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C&AG recommended referring the cases of professional negligence to ICAI:Serious issued raised by CAG: icai must look into it seriously

NEW DELHI, DEC 21, 2014: CAG’s Performance Audit Report No. 32 of 2014 on ‘Appreciation of Third Party (Chartered Accountant) Reporting in Assessment Proceedings’ was presented in the Parliament on Frioday. The CAG carried out a Performance Audit on ‘Appreciation of Third Party (Chartered Accountant) Reporting in Assessment Proceedings’ during January to May 2014 covering all cases of scrutiny assessments, appeal and rectification, completed during the period of financial years 2010-11 to 2012-13 and upto May 2014 within the selected units. Findings of performance audit were reported to the Central Board of Direct Taxes (CBDT) in September 2014 and results … Read more

Proposed GST- The Game Changer for professionals- Opportunity


GST is a consumption based levy. Destination principle would be applicable in normal course of business to business [B2B] other than for few services and business to consumer.[ B2C] GST is propose

GST to be in place by April 2016- maybe a bit optimistic.

In an ideal GST, all the credit of taxes paid on purchase of inputs, input services and capital goods are seamlessly allowed for set-off against the tax payable on subsequent sale of goods that are either sold as such or sold upon conversion, or in the context of services, are supplied.… Read more

LS clears Companies  (Amendment) Bill Govt periodically


New Delhi, 17 December

The Lok Sabha on Wednesday cleared the Companies (Amendment) Bill, which seeks to ease related- party transaction norms and ensure severe punishment for those raising illegal deposits from the public. The amendments also propose restricting hearings by special courts to serious offences.

The Bill, containing 14 amendments, was passed by voice vote. This followed the Congress raising objections to the Bill, demanding it be referred to a standing committee.

The demand was, however, turned down.

Replying to a debate on the Bill, Corporate Affairs Minister Arun Jaitley said the amendments spanned four types of … Read more

User fee likely for filing GST returns

New Delhi, 17 December

In a first for the Indian tax- filing system, the country’s 6.5 million dealers might have to pay a nominal user charge when they file their returns on a unified portal once the unified Goods and Service Tax ( GST) comes into force.

This concept is being considered by Goods and Service Tax Network ( GSTN), the quasigovernment company that has been mandated to build and operationalise the GST Common Portal, to pay for the exceptionally heavy technology infrastructure involved in setting up an integrated network for India’s most ambitious indirect tax reform.

The central and … Read more

GST Bill ready to be tabled after Cabinet approval


New Delhi, 17 December

After a prolonged wait, the Cabinet on Wednesday approved the Constitutional Amendment Bill on the Goods and Service Tax (GST), paving the way for the legislation to be introduced in the current winter session of Parliament, which will end on December 23.

The Bill is learnt to have sought to include petroleum within GST, but the Centre would be allowed to impose excise duty on it and the states value- added tax ( VAT) for initial years.

Petroleum was one of the contentious issues between the Centre and the states and had delayed the … Read more

Bombay HC says lawyers, law firms must pay service tax to biz clients


The Bombay High Court has upheld the levy of service tax on services provided by lawyers and law firms, to their business clients. Thus, business entities who hire lawyers and law firms will have to continue to pay service tax and also deposit it with the government.

Since July 2012, a ‘reverse charge mechanism’ was introduced. Business entities, with a turnover of Rs. 10 lakh or more, have to pay service tax and also deposit the same against the legal fees paid to individual lawyers or law firms. Smaller business entities and individuals do not have to pay service … Read more

Promoter becoming a public shareholder: SEBI spells out reclassification norms


The Securities and Exchange Board of India, which has spelt out the conditions under which promoters of companies may be reclassified as public shareholders, has provided five situations which may result in a request for reclassification.


Acquisition by another

The first is that of promoters who seek reclassification after the company has been acquired by another entity.

The promoters request the company to terminate the shareholders agreement and want to classify themselves as public shareholders post termination of shareholding agreement. Then, informing the developments to stock exchanges, besides giving up their special rights and privileges by … Read more

Task force to submit suggestions in 45 days


The Government will revisit the food safety Act to make it more stringent to check growing instances of adulteration and contamination.

“Two days ago, we set up a task force, which will submit its suggestions in 45 days, which will be then be put up in public domain for inviting comments. Imported food items will also be covered by this,” Health Minister JP Nadda informed the Lok Sabha on Monday. Replying to a calling by PV Midhun Reddy of YSR Cong and Satyapal Singh of BJP, Nadda admitted that food adulteration and contamination were one reason … Read more

SEBI might review delisting rules


Mumbai, 15 December

The Securities and Exchange Board of India ( Sebi) could take are- look at the recently- introduced delisting regulations, its chief hinted on Monday.

“Many have problems with one aspect of the regulation… We will see how it pans out. If required, we will have a re- look. But first see how it pans out,” said U K Sinha, chairman, in his speech at the Association of Investment Bankers’ summit.

A clause in the new framework mandating participation from at least 25 per cent of public shareholders for the success of a delisting bid has … Read more

Repayment rules for core


Mumbai, 15 December

As a step to ease the pressure on stressed assets, the Reserve Bank of India has allowed lenders to restructure existing loans above 500 crore to infrastructure and core industries’ projects.

Banks and financial institutions will have an option to periodically refinance such loans. Bankers said the revised norms will provide relief to completed projects which have started commercial operations in the said sectors. Many of these were finding it difficult to repay due to shortfall in cash flows and cost over runs.

This leeway is expected to help ensure the long- term viability of … Read more

GST Bill set to be tabled as states’ key demands met

New Delhi, 15 December

The Constitution amendment Bill on a national goods and services tax ( GST) is likely to be tabled in the current session of Parliament, after the Centre agreed on two main demands of the states, on petroleum products and compensation for revenue loss after the new indirect tax system is introduced.

After securing Congress support for a rise in the foreign investment cap in the insurance Bill, this is another key reform Bill where the Centre has managed a broad consensus.

The Bill may address the states’ demand of keeping petroleum products outside GST … Read more

Procedure Resignation- Director CA- 2013

Section 168, the Companies Act, 2013: Resignation of directors Corresponding sections of the Companies Act, 1956: None this is a newly introduced section.



The Director intending to resign shall send notice in writing to the Company. The resignation of a director shall take effect from:
The date on which the Notice Is Received by the company or
The Date, If Any, Specified by the Director in the notice, whichever is later.
The director who has resigned shall be liable even after his resignation for the offences which occurred during his tenure.
The … Read more

Corporate Social Responsibility

Corporate Social Responsibility (CSR) is the human face of business and it recognises the solemn duty the business owes to the society. In a way it stands for the external conscience of the corporate sector based on a noble value system. This is one duty the business is expected to do and it usually does on a voluntary basis.

Government has incorporated the essence of this social compulsion into a legally binding commitment in the newly enacted The Companies Act, 2013. Sec 135 and Schedule VII of the new Companies Act 2013 contains the enabling provisions in this regard. The … Read more