Companies would have to fix Key Result Areas (KRA) for directors at the start of the fiscal and map the KRAs vis-À-vis the directors’ performance. This would enable shareholders to decide if they should re-elect those directors to the board or not. “The stakeholders of a company expect directors to deliver. But only a few Indian companies follow international norms on this aspect.
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Therefore, a system providing for performance evaluation of directors is a must,” Mr N. K. Jain, Secretary and Chief Executive Officer, the Institute of Company Secretaries of India, said. According to the Companies Bill, directors should act in good faith to promote a company’s objects and exercise their duties with reasonable care. If a director is found guilty of failing to do his duties, he would be fined between Rs 1 lakh and Rs 5 lakh. If a director is found guilty of making undue gains for him or his relatives and associates, he would have to pay an amount equal to that gain to the company.

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Is Transfer of Computer Software Taxable in India

Tuesday, October 20, 2009 7:49 PM By Livemail


There is an ongoing debate if the sale/transfer of computer software attracts Income Tax in India or not. Accordingly, where foreign company transfers computer software to an Indian company from outside India, a question arises as to whether the Indian company is liable to deduct tax at source while making remittance from India. The problem is complex because the software is generally embedded with intellectual property rights. In other words, the acquirer of the software usually also gets along with the software a licence to use the same.
The Income Tax department argues that purchase of software and payment therefore amounts to TAX (62)royalty payment in consideration for getting a licence to use the software. The other view is that the supply of software should be treated as sale of goods. The Supreme Court in case of Tata Consultancy Services vs. Union of India 271 ITR 401 has held that supply of software should be treated as sale of goods liable for levy of sales tax.
The problem arises because the Indian Income Tax Act does not contain any clear provision with regard to transfer of computer software. In fact there are two types of software, namely, “Unbranded software which is specialised and exclusively custom made to cater to the needs of individual clients” and “Branded software or off-the-shelf software” which is standardised and marketed as such. When an off-the-shelf software is sold there appears to be little doubt that the essence of such transaction is an outright sale. But when a customised software is sold, a doubt on the nature of transaction can certainly arise. The former is clearly a sale of a copyrighted article, but the later may fall in the category of granting of licence to exploit a copyright.
Whereas Indian tax laws do not throw any light on the above controversy, the OECD Commentary clarifies the distinction between the right to use copyright and transfer of a copyrighted article. According to OECD, only a transfer that enables a transferee to commercially exploit software copyright will give rise to royalty income. But where the transferee gets exclusive rights for use, though short of full ownership, it will nevertheless be a case of sale of software. In such cases, the transaction will be outside the tax net in India.
In the above background, a recent decision of Karnataka High Court is very important. The court, in a decision delivered on September 24, 2009, held that technology firms are obliged to deduct tax at source on purchase of software from global vendors such as Microsoft. The High court accepted the Income tax Department’s argument that software purchase amounts to royalty payment in consideration for a licence to use it: it is not a mere purchase of goods.
It must, however, be noted that the Karnataka High Court Judgment is in relation to deduction of tax at source. The court did not venture into the question whether purchase of software amounted to royalty payment or not. The court merely said that the firms buying software should not sit on judgment whether the recipient is obliged to pay tax in India. They have to deduct tax the moment they make payments to a non-resident party.
Despite the aforesaid fact, the judgement sends across a feeling that when foreign companies transfer computer software rights to any concern in India, they will be liable to be taxed in India.
It is therefore felt that the government should clarify the law on taxability of transfer of software from foreign companies to Indian companies because a large number of technology firms, and all those using foreign software against payment will be directly affected by the interpretation given by Karnataka High Court. The CBDT should clarify the stand of the Government so that foreign companies are not unnecessarily dragged into litigation in India.

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Retain the tax benefits available to SEZs - Commerce Dept going to ask FM

7:36 PM By Livemail

The commerce department has decided to ask the finance ministry that the proposed direct taxes code retain the tax benefits available to the units located in special economic zones (SEZs), as it fears changes in the tax regime for SEZs could affect the flow of investments to these zones.

The draft tax code, which seeks to simplify and rationalise the direct tax structure, has proposed a flat 25% tax on corporate profits against the current 34%, including various cesses, but in exchange has suggested all exemptions be withdrawn.

The units located in SEZs enjoy tax rebate under section 10AA. SEZ units are entitled to 100% tax exemption on export profits in the first five years of operation.

For the next five years, units can enjoy 50% exemption while in the following five years, units get up to 50% exemption on reinvested profits. SEZ developers, on the other hand, get 100% tax exemption on profits for any ten years in a block of the first 15 years.

The draft direct tax code has not clarified in what manner SEZ units will be given incentives. The commerce department has decided to insist that for SEZ units, section 10AA of the income tax act should continue to be applied.

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Announcement regarding service tax for November,2009 examinations - (1510-2009)

Sunday, October 18, 2009 6:57 AM By Livemail

Announcement regarding service tax for November, 2009 Examinations - (15-10-2009) Rate of service tax reduced from 12% to 10%

In addition to the Notifications and Circulars given in the Appendix to the RTPs for November, 2009, students may note that rate of service tax has been reduced from 12% to 10% with effect from 24.02.2009 vide Notification No. 8/2009-S.T. dated 24-2-2009. The said notification is relevant for the following mentioned papers in November, 2009 examinations: -
Part –II : Service tax and VAT of Paper 5 : Taxation of Professional Competence Examination
Part –II : Service tax and VAT of Paper 4 : Taxation of Integrated Professional Competence Examination
Paper 8 : Indirect taxes/ Paper 8 : Indirect Tax Laws of Final Existing/New Examination

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Section 54: Relief Allowable Even if New House Purchased from Borrowed Funds

Wednesday, October 14, 2009 6:46 PM By Livemail

Section 54 provides that if an assessee has LTCG on transfer of a residential house and he purchases or constructs a residential house within the specified period then the amount appropriated towards the new house shall be deducted from the LTCG. The assessee sold a house and used the sale proceeds to buy commercial property. Subsequently (but within the specified period) he borrowed funds and purchased a new house. The AO denied deduction u/s 54 on the ground that the new house had been purchased out of borrowed funds and not out of the consideration received for the old house. On appeal, the Tribunal and High Court upheld the claim on the ground that s. 54 merely required the purchase of the new house to be within the specified period. The source of funds for the purchase was irrelevant.

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ICAI proposes ban on foreign auditors’ tie-ups

6:41 PM By Livemail

Indian audit firms that informally work as the audit arms of big foreign accounting firms may soon have to sever their foreign affiliations, if accounting and auditing rule maker ICAI has its way. ICAI has started pitching for restraining all foreign firms from associating with domestic firms that do statutory audits in India. Since foreign accounting firms cannot do audit work in India because the country has not yet opened up this sector to foreign firms under WTO discussions, they tie up with a local audit firm to offer this service to their clients. Another reason for the tie up is that an audit firm that advises a client cannot do statutory audit for the same client due to conflict of interest issues. The ICAI’s proposal, if vetted by the government, may create a major turnaround in the operations of the Big Four audit consultancy firms in India––comprising Ernst & Young, KPMG, Deloitte and Price WaterhouseCoopers (PwC). 


         Even as the Big Four does not do audit in their names, ICAI wants to put an end to such business associations. “What cannot be done directly should not be done indirectly,” said ICAI president Ved Jain. If ICAI’s view is accepted by the government, foreign consultancy firms like Ernst & Young, KPMG and Deloitte may lose their audit associations here. In India, Ernst & Young has tied-up with SR Batliboi & Co, KPMG with BSR & Co, and Deloitte with CC Choksi & Co as their audit affiliate. Price Waterhouse is the Indian audit arm of its global parent PwC, and all its employees are Indians. An audit partner with one of the Big Four audit firms said on condition of anonymity that under the present set up, foreign consultancies can share, with its Indian affiliate, 20% of its partners.

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Relevant Updates and Case Laws (IDTL) for CA Final Exams

6:39 PM By Livemail


Click the Link to Download as PDF Format :


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List Of SAs to be refered for November 2009 Exams

6:37 PM By Livemail


ICAI has published list of  SAs for  (PCC  & IPCC) \PE2\(Final New & Old Course)  for the purpose of November 2009 Exams.
It has also provided Detailed PDF files for all SAs for the purpose of reference.
For further Details visit the link below.

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Mock Test Papers for CA Students released by ICAI

6:35 PM By Livemail , In , , , ,


Board of Studies has planned to bring Mock Test Papers for various examinations in order to enable the students to have practice in working out practical problems and also in answering theoretical questions on various subjects of CA examinations.
Students can send the answer on the following address for evaluation purpose.
The Director,
Board of Studies,
A-94/4, Sector-58,
Noida-201 301

The papers will be evaluated by appropriate faculty members as assigned by the institute.
The first series of test papers are for the following examinations, click on the exam name to download the test series.
The Board of Studies has announced to release subsequent series gradually. Hope the above study material is going to help all CA students a lot.

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TDS on Payment to Contractor/Sub-Contractor under New Provisions w.e.f. 1-10-2009

Friday, October 9, 2009 6:31 PM By Livemail


Provisions applicable from 1-10-2009 for TDS rates and other provision of section 194C “TDS from payment to contractors and sub-contractors as amendment made by the finance (No.2) act, 2009.


In order to reduce the scope for disputes regarding classification of contract as sub contract the act has specified the same rate of TDS for payments to both contractors as well as sub contractors. To rationalise the TDS rates and to remove multiple classifications the act has provided same rate of TDS in the case of payment for advertising contracts.


TDS on Payment to all Contracts/Sub-Contracts including Advertisement Contract/Sub-Contractors
Rate of TDS
  1. Payment for a contract is to be made to individual/HUF – 1%
  2. Payment for a contract is to be made to Other than individual/HUF - 2%
Notes:
  1. 20% in all above cases – PAN is not quoted by the deductee on or after 1-4-2010.
  2. No Surcharge, EC and SHEC shall be added
  3. TDS shall be deductible a basic rate
TDS on Payment to Transporter -TDS rate will be as follows under two conditions w.e.f. 1-10-2009.
When PAN is quoted
  1. NIL
When PAN is not quoted
  1. 1% for Individual/HUF. (Up to 31-3-2010 after that 20% in all cases.)
  2. 2% for Other then Individual/HUF. (Up to 31-3-2010 after that 20% in all cases.)
Conditions when Tax is not required to be deducted at source
1. If amount does not exceed Rs. 20,000 to the contractor or sub-contractor at one time.
2. And if amount does not exceed Rs. 50,000 in the aggregate during a financial year in-spite of the fact that separate contracts are entered into with that person.


Question – Will the provision apply in a case where a contract or work is given on piece rate basis without any stipulation regarding the total quantum of such work?
Answer – If the total payment under the contract is likely to exceed Rs. 50,000 for the entire period during which the contract will remaining force, income-tax will have to be deducted at source. In a case where , a the time when the contract was entered into, it was expected that the total payment there under would not exceed Rs. 50,000 but later on it is found that the payment exceeds that amount, deducted should be made in respect of earlier payment as well.

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About TheReader Blog -TRB

Wednesday, October 7, 2009 9:50 AM By Livemail , In ,

Your Financial Knowledge Partners – Share. Discuss. Learn


A group of professional CA’s have come together to create an interactive platform, for all,
accomplished & aspiring CA’s, to keep them updated on all the new laws, amendments & updates therein.
Knowledge sharing to aspiring students and working professionals to create an interactive platform, for all, accomplished & aspiring CA’s, to keep them updated on all the new laws, amendments & updates therein.
The Reader is a place for all CA’s & aspiring CA’s to come together and,

Share

become Knowledge Partners.

Discuss

an Interactive Financial Forum where CA’s / Finance Professional come together for interchange of their opinions & ideas on financial related topics & queries. This section is aptly used by the TRB members to exchange views on all current topics & also be in touch with their individual study circles. This unique feature allows all registered members to share, discuss & learn from group members, CA study circles, through interactive discussions. This makes them more informed & leaves them a lot richer with relevant in-depth knowledge.

Learn

through its Knowledge partner’s interactivity,TRB is helping in making every individual more informed & leaving them a lot richer with relevant in-depth knowledge.
With the ever increasing TRRB members, our team believes that TRB will soon become the home page for finance / tax related updates & queries, with regular expert visits to guide the users in making the right decisions & eventually making the users more informed.
Do let us know your suggestion, comments and feedback using the contact page. We would be happy to hear from you.

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Government will soon empowered to incorporate in the Companies Act any changes in accounting standards

9:45 AM By Livemail

The Government will soon be empowered to swiftly incorporate in the Companies Act any changes in accounting standards through the rules governing the Act. It will not have to go through the long process of amending the Act.


In this regard, for the first time, the new Companies Bill has proposed that accounting standards will be laid down in the Bill (that will soon be the new Companies Act) itself. Currently, accounting standards are only recognised and notified under the Act.

Empowering the Government (here, the Corporate Affairs Ministry) to prescribe the latest international accounting standards through executive orders, will be akin to the Union Finance Ministry administering the Income-Tax Act through rules, said Mr Kaushik Dutta, Partner, PricewaterhouseCoopers.

The new powers of the Government will enable big companies to immediately adopt international best practices in accounting, said Mr Rahul Roy, Director, Ernst and Young.

The Government will also be able to prescribe additional disclosure norms in its accounting rules.
Besides, it will be easier to adopt the International Financial Reporting Standards (that will be effective from April 2011), as there will not be any need to amend the Companies Act, Mr Dutta said.There would be some advantages for small and medium enterprises. SMEs do not have huge financial and other resources to quickly adopt the international best practices in accounting.

The new provision will enable the Government to provide exemptions to SMEs in adhering to global accounting standards, Mr Roy said.

Significantly, the new Bill also proposes that auditors need to comply with auditing standards notified under the Bill.

“This will enable fast action against auditors guilty of violating the norms,” Mr Dutta said.

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NO MAILS FOR REFUNDS ISSUED FROM INCOME TAX DEPARTMENT

9:40 AM By Livemail

Information has been received from several quarters that people are receiving electronic mails informing them of their income-tax refunds and seeking their credit card details. The e-mail is sent from the following or similar mailing addresses.
or cvhfus@accounts.net

  It is clarified that the Income Tax Department does not send e-mails regarding refunds and doses not seek any information regarding credit cards of taxpayers.

  Taxpayers are, therefore, cautioned that they should not respond to such mails and if they do so it would be at their risk and responsibility.

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ELECTRICITY TRANSMISSION AS SUPPORT SERVICES FOR BUSINESS OR COMMERCE

9:38 AM By Livemail

Service tax was  imposed on support services for business or commerce
by the Finance Act, 2006 with effect from 1st May, 2006 (Notification
No. 15/2006-ST dated 25.04.2006 refers). The gross amount charged by
service provider to a person in relation to such taxable services is
chargeable to service tax.

Meaning of Support Services of Business or Commerce (Section 65(104c)

Section 65(104c) (as inserted by Finance Act, 2006) defines 'support
services of business or commerce' as under -

"support services of business or commerce" means services provided in
relation to business or commerce and includes evaluation of
prospective customers, telemarketing, processing of purchase orders
and fulfilment services, information and tracking of delivery
schedules, managing distribution and logistics, customer relationship
management services, accounting and processing of transactions,
operational assistance for marketing, formulation of customer service
and pricing policies, infrastructural support services and other
transaction processing.

Explanation.— For the purposes of this clause, the expression
"infrastructural support services" includes providing office along
with office utilities, lounge, reception with competent personnel to
handle messages, secretarial services, internet and telecom
facilities, pantry and security;

Support services of business or commerce means services provided in
relation to business or commerce and includes evaluation of
prospective customers, telemarketing, processing of purchase orders
and fulfilment services, information and tracking of delivery
schedules, managing distribution and logistics, customer relationship
management services, accounting and processing of transactions,
operational assistance for marketing, formulation of customer service
and pricing policies, infrastructural support services and other
transaction processing.

Business support services are different from business auxiliary
services as the latter are provided on behalf of a person. Support
services are provided to the service receiver.

The aforesaid definition is an inclusive definition and has two parts.
First, services in relation to business or commerce, and two, it
includes host of services i.e., evaluation of prospective customers,
telemarketing etc. the various services which are included are as
follows -

    (a) evaluation of prospective customers

    (b) telemarketing

   (c) processing of purchase orders and fulfilment services

    (d) information and tracking of delivery schedules

    (e) managing distribution and logistics

    (f) customer relationship management services

    (g) accounting and processing of various transactions

    (h) operational assistance for marketing

    (i) formulation of customer service and pricing policies

    (j) infrastructure support services and other transaction
processing services.

The first part of the definition itself is very wide which otherwise
covers all that is mentioned in the inclusive part. CBEC has not
clarified on the scope of business and commerce which implies that all
services which support business or commerce shall get covered. So far
as second inclusive part is concerned, doctrine of ejusdis generis
should apply so much so that the services should be same as they flow
from the other services mentioned in the definition.

In M.P. Power Transmission Co. Ltd. v CCE [2008 -TMI - 4449 - CESTAT,
Delhi], assessee was a state government corporation engaged in
arranging of transmission of electricity with minimum loss and at
appropriate voltage to end consumer from transom and Discoms. The
Tribunal held that  assessee engaged in arranging transmission of
electricity with minimum loss and at appropriate voltage to end
consumer from Transco and Discoms, is providing support services
liable to service tax hence ordered to pre-deposit a sum of Rs 5
crores as against demand of Rs 67.28 crores.

Support services of business or commerce means services provided in
relation to business or commerce and includes evaluation of
prospective customers, telemarketing, processing of purchase orders
and fulfillment services, information and tracking of delivery
schedules, managing distribution and logistics, customer relationship
management services, accounting and processing of transactions,
operational assistance for marketing, formulation of customer service
and pricing policies, infrastructural support services and other
transaction processing.

The first part of the definition itself is very wide which otherwise
covers all that is mentioned in the inclusive part. CBEC has not
clarified on the scope of business and commerce which implies that all
services which support business or commerce shall get covered. So far
as second inclusive part is concerned, doctrine of ejusdis generis
should apply so much so that the services should be same as they flow
from the other services mentioned in the definition.

Section 65(105)(zzzq) defines taxable service  to mean any services
provided or to be provided to any person, by any other person, in
relation to support services of business or commerce, in any manner.

Taxable services would cover both services provided and to be provided
and must be those services which are in relation to support services
of business or commerce. Such services could be provided in any
manner. According to the definition, taxable services generally cover
all outsourced activities or services in relation to business or
commerce (other than those covered under section 65(19) as business
auxiliary services) and infrastructure support services like those in
relation to business centre etc.

There may be some overlapping of services between business auxiliary
services and support services of business or commerce as some of the
services were hitherto being taxed as business auxiliary services such
as telemarketing, back office transaction processing, customer
evaluation etc. While business auxiliary service specifically covers
some services, services under this category are much wide as it would
cover any service which supports business or commerce. This implies
that services availed for personal or domestic purpose will not be
covered.

Where as there was no dispute for providing there services, so as to
ensure that transmission losses were minimized and power of suitable
voltage reach the distribution point, owned by discoms and then
ultimately sold to customers, it is also a fact that unlike other
goods, electricity can not be stored and is to be instantly
transmitted to various points for distribution.

So far as scope of taxable service and definition of support services
is concerned, the expressions ;in relation to' and 'in any manner' are
very  important. The words, 'in any manner' signify the legislative
intent to include services provided by service provider in any manner.
'In relation to' widens the scope and dimension of service. The
Tribunal relied upon apex court's judgment on 'in relation to' in
Doypack  Systems Pvt Ltd v Union of India (1988) 36 ELT 201 (SC).

The service provided had a close nexus with Transco and Discoms and
without the support of subject service provided by assesse, the sale
of electricity could not be completed. In conclusion, it was observed
that it is irresistible that the assessee was providing support
services and was thus liable to pay service tax.

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Calculators

9:33 AM By Livemail

Type of CalculatorsExcel Format
EMI Calculator with EMI Schedule 1EMI 1
EMI Calculator with EMI Schedule 2EMI 2
Automatic Construction Cost CalculatorConstruction Cost Calculator
Comparison of new AAS No. with old No.AAS Calculator
ROC Fees Calculator 1ROC Fees
ROC Fees Calculator 2ROC Fees
National Saving Certificate (NSC) Interest Calculator -1Interest Calculator 1
National Saving Certificate (NSC) Interest Calculator -2Interest Calculator 2
National Saving Certificate (NSC) Interest Calculator -3Interest Calculator 3
Day Count CalculatorDay Count
Forms used for Income Tax purpose – calculatorIT
Cost of Inflation Index – calculatorInflation Index
Kishan Vikas Patra (KVP) interest calculatorKVP Interest
Post Office Recurring Deposit (R.D.) Interest CalculatorPost Office RD
Wealth Tax CalculatorWealth Tax
Deferred tax Assets (DTA) and Liabilities (DTL) calculatorDeffered Tax
Short Term Capital Gain (STCG) CalculatorSTCG
Fund Flow Statement CalculatorFund Flow
Service Tax CalculatorService Tax
Duty CalculatorDuty
Life Time CalendarYearly Calendar
VAT CalculatorVAT
Interest U/s. 234A, 234B,234C of the Income Tax ActInterest
Due Date Under Various Act with ReminderDue Date
Income Tax Calculator for A.Y. 2008-09 & 2009-10Tax
Income Tax Calculator for A.Y. 2009-10Income Tax
Income Tax Calculator for A.Y. 2009-10 for Salaried PersonIncome Tax
Income Tax Calculator for A.Y. 2009-10Income Tax
HRA & Home Loan calculatorHRA & Home Loan
TDS CalculatorTDS
TDS on Salary CalculatorTDS on Salary

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ICAI Mulls Sector-Specific Accounting Norms

9:27 AM By Livemail

The Institute of Chartered Accountants of India (ICAI) is planning to introduce sector-specific accounting standards to bring in more transparency in handling corporate accounts. ICAI's Committee for Members in the Industry (CMII) has already formed three groups — in sectors such as insurance, retail and hospitality — and is in the process of forming another 19 groups representing various industrial segments to recommend such additional standards.

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NACAS likely to get single authority for auditing, accounting standards

9:23 AM By Livemail

The Government is planning to strengthen the National Advisory Committee on Accounting Standards (NACAS), a move that will make the Institute of Chartered Accountants of India (ICAI) report to NACAS. For this, it will hand over the supervisory role of both accounting and auditing standards to NACAS.

Towards this purpose, NACAS would be renamed the National Advisory Committee on Accounting and Auditing Standards (NACAAS) to make it the overall authority on accounting and auditing, official sources told.. NACAAS will also advsce the Government in prescribing the policies on accounting and auditing. These changes have been incorporated in the new Companies Bill. NACAAS will comprise representatives from regulatory bodies such as ICAI, SEBI, the RBI, ICWAI, ICSI, IA&AS, the Corporate Affairs Ministry, the CBDT, industry chambers and the Comptroller and Auditor-General. Accounting standards are regarding the contents of the financial statement of a company. Auditing standards include audit evidence, materiality and checks on inventories. Currently, ICAI draws up the accounting standards.

These standards are in turn vetted by NACAS, which suggests changes, if needed. The changes in turn are incorporated by ICAI. The accounting standards are later notified by the Ministry under the advice of NACAS. Soon, the same process will be carried out regarding auditing standards. The chairperson of NACAAS would be an expert in accountancy, business administration, business law, finance and economics. The Government will also have powers to nominate a professor on accountancy, business management or finance from a recognised university to NACAAS.

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ICAI has asked chartered accountants to help the process of scrutinising the balance sheet of around 9 lakh registered companies.

Tuesday, October 6, 2009 10:14 AM By Livemail


As the ministry of corporate affairs (MCA) gears up for the process of scrutinising the balance sheet of around 9 lakh registered companies in the country, the Institute of Chartered Accountants of India (ICAI) has asked chartered accountants to volunteer for this.

“We have put this up on our website and have asked our chartered accountants who wish to render their services in this regard to contact us,” said Uttam Prakash Agarwal, president, ICAI. With the Registrar of Companies (RoC) finding it difficult to conduct a detailed examination of accounts of the companies, the corporate affairs ministry has decided to outsource the work of scrutinising the accounts of both listed and unlisted companies also to cost & work accountants and company secretaries.

“The government’s decision to scrutinise the balance sheet of the companies is a very good system as there would be double-verification of the company’s accounts, which would help in detection of corporate frauds,” Agarwal told FE. The government decision of outsourcing this work of scrutinising the companies accounts would be in the interest of the chartered accountants as this would mean more CA services being used and generation of more employment, Agarwal added. The registrar of a company has two functions registry function and regulatory function. The regulatory function involves keeping a check on the companies and making sure that they are not violating the Companies Act like if a company fails to file its annual returns to the RoC then the latter has the regulatory authority to issue them a notice and file a case against them in the local court. An MCA official told FE, “At present, there are 20 RoCs all across India and they have to face the problem of work overload since there is no standardised operating procedure and optimal manpower utilisation. Besides this, a common problem that is often faced in case of different RoCs is that many companies end up having the same name. Outsourcing would make the work easier for the government”.

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Canadian businesses granted choice between new “made in Canada” accounting standards or IFRS

Sunday, October 4, 2009 8:51 AM By Livemail

The Accounting Standards Board has approved the final accounting standards for private enterprises in Canada, the AcSB said Wednesday.

The board establishes financial accounting and reporting standards for use by Canadian companies and not-for-profit organizations. 

The new standards will be issued by the end of the year and will be available for 2009 reporting for entities that choose to adopt them early, the AcSB says.

The new standards give Canadian businesses the ability to choose to adopt new “made in Canada” standards or International Financial Reporting Standards (IFRS). Private enterprises must decide which of the sets of standards to adopt for years beginning on or after Jan. 1, 2011.

Private enterprise standards were developed from a lengthy consultation process that ensured that private enterprises of all sizes across Canada were able to provide input into the standard-setting process, the AcSB says.

According to the accounting standards body, the new standards provide businesses, “with standards that are robust, yet more straightforward to implement.”

Notable changes include simplification of recognition, measurement and presentation in areas that were identified as being overly complex, particularly accounting for financial instruments. The simplified accounting requires less use of fair values. The new standards also significantly reduce the burden of disclosure requirements, the AcSB says.

“As part of its overall strategy, the Accounting Standards Board concluded that when it comes to financial reporting standards, one-size does not fit all,” says Tricia O’Malley, chair of the AcSB. “We are pleased to have completed the project and given Canadian private enterprises the standards that they and their users need to function effectively and efficiently.”

“In analyzing the needs of private enterprises and addressing their needs and concerns, the Accounting Standards Board was careful not to make changes simply for the sake of change,” says Brian Drayton, AcSB member and chair of the private enterprise advisory committee. 

“Rather, the AcSB took the opportunity to address specific areas that were brought to our attention, such as disclosures, that unnecessarily overloaded preparers without providing benefit to users,” Drayton says.

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Properly formatted VAT Audit Report

8:05 AM By Livemail


New improved and properly formatted version of Form 41A issued by the sales tax department, so that you can directly fill it up like a 3CD report.
The report can be downloaded from here:

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Suggested Answers for CA Final (New) Course – June 2009

8:04 AM By Livemail , In , , , ,


The answers, as suggested by the institute for CA Final (new) Course, June 2009 attempt. A must for all final students.
Click on the relevant subject to download the suggested answers.
Group I
PAPER – 1 : FINANCIAL REPORTING
PAPER – 2 : STRATEGIC FINANCIAL MANAGEMENT
PAPER – 3 : ADVANCED AUDITING & PROFESSIONAL ETHICS
PAPER – 4 : CORPORATE AND ALLIED LAWS
Group II
PAPER – 5 : ADVANCED MANAGEMENT ACCOUNTING
PAPER – 6 : INFORMATION SYSTEMS CONTROL AND AUDIT
PAPER – 7 : DIRECT TAX LAWS
PAPER – 8 : INDIRECT TAX LAWS

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Suggested answers for CA PCC-June 09

8:03 AM By Livemail , In , , , ,


Group I
Group II

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Relevant Updates and Case Laws (IDTL) for CA Final Exams

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Download Direct & Indirect Taxation Problems & Solutions

Friday, October 2, 2009 8:26 AM By Livemail , In ,

PROBLEMS and SOLUTIONS ON DIRECT and INDIRECT TAXATION 


Click To download :

 ADVANCE TAX.

AGRICULTURAL INCOME AND TAX LIABILITY.


ASSESSMENT OF AOP or BOI.


ASSESSMENT OF CHARITABLE TRUSTS.


ASSESSMENT OF COMPANIES.
      
ASSESSMENT OF COOPERATIVE SOCIETIES

ASSESSMENT OF FRINGE BENEFIT TAX.

ASSESSMENT OF HUF

ASSESSMENT PROCEDURE.

COMPUTATION OF TAXABLE WEALTH.

DEDUCTIONS FROM GROSS TOTAL INCOME.

DOUBLE TAXATION RELIEF.

INCOME EXEMPT FROM TAX.

INCOME FROM BUSINESS OR PROFESSION.

INCOME FROM HOUSE PROPERTY.

INCOME FROM OTHER SOURCES.

INCOME FROM SALARIES.

INCOME OF OTHER PERSONS INCLUDED IN ASSESSEE'S TOTAL INCOME.

INCOME TAX AUTHORITIES.

INTEREST.

RESIDENTIAL STATUS ; INCIDENCE OF TAX.

SET OFF ; CARRY FORWARD OF LOSSES.

TDS.

VALUATION ; DUTY LIABILITY FOR CUSTOMS.

REFUNDS. 

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