The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) (collectively, the Boards) have elected to formally expose their joint revenue recognition proposal for a second time because they have made significant changes to the model they proposed last year. Their decision will delay the project, possibly until September 2012, according to the staff paper presented to the Boards, but will give constituents a chance to comment on the changes.
The Reserve Bank of India (RBI) today cautioned rising interest rate and high cost of funds could hurt the profitability of the banking sector. ‘Going ahead, with hardening interest rates and the imminent increase in cost of funds, the credit growth is expected to slow down, which could adversely affect the profitability,’ the RBI said in Financial Stability Report released today.
Market regulator the Securities and Exchange Board of India (Sebi) today asked credit rating agencies (CRAs) to adopt standard symbols and definitions devised by it within four months, a move that will help investors to better understand financial health of firms. ‘It has been felt that there need to be common rating symbols and definitions for easy understanding…By investors and to achieve high standards of integrity and fairness in ratings,’ the regulator said.
The Ministry of Corporate Affairs (MCA) will probe management and auditors of 12 listed companies, including Raj Television Network and Surya Lakshmi Cotton Mills, for allegedly providing false information about the shareholding pattern. ‘MCA believes the 12 companies under scanner furnished false info regarding their share breakup to Regional Directors (RDs)’, an official said. The ministry is likely to soon ask the Regional Directors concerned to probe role of auditors of the companies and also of their top management.
The government today created an email id for public to send their ideas and inputs to tackle issues arising out of blackmoney. The email — bm-feedback@nic.in — has been created on the server of the National Informatics Centre and the public can send their responses on the subject with immediate effect, a senior Finance Ministry officer said.
Organisation for Economic Cooperation and Development (OECD) has appreciated the action taken by India in handling tax evasion and black money issues. During the two day high level Seminar held on 13th and 14th June on “Adopting Tax System and International Tax Rules to the New Global Environment : a Shared Challenge for India and the OECD” at Vigyan Bhavan in New Delhi, both OECD and India decided to enhance their cooperation in dealing with issues relating to transfer pricing and promote better tax compliance and measures to improve the prevention and regulation of cross border dispute.
A recent directive by SEBI barring conversion of Indian Depository Receipt (IDR) into primary equity shares of foreign companies has dented the India listing plans of some multinationals in the technology sector, a senior i-banker said on Tuesday. ‘There was not much of interest in IDR to start with but due to this Sebi directive, some companies in the tech and tech-related space which had plans, are now rethinking their strategies,’ chief operating officer of Kotak’s Investment Banking division S Ramesh told reporters.
Notification No.40/2011-Service Tax- DATED 14-06-2011 – Section 65(105)(zzzp) of the Finance Act, 1994 – Transport of goods by rail service – Abatement provisions – Amendment in Notification No. 9/2010-ST, dated 27-2-2010 – Exemption extended till 1-1-2012. Notification No 09/2010-Service Tax, dated the 27th February 2010 provides abatement to transport of goods by rail. This notification was effective from 01.04.2010 and similar amendments were made and in the previous round, it was made effective from 1 st July 2011. Now it is effective from 01.01.2012.
Notification No.39/2011-Service Tax Section 65(105)(zzzp) of the Finance Act, 1994 – Transport of goods by rail service – Exemption to transportation of specified commodities – Amendment in Notification No.8/2010-ST, dated 27-2-2010 – Exemption extended till 1-1-2012 – NOTIFICATION NO. 39/2011-ST., DATED 14-06-2011
Notification No. 38/2011-Service Tax – Notification No 07/2010-Service Tax, dated the 27th February 2010 Rescinds Notification No. 33/2009-S.T dated 01.09.2009 [which actually exempts transport of goods by rail and if this exemption is withdrawn, the service becomes taxable]. This notification was to be effective from 01.04.2010 and then extended to 01.07.2010, further extended to 01.01.2011, then to 01.04.2011 and then to 01.07.2011 and now further extended to 01.01.2012.
