Section 50C does not apply to transfer of tenancy/ leasehold rights

DCIT vs. Tejinder Singh (ITAT Kolkota)

Assessee was a lessee in the property which was sold by the KSCT; there is no dispute on this aspect of the matter. Yet, the Assessing Officer has treated the assessee a seller of property appar

Incomplete or under Construction Building not liable to wealth tax

Word “building” has to be interpreted to mean a completely built structure having a roof, dwelling place, walls, doors, windows, electric and sanitary fittings etc. If one or more such components are lacking, then it cannot possibly be said that the building is a complete structure for the purpose of section 2(ea) of the Act. A resi

SEBI Order on Synchronised Trades

Last week, SEBI issued an order involving synchronised trading in the scrips of Adani Exports Ltd. The case involves a sharp spike in the price of the shares, more than doubling during a one-month period in November-December 2003. SEBI’s investigation revealed possible synchronised reversal of trades

Investors should not deal with unauthorized Portfolio Management Services providers

It has come to the notice of SEBI that some entities are soliciting the general public to entrust their funds and securities to them and offering portfolio management and advisory services without obtaining certificate of registration from SEBI to act as a portfolio manager. Posted in News | No Comments »

Registration of Companies or LLPs which have one of their objects is to carry on the profession of Chartered Accountant, Cost Accountant, Architect, Company Secretary etc.

General Circular No. 2/2012 Dated the 1st March, 2012 Subject: Registration of Companies or LLPs which have one of their objects is to carry on

How to know ownership details of a vehicle through mobile

We can now have the ownership details of a vehicle using the Vehicle registration number instantly through SMS. Send a SMS to 092123 57123 typing vahan <space> <regn number without space> You would get the following information instantly The Number of Ownership sequence, Owner name, Type of the vehicle, Make of the Vehicle, Registration fitness validity, the road tax validity

SEBI Clarification on Offer For Sale of Shares by Promoters through the Stock Exchange Mechanism

CIRCULAR No. MRD/DP/8/2012, dated 27-2-2012 1. This has reference to SEBI circular No. MRD/DP/05/2012, dated February 1, 2012 and MRD/DP/07/2012, dated February 23, 2012, on the subject. <

Notification for Amendment to Rule 52, 53 and 54 of MVAT Rules

FINANCE DEPARTMENT Mantralaya, Mumbai 400 032, dated IS th February 2012 NOTIFICATION

Know Your LIC Policy Status on Mobile

If you are holding a LIC policy, you might want to check the status of the same and may also be looking to know other information on the same i.e. Installment premium under policy, If policy is lapsed Revival amount payable, Amount of Bonus vested, Amount available as Loan, Details of Nomination etc.. The good news is that now, you can

Circular for Mutual Funds – Distributor Due Diligence, Clarification to Regulation 24 of SEBI (Mutual Funds) Regulations, 1996

Circular No. Cir/IMD/DF/7/2012 , Dated- February 28, 2012 All Mutual Funds/ Asset Management Companies (AMCs) Sir/Madam, Sub: Posted in Posts | No Comments »

Cabinet nod for tougher punishment

Traffic rules’ violators — habitual offenders in particular — should, henceforth, be ready to cough up hefty fines and undergo a tougher jail term for breaking the law. The Union Cabinet on Thursday approved a manifold increase in penalties for traffic violations under the proposed amendment to the Motor Vehicle Act, which is likely

Tribal rights Act tied up in red tape

Even legislation championed by Sonia Gandhi can get stuck in bureaucratic limbo—witness the fate of amendments that needed to be made quickly to a law that seeks to safeguard the rights of tribals. The combined backing of the National Advisory Council (NAC), headed by Congr

How to save long-term capital gains tax

By investing the profit you make from selling a house, you can avail tax exemption. Here are the options that can help you get the tax benefit

Bindisha Sarang

If you earn anything, it’s minus taxes; if you buy anything it’s plus taxes,” goes a witty one-liner, which is quite true for all practical purposes. Like most other earnings, when you make a capital gains

Screening Cos Rake It In As India Inc Tightens Vigil

EAGLE EYES: Employee verification firms grow by up to 40% year on year as industry wakes up to fudging in job applications and looks to maintain stringent global standards of hiring J SRIKANT NEW DELHI Corporate India now has its own Private Eye.Faced with increasing instances of fudged data from job applicants,companies are

ICICI revises savings account charges

India’s largest private sector lender, ICICI Bank, has increased service charges on savings bank accounts and has also imposed a fee on mobile transfers. It peer, HDFC Bank, had also introduced a new set of charges in January. Starting April, ICICI Bank will charge a penalty of Rs 350 for non-maintenance of a minimum monthly balance. The bank earlier charged Rs 750 in a quarter. Customers in

No Income Tax Scrutiny of Senior Citizens and Small Tax payers Having Gross Income less than 10 Lakh

The Income Tax Department today said that tax returns filed by senior citizens above 60 years and small taxpayers with gross total income of less than Rs 10 lakh will not be scrutinised in a routine manner. “It has been decided that during the financial year 2011-12, cases of senior citizens and small taxpayers, filing income-tax returns in ITR-1 and ITR-2 will be subjected to scrutiny only w

First woman SC judge again; SH Kapadia appointed CJI

Supreme Court judge Sarosh Homi Kapadia will take over as Chief Justice of India (CJI) from outgoing CJI K G Balakrishnan on 12 May 2010, while the Supreme Court will have its first female judge in almost four years, the government of India announced today. The government formally announced the appointment of Kapadi

Being socially sensible

Don’t forget that Facebook and Twitter are public platforms. You need to know your company’s policy on these—and think before you tweet People have been up in arms against Kapil Sibal, the Union minister for communications and information technology, after his suggestion that sites such as Google, Facebook and Twitter need to screen for “offensive” content. But in offices this kind

Should you buy a petrol, diesel, LPG or CNG car?

If you are buying a car for the long term, diesel, CNG and LPG cars will be cheaper. But if you change your car every 2-3 years, petrol cars will be cheaper than diesel or LPG

Abhishek Anand

For the last three years, petrol prices have been consistently rising. And since the petrol prices deregulation in June 2010, prices have risen by as much as Rs18.49, a 38.57% incre

Land Acquisition Bill to get delayed further

The union government, it seems, will have to wait a little longer for the crucial Land Acquisition and Rehabilitation and Resettlement Bill which was expected to be tabled in Parliament during the upcoming Budget Session. The standing committee on rural development, which is examining the proposed legislation, is set to inform the Centre that it would miss the March 12 deadline. Also, it would

How Ajay Relan, Renuka Ramnath & Subbu Subramaniam are now running PE fund for themselves

In a brutal market for private equity, three individuals have taken the leap from running a PE fund for someone else to running it for themselves. Ajay Relan

Indian CEOs inching closer to global salaries

The average salary of Indian chief executive officers (CEOs) is inching closer to their global counterparts “On a purchasing power parity (PPP) basis, salaries of Indian CEOs are beginning to increasingly converge with global CEOs. On an average, an Indian CEO gets a salary of Rs 5 crore. On a PPP basis, the salary of a CEO in US would

Is Kissing Illegal in India?

It isn’t every day that Indian men in their sixties openly discuss which sex acts are “natural” and which ones aren’t. But as the appeals against a 2009 Delhi High Court judgment that marked a huge step forward for gay rights proceed before the Supreme Court, that’s just what is happening.

Posted in Uncategorized | No Comments »

Breaking: ICICI Bank GC Pramod Rao resigns, may start up law firm

ICICI Bank legal HQ, BKC Exclusive: ICICI Bank general counsel Pramod Rao is due to leave the bank by April end to enter private practice, according to sources close to the company. He will be succeeded by Sanker Parameswaran. Sources close to Rao told Legally India that he was planning to go into legal private pract

Now, women can retain their maiden name

MUMBAI: Women in Maharashtra have another reason to celebrate as International Women's Day approaches.It is now perfectly legal for a woman to retain her maiden name after marriage. The Bombay high court recently amended a crucial rule under the Family Courts Act to prevent a woman from being compelled to file any mar

Activists hail law on wifes choice of name

Mumbai: Flavia Agnes of the womens rights activist group Majlis,sees the amendment that says women are not obliged to change their maiden name after marriage,as a progressive new addition to the law for women.Majlis efforts ensured that a woman can continue to use her maiden name and surname if she so desires after marriage.She is not b

DLF to outsource large portion of construction work to L&T, Shapoorji Pallonji

India's biggest builder DLF has decided to outsource a large portion of its construction work to companies such as L& and

Budget 2012: Tax rebate on 3-year bank FDs likely

(Budget 2012: Tax rebate on 3-year bank FDs likely) NEW DELHI: Following concerted pressure from banks, the finance ministry has agreed to consider a proposal to reduce the lock-in period for bank deposit eligible for tax rebate to three years from five years, even though it goes against the spirit of the Direct Tax Code. If this proposal finds it way into next month's budget, it will make b

India’s biggest law firm prepares for next stage of evolution

Majority owned and managed by family, the company is opening up ownership and changing management structure India’s biggest law firm Amarchand & Mangaldas & Suresh A. Shroff & Co. plans to get even bigger in the next five years by doubling in size to about 1,000 lawyers. But the firm will still run like a bicycle, the analogy that the firm’s joint managing partners —brothers C

New seva kendras to help end your passport woes

Mumbai: In a fortnight from now, obtaining a passport is all set to get a tad easier. A single visit to a Passport Seva Kendra will be enough for applicants to know whether they are eligible for a passport or not. As there would be no follow-up visits required, an agent may be required to only file applications online. Citizens will no longer be required to carry passport-size photographs and pho

Company directors face imprisonment over non-payment of provident fund

Three directors of a public limited company will have to go to prison for six months besides paying up a penalty of Rs 10,000 each for not paying provident fund to senior executives of the company. The complainant is a 60-year-old Goregaon resident, Subodh Gokhale, who resigned as vice-president of Gujarat Themis Biosyn Limited, a company headquartered in Vapi, a town in Gujarat. The order c

Real estate rally loses steam

Realty Index which had gained 50% in 2012, fell 16% in a week
After a sharp recovery in the first one-and-a-half months of the calendar year — the Bombay Stock Exchange (BSE) Realty Index gained over 50 per cent, real estate stocks seem to have lost steam. The in

Builders feel investor heat, bite buyback bullet

Some are funding it from internal accruals, while many want to avoid the put option
Thursday was a big payday for Deutsche Bank (DB), which ended its tumultuous relationship with the Mumbai-based Lodha Group. For DB, the exit was a windfall — a neat 55 per cent profit in four years. Such buybacks are risin

New Law in Budget to Mark Shift to Uniform Stamp Rate for All Fin Deals

The finance ministry, in a big reform initiative is planning to introduce a comprehensive legislation to overhaul the stamp duty regime in the country that will lead to a uniform rate for all financial transactions. The legislation has gone to law ministry for vetting... We are looking at bringing it in the budget session, said a finance ministry official. For most securities transactions, both in

Only Death Certificate of lender is not sufficient to to prove the identity of the lender, genuineness of the transaction and creditworthiness of the lender

Manishkumar & Co. Vs. ITO( ITAT Ahmedabad)- The first ground relates to addition of Rs.13,77,000/- made u/s 68 by the AO. During the assessment proceedings the assessee was asked by the AO to prove the identity of the lender, genuineness of the transaction and creditworthiness of the lender in respect of the loan of Rs.13,77,000/- shown in the name of Shri Madanlal J. Panjabi. The assessee was onl

SEBI’s FAQs on Takeover Regulations

SEBI recently put out a set of FAQs relating to the Takeover Regulations, 2011 that came into effect on October 22, 2011. While a substantial part of the FAQs relate to either explanation of matters or elaboration of certain aspects of process and mechanics, they also address substantive issues on a few counts. Had earlier discussed the issue as to whether hostile takeovers are permissible und

Companies Bill, 2011: Independent Directors

Corporate governance generally places a fair amount of emphasis on board independence, and it is no different in India. Having a minimum number of independent directors (IDs) on the board is said to enhance monitoring of the management and promoters, and thereby protect the interests of the public shareholders. The Companies Bill, 2011 takes the concept of board independence to another level altog

Companies Bill, 2011: Duties of Directors

The Companies Act, 1956 does not contain any specific provision that generally governs the duties of directors. The duties are instead governed by common law, which judges are required to apply to a given set of facts and circumstances. Under common law, there are two broad sets of director duties: (i) duty to act with skill, care and diligence, and (ii) fiduciary duties (to act in the interests o

Companies Bill, 2011: Class Actions

Background In developed markets, one of the key mechanisms used for enforcement of corporate law is shareholder actions against the company or its management for breach of duties and obligations owed under law. Such shareholder actions can be either direct actions for breaches of duties owed to the shareholders directly in which case the remedies will flow to the shareholders, or they can be d

Unlisted Public Companies (Preferential Allotment) Amendment Rules, 2011

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS NOTIFICATION 14th December,2011 G.S.R. (E).- In exercise of the power conferred by sub-section (1A) of section 81, read with section 642, of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules to amend the Unlisted Public Companies (Preferential Allotment) Rules, 2003, namely:- 1. (1) The

Govt clears FDI proposal in broadcast carriage services

Unfazed by the setback to plans for FDI in retail, the government is moving ahead with a proposed hike in the foreign investment cap in different broadcasting services like Direct-to-Home and cable TV networks to a uniform 74%. The Finance Ministry has given its approval to the draft cabinet note circulated by the Industry Ministry for liberalising the sector, sources said. Among different s

SEBI Guidelines for Issue and Listing of Structured Products/ Market Linked Debentures

CIRCULAR No. Cir. /IMD/DF/17/2011 September 28, 2011 Sub: Guidelines for Issue and Listing of Structured Products/ Market Linked Debentures 1. SEBI had prescribed initial and continuous disclosure norms applicable to issue and listing of debt securities through the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 and the Simplified Listing Agreement

Payment made under Franchise & Management Agreement for availing technical know-how, coupled with technical consultancy services, for setting-up new and distinct business could be considered as capital expenditure

Ansal Housing & Construction Ltd. v. DCIT (ITA Nos. 3192/Del/08 & 4595/Del/05 dated 9 Sept 2011 –ITAT Delhi) Assessee had commenced restaurant business during the financial year ending 31.3.2002, relevant to A.Y. 2002-03,. In order to extend the business in the field of hospitality and for operating the restaurant, t entered on 17th August 2000. In terms of that agreement, invoices of Rs. 18,75

Meaning, Formation, Taxation, Membership and Partition of HUF

The Hindu Undivided Family can best be defined as a family that consists of a common ancestor and all his lineal male descendants and their wives and unmarried daughters. The Hindu Undivided Family (HUF) cannot be created by acts of any party. The only exceptions are in the case of an adoption or a marriage when a stranger may become a HUF member. An undivided family, which is a normal condition o

Income Tax deduction on your children’s education u/s. 80C and 80E of the Income Tax Act, 1961

The cost of educating our children is rising consistently. It’s a matter of concern for all of us. One relief is the tax benefit provided for spending on children’s education. The Income Tax Act provides a direct deduction on account of fees paid for the education of dependent children. The act also provides for deduction on account of interest on loans taken for higher education of children.

PAN card Verification procedure and who can avail the facility of verification

Online PAN Verification now extended to Insurance companies To enable eligible Entities verify Permanent Account Numbers (PANs), Income Tax Department (ITD) has authorized National Securities Depository Limited (NSDL) to launch an online PAN verification service for verification of PANs by authorized entities. Entities who can avail of this facility: • Department of Commercial Taxes • Gove

KYC Norms – Letter issued by UIDAI containing details of name, address and Aadhaar number

RBI/2011-12/207 DBOD.AML.BC.No. 36/ 14.01.001/2011-12, Dated- September 28, 2011 Know Your Customer Norms – Letter issued by Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number Please refer to the Government of India Notification No. 14/2010/F.No. 6/2/2007-ES dated December 16, 2010 which recognises the letter issued by Unique Identification

Biyani lauds DIPP for 'clearer' meaning of group company

There is a reason to cheer for the retail sector, especially for companies that have foreign joint ventures. On the much debated FDI in retail, the Department of Industrial Policy & Promotion (DIPP) has come up with a new definition for ‘Group Company’. Talking exclusively to CNBC-TV18, Future Group chief Kishore Biyani is all in praise for this new definition of Group Company. The retail mog

Walmart to invest more if FDI policy is relaxed

At present, India does not allow FDI in multi-brand retail, which has restricted international players to the wholesale cash-and-carry business. In the wholesale business, 100 per cent FDI is allowed, whereas in single brand retail, 51 per cent overseas investment is permitted. While a committee of secretaries has given a green signal to FDI in multi-brand retail, the move requires political app

Oberoi Group Co Looks to Acquire ICICI Venture’s 50% in SoBo Project

The Oberoi Realty group is in talks to buy the 50% stake held by ICICI Venture in a posh residential project in South Mumbai. Oberoi Realty, the group’s publicly-held company, is expected to pay . 300 crore for the stake, giving ICICI Venture a return of just less than six times in seven years. Oberoi, in 2004, teamed up with ICICI Venture to float a joint venture to buy a prime four-acre plot b

Centre may unlock Mumbai’s salt pan land for housing

Offering hope to a city seriously starved of space, Union urban development minister Kumari Selja said, on Tuesday, that the Centre was working on measures to free up acres of salt pan land in the city for housing. “Urbanisation leads to migration and people need to be housed. We have initiated the move considering Mumbai’s scarcity of space,” Selja said. Mumbai has 5,000 acres of salt pan

Maha to undertake re-survey of land records

Maharashtra Government has decided to undertake a re-survey of land records in the state after a gap of more than eight decades. This excercise will be a five-year programme and the most modern technology will be used for the purpose. But the field inquiry and verification will require massive man power, Principal secretary (Revenue) Swadheen Kshatriya said. He said Land settlement commissioner

Understanding Deemed Dividend with Latest Case Laws

Now a days, in a modern organization , there will exist a complicate business structure of holding & subsidiary companies along with closely held companies. There will be routine flow of funds between these companies. It is very important to have the knowledge of provisions of deemed dividend under section 2(22)(e) of the Income tax act, 1961 before making any transaction with the closely held com

Filing of e-return by Legal Heir (LH) using DSC – Revised Process

This is regarding cases where the assessee has expired but a return has to be filed by LH using his DSC. Following process is suggested in above regard : 1. The legal heir (LH) has to get a DSC in his own name. 2. LH is required to make a request by sending a mail to efiling.administrator@incometaxindia.gov.in / efiling@incometaxindia.gov.in mentioning the name, PAN,Date-of-Birth of deceased as

Download book covering direct and indirect tax, accounting standards, LLP, Companies Act, Partnership Act in brief

ICAI has released Book titled ‘Quick Insight on CA profession’ to be circulated to all CA firms/ practitioners for ready reference and it includes matters relating to direct and indirect tax, accounting standards, list of mandatory statements and standards on auditing, peer review, information regarding forms relevant to students, websites, contact e-mail ids of Committees of the Institute and

Summary of recent Rationalisation and Liberalization in External Commercial Borrowing (ECB) Policy

On a review of the current ECB policy, it has been decided, in consultation with the Government of India, to further rationalise and liberalize the ECB Policy as under : (i) The limit for eligible borrowers to avail of ECB under the automatic route per financial year has been enhanced as follows: 1. corporates in real sector-industrial sector-infrastructure sector – USD 750 million or equivale

MCA – Revision in Form No. 5 with effect from the 25th September, 2011

PART – II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, dated the 23rd Sept 2011. G.S.R. ______ (E). – In exercise of the powers conferred by sub-section (1) of section 642 read with section 610B of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Central

Indian Railways introduced new mode of ticket verification

Electronic Reservation Slip (ERS) – The printout in standard specified Performa containing reservation particulars, and instructions for use which cn be used by the passenger along with the relevant authorized Identification, as travel authority for performing the journey. Virtual Reservation Message (VRM) – A screen-shot of the e-ticket displayed through laptops/palmtops/ Mobile phone is ref

External Commercial Borrowings (ECB) Policy – Structured Obligations for infrastructure sector

On a review, it has been decided by RBI , to further liberalise the ECB policy in respect of the infrastructure sector.Direct foreign equity holder (holding minimum 25 per cent of the paid-up capital) and indirect foreign equity holder holding atleast 51% of the paid-up capital, will be permitted to provide credit enhancement for the domestic debt raised by Indian companies engaged exclusively in

External Commercial Borrowings (ECB) from the foreign equity holders

RBI/2011-12/204 A.P. (DIR Series) Circular No. 29, Dated- September 26, 2011 External Commercial Borrowings (ECB) from the foreign equity holders Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Borrowing or lending in foreign exchange) Regulations, 2000, notified vide Notification No. FEMA 3/2000-RB dated May 3, 2000, amended from t

SEBI releases Concept Paper on Regulation of Investment Advisors

CONCEPT PAPER ON REGULATION OF INVESTMENT ADVISORS 1. Background1.1 Section 11 (2)(b) of SEBI Act empowers SEBI to register and regulate working of Investment Advisors and such other intermediaries who may be associated with securities market in any other manner. 1.2 As decided by SEBI Board in its meeting dated March 22, 2007, SEBI had posted a consultative paper on the “Regulation of Investm

How to Apply and ‘Get Certified Copies’ of Documents from ROC

STEPS FOR CERTIFICATION 1. Login on MCA website. 2. Click on the link ‘GET CERTIFIED COPIES’ which is on the left hand side of screen under the head ‘QUICK LINKS’ 3. Enter Company name or CIN no. and search for the company on MCA web portal. 4. It will display the company name and its CIN no. Click on the CIN no. 5. Select the category of documents to be certified from the options giv

Registrar shall not keep any document pending for approval and registration or for taking on record or for rejection or otherwise for more than sixty days

Companies (Amendment) Regulations,2011 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART- II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS Notification New Delhi, 22.09.2011 G.S.R. ——- In exercise of the powers conferred by sub-sections (1), (2), (3), (5) and (8) of section 25 and sub-section (2) of section 609 read with sections 610A, 610B a

FII Investment in Long-Term Corporate Debt in Infrastructure Sector Liberalized

Following the announcement by the Union Finance Minister Shri Pranab Mukherjee in his budget 2011-12, the Government in consultation with the regulators had raised the limit for FII investment in long-term corporate bonds issued by the companies in the infrastructure sector from USD 5 billion to USD 25 billion. This scheme was operationalised vide SEBI circular CIR/IMD/FIIC/5/2011 dated 31st March

Act fast or new property tax system will be passed’

After dilly-dallying on the property tax conversion system, the civic standing committee will now have to act swiftly and take a decision at the earliest or else the proposal will be deemed to be approved. According to the new resolution by the state government, the standing committee should decide on a proposal within 45 days, failing which it will deemed to be cleared by the civic body; the dead

No Takers for Takeover Offers

Historically, the response of public shareholders to takeover offers in Indian companies has been lukewarm. This is primarily due to the fact that the market price of the company’s shares following the takeover announcement tends to be higher than the offer price. However, a report in the Business Line contains a study of recent offers indicating that shareholders who did not exit in the offers

Mandatory audits to beef up building security soon

Soon, all commercial and residential buildings and complexes including five-star hotels and malls will have to get their security preparedness certified by a government-approved agency. The Centre is proposing mandatory audits of such buildings in an attempt to ward off modern-day terrorist threats. A government official privy to the development told FE that the Union home ministry has discussed

Proof of Marriage must while claiming Restitution –SC

Pallavi Bhardwah vs Pratap Chauhan (SC) – Merely coming to court for restitution of conjugal rights is not sufficient rather a definite proof of marriage is must. Pallavi Bhardwah Vs. Pratap Chauhan (Supreme Court) Date of Decision – July 04, 2011 GANGULY, J. 1. Leave granted. 2. Heard learned counsel for the parties and carefully perused the record. 3. This appeal is from a judgment and

CBDT may recommend VDIS scheme to bring back black money outside India

A special voluntary disclosure scheme for bringing back black money stashed away in tax havens abroad may be in the offing. The Central Board of Direct Taxes (CBDT) is understood to be ‘seriously considering’ recommending to the government a scheme on the lines of the Voluntary Disclosure of Income Scheme (VDIS) announced in 1996 to tap funds lying abroad for productive use in India. Sources

FDI in multi-brand retail on the back burner again

Averse to opening another political front, govt won’t take a call before next financial year. The much-awaited multi-brand retail policy allowing foreign direct investment (FDI) in the sector has been put on the back burner. Officials close to the developments say the government is likely to take a call on the matter only in the next financial year. The officials say no “concrete move” has

Participate in workplace festivities

Festivals have become a big part of the office culture nowadays. In the first of the two-part series, Mithila Mehta explores how organisations today celebrate festivals, outlining the professional implications India is a country that loves its festivals and this sentiment extends to the workplace as well. Most organisations celebrate festive occasions with all the rituals and traditions in an ext

Meditation over medicine

Health experts and studies suggest meditation is a great way to keep stress at bay. A low-down on some of the different schools of meditation and techniques One of the “side effects” of being a wealthy nation seems to have been an increase in stress and depression levels. According to the Cross-national Epidemiology of DSM-IV Major Depressive Episode study published in the BMC Medicine journa

Sexual harassment to be a non-bailable offence....Sayli Udas Mankikar

3-month deadline State to review and assess recommendations made by justice Dharmadhikari Acting on the recommendations of one-man justice CS Dharmadhikari committee, the state government will soon make sexual harassment a non-bailable offence. Other recommendations made by justice Dharmadhikari include setting up of a separate space for such victims in the police station, increasing police vigil

Definition of Corruption – The abuse of public power for private benefit – world bank

Shadow of the Law Anti-corruption laws aimed at India Inc have been largely ineffective. But two changes are unfolding: anti-corruption measures are acquiring a global hue and focus is shifting to the supply side of corruption, reports Transparency International, the global civil-society coalition against corruption, had been pursuing National Aluminium Company, a navaratna public sector underta

Recent issue of India Business Law Journal

--- As the dust settles on a display of people power led by anti-corruption activist Anna Hazare, the question to be asked is: will the elected representatives of the people have the courage to usher in change that alters the status quo? The recent rejection by the union cabinet of a Sports Bill does not inspire confidence, as illustrated in a recent issue of India Business Law Journal. à But si

Where Legislature, Executive and the Judiciary differ: Mauritius tax treaty debate with no full stop!

Income tax law is notoriously complex, though the reasons are often misunderstood. Obvious reasons include tax law must address a huge and never-ending range of business transactions and structures. Last month’s Bombay High Court decision in the case of Aditya Birla Nuvo, Tata Industries and New Cingular (popularly called AT&T case) raises an interesting debate. The judgment stipulates that i

Negative lists for Service Tax and Goods Tax

It is one of the rare occasions when a negative policy of the Government has been more welcome than the positive policy. Negative policy here refers to the policy about the Negative List for service tax. Positive Policy refers to the policy of having Positive List of services as we are having now. It is the time to assess the virtue of negative list since the Government has hinted about such a

External Commercial Borrowings – RBI simplifies procedure

RBI/2011 -12/169 A. P. (DIR Series) Circular No. 11, Date -September 07, 2011 External Commercial Borrowings – Simplification of Procedure Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Borrowing or lending in foreign exchange) Regulations, 2000, notified vide Notification No. FEMA 3/2000-RB dated May 3, 2000, amended from time

Immovable properties used primarily for business purpose cannot be taxed under the Wealth Tax Act

CIT Vs Gujarat State Petroleum Corporation Ltd (Ahmedabad High Court)- In the instant case, the assessee-company has let out only a very small portion (i.e. less than 10%) of its office premises to the Directorate of Petroleum. Department of Energy and Petrochemicals and that too under directions from the Government. The main purpose of this arrangement was to have, close liaison with the Director

Renting of Immovable Property – HC extends Stay

Bombay High Court has extended the Stay until 30th September 2011, in the famous renting case – Retailers Association of India and others v Union of India .

Guidelines on NRI Marriages

Ministry of Overseas Indian Affairs had brought out a guidance booklet on “Marriages to Overseas Indians” in 2007 which contains information on safeguards available to women deserted by their NRI spouses, legal remedies available, authorities that can be approached for redressal of grievances etc. A pamphlet entitled “Thinking of the marriage of your daughter with an NRI?” had also been br

Govt formed expert group to study the legislative and regulatory architecture of the Society Registration Act, 1860

Expert Group under the Chairmanship of Shri.K.N.Chaturvedi has been constituted to study the legislative and regulatory architecture of the Society Registration Act, 1860. The report has not yet been received. The minister was replying to a written question whether the Government proposes to review the Societies Registration Act to make the functioning of Non-Governmental Organizations (NGOs)

No company with Baba Ramdev as Director

Press Information Bureau Government of India Ministry of Corporate Affairs Companies of Baba Ramdev The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Lok Sabha that as per latest information available, no company with Baba Ramdev as Director is registered in the country. However, 34 companies are registered in the country with Acharya Balkrishna as

Male Hindu cannot adopt without the consent of wife – SC

Ghisalal vs Dhapubai (D) By Lrs. (SC) - Hindu Adoptions and Maintenance Act, 1956, s. 7 – Adoption by husband -This is clear from Section 7 of the Act. Proviso thereof makes it clear that a male Hindu cannot adopt except with the consent of the wife, unless the wife has completely and finally renounced the world or has ceased to be a Hindu or has been declared by a court of competent jurisdictio

Leveraged Buyout – The new move

Any technique to multiply gains and losses in finance is known as leverage. Buyout means when a firm purchases the controlling interest of another firm to takeover assets or its business operation or both. Therefore, leveraged buyouts mean when and investor acquires a controlling interest in company’s equity, where a considerable amount of purchase value is financed through leverage. The assets

Documents pertaining to the transactions in relation to which PAN to be quoted

All documents pertaining to the transactions in relation to which permanent account number to be quoted for the purpose of clause (c) of sub-section (5) of section 139A. 114B. Every person shall quote his permanent account number in all documents pertaining to the transactions specified below, namely :— (a) sale or purchase of any immovable property valued at five lakh rupees or more; (b) sal

Govt may soon make Registration of Marriages Compulsory

The Supreme Court vide its judgment dated 14.02.2006 in Seema Vs. Ashwani Kumar (AIR 2006 S.C 1158) has directed the State Governments and the Central Government that marriages of all persons who are citizens of India belonging to various religious denomination should be made compulsorily registerable in their respective States where such marriages are solemnized. Giving this information in writt

Finance Minister Releases New Series of Coins in the Denomination of 50 Paise and Rupees 1,2,5 And 10

The Finance Minister Shri Pranab Mukherjee today released a new series of coins with improved design and revised size in the denomination of 50 paise, Rs. 1, 2, 5, and 10. Speaking on the occasion, Shri Mukherjee said that new coins will not only reduce the cost of moving materials but also are of user friendly size and weight. He said that security edging of new series of coins would be good for

E-Ticket on Mobile Phone now Possible through new Web Portal Facilitating Travel by Merely Displaying SMS Without Ticket Printout

Single Window web Interface – “The Indian Railway web Portal” – Launched for the Benefit of Multiple Rail users E-Ticket on Mobile Phone now Possible through new Web Portal Facilitating Travel by Merely Displaying SMS Without Ticket Printout No Travel Agents Allowed to use New Web Portal to Facilitate Convenient Booking by Normal Passengers In a milestone measure undertaken by Ministr

2G Scam – CBI’s stand on Anil Ambani questioned

CBI’s decision not to charge sheet Anil Ambani, Chairman of ADAG Group, in the 2G spectrum scam was today questioned in the Supreme Court by an NGO which alleged that he was making attempts to cover up his involvement by influencing his arrested employees. “The three persons charge sheeted are just the professional employees of the ADAG and are not the beneficiaries of this scam. The real ben

New website for micro, small and medium enterprises – NSIC

Domestic entrepreneurs can now easily access information related to global micro, small and medium enterprises, their products and technologies on the website launched by National Small Industries Corporation (NSIC). Unveiling the website, www.msmeintelligence.com , MSME Secretary Uday Kumar Verma said: “Non availability of experts, high cost of primary data collection and higher cost of databa

SEBI (Merchant Bankers) (Amendment) Regulations, 2011

NOTIFICATION Mumbai, the 5th July, 2011 SECURITIES AND EXCHANGE BOARD OF INDIA (MERCHANT BANKERS) (AMENDMENT) REGULATIONS, 2011 No. LAD-NRO/GN/2011-12/09/21233 - In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to amend the Securities and Exchange Board of India (Merchant Ban

SEBI (Registrars to an Issue and Share Transfer Agents) (Amendment) Regulations, 2011

NOTIFICATION Mumbai, the 5th July, 2011 SECURITIES AND EXCHANGE BOARD OF INDIA (REGISTRARS TO AN ISSUE AND SHARE TRANSFER AGENTS) (AMENDMENT) REGULATIONS, 2011 No. LAD-NRO/GN/2011-12/11/21228 - In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to amend the Securities and Exch

SEBI (Debenture Trustees) (Amendment) Regulations, 2011

NOTIFICATION Mumbai, the 5th July, 2011 SECURITIES AND EXCHANGE BOARD OF INDIA (DEBENTURE TRUSTEES) (AMENDMENT) REGULATIONS, 2011 No. LAD-NRO/GN/2011-12/13/21222 – In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to amend the Securities and Exchange Board of India (Debentur

SEBI (Depositories and Participants (Amendment) Regulations, 2011

NOTIFICATION Mumbai, the 5th July, 2011 SECURITIES AND EXCHANGE BOARD OF INDIA (DEPOSITORIES AND PARTICIPANTS) (AMENDMENT) REGULATIONS, 2011 No. LAD-NRO/GN/2011-12/14/21219 -In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to amend the Securities and Exchange Board of India

GOING FROM GREY TO GLITZ

CM’s Nod Kickstarts Ambitious Rs 2,000-Cr Project To Revamp Bhendi Bazaar Filmmaker Mira Nair shot scenes in Bhendi Bazaar as she explored the city’s darker side in ‘Salaam Bombay’. Anurag Kashyap filmed there for ‘Black Friday’, which was about the 1993 serial blasts. Raj Kumar Gupta shot the gritty ‘Aamir’ there, and Kiran Rao, in her directorial debut ‘Dhobi Ghat’, captured

Govt plans new Act to regulate real estate sector

The state government is set to introduce a Bill on the lines of Centre’s proposed Real Estate Regulation Bill to protect the interest of home buyers. B K Sinha, in-charge Additional Chief Secretary, State Urban Development Department, told The Indian Express that the process of drafting the Bill has begun. On the need for a separate Bill, he said that many provisions of proposed Central model A

Real Estate Bill likely to be tabled in Parliament

NEW DELHI: The Centre is likely to introduce a bill in the monsoon session of Parliament to protect consumers interests against dubious operators in the real estate sector. The Real Estate (Regulation and Development) Bill 2011, prepared by the Housing and Poverty Alleviation ( HUPA )) Ministry intends to promote planned development of real estate and protection of public interest among others

Coalition politics coming in way of 'good land law': Rahul

On the fourth day of his kisan padyatra along the Yamuna Expressway on his way to Aligarh, Congress General Secretary Rahul Gandhi said that the proposed Land Acquisition Bill that would be finally passed would be “friendly” towards farmers. Talking to farmers, Rahul said: “Although the Union Government has coalition partners and different States have different kinds of problems, the prop

TIME TO MEET

It's time to hold the AGM in co-operative societies, says Advocate RAJAN R. HIRANANDANI The time limit for holding the annual general meeting or AGM as it is popularly called for co-operative societies, both in case of residential as well as non-residential buildings is 14th August and thus many societies are now busy preparing for this annual event. Under the Maharashtra Co-operative Societies

1 CRORE PENALTY IN DRAFT BILL : Bldrs to be fined for cheating

Mumbai: Private developers will have to pay a hefty fine if they dupe buyers providing them the incorrect details of the plans. The housing department, which is planning to bring in legislation to regulate the housing sector, has made changes in the draft bill and increase the proposed fine from a maximum of Rs 10 lakh to Rs 1 crore, said Sachin Ahir, minister of state for housing. “In the d

Builders luring buyers with big discounts

Following the slump in the sales of flats, builders have now begun attracting prospective buyers with discounts on their purchases. The discounts are based on the quantum of amount paid by the buyers. Paras Gundecha, president, Maharashtra Chambers of Housing Industry (MCHI) said that discounts are because of low sales. “Some builders are facing a cash crunch because of low sales and hence are

Lower prices come with risks for projects underway

When buying a house, a buyer always has a doubt whether to go in for a ready-for-possession property or book one under construction. Here, we examine issues related to buying a property under construction. The primary advantage of an under-construction property is that it will invariably come cheaper than a ready-for-possession property. Depending on the stage of construction and also the respons

Raigad activists oppose state’s move

Special Economic Zone (SEZ) Virodhi Sangharsh Samiti has upped its ante against the extension granted by the ministry of commerce and industry to Reliance Industries-promoted Mumbai SEZ at Raigad by deciding to relaunch its agitation against it. HT had reported on June 22 that the SEZ, which is spread across 5,000 hectares, had been granted an extension by the ministry's Board of Approval (BOA) t

Land records to be just a click away by month-end

There is good news for all those who have to make rounds of the office of the patwaris and tehsildars to get either documents of property or for other work related to the Revenue Department. The State Department of Revenue is in the last leg of computerisation of land records of 12,000 villages of the state. Giving a detailed account of the project, Secretary Revenue, Punjab, and Divisional Commi

Land bill on anvil to protect ‘interests of farmers’

Bangalore: Faced with protests from farmers over acquisition of their land, the Centre has decided to bring in a new legislation with a focus on farmers' welfare, Law Minister M Veerappa Moily said on Saturday. The Bill, being fine-tuned currently, was expected to be introduced in the coming monsoon session of Parliament, he told reporters. "The focus of the new legislation would be on protectin

Grapevine

Cong duplicity With the Supreme Court constituting a Special Investigation Team(SIT) on the issue of black money, a defensive Congress has started questioning the “judicial overreach.” However, the party is caught in a difficult situation since it had all backed formation of SIT in Gujarat riots. Under the circumstances, if the Centre decided to file review petition in the Supreme Court, it

80,000 companies in Northern India are ‘defaulters’ – MCA

JAMMU: Asserting that Companies that have not filed annual returns and balance sheet to Ministry of Corporate Affairs (MCA) for past five years have been put on notice, a senior official of MCA today said there were 80,000 such companies in Northern India. “About 80000 defaulters (defaulting companies) are there in northern India. There are various type of defaulters and most of them are defaul

RBI fines 48 banks for violation of KYC, AML norms in six months

At a time when the government is grappling with the black money menace, the RBI has penalised as many as 48 small banks in just six months, for lapses in implementing customer identification norms and various other violations. In the first six months of 2011, the apex bank has slapped penalties on 48 erring banks , mostly co-operative, as compared to just 15 such actions during 2010. The apex bank

Patni Computer Systems: Transfer Pricing and "International Transaction"

The Pune Bench of the Income Tax Appellate Tribunal recently clarified several aspects of the law in relation to transfer pricing, as well as some issues in relation to the position in relation to Section 10A of the Income Tax Act, 1961. The elaborate decision, Patni Computer Systems v. DCIT, is available here. Insofar as the issues in relation to Section 10A are concerned, the principle issue wa

As pvt investors turn the screws, realtors set to cut prices

Many new real estate projects, especially those in which private equity (PE) firms are investing, could see a substantial price correction across India as PE players have begun to dictate the prices to be charged, apartment sizes and project schedules. "PE players dictate terms like what prices to be charged, whether the project should be affordable or luxury and exact time of its completion," sa

PE firms make 15 investments in real estate

NEW DELHI: The pace of private equity investments in the real estate space is picking up. The April-June 2011 quarter saw 15 investments in real estate projects and companies compared to 9 during the same period last year and 12 in the previous quarter, according to Venture Intelligence , which tracks PE and VC investment activity. Approximately $504 million were invested by PE firms across 10 dea

Housing regulator should check prices’

Activists are irked with the fact that the state’s proposed housing regulator cannot regulate housing prices. The regulatory body is expected to be tabled in this year’s monsoon session. “Prices are a major factor,” said former Maharashtra Housing and Development Authority (Mhada) chairman, Mumbai board, Chandrashekhar Prabhu. “Housing has gone beyond the reach of people and serious ste

Sterling Resorts to go for makeover

Mumbai: Sterling Holiday Resorts (India) is planning to go in for a complete makeover in terms of branding and portfolio. The company, now headed by Ramesh Ramanathan who is managing director, plans to have sub-brands under its current Sterling brand like Mahindra Holidays and Resorts in the years to come. The company will be spending close to R100 crore during 2011-12 and part of 2012-13 on reno

Real estate attracts PE players again

Private equity players are making a comeback to the real estate sector after a hiatus. PE funds flowing into real estate have risen during the quarter ended June 2011 compared to the same period last year, according to PE/VC tracker Venture Intelligence. PE firms closed 15 deals during the quarter. The fund infusion in five of these has not been disclosed, but the remaining 10 together amo

End 3-Year lock-in on FDI in education infrastructure: Dipp

NEW DELHI: Foreign direct investment in education infrastructure could become easier if a department of industrial policy and promotion proposal finds favour with the government. The department has recommended dropping the three-year lock-in for FDI in construction if it is for creation of education infrastructure. "The proposal is under consideration," an official told ET. "There is a vie

Integration of Director’s Identification Number (DIN) issued under Companies Act, 1956 with Designated Partnership Identification Number (DPIN) issued under Limited Liability Partnership (LLP) Act, 2008

General Circular No. 44/2011, Dated: 08.07.2011 To All Regional Directors All Registrar of Companies. Registrar of Limited Liability Partnership Sub: Integration of Director’s Identification Number (DIN) issued under Companies Act, 1956 with Designated Partnership Identification Number (DPIN) issued under Limited Liability Partnership (LLP) Act, 2008 Sir, The Ministry of Corporate Affairs

New guideline to strengthen and enable the Indian corporate sector to evolve into a global leader in responsible business- Murli Deora

Union Minister of Corporate Affairs Shri Murli Deora today released the “National Voluntary Guidelines on Social, Environmental and Economic responsibilities of Business” that will mainstream the subject of business responsibilities”. At a function held in Ashoka Hotal today the Minister expressed the hope that these guideline will strengthen and enable the Indian corporate sector to evolve

Recent Initiatives taken by the Ministry of Corporate Affairs

The Indian economy has expanded at a rapid rate during the current decade and the corporate sector has been the biggest contributor in this growth story. A significant feature of this growth is the increasing integration of the Indian corporate economy into the global business environment. While the Ministry of Corporate Affairs is working towards reforming the enabling environment for effective f

Company Law – HC dismisses Petition filed under section 397 and 398 of the Companies Act 1956 as Cause of action no longer survives

NISCHINTAPUR TEA CO. LTD Versus SUBRATA SEN & ORS ( Calcutta High Court) - An application under Section 397 and 398 of the Companies Act, 1956 (hereinafter ‘the Act’) was filed in this court way back in 1985. It was numbered as C.P. No. 252 of 1985. It is still pending. The petitioner in that application was one Amita Sen, who has since died. In her place, her three sons Subrata, Ranjan and Sa

High level govt group recommends opening multi-brand retail

A high level inter-ministerial group has recommended opening up of multi-brand retail sector to foreign direct investment at the earliest to check price rise. But, the panel appointed by the Prime Minister and headed by chief economic advisor Kaushik Basu has suggested allowing FDI in a properly regulated fashion. "We must guard against the risk of these new corporations becoming monopolistic an

Architect to survey CRZ slums: SRA

Mumbai: The Slum Rehabilitation Authority (SRA) will appoint an architect to survey and figure out the actual number of slums that come within the Coastal Regulation Zone (CRZ). Sachin Ahir, minister of state for housing, said the Shivshahi Punarvasan Prakalp Limited (SPPL), which is overseeing the slum redevelopment, had received around 60 to 80 proposals for redevelopment so far. "Our es

Amendment of the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979

The Union Cabinet today gave its approval to amend the title of the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 to ‘Inter State Migrant Workers (Regulation of Employment and Conditions of Service) Act, 1979’ by introducing a Bill, namely the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Amendment Bill, 2011 (Appe

Invest in land, but don't forget the fencing

Investing in plots can be lucrative as well as cheap. But, Sandeep Bagchi, recently offered a plot of land at Rs 5 lakh on the outskirts of Mumbai, is not sure whether to go for the deal. The broker’s pitch, “Five years from now, this plot will be worth Rs 25 lakh. It can also double up as a weekend home if you go for construction.” Given the small amount of initial capital required, Bag

Taxmen Now Eye Jewellery Purchases

Dr. Sanjiv Agarwal Recently, Income Tax Department searched a large number of private lockers and vaults in the city which resulted in unearthing of unaccounted or unexplained jewellery, gold, diamonds and cash in the lockers belonging to people whose whereabouts are not known ie, benami holdings. While this was going on, separately, Income tax department has made it mandatory for all high value

Master Circular – Lending To Priority Sector

RBI/2011-12/107 RPCD. CO. Plan. BC 10/04.09.01/ 2011-12 July 1, 2011 The Chairman/ Managing Director/ Chief Executive Officer [All scheduled commercial banks (excluding Regional Rural Banks)] Dear Sir, MASTER CIRCULAR – LENDING TO PRIORITY SECTOR The Reserve Bank of India has, from time to time, issued a number of guidelines/instructions/directives to banks on lending to Priority Sector

Information about TAN in Q. A. format (Updated)

Tax Deduction and Collection Account Number (TAN) Frequently Asked Questions and Answers (FAQs) 1. What is TAN? TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment chall

Petition filed u/s 433(a)/439 of Comp. Act,1956 dismissed for unjustified ground for Voluntary Winding

Advance Television Network Ltd. Versus The Registrar Of Companies (Delhi High Court) – Mr. Beri submits that the petitioner-company has not done any business since 2001-2002 and thus, it has not earned any income for the last ten years. He states there is no hope or prospect of the petitioner-company doing any further business as stated in its Memorandum of Association. He submits that keeping i

Companies cashing in on land banks to raise funds

High cost of capital and historically high land values even in a depressed market are persuading corporates and public sector units to monetise land parcels sitting on their balance sheets for record valuations. Companies like Raymond, Bayer, Mafatlal Industries, Rail Land Development Authority (RLDA) and National Textile Corporation (NTC) are liquidating their non-core assets despite weak sentim

CIBIL launches Credit Information Reports for companies

Leading credit information company, CIBIL, on Wednesday launched Credit Information Reports for companies to help them access the system data before they go for raising a loan or other financial dealings. Till now, Credit Information Bureau India (CIBIL) shared data regarding a company’s financial history (loans drawn earlier, repayment history, etc) with banks which helped latter assessing the

E-filing of Income Tax return in respect of companies under liquidation

GENERAL CIRCULAR NO. 41/2011, Dated 6th July 2011 Subject: E-filing of Income Tax return in respect of companies under liquidation. The Official Liquidators have reported that they are facing problems in e-filing of Income Tax Returns in compliance as they are required to mention PAN No. of the person who files the return, representing the company in liquidation. In the Regional Directors Confer

Policy Guidelines for expansion of FM Radio Broadcasting services through private agencies (Phase-Ill)

The Union Cabinet in its meeting today has approved the proposal of the Ministry of Information and Broadcasting to approve of the ‘Policy Guidelines on Expansion of FM radio broadcasting services through private agencies (Phase-Ill)’. Cabinet has also cleared the proposal of the Ministry for conducting ascending e-auction, as followed by Department of Telecommunications for the auction of 3G

Watchdog needed for realty check

Lack of affordable housing and zero accountability on contractual obligations of the builder makes the real estate sector a dangerous proposition for those who stake their life’s savings on buying a dream house. The ever-burgeoning demand for quality and affordable housing has made land the final frontier of Indian politics. And it is in this context that the demand for a regulator in the real e

Infrastructure Lending and Financial Inclusion high on Agenda

FM to Meet CEOs of PSBs and FIs to Review their Annual Performance Including Flow of Agriculture Credit, MSMEs Credit, Disbursement of Housing and Educational Loans Union Finance Minister Shri Pranab Mukherjee will meet with the Chief Executive Officers of Public Sector Banks (PSBs) and Financial Institutions tomorrow in the national capital. During the meeting, the Finance Minister will do the a

The Micro Finance Institutions(Development and Regulation) Bill, 2011

A BILL to provide access to financial services for the rural and urban poor and certain disadvantaged sections of the people by promoting the growth and development of micro finance institutions as extended arms of the banks and financial institutions and for the regulation of micro finance institutions and for matters connected therewith and incidental thereto. WHEREAS the banking system has ach

Foreign Contribution (Regulation) Act, 2010 not to apply to all bodies constituted or established by or under a Central Act or a State Act requiring to have their accounts compulsorily audited by the Comptroller and Auditor General of India

SECTION 50 OF THE FOREIGN CONTRIBUTION (REGULATION) ACT, 2010 – POWER TO EXEMPT IN CERTAIN CASES – ACT NOT TO APPLY TO ALL BODIES CONSTITUTED OR ESTABLISHED BY OR UNDER A CENTRAL ACT OR A STATE ACT REQUIRING TO HAVE THEIR ACCOUNTS COMPULSORILY AUDITED BY THE COMPTROLLER AND AUDITOR GENERAL OF INDIA ORDER S.O.1492(E), DATED 1-7-2011 WHEREAS the Central Government is of the opinion that it is

PE Funds To Shift Towards Domestic Sources In Two Years

Investors’ appetite for more Indian exposure remains strong to date and PE firms are eager to nourish it. How India’s PE and VC industry evolves in the months and years ahead will be determined through ongoing shifts in attitudes and behaviours of PE fund managers, limited partners (LPs) who invest with them and promoters whose companies accept PE financing. How the firms approach new fund

Limited Liability Partnership Rules, 2009 (Amendment) Rules, 2011

Ministry of Corporate Affairs Notification New Delhi the 5th July, 2011 G.S.R. …………………… (E). – In exercise of the powers conferred by sub-section (1) and (2) of section 79 of the Limited Liability Partnership Act, 2008 (6 of 2009), the Central Government hereby makes the following rules, further to amend the Limited Liability Partnership Rules, 2009 namely:- 1. Short title an

Lack of IPO exits shakes venture capital confidence

BANGALORE: The low IPO activity across the world, including India, has put a dampener on the venture capital industry, according to the 2011 Global Venture Capital Survey conducted by advisory services firm Deloitte. For 81% of Indian venture capitalists surveyed, the IPO exit route is a critical element of the venture and entrepreneurial ecosystem. More than half the respondents felt the curr

Exemption under section 54F and purchase of share of husband in plot

Sita Jain &Ors. v. ACIT & Anr. (ITAT Delhi) – We have duly considered the rival contention and gone through the record carefully. The Hon’ble Punjab & Haryana High Court in the subsequent decision has upheld grant of exemption u/s 54B in a case where land was purchased in the joint name. The ITAT had discussed this issue in the case of Smt. Saraswati Swaminathan reported in 116 ITD 234 and has

Whether when the title of the assessee on the impugned land is not clear, income arising from transfer of such land is to be treated as capital gain or income from other sources?

Bachhraj Factories Pvt Ltd Vs ITO (ITAT Mumbai)- in regard to 14 bighas, the assessee was found to be a trespasser. The law does not recognize the rights of a trespasser. Ordinarily, it is said that the possession is the nine point of ownership. The possessor has got right over the property and his right cannot be challenged by any one except the true owner. Undoubtedly, for some time, the assesse

Decision on FDI in multi-brand retail likely in July

A decision on the contentious issue of allowing foreign direct investment (FDI) in multi-brand retail is likely to be taken before the Monsoon session of Parliament, sources said. However, there will be tough riders on the global retail chains for launching their operations. These would include hand-holding the small kirana shop-keepers who fear they could be wiped out by the giant retailers. In

Govt streamlines FDI proposals’ filing for approval

New Delhi: Investors seeking government approval for Foreign Direct Investment (FDI) will now have to obtain electronically generated unique number from the concerned authorities before filing requests with the Foreign Investment Promotion Board. The government’s move is expected to streamline as well as expedite the process of clearing FDI proposals in key sectors such as telecom, defence, dire

Maharashtra to resurvey land records

In a mammoth exercise involving millions of land titles, the Maharashtra government is planning to undertake a resurvey of all land records across the State. “ The programme will be spread over five years and will cover the entire State in a phased manner. It will be a Herculean task. We will have to make use of old and exiting records. The objective is to have a clear land title or 7/ 12 docume

63rd foundation day of the Institute of Chartered Accountants of India (ICAI)

The Institute of Chartered Accountants of India (ICAI) today celebrated its 63rd foundation day. It was on this day in 1949 the Chartered Accountants Act was passed by the Parliament. At a function organised in Vigyan Bhawan, New Delhi Shri Rameshwar Thakur, Past President,ICAI and the Governor of Madhya Pradesh was the Chief Guest of the function. Deputy Chairman, Rajya Sabha, CA. K.Rahman Khan a

Things People should know about Employees Provident Fund

1) Your PF entitles you to pension too Despite the popularity of the EPF as a saving tool, not many people are enthused by or even aware of the Employees’ Pension Scheme. Introduced in 1995, it is funded by diverting 8.3%, or a little more than a third of your PF contribution. The pension on retirement is linked to the number of years in service and the average salary drawn in the year before r

Know /Check Your EPF Balance online

• Please click on the following link to know the balance in your EPF Account upto the date, the accounts are updated, which also includes the latest approved transactions of settlement/advances/transfer-in/transfer-out, if any. • Select the EPFO office where your account is maintained and furnish your PF Account number. • Leave the extension field blank, in case your account does not have

RBI issues Master Circulars as amended up to 30th June 2011

RBI has issued Master Circulars on 01.07.2011 on the following subjects. These Master Circulars are updated till 30th June 2011. Full text of the Master circulars can be checked on the website of RBI. A link to master circulars is given at the bottom of this post. 1. Master Circulars – Miscellaneous Instructions to NBFC- ND-SI 2. Notification as amended upto June 30, 2011 – The Securitisatio

Challenges for Next Generation Banking

Date: 30 Jun 2011 Challenges for Next Generation Banking (Address by Dr. K.C. Chakrabarty, Deputy Governor, Reserve Bank of India at the Indian Chamber of Commerce and Industry, Coimbatore on June 25, 2011) Mr. Krishnan, President of Indian Chamber of Commerce and Industry, Coimbatore; Mr. M. Narendra, Chairman and Managing Director of Indian Overseas Bank; Mr. D. Raj Kumar, Regional General Ma

Validity of charge created against the property by mortgaging the property in favour of financial institutions by the borrower Assessee during pendency of any of the proceedings under the Income-tax Act, 1961

TRO v Industrial Finance Corpn. of India and Ors. (Gujrat HC)- The charges created against the property, by the mortgaging of the property by the assessee-borrower in favour of the financial institution during the pendency of any proceedings under the Income-tax Act, 1961, cannot be declared as void against any claim in respect of income tax if the same was made for adequate consideration and with

Cost Audit Order dated 30th June 2011 in modification of Order dated 3rd May 2011

F. No. 52/26/CAB-2010 Government of India Ministry of Corporate Affairs Cost Audit Branch B-1 Wing, 2nd Floor, Paryavaran Bhawan, CGO Complex, Lodhi Road, New Delhi-110 003 Dated the 30th June, 2011 ORDER Consequent upon notification of the Companies (Cost Accounting Records) Rules, 2011 published vide G.S.R. 429(E) dated 3rd June 2011 and in modification of the earlier Order of even num

Liberalise FDI policy in financial services sector – US

Asking India to liberalise its foreign investment policies, particularly in the financial services sector, the US today said further opening these areas can add about 1.5% to the country’s economic growth. “India imposes substantial FDI caps in the financial services sector particularly in the insurance sector… insurance penetration is very low (in India)… “You should understand the ce

New Law for the Rights of Persons with Disabilities

The Committee appointed by the Ministry of Social Justice and Empowerment, Government of India, to draft a New Legislation replacing the existing Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, presented the final draft of the new law, “The Rights of Persons with Disabilities Bill, 2011”, to Shri Mukul Wasnik, Minister for Social Justice

Report fraud cases of Rs 1 cr and above to CBI – RBI to banks

In order to check banking frauds, RBI today asked public sector lenders to promptly report cases of cheating involving Rs 1 crore and above to the CBI, and of the lesser amount to the police. “Incidence of frauds, dacoities, robberies, etc, in banks is a matter of concern,” the Reserve Bank of India (RBI) said, issuing guidelines for reporting frauds. Private and foreign banks have been aske

RBI asks banks to rotate staff to check loan fraud

In a bid to contain frauds in banks, the Reserve Bank today asked lenders to rotate staff and put in place check and balances before giving high value loans. Banks may put in place a system wherein the concurrent audit can be undertaken in order to contain the frauds, RBI said in a notification.Banks should verify genuineness documents of title submitted as security for loans, especially for large

RBI asks banks to rotate staff to check loan fraud

In a bid to contain frauds in banks, the Reserve Bank today asked lenders to rotate staff and put in place check and balances before giving high value loans. Banks may put in place a system wherein the concurrent audit can be undertaken in order to contain the frauds, RBI said in a notification.Banks should verify genuineness documents of title submitted as security for loans, especially for large

RBI allows issuing equities against capital good imports

The Reserve Bank today allowed domestic companies to issue shares against import of capital goods and machineries, making it easier for them to expand. However, companies will have to get prior approval of the government to trade equities for imports. “…it has been decided to permit issue of equity shares /preference shares under the Government route of the FDI scheme for import of capital go

Establishment of Connectivity with both depositories NSDL and CDSL – SEBI CIR/MRD/DP/09 /2011

Securities and Exchange Board of India CIRCULAR CIR/MRD/DP/09 /2011 July 01, 2011 To, All Stock Exchanges Dear Sir / Madam, Sub: Establishment of Connectivity with both depositories NSDL and CDSL – Companies eligible for shifting from Trade for Trade Settlement (TFTS) to normal Rolling Settlement 1. It is observed from the information provided by the depositories that the companies listed

Approval of building plans to go online in Thane

THANE: Municipal commissioner R A Rajeev on Friday unveiled plans to streamline the clearance of development proposals by the town planning department. The department, equivalent of the building proposals department in the Mumbai civic body, is vested with executive authority to plan, control and regulate development in the city. However, Rajeev on Friday voiced his intentions to put an en

Firm or individual/HUF covered under section 44AB are mandatorily required to file ITR-5 or ITR-4 electronically using digital signature

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Investing companies to have only two tiers of subsidiaries: Proposal

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RBI penalises Citibank N.A. for contravention of various guidelines and instructions relating to Know Your Bank (KYC)/Anti Money Laundering (AML) issued by RBI

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The Corporate Affairs Ministry has asked the Registar of Companies to inspect the books of accounts of the controversial multi-level marketing company Speak Asia and submit its report to the government by July 10. The Singapore-based company Speak Asia, which is yet to be incorporated as a company in India, would be inspected under section 591 of the Companies Act, which is applicable on companies

RoC probing affairs of Speak Asia, to submit report by July 10

The Corporate Affairs Ministry has asked the Registar of Companies to inspect the books of accounts of the controversial multi-level marketing company Speak Asia and submit its report to the government by July 10. The Singapore-based company Speak Asia, which is yet to be incorporated as a company in India, would be inspected under section 591 of the Companies Act, which is applicable on companies

Govt to come out with negative list of service tax soon

The government will come out with a draft ‘negative list’ for service tax in two weeks, meaning services which are not mentioned in it would be taxed under the proposed GST regime. “The draft paper (on negative list of services) is nearly ready and you should see this paper in two weeks,” Joint Secretary in the Ministry of Finance, V K Garg, told PTI. Currently, only limited number of ser

Sales Tax department raids 37 firms in Mumbai – Claims to unearthed hawala transactions worth around Rs 6,500 crore

Maharashtra Sales Tax department claimed to have unearthed a major hawala racket having a turnover of Rs 6,500 crore after raiding 37 firms in the city. “During our investigations, we found that transactions worth around Rs 6,500 crore were carried out by 37 companies since 2007. Almost all the firms had bank accounts with a leading private bank,” a sales tax official said today. “We conduc

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NEW DELHI: In what is seen as a resounding investor confidence in the Indian market despite concerns over the global slowdown and image-rattling corruption scandals hitting foreign inflows, India managed total FDI equity inflows, in the first two months of the current financial year (i.e. April and May, 2011), of $7.785 billion, representing an increase of around 77 per cent over the FDI equity in

Pvt players to measure your land

In a move that aims to speed up property transactions, the state administration has decided to involve private players in land measurement exercises. According to a proposal that is expected to be discussed at the state cabinet meeting on Wednesday, qualified private surveyors will be roped in for land measurements. Land measurement surveys are often needed for marking plot boundaries following pu

Civic body proposes to scrap 999-yr leases

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Tata Housing steps into Maldives

Tata Housing will develop about one million sq.ft at an estimated Rs 850-900 crore on the public-private-partnership mode with the Maldives Government. The project will be developed with a local partner, SG18 Developers. A special purpose vehicle has been formed in which Tata Housing holds 65 percent and SG18 Developers the rest for executing the project. The local partner has inked the public-pri

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Amidst pressure on the government to tighten the screws on inflow of funds from tax havens, India’s foreign direct investment from Mauritius and Cyprus, dropped significantly in 2010-11. While the FDI inflows from all the sources declined by 25% in 2010-11, the drop was steeper at about 33% to USD 6.98 billion from Mauritius. Likewise, the inflows from Cyprus were down by 44% to USD 913 million,

RBI lays out strict and tedious rules for banks lending to real estate sector

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E-way may be widened after green study

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Land is contentious. With urbanisation and demand for non-agricultural use, coupled with lack of employment and skills for those in small-holder and subsistence-level agriculture, this is understandable. In western Europe, especially in Britain, and more especially in England, land markets were freed up before the Industrial Revolution and access to education and skills became more broad-based. We

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Companies (Amendment) Regulations, 2011 regarding six Regional Directors

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RBI extends time limit for buyback of Foreign Currency Convertible Bonds (FCCBs)

After reviewing the current policy on buyback/prepayment of Foreign Currency Convertible Bonds (FCCBs), the Reserve Bank in consultation with the Government of India, has decided to extend the time limit for buyback of FCCBs issued by Indian companies up to March 31, 2012 at reduced discount rates. Accordingly, Indian companies have been permitted to buyback the FCCBs at a minimum discount of 8 pe

AZB Mumbai widens management with new CEO role for Abhijit Joshi

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Microsoft announces availability of Microsoft Office 365 in India

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Kotak adjudged 'Best Investment Bank' in India

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RBI allows issue of shares under FDI scheme under the Government route

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Eight Indian-origin person named among 40 young leaders of the global telecom industry

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Govt to come out with market-friendly stamp duty norms shortly

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Clarification on Ensuring Corporate Governance and Proper Compliance of Provisions of the Companies Act, 1956 and Rules made there Under

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UIDAI – Aadhaar No is now valid ID proof for LPG gas connection

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Realty Regulator :

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Government to Provide Trainning to Advocates under Rajiv Gandhi Adhivakta Prashikshan Yojna

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RBI to Issue Regulations for Setting-up of Infrastructure DEBT funds (IDFs) on Company Route

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Discussion Paper on FDI Equity Caps

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Flyovers on Linking Road for signal-free ride

After the commissioning of a series of flyovers permitting a signal-free drive from South Mumbai to the eastern suburbs, the state government is now working on a plan to provide respite from traffic snarls along the arterial roads in the western suburbs. This time, with a series of flyovers between Bandra and Dahisar. Aimed at reducing congestion along Linking Road and S V Road, the Maharashtra S

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Economies seldom get rich on agriculture alone. But the tussle between industry and agriculture is not new in India. Singur is the latest. The Supreme Court back in 1970 had held in the case of 'Lt Governor of Himachal Pradesh-vs-Avinash Sharma' that once possession of land was taken under the Land Acquisition Act, 1894, the land vests with the government statutorily and it cannot be reverted to

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The guidelines for setting up mobile phone towers in the state drafted last year by an interdepartmental committee of state officials was not approved by chief minister Prithviraj Chavan on Tuesday. Chavan asked Urban Development Department to submit a revised report of the policy giving information such as specific levels of radiation caused by these mobile phones. The guidelines had recommende

HC paves way for revamp of leased building

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PE investments to infrastructure rise 50% in one year

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State seeks central aid for affordable housing

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It hurts isn’t it when somebody deducts our tax monthly or quarterly even if our total income during the year does not exceed maximum exemption limit. TDS being an early collection for government becomes tedious both for employer and employee especially when employee’s total income during the year does not exceed maximum exemption limit. Form 16 or 16A are provided by employer to employee as

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New Delhi, the 27th June, 2011 Notification No. 41/2011 – Service Tax G.S.R. (E).- In exercise of the powers conferred by clause (a) and clause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following rules further to amend the Point of Taxation Rules

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Telecom regulator Trai may soon get powers to summon persons and penalise operators for violating licence conditions, if the amended Act, which has proposed to give more teeth to the regulator, comes into effect. The Telecom Ministry is looking to give more powers to Trai, which will bring it on par with the Civil Courts or market regulatory body like Sebi by amending Trai”s act 1997. “The pr

Municipal Corporation has no power to Regulate/control over the construction of Telecom Towers within their area – Delhi HC

Cellular Operators Association of India & Ors. Versus Municipal Corporation of Delhi.(Delhi High Court) IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 29th April, 2011 W.P.(C) 3267/2010 – Cellular Operators Association of India & Ors. Versus Municipal Corporation of Delhi. W.P.(C) 3423/2010 – Idea Cellular Limited Versus MCD And Ors W.P.(C) 439/2010 – Tower Vision India Priva

Summary of the latest regulations governing combinations under the Competition Act, 2002 notified on 11 May 2011

The much debated Regulations governing combinations have been finally notified by the Government on 11 May 2011. These Regulations shall come into force on 1st day of June, 2011. This article summarizes key provisions of the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (Regulations) relating to combinations i.e. mer

CCI (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011

NOTIFICATION NO. 1-1/COMBINATION REGULATIONS/2011-12/CD/CCI, DATED 11-5-2011 In exercise of the powers conferred by sub-section (1) and clauses (b), (c) and (f) of sub-section (2) of section 64 read with sub-sections (2) and (5) of section 6 of the Competition Act, 2002 (12 of 2003), the Competition Commission of India hereby makes the following regulations, namely:— Short title and commenceme

2010-11: The Indian capital markets war and how to build an army on foreign soil

The war is not just on the trading floorThe winner doesn’t take it all anymore in the capital markets field. Read Legally India’s full analysis of the main players and contenders in the equity and debt capital markets. Although capital markets work in India is not necessarily the most technical or profitable area, it nevertheless comes with major kudos and potential for relationship building.

Revised Section 44AD – Is it really a palpable transformation?

Recently, the Section 44AD has been revised and now it is applicable to all businesses instead of only to civil construction business. On the other outset, limit of tax audit u/s 44AB is increased to Rs. 60 lakh from earlier limit of Rs. 40 lakh. Being an entrepreneur first, I had lot of disappointments on increase of limit as now there will be lesser business men falling under the tax audit brac

Finance Ministry to take up 42 foreign direct investment (FDI) proposals Next Week

The Finance Ministry will take up 42 foreign direct investment (FDI) proposals, including that of BNP Paribas , Tata Steel and PTC India Financial Services, next week. The Foreign Investment Promotion Board (FIPB) headed by Economic Affairs Secretary R Gopalan is scheduled to meet on May 20 here. As per the Finance Ministry, 15 proposals are new ones and 14 are those on which decisions were defer

Minister for Corporate Affairs stresses to expedite the Process of Liquidation Of Companies

Murli Deora Stresses to expedite the Process of Liquidation Of Companies Union Minister for Corporate Affairs Shri Murli Deora has desired that concerted action to be taken to expedite the process of liquidation of companies which is currently taking inordinately long. In the conference of Official Liquidators organised by the Ministry recently to discuss ways for expediting liquidation process t

Clarifications on prosecution provisions under Service tax laws

Prosecution provisions (for specified offences) were a part of Chapter V of Finance Act, 1994 (the Act) introduced in 1994. However, with expansion of Service tax laws in 1998, these provisions were deleted. Budget 2011 (with effect from 8 April 2011) re-introduced prosecution provisions for offences like rendition of services without raising invoices, availment of Cenvat credit without receipt of

Delhi HC awards compensation to biscuit tycoon's widow

The Delhi High Court today awarded Rs 10 lakh as compensation to Nina Pillai, wife of 'biscuit tycoon' Rajan Pillai, who died in judicial custody in Tihar Jail in 1995 under mysterious circumstances, and asked the Delhi government to pay the sum within four weeks. Justice S Muralidhar awarded the compensation on the plea of Nina Pillai who sought compensation from the Centre as she alleged tha

Clarification on Loan to Public Limited Companies Under Section 295 of the Companies Act

The Ministry of Corporate Affairs has issued clarification on loan to Public Limited Companies under Section 295 of the Companies Act. A circular issued by the Ministry in this regard says that it has come to the notice of the Ministry that some Companies are making applications for getting prior approval of Central Government when they propose to make any loan to, or give any guarantee or provide

Adjustment of differential pricing amount at the time of application for allotment of specified securities

CIRCULAR CIR/CFD/DIL/2/2011, Dated - May 16, 2011 Dear Sirs, Sub.: Adjustment of differential pricing amount at the time of application for allotment of specified securities This refers to the provisions of Regulation 29 of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 which provide for offer of specified securities at different prices to certain investors. 2. It has b

Certification of e-Forms under the Companies Act, 1956 by practicing professionals –Corrigendum to Circular No. 14/2011 dated 08th April, 2011

General Circular No. 26 /2011, Dated: 18.05.2011 Corrigendum to Circular No. 14/2011 dated 08th April, 2011 [ F. No. 17/102/2011-CL V] Subject: Certification of E-forms under the Companies Act, 1956 by the practicing professionals. The undersigned is to draw the attention on the Circular No. 14/2011 dated 08.04.2011 of this Ministry on the subject cited above. The following errata has been not

Taxability of Legal Services

Finance Act, 2010 has expanded the scope of service tax of legal consultancy services w.e.f. 1st May, 2011 Finance Act, 2011 has substituted the definition of taxable service under clause 65 (2105) (zzzzm) as follows – “Taxable service means any service provided or to be provided (i) to any person, by a business entity, in relation to advice, consultancy or assistance in any branch of law,

HC refuses to decide limit for wedding expenses

The Delhi High Court today dismissed a petition seeking its intervention in deciding the maximum limit for expenses in marriage functions. “I am of the considered opinion that this court cannot venture into the issue and hence the petition stands dismissed,” a division bench of Chief Justice Dipak Misra and Justice Sanjiv Khanna said. The court was hearing a Public Interest Litigation (PIL) f

Unmarried Hindu woman has equal property rights

An unmarried Hindu woman is entitled to equal share in ancestral or coparcenery property along with other male members under the amended Hindu Succession Act, the Supreme Court has held. Coparcenary refers to equal inheritance which was restricted only to male members of the Hindu Undivided Family but after succesive amendements several states have chosen to extend the benefit to unmarried female

Summary of FAQ on Applicability of Employees’ Provident Fund and Pension Scheme to International Workers

The Employees’ Provident Fund Organisation (‘EPFO’) has issued updated Frequently Asked Questions (FAQs) on 6 May 2011 in context of applicability of the Employees’ Provident Fund Scheme, 1952 (EPFS) and Employees’ Pension Scheme, 1995 (EPS), which are primary social security scheme in India, to International Workers . Key clarifications The FAQs provide the following key clarification

CCI (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011

NOTIFICATION NO. 1-1/COMBINATION REGULATIONS/2011-12/CD/CCI, DATED 11-5-2011 In exercise of the powers conferred by sub-section (1) and clauses (b), (c) and (f) of sub-section (2) of section 64 read with sub-sections (2) and (5) of section 6 of the Competition Act, 2002 (12 of 2003), the Competition Commission of India hereby makes the following regulations, namely:— Short title and commenceme

Revised Section 44AD – Is it really a palpable transformation?

Recently, the Section 44AD has been revised and now it is applicable to all businesses instead of only to civil construction business. On the other outset, limit of tax audit u/s 44AB is increased to Rs. 60 lakh from earlier limit of Rs. 40 lakh. Being an entrepreneur first, I had lot of disappointments on increase of limit as now there will be lesser business men falling under the tax audit brac

Finance Ministry to take up 42 foreign direct investment (FDI) proposals Next Week

The Finance Ministry will take up 42 foreign direct investment (FDI) proposals, including that of BNP Paribas , Tata Steel and PTC India Financial Services, next week. The Foreign Investment Promotion Board (FIPB) headed by Economic Affairs Secretary R Gopalan is scheduled to meet on May 20 here. As per the Finance Ministry, 15 proposals are new ones and 14 are those on which decisions were defer

SC asks Centre to frame guidelines on phone tapping

The Supreme Court today asked the Centre to frame guidelines for interception of telephone conversations in order to prevent illegal phone tapping by service providers. “The central government must frame certain statutory guidelines in this regard to prevent interception of telephone conversations on unauthorised communication,” a bench of justices GS Singhvi and AK Ganguly said. The bench al

Higher fee for property above 50L

High-value property transactions in the capital will soon attract substantially higher taxes. The Delhi government has decided to remove the cap of Rs 50,000 as the upper limit of registration fees levied on property sales, in effect hiking the fee for all properties valued above Rs 50 lakh. The government charges 1% of a property’s sale price as registration fees. So, the fee for a Rs 1 crore

Some hope for landlords

Being a landlord in most cities can be quite traumatic if you can’t get the tenant to vacate, more so if you gave your property out several decades ago when rentals were very low. Most of the older commercial/residential areas in Indian cities fall in this category, and shopkeepers/offices give a few hundred rupees as rent for properties worth crores. To add salt to injury, local authorities oft

Centre plans to introduce bill on Land Acquisition

The Centre on Thursday said it has plans to introduce bill on Land Acquisition in the next session of Parliament as there appears to be consensus on the issue. However, Home Minister P Chidambaram said law and order in Uttar Pradesh is not a “happy situation” as farmers were protesting in many villages on the land acquisition issue and criticised the way Chief Minister Mayawati was handling th

Fake ration cards – Government to initiate criminal proceedings

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UN human rights official lauds ratification milestone for disability pact

The United Nations human rights chief today added her voice to the chorus welcoming the 100th ratification of the UN’s disability convention, but warned that too few countries currently have laws protecting persons with disabilities from discrimination. “The adoption of this treaty brought great hope to many individuals with disabilities,” UN High Commissioner for Human Rights Navi Pillay sa

Sebi mulls new incentive structure for Mutual Fund agents

A panel set up by Sebi to boost mutual fund investments through distributors is considering a new incentive model, wherein investors could be asked to pay a service fee and commissions would be borne by fund houses. The proposals also involve a single-cheque payment for the combined amount of the agreed investment and service fee or transaction cost, which could be capped at an amount between Rs 1

Department of Industrial Policy & Promotion (DIPP) issues Discussion Paper on Utility Models

13.05.2011 DISCUSSION PAPER SUBJECT: UTILITY MODELS I. Invitation of Views: 1. Over the past eighteen months, this Department has adopted an inclusive approach in the process of formulation of various policies. As part of this approach we have engaged in public consultation and discussion on important issues prior to initiating policy reforms. These structured discussions are triggered by the

Amendment in SEBI (ICDR) Regulations, 2009

SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2011 – Amendment in regulation 58 NOTIFICATION F. NO. LAD-NRO/GN/2011-12/05/13907, DATED 29-4-2011 In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to further amend the Securities and Exchange Board

Amendment to Canteen Stores Exemption Notification – Notification No. VAT-1511/CR. 64/Taxation-1

FINANCE DEPARTMENT Mantralaya, Mumbai 400 032, dated 29th April 2011 Order MAHARASHTRA VALUE ADDED TAX ACT, 2002. No. VAT-1511/CR. 64/Taxation-1.— In exercise of the powers conferred by sub-section (3B) of section 8 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005), the Government of Maharashtra hereby amends with effect from the 1st May 2011, the Government Order, Finance Depar

In case of compensation for permanent injury suffered in a motor vehicle accident, the loss of earning capacity of the victim alone is not the factor to be taken into account- SC

The Supreme Court stated last week that in a case of compensation for permanent injury suffered in a motor vehicle accident, the loss of earning capacity of the victim alone is not the factor to be taken into account. Dependence on others for normal life and personal comforts should also be considered, the court stated in the appeal case, B Kothandapani vs Tamil Nadu SRTC. In this case, a person w

Sexual exploitation of children on the rise in Mauritius, UN rights expert warns

Mauritian children are increasingly vulnerable to sexual exploitation, due to a combination of poverty, family dysfunction, social taboos, alcohol and drugs, an independent United Nations human rights expert warned today. Mauritian children are increasingly vulnerable to sexual exploitation, due to a combination of poverty, family dysfunction, social taboos, alcohol and drugs, an independent Unit

Supreme Court – Indian court has no jurisdiction in international arbitration

The Supreme Court last week set aside a Delhi high court judgment holding that the high court had no power to entertain an international arbitration petition in the appeal case, Videocon Industries Ltd vs Union of India. A production sharing contract was entered into between the government and a consortium of four companies consisting of ONGC, Videocon, Cairn Energy of UK and Ravva Oil of Singapor

Criminal trial of directors can not be quashed merely because the loan has been repaid with interest

The Supreme Court last week ruled that the criminal trial of directors of a company accused of forging documents to get loan from a bank could not be quashed merely because the loan has been repaid with interest. In this case, Sushil Suri vs CBI, some directors of a pharmaceutical firm, Morpen Laboratories Ltd of Delhi, were charge-sheeted for fabricating false invoices to obtain a hire purchase l

Atul G. Puranik vs. ITO (ITAT Mumbai)

I.T.A.No.3051/ Mum/2010 (A.Y.2006-07) ORDER PER R.S. SYAL, AM: This appeal by the assessee arises out of the order passed by the CIT (Appeals) on 10-03-2010 in relation to the A.Y. 2006-07. Various grounds raised in this appeal deal with a solitary issue about the chargeability of the income under the head ‘Capital gains’. 2. Briefly stated, the facts of the case, as stated by the Assessi

Section 50C Does Not Apply To Lease Rights

Atul G. Puranik vs. ITO (ITAT Mumbai) Section 50C applies only to a capital asst, being land or building or both, it cannot be made applicable to lease rights in a land. As the assessee transferred lease right for sixty years in the Plot and not land itself, the provisions of sec.50C cannot be invoked. A distinction has been drawn between ‘land or building’ on one hand and ‘or any rights in

How to get Service Tax Registration Number Online?

According to Section 69, every person liable to make payment of service tax or any other person notified by the central govt through a notification is required to get the registration under the service tax act On Line Registration On line registration has been mandatory for all kind of assesses w.e.f. 30-09-2009 Vide commissioner of service tax Trade Notice no. 14/ST/2009 dated 17-09-2009 Under

Provisions of section 2(22)(e) of the Income Tax Act, 1961 related to deemed dividend not applicable to non shareholders – Delhi HC

CIT vs. Ankitech Pvt Ltd (Delhi High Court) REPORTABLE * IN THE HIGH COURT OF DELHI AT NEW DELHI +ITA No.462 of 2009 with ITA Nos. 2087/2010, 901/2010, 902/2010, 903/2010, 960/2010, 1327/2010, 1436/2010, 1502/2010, 1865/2010, 461/2010, 998/2009, 1421/2009, 1618/2010, 1758/2010, 1978/2010, 622/2011, 623/2011, 270/20111588/2010, 211/2010, 352/2010 & 2014/ 2010. Reserved On: April 27, 2011. % Pr

SC sent advocate Jail for forging the signature of Karnataka High Court

B.N. Shivanna Versus Advanta India Limited & Anr. (Supreme Court)- Contempt – Fraud by Advocate – Conviction upheld - appellant was enrolled as an advocate on 14.8.1998 and since then he has been practicing in the High Court of Karnataka at Bangalore. Prior to joining the Bar, he had been working for the respondent company as Marketing Executive. Being well known to the officials of the compan

Govt exempts whole 9.5% interest on Provident Fund (PF) for 2010-11

Giving relief to 4.71 crore subscribers of EPFO, the government has allowed tax exemption on the 9.5% interest income on PF deposits for 2010-11. The finance ministry notification last week raises the income tax exemption to 9.5% interest income from 8.5%. The decision clears the air for the EPFO subscribers who were given increased interest rate by one percentage point for 2010-11, but the financ

Loan to Public Limited Companies under Section 295 of the Companies Act, 1956 –Clarification regarding

General Circular No. 24/2011, Dated: – 12th May, 2011 F. No. 14/13/2011-CL-VII Government of India Ministry of Corporate Affairs Subject:- Loan to Public Limited Companies under Section 295 of the Companies Act, 1956 – Clarification regarding. It has come to the notice of the Ministry that some companies are making applications for getting prior approval of Central Government when they pr

Revision of procedure for approval by Central Government for payment of remuneration to a relative of a director for holding an office or place of profit in the company

Revision of procedure for approval by Central Government for payment of remuneration to a relative of a director for holding an office or place of profit in the company Background Section 314 (1 B) of the Companies Act 1956 (the Act) provides that a) no partner or relative of a director or manager, b) no firm in which such director or manager, or relative of either, is a partner, c) no privat

RBI – Enhancement in gratuity limits – Prudential Regulatory Treatment

RBI/2010-11/527 May 16, 2011 The Chairmen All Regional Rural Banks (RRBs) Dear Sir, Enhancement in gratuity limits - Prudential Regulatory Treatment Consequent upon the enhancement in gratuity limits following the amendment to Payment of Gratuity Act 1972, RRBs have approached us for the amortisation of the enhanced expenditure resulting therefrom. 2. The additional liability on account of

CCEA approves the proposal to amend the Policy on allowing FDI in LLPs

The Limited Liability Partnership Act 2008 (LLP Act) was notified in April 2009 but FDI in LLPs was not permitted under the FDI policy. In September 2010, the Department of Industrial Policy and Promotion, Ministry of Commerce & Industry, Government of India, had issued a discussion paper on permitting FDI in LLPs, surrounding aspects / issues and invited comments thereon from various stakeholder

Soon Stock brokers may not be required to seek ‘running account authorisation’ from clients every year

Sebi has allowed brokers an uninterrupted access to their clients’ accounts by seeking one time authorisation, reversing its earlier direction of such a requirement every year. Sebi has agreed to drop the requirement of stock brokers seeking ‘running account authorisation’ from their clients at least once a year — which was made mandatory in December 2009 — after repeated requests from b

ROC invites comment on Compliance of provisions of the Companies Act, 1956 and Rules made thereunder

F.No. 17/146/2011-CL-V Government of India Ministry of Corporate Affairs 5th Floor, A Wing, Shastri Bhavan Dr. R.P. Road, New Delhi-110001 Dated 12.05.2011 To All the Regional Directors, All the Registrar of Companies/ Official Liquidators The Stakeholder Sub: Compliance of provisions of the Companies Act, 1956 and Rules made thereunder. Sir, In order to ensure compliance of the provisi

Minister for Corporate Affairs stresses to expedite the Process of Liquidation Of Companies

Murli Deora Stresses to expedite the Process of Liquidation Of Companies Union Minister for Corporate Affairs Shri Murli Deora has desired that concerted action to be taken to expedite the process of liquidation of companies which is currently taking inordinately long. In the conference of Official Liquidators organised by the Ministry recently to discuss ways for expediting liquidation process

If AO finds actual rent received is less than the fair market rent because of the abnormally high interest-free security deposit, he can adjust it

Tivoli Investment and Trading Co vs. ACIT (ITAT Mumbai)- the municipal value or standard rent is not binding on the AO but is a guiding factor for determining the reasonable rent expected to be fetched by the property. If the AO finds that the actual rent received is less than the fair market rent because of the abnormally high interest-free security deposit, he can undertake necessary exercise in

Employee Provident Fund (EPF) – Special Provisions for International Workers (FAQs)

1) Who is an International Worker? An International worker may be an Indian worker or a foreign national. - Any Indian employee working or having worked abroad in a country with which India has entered into a Social Security Agreement (SSA); OR - Any foreigner working in India in an establishment where the Employees‟ Provident Funds & Miscellaneous Provisions Act, 1952 is applicable. 2) Who

No service tax on hotel food sent up to rooms

Food served in hotel rooms from their air conditioned restaurants with liquor licences will not attract service tax, the revenue department today said. “When the food is served in the room, service tax cannot be charged under the restaurant service as the service is not provided in the premises of the air-conditioned restaurant with a licence to serve liquor,” a Central Board of Excise and Cus

Service Tax – Short Term Accommodation Service and Restaurant Service – Clarification

Circular No. 139/8/2011-TRU, New Delhi, the 10th May 2011 Subject: Short Term Accommodation Service and Restaurant Service- clarification -regarding Since the levy of service tax on the two new services relating to services provided by specified restaurants and by way of short-term hotel accommodation came into force with effect from 1st May 2011, a number of queries have been raised by the pote

Sub-contracting of infrastructure projects to attract a service tax

Outsourcing or sub-contracting of infrastrcture projects will attract a service tax, the finance ministry has said, a move likely to raise project costs . Service tax, which is 10%, will have to be paid even on exempted sectors such as construction of dams, tunnels, roads and bridges. "Sub-contractor is essentially a taxable service provider. The fact that services provided by such sub-con

Delhi HC on Service tax on Reting of Immovable property – 9th May

Case continued to be argued at length by Mr. A S Chandiok, ASG, UOI for the third session also. He has argued the matter now for nearly 7 hours, by painstakingly taking the Court through allied laws, judgements of the constitutional benches, orders passed by the Courts in other Service tax matters. Petitoners were awaiting their chance to present their final arguments as rejoinder, but that could

PE funds look to exit ailing realty sector

Private equity (PE) fund companies are looking to exit realty projects, dealing another blow to the sector that is already reeling under the impact of loans drying up and the fading interest of investors. “There is a problem of funding for the sector. Unfortunately, banks and other financial institutions are treating the sector like an untouchable. This is mostly affecting small developers or th

No demand for houses, but prices hit an all-time high

The laws of demand and supply do not apply to your city's real estate scenario. With 93,000 under-construction and readyfor-possession homes still unsold, the 'weighted average' cost of a flat is at its peak, according to a finding put out by property research firm Liases Foras. On an average, the cost of a flat in Greater Mumbai (area under BMC limits) is pegged at Rs 2.18 crore. That's a 436

Negotiable Instrument Act – No case made out if cheque issued for Security Deposit – SC

Joseph Vilangadan. v. Phenomenal Health Care Services Ltd. & Anr. - As per the said contract, Contractors deposited the sum of Rs. 10 lacs by undated cheque no.027840 drawn against South Indian Bank Ltd., Palarivattom Branch, Cochin branch with the respondent no.1 as refundable security deposit for the due performance of the agreement. The said undated cheque was in custody of the respondent 2 no.

How to get unique identity number (UID)

With a mammoth exercise on to issue an Aadhar number to each of India’s 1.2 billion citizens and interested residents, IANS tracks the process involved for getting what will become a unique identity for people in India to access all public or private services. The Unique Identification Authority of India (UIDAI) – under the chairmanship of Nandan Nilekani – is the nodal agency, which had ap

Companies (Amendment) Regulations, 2011 vide notification dated 9th May, 2011

Notification New Delhi, the 9th May, 2011 G.S.R.- (E): – In exercise of the powers conferred by sub-sections (1),(2),(5) and (8) of section 25 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following regulations further to amend the Companies Regulations, 1956, namely:- 1. (1) These regulations may be called the Companies (Amendment) Regulations, 2011. (2) Th

Seizure of Fake Indian Currency Notes (FICN) having total face value of Rs.3.00.000/- by DRI, Kolkata & Berhampore

GOVERNMENT OF INDIA DIRECTORATE OF REVENUE INTELLIGENCE KOLKATA ZONAL UNIT 8, Ho Chi-Minh Sarani, Kolkata- 700071 Telephone:- (033)-2282 3321, Fax:- (033)-2282 4465 Press release SEIZURE OF FAKE INDIAN CURRENCY NOTES (FICN) HAVING FACE VALUE OF RS. 3,00,000/- Acting on a specific intelligence, the officers of DRI, Kolkata & Berhampore had effected a seizure of Fake Indian Currency Notes (FI

Housing Loan limit under priority sector increased from Rs. 20 lakh to 25 lakh w.e.f. April 01, 2011

RBI/2010-11/517 RPCD.CO.Plan.BC.69/04.09.01/2010-11 May 9, 2011 The Chairman/Managing Director/ Chief Executive Officer [All Scheduled Commercial Banks (excluding Regional Rural Banks)] Dear Sir/ Madam, Housing Loan limit under priority sector Please refer to paragraph 6.1 of our master circular RPCD.CO.Plan.BC.10/04.09.01/2010-11 dated July 1, 2010 on lending to priority sector, wherein

Sebi protected CB Bhave in IPO scam alleges G Mohan Gopal

G Mohan Gopal, a former member on the board of the Securities and Exchange Board of India (Sebi), has alleged that the Sebi board “abused” its powers to protect CB Bhave from being subjected to any independent inquiry with “respect to his actions as NSDL chairman” during the 2003-06 IPO scam. In a letter to the Prime Minister, Gopal wrote, “As an outgoing (part time, independent) member

Reserve Bank of India liberalised opening of Escrow Accounts for Foreign Direct Investment transactions

Reserve Bank of India has liberalised opening of Escrow Accounts for Foreign Direct Investment transactions vide A. P. (DIR Series) Circular No. 58 dated 2 May 2011. Hitherto, opening of Escrow / Special Bank Account by Non-resident Corporate(s) for the purpose of acquisition/transfer of shares / convertible debentures of an Indian Company was permitted only in cases of Open Offers / Delisting / E

Powers and Functions Delegated To ROCs for Specified Provisions of Companies Act –Corrigendum

Section 637 of the Companies Act, 1956 – Delegation by Central Government of its powers and functions under Act – Powers & functions delegated to Registrar of Companies for specified provisions of Act – Corrigendum to Notification No. G.S.R. 222(E), dated 17-3-2011 CORRIGENDUM [F.NO. 5/7/2011-CL V], DATED 1-5-2011 In exercise of the powers conferred by sub-section (1) of section 637 of the

ICSI – Draft National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business and Global Reporting Initiative

Multi-Stakeholder Consultations Draft National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs) & Global Reporting Initiative (GRI) Sustainability Reporting Guidelines A Half-Day multi Stakeholder consultation is being organized by the Indian Institute of Corporate Affairs (IICA) and Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ)u

Now websites can track your IP address and location within a radius of about 690 meters

A new online tracking system will allow websites to pin point your location to within a few hundred metres – without you ever giving your permission. Internet sites will be able to work out where users are to within an average of 690m, less than half a mile, using information about their internet connection. At the moment they can only track users’ locations to within a radius of about 200 ki

LIC issuing receipts without affixing revenue stamps

Several branches of the country’s largest insurance company Life Insurance Corporation of India are allegedly causing huge loss to exchequer by issuing receipts without affixing revenue stamps. The matter came to light during a hearing before the Central Information Commission which directed the LIC to make public details of all the revenue stamps purchased by the Corporation between 2006-10.

Disobedience to Order of Arbitrator is an Offence

It is a prevalent belief that section 17 of the Arbitration and Conciliation Act, 1996 (‘the Act’) does not confer any power on the Arbitral tribunal to enforce its order for interim measure of protection, nor does it provide for judicial enforcement of any such interim order passed by the Arbitral tribunal. Consequently, it appears that section 17 of the Act is REDUNDANT; however, THIS COULD

Sebi warns Indian Companies over ‘fixing’ markets

In the wake of a spurt in allegations of fraudulent behaviour by India Inc, capital market regulator Sebi, gave a stern warning to corporates to be on the “right side” and not indulge in market manipulation and insider trading. “Some corporates, who ideally should not have fallen into this category or this trap, we are discovering that due to lack of focus this (illegal activity) is happenin

SEBI Fears black money flow and terror financing risks from Iran and North Korea

Fearing possible black money flow and terror financing risks from Iran and North Korea into the Indian stock market, Sebi has asked bourses to be cautious in dealings with funds and entities from those countries. The country”s top bourse NSE”s investigation department today said in a circular to the bourse”s members that Sebi in a letter dated May 5 has informed it about Iran and North Korea

RBI liberalises pledge of shares of Indian Company by Non-Resident Investors for business purposes

Hitherto, Authorised Dealers Category – I Banks (AD) were allowed to permit pledge of shares held by the Promoters as security for External Commercial Borrowings (ECB) availed by the Borrowing Resident Investee Company subject to prescribed conditions. As a measure of liberalisation and simplifications, the Reserve Bank of India (RBI) has now permitted ADs to allow pledge of shares of an Indian

RBI Circular on Regulatory and Audit Compliance

RBI/2010-11/520 Ref.DBS.ARS.BC. No.07/ 08.91.020/ 2010-11 May 11, 2011 The Chief Executives Officers All foreign banks operating in India Dear Sir/Madam, Regulatory and Audit Compliance It is observed that Indian operations of foreign banks functioning in India as branches of the parent banks generally do not have a separate Audit Committee vested with the responsibility of examining and re

CCI Releases Regulation of Combinations for Corporate Sector

The Competition Commission of India (CCI) today released the regulation of Combinations related with the implementation of provisions of Section 5 & 6 of Competition Act (the Combination Provisions, which have been envisaged to prevent creation of anti competitive environment in Indian economy),are coming into effect from 1st June, 2011. Elaborating the modalities of new rules to the media persons

Exemption from Liability for Hosting Third Party Information – Diligence to be Observed under Intermediary Guidelines Rules

The attention of Government has been drawn to news items in a section of media on certain aspects of the Rules notified under Section 79 pertaining to liability of intermediaries under the Information Technology Act, 2000. These items have raised two broad issues. One is that words used in Rules for objectionable content are broad and could be interpreted subjectively. Secondly, there is an appreh

Clarification Regarding Effective Date of Companies (Particulars of Employees) Amendment Rules, 2011

The Ministry of Corporate Affairs has clarified that its notification of 31st March, 2011 regarding Companies (Particulars of Employees) Amendment Rules, 2011 raising the limit of employee’s salary to be disclosed in the Directors Reports shall be applicable to all Director’s Reports under Section 217 of the Companies Act, 1956 approved by the Board of Directors on or after April 1st, 2011. It

Govt to redraft norms for appointing merchant bankers for PSU issues

The government is in the process of redrafting the proposal document format for appointment of merchant bankers to avoid the conflict of interest between the public and private share sale issues. “There was an issue in SAIL… That part (appointment of merchant bankers) of the document was drafted way back in 2001, we are trying to update that,” Disinvestment Secretary Sumit Bose told reporte

Govt approves FDI in Limited Liability Partnership firms

Approval for FDI in Limited Liability Partnership firms The Cabinet Committee on Economic Affairs today approved the proposal to amend the policy on allowing Foreign Direct Investment (FDI) in Limited Liability Partnership (LLP) firms. The FDI in LLPs will be implemented in a calibrated manner, beginning with the ‘open’ sectors where monitoring is not required, subject to the following condit

CSR: Rhetoric and reality

Social goals are welcome, but a firm cannot be expected to dilute its responsibility to shareholders. Governments that feel cheated should re-work their incentives. Social goals are welcome, but not at the cost of shareholders. No corporate leader today would dare deny that his or her enterprise has a responsibility to society. Corporate social responsibility (CSR) is now an accepted obligatio

Territorial Nexus Revisited: GVK Industries v. Union of India

We have previously discussed issues surrounding the application of the “territorial nexus” doctrine to income tax law in several posts (here, here, here and here). In its recent decision in GVK Industries v. Union of India, a Constitution Bench of the Supreme Court has confirmed that the doctrine applies to Parliamentary laws. The precise question of the constitutionality of Section 9(1)(vii)

Column : Don’t ban our futures

The growth of the commodity futures markets has been quite amazing in the last few years. Forward Markets Commission (FMC) data shows that volumes have been around Rs 120 lakh crore in FY11, which is almost 1.5 times India’s GDP at current market prices. Does this mean that commodity futures trading has finally arrived? Let’s go back to the basics. When futures trading were revived in 2003,

Provisions of s 194C do not apply towards the transportation charges paid to partners by partnership firm for use of trucks owned by the partners

CIT v Grewal Brothers – No doubt the firm and the partners may be separate entities for income tax and it may be permissible for a firm to give a contract to its partners and deduct tax from the payment made as per s 194C, but it has to be determined in the facts and circumstances of each case whether there was any separate subcontract or the firm merely acted as an agent as pleaded in the prese

SEBI modifies norms for appointment of its internal auditor

SEBI has modified the norms for appointment of its internal auditor, a move that enabled the capital market regulator to retain chartered accountants firm Chokshi & Chokshi for two more years. The decision to give a two-year extension to the firm was taken at the last Board meeting of the Securities and Exchange Board of India (SEBI). The earlier guidelines provided that the SEBI could hire an ac

Lok Adalat cannot pass order to pay insurance money – SC

The Supreme Court has stated that a Lok Adalat cannot pass an order to pay the insurance money when there was no compromise between the parties, in the case, Life Insurance Corporation vs Suresh Kumar. Lok Adalat cannot take over the function of the regular courts. In this case, the Lok Adalat tried to arrive at a compromise between the parties, but failed. Then it passed an order to LIC to pay Rs

Govt may hike penalty for improper use of names to 1000 times

The government is mulling hiking penalty for improper use of names and emblems conveying state patronage or ownership for the purpose of professional and commercial gains to Rs 5 Lakh. At present, the penalty for violating the provisions of the Emblems and Names (Prevention of Improper Use) of 1950 is only Rs 500. “The penalty has not been increased since the law came into force in September 19

Section 620A of the Companies Act, 1956 – Power to modify Act in its application to Nidhis, etc. – Amendment in Notification No. G.S.R. 978, dated 28-5-1963 as amended by Notification Nos. G.S.R. 84(E) & G.S.R. 517(E), dated 23-2-1988 and 31-8-2006 respectively

CL : Section 620A of the Companies Act, 1956 – Power to modify Act in its application to Nidhis, etc. – Amendment in Notification No. G.S.R. 978, dated 28-5-1963 as amended by Notification Nos. G.S.R. 84(E) & G.S.R. 517(E), dated 23-2-1988 and 31-8-2006 respectively NOTIFICATION NO. G.S.R. 326(E), DATED 8-4-2011 In exercise of the powers conferred by sub-section of section 620A read with sub

XBRL India invites expert on XBRL

In the recent times, XBRL has emerged as a novel way of electronic communication of financial and business data which is revolutionizing business reporting around the world. Considering the benefits attached with implementing XBRL in the preparation, analysis and communication of business information, the regulators in India have also decided to implement XBRL in their reporting. XBRL India, a co

Clarification Regarding service of documents by e-mode instead of Under Posting Certificate – MCA permits service of documents through e-mail

Finally, as a move to relieve the Corporate of huge financial burden of sending physical documents such as notices etc. by Registered Post instead of Under Posting Certificates after it being discontinued by the Postal Authorities, the Ministry of Corporate Affairs has come up with a Green Initiative of permitting the service of documents upon the Shareholders through e-mail or other permissible e

SEBI bars unregistered ICICI sub-broker from dealing in the capital market

Market regulator SEBI barred one Reena Bansal from dealing in the capital market and accused her of violating norms by acting as an unregistered sub-broker.”…restrain Reena Bansal from buying, selling or dealing in the securities market in any manner whatsoever or accessing the securities market, directly or indirectly, either for herself or for her clients or clients of Rajeev Bansal,” SEBI

In the absence of specific provisions Companies not to pay stamp duty on increased capital – HC

The Delhi High Court has held that a company is not required to pay the stamp duty on the increased amount of its authorised share capital. A bench headed by Justice S Muralidhar said this while allowing the plea of S E Investments Ltd, which challenged the direction of the Registrar of Companies (ROC) seeking stamp duty on increased amount in authorised share capital. “In the absence of a spec

Buyer’s credit – The Cheaper source of finance for importers

Buyer’s credit is the credit availed by an Importer (Buyer) from overseas Lenders i.e. Banks and Financial Institutions for payment of his Imports on due date. The overseas Banks usually lend the Importer (Buyer) based on the Letter of credit (a Bank Guarantee) issued by the Importers (Buyer’s) Bank. In fact the Importers Bank brokers between the Importer and the Overseas lender for arranging

Guidelines on 1 Percent interest subvention Scheme on housing loans upto Rs. 10 lakh –

RBI/2010-11/481 RPCD.SME & NFS. BC. No. 62/06.11.01/2010-11 April 21, 2011 The Chairman/Managing Director/ Chief Executive Officer All Scheduled Commercial Banks (excluding Regional Rural Banks) Dear Sir Scheme of 1% interest subvention on housing loans upto Rs. 10 lakh – Guidelines Please refer to our circulars RPCD.SME & NFS.BC.No.16/06.11.01/2010-11 dated August 9, 2010 and RPCD.SME

Merger and Acquisition rules to be notified in the first week of May

The Competition Commission will finalise rules for corporate merger and acquisitions by the first week of May, following which it will be mandatory for companies to seek the Commission’s approval for such deals. “The notification will be finalised in the first week of May and would be implemented from June 1, 2011,” Secretary in the Ministry of Corporate Affairs D K Mittal told reporters on

Government is Committed to bringing in a fair merger and Acquisition Regime in the Country however mergers that Create Monopolies or abuse of Dominance are Unaccetable – Murli Deora

Union Minister of Corporate affairs Shri Murli Deora has assured the stakeholders especially the CEOs and Representatives of Corporate India that the Competition Commission of India (CCI ) will speedily clear mergers that increase efficiencies due to economies of scale, combined production plants, integrating procurement and pooling of R&D resources. Shri Deora was addressing a One day Conference

The Romalpa Clause and Bankruptcy Protection

To a supplier or, more generally, to any commercial entity involved in the initial stages of a supply chain, protecting itself in the event of the bankruptcy or change in constitution of its principal buyers is a matter of great importance. It is therefore commonplace to find clauses in a contract creating, for example, a unilateral right to terminate in the event of change of control. Similarly,

Amendment to Companies (Central Government’s)General Rules & Forms,1956.

Amendment to Companies (Central Government’s)General Rules & Forms,1956. MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 26th March, 2011 GS.R. 259(E).-In exercise of the powers conferred by sub-section (1) of Section 642 read with Section 610B of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Central Gov

57 Indian companies figure in Forbes Global 2000 list of public companies

WASHINGTON : As many as 57 Indian companies including Reliance Industries , State Bank of India and Oil & Natural Gas Corp. figure in The Forbes Global 2000 list of public companies based on their rankings for sales, profits, assets and market value. Reliance with sales of $45.3 bn is ranked 121st in the list with three public State Bank of India Group (136, $29.1 bn), Oil & Natural Gas Corp. (172

Sebi to frame rules for art funds, antique investments to curb blackmoney in these

The Securities and Exchange Board of India (Sebi) may soon frame a stringent set of rules for funds investing in art works, antiques, coins and stamps, with an aim to check black money flow into these products and safeguard the interest of genuine investors. Sebi considers investment funds focussed on art works, antiques, coins and stamps as “Collective Investment Schemes”, which come under t

Setting up of Central Electronic Registry under the SARFESAI Act, 2002

RBI /2010-11/484 DBOD.Leg. No.BC. 86/09.08.011 /2010-11 April 21, 2011 All Scheduled Commercial Banks/Financial Institutions (Excluding RRBs) Dear Sir, Setting up of Central Electronic Registry under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 Pursuant to the announcement made by the Finance Minister in the budget speech for 2011-1

Govt to reconstruct 44000 missing trademark files

The government today said it will issue a public notice by next week to reconstruct 44,000 missing files from the trademarks office. The files will be reconstructed as per an undertaking given by the Controller General of Patents, Designs and Trademarks to the Delhi High Court which had issued directives in this regard. These files are related to registration of trademarks. “We have undertaken

Indian banker convicted in US on charges of extortion and threatening

Boston: An Indian investment banker has been convicted by a US federal jury on charges of extortion and threatening a New York state comptroller official to reveal an extramarital affair if a multi-million dollar pension contract was not awarded in his favour – in short, blackmail. Giridhar Sekhar, 41, of Brookline near here was convicted of one count of attempted extortion and five counts of in

New Companies Bill to be taken up in monsoon session

The new Companies Bill, which seeks to replace a 50-year-old Act, will come up for consideration and passage in the Monsoon Session of Parliament. “The Companies Bill will come in for discussion in Parliament in the Monsoon Session,” the Corporate Affairs Minister, Mr Murli Deora, told reporters on the sidelines of a FICCI event here today. The new Companies Bill, which was tabled in the back

Employee not liable to pay interest U/s. 234B for employers failure to deduct TDS on Salary

DIT vs. Maersk Co Ltd as agent of Mr. Henning Skov (Uttarakhand High Court – Full Bench)- where the assessee’s income is chargeable under the head “Salaries”, the person responsible for paying any income chargeable under the head “Salaries” shall at the time of paying, deduct income tax at source and failure on his part entails an obligation to pay interest under Section 234B of the Ac

Dividend from foreign companies

Indian promoters would do well not to invest abroad on their own, but only through the conduit of a company. Dividend Distribution Tax (DDT) regime is applicable only to Indian companies. The shareholders of such companies are exempt from tax on dividend received from such companies, with the tax at the rate of 15 per cent plus surcharge and education cess having been paid by such companies. I

Sebi's mandate on Cairn-Vedanta deal: Shareholders' option put down

There is some interesting debate on the recent Sebi mandate to Vedanta-Cairn to repudiate a call/put/pre-emptive rights in their share purchase agreement. Sebi's stand is both interesting and dangerous. However, Sebi is mainly the messenger of an archaic law. And the message deserves to be shot. Luckily, Sebi owns the handgun that is capable of quickly shooting down this quixotic law. The prob

Offering of Securities: Public or Private?

Today’s Economic Times carries a newsreport about a company that has 2.6 million shareholders, but nevertheless continues to be unlisted. If true, this oddity of circumstances calls into question section 67 of the Companies Act. That section provides any offer of shares or debentures made to 50 persons or more will be considered a public offering, which will require listing of the securities on

Foundation stone for Navi Mumbai Metro likely on May 1

The City and Industrial Development Corporation (Cidco) has decided to go ahead with the laying of foundation stone for Navi Mumbai’s first Metro on May 1. “We will be awarding the letter of intent after getting an approval of the Cidco board on Monday so that work starts immediately. The bhoomi poojan is planned on May 1,” said Tanaji Satre, managing director of Cidco. The agency is also

Attracting Sovereign Wealth Funds

Although there had been a great amount of discussion a couple of years ago regarding soverign wealth funds (SWFs), both in terms of their investments in the Indian markets and to to whether India should create one for itself, that seemed to have died down. This was largely because SWFs were expressly recognized in 2008 as foreign institutional investors (FIIs) under the SEBI FII Regulations, and m

Developers find a way around SC ruling on parking spaces

A Supreme Court ruling in 2010 may have prohibited developers from selling parking areas as independent units to flat buyers, but developers seem to have found a way around it. Developers are now offering car parking charges as part of the sale agreement value. This trend was noticed during the recently concluded property fair organized by the Maharashtra Chamber of Housing Industry wherein ma

Govt may allow 100 per cent foreign direct investment in sea plane operations

Government is planning 100 per cent foreign direct investment in sea plane operations as there is scope of phenomenal growth of sea plane, general aviation and helicopter travel. “With India having a long coast line, there is a need for concerted efforts to promote sea plane operations. They are significant for the economy of islands like Anadaman and Nicobar Islands and Lakshadweep,” said S

SEBI on Put and Call Options

The Vedanta/Cairn Energy deal brings the issue of put and call options back into the spotlight as SEBI has sought removal of those clauses from the agreement regarding sale of shares in Cairn India. Curiously enough, SEBI has adopted a strict stance on an issue that is far from being clear under Indian law. As we have discussed earlier, the enforceability of put and call options hinges upon a numb

Compliance with Corporate Governance Guidelines (CG Guidelines)

Ref:IRDA/F&A/CIR/CG/081/05/2011 Date:02-05-2011 To, CEO of All Life Insurers,Non Life Insurers and Reinsurer Dear Sir, Re: Compliance with Corporate Governance Guidelines (CG Guidelines) Attention is drawn to the Corporate Governance Guidelines issued by the Authority vide Circular no. IRDA/F&A/CIR/025/2009-10 dated 05th August, 2009, and Circular No. IRDA/F&I/CIR/F&A/014/01/2010 dated 29TH

Juris Corp partner to start up disputes, property practice

Juris Corp partner Huzefa Nasikwala is going independent to start his own litigation and real estate practice in Mumbai. Nasikwala, who was practicing independently and as an of counsel before joining Juris Corp in 2007 as a partner designate, said that his focus would primarily be on real estate and dispute resolution, including arbitration. While he had not yet recruited associates, he sai

Accounting Treatment of Enhanced Provision of Gratuity

Ref:IRDA/F&A/CIR/ACT/069/04/2011 Date:18-04-2011 The pay revision of the officers and employees has been carried out by the Public Sectors Insurance companies in the year 2010-11 and Government by Gazette, Notification dated May 24, 2010 has revised upward maximum limit for Gratuity under “Payment of Gratuity Act 1972” from Rs. 3,50,000/- to Rs. 10,00,000. The above factors will lead to

Partners have burden of proof in cheque bouncing cases that they were not in charge of the daily affairs of the firm

Rallis India Ltd. Vs. Poduru Vidya Bhusan & Ors. (Supreme Court) When partners of a firm issue cheques which are dishonoured, it is presumed that they were responsible for issuing them unless they prove that they were not in charge of the daily affairs of the firm. They have to discharge the burden during the trial under the Negotiable Instruments Act, the Supreme Court stated in the case, Rall

Large companies give small units a helping hand

Large corporate houses are helping micro and small enterprises (MSEs) to keep pace with the changing times, especially in the matter of introducing innovative measures to help them turn cost-efficient. Last month the logistics company DHL organised a CEO mentoring clinic in Chandigarh, which focussed on providing MSEs with insights on cost reduction and time management. Chandigarh has over 2,50

Manufacturing policy getting ready

BANGALORE: Union Commerce Secretary Rahul Khullar said on Monday that the Indo-European Union Free Trade Agreement is “likely to be concluded by the end of the summer, after another round of talks in May.” Speaking after inaugurating the new premises of the office of the Commissioner for Special Economic Zones (SEZ) and Export Oriented Units in Bangalore, Dr. Khullar said, “The FTA is not

Just what the doctor ordered for startups

Getting a business off the ground requires a range of skills and expertise that a startup can find daunting and expensive. Outsourcing is an affordable way out. But the focus of outsourcing itself is changing from cost-saving to hiring the best talent at the lowest price. The Internet is now opening up possibilities even for small businesses. PeoplePerHour.com, for instance, enables small busin

IT, ITES-BPO industry upbeat on 2011 outlook

After an initial setback due to the global recession, the Indian information technology (IT) and information technology-enabled services-business process outsourcing (ITES-BPO) industry is back on the high-growth path, according to the findings of a survey of SMEs in the sector, conducted by India MART Knowledge Services (IKS). The outlook for the future is also positive, as almost half of the

MMRDA pushes for link project

MUMBAI: The Mumbai Metropolitan Region Development Authority (MMRDA) is pushing ahead with its plans to build the trans-harbour link between Sewri and Nhava. Additional metropolitan commissioner, S Srinivas said they will have to update some of the data from the surveys and have written to the Maharashtra State Road Development Corporation (MSRDC) asking for the relevant papers. The MSRDC

Etiquette rules for banks on way

Bank customers may soon expect better services and speedy redressal of their grievances as the Reserve Bank of India is likely to consider a fresh set of rules to improve customer service practices. Almost a year after the RBI put in motion a process to improve customer service, a panel set up by the apex bank is ready to submit its recommendations later this month. Sources said the panel wa

Mhada will shop for land to build affordable houses

The Maharashtra Housing and Area Development Authority (Mhada) plans to acquire over 102 hectares of land from the market in 2011-12 for con structing affordable houses. The state government has set aside Rs 8.55 crore for this purpose in its budgetary estimates for the current fiscal. Only 16.02 hectare of land was acquired in 2010-11. Officials said that the move is influenced by an acute

New Sahaj tax form asks information on agricultural income

The Income Tax Department has asked taxpayers to furnish details earned from agriculture in its newly modified I-T return form — Sahaj — for assessment year 2011-12. Known as Saral-II and originally meant for the service-class, the Sahaj form has a column devoted to income from agriculture. “This information on agricultural income is for record only and not to be taxed,” a senior I-T offic

Mumbai realtors insert new clauses in allotment letters

Amid higher costs, slow demand and regulatory hurdles, many builders in the country's hottest property market, Mumbai, are inserting new clauses to palm off some of the uncertainties to buyers. The allotment letters given to home buyers contain clauses like provisions for cost escalation, project abandonment, inability to commence construction, and also eventuality of non-disbursal of loan fro

Finance Ministry for re-negotiation of tax treaty with Mauritius

In a significant development towards renegotiation of tax treaty with Mauritius, the Finance Ministry has written to the Ministry of External Affairs to take up the issue of including more areas of information exchange in the agreement between the two countries. The existing tax treaty is being misused by many third country investors to avoid paying taxes. In the revised Double Taxation Avoidan

India for review of tax treaty with Mauritius

India is set to step up pressure on Mauritius to review its tax treaty with the country. The finance ministry has asked the ministry of external affairs to initiate talks with Mauritius on the issue. "The finance ministry has written to MEA for renegotiation of the tax treaty to ensure exchange of information of banking transactions and assistance in tax matters," Central Board of Direct Taxes

Value-hungry companies may scrap their Sebi-cleared IPO plans

Scores of companies such as Sterlite Energy and Lodha Developers may have to scrap fund-raising plans for now as they let go the regulatory permission for float, awaiting higher valuations for their businesses than what investors are willing to pay. Most companies that got regulatory approval about a year ago may have to refile offer documents as the regulator doesn't allow initial public offe

Government to issue biometric PAN cards to taxpayers

The government has decided to issue biometric PAN cards to taxpayers across the country to weed out the problem of duplicate and fake ones. The decision was taken recently by the Finance Ministry and it comes in the wake of a Comptroller and Auditor General (CAG) report that asked the Income Tax department to ensure that a single tax payer is not issued multiple cards. The proposed new biometri

No additional Guidelines for the Issue of Compulsory Licences – DIPP

The Department of Industrial Policy and Promotion (DIPP) issued a Discussion Paper on Compulsory Licencing of Patents in August 2010. The Department received 38 responses. Ten of these responses were received from stakeholders based in countries outside India including Thailand, South Africa, USA , UK and Japan. Eleven responses were received from pharma manufacturers associations, and business pr

What is Cheque Truncation and Why Cheque Truncation in India?

1. What is Cheque Truncation ?Truncation is the process of stopping the flow of the physical cheque issued by a drawer to the drawee branch. The physical instrument will be truncated at some point en-route to the drawee branch and an electronic image of the cheque would be sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc

What is the Jan Lokpal Bill, why it’s important and Salient features

The Jan Lokpal Bill (Citizen’s ombudsman Bill) is a draft anti-corruption bill drawn up by prominent civil society activists seeking the appointment of a Jan Lokpal, an independent body that would investigate corruption cases, complete the investigation within a year and envisages trial in the case getting over in the next one year. Drafted by Justice Santosh Hegde (former Supreme Court Judg

ROC will take Penal action for wrong Certification of e-forms under the Companies Act, 1956 by the Practicing CA, CS, ICWAI

No 17/102/2011 CL-V Circular 14/2011, Dated: 08.04.2011 Subject:- Certification of e-forms under the Companies Act, 1956 by the Practicing professionals 1. Ministry of Corporate Affairs has been steadily progressing towards total electronic filing and approval regime. Objective is to do away with human intervention in MCA approvals to the maximum extent possible. 2. For this purpose,

Lawyers stage 'Rasta Roko' demanding for a Bombay HC bench

Lawyers from Kolhapur, Sangli and neighbouring district staged 'rasta roko' blocking Pune-Bangalore national highway in support of their demand to set up Bombay High Court bench in this city. Besides lawyers, political parties leaders, social workers and others also participated in the rasta roko yesterday. Rasta roko agitation created problem to traffic on the national highway for about on

Maha to review Special Township Project scheme

The Maharashtra government announced a review of the Special Township Project scheme today, saying that the objective of the scheme, which was to provide affordable housing, had not been achieved. Under it, adeveloper has to acquire 100 acres of land to set up a township, and if there is a shortfall, government chips in. In return, the developer has to provide affordable housing on 10 per cent of

U.K Government Issues Bribery Act Guidance, Sets Effective Date

On March 30, 2011, the U.K. Ministry of Justice released its long-awaited Guidance with respect to The Bribery Act of 2010, detailing the Act’s scope and jurisdictional applicability. The Guidance, which can be found here, has quickly been criticized in some quarters for “watering down” the Act, particularly with respect to the jurisdictional scope of the Act’s commercial bribery provision

Tax treatment of Capital gain on sale of Assets by Charitable Trust/NGO

BACKGROUND 01 The definition of income under section 2(24) includes Capital Gains and therefore for the purposes of section 11, Capital Gains should form part of the income and consequently it should be treated at par with any other income under section 11. Section 11(1A), which deals with treatment of Capital Gains, was not there during the inception of the Act. In the absence of any provision

Country’s Population Reaches 121 Crore as Per Census 2011

Country’s Population Reaches 1210 Million as Per Census 2011 Up Remains Most Populous State With 199 Million Overall Sex Ratio Reaches 940 – 7 Points Increases Over 2001 Literacy Rate Goes up to 74.04 Percent from 64.83 Percent The population of the country as per the provisional figures of Census 2011 is 1210.19 million of which 63.72 million (51.54%) are males and 586.46 million (4

Service tax on foreign exchange transactions capped at Rs 5,000

The government today said service tax on foreign exchange transactions would be capped at Rs 5,000. The announcement will provide relief to market participants who feared high tax incidence would lead to a sharp decline in foreign exchange transaction volumes. According to a notification, tax for foreign exchange transactions will be calculated at 0.1 per cent of the gross amount of currency ex

Amendment RTI Act to prevent abuse

The state government has been asked to examine the feasibility of modification in the Right to Information (RTI) Act. A section of legislators on Thursday claimed that it was being widely misused. Congress MLA Ashok Jadhav supported the suggestion. I know people who do nothing but file RTIs. You should see the cars they have, he added. Home minister R R Patil said RTI was a central Act. Walse-P

NBFCs can’t be partners in partnership firms- RBI

The Reserve Bank on Wednesday prohibited Non-Banking Finance Companies (NBFCs) from contributing to the capital of a partnership firm or become a partner of such entities. The central bank also asked NBFCs, which have already contributed capital or are partner in such firms, to exit from such arrangements at the earliest. “In view of the risks involved in NBFCs associating themselves with par

Changes to FDI Policy – Part IV: Downstream Investments

Indirect foreign investment into Indian companies had been a subject matter of ambiguity in the FDI policy. For instance, if an Indian company (that has foreign investors) makes investments into another Indian company, would that downstream investment be treated as domestic investment or foreign investment? While rules govern such investment? In order to streamline the policy, the Government ha

Changes to FDI Policy – Part III: Previous Venture

A significant condition in the FDI policy, first included in Press Note 18 of 1998 operated to restrict foreign investments. It required foreign investors to obtain prior Government approval to invest where they had a previous joint venture in India. In such cases, the automatic route was not available. This became an obstacle because FIPB, in considering applications, required a no-objection lett

Changes to FDI Policy – Part II: Shares Against Non-Cash Consideration

The FDI policy allows issue of shares by Indian companies to foreign investors only against cash remittances received through normal banking channels. However, the only exceptions to this are conversion of external commercial borrowings outstanding as well as payment obligations towards lump sum fee or royalty for technical collaborations. Any other type of transaction involving an issue of shares

Changes to FDI Policy – Part I: Convertible Securities

The Department of Industrial Policy and Promotion (DIPP), Government of India today released its new edition of the Consolidated FDI Policy, Circular 1 of 2011 that comes into effect April 1, 2011. This is part of the bi-annual review process that the DIPP commenced last year so as to ensure that the policy is in tune with dynamics in the economy and industry. The recent round of review has int

Govt liberalises FDI policy to boost inflows

Relaxing rules for foreign direct investment (FDI) in the country, the Government today decided to permit issuance of equity to overseas firms against imported capital goods and machinery. Furthermore, the norms for overseas investment in production and developments of seeds have been liberalised. “After stakeholder consultations, the Government has now decided to permit issue of equity, unde

Ex-Amarchand partner Hariharan joins Barings PE to head up S. Asia legal

ShareExclusive: Former Amarchand Mangaldas partner and current Paul Hastings Hong Kong lawyer Kirti Ram Hariharan will join Barings Private Equity Asia as deputy general counsel (GC) responsible for South Asia. Hariharan, who had left Amarchand in 2008 and joined Paul Hastings’ Hong Kong office as an associate thereafter, will join Barings by June 2011, according to sources with knowledge of

Transfer Pricing – Prior Years’ data cannot generally be relied upon to justify Arms Length Price

Summary of Findings:- • The OECD guidelines are not of binding nature and even the Proviso to Rule 10B (4) provides that any subsequent year data cannot be considered. The contemporaneous data of relevant financial year is to be used for making the comparable analysis for arriving at the ALP unless it is proved otherwise • For arriving at the net margin of operating income, only operatin

Where shares are held as stock-in-trade no part of interest on borrowed funds can be disallowed u/s 14A as incurred in relation to Dividend income

Yatish Trading Co.P ltd. Vs ACIT (ITAT Mumbai) Summary of Findings:- In the case of a trader where shares are held as stock-in-trade no part of interest on borrowed funds can be disallowed u/s 14A as incurred in relation to Dividend income. The interest on borrowed funds used for trading activity is an allowable expenditure under section 36(1)(iii) and the same cannot be treated as the ex

Companies Bill likely to be tabled in next Parliament session

Parliament is likely to take up the new Companies Bill , which seeks to replace a half-a-century-old Act, in the next session. Sources in the Ministry of Corporate Affairs said that the Companies Bill, 2009, will be brought for passage before Parliament in the next session. The draft Bill will be sent to Cabinet in the first week of May, sources said. The new Companies Bill, which was tabled in

Prosecution of Directors – General Circular No. 08/2011, Dated the 25th March, 2011

General Circular No. 08/2011, Dated the 25th March, 2011 To, All Regional Directors, All Registrars of Companies, All Official Liquidators. Sub: Prosecution of Directors – Regarding Sir, Penal actions for defaults committed under the Companies Act, 1956 are either to be taken against an “officer in default” or a “director(s)” or “persons” as provided in the rel

Mobile phones- A button to send emergency alerts!

In a bid to help pro-democracy campaigners, the US government is developing a mobile phone with a ‘panic button’ that can wipe out its address book and send emergency alerts. The new technology also includes a special application that can be activated if the smart phone is confiscated by security authorities. The US wants to equip the activists with the new tools to fight back the repressive g

Majority of Dharavi dwellers may be ineligible for rehousing

Even as the Dharavi redevelopment project seems likely to be pushed with renewed vigour by the new state government, fresh revelations threaten to put a big question mark over the rehabilitation of over 3 lakh slum residents, with some officials warning of a potential law-and-order problem. A preliminary assessment carried out by the competent authority—BMC assistant commissioner (G-North war

Sebi to outsource processing of investor complaints

Faced with the Herculean task of handling lakhs of investor complaints, market regulator Sebi plans to rope in third party agencies for processing and maintenance of these grievances. The decision to outsource processing and maintenance of investor grievances has been taken by Sebi to help it resolve these complaints on a fast-track basis, a senior official said. Incidentally, Sebi is currently

Simplification in Procedures and Rules to Bring Transparency in Service Delivery

In order to cut timelines and to bring transparency in service delivery, the Ministry of Corporate Affairs has simplified certain Procedures and Rules. Some of the important Procedures which have been simplified are as under: – Simplification of issuing Director Identification Number (DIN) process: As per section 253 of the Companies Act, 1956, no person can be appointed as Director of the Co

Companies may have to file balance sheet in XBRL form from July 2011

The government said it is planning to make it mandatory for corporates to file balance sheets with it in data form, using XBRL (eXtensible business reporting language) technology, from next fiscal. Currently companies file their annual returns and balance sheets with the Ministry of Corporate Affairs (MCA) by filing up an e-form. To start with, MCA will make companies with paid up capital of R

Legal Metrology Act, 2009 in place of Standard of Weights and Measures Act, 1976 and 1985 w.e.f. 1-4-2011

Legal Metrology Act, 2009 has received assent of President and is effective from 1-4-2011. The new Act has replaced Standard of Weights and Measures Act, 1976 and Standard of Weights and Measures (Enforcement) Act,1985. Provisions of declarations on pre-packaged commodities are contained in new Act also. Hence, the provisions of MRP valuation for excise purposes will continue under new Act also [s

National Interest Paramount, Not MNCs’ Contractual Rights: SC

The Supreme Court has ruled that private companies cannot complain about violation of their contractual rights by government when national interest is involved in awarding contracts for public projects involving taxpayers' massive money. A bench of justices VS Sirpurkar and TS Thakur in a judgment expressed anguish at the manner in which the Tehri Pump Storage Plant could not be taken up for

IFRS: More time will benefit all

Instead of notifying Indian IFRS standards in bits and pieces with a lot of loose ends, it will be worthwhile to adopt a holistic approach taking some more time to address all issues in full before implementation. Finally the Ministry of Corporate Affairs notified 35 Indian IFRS standards (Ind-AS), without announcing the implementation date. Therefore there is no guarantee that the April 1, 201

Difference between 2G and 3G

2G refers to second generation wireless telecommunication technology developed mainly for voice services and slow data services with data rates upto 9.6Kbps whereas, the 3G (3rd generation) mobile telecommunications is the generic name for the next generation of mobile networks that combines wireless mobile technology with high data rate transmission capabilities. The 3G network is capable of prov

Changing role of internal audit

Internal audit functions are shifting away from hard, tangible controls toward softer ones. An internal audit group can add significant value to an organisation by reviewing the risk management processes and ensuring that the right controls are put in place. Internal Audit (IA) was once viewed as a finance policing function. This narrow focus did not survive as many problems were outside t

No Scheduled Caste label for Dalit Muslims, Christians

The Centre seems tilted In opposition to the inclusion of Dalit Christians and Muslims in the Scheduled Castes list, arguing the necessitate for evidence to show that converts continued to face discrimination of the same degree as before their exit from the Hindu fold. The Union law ministry has cited a SC judgment dismissing the claim that the constitutional provision limiting the SC tag to Hi

Nomination Committees of Corporate Boards

The recent episode relating to the nomination of directors for appointment on the board of Hewlett-Packard Co. brings to the fore the role of the nomination committee. Institutional Shareholder Services (ISS), a shareholder advisory group, recommended a vote against certain nominees on the ground that HP’s nomination committee was heavily influenced by the HP CEO, Leo Apotheker. While HP’s act

Pledge of Demat Shares: Implications Under Takeover Regulations

A somewhat peculiar situation came up for consideration of the Securities Appellate Tribunal (SAT) in Liquid Holdings Private Limited v. SEBI, on which SAT passed its order on March 11, 2011. Background Liquid Holdings Private Limited (Liquid) was one of the promoters of Blue Coast Hotels Limited (the Target). Morepen Laboratories Limited, a group company of Liquid, obtained loans from two

M Dhruva takes on corporate partner after doubling headcount in first year

Exclusive: M Dhruva & Partners (MDP) has hired former J Sagar Associates (JSA) senior associate Dipali Sarvaiya Sheth as a corporate partner to edge towards full-service law firm status. MDP founding partner Nishit Dhruva told Legally India: “Basically Dipali is into hardcore M&A practice which she has been doing at JSA. The idea would be to develop MDP as a full service law firm.” “W

Recognizing Aadhaar Number for Inclusion in KYC Norms

Government of India vide notification dated December 16, 2010 has recognized the letter issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar Number as an “officially valid document” to satisfy the ‘Know Your Customer’ (KYC) norms for opening small accounts in banks. This is expected to promote the financial inclusion of the poor and

KYC Process Delay for Mutual Funds May Hit Investors' Tax Plans

Delay on the part of CDSL Ventures to complete the know-your-client process for mutual funds will derail the tax planning of many investors looking to save taxes by investing in equity linked savings scheme, or ELSS. With just 16 days for the tax season to end, CDSL Ventures is staring at a huge pile of know your-client (KYC) submissions waiting to be cleared. According to three wealth managers

Government may push key reform Bills in monsoon session

The United Progressive Alliance (UPA) government has set its eyes on the monsoon session of Parliament, to be held in July-August, to push its key reform Bills. The curtailed schedule of the ongoing Budget session, with its predominant agenda of passing the Budget, has left very little space for government managers to follow the original routine. While the Land Acquisition Amendment Bill is wai

Ceiling on salaries of CEOs of public limited companies

Public limited companies cannot pay their executives salaries beyond a percentage of their profits, while listed companies may do so with government permission, Parliament was told today. 'For Public Limited Companies and their subsidiaries ceiling as percentage of profits is already prescribed,' Minister of State for Corporate Affairs R P N Singh said in a written reply in Rajya Sabha. Sin

VAT revoked on foodgrains, other essentials

The Jharkhand government today revoked VAT on foodgrains and other essential commodities. Deputy Chief Minister Hemant Soren announced this in the state Assembly that food grains, blankets, handkerchief, pillow covers and bedsheets would be tax-free. However, the increase of 14 per cent from 12 per cent VAT on motor parts would stay. The government imposed VAT on these commodities a couple of

Jurisdiction of Companies Act under which SFIO is functioning is restricted to India only

The jurisdiction of Companies Act, 1956 under which the SFIO is functioning is restricted to the territory of India. Investigation regarding diversion of funds outside the country, is being carried on by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) for which they have the requisite powers. This was stated by Minister of State for Corporate Affairs, Shri R.P.N. Singh w

Amendments to the Prevention of Money Laundering Rules, 2005

RBI/ 2010-11/425 UBD. BPD. (PCB) No. 38 /12.05.001/2010-11 March 15, 2011 The Chief Executive Officer All Primary (Urban) Co-operative Banks Dear Sir, Amendments to the Prevention of Money Laundering Rules, 2005 We forward a copy of the Government of India Notification (No. 14/2010 / F. No. 6/2/2007 – ES) dated December 16, 2010 on the subject for necessary action. Yours fait

Waiver of a Loan - Capital or Revenue?

Recently, the Delhi High Court was called on to decide the interesting question of the tax treatment of loans and interest waived by financial institutions. In Logitronics v. CIT, the Court considered two cases which raised similar issues, and held that the treatment of the waived loan amount would depend on the purpose for which the loan was taken. In the first case, the assessee had taken lo

Court of Appeal on Concurrent Liability

Earlier this year, the UK Court of Appeal was called on to consider an important question dealing with concurrent liability in contract and tort. The facts in Robinson v. Jones involved the defective construction of a house by a builder, which caused economic loss to the purchaser. However, the contractual remedy was barred by limitation. As a result, the purchaser sought to argue that he had a co

New law being proposed to tackle piracy in Indian waters

Faced with a formidable enemy snapping at its sovereignty at sea, India proposes to bring a legislation that would empower its forces to take the menace of piracy head-on and deal with pirates gnawing at its territorial supremacy effectively. With Somali pirates get audacious and inching towards the Indian coast, the matter has assumed greater proportions, not just security of the ships passin

Govt releases draft Mines and Minerals (Development and Regulation) Act, 2010

Mines and Minerals (Development and Regulation) Act The draft Mines and Minerals (Development and Regulation) Act, 2010 was hosted on the website of Ministry of Mines (http://mines.nic.in) on 3rd June, 2010. The proposals received from the State Governments with reference to new legislation being framed pursuant to the National Mineral Policy, 2008 are presently under consideration of a Group o

No new law to deal with illegal immigration- Govt

Admitting that the country was facing a persistent problem of illegal immigration, the government has ruled out a fresh legislation to deal with the issue saying stringent mechanisms were already in place. Under the existing Foreigners’ Act 1946, there is enough provision for identification, detention and deportation of illegal immigrants and thus no new mechanism is required, Minister of St

SAT defers PwC-Sebi case to March 15.

The Securities Appellate Tribunal today adjourned the hearing in the PriceWaterhouseCoopers-Sebi case to March 15, a company official said. The matter came before SAT yesterday. The case relates to the multi-crore rupee Satyam accounting scam wherein its Founder B Ramalinga Raju admitted to cooking up the company books. PwC was the auditor to the IT major at that time. Market regulator Securit

Foreign banks’ headcount down over 6 Percent – RBI

The employee strength of foreign banks in India dropped by over six per cent in 2010, with as many as 19 of the 32 overseas lenders in the country reporting a dip. According to the ‘Statistical Tables Relating to Banks of India’ released by the Reserve Bank of India, from 29,582 in 2009, the number of employees fell to 27,742 in 2010, a fall of 6.22 per cent. Among those banks with a major

Number of working days in Courts governed by the rules framed by the respective Courts

The working days in the High Courts are regulated by the rules framed by the respective Courts. According to available information, all High Courts in the country normally have 210 working days in a year. The number of working days of the District/Subordinate Courts are regulated by the concerned High Court. However, no data about the number of working days in the lower courts is maintained Centra

Law Commission recommends uniform age of marriage for both boys and girls

The Law Commission of India in its 205th Report had made recommendation for a uniform age of marriage of 18 years for both boys and girls. However, the Government is of the view that the difference in the age of marriage (21 years for boys and 18 years for girls) was deliberately inserted in the statutes in view of the social realities. This information was given by Dr.M.Veerappa Moily, Minister

FM announces incentives for investment in education, health

Finance Minister Pranab Mukherjee today made a slew of announcements, including to bring investments in education and health segments under the infrastructure sector and special grants for women self-help groups and fishermen. Replying to the discussion on the Budget for 2011-12 in Lok Sabha, Mukherjee said : “There is a need to further accelerate the creation of infrastructure in this (healt

Write your mobile numbers on claim forms and get your P.F. claim status on mobile

EPFO has launched a SMS based service for the benefit of all stakeholders. While submitting your claims, write your mobile number on top of the form. Attach a clear photocopy of first page of your bank passbook. A SMS will be sent to the mobile number about the status of your claim.

Penalty Provision in respect of delay in payment of P.F. dues

Penalty Provision in respect of delay in payment of P.F. dues 1. Delay in deposit of P.F. dues attracts penal damages. Damages are levied at the following FLAT RATES: For 0 — 2 months delay – @ 5 % p.a. For 2 — 4 months delay – @10 % p.a. For 4 — 6 months delay – @ 15 % p.a. For delay above 6 months – @ 25 % p.a. (subject to a maximum of 100%) 2. Levy of damages at less

ROC fees up to Rs. 50000 can be paid only online w.e.f. 27th March, 2011

Regarding Payment of MCA fees –electronic mode- General Circular – dated 09.03.2011 No. HQ/9/2002-Computerization Government of India Ministry of Corporate Affairs 5th Floor, A Wing, Shastri Bhavan Dr. R.P. Road, New Delhi-110001 Dated 9th March, 2011 CIRCULAR Sub: Payment of MCA fees –electronic mode-regarding Ministry has reviewed the processes involved in delivery of im

Compulsorily Online Payment of MCA fees from 27th March 11 of Fees Less then Rs. 50000 and 1st October’2011 of Fess more then Rs. 50000

The Ministry of Corporate Affairs has reviewed the processes involved in delivery of important services to stakeholders, with a view to identify and improve the components causing delay in disposal of applications. Payment confirmation is found to be a major bottleneck in delivery of services in respect of offline payment made by physical challans. It was found that often there was a delay in conf

Chinese Companies Want the Big 4 Magic

“Companies are under pressure from investors to get the best auditor they can,” said Paul Gillis, an accounting professor at Peking University in Beijing. More than 200 Chinese companies are listed on U.S. exchanges, and hundreds more trade on over-the-counter bulletin boards. In the last five months, at least 15 have upgraded to a Big Four auditor — Deloitte, Ernst & Young, PricewaterhouseC

Actions Against Independent Directors

On March 11, 2011, SEBI passed an order in relation to Pyramid Saimara Theatre Limited (PSTL) restraining three of its independent directors (Mr. K.S. Kasiraman, Mr. K. Natarahjan and Mr. G. Ramakrishnan) from being independent directors or members of audit committees of any listed company for a period of two years from March 11, 2011. The order was passed on the ground that these independent d

SEBI bans 3 independent directors of Pyramid Saimira for 2 yrs

Marker regulator SEBI today barred three independent directors and members of audit committee of Pyramid Saimira from holding a similar position in any listed company for two years for giving false and misleading statements. http://economictimes.indiatimes.com/topics.cms?query=g%20ramakrishnan These independent directors are K S Kasiraman , K Natarahjan and G Ramakrishnan. “(SEBI) restrain

SEBI guidelines to allow direct investment by foreign investors into MFs

Market regulator SEBI will soon come out with guidelines for foreign investors undertaking direct investments in mutual funds, a senior official said today. “SEBI will issue the guidelines allowing foreign investors to invest in mutual funds shortly…We are working with the Reserve Bank and the Finance Ministry (for allowing FIIs entry into mutual funds)…it is a matter of weeks and not months

A misconceived proposal on LLPs

The logic that the LLP is, on most aspects, akin to a ‘Company' and can be levied MAT is flawed. A distinct tax treatment of LLPs is needed. Limited Liability Partnerships (LLP) are governed by the Limited Liability Partnership Act 2008. It has been conceived of as a body corporate with legal entity – separate from a firm governed by the Partnership Act – as a form of business organis

Companies Bill unlikely to be passed in current session

The Ministry of Corporate Affairs (MCA) today said the Companies Bill 2009, which seeks to replace a half-a-century-old Act, is not likely to be passed in the ongoing Budget session of Parliament. "We are working on the Companies Bill. But because Parliament is being cut short, so we may not be able to pass it in this session", Minister of State for Corporate Affairs R P N Singh told reporters

Draft cos bill grants govt power to block multiple-layer setups

NEW DELHI: The draft Companies Bill has sought discretionary powers for the government to stop a company from establishing multiple layers of subsidiaries if it is found abusing this right. The law, at present, allows firms to establish any number of subsidiaries, which in turn could set up their own subsidiaries, and so on. The corporate affairs ministry is of the view that such a layered

Ministry of Environment and Forests accepts proposal to make Environment Protection Act violation non bailable

The Ministry of Environment and Forests (MEF) has accepted a proposal for making violation of the Environment Protection (EP) Act a non-bailable offence. The Ministry had appointed a committee headed by its senior officer J M Mauskar to suggest ways to make the Act more effective. The Committee had given its report in January. The Ministry while placing the Report on its website yesterday sa

Companies may have to induct at least one female independent director

Coinciding with International Women’s Day , the Corporate Affairs Ministry on Tuesday said it would make it mandatory for companies having five or more independent directors to have at least one female independent director. Companies having five or more independent directors would have to necessarily have at least one female independent director, Corporate Affairs Minister Murli Deora said.

Foreign Investors Will Have to Commit to Money Laundering Rules

Foreign investors may have to give a commitment that they will abide by the country's stringent money laundering laws if a proposal mooted by the department of industrial policy and promotion (DIPP) is accepted. The proposal is included in the draft of the revised foreign direct investment (FDI) policy circulated by DIPP. "A meeting of senior officials from all concerned departments and ministries

Interested Shareholders May Lose Vote

VOTING ON SPECIAL RESOLUTIONS Sebi seeks to protect small investors from abusive related-party transaction, hopes to ensure impartial resolution on contracts The Securities and Exchange Board of India (Sebi) has proposed to suitably amend a portion of Clause 166 of the Companies Bill, 2009, disallowing interested shareholders from voting on special resolutions required for related-party

North-East to get 3 new high courts

Three new high courts in the north-eastern states of Tripura, Manipur and Meghalaya may soon be set up as Law Minister Veerappa Moily has submitted in a memorandum to the union cabinet in a move that would require amendment of the North-Eastern Areas (Reorganisation) Act 1971. Moily assured a delegation of visiting Members of Parliament (MPs) from the seven north-eastern states that an amendme

Budget fall-out: Litigating associates will have to charge their law firms service tax

Exclusive: Law firms’ litigation associates could find themselves liable to have to charge service tax to their law firms and account for it to the Revenue under the Budget’s new service tax rules that apply to individuals representing businesses in courts or tribunals. Economic Laws Practice (ELP) associate partner Nishant Shah and Vaish Associates indirect tax head Shilpa Sharma confirmed

MFI Regulations May Be In Place by April

The Reserve Bank of India may start implementing some of the proposals of the Malegam committee on microfinance regulations, including a cap on lending rates, as early as April, said governor Duvvuri Subbarao. The committee, set up in October 2010 under the chairmanship of YH Malegam, had recommended the creation of a category of non-banking finance companies (NBFCs) within the microfinance sec

Govt’s green signal to Banking Laws Amendment Bill

The government today gave green signal to the Banking Laws Amendment Bill that seeks to align the voting rights in banks in proportion with the equity holding. Presently, the voting rights of a shareholder is limited to 1 per cent in state-owned banks and 10 per cent in private banks irrespective of the equity holding. The Amendment Bill, which was cleared by the Union Cabinet, will now be t

Ascent Capital exits from Koutons Retail at a loss

Three months after a spate of lawsuits were filed in the Delhi high court by suppliers to recover their dues from Koutons Retail India Ltd, Ascent Capital, one of the principal investors in the cloth seller, has exited the firm at a loss and considers the investment a “write-off”, said two executives at the private equity (PE) firm briefed on the development. “We have completely exited Ko

Kuwait govt's arm invests in Renuka Ramnath's PE fund

Multiples Alternate Asset Management, a private equity (PE) fund founded by Renuka Ramnath, the former CEO of ICICI Venture, has received Rs 325 crore ($70 million) for its offshore fund from the Public Institution for Social Security (PIFSS) — a pension fund run by the Government of Kuwait. With this fund, Multiples has achieved a corpus of more than $425 million. It is targeting a size of $450

On March 2, 2011 -- Mahashivaratri

The Hindu festival of Mahashivaratri is celebrated on the 14th day of the dark fortnight of the Magh month, as per the Hindu lunar calendar. The Shiv principle is most active on this day of the year. Maha Shivaratri literally means 'the night (ratri) of the Supreme God principle (Shiva)'. Accordingly, the various religious rituals and observances of this festival take place chiefly at night. Hind

Major Highlights of Karnataka State Budget 2010 -11

Revision in stamp duty rate o Stamp duty on sale agreement reduced from 0.25% to 0.1% limited to a maximum of Rs.20,000/-. o Stamp duty on joint development agreements and GPA at 1% of market value limited to a maximum of Rs.1.5 lakhs. o Stamp duty on agreements relating to shares, debentures and other marketable securities reduced from Rs.200 to Rs.50 and on note or memos given to brokers, dep

What is Dividend and Dividend yield?

Dividend is the share of the profit that a company decides to distribute to its shareholders. While the company pays tax on the distributed dividends, the shareholders can enjoy their dividends tax-free. Dividends are paid out of the standalone profits of the company. Thus, if a company has made loss on standalone basis and its subsidiaries are profitable, the company would not be able to pay out

Branch Office set up in India which merely remunerated employees seconded by US Group Company does not constitute a Permanent Establishment in India

Recently, the Delhi bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Whirlpool India Holdings Ltd. v. DDIT [201 1-TII-15-ITAT-DEL-INTL] held that Branch Office set up in India which merely remunerated employees seconded by US group company does not constitute a Permanent Establishment (PE) in accordance with Article 5 of India- USA tax treaty (the tax treaty) and therefore

Making UID Mandatory for Securities Transactions

Unique Identification Authority of India (UIDAI) has suggested constituting a joint working group of Securities and Exchange Board of India (SEBI) and UIDAI to work out the modalities for recognizing ‘Aadhaar’ as a proof of address and proof of identity for Know Your Client (KYC) purposes in the securities market. The Unique Identity number will eventually form the basic, universal identity

SEBI Laws-Section 4 of the SEBI Act, 1992 – Management of the Board – Amendment in Notification No. S.O. 147(E), dated 21-2-1992

NOTIFICATION NO. S.O. 388(E), DATED 11-2-2011 In exercise of powers conferred by sub-section (1)(c) of section 4 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Central Government hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs, number S.O 147(E), dated the 21st Februa

I-bankers fret as Sebi tells them to reveal track record

Investment bankers are disturbed at a discussion paper circulated by the capital markets regulator last year, requiring them to disclose their past track record when they set about a fresh offer document. Track record in this context is traditionally understood to mean not only the company and its issue size handled in the past by a banking entity, but also the movement of its shares. Investme

Govt to release Rs. 150 coin soon

For the first time in the country’s minting history, government will issue coins of Rs. 150, marking the number of years of taxation in India. The special coins, to be released by Finance Minister Pranab Mukherjee before his Budget speech, will also be brought out in Rs. 5 denomination on the occasion of completion of 150 years, from 1860 to 2010, of the Income Tax department. This is the firs

Legal order should adapt itself to change: PM

Calling for legal empowerment of the poor and vulnerable, Prime Minister Manmohan Singh today said the legal order must constantly adapt itself to changes in a fast changing world to retain its relevance. Inaugurating the 17th Commonwealth Law Conference, the Prime Minister said legal empowerment, development and democracy are demonstrably intertwined as the rule of law can no longer be divorce

Keep legal ethics for healthy judiciary: Pratibha Patil

President Pratibha Patil today advised lawyers to accept the new challenges by keeping pace with the advancements in technology of 21st century and suggested to maintain legal ethics for healthy judicial system. She was addressing a platinum jubilee inaugural function of the High Court Bar Association, Nagpur. Maharashtra Governor K Sankarnarayan, Chief Minister Prithviraj Chavan, Supreme Cour

The Concept of an “Interested” Shareholder

Yesterday’s board meeting at SEBI was not expected to generate any substantial decision owing to the impending change of guard at the regulatory institution. True to expectations, key matters such as amendment to the Takeover Regulations and implementation of the Jalan committee report on stock exchanges and other market infrastructure institutions were deferred. However, SEBI expressed its poli

Budget 2011- Some Issues In Indirect Taxation

Dr. Sanjiv Agarwal Budget 2011 is on the anvil and in about a fortnight’s time, Finance Minister shall unveil his budget announcements for the year 2011-12. It is an unwritten reality that GST may not happen now but the forthcoming Budget should clearly state this and also lay a proper and achievable road map as to how and when it may happen. Here are certain issues which the Union Budget 201

Liaison Office (LO) involved merely in purchasing activity is not a Permanent Establishment (PE)

Liaison Office (LO) involved merely in purchasing activity is not a Permanent Establishment (PE) ADIT (IT) vs Fabrikant & Sons Ltd. (Appeal Nos. 4657 to 4660 and 3342) dated 28 January 2011 The facts and the issues were same for the relevant assessment years i.e.1999-2000 to 2002-03 and 2003-04. A tax survey was carried out in the financial year 2005-06 in the premises of the assessee. The fol

Tax Residency Certificate should be regarded as sufficient evidence for beneficial owner

Citation:- Assistant Director of Income-tax v. M/s. Universal International Music BV (ITA No. 6063/M/2004, 9034/M/2004, ITA 2304/M/2006 & ITA 5064/M/2006) dated 31 January 2011 The taxpayer, a resident of Netherlands, belongs to Universal group of companies which are engaged in manufacturing of audio and video recording, acquisition, alienation, exploitation, assigning and managing of copy right

Regulatory framework for Core Investment Companies notified

Reserve Bank of India [RBI] had on 12 August 2010 issued guidelines for Core Investment Companies [CICs]. RBI has on, 5 January 2011 notified Core Investment Companies (Reserve Bank) Directions, 2011 [CIC Directions]. The CIC Directions and the consequential amendments to the existing regulatory framework for NBFC which are CIC are effective from 5 January 2011. Overview This Alert provides an

Salient Features of Easy Exit Scheme, 2011 available upto 30 April 2011

Ministry of Corporate Affairs (MCA), Government of India had launched "Easy Exit Scheme, 2011" (EES 2011) under the Companies Act, 1956 (the Act) to provide a fast track exit for "defunct companies" to get their names struck off from the records of the Register of Companies (ROC). EES 2011 was operative for a limited period of 1 month i.e. from 1 January 2011 till 31 January 2011. MCA has now ex

Exemption from attaching accounts of subsidiaries with balance sheet of holding company

Ministry of Corporate Affairs, Government of India (MCA), has on 8 February 2011 issued directions through General Circular No. 2/2011 and Press Note 3/2011 exempting holding companies from attaching specified particulars of its subsidiary companies with the balance sheet of the holding company. The directions have been issued by MCA in terms of Section 212(8) of the Companies Act, 1956 (the Act).

Managerial remuneration in unlisted companies having no profits / inadequate profits

Ministry of Corporate Affairs, Government of India (MCA), has on 8 February 2011 issued a Press Note No. 4/2011 of its intention to amend Schedule XIII of the Companies Act 1956 (the Act) relating to managerial remuneration. The amendment will be applicable to managerial remuneration payable by unlisted companies having no profits/ inadequate profits. Public limited companies (listed and unliste

CLB's power and responsibility under section 402 of Companies Act, 1956?

CLB’s responsibility to supervise the Company affairs even after passing final orders in a petition under section 397/398? In any litigation, the Court or the authority adjudicating the matter can pass interim orders and the matter will get finally disposed of. Once the matter is dispose of finally, there ends the litigation and the final order can be executed. If there is a provision for revi

Mere imprisonment of corrupt not sufficient: CW legal experts

Legal luminaries at Commonwealth Lawyers Conference at Hyderabad were unanimous that the corrupt should not be allowed to get away with the ill-gotten wealth and must be treated as human rights violators. The conference attended by the Chief Justices and Judges of 10 Commonwealth countries was inaugurated by Prime Minister Manmohan Singh early this week. Speakers who included Chief Justice

Now you can Track your Share trades with contract notes

A contract note is an important document for investors transacting in shares and other listed securities on a recognised stock exchange. A contract note is a legal record of your transaction carried on a stock exchange through a broker. A contract note serves multiple purposes. Not only does it record transactions but it also provides the details of the transaction in writing. It is a valid bill

SEBI’s recommendation on related party transactions

Background:-Securities and Exchange Board of India [SEBI] at their Board Meeting held on 7 February 2011 decided to recommend to the Ministry of Corporate Affairs, Government of India [MCA] to suitably amend Clause 166 of the Companies Bill, 2009 [Companies Bill], to disallow interested shareholders from voting on the special resolution of the prescribed related party transaction. SEBI move is aim

Subsistence Allowance during Adjudication

The Industrial Disputes Act, 1947 [“IDA”], provides for an elaborate system of adjudication of disputes between employers and workmen, and litigation over “subsistence allowance” is by no means uncommon, not only for tactical reasons, but also because it is often the only means of survival for an employee facing disciplinary proceedings. In this context, a single judge of the Bombay High C

Director not responsible for cheques issued after his resignation -section 141 of Negotiable Instruments Act, 1881

These 18 appeals, by special leave, are directed against he common judgment and order dated September 6, 2007 passed by Calcutta High Court whereby 18 criminal revision applications filed by the appellant for quashing the proceedings initiated by the complainants in 18 complaint cases under Section 138 read with Section 141 of Negotiable Instruments Act, 1881 ( for short, ‘NI Act’) against him

Relax FDI policy on convertibles: Department of Industrial Policy & Promotion (DIPP)

Any foreign direct investment (FDI) in an Indian company requires the investors to have a pre-calculated conversion price for using compulsory convertible instruments. The DIPP wants to make departure from such norms for convertible instruments, to encourage greater private equity (PE) participation and venture capital (VC) deals in the country. It would come as lot of ease for the PE and VC inv

Govt proposes to keep new company bill flexible

The government is proposing to keep the new company legislation flexible so that rules and regulations governing companies can be updated quickly without following the cumbersome procedure of amendment through Parliament. "We want to make sure that the regulations can be modified and updated continuously, as and when required. Amending a section would be time-taking and a long process, while ch