CADASHBOARD – SEE A DASHBOARD FOR YOUR BUSINESS
Issue #114
COMMUNICATION
COMPLIANCE
COLLABRATION
CA Courses may get degree, Post-graduation Status.
The unioin HRD Ministry is in the process of making CA Inter equivalent to B.Com & CA Final to M.Com.This was informed by Institute of Chartered Accountant (ICAI)national President Mr. M Devraja Reddy. Several CA’s are qualifying here are not able to pursue a PhD Course and face several other obstacles in the Middle East Countries & US because their qualification is equivalent to graduation & post graduation. Countries like Pakistan has already made it equivalent to avail the onshore opportunities.
GST Rate should not be more than 18% - ICSI
The institute of Company Secretaries of India (ICSI) said the GSt rate should be not more than 18% else it will cause rise in inflation in the country. The ideal rate is 18%, confirms the ICSI President Miss Mamta Binani. ICSI Further said, once GST rolled out it will throw lot of opportunites for CS as they will be elligible to appear before GST authorities.
RBI income up but expenditure rises more sharply.
RBI said expenditure increased 12% to Rs 14,990 crore from Rs 13,356 crore “primarily due to provisions made for reimbursing service tax on agency commission paid to agency banks.”
- RBI forecasts 7.6% GDP growth for this fiscal.
- Income Tax Dept. to name and shame the chronic carorpati defaulters.
- 50% of the States expected to approve GST staring by September-16.
- RBI Permitts banks to hire Ex-officials for Internal Audit.
- Provide / update PAN details to avoid blocking of e-filing account by Income Tax department.
- Online updatation of member’s PAN details with ICAI.
- Customers will have zero liability in case of Online Fraud.-confirms RBI.
- BMC to tie up with ICAI to clear irregularities in the accounts.
- SEBI lauched e-payment mode for penalties.
International Section
Tesla plans to raise funds to tackle cash crunch.
Tesla Motors plans to raise additional money this year to help fund development and production of its new Model 3 sedan and build out a massive battery factory, the company said on Wednesday. The electric carmaker plans to raise money through an equity or debt offering, it said in a filing with the US Securities and Exchange Commission. Some of that money could also support Tesla's planned acquisition of its money-losing sister company, Solar City Corp.
Federal Reserve may stay cool on September.
Even if US companies kept up their rapid pace of hiring in August, there is still enough resistance among policymakers at the Federal Reserve to delay an interest-rate hike at the bank's September meeting. At that rate, 2016 would be on pace for more than 2 million new jobs.
By far, the GST amendment will be the biggest step the country has taken in ensuring economic integration. While the draft law comes with a promise of economic growth, it poses several critical pitfalls that can adversely affect businesses in the country.
GST: Great or Gruesome
The trust deficit between the Citizens of India and the Government of India has plummeted to new depths when one reads the Draft GST Law (in case you have not read the draft laws, please click here to read it). In one fell swoop, a swathe of businesses is staring at their death knell – as instead of being the promising vehicle for growth, GST has the potential to destabilize all that is good. On the bright side, this is still a draft law – and corrections can be applied, so that GST indeed becomes the Greatest Simplified Tax regime, and the biggest economic event of Independent India. It has all the ingredients to become so. Why then, am I sounding the danger bells?
The most critical cause of failure of GST will be in the transference of responsibility and liability of tax remittance to the customers of a supplier (Section 16(11) (c)). Basically, the law postulates that if a particular supplier has failed to comply with the law correctly – by furnishing the correct returns
(Section 27(3)) and/or making the correct payment (Section 27(2)) – then its’ customers cannot avail the input credit, and if given, it will be reversed.
The origin of this provision lies in the history of tax avoidance through false representations by a small section of businesses[i] and the fact that it was not feasible for the Government to systematically contain this problem. With the framing of this law, the Government hopes that the market will self-weed out the bad eggs – which is not wrong in theory. What is wrong is not understanding the cascading consequences of doing this in practice – and the mayhem it will create. While the effort for driving compliance will reduce, the consequential effect of businesses shutting down, and therefore collections going down, have not been treated seriously enough.
What exactly is the problem?
Let us understand this by visualizing a scenario.
Assume Business A operates on a retained margin in the range of 8-9% [ii].Because it is (say) an SME, it buys without access to good credit terms. So, it has purchased goods worth 50,000, and with GST of 20%, it has paid Rs. 60,000 for the invoice. It now sells this at Rs. 55,000, with an applicable GST of 11,000 – so raises an invoice of Rs. 66,000 on Business B.
Business B is a distributor, operating on a margin of (say) 2% [iii]
Now, Business B is concerned that the input credit of Rs. 11,000 may or may not available to it, in case Business A is negligent in its compliance.
To read more visit: https://www.cadashboard.com/blog
Judgements/Tribunals
Content right to :eJurix
Council of The Institute of Chartered Accountants of India Vs. Gurvinder Singh(HC-Delhi)(16 August, 2016)
Held: : The penalty proposed is removal of respondents name from the Register of Members for a period of six months. - In the decision reported as Council of Institute of Chartered Accountants & Anr. vs. B.Mukhreja, a Chartered Accountant who had been appointed as a liquidator was held liable for professional misconduct on the reasoning that Regulation 78 provided for a Chartered Accountant to act as a liquidator and thus while acting as a liquidator Sh.B.Mukhreja would be deemed to be in practice as a Chartered Accountant. For example, a Chartered Accountant may drive rashly and negligently and in the process may kill a human being. This conduct would be an offence, but not a misconduct for the purposes of the Act. In the instant case the respondent was acting as an individual in his dealings with the complainant which were purely commercial. While selling the shares held by him the respondent was not acting as a Chartered Accountant. He was not discharging any function in relation to his practice as a Chartered Accountant.
Oracle Financial Services Software Limited Vs. Income Tax Officer, Mumbai(ITAT-Mumbai)(17 August, 2016)
Held: The assessee was held as assessee in-default u/s 201(1)/201(1A) of the Act for non-deduction/payment of TDS amount on the gross amount of expenses of under Section 194C, 194J and 194I of the Act .The said amount of on which TDS was not deducted/paid to the credit of Central Government stood disallowed u/s. 40(a) of the Act while computing income of the assessee for the assessment year 2006-07, which amount later on stood allowed as deduction while computing income of the assessee in the subsequent assessment year 2007- 08 as the assessee duly paid the TDS in the subsequent assessment year 2007-08. The assessee is liable to pay interest u/s 201(1A) of the Act till the date of actual payment of TDS by the assessee to the credit of Central Government and court do not see that how Revenue is aggrieved once outstanding TDS amount stood duly paid by the assessee to the Credit of Central Government and thus Revenue is entitled for interest on outstanding amount of TDS only till the date of actual payment of TDS by the assessee to the Credit of Central Government and not till the date of framing of the order on 31-03-2011 by the AO u/s 201(1) and 201(1A) of the Act. Appeal allowed.
The Tata Power Company Limited, 2. Mr. Arun Bapat. Vs. State of Maharashtra, 2. The Commissioner of Sales Tax, 3. Maharashtra Sales Tax Tribunal.(HC-BOM)( 2 Aug, 2016)
Held: Low Sulphur Fuel Oil and Low Sulphur Waxy Residue brought from abroad are not liable to the levy of entry tax, and the levy and assessment thereof by the Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002 is ultra vires the Constitution of India, being beyond the legislative competence of the State of Maharashtra.The affidavit that is filed in reply by the State to the writ petition contains a specific statement of fact that this Court has earlier held that Entry No.13 to the Schedule to the Maharashtra Entry Tax Act insofar as it purports to levy entry tax on furnace oil and low sulphur waxy residue oil to be unauthorized and unconstitutional. According to the respondents, the main reason for holding Entry No.13 as unauthorized was due to non-availability of set off to such importers of the raw materials who utiliized it for manufacture of final product in the local area vis-a-vis those manufacturers of final product who purchased the raw material locally, namely, within Maharashtra and that according to the Division Bench violated the mandate of Article 301. Appeals are dismissed.
Blog
Are you present in Digital World?
To say that the world is changing would be like saying that the sun rises in the morning and sets in the evening; nothing new.
To say it is changing in unimaginable ways would be like saying that the sun has risen…from the south and will set in the north! That, is certainly new, very, very new!
Something similar is happening in the world of marketing and communication. What we took for granted has either disappeared or is slowly going that way and what we couldn’t imagine has started to appear in the horizon.
Market Presence a while back was meant for the biggies in the industry. You ought to have deep pockets and could have the biggest hoardings, signs and sounds, money could buy. Despite its size, what lacked was the response of the target audience and ways and means of modifying one’s marketing campaigns. All of these
took months if not years from inception to finale.
And then came the disrupter, Digital media. Things happen here at the speed of light from inception of ideas to final delivery to gauging results to fine-tuning campaigns. Old world styled media offices with huge spaces, big desks, gargantuan staff and humongous ego got a boot – at the speed of light! A laptop which sits pretty on your table top is the only thing in the name of infrastructure. Sit anywhere on the planet, you still have access to the eye of the storm and can let loose a volley of creative arrows. No age , experience bar, simply creative minds!
What then differentiates you from the rest? Presence! And surprisingly a presence which cannot be said with any degree of confidence, to be stable. Today it may be ranked # 1 by the search engines (Soon Apps taking that place!); tomorrow it may disappear entirely from the face of the digital world! With nothing but uncertainty being the new certainty, one has to be, by force of circumstances, creative, fast and utterly responsive.
Presence (and by extension, response) in the world of digital marketing is brought about in various ways including an extremely responsive website, social media, personalized mobile phone applications such as WhatsApp, google chat etc, flyers and the likes. These by no means are the only means. The digital space is such that every day some or the other new technology comes along which guarantees eyeballs with lesser constraints than before and a far greater reach.
To read More please visit
https://www.cadashboard.com/blogs/are_you_present_in_digital_world
We are reaching out !!!
Your own CADashboard getting covered in one of the most Privileged & Renowned
Daily Newspaper -
A boy breaks on old vase at a rich uncle‘s house. The uncle gets extremely angry and yells: “Do you even know how old the vase was? It was from the 17th century!” The boy sagged in relief:
“Oh, good that it wasn’t new.”
9011050260