New Delhi, February 14, 2017
Chartered accountants' apex body ICAI today said it is looking at alleged accounting irregularities at some Tata group companies in the wake of concerns raised by ousted chairman Cyrus Mistry.
Besides, the Institute of Chartered Accountants of India (ICAI) is examining the accounting issues related to the United Spirits Ltd (USL).
New Delhi, February 13, 2017
In a crackdown on alleged misuse of P-Notes for round-tripping, markets regulator Sebi has found five foreign funds to have issued these controversy- ridden offshore investment instruments to Indian nationals.
Besides, four registered foreign portfolio investors have issued Offshore Derivative Instruments (ODIs), commonly known as Participatory Notes or P-Notes to foreign nationals with "Indian sounding names" and Sebi has asked them to confirm if those individuals are NRIs or PIOs.
February 10, 2017
Can your clients deduct their legal expenses? There’s no cut-and-dried answer. Generally, it depends on the nature of the expense. As a new case shows, legal fees may be deductible under certain business provisions of the tax law or be recharacterized as other types of expenses (Sas, TC Sum. Op. 2017-2, 1/30/17).
For starters, legal expenses incurred for business purposes are generally deductible as “ordinary and necessary” expenses of the business. Conversely, most legal fees paid for personal reasons are not. However, the distinctions can get blurry, especially in matters contested in a divorce or in dealings relating to a business. For instance, under a special tax law provision, an individual may deduct expenses paid in connection with a claim of unlawful discrimination.
February 13, 2017
A report wrote that the four-tier GST rate structure may lead to classification disputes among businesses which will demand a lower tax rate.
The four-tier GST rate structure will open up floodgates of classification disputes with tendency among businesses to demand lower rate for their goods or services, says a research paper.
Four tax rates have been proposed under the Goods and Services Tax regime that is to introduced later this year.
February 13, 2017
Regulatory body SEBI, in a bid to protect the interests of investors who invest in securities, has issued some guidelines. It says that some unlisted companies are luring retail investors by issuing securities in the garb of private placement, without complying with the provisions of the Companies Act, 1956. Here is what it says:
Some unlisted companies are luring retail investors by issuing securities, including non-convertible and convertible debentures/ non-convertible and convertible preference shares/ equity shares in the garb of private placement, without complying with the provisions of Companies Act, 1956, read with the Companies Act, 2013, SEBI (Issue and Listing of Debt Securities), Regulations, 2008, SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares), Regulations, 2013 and SEBI (Issue of capital and Disclosure Requirements) Regulations, 2009.
New Delhi, February 12, 2017
The heads of excise and service tax in the Budget estimates can be removed once GST comes in, Hasmukh Adhia said.
Perhaps in a first, the government may have to recalibrate its budgetary tax collection estimate half-way after the goods and services tax (GST) comes into effect from July.
In Budget 2017-18, Finance Minister Arun Jaitley used the traditional tool of setting a modest growth to the expected revenue collection in the current fiscal for indirect tax projections of the next financial year.
New Delhi, February 11, 2017
The I-T department today extended the date for replying to the queries on cash deposits during the demonetisation period to February 15 and asked people to declare details of cash donations or gifts of Rs. 20,000 or more to reduce the chances of further scrutiny.
In an FAQ to clear the doubts over replying to SMS or e-mail queries received with regard to suspicious deposits made post note ban, the tax department said assessees should give “explanations” of the source of cash.
New Delhi, February 11, 2017
The CBDT has urged the Income-Tax department to ensure an enhanced accountability and probity in the public dealings and see to it that honest and tax compliant people are treated with “dignity and courtesy”. CBDT Chairman Sushil Chandra in a letter to his officials has urged them to stick to these principles and ensure that any “aberrations” are dealt with quickly as per rules.
“I would like all the officers and officials of the department to pursue the path of Revenue, Accountability, Probity, Information and Digitisation (RAPID) as desired by the Prime Minister and reiterated by the Finance Minister. “While pursuing the path of revenue mobilisation, which is an integral part of our core work, we must always keep in view the assurance given by the Finance Minister that all honest, tax compliant persons will be treated with dignity an courtesy,” Chandra wrote in the letter, also accessed by PTI.
February 10, 2017
At a meeting held at the PMO on Friday, which say participation of senior officers of various departments, held discussions to review the functioning of "Shell Companies" (companies which does not conduct any operations and indulge in money laundering) in India, so as to prevent their misuse for money laundering and tax-evasion, especially in the context of unearthing black money post demonetisation.
There are about 15 lakh registered companies in India; and only six lakh companies file their annual return. This means that large number of these companies may be indulging in financial irregularities.
February 9, 2017
The Ernst & Young global network’s member firm in Indonesia has agreed to pay a $1 million penalty to the Public Company Accounting Oversight Board for audit failure, noncooperation, and violations of the board’s quality control standards.
Two audit partners at the firm, known as KAP Purwantono, Suherman & Surja, were also sanctioned for their roles in the audit failure in 2011 involving an Indonesian telecommunications company. The former professional practice director for the EY network’s Asia-Pacific region and a former EY Indonesia engagement partner were sanctioned for the audit failure, while the former engagement partner was also sanctioned for noncooperation with a PCAOB inspection and investigation.
New Delhi, February 10, 2017
With the current financial year inching towards closure, CBDT has directed the taxman to step up survey operations to check non-deduction of TDS by firms and employers, especially in cases where such payments have dropped by more than 15 per cent as compared to last time.
The Central Board of Direct Taxes (CBDT) recently reviewed Tax Deducted at Source (TDS) collections and found that the Income-Tax department had netted Rs.2.85 lakh crore revenue till January 31, at a growth rate of 14.79 per cent over the corresponding period of last fiscal. The set target in this regard is Rs.3.50 lakh crore.
New Delhi, February 10, 2017
GSTN (Goods and Services Tax Network), a private limited company set up in 2013 for providing IT infrastructure to all stakeholders for the implementation of the Goods and Services Tax, has rejected a request from the Comptroller and Auditor General (CAG) to appoint an auditor as well as to conduct a supplementary audit as is being done, at present, for all government companies. Following a communication sent by the CAG in November 2016 on the subject of commencing a supplementary audit and appointing a Chartered Accountant for the company, the GSTN sent a reply on January 17 claiming that its Articles of Association do not “bestow” any right to either the state government or the Centre to “exercise control” over either the management or the policy of the GSTN.
February 09, 2017
A day after rolling out a platform to help its merchants and sellers with Goods and Services Tax (GST) compliance, Flipkart, along with other two biggies of India's ecommerce industry, Amazon and Snapdeal, has raised objections.
At a conference organised by FICCI in New Delhi on Thursday Amazon India head Amit Agarwal, Flipkart's cofounder Sachin Bansal and Snapdeal's cofounder and CEO Kunal Bahl joined hands to seek modifications in the draft version of the GST law. The provision that has the ecommerce giants worried has to do with tax collection at source (TCS).
New Delhi, February 9, 2017
The Comptroller & Auditor General of India (CAG) is creating multiple databases that will help the institution access various sources of information to make audit process more transparent and accountable, the CAG Shashikant Sharma said today.
"We are taking a census of data sources and creating a repository of data dumps that need to be accessed. We are developing a protocol for assessing the information without breaching the integrity and confidentiality of the databases," Sharma said at the inaugural session of ICAI-PIOB conclave here today.
New Delhi, Feb 8, 2017, PTI:
As per the module, income tax authorities will now have to create online digital records or entries issuing orders, the required approvals obtained in this regard, enquiries made and responses received from taxpayers. File photo. For representation purpose
Reducing discretionary powers of taxmen, the income tax department has asked its field officers to maintain digital records of summons, notices and special audit ordered by them.
Mumbai, February 8, 2017
The Reserve Bank today said it will set up a separate Enforcement Department beginning next fiscal to deal with non-compliance of various regulations of the central bank. “With a view to developing a sound framework and process for enforcement action, it has been decided to establish a separate Enforcement Department,” RBI said in a statement today while unveiling the policy where it left the benchmark rate unchanged at 6.25 per cent.
Necessary steps have been initiated in this regard and the new department will start functioning from April 1, it said.
New Delhi, February 8, 2017
RBI keeps repo rate steady at 6.25%; reverse repo and bank rate stand at 5.75% and 6.75%
Contrary to expectations of a 25 basis point (bps) rate cut, the Reserve Bank of India (RBI) kept repo rate steady at 6.25% in its sixth bi-monthly monetary policy review on Wednesday. Consequently, the reverse repo rate under the liquidity adjustment facility (LAF) remains unchanged at 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.