We have received queries from market participants whether the Master Repo Agreement finalised by FIMMDA is mandatory for repo transactions in Government Securities settled through CCIL. In this regard, it is clarified that the Master Repo Agreement finalised by FIMMDA is not mandatory for repo transactions in Government Securities settling through a Central Counter Party (CCP) [eg. Clearing Corporation of India Limited (CCIL)], having various safeguards like haircut, MTM price, margin, Multilateral netting, closing out, right to set off, settlement guarantee fund/ collaterals, defaults, risk management and dispute resolution/ arbitration etc. However, Master Repo Agreement is mandatory for repo transactions in Corporate Debt Securities, which is settled bilaterally without involving a CCP.
It has been brought to our notice that in some States the State Governments are implementing the ICT based Electronic Benefit Transfer (EBT) for routing social security benefits (MNREGA, NOAPS, etc.) to beneficiaries through the banking channel using the ‘one district one bank model’.
THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA 12 SUDDER STREET, KOLKATA – 700 016 -SUGGESTED MINIMUM PROFESSIONAL FEES AS APPROVED BY THE COUNCIL AT ITS -268TH MEETING HELD ON MAY 28, 2011 1. Fees for Cost Audit related assignments:
Notification No. 29/2011 – Income Tax The President of India is pleased to approve the creation of the Directorate of Income-tax (Criminal Investigation), to be known in short as DCI, in the Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, with immediate effect.
The next time an Income Tax team raids your business premise they will not seize anything but instead leave the name and contact number of their boss with you. The I-T team will do so even before they begin the raid and the step has been taken to do away with any grievance related to harassment or corruption by I-T officials under the garb of such operations.
Jawahar Singh Vs. Bala Jain & Ors. (Supreme Court – 09.05.2011) The Supreme Court has stated that it is the duty of the owner of a motor vehicle to ensure that it was not misused. Therefore, he would be liable to pay compensation for the accident if the vehicle is driven by a minor. The owner was asked to pay Rs 8 lakh to the family of a man who died in a road mishap in this case, Jawahar Singh vs Bala Jain. The court rejected the plea of the owner that the minor, who is his nephew, had taken away the key of the motorcycle without his knowledge and as such he cannot be held responsible. “We cannot shut our eyes to the fact that it was the minor, who came on the motorcycle and hit the scooter of the deceased from behind. The responsibility of causing the accident was, therefore, found to be solely that of the minor.
The Supreme Court last week set aside the judgment of the Gujarat high court and directed the sale of a wound-up company in Veraval at a higher price so that creditors will get their dues. The company judge had first ordered the sale at a one price, but recalled its order when a higher offer was made by another party. However, when one of the losing bidders moved the division bench of the high court, it confirmed the sale at the earlier price on the ground that a confirmed auction sale cannot be set aside merely because subsequently a higher price was offered by one of the bidders. Shradhha Aromatics Private Limited Vs. O.L. of Global Arya Industries Limited and others
State of Rajasthan Vs. Islam (Supreme Court 24.05.2011) An accused can escape conviction for murder if he proves that there was no premeditation for the act, occurred in a heat of passion, no cruelty involved and undue advantage taken, the Supreme Court has ruled. A bench of justices Asok Kumar Ganguly and Deepak Verma in a judgement said that the accused can seek immunity from murder only if all these four above circumstances are established in defence of the crime.
Ministry of Finance, Government of India has commissioned an in-depth and fresh study, engaging three top national level institutions for estimation of unaccounted income and wealth held within and outside India. This study will bring out the nature of activities that encourage money laundering and its ramifications on national security. The study has already commenced in March, 2011 and is expected to be completed within a period of 18 months.
KASTURI & SONS LTD, CHENNAI Versus UNION OF INDIA & others (Madras High Court)- Dated: 24-02-2011 – Service Tax – Based on the impugned circular of the second respondent, the third respondent is insisting for payment of service tax on maintenance charges payable to the company in Denmark and therefore, the impugned circular is challenged on various grounds including that the same is ultra vires section 83 of the Finance Act, 1994 and section 37B of the Central Excise Act, 1944, that when the section itself takes away the maintenance of software from the purview of service tax, the second respondent cannot by virtue of such circular impose service tax, that it is ultra vires Article 265 of the Constitution of India, since it seeks to impose service tax through a circular which is not permissible in law and therefore, it affect Articles 19(1)(g) and 14 of the Constitution of India.
