RBI Notifications

1.       Memorandum of Instructions governing money changing activities

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6969&Mode=0

2.       Memorandum of Instructions for Opening and Maintenance of Rupee /Foreign Currency Vostro Accounts

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6970&Mode=0

3.       Additional Repo Operations under Liquidity Adjustment Facility (LAF) on Reporting Fridays

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6967&Mode=0

4.       Section 42(1) of the Reserve Bank of India Act, 1934 - Maintenance of CRR

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6968&Mode=0

5.       External Commercial Borrowings – Simplification of procedure

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6963&Mode=0

6.       External Commercial Borrowings (ECB) Policy – Infrastructure Finance Companies (IFCs)

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6964&Mode=0

7.       Deregulation of Savings Bank Deposit Interest Rate – Guidelines

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6965&Mode=0

Notification No. 9/2012- Customs (N.T.) DATED THE 30th January, 2012

            S.O.       (E). – In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.88/2011-CUSTOMS (N.T.), dated the 28th December, 2011 vide number S.O.2914(E), dated the 28th December, 2011, except as respects things done or omitted to be done before such supersession, the Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and  Schedule II annexed hereto into Indian currency or vice versa shall, with effect from 1st February, 2012 be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.

View link: http://cbec.gov.in/customs/cs-act/notifications/notfns-2012/cs-nt2012/csnt09-2012.htm

Source: CBEC

In first PE co sale, Arya family seeks R300 cr for Milestone

The family of the late Ved Prakash Arya, the promoter of Milestone Private Equity Advisory, has sought R300 crore to sell the company, a person with direct knowledge of the development said. The deal, if it materialises, will be the first sale of an Indian private equity fund and will set the benchmark for PE fund valuation in the country. In the PE field, the only precedent of an ownership change is last year’s merger of IL&FS Investment Managers or IIML and Saffron Private Equity Fund. “They (the Aryas) are seeking around 8% of the asset they manage (R3,600 crore),” the person said. Rival PEs like Edelweiss Financial Service, Ashmore Investment Management, the Dewan Housing Finance-promoted Arth Veda Start Fund and L&T Finance have taken the sale document from Standard Chartered Bank, the banker to the deal.

Source: Financial Express

Gold on the upsurge, silver bullish

Last week was positive for a number of commodities in the world market with price gains in energy, metals and agriculture sector. The US made a significant contribution to boost positive perception of the global commodity market. The flow of positive macro data together with the Fed's assertion of continuing with the ‘loose money' policy until 2014 buoyed the sentiment. The US GDP growth was reported at 2.8 per cent in Q4 2011 at a seasonally adjusted annualised rate, the strongest gain since Q2 2010. Consumer confidence is seen rising. Inflationary pressures appear to be moderating. As for China, the mover and shaker of the world commodity market, December trade data continued to paint a picture of robust commodity demand.

Source: The Hindu Business line

BlackRock and Hemendra Kothari's DSP Group to set up PE fund targeted at mid-sized cos

The world's largest asset management firm, BlackRock, will join hands with Hemendra Kothari's DSP Group to set up a private equity fund to do 'classic PE deals' targetted at mid-sized companies. People close to the situation said DSP and the US-based BlackRock, which run a joint venture asset management company, are discussing the formation of a separate firm to run the new business. The partners have already formed a team and have begun identifying top executives to be hired as operating and deal partners. Two chief operating officers, armed with long experience in managing companies, will be hired as operating partners. Top executives, with knowledge of different industries, will also join the new team, according to a person familiar with the discussions. "It will not only be buyouts but also minority growth capital, but in no case a less than substantial stake. A classic PE style will be employed," the person said. "There is a strong belief in India that PE investments are meant for start-ups. Mid-sized companies offer a greater opportunity."

Source: Economic Times

7 of top-10 cos add Rs 44,787 cr in mcap; Bharti top gainer

Helped by a sharp surge in the market value of Bharti Airtel, the combined market capitalisation (m-cap) of seven of the country's top-10 most valued companies advanced by Rs 44,787.42 crore last week. RIL, ONGC, TCS, ITC, Infosys, Bharti Airtel and SBI saw gains in their market cap, while Coal India, NTPC and HDFC Bank witnessed erosion in their values. Telecom major Bharti added Rs 12,494.42 crore to its m-cap, which reached Rs 1,42,350.42 crore on Friday. Country's most valued company RIL saw its value accelerate by Rs 7,941 crore to Rs 2,67,719 crore. State-run ONGC's market worth jumped to Rs 2,38,313 crore from Rs 2,35,275 crore on January 20.

Source: Economic Times

Banks checking Cibil rating of promoters for corporate loans

Strong credit rating is no longer sufficient for banks to advance loans to corporates. Worried over the rise in bad loans, lenders are combing individual financial reports of promoters and board officials to look for clues or patterns that could ring an alarm bell. India's leading credit information agency Cibil says banks are actively seeking such reports to make informed decisions. "Bankers want to know the financial discipline of their borrowers. Such data provides critical information on the people who are involved in running the company on a daily basis," said Cibil's managing director Arun Thukral.

Source: Economic Times

Vodafone effect: Taxmen to seek Supreme Court advice on foreign bank accounts of Indians

Tax authorities and the finance ministry are contemplating moving the Supreme Court to figure out how they should go about handling information on undisclosed offshore bank accounts of Indians. With the tax office receiving information on thousands of such accounts, the government is in favour of approaching the apex court for a direction on the future course of action in this matter. The government, which has been receiving information on unreported offshore accounts since last two years, expects to access more information with India having entered into tax information exchange with authorities of more than 70 jurisdictions.

Source: Economic Times

Safeguard duty imposed on pthalic anhydride imports

The Centre has imposed a provisional safeguard duty of 10 percent on all Phthalic Anhydride (PAN) imports into India. This provisional duty will be valid for a period of six months from mid-January unless revoked earlier. PAN is widely used to manufacture synthetic resins which act as binders in paint products. It also plays a primary role as a chemical intermediate in the production of plastics and polyester resins. The Director-General (Safeguards) had in September last year recommended an interim safeguard duty of at least 10 percent on PAN imports. The petition seeking safeguard duty was filed by three domestic manufacturers—Thirumalai Chemicals, IG Petrochemicals and Mysore Petrochemicals which account for 87 percent of the domestic production.

Source: The Hindu Business line

Investment limit on infrastructure bonds may rise to Rs 50,000

The government is considering more than doubling the investment limit in infrastructure bonds eligible for tax rebates as part of a strategy to provide a funding boost to a vital sector while having a beneficial effect across the economy. Officials told ET the finance ministry's department of economic affairs, as part of its suggestions for the 2012-13 budget, had proposed raising the investment limit in these bonds to Rs 50,000 from Rs 20,000 now. The revenue department is expected to take a final decision after weighing expected economic gains against short-term revenue losses.

Source: Economic Times

House panel bats for mandatory CSR

A parliamentary panel has stuck to its position to make it mandatory for companies to spend a portion of net profit on corporate social responsibility (CSR). The standing committee on finance also decided to take for scrutiny only the new clauses added to the Companies Bill, 2011, after the panel’s earlier inspection. “It should be made mandatory because the public sector companies are already giving five per cent CSR on the total profit, while it is not known to people what the private companies are doing,” a committee member said. “The committee, in its report in August 2010, had recommended two per cent CSR but the government diluted it.” The government had wanted the standing committee to take another look at the Bill, as the Bharatiya Janata Party-led Opposition expressed reservation at the changes made to the draft after its earlier version was vetted by the panel.

Source: Business Standard

Banks’ plan to increase TDS threshold nixed

The finance ministry has rejected a proposal from banks to enhance the threshold for mandatory tax deduction at source (TDS) on interest earned by depositors. It has also shot down a suggestion to make term deposits of three years tax-exempt. Bankers had demanded that they should be required to cut tax only when interest income of a customer exceeded R50,000 in a year, up from R10,000 at present. A senior finance ministry official said the government is unlikely to raise this limit in the Budget. “Our internal calculations show that only a tiny percentage of tax payers takes into account the interest income. Raising the TDS threshold would mean a large number of tax payers going outside the tax net," he said.

Source: Financial Express

Minimum pension under EPF to be hiked to R1,000

The government is likely to increase the minimum pension for subscribers of the Employees’ Provident Fund (EPF) scheme to R1,000. According to labour ministry officials, the Central Board of Trustees of Employees’ Provident Fund Organisation (EPFO) is going to meet on February 23 to decide the hike in minimum pension for the EPFO's over 5-crore subscribers. “A broad consensus has already been reached on increasing the minimum pension to R1,000. Now, the members of CBT and ministry officials will discuss the procedure of implementing this in their next meeting on 23 February," said an official. A decision in this regard was expected last month. Earlier, labour minister Mallikarjun Kharge had said that the recommendation of the committee on pension implementations to increase the minimum pension amount to R1,000 per month would be placed before the Trustees on December 23, 2011.

Source: Financial Express

West Bengal State Electricity Distribution Company Limited

Description :Invitation of expression of Interest for Outsourcing of Internal Audit

Last Date : 09/02/2012

Address :West Bengal State Electricity Distribution Company Limited

Vidyut Bhavan, Block-B, 3rd Floor, Saltlake City, Sector-II, DJBlock, Kolkata-700091 - West Bengal - India

Download Link:-

http://www.wbsedcl.in/irj/go/km/docs/internet/webpage/PDF/Tenders/INVITATION%20OF%20EXPRESSION%20OF%20INTEREST.pdf

Department Of Agriculture

Description :Engagement of Chartered Accountants.

Last Date : 31/01/2012

Address :Directorate of Agriculture, Haryana

Krishi Bhawan, Sector 21, Panchkula

E-Mail : agriharyana2009@gmail.com

Fare hike imminent, but unlikely in Rail Budget

Hike in passenger fares, though imminent, may not find place in this year's Railway Budget. At the most, there could be an announcement on a pricing model linking fares to input costs. The fare hikes, in fact, could come after the Budget, or may be even before, in the small window of a few days after the State election results, depending on the political climate. Passenger fares of the Indian Railways, which move about 800 crore people a year, have been always been a political hot potato. Since 2004, when the UPA-1 came to power, Railway Ministers such as Mr Lalu Prasad and Ms Mamata Banerjee have been unwilling to be branded as those who made rail travel costlier for the masses.

Source: The Hindu Business line

Irda sets benchmark for IPOs by insurance companies

The Insurance Regulatory and Development Authority (Irda) issued the initial public offering (IPO) regulation for life insurance companies on December 1, 2011, based on the Gazette notification of November 14, 2011. The regulation enables those life insurance companies that have completed 10 years of operation to increase equity capital under ICDR (Issue of Capital and Disclosure requirements) Regulation, 2009, of the Securities and Exchange Board of India (Sebi), either through fresh issue of equity capital or divestment of equity by one or more of the promoters through a public offer for sale. The insurance company has to get the approval of Irda before applying to Sebi.

Source: Financial Express

RBI talks tough on electronic security

The Reserve Bank of India (RBI) would adopt a strict approach towards banks that don’t implement the recommendations of the Gopalakrishna Committee report on electronic security. "The banking regulator expects reasonable compliance. RBI will take serious action against those banks that do not implement the recommendations of the committee. By October 2012, banks will have to implement the recommendations. At present, some banks do not have proper security policy, methods to monitor the service level agreements with third parties and inadequate audit trail," G Gopalakrishna, executive director, RBI, said on Friday.

Source: Financial Express

RBI to reintroduce second LAF to ease liquidity

With liquidity deficit being way above its comfort level, the Reserve Bank today announced that it will reintroduce a second LAF window to inject cash into the system. The RBI operates liquidity adjustment facility (LAF) to help banks manage their liquidity position. The central bank said it will have a second LAF repo every Friday between 1630 and 1700 hours. At present, RBI operates the repo (injection) and reverse repo (absorption) auctions twice a day at 0930-1030 hours and 1630-1700 hours, respectively. The second LAF repo has been reintroduced in response to suggestions from market participants and provide flexibility to market participants in their liquidity management, the RBI notification addressed to all commercial banks said.

Source: Economic Times

'MF sector needs to widen reach'

International Advisory Board, constituted by the Securities and Exchange Board of India, has said the mutual fund industry needs to widen investor base and educate invest to the advisory board, which was formed to aid capital market regulator Securities and Exchange Board of India (SEBI) by bringing in global experience, met for the first time in New Delhi on Friday.

Source: Business Standard

Anti-dumping duty on morpholine from EU, China, US

The Finance Ministry has imposed definitive anti-dumping duty on ‘morpholine' imports from China, the European Union and the US. This duty will last for five years with effect from September 20, 2011— the date of imposition of provisional anti-dumping duty. Morpholine is used as a chemical intermediate in the rubber industry. It also finds application in corrosion control and in the synthesis of a large number of drugs. This chemical is also used for crop protection agents, dyes and optical brighteners. It is also used by the cosmetics industry. Balaji Amines Ltd had filed the petition seeking anti-dumping probe on imports of ‘morpholine' from China, European Union and the US. This company is the sole producer of morpholine in the country.

Source: The Hindu Business line

India signs multilateral tax pact to curb evasion & bring back black money

India has signed a multilateral tax agreement that will will reinforce the domestic authorities' capacity to combat tax avoidance/evasion and help bring back black money illegally stashed abroad.The Multilateral Convention on Mutual Administrative Assistance in tax matters is an instrument available to all countries for developing a broader multilateral approach to improve the effectiveness of exchange of information and facilitate co-operation between the countries in the assessment and collection of taxes. Pertinently, it provides for assistance to signatories in the recovery of taxes, a facility not available with bilateral tax treaties The pact was signed at the OECD headquarters in Paris by Sanjay Mishra, joint secretary, CBDT and Rintaro Tamakio, OECD deputy secretary-general. With the signing of the pact, India has joined the league of 31 other countries who are part of the convention. So far, the convention has been ratified by 12 countries

Source: Financial Express

Empanelment - Department Of Agriculture

Description :Engagement of Chartered Accountants.

Last Date : 31/01/2012

Address :Directorate of Agriculture, Haryana

Krishi Bhawan, Sector 21, Panchkula

E-Mail :agriharyana2009@gmail.com

15 Indian companies including Tata Power, GMR Group and Adani Power eye Nigerian power projects

Around 15 Indian companies, including Tata Power, GMR Group and Adani Power, are among candidates shortlisted by the Nigerian government to participate in the privatisation of power projects of state-owned National Electric Power Authority (NEPA), sources close to the development told ET. Struggling on home ground with multiple issues which have delayed capacity addition, Indian power companies are exploring participation in power generation and distribution projects in Nigeria to fuel their growth despite the civil unrest in the country. Nigeria is in the process of selling a 51% stake in four thermal and two hydro power generation units and 11 transmission projects since NEPA's poor operational and financial performance has deterred capacity addition in the country. "Nigeria is a part of our geographical expansion plan. It has gas reserves and the energy requirement of a population of 15 crore people is a big incentive," said Arun Sen, CEO of Lanco International, an arm of Lanco Infratech.

Source: Economic Times

MMTC disinvestment may not happen in immediate future

Disinvestment in MMTC may not be possible in the immediate future, as stock market conditions are not appropriate for fixing the price band of the thinly traded shares of the company, a top Commerce Ministry official said today. "We are waiting for the right time. The current market condition is not good for disinvestment," the official said.Besides, "as MMTC's shares are very thinly traded in the market, it is very difficult to fix the price band," he added. While its shares are thinly traded in the market, the floating stock is so limited that it does not reflect the true value of the company, the official said. The central government, which holds 99.33% stake in the trading firm, has plans to divest 10% of its shares.

Source: Business Standard 

Jaypee seen quitting UP’s R7k-crore power project

The Jaypee Group, which won a contract to build a 1,320-MW power plant at Karchana in Uttar Pradesh for R7,000 crore in February 2009, is now unwilling to execute the project, a state government official told FE. The company has unofficially conveyed its unwillingness and is looking at ways to recover its investment, the official added. The company, he said, has blamed difficulties in land acquisition, though uncertainty over the outcome of state elections “probably has a lot to do with the decision”. Jaypee is perceived to be close to the ruling Bahujan Samaj Party in UP, which goes to polls in a fortnight.

Source: Financial Express 

Sebi cracking down on IPOs

Capital market regulator is reviewing the process for initial public offerings, its chairman said on Thursday, a day after it banned seven small companies from fund-raising for what it said were IPO rule violations.“We are currently reviewing the entire IPO process, including shortening the timeline for the entire process,” U.K. Sinha told television news channel CNBC TV18. The Securities and Exchange Board of India (Sebi) said on Wednesday a probe revealed misuse or diversion of IPO proceeds, inadequate documentation and due diligence and possible trading violations on the day of listing.

Source: Live Mint 

Higher-than-expected 50-bps cut by RBI in CRR raises hopes of cheaper loans

Industry and consumers can look forward to lower cost of funds for the first time in two years after the Reserve Bank of India cut the cash reserve requirement of banks, likely to be the precursor to interest rate cuts later this year. But using unusually blunt language, Governor Duvvuri Subbarao made it clear that lower rates will depend on the government taking credible steps to rein in fiscal deficit. "In the absence of credible fiscal consolidation, the Reserve Bank will be constrained from lowering the policy rate in response to decelerating private consumption and investment spending," said Subbarao. "The forthcoming Union Budget must exploit the opportunity to begin this process in a credible and sustainable way."

Source: Economic Times 

SC admits Gujarat govt’s plea against RIL, Essar, others

The Supreme Court has admitted the Gujarat government's plea seeking to charge stamp duty on bill of entry (BoE), which the state believes is a delivery order liable to tax. Earlier, the Gujarat high court had ruled that the BoE is not an instrument on transfer of goods and so not a delivery order which can be subjected to stamp duty. A clutch of companies which are importers of crude oil, including Reliance Industries, Essar Oil, IOC, Tata Chemicals, Hindalco and Gujarat Ambuja, had challenged the state government's decision to levy stamp duty on BoE.

Source: Financial Express

Good idea, but tough to implement

The principles of horizontal and vertical equity in taxation are well-known . Governments often violate these principles by giving liberal sops and, thereby , raising questions about the general fairness and distribution of the tax burden that have important consequences on tax-compliance behaviour. There is also another less talked about equity: the inter-nation equity. With globalisation, presence of multinationals , rise in related party transactions and e-commerce , this concept is assuming more importance. Theoretically , when income-earning activities take place because of investments coming from one country exploiting the resources in another country, each should get its fair share of taxes.

Source: Economic Times 

Notification No. 3/2012-Central Excise

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 3/2012-Central Excise

New Delhi, the 16th January, 2012

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 23/2003-Central Excise, dated the 31st March, 2003, published in the Gazette of India, Extraordinary, vide number G.S.R. 266(E), dated the 31st March, 2003, namely :

In the said notification, in the Table, –

                       (i)      against Sr. No. 8, for the entry in column (4), the entry “In excess of 5% ad valorem” shall be substituted;

                      (ii)      against Sr. No. 10, for the entry in column (4), the entry “In excess of 6% ad valorem” shall be substituted;

(2) This notification shall come into force force on the 17th day of January, 2012.

 [F No.-354/4/2012 -TRU]

[Raj Kumar Digvijay]

Under Secretary to the Government of India

Note.- The principal notification No. 23/2003-Central Excise, dated the 31st March, 2003, published in the Gazette of India, Extraordinary, vide number G.S.R. 266(E), dated the 31st March, 2003, was last amended vide notification No.No. 5/2010-Central Excise, dated the 27th February, 2010, published vide number G.S.R.107 (E), dated the 27th February, 2010,

Liquid funds may see tight valuation norms

Investors in liquid and liquid-plus (ultra-short term) mutual funds may soon find it unattractive to park their surplus fund in these schemes. Capital markets regulator, Securities and Exchange Board of India (Sebi), is planning to tighten the valuation norms. That should make these more volatile. To begin with, the regulator is planning to impose mark-to-market (MTM) requirements for instruments with a residual maturity period of 60 days and more. Sebi, eventually, wants all instruments irrespective of their tenure and type to be quoted on market rates and the net asset value (NAV) calculated accordingly, say people familiar with the developments. The move was earlier discussed by the mutual fund advisory committee.

Source: Business Standard

Excise dept to bring back mobile labs

It is no secret that the drive against illicit liquor and adulterated toddy in the state has been hampered by the long delay in testing seized samples. The excise department is dependent on the three regional chemical laboratories of the state government for the tests. As a way out, the department will soon have its own mobile laboratories across the state to spruce up the drive. “The mobile labs, which the department gave up earlier, are coming back. The first laboratory will start functioning in Thiruvananthapuram on an experimental basis soon. More laboratories will be set up across the state in a phased manner," said joint excise commissioner, Sreekumaran Chettiar.

Source: Deccan Chronicle

Will pay VAT on sale of gas in UP from Feb 1: RIL to SC

Reliance Industries Ltd (RIL) on Monday assured the Supreme Court that it would start paying Value Added Tax (VAT) to Uttar Pradesh government on sale of gas in the state from February one till a decision by the Allahabad High Court on its plea against the tax imposition. Taking note of RIL's submission, a bench headed by Justice Altamas Kabir asked the high court to decide expeditiously the company's plea against state government's decision to impose VAT. The company also submitted that the VAT imposed on its product would be passed on to the consumers.

Source: Times of India

Heavy Industries Ministry seeks 14% import duty on power equipment

The Heavy Industries Ministry has pitched for 14 per cent import duty on power generation equipment for the projects above 1,000 MW. It claimed that the Power Ministry had already circulated a Cabinet note in this regard. The Heavy Industries Minister, Mr Praful Patel, said, “Such a duty will provide a level playing field to domestic companies such as BHEL and L&T, which have significant disadvantage.” The move is primarily aimed at imports from China. At present, equipment for power projects with capacity over 1,000 MW attract marginal duty. This makes imports cheaper and is the key reason for power producers, such as Reliance ADAG and Adani, going in for imports from China. This is a blow to domestic producers, who are already facing slower order flow because of fewer projects being planned and executed. We have already involved the Prime Minister's Office in this matter, while the Planning Commission and the Power Ministry are already on board,” Mr Patel told reporters after his meeting with the Power Minister, Mr Sushil Kumar Shinde, on Monday

Source: The Hindu Business line

Infra bond tax gain may stay

The finance ministry may extend tax benefits for investment in infrastructure bonds for one more year. But the limit ofRs 20,000 may not change, despite appeals from the industry. This would mean a tax saving ofRs 2,000 toRs 6,200 for an individual, depending on the tax slab. A finance ministry official said the revenue department was considering allowing income-tax deduction on investments up toRs 20,000 in infrastructure bonds in Budget 2013 as well. The ministry may also consider allowing some more entities to issues such bonds, but it is not in a position to raise the cap, given its tight fiscal situation and bleak revenue prospects. The government is struggling to meet its tax and non-tax revenue targets. Net direct tax collections in the first nine months of the year (April-December 2011) stood atRs 3,23,955 crore, which is just 61 per cent of the Budget Estimate ofRs 5,32,651 crore for 2011-12. This leaves the revenue department with the Herculean task of collectingRs 2,08,696 crore in the remaining three months.

Source: Business Standard

Customs dept plans to speed up procedures

The Customs department is observing a Trade Facilitation Fortnight till February 2. It will expedite disbursal of drawback claims and provide factory stuffing permission on the day of application. Officials will try to reduce the time of import cargo clearance and speed up procedures. At the airport, officials will follow up non-traceability of cargo and damage of goods with the MIAL. Biometric identification of Custom House agents will also be introduced.

Source: Times of India

Mumbai I-T dept could lose Rs 10,000 crore

With the apex court ruling in Vodafone case that transfer of shares of a foreign company between two non-residents is not taxable, the Mumbai income tax (I-T) department now stares at an estimated loss of Rs10,000 crore. "There are 5-6 similar cases with the Mumbai circle that would be affected due to the judgment," said a senior I-T official requesting anonymity. "Hence, there would be tax loss from these companies." Following the Supreme Court (SC) order, the department will have to refund Rs2,500 crore deposited by Vodafone as the case was pending. It will also have to pay an interest of Rs100 crore. The department, which is reeling under pressure due to slow growth, is expected to fall short of target by a considerable margin. The tax collection target for Mumbai circle is Rs2.04 lakh crore that has to be met by March 31. The department was expecting a shortfall of anywhere between Rs25,000 crore to Rs50,000 crore.

Source: The Hindustan Times

Subtle difference in emphasis on Sec.195 in SC judgements

Tax experts have drawn attention to an important difference in emphasis and interpretation in the two separate but concurring judgements pronounced by the Supreme Court in the Vodafone tax case delivered last Friday. The issue pertains to Section 195 of the Income-Tax Act which mandates deduction of income tax from payments made to non-residents. The said Section reads thus: “Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or any other sum chargeable under the provisions of this Act (not being income chargeable under the head ‘Salaries' shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force”. The Chief Justice of India, Mr S.H. Kapadia, and Mr Justice Swatanter Kumar in their judgement referred to this and said, “Section 195 casts an obligation on the payer to deduct tax at source (“TAS” for short) from payments made to non-residents which payments are chargeable to tax. Such payment(s) must have an element of income embedded in it which is chargeable to tax in India.”

Source: The Hindu Business line

Cough up penalty by Jan 30 or face action: IT dept

The income tax department has issued notices to 35 residents for not being able to furnish the sources of income that was used to buy properties. The department has set January 30 as the deadline for defaulters to file penalties, failing which their properties would be seized. During a routine checking of the account books of the sub-registrar in November, the department had rounded up more than 45 suspicious transactions in booking properties at various locations. Following this, the department had sent notices to all the individuals to state their sources of income. The checking was carried out by the investigation wing of the IT department. About a dozen individuals were able to provide the details within the stipulated time period.  

Source: Times of India

VODAFONE CASE

The Supreme Court in this historic decision of 275 pages has laid down various principles of interpretation of the Indian Tax Laws and this decision is predicted to have a far reaching impact on the Indian M&A industry and the way forward for Tax Litigation in India. We have analysed this judgment and prepared this detailed alert on the following grid:

·         Tax Avoidance v/s Tax Evasion

·         Whether Section 9 is a “look through” provision

·         Transfer of HTIL property rights by Extinguishment

·         Role of CGP in the transaction

·         Controlling interest in HEL

·         Scope and Applicability of Section 195 and Section 163

A
 •The judgment is fact specific and should be read in relation to the current case only. •The Supreme Court has now settled a long pending and a highly litigative matter of Cross-border transactions of Indian companies which has been a focal point of litigation in the recent years. •It is fairly well-established that if the acquisition involved a direct transfer of shares of an Indian company, the same would trigger taxable capital gains under the Act. However cases involving indirect transfers have no mention in the Indian judiciary system. In this landmark judgment, the Learned Court has observed that the indirect transfer, would not be taxable in India. •The court has also recognized that use of holding company structures and offshore financial centres, are driven by business/commercial rationale and having such a tax planning tool in international structures, does not imply tax avoidance or tax evasion. •This decision of the Supreme Court has reinforced the faith of domestic and foreign investors in the Indian Judiciary system which has indicated that certainty and stability form the basic foundation of any fiscal system and they are integral to the rule of law. BOUT THE DECISION

Forest Development Authority

Description : Expression of Interest for appointment of Chartered Accountant firms for internal audit, Registration of MPSFDA at Department of income tax & income tax exemption related issue. Appointment of internal auditor for the audit of MPSFD account for the FY 2010-2011 and on conclusion of FY 2011-12 registration of MPSFDA .

Last Date : 30/01/2012

Address : Forest Development Authority

First floor, Satpura Bhawan, Bhopal - Madhya Pradesh - India

Phone : 0755-2763390

E-Mail : apccf_mp@yahoo.com, apccfjfmmp@rediffmail.com

Empanelment - Municipal Corporation Of Chaksu

Description : Providing of Chartered Accountant service for account work like software supply, preparation of balance sheet, work inspection & software work.

Last Date : 30/01/2012

Address : Municipal Corporation Of Chaksu

Rajasthan - India

Empanelment - Jammu And Kashmir State Power Development Corporation Limited

Description : Engagement as consultant to perform below mentioned assignment – Review & validation of double entry system & to be process designed the already engaged CA firm & submission of report thereon, expert examination & validation of all relevant deliverables of contract signed with already engaged CA firm including accounts manual chart of accounts (COA) with account code, document of suggested accounting policies, formats of financial statements & vouchers in the new system validation of accounting transactions as per accounts codes, data entry for preparation of financial statements, review, changes in accounting structure (chart accounts (CAO) consolidation structure for balance sheet being proposed by already engaged CA firm & provide guidance on the same, review of detailed progress on daily basis of data entry team & balance sheet generation activities currently being done by the already engaged CA firm to ensure faster closure of the same with project monitoring consultant, the successful bidding CA, CA firm shall be required to finish a final validation report after complete roll out of the new designed ERP based double entry accounting system, when the balance sheets arse generated live from the fully functional ERP based double entry system across JKSPDCL.

Last Date : 25/01/2012

Address : Jammu And Kashmir State Power Development Corporation Limited

Corporate Office, Ashok Nagar, Satwari, Jammu - Jammu-kashmir - India

 

Pranab likely to retain 10% excise duty i Budget

Finance minister Pranab Mukherjee is likely to retain standard excise duty at 10% in the Budget 2012-13, a move that would give some respite to corporate India as industrial growth is expected to moderate next fiscal on account of the slowing down of the economy. According to an official involved in the Budget-making process, given that excise collection has shown only moderate growth this fiscal on account of high interest rates and torpid consumption demand, a hike in excise duty is not under consideration.Also, in the goods and service tax (GST) regime, the combined Centre-State rate is expected to finally settle at 16% (although in the initial two years, the rate would be higher), which leaves no room for an increase in excise duty now. State Vat rate for most items is 12.5% at present.

Source: Financial Express

Budget 2012 to herald changes in line with planned GST

The finance ministry is likely to introduce a slew of measures in the budget to prepare the ground for the proposed goods and services tax that is yet to be approved by the states. The indirect tax reforms are expected to withdraw some fiscal stimulus measures, raise excise on diesel cars and cigarettes and switch over to a negative service tax list. This would help the government align taxes with a unified GST, the country's most comprehensive indirect tax reform, and also raise additional revenue. "The idea would be continue with what was initiated in the last budget... a full-fleged GST would be the culmination of the reform process, but that would take time," said afinance ministry official. The finance ministry may opt for a gradual increase in excise rates because of the current slowdown even though policymakers say that the fiscal stimulus should be fully withdrawn. After the 2008 financial crisis, the government had cut excise duty from 14% to 8% and service tax was brought down to 10% from 12%.

Source: Economic Times

RBI sees red over bank loans to aid sell-offs

The Reserve Bank of India (RBI) has opposed a government plan under which public sector banks will lend money to a new asset management company (AMC), which, in turn, will buy stakes in state-owned enterprises to support the faltering disinvestment programme. According to sources, the central bank has rejected this proposal as it would expose banks to undue market risk and violate capital market exposure limits on banks set by the central bank.As per the finance ministry proposal, the AMC is to be created by transferring government ownership in three companies — L&T, ITC and Axis Bank — held through Special Undertaking of UTI, (SUUTI) valued roughly at R32,000 crore. The AMC will then borrow from banks on the strength of these underlying assets and invest borrowed funds in PSUs being disinvested.

Source: Financial Express

RBI may hold interest rates despite slowing growth, inflation

Few are forecasting an interest rate cut by Reserve Bank of India Governor Duvvuri Subbarao on Tuesday, despite growth slowing and inflation at a two-year low. Some are hoping for a cut in cash reserve ratio (CRR) without conviction. But everyone is praying, rather impatiently, that he does 'something' soon to revive the animal spirits. The first detailed monetary policy review since the curbs to arrest the rupee's slide against the dollar may dwell on the latest threat to economic management from the currency when domestic demand-fuelled inflation itself is yet to ebb. The inflation forecast of 7% by March may be retained, but the GDP growth estimate may be sliced to 7%, from 7.6%, amid falling demand for goods and subdued export growth due to the simmering European crisis. Any action will be a surprise.

Source: Economic Times

Companies may have to disclose source of funds coming via preferential allotment of shares

The securities market regulator plans to seek details of the source of funds flowing through preferential allotment of shares, a move aimed at deterring promoters from pumping money indirectly through front entities. Two persons familiar with the matter told ET that the Securities and Exchange Board of India or Sebi's, move comes in the wake of increasing concerns over promoters or other investors channelising money into companies through complex structures involving interconnected entities. "Sebi wants to know who is investing through certain front entities," said one of the persons quoted earlier. The proposal was discussed by the 17-member Sebi Committee on Disclosures and Accounting Standards ( SCODA) on Friday.

Source: Economic Times

Govt mulling 10-year tax holiday, infrastructure status for broadcast industry

With efforts to usher in digitisation in the country, the government is mulling over a set of proposals including a 10-year tax holiday, duty exemptions, granting infrastructure status etc for the broadcasting industry. More intensive discussions are expected to take place in a meeting on Monday. "I&B ministry is considering certain cable industry demands, which includes a 10-year long tax holiday under Sec 81 (A) of the Income Tax Act so as to help improve broadcasting infrastructure. Another proposal being considered is the granting on infrastructure status in line with the telecom sector," said a senior government official. "There is also a proposal to enable carry forwarding of losses and incentives to take over loss making companies, customs duty exemption for Set Top Boxes (STB) and on new certain headend equipment," the official added.

Source: Hindustan Times

Some capital market changes brought about by SEBI

A few years ago, the Securities and Exchange Board of India (SEBI) introduced the qualified institutional placements (QIP) programme to allow companies to make offers through qualified institutional buyers (QIBs). One of the requirements of QIPs is only companies compliant with the listing agreement can make a QIP. Since many companies in the government and private sectors do not comply with the minimum public shareholding norms, they could not raise funds through the QIB route. The institutional placement programme (IPP) will help such companies make an offer to QIBs. Now, companies can auction their shares on the stock exchanges. The market regulator, SEBI, has made some changes that are expected to have a bearing on the capital markets. The SEBI has permitted the IPP and offer of sale of shares through stock exchanges.

Source: Economic Times

I-T dept may not file review petition in Vodafone case

The income tax department may not go in for filing a review petition on the Supreme Court's judgement on the Vodafone taxation case. Top sources in the department said that a 10-member "core committee", which has been specially constituted, will go into the details of the order. But the department may take a view not to file a review petition against the order which was delivered by a three-member Supreme Court bench headed by Chief Justice S H Kapadia on Friday, the sources said. "We will have to study the whole judgement and then decide (on the course of action that needs to be taken)," CBDT Chairman M C Joshi said."We take the judgement of the Supreme Court in our stride and there is no chance of the I-T department going in for a review petition in the case," a top official involved in the case said.

Source: Business Standard

Empanelment - Municipal Corporation Niwai

Description : Contract for Chartered Accountant for account maintenance work.

Last Date : 09/02/2012

Address : Municipal Corporation Niwai

Rajasthan - India

Empanelment - Bureau Of Indian Standards

Description : Quotation for outsourcing of accounting job to Chartered Accountant firm for the period of One year in BIS, DBO, Dehradun-regarding.

Last Date : 02/02/2012

Address : Bureau Of Indian Standards

Dehradun - Uttaranchal – India

Download link: http://www.bis.org.in/other/Tend_DBO_CA.pdf

Empanelment - Municipal Corporation Indragarh

Description : Providing of Chartered Accountant.

Last Date : 31/01/2012

Address : Municipal Corporation Indragarh

Bundi - Rajasthan - India

Rupee rises for 5th day; importer demand hurts

The Indian rupee rose for the fifth consecutive session on Wednesday and touched its highest in more than two months, driven by robust dollar inflows and a rise in the euro, though dollar demand from oil importers tempered gains. The rupee ended at 50.3750/3850 to the dollar, after rising to 50.38 -- its highest since Nov. 14. It rose 0.7 percent from its Tuesday's close of 50.73/74. "Sentiment is definitely positive for the rupee and inflows are happening," said Ashtosh Raina, head of foreign exchange trading for HDFC Bank.

Source: Times of India

Yahoo Co-Founder Jerry Yang Exits Company

Jerry Yang is exiting the Yahoo! Inc (YHOO). board and its management team, the latest casualty of an overhaul that led to the ouster of Chief Executive Officer Carol Bartz and left the company in search of strategic options. Yang, who started Yahoo in 1995 with David Filo, also left the boards of Yahoo Japan Corp. and Alibaba Group Holding Ltd., Asian Web companies Yahoo partly owns, Yahoo said today in a statement. Scott Thompson, former president of EBay Inc. (EBAY)’s PayPal unit, was named CEO on Jan. 4 after a four-month search.

Source: Bloomberg

Bank borrowings test RBI's CRR resolve

Bank borrowings from the Reserve Bank of India has doubled in two weeks, testing the Reserve Bank of India's resolve not to signal a shift in monetary stance of fighting inflation by easing the cash reserve requirement. The maturity of forward contracts where the central bank had sold US dollars to prevent the rupee slide last month, and higher demand for funds from companies that no more want to borrow overseas due to higher rates, could push up interest in the domestic market in the short term, traders say. "The selling by RBI for intervention was partly extended by receiving the forward sales," said Ashish Vaidya, executive director, trading, UBS AG. "So, the impact of that on systemic liquidity will be felt on the day the forward sale matures."

Source: Economic Times

Banks want tax compliance norms for senior citizens eased

Banks have moved the Finance Ministry to ease the procedural hassles relating to tax compliance being faced by depositors belonging to the senior citizen and economically weaker categories. The lenders have made a pitch that they should be allowed to act upon declarations in Form 15G (declaration made by an individual below 60 years claiming certain receipts without deduction of tax) and Form 15H (declaration made by an individual over 60 years) although the person filing the declaration does not have a permanent account number (PAN). Given that the golden agers park a substantial portion of their lifetime savings in fixed deposits and people belonging to the economically weaker sections (EWS) are increasingly being financially included, banks have represented that acting on the abovementioned declaration without PAN will alleviate the hardship caused to the EWS and to the aged.

Source: The Hindu Business line

Sebi norms may stump foreign airlines

The airline industry might be feeling relieved after a group of key ministers reached a consensus on allowing foreign airlines to buy up to 49 per cent in domestic carriers. However, the takeover regulations of the Securities and Exchange Board of India (Sebi) may act as a stumbling block. Last year, Sebi notified the Substantial Acquisition of Shares and Takeover Regulations, 2011, in which it specified that any entity acquiring 25 per cent or more in a company would have to mandatorily make an open offer of 26 per cent. That means, if a foreign firm were to pick 25 per cent or above in a domestic carrier, it would have to make an open offer of another 26 per cent. If the issue is fully subscribed, the foreign company may end up holding as much as 51 per cent or more — or a clear majority stake —in a domestic carrier. On the other hand, the government has capped the foreign direct investment (limit) to 49 per cent.

Source: Business Standard

I-T department slaps Rs 1,067-cr tax notice on Bharti Airtel

The income-tax department has slapped a 1,067-crore demand notice on Bharti Airtel, the country's largest telco by revenues and customers, for its alleged non-payment of Tax Deducted at Source (TDS) dues in the last four financial years in relation to its overseas operations. Bharti Airtel said it was fully compliant with all the provisions and termed the demand unjustified even as the company said that it would take appropriate legal recourse. The I-T department has asked the telco to make the payment immediately. It has been asked to pay up 202.07 crore for 2007-08, 329.913 for 2008-09, 313.577 crore for 2000-10 and 221.681 crore for the 2010-11 period in lieu of payments made by the company to "non-resident mobile service providers".

Source: Economic Times

Government may make declaring of overseas assets details mandatory by taxpayers

The government may make it mandatory for all taxpayers to provide details of their overseas assets, including bank accounts, while filing their annual tax returns, as the drive against tax evasion gains momentum. The proposed Direct Tax Code, or DTC, has a provision that seeks to cast an obligation on taxpayers to furnish full details of foreign assets. The government is now considering a proposal to amend the Income Tax Act to incorporate this provision as the DTC may not come into effect from April 1 2012, as originally planned, an official with knowledge of the matter said. The official, who declined to be named, said tax authorities are seeking legislative changes to ensure taxpayers declare foreign assets.

Source: Economic Times

Empanelment - Rajasthan State Pollution Control Board

Description : Providing of Chartered Accounting Service.

Last Date : 31/01/2012

Address : Rajasthan State Pollution Control Board

4, Institutional Area, Jhalana Doongari Jaipur - Rajasthan – India

Download Link:- http://210.212.96.131/rpcb/Tender/Tender_31_12_2011.pdf

Empanelment - Karnataka State Beverages Corporation Limited

Description : Expression of interest for empanelment of Chartered Accountants / firms whose office / branch is situated locally at the place where IML / RS depots exist of in the same / neighboring district to conduct the internal audit of these depots for the financial year 2012-13.

Last Date : 31/01/2012

Address : Karnataka State Beverages Corporation Limited

NO. 78, Seethalakshmi Towers, Mission Road, Bangalore - 560027 - Karnataka - India

Phone : 22483638/ 39/ 43

Empanelment - Employment Generation Mission (EGM)

Description : Expression of Interest for conduct of Audit of the Accounts of EGM.

Last Date : 30/01/2012

Address : Employment Generation Mission (EGM)

Assam, Nayantara Building (5th Floor), Sixmile, Khanapara, Guwahati - 22 – India

Prosegur gets FIPB nod to invest in Security and Intelligence Services (India)

The first strategic foreign investment in the country's cash management space has been sealed with the regulatory clearance for a joint venture between Spanish multinational Prosegur and Delhi-based Security and Intelligence Services (India). The Foreign Investment Promotion Board, the nodal body that clears FDI into India, cleared the proposal last week allowing one of the world's largest private security companies to enter India. Prosegur will invest around 100 crore for a 49% stake in the newly-launched local entity, in which the Indian partner will hold 51%. The joint venture will offer cash management solutions to Indian banks, financial institutions and organised retail firms. "The idea is to build world-class cash processing infrastructure and technology for productivity enhancement and superior risk management," said Rituraj Sinha, chief operating officer at SIS. Prosegur will bring in expertise from its global portfolio which includes over 600 offices across the world.

Source: Economic Times

Empanelment - Jiwaji University, Gwalior

Description : Reputed Chartered Accountant firms having annual turnover of at least Rs. 5, 00, 000/- in assessment year 2011-12 for bank reconciliation work of their all bank accounts for the period of 01/04/2001 to 31/3/2012.

Last Date : 27/01/2012

Address : Jiwaji University, Gwalior

Madhya Pradesh – India

Download Link:- http://www.jiwaji.edu/pdf/tenders/tendar%20charted%20accounted.pdf

After 7 months wait, RBI allows FDI in LLPs

The Reserve Bank of India has agreed to notify foreign direct investment rules in limited liability partnerships, a form of business organization that is popular globally but has not taken off in India. The government had last year allowed foreign investors to pick up stakes in LLPs through the 100% automatic FDI approval route but the proposal did not take effect as the RBI did not notify the rules under the Foreign Exchange Management Act. The central bank considered LLPs a 'loose structure'. "We had sought certain clarifications from the government. Now that we have received them, the RBI will shortly issue the guidelines," a RBI spokesperson told ET. However, officials in the ministry of corporate affairs reiterated that no changes will be made to the LLP Act. "We have repeatedly written to the RBI to revise its stance on LLPs and the existing Act. We are hopeful that they would soon be notified," a senior ministry official said.

Source: Economic Times

SEBI cuts timeframe for buyback process to 44 days

Market regulator SEBI has reduced the timeframe for completion of buyback of shares by companies to 34-44 days, a decision which could facilitate the government in getting closer to its ambitious disinvestment target of Rs 40,000 crore for the current fiscal. Earlier, the buyback process could take anywhere between 63 to 114 days. These changes form a part of amendments made by the regulator in the SEBI (Buyback of Securities) Regulations, 1998. They have come into effect from January 3. “The timeline for various activities involved in the buyback process have been revised which shall result in substantial reduction of time taken for completion of buyback,” SEBI said while announcing the changes.

Source: The Hindu Business line

SEBI sets norms for ‘safe' foreign investments in stocks

Stock market regulator SEBI on Friday prescribed detailed guidelines for qualified foreign investors (QFIs) to directly invest in the Indian equity market. A QFI is a resident of a country compliant with the Financial Action Task Force (FATF) standards to combat money-laundering and terrorist financing. The country should also be a signatory to the International Organisation of Securities Commission's Multilateral Memorandum of Understanding, said SEBI. The QFI should not be an Indian resident or registered with SEBI as a foreign institutional investor or sub-account. QFIs meeting the Know Your Customer requirements have been allowed to invest in equities listed on Indian stock exchanges in a demat account opened with a SEBI-registered qualified Depository Participant (DP). SEBI has prescribed a set of parameters for a DP to qualify for doing business with QFIs. DPs with a minimum paid-up capital of Rs 50 crore, that are themselves a clearing bank or having membership of a clearing corporation are eligible.

Source: The Hindu Business line

Govt depts must work together

The Enforcement Directorate (ED), set up under the Foreign Exchange Management Act, 1999, is reportedly stymied and frustrated by another instrumentality of the central government, the Central Board of Direct Taxes (CBDT), set up under the Income-tax Act, 1961, in its successful prosecution of Indians who have reportedly stashed away money with LGT bank in Liechtenstein, and whose names were revealed to India a couple of years ago by the German government, under the Double Taxation Avoidance Agreement (DTAA) between the two countries. In a country, which is admittedly a union of states with a federal bias, centre-state discords aren't uncommon, so much so the GST (Goods and Services Tax) to be taken up across the nation is still hanging fire, despite several rounds of discussions, with several sticky points remaining to be sorted out, that would convince the states that neither its revenue nor its power is being compromised. But this time around, it is the laughable right arm-left arm syndrome that is once again in full play.

Source: The Hindu Business line

VAT hike makes festival expensive

This year, celebrating Pongal is going to be a costly affair with prices of all items going up. While the government’s revision of VAT has enhanced the prices, including that of oil, the prices of other edible products have also been raised by shopkeepers. Sugarcane is being sold at Rs 60 to 80 per pair, while jaggery is sold at Rs 40 per kg. Non-vegetarians also have to shell out cash, as mutton is now selling at Rs 400 per kg and chicken at Rs 110 per kg. Fish is not available in the markets, but is being sold in small quantities on street corners: five medium-sized sankara fish are being sold at Rs 150. People who have gone without fish for some time now are grabbing the fish irrespective of the high price. Travelling is also going to be expensive after the hike in bus fare, and autorickshaws are charging higher rates as well. People who normally flock to the seaside during Pongal will have to pay more.

Source: IBN Live

Anti-dumping on 4 items imported from China extended for 5-yr

In the backdrop of widening trade gap with China, India today extended for five years anti- dumping duty on import of four Chinese products, including silk fabrics and a sweetener. The duty is imposed to protect the domestic industry from cheap imports. Import of certain type of silk fabrics from China will attract anti-dumping duty of $1.82 to USD 7.59 per metre, a notification of the Revenue Department said. The duty was first imposed on the fabrics in December 2006 till December 2011. India had a trade deficit of USD 16 billion against China during 2010-11. It has already crossed USD 20 billion in the first seven months of the current fiscal.

Source: Economic Times