Mah Satyam - Big story of the Month

Mahindra Satyam, earlier known as Satyam Computer, on Wednesday announced its financial results for the first time the Satyam fraud came to light.The the year ended March 31, 2010, it reported a net sales of Rs. 124.60 crore on net sales of Rs. 5481 crore. For year ended March 2009, the restated earnings show a net loss at Rs. 8,176.8 crore on net sales of Rs. 8,812.6...

ROC to take action against defaulting companies

ROC to take action against defaulting companies   ROCs have issued Show Cause Notices to the defaulting companies which have not filed their Balance Sheets and Annual Returns within the time. Recently, ROCs have issued Show Cause Notices to the defaulting companies which have not filed their Balance Sheets and Annual Returns within the time prescribed under Section 159 and 220 of the Companies...

Reports of the Parliamentary Standing Committee on Finance on the Companies Bill, 2009 and the Company Secretaries (Amendment) Bill, 2010.

Reports of the Parliamentary Standing Committee on Finance on the Companies Bill, 2009 and the Company Secretaries (Amendment) Bill, 2010.  The Hon'ble Parliamentary Standing Committee on Finance placed their report on the Companies Bill, 2009 as well as report on the Company Secretaries (Amendment) Bill, 2010 before the Lok Sabha on 31st August, 2010.  The reports are placed on the website...

Companies Bill 2009- Auditors to pay investors for fraud by companies

Companies Bill 2009- Auditors to pay investors for fraud by companies The new Companies Bill could contain a provision that will make auditors compensate retail investors in cases of corporate fraud, a measure aimed at bringing in more accountability into audit profession. In a representation made before the parliamentary standing committee on finance, the ministry of corporate affairs has suggested...

BSE Card Is "Intangible Asset" For Depreciation: Supreme Court

Techno Shares & Stocks vs. CIT (Supreme Court) BSE Card is an "intangible asset" and eligible for depreciation u/s 32(1)(ii)  S. 32 (1), as amended w.e.f. 1.4.1998 allows depreciation on "intangible assets" being, inter alia, "licenses … or any other business or commercial rights of similar nature". The Tribunal took the view that a BSE card was an "intangible asset" eligible for depreciation....

Recommendation to Make Formulation of a CSR Policy Mandatory for Big Companies

Recommendation to Make Formulation of a CSR Policy Mandatory for Big Companies In response to the overwhelming concerns shown by the Standing Committee of Parliament on Finance (SCF), which thoroughly examined The Companies Bill, 2009, on the extent of Corporate Social Responsibility (CSR) being undertaken by corporates and the need for a comprehensive CSR policy, the Ministry of Corporate Affairs...

DTC - A hit on FII

The Direct Taxes Code, which was recently tabled in the Parliament has as one of its noble objectives, reducing the uncertainty and litigation for the foreign investors. However, the recent version of the Bill may have just done the opposite for the Foreign Institutional Investors (FIIs). One hopes that some of these proposals are unintended and when the Standing Committee reviews the Bill, they will...

Provisions of DTC 2010 versus DTC 2009

QUESTION: Direct Taxes Code Bill was introduced in Parliament. How far is it different from the draft Code, 2009? ANSWER: The Bill is proposed to be effective only from April 1, 2012, so as to cover the income of the financial year 2011-12. It will also go to the Parliamentary Committee before it is taken up by Parliament. This is welcome because it will no longer be rushed through as it was earlier...

DTC- No taxes break on Home Loan Principal amount.

DTC No taxes break on payment of Home Loan Principal amount  The simplified Direct Tax Code (DTC) Bill introduced in Parliament on Monday, which will become effective from April 1, 2012, holds a few surprises, including the withdrawal of tax deduction on the principal component of housing loans. The bill, that will replace the Income Tax Act 1961, seeks an increase in exemption threshold of...

Software Supply Is Not "Sale": Madras High Court

Infotech Software Dealers Association vs. UOI (Madras High Court) Though software is "goods", its supply may be a "service" and not a "sale" S. 65(105)(zzzze) of the Finance Act, 1995 inserted by the F (No. 2) Act, 2009 provides for the levy of service tax on "any service provided … to any person, by any other person in relation to information technology software for use in the course, or furtherance,...

Shares Income: LTCG remains exempt and Short Term Capital Gain taxable at half the rate under DTC

Shares Income: LTCG remains exempt and Short Term Capital Gain taxable at half the rate under DTC DTC Bill proposes to tax short-term capital gains arising from stocks and mutual funds at half the marginal rate.So, if your marginal tax rate is 30 per cent, you will pay a short-term capital gains tax at 15 per cent. As far as long-term capital gains tax goes, it has been kept out of the tax net, subject...

Exemption limit for wealth tax to go up to Rs 1 cr

Exemption limit for wealth tax to go up to Rs 1 cr The Direct Taxes Code (DTC) Bill proposes to raise the exemption limit for imposing wealth tax to Rs 1 crore from Rs 15 lakh at present, a move that will help a lot of taxpayers avoid the levy. The Rs 1 crore limit proposed in the Direct Taxes Code Bill, however, is much less that the exemption of Rs 50 crore proposed in the original draft. The DTC...