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CERTFICATE COUSE ON IFRS

Certificate Course on International Financial Reporting Standards
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The International Financial Reporting Standards (IFRS) issued by International Accounting Standards Board (IASB) are gaining recognition as Global Reporting Standards. The Council of the Institute of Chartered Accountants of India, while appreciating the emerging diversities and complexities in the world of accounting and the need for knowledge of IFRS in relation to the convergence of the Indian Accounting Standards with IFRS, has decided to launch a Certificate Course on International Financial Reporting Standards for its members. The objective of this Course is to enhance the knowledge as well as to provide benefit to the members in the global service market.

The Course aims at providing:
Introduction of the concepts of IFRS


Dissemination of knowledge on IFRS;


Comparison of IFRS with existing Indian Accounting Standards;


Issues in relation to IFRS;


Conversion of Financial Statements prepared on the basis of Indian GAAP to IFRS based financial statements.



Apart from the comprehensive theoretical aspects, this course, the first of its kind in India, will sharpen the expertise and excellence of our members through multiple case studies across the industry and service sector.

The course will be conducted initially at Mumbai, Delhi, Bangalore, Hyderabad, Kolkata and later on in Chennai, Ahmedabad, Jaipur, Kanpur, Chandigarh and other cities. The registration for the course will commence from 1st November 2008. The registration will be on first come first serve basis. The schedule of classes for Mumbai centre will be announced shortly.

For any query, please contact: National Course Director:
CA. Amarjit Chopra
Central Council Member
Mob: 98101 00299,
E-mail: amarjitchopra@vsnl.net; CA. S. Gopalakrishnan
Central Council Member
Mob: 98497 71066
E-mail: gopalakrishnan.s@in.pwc.com;

Nodal Officer:
CA. Karuna Bhansali
Mob. No. 9310998451
E-mail: karuna.bhansali@icai.org

TIPS FOR CLEARING CA FINAL CORPORATE LAW ANS SECRETARIAL PRACTICE PAPER

HI FRIENDS,

1. STUDY DIRECTORS AND BOARD MEETINGS VERY VERY THOROUGHLY AND DIRECTORS MUST BE REVISED AT LEAST FOUR TIMES BEFORE THE PAPER.

(REMEMBER THE SECTIONS OF DIRECTORS AND BOARD MEETINGS BY HEART)


2. YOU CAN LEAVE TWO ACTS IN THIS PAPER. THERE IS ADEQUATE CHOICE IN THIS PAPER. LIKE. YOU CAN LEAVE INTERPRETATION OF STATUES AND COMPETITION ACT.. IF YOU WANT TO LEAVY ANY OTHR YOU HAVE TO CAREFULLY ANALYSE THE SCANNER..

3.. DONT LEAVE ANY QUESTION FROM LAST TEN YEAR'S PAPER .. (GIVEN AFTER EACH CHAPTER IN MUNISH BHANDARI'S BOOK)

4. STUDY THE SEBI GUIDELINES VERY CAREFULLYN AND TRY TO GRASP THEM FROM YOUR HEART..


FOR ANY FURTHER QUERIES CONTACT AT :

CA VIKAS KAPAHI
09914441557
VIKASKAPAHI@GMAIL.COM

FOREIGN COMPANIES TO DECLARE TAX EXEMPT INCOME

The Central Board of Direct Taxes (CBDT) vide notification No.91 dated 28/08/2008 has directed that where an agreement entered into by the central government with any foreign government for granting relief of tax or avoidance of double taxation provides that any income of resident of India " may be taxed" in the other country, such income shall be included in his total income chargeable to tax in India in accordance with the provisions of the Income-tax Act and relief shall be granted in accordance with the method for elimination or avoidance of double taxation provided in such agreement.As a result of the aforesaid notification, wherever any income of a resident of India is also eligible for being taxed in the other country also with which India has signed a tax treaty for avoidance of double taxation, such a person will have to include such income as chargeable to tax in India and claim the relief in accordance with the tax treaty.In other words, in the first step the income has to be shown as chargeable to tax and in the second step relief is to be granted as per the tax treaty. Even if the income is taxable outside India, the assessee must include it in the total income chargeable to tax in India. Relief as per tax treaty will be granted thereafter.One fails to understand the intent and purpose of the above notification. It is reported that "with a large number of foreign companies operating in India, the department has found that there are many cases where either they are not reporting their exempt income or under reporting it.While the assessee can avail the same foreign tax credit even now, the tax department will get a much better understanding of his earnings, a finance ministry official explained."It, however, sounds strange that an assessee should be required to add to his total income even that income which is not taxable in India by virtue of the fact that the same is taxable in a foreign country.It is an internationally accepted principle of law that tax treaties supersede the domestic tax laws of both the treaty countries. Such treaties are a complete code in themselves. It is an agreement between two sovereign states and therefore above the individual domestic tax laws.As observed by the Hon'ble Supreme Court in case of Azadi Bachao Andolan (263 ITR of 706). "The tax treaties are essentially a bargain between two countries as to the division of tax revenues between them in respect of income falling to be taxed in both jurisdictions."Thus if the Tax Treaties are supreme, how can the CBDT direct that such income which may be taxed "in the other country" must be included in the total income in accordance with the provisions of Income-tax Act.It is also not clear as to how an assessee will take relief from double taxation. The format for electronic filing of return of income, which is mandatory now, does not have suitable columns or space for availing relief from double taxation.It appears that CBDT in an overzealous efforts is trying to force the foreign enterprises to disclose in their Indian tax returns that income also which is taxable outside India. Therefore, a notification has been issued under Section 90(3) of the income-tax act without bothering to see that section 90(3) is meant to clarify by way of notification the "terms" not defined in the act. The said section cannot by any stretch of imagination be used to make disclosure of exempt income as mandatory.The aforesaid notification is likely to create unnecessary confusion without any meaningful benefit to the Revenue. Therefore, it is felt that the CBDT should reconsider their decision and withdraw the notification which appears to be not only irrational but also illegal being without authority of law.
-- CA. VIKAS KAPAHI TREASURER JAB WE MET CAREDEFINING PROFESSIONALISM

TDS only on arrears of salary actually paid during FY 2008-09

TDS only on arrears of salary actually paid during FY 2008-09
October, 01st 2008
TDS only on arrears of salary actually paid during FY 2008-09
No. 402/92/2006-MC (46 of 2008)
Government of India/ Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 30th September 2008
Clarification regarding tax deduction at source on arrears of salary paid to government servants on account of implementation of the recommendations of Sixth Central Pay Commission
The Implementation Cell of the Department of Expenditure, Ministry of Finance vide its Office Order F. No. 1/1/2008-IC dated 30th August, 2008 has stated at Para 2(v)
“Bills may be drawn separately in respect of the arrears of pay and allowances for the period from January 1, 2006 to August 31, 2008. The aggregate arrears, computed after deduction of subscription at enhanced rates of GPF and NPS with reference to the revised pay, may be paid in two installments, the first installment being restricted to 40% of the aggregate arrears. DDOs/PAOs will ensure that action is taken simultaneously in regard to Government’s contribution towards enhanced subscription. Orders in regard to the payment of the second installment of arrears will be issued separately.”
2. A number of representations have been received by Central Board of Direct Taxes(CBDT) seeking clarification as to whether TDS need to be deducted on 40% of arrear to be paid during 2008-09 or on the entire arrear payable to the government servant. The matter has been examined by the CBDT and the issue is clarified as under:-
Salary is as defined under Section 15 of Income Tax Act, 1961:-
(a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not;
(b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him;
(c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year.
3. It is clear from the Office Memorandum issued by the Department of Expenditure that 60% of the pay arrears neither fall in the category of due nor are allowed. Moreover, Section 192 of Income Tax Act’61, inter alia, requires any person responsible for paying any income chargeable under the head “Salaries” to deduct income tax on the amount payable at the stipulated rate at the time of payment. Therefore it is clarified that income tax at source would be deducted u/s 192 only from the arrears of salary actually paid during FY 2008-09. On the balance, tax would be deducted during the financial year in which these pay arrears are actually paid.
4. The above clarification has been issued by the CBDT vide Circular No.9/2008 [F.No.275/192/2008-IT(B)] dated 29th September, 2008.

'If it is creamier after Rs 4.5 lakh, then raise tax limit to Rs 4.5 lakh'

'If it is creamier after Rs 4.5 lakh, then raise tax limit to Rs 4.5 lakh'
October, 04th 2008
Ashoka Kumar Thakur, a lawyer and a petitioner in the Supreme Court case against the 27 per cent OBC quota in educational institutions, says that the increase in the income ceiling for creamy layer would hurt the poor among the OBC most.
Your petition had sought exclusion of the creamy layer from the OBC quota. What do you think of the increase in the cut-off in income ceiling of creamy layer?
It de facto means inclusion of the creamy layer. How many people earn Rs 4.5 lakh a year? The decision would hurt the poor among the OBC most and almost nullify the benefits of quota for them as the well-to-do among them grabs all.
Will the Supreme Court look at it as a contempt of its judgement?
It dilutes the whole spirit of the ruling. However, the government has every right to decide income limits for the poor and rich. I don’t think the court would say anything. I had asked so-called OBC leaders like Lalu Prasad and others if they needed quotas. They need it just for the votes.
What do you propose to do now?
I had agitated against the inclusion of creamy layer in OBC quotas earlier when Uttar Pradesh, Bihar and later Tamil Nadu and Kerala tried to open quota to all. I still believe that the benefits should reach only the deserving and not spread thin to all and sundry. We will examine the decision and see what can be done.
May be the limit of Rs 4.5 lakh would look all right after a few years?
Why then is our income-tax ceiling less than Rs 2.5 lakh? Why don’t they (the government) raise it to Rs 4.5 lakh if the creamy layer starts there?
What would be the increase in the number of beneficiaries after this change in the income limit?
I can only say that everyone except the poor among the OBC would benefit now. I have always believed that reservation is a churning and not the permanent solution. Unless poverty and illiteracy is not removed, the poor among the OBC will never be able to make use of these quotas.

LAW SOON TO PERMIT LIMITED LIABILITY PARTNERSHIPS

A law will soon be enacted to permit limited liability partnerships for professions like chartered accountancy, Prime Minister Manmohan Singh said Tuesday, even as he emphasised on good corporate governance for India Inc to compete globally.
“A law on limited liability partnership is on the anvil,” the prime minister told the diamond jubilee celebrations of the Institute of Chartered Accountants of India (ICAI) here.
“This would help in the consolidation and growth of small firms and promote multi-disciplinary practices in line with the evolving global trends,” the prime minister added.
Unlike public and private limited companies, India at present does not permit limited liability clause for partnership firms, as a result of which all its partners are jointly and severally liable in the event of losses.
Even the personal assets of a partner and his immediate family can be used to settle debts and pay off creditors in the event of loss. This apart, chartered accountancy firms cannot float private or public limited companies.
He also said the Chartered Accountants Act of 1949 will be amended and invited suggestions in this regard from the institute, whose membership has grown from 1,700 professionals in 1949 to over 150,000 today.
According to the prime minister, in various public discourses concerning the way Indian companies had been functioning, not much attention was being paid to corporate governance.
“Unless Indian firms come to be recognised worldwide for good corporate governance, they will not be able to compete globally in an increasingly inter-dependent integrated world,” he said.
“In the era of protectionism, few bothered about corporate governance and transparency in accounting and in management. Such laxity, however, is no longer possible. Shareholder democracy has come to stay,” he added.In this regard, the prime minister said chartered accountants were the watchdogs of this new corporate world that is full of opportunities, but also not without challenges.
The prime minister also said that while governance was being decentralised with more administrative powers to the village-level bodies, also called Panchayati Raj institutions, there was an equal need to ensure proper utilisation of funds.“A proper accounting system for funds received and spent by Panchayati Raj institutions will be critical to making this innovative experiment in decentralisation a success,” he said.
“With the presence of chartered accountants even in the remotest part of our country, you can also facilitate financial inclusion and access to finance for the rural poor, through micro finance and other innovative measures.”