public sector undertakings

The new direct taxes code has provisions to restrain public sector undertakings and the tax department from taking their disputes beyond a certain level, a move aimed at curbing wasteful litigation. Full Article

The country’s apex audit body Comptroller and Auditor General of India (CAG) has called for an increase in fees paid to statutory auditors of all government companies. In a communication sent to managing directors of public sector undertakings (PSUs), the CAG said that with high inflation leading to audit cost escalation and increased compliance burden on auditors, it was “prudent’’ that the fees paid to auditors should be raised. Full Article

The Ministry of Corporate Affairs (MCA) has decided to put the early-warning system on the backburner due to technical snags.Sources close to the development said the software-based system incorporated ten financial parameters for diagnosing problems in a company which was not giving the desired results. Full Article

Chartered Accountant firms in India with at least one full time FCA (Partner/Sole Proprietor) can apply for empanelment with this office for allotment of audit of Public Sector Undertakings during January-February as notified every year. The criteria for empanelment and selection of statutory auditors have been arrived at after due consultation with the Institute of Chartered Accountants of India. Full Article

In The Case of : Gujarat Mineral Development Corp vs. ITAT (Gujarat High Court) SUMMARY OF THE CASE LAWS Cross appeals filed by the assessee, a State Govt. undertaking, and the department were dismissed by the Tribunal on the ground that the parties had not obtained the approval of the Committee on Disputes (“COD”). The [...] Full Article

Over 200 public sector undertakings (PSUs) do not have a company secretary on their rolls even though they are mandated to have one, the government informed Parliament on Thursday.  “As per information available, 233 PSUs have not appointed a company secretary,” Salman Khursheed, minister for corporate affairs, said in the Lok Sabha on Thursday. Full Article

Even as the government termed the forgery of about Rs 10,000 crore in private technology services provider Satyam Computer Services as ‘an aberration’ on Thursday, a report by the Comptroller Auditor General of India points to significant irregularities in the accounts of its own companies, including NTPC, Bharat Heavy Electricals Ltd (Bhel), Mahanagar Telephone Nigam Ltd (MTNL) and [...] Full Article

SUMMARY OF CASE LAW Section 17(2)(ii) of the Income-tax Act, 1961, as it stood prior to amendment in 2007, did not contain any `deeming clause’ to deem rent paid less than 10 per cent or 7.5 per cent as a concession; in the absence of deeming the difference as perquisite, it is open to the [...] Full Article