Kapil Sibal launches tablet computer

New Delhi, Oct 5 (ANI): Union Communications and Information Technology Minister Kapil Sibal launched 'Akash' (a 35 dollar tablet) here on Wednesday.

Addressing the gathering on the occasion, an extremely delighted Sibal said with the launch of Akash, India demonstrates to the world that it has not faltered in its resolve to secure the future of the children.

"There are some moments in history, which will be milestones recognized by future generations. This is one such moment. Today, we see the beginning of dram realised. A dream in which every student in every corner of the country will have access to technology that defines the 21st century. Today, we reach for the sky and achieve what others said was impossible. Today, we demonstrate to the world that we will not falter in our resolve to secure our future for our children. Today we celebrate 'Akash' and ponder over it and understand for ourselves what it means for our educational system and for our children," said Sibal.

"But let me not limit the achievements of this great enterprise to only our children. Akash ultimately is a device, it is a low cost device, which will enable the children of the world to access information. Let me send out a message not to just our children, but the children around the world. This is not just for us," he added.

A tablet computer, or simply tablet, is a complete mobile computer, larger than a mobile phone or personal digital assistant, integrated into a flat touch screen and primarily operated by touching the screen.

It often uses an onscreen virtual keyboard, a passive stylus pen, or a digital pen, rather than a physical keyboard. (ANI)

ACQUIRERS PUSH OPEN OFFERS UNDER OLD TAKEOVER CODE

The Empowered Committee of State Finance Ministers will meet on October 14, the first since it returned from aEurope trip last month to study the Goods and Services Tax (GST) model there and how it can be implemented in India.

The learning from the fourcountry tour tops the agenda of the meeting, while the GST structure, the compensation package on account of the Central Sales Tax phase-out, and the information technology platform will also be discussed.

The implementation of the indirect taxation system has been stuck following opposition from some states. The Centre was expecting states opposing GST might soften their stance after seeing how GST works in other countries. But now there are indications that the 10-day tour of France, Spain, Luxembourg and Belgium might have reaffirmed the states’ beliefs about their demands on GST.

Some finance ministers have come home convinced that if countries in Europe can have multiple rates for GST so can India. For some others, the European structure cannot be compared with India.

After seeing how GST works in Europe, Empowered Committee Chairman and Bihar Deputy Chief Minister Sushil Modi has arrived at a conclusion that a rate band instead of fixed and uniform rates of taxes should be adopted in India on the lines of Europe to provide flexibility to states.

European countries have kept the standard rate at 15 per cent and there is a band ranging between 15 and 25 per cent.

Also, there is a reduced rate of five per cent. They also have an exemption threshold.

For Madhya Pradesh Finance Minister Raghavji, who has strongly opposed all the GST models suggested by the Centre from the beginning, the trip was an eye-opener. He says he realised the federal structure in Europe is much different from ours and a cash economy like India cannot adopt GST in the form suggested by the Centre.

A finance ministry official, however, said states had conveniently learnt from Europe whatever suited them, but when it came to various other things, like a dispute resolution panel with binding decisions, they felt India was different and could not copy these things.

During the tour, the ministers had met Spain’s secretary general for finance, the French minister for foreign trade, Belgium’s deputy prime minister and minister of finance, the OECD deputy secretary general, and secretary of the Eu

The implementation of the indirect taxation system has been stuck following opposition from.

Waiver of stamp duty for Form 5- for companies registered in New Delhi

The Ministry of Corporate Affairs has in exercise of the powers conferred under Section 642(1) read with Section 610B of the Companies Act, 1956 have amended the Companies (Central Government’s) General Rules and Forms 1956 to substitute the Form No 5 which is filed for Notice of consolidation, division, etc. or increase in share capital or increase in number of members.

The highlight of the amendment is as follows:

·         The increase in authorized share capital of any company which is registered in New Delhi would not attract any  payment of stamp duty.

·         The above is pursuant to the order of the Hon’ble High Court of New Delhi passed in the matter of S E Investments Limited Vs Union of India and Others [ W.P.

           (c) 2393/2010 and CM Appl. 4794/2011] whereby it was held that there is no provision in the Delhi Stamp Act for payment of stamp duly on “increase in authorized

            capital”.

·         The above rules are effective from 25 September 2011.

Even MCA has mentioned on its website in FAQ section related to e-payment od stamp duty that ” The Hon’ble High Court of Delhi at New Delhi has held in the matter of S E Investments Limited Vs Union of India and Others [W.P. (c) 2393/2010 and CM Appl.4794/2011] that there is no provision in the Delhi Stamp Act for payment of stamp duty on “increased authorised capital”. Payment of stamp duty for increase of authorised capital being paid with filing of eForm No.5 with respect to State of National Capital Territory of Delhi is made optional.”

source : taxguru.in

Auditors Spared of Matching XML A/Cs With Original Papers

Auditors and company secretaries will not be required to certify that filing of accounts under a new electronic format match the original balance sheet, relieving finance professionals from a burdensome compliance in the first year of this new reporting mode. All listed companies and certain unlisted ones are required to file their financial statements for the year ended 31 March 2011 using the Extensible Business Reporting Language (XBRL) format. Moreover, finance professionals, including chartered accountants, have to certify that the audited balance sheet of a company and the XBRL-converted documents match. But for this year only authentication by a practicing CA/CS/CWA will be required and MCA will issue a circular by this week, Avinash K Shrivastava, joint secretary, ministry of corporate affairs, told ET. Thus, these experts just need to authenticate that the data is accounted for and they don't have to validate the converted XBRL document. A government official, however, said there was no significant difference between authentication and certification as both need digital signatures of registered accountants but as the term authentication was more acceptable to companies the ministry decided to go forward with it. XBRL is a global standard for exchanging business information. Under this format, companies report their financial statements using XBRL syntax as an .xml file instead of uploading their balance sheets in .doc or .pdf format. However, Indian companies have some apprehensions about this new mode as they fear that there would be differences in the standard reported balance sheet and the one accepted by the XBRL format. The certification process would have been cumbersome and confusing as several terms would have to be reclassified by the accountants. This would have increased our costs significantly as well as led to a lot of loss in data, an official of a service-based firm told ET. According to experts, this is primarily because in XBRL-enabled filing of financial statements, financial terms may be differently defined than in a standard balance sheet, resulting in a lot of aggregation and desegregation of figures.In the US, XBRL was introduced five years ago, but the process of certification started only this year. India, too, should adopt a gradual process of business reform, a reputed accountant told ET. Ministry officials rubbished the argument. There is no question of any sort of data being lost as at the end of the day it's just reclassification. The net profit after and before tax would still be the same. Such issues are just being highlighted by some with vested interests, the official added. The ministry is doing everything to pacify all stakeholders while ensuring that XBRL as a forward-looking reporting standard gets adopted as smoothly as possible, Shrivastava said. Most accountants ET spoke to said that for this year the ministry didn't allow companies to define their own accounting elements and definitions in their statements under XBRL, something they call 'extensions'. Senior MCA officials dispute this. The issue of extensions is being considered throughout the world as allowing companies to classify their own elements beats the very purpose of a standard reporting format and such a practice can lead to bypassing various important overheads in a balance sheet, one official said on condition of anonymity. Banks, insurers and NBFCs have been exempted from XBRL filing for 2010-11.

I-T dept doesn't know what to do with money from Kejriwal fans

While Team Anna spokesperson Arvind Kejriwal is attending a meditation course at Sohna in Haryana, income tax department officials are losing their peace of mind over more worldly affairs involving their former colleague.

Kejriwal’s supporters have bombarded income tax offices with cheques and demand drafts, offering to pay his tax dues.

The I-T department had recently sent a letter to the former Indian Revenue Service (IRS) officer, asking him to clear dues of Rs 9.27 lakh, as he had violated certain bond conditions. While Kejriwal denied the claim, as a mark of protest several of his followers volunteered to collect the funds and pay on his behalf.

An official in the department said all kinds of people had been writing to them and sending money, with the amounts starting around Rs 1,000. The amount received so far is significantly less than Rs 9.27 lakh and the department has not been able to figure out what to do with the letters, cheques and demand drafts pouring in.

The dues comprise paid study leave salary of Rs 3.5 lakh for two years, interest on the amount, and an office loan taken to buy a computer several years ago. Kejriwal could not be reached for a comment as he was in the last leg of a 10-day ‘vipassana’ retreat.

However, his colleagues Business Standard spoke to said they received calls from a few people who had reached the income tax office to pay his dues, but they were not aware a large number of people were sending money to the department.

“A lot of people have contacted us too, saying they want to contribute and pay the dues. We have not decided anything on that,” said one of them.

They said Kejriwal had made his position clear that he did not violate any bond conditions and since then there had been no further communication from the government.

Kejriwal had gone on study leave from November 2000 to October 2002. As per rules, he was required to work for the government for a period of at least three years after returning from the leave.

While Kejriwal said he joined back in November 2002 and resigned in February 2006, the finance ministry said he went on ‘extra ordinary leave’ (EOL) without pay from November 2003 to October 2005 and that period did not count as regular service.

The I-T department had considered Kejriwal’s appeal to waive the dues and had referred it to the department of personnel and training, which turned it down saying it violated bond conditions. The department has not yet accepted his resignation and wants him to pay the amount so that a ‘no dues’ certificate could be issued.

CBEC Cancel Its Instruction on Service Tax !

CBEC has withdrawn its own instruction F No. 275/7/2010-CX-8A, dated 30-6-2010, wherein the Board had communicated its view that services tax on a taxable service received in India, when provided by a non-resident/person located outside India, would be applicable on reverse charge basis with effect from 1-1-2005, and that the ratio of judgment in Indian National Shipowners Association (INSA) v. Union of India [2009] 18 STT 212 (Bom.) would not apply to such cases

INSTRUCTION [F. NO. 276/8/2009-CX-8A], DATED 26-9-2011
Kind attention is invited to instruction F No. 275/7/2010-CX-8A, dated 30-6-2010, wherein the Board had communicated its view that services tax on a taxable service received in India, when provided by a non-resident/person located outside India, would be applicable on reverse charge basis with effect from 1-1-2005, and that the ratio of judgment in Indian National Shipowners Association (INSA) v. Union of India [2009] 18 STT 212 (Bom.) would not apply to such cases. Further, direction was issued to field formations to defend the levy of service tax on such services for the period on or after 1-1-2005, as post INSA judgment, it has been held by the High Courts/Tribunal in a large number of cases, applying ratio thereof, that service tax on such services is leviable only w.e.f. 18-4-2006. However, the appeals filed by the department before the Hon’ble Supreme Court, for defending the levy of service tax on such services w.e.f. 1-1-2005, have been dismissed recently (subsequent to the issuance of said instruction dated 30-6-2010) in the following cases.

•   (i)  SLP (C) No. 29539 of 2010 in CCE v. Bhandari Hosiery Exports Ltd.
• (ii)  SLP (C) No. 18160 of 2010 in CST v. Unitech Ltd.
• (iii)  SLP (C) No. 34208/09 of 2010 in UOI v. S R Batliboi & Co.
• (iv)  SLP (C) No. 328/332 of 2011 in UOI v. Ernst & Young
• (v)  SLP (C) Nos. 25687-25688/2011 in CCE v. Needle Industries
• (vi)  SLP (C) Nos. 25689-25690/2011 in UOI v. SKM Engg. Products

Further, Review Petition No. 1686 of 2011 filed in the case of Bhandari Hosiery has also been dismissed by the Hon’ble Supreme Court vide order dated 18-8-2011.
2. In view of the aforementioned judgments of the Hon’ble Supreme Court, the service tax liability on any taxable service provided by a non-resident or a person located outside India, to a recipient in India, would arise w.e.f. 18-4-2006, i.e., the date of enactment of section 66A of the Finance Act, 1994. The Board has accepted this position. Accordingly, the instruction F No. 275/7/2010-CX-8A, dated 30-6-2010 stands rescinded.
3. Appropriate action may please be taken accordingly in the pending disputes

Sebi bans 7 GDR issuers for price manipulation

BS REPORTER Mumbai, 21 September THE Securities and Exchange Board of India (Sebi) has banned seven companies from raising fresh capital, after investigations revealed they manipulated share prices after issuing global depository receipts (GDRs). The regulator has also barred 10 entities, including a foreign institutional investor (FII) and sub-accounts, from dealing in securities market.

The firms barred from issuing equity shares or any other instrument convertible into equities are Asahi Infrastructure & Projects, IKF Technologies, Avon Corporation, K Sera Sera, CAT Technologies, Maars Software International and Cals Refineries. All of them made at least one GDR issue during 200709.

According to a44-page order issued by wholetime member Prashant Saran, asimilar method was used by all these entities. The companies made a GDR issue that was subscribed even if the pricing was at a premium. Thereafter, within ashort period of time, a set of common investors converted their GDRs into normal shares, again sold to a constant group of clients.

The order says: “The various aspects of GDR issues, like the large size of the issue vis-àvis existing size of the issuing company, unimpressive financials of the company, common initial investors, high proportion of cancellation of GDRs repeatedly by a set of FII/sub-accounts, sale in Indian exchanges, most of which are with a constant group of clients, and further off-loading by them, point towards an elaborate scheme to manipulate markets.” The findings reveal evidence of a pre-arrangement between parties to transactions at various stages of this complex scheme, it adds. The financial instruments regulator has asked the Enforcement Directorate to further look into the matter. Both the depositories — NSDL and CDSL — have been directed to freeze the beneficial owner accounts of all persons/entities named in the order.

Some of the entities that form part of the common pool of investors indulging in this practice are European American Investment Bank Ag (FII), India Focus Cardinal Fund (sub-account), MAVI Investment (sub-account), KII Limited (sub-account) and Sophia Growth-A share Class of Somerset India Fund (sub-account).

Other entities that have been barred are Basmati Securities Pvt Ltd, Oudh Finance & Investment Private Ltd, Alka India Ltd, SV Enterprises and JMP Securities Pvt Ltd (in capacity of a client to other intermediary or in proprietary account).

According to the regulator, the beneficiaries of this manipulation are the GDR issuing companies that end up with a surge in net worth along with the lead manager who earns commissions for providing services and the sub-accounts that purchase GDRs at discounts in an illiquid foreign market and exit in the domestic market with the active connivance of related counterparties that generate volume and depth to attract domestic investors.

The regulator has also barred (with immediate effect) Pan Asia Advisors Ltd and Arun Panchariya (Investment