"01 March 2011" Archive

Union Budget 2011-12 – ICAI View

The Union Finance Minister has presented the budget for 2011-12 in the backdrop of growth of GDP @ 8.6% in 2010-11, contributed by a growth of 5.4% in agriculture, 8.1% in industry and 9.6% in services. The Minister shared that the economy has shown remarkable resilience to both external and domestic shocks....

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Posted Under: CA, CS, CMA |

The ICSI welcomes sustainable growth oriented Union Budget 2011-12

Budget to help broad based rebound in agriculture and continued momentum in Manufacturing Sector. CS Anil Murarka, President, ICSI. Budget reflects financial translation of the policy initiatives of the government towards inclusive growth. CS N K Jain, Secretary & CEO, ICSI...

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Posted Under: CA, CS, CMA |

ICAI President's Message – March 2011

In accordance with the decision of the Council and the suggestions of NACAS, the Indian Accounting Standard on Agriculture is being redrafted. We decided to make amendment in existing AS 11 on the lines of Indian Accounting Standard (Ind AS 21), ‘The Effects of Changes in Foreign Exchange Rates’ to provide an option to defer the excha...

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Posted Under: CA, CS, CMA |

Budget 2011- Summary of Chapter wise Changes in Custom Duty

As a measure of rationalization of duty structure the rates of 2% and 3% are being unified with the median rate of 2.5%. Accordingly basic customs duty on all goods currently attracting 2% has been increased to 2.5% and basic customs duty on those goods attracting 3% has been decreased to 2.5%.(S. No. 1 & 2 of Notification No. 21/2011-Cus...

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Posted Under: CA, CS, CMA |

Budget 2011- Investment linked deduction in respect of specified businesses

Under the existing provisions of section 35AD of the Income-tax Act, investment-linked tax incentive is provided by way of allowing hundred per cent. deduction in respect of any expenditure of capital nature (other than on land, goodwill and financial instrument) incurred wholly and exclusively, for the purposes of the "specified business...

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Posted Under: CA, CS, CMA |

Budget 2011- Collection of information on requests received from tax authorities outside India

Under the existing provisions of section 131(1) of the Income-tax Act, certain income-tax authorities have been conferred the same powers as are available to a Civil Court while trying a suit in respect of discovery and inspection, enforcing the attendance of any person, including any officer of a banking company and examining him on oath...

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Posted Under: CA, CS, CMA |

Budget 2011- Taxation of certain foreign dividends at a reduced rate

Under the existing provisions of the Income-tax Act, dividend received from foreign companies is taxable in the hands of the resident shareholder at his applicable marginal rate of tax. Therefore, in case of Indian companies which receive foreign dividend, such dividend is taxable at the rate of thirty per cent. plus applicable surcharge ...

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Posted Under: CA, CS, CMA |

Budget 2011- Toolbox of counter measures in respect of transactions with persons located in a notified jurisdictional area

In order to discourage transactions by a resident assessee with persons located in any country or jurisdiction which does not effectively exchange information with India, anti-avoidance measures have been proposed in the Income-tax Act. ...

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Posted Under: CA, CS, CMA |

Budget 2011- Rationalisation of provisions relating to Transfer Pricing

A. Section 92C of the Income-tax Act provides the procedure for computation of the Arm's Length Price (ALP). The section provides the methods of computing the ALP and mandates that the most appropriate method should be chosen to compute ALP. It is also provided that if more than one price is determined by the chosen method, theALP shall b...

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Posted Under: CA, CS, CMA |

Budget 2011- Sunset of tax holiday for certain undertakings engaged in commercial production of mineral oil

Under the existing provisions of section 80-IB(9) of the Income-tax Act, a seven-year profit-linked deduction of hundred per cent. is available to an undertaking, if it fulfils any of the following, namely:-(i) is located in North-Eastern Region and has begun or begins commercial production of mineral oil before 15t April, 1997;(i...

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Posted Under: CA, CS, CMA |