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Monday, August 29, 2011
New Procedure of Income Tax payment challan correction by banks (for physical challans)
New Procedure of Income Tax payment challan correction by banks (for physical challans)
Revised Procedure from 1st September 2011 to get Income Tax , TDS, Self Assessment Tax, Advance Tax, Wealth Tax and Other Direct tax Payment Challan corrected / Rectified which were paid at bank in Physical Mode and time period within which correction request can be made along with conditions , Procedures for the same and Format of the letter to bank.
Challan Correction Mechanism
Under OLTAS (On Line Tax Accounting System), the physical challans of all Direct Tax payments received from the deductors / taxpayers are digitized on daily basis by the collecting banks and the data transmitted to TIN (Tax Information Network) through link cell. At present, the banks are permitted to correct data relating to three fields only i.e. amount, major head code and name. The other errors can be corrected only by the assessing officers.
New Procedure of challan correction by banks (for physical challans):
To remedy this situation, a new Challan Correction Mechanism for physical challans has been put in place. Under this mechanism, for income tax payments made on or after 1.9.2011, the following fields can be got corrected through the concerned bank branch:
> Assessment Year
> Major Head Code
> Minor Head Code
> TAN/PAN
> Total Amount
> Nature of payment (TDS Codes)
The time window for the correction request by tax payer is as follows :
S.No
Correction required in Field name Period of Correction Request (from Challan Deposit Date)
1
TAN/PAN 7 days
2
Assessment Year 7 days
3
Amount 7 days
4
Other fields (Major head, Minor head, Nature of payment) Within 3 months
The time window for correction by the bank is 7 days from the date of receipt of correction request from the tax-payer.
Conditions:
The changes can be made by the banks, subject to following conditions:
1.Correction in Name is not permitted.
2.Any combination of correction of Minor Head and Assessment Year together is not allowed.
3.PAN/TAN correction will be allowed only when the name in the challan matches with the name as per the new PAN/TAN.
4.The change of amount will be permitted only on the condition that the amount so corrected is not different from the amount actually received by the bank and credited to Govt. Account.
5.For a single challan, correction is allowed only once. However, where 1st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields.
6.There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the requested changes fails the validation test.
Procedure:
i. The tax-payer has to submit the request form for correction (in duplicate) to the concerned bank branch.
ii. The tax-payer has to attach copy of original challan counterfoil.
iii. In case of correction desired for challans in Form 280, 282, 283, the copy of PAN card is required to be attached.
iv. In case of correction desired for payments made by a tax-payer (other than an individual), the original authorization with seal of the non-individual taxpayer is required to be attached with the request form.
v. A separate request form is to be submitted for each challan.
Procedure of challan correction by Assessing Officers (both physical and e-payment challans)
After the window period available to banks for challan correction, the assessee can make a request for correction to his or her assessing officer, who is authorized under the departmental OLTAS application to make such correction in challan data in bonafide cases, to enable credit of the taxes paid, to the concerned assessee.
__________________________________________________________
Format of application to bank for challan correction to be requested by the taxpayer
To
The Branch Manager,
—————————— (Address of Branch)
Taxpayer Details :
Taxpayer Name :
Taxpayer Address :
Taxpayer TAN/PAN :
Name of Authorized Signatory :
(in case of non-individual taxpayer)
Sub : Request for Correction in Challan No: 280/281/282/283 [Strike out which ever is not applicable]
Sir/Madam,
I request you to make corrections in the challan data as per following details : Challan Details:
BSR Code
Challan Tender Date (Cash/Cheque Deposit Date)
Challan Sl. No.
-
Sl. No.
Fields in which correction required Please Tick
Original Details
Modified Details
1. TAN/PAN (10 digit)
2. Assessment Year (YYYY)
3. Major Head code (4 digit)
4. Minor Head code (3 digit)
5. Nature of Payment (3 digit)
6. Total Amount (13 digit)
Note: Please tick against the relevant fields where changes are required.
Tax payer/Authorized Signatory
Date
Note:
1.Attach copy of original challan counterfoil.
2.In case of correction to challan 280, 282, 283 attach copy of PAN card.
3.In case of a non-individual tax payer, attach the original authorization with seal of the non-individual tax-payer.
4.The request form for correction is to be submitted in duplicate to the bank branch. 5.A separate request form is to be submitted for each challan.
Revised Procedure from 1st September 2011 to get Income Tax , TDS, Self Assessment Tax, Advance Tax, Wealth Tax and Other Direct tax Payment Challan corrected / Rectified which were paid at bank in Physical Mode and time period within which correction request can be made along with conditions , Procedures for the same and Format of the letter to bank.
Challan Correction Mechanism
Under OLTAS (On Line Tax Accounting System), the physical challans of all Direct Tax payments received from the deductors / taxpayers are digitized on daily basis by the collecting banks and the data transmitted to TIN (Tax Information Network) through link cell. At present, the banks are permitted to correct data relating to three fields only i.e. amount, major head code and name. The other errors can be corrected only by the assessing officers.
New Procedure of challan correction by banks (for physical challans):
To remedy this situation, a new Challan Correction Mechanism for physical challans has been put in place. Under this mechanism, for income tax payments made on or after 1.9.2011, the following fields can be got corrected through the concerned bank branch:
> Assessment Year
> Major Head Code
> Minor Head Code
> TAN/PAN
> Total Amount
> Nature of payment (TDS Codes)
The time window for the correction request by tax payer is as follows :
S.No
Correction required in Field name Period of Correction Request (from Challan Deposit Date)
1
TAN/PAN 7 days
2
Assessment Year 7 days
3
Amount 7 days
4
Other fields (Major head, Minor head, Nature of payment) Within 3 months
The time window for correction by the bank is 7 days from the date of receipt of correction request from the tax-payer.
Conditions:
The changes can be made by the banks, subject to following conditions:
1.Correction in Name is not permitted.
2.Any combination of correction of Minor Head and Assessment Year together is not allowed.
3.PAN/TAN correction will be allowed only when the name in the challan matches with the name as per the new PAN/TAN.
4.The change of amount will be permitted only on the condition that the amount so corrected is not different from the amount actually received by the bank and credited to Govt. Account.
5.For a single challan, correction is allowed only once. However, where 1st correction request is made only for amount, a 2nd correction request will be allowed for correction in other fields.
6.There will be no partial acceptance of change correction request, i.e. either all the requested changes will be allowed, if they pass the validation, or no change will be allowed, if any one of the requested changes fails the validation test.
Procedure:
i. The tax-payer has to submit the request form for correction (in duplicate) to the concerned bank branch.
ii. The tax-payer has to attach copy of original challan counterfoil.
iii. In case of correction desired for challans in Form 280, 282, 283, the copy of PAN card is required to be attached.
iv. In case of correction desired for payments made by a tax-payer (other than an individual), the original authorization with seal of the non-individual taxpayer is required to be attached with the request form.
v. A separate request form is to be submitted for each challan.
Procedure of challan correction by Assessing Officers (both physical and e-payment challans)
After the window period available to banks for challan correction, the assessee can make a request for correction to his or her assessing officer, who is authorized under the departmental OLTAS application to make such correction in challan data in bonafide cases, to enable credit of the taxes paid, to the concerned assessee.
__________________________________________________________
Format of application to bank for challan correction to be requested by the taxpayer
To
The Branch Manager,
—————————— (Address of Branch)
Taxpayer Details :
Taxpayer Name :
Taxpayer Address :
Taxpayer TAN/PAN :
Name of Authorized Signatory :
(in case of non-individual taxpayer)
Sub : Request for Correction in Challan No: 280/281/282/283 [Strike out which ever is not applicable]
Sir/Madam,
I request you to make corrections in the challan data as per following details : Challan Details:
BSR Code
Challan Tender Date (Cash/Cheque Deposit Date)
Challan Sl. No.
-
Sl. No.
Fields in which correction required Please Tick
Original Details
Modified Details
1. TAN/PAN (10 digit)
2. Assessment Year (YYYY)
3. Major Head code (4 digit)
4. Minor Head code (3 digit)
5. Nature of Payment (3 digit)
6. Total Amount (13 digit)
Note: Please tick against the relevant fields where changes are required.
Tax payer/Authorized Signatory
Date
Note:
1.Attach copy of original challan counterfoil.
2.In case of correction to challan 280, 282, 283 attach copy of PAN card.
3.In case of a non-individual tax payer, attach the original authorization with seal of the non-individual tax-payer.
4.The request form for correction is to be submitted in duplicate to the bank branch. 5.A separate request form is to be submitted for each challan.
CAG PERFORMANCE AUDIT ETHICS
Some of the recent criticisms in the media, on the reports of the
Comptroller and Auditor General of India (CAG) to Parliament seem to
be arising out of limited perception of the mandate, responsibilities,
and jurisdiction of the supreme audit institution of the country. The
institution of the CAG is created by the Constitution in order to
assist Parliament in ensuring parliamentary supremacy over the
Executive.
The Constitution and the CAG's Duties, Powers and Conditions of
Service Act (DPC Act) elaborate the CAG's duties, powers, and
jurisdiction with regard to the accounting and auditing functions of
the entire receipts and expenditure of the government, comprising the
union, states and all union territories of the country.
THREE FRAMEWORKS
Unlike the financial auditor or a mere book keeper, the constitutional
auditor basically deploys three distinct audit frameworks for auditing
the entire gamut of receipts and expenditure at the Central, State and
Union Territory levels.
Domain of audit of the CAG encompasses all ministries, departments,
subordinate offices, autonomous bodies, and organizations, societies
which receive substantial public funds in grants or loans,
departmental undertakings and central and state public enterprises in
the country.
The CAG has also been conducting three types of audits — Financial
Audit, Compliance Audit and Performance Audit — and meticulously uses
the benchmarked best practices prevalent in the international comity
of audit professionals to capture the totality of transactions, rather
than limiting it to verification of arithmetical accuracy and
certifying the accounts. Performance audit commences with entry
conference, and ends with exit conference with the auditee
organisation. It is primarily intended to evaluate the value for money
of the output and outcome.
The performance auditor uses all available audit techniques, tools and
methodology, including statistical sampling and computer-aided audit
tools, for evidence gathering, and data drilling and analysis.
Besides assessing the results on the basis of value for money based on
criteria of economy, efficiency and effectiveness, the performance
auditor uses equity and ethics in his auditing framework, because
ethics in management of public funds becomes indispensable for public
accountability.
Also infringement of standards of equity and ethics impinges on the
achievement of results and adversely affects the outcome.
Ethical and equity parameters make the performance auditor duty bound
to analyse the outcome of the project, modus operandi of
implementation and ethical and equity implications in outreaching the
beneficiaries intended, in compliance with the laid-down policy
framework and applicable laws, regulations and procedures.
Though the auditor is not mandated to discuss the merits and demerits
of a programme, his systematic analysis of implementation of a project
gives enormous insight to the policymakers to review and improve the
systems and procedures for better effectiveness by learning valuable
lessons from experience.
Comptroller and Auditor General of India (CAG) to Parliament seem to
be arising out of limited perception of the mandate, responsibilities,
and jurisdiction of the supreme audit institution of the country. The
institution of the CAG is created by the Constitution in order to
assist Parliament in ensuring parliamentary supremacy over the
Executive.
The Constitution and the CAG's Duties, Powers and Conditions of
Service Act (DPC Act) elaborate the CAG's duties, powers, and
jurisdiction with regard to the accounting and auditing functions of
the entire receipts and expenditure of the government, comprising the
union, states and all union territories of the country.
THREE FRAMEWORKS
Unlike the financial auditor or a mere book keeper, the constitutional
auditor basically deploys three distinct audit frameworks for auditing
the entire gamut of receipts and expenditure at the Central, State and
Union Territory levels.
Domain of audit of the CAG encompasses all ministries, departments,
subordinate offices, autonomous bodies, and organizations, societies
which receive substantial public funds in grants or loans,
departmental undertakings and central and state public enterprises in
the country.
The CAG has also been conducting three types of audits — Financial
Audit, Compliance Audit and Performance Audit — and meticulously uses
the benchmarked best practices prevalent in the international comity
of audit professionals to capture the totality of transactions, rather
than limiting it to verification of arithmetical accuracy and
certifying the accounts. Performance audit commences with entry
conference, and ends with exit conference with the auditee
organisation. It is primarily intended to evaluate the value for money
of the output and outcome.
The performance auditor uses all available audit techniques, tools and
methodology, including statistical sampling and computer-aided audit
tools, for evidence gathering, and data drilling and analysis.
Besides assessing the results on the basis of value for money based on
criteria of economy, efficiency and effectiveness, the performance
auditor uses equity and ethics in his auditing framework, because
ethics in management of public funds becomes indispensable for public
accountability.
Also infringement of standards of equity and ethics impinges on the
achievement of results and adversely affects the outcome.
Ethical and equity parameters make the performance auditor duty bound
to analyse the outcome of the project, modus operandi of
implementation and ethical and equity implications in outreaching the
beneficiaries intended, in compliance with the laid-down policy
framework and applicable laws, regulations and procedures.
Though the auditor is not mandated to discuss the merits and demerits
of a programme, his systematic analysis of implementation of a project
gives enormous insight to the policymakers to review and improve the
systems and procedures for better effectiveness by learning valuable
lessons from experience.
CA ETHICS-WHISTLEBLOWERS-ICAI
Chartered accountants can become whistleblowers? ICAI council is
divided over code of ethics
MUMBAI: Chartered accountants, who are often blamed for helping
clients sidestep the law and masking the truth behind numbers, will
have a new code of ethics. After a marathon council meeting last week,
the statutory body that makes the rules for the profession decided to
overhaul the present code.
Amid spiralling incidents of corruption, allegations against senior
professionals and a clamour for a strong anti-corruption law, the
council debated whether CAs can become whistleblowers even as they
play their fiduciary role in Corporate India.
Council members of the Institute of Chartered Accountants of India
(ICAI) are sharply divided on the subject because as auditors they are
bound by confidentiality pacts they enter into with clients.
A month ago the institute asked its members to adopt a system of 'know
your clients', which would help audit professionals distance
themselves from assignments that could question their credibility and
drag them into litigations. Among other things, the move was also a
fallout of the 2G probe that is keeping some of the senior
professionals behind bars.
But a rewriting of the code of ethics will have to address several
issues. "We may borrow some of the global best practices laid down by
the International Federation of Accountants, and consider other
aspects including the ones related to regulatory provisions and
economic offences," said G Ramaswamy, president, ICAI.
At present, an auditor uses the audit report, attached to a firm's
annual report, to point out anomalies and possible irregularities.
Only auditors of banks and institutions have been told by the RBI to
alert the regulator about frauds and violations. Besides reservations
that several auditors have in assuming the role of whistleblowers,
there is no provision for them to report irregularities directly to
the government.
"But the problem is in enforcement. Most auditors are discharging
their duties, but rarely is action taken against a company based on an
auditor's report or notes to the account," said S Santhanakrishnan, a
senior CA.
Under the circumstances, it is unclear whether auditors would be
comfortable reporting irregularities they spot in the course of an
audit directly to the government authorities concerned or law
enforcement agencies.
There are many issues under discussion and amending the code may take
4-5 months, said SB Zaware, a council member. The suggestions of
members will be considered, he said. The institute may consider
formulating guidelines to bring about the practice of rotation of
auditors if there are delays in amending the law.
It has also set up an internal committee to look into issues such as
black money and suggest ways to curb the generation of undisclosed
income. But there are grey areas like financial structuring that
corporates, advised by CAs and lawyers, use to jump regulatory
hurdles. While investigating the 2G scam, government agencies have
questioned some of these structures to look for criminal intent.
Sections in the profession think there is often a thin line between
structures that are above board and the ones that are aimed at
overcoming barriers in foreign direct investment rules and foreign
exchange laws. "For argument's sake, even if the institute discourages
CAs from giving opinion on certain structures it may think are dicey,
there are law firms and investment banks ready to offer their
services," said Anup Shah of CA firm Pravin P Shah & Co. Get a
Quote
Chartered accountants, who are often blamed for helping clients
sidestep the law and masking the truth behind numbers, will have a new
code of ethics.
divided over code of ethics
MUMBAI: Chartered accountants, who are often blamed for helping
clients sidestep the law and masking the truth behind numbers, will
have a new code of ethics. After a marathon council meeting last week,
the statutory body that makes the rules for the profession decided to
overhaul the present code.
Amid spiralling incidents of corruption, allegations against senior
professionals and a clamour for a strong anti-corruption law, the
council debated whether CAs can become whistleblowers even as they
play their fiduciary role in Corporate India.
Council members of the Institute of Chartered Accountants of India
(ICAI) are sharply divided on the subject because as auditors they are
bound by confidentiality pacts they enter into with clients.
A month ago the institute asked its members to adopt a system of 'know
your clients', which would help audit professionals distance
themselves from assignments that could question their credibility and
drag them into litigations. Among other things, the move was also a
fallout of the 2G probe that is keeping some of the senior
professionals behind bars.
But a rewriting of the code of ethics will have to address several
issues. "We may borrow some of the global best practices laid down by
the International Federation of Accountants, and consider other
aspects including the ones related to regulatory provisions and
economic offences," said G Ramaswamy, president, ICAI.
At present, an auditor uses the audit report, attached to a firm's
annual report, to point out anomalies and possible irregularities.
Only auditors of banks and institutions have been told by the RBI to
alert the regulator about frauds and violations. Besides reservations
that several auditors have in assuming the role of whistleblowers,
there is no provision for them to report irregularities directly to
the government.
"But the problem is in enforcement. Most auditors are discharging
their duties, but rarely is action taken against a company based on an
auditor's report or notes to the account," said S Santhanakrishnan, a
senior CA.
Under the circumstances, it is unclear whether auditors would be
comfortable reporting irregularities they spot in the course of an
audit directly to the government authorities concerned or law
enforcement agencies.
There are many issues under discussion and amending the code may take
4-5 months, said SB Zaware, a council member. The suggestions of
members will be considered, he said. The institute may consider
formulating guidelines to bring about the practice of rotation of
auditors if there are delays in amending the law.
It has also set up an internal committee to look into issues such as
black money and suggest ways to curb the generation of undisclosed
income. But there are grey areas like financial structuring that
corporates, advised by CAs and lawyers, use to jump regulatory
hurdles. While investigating the 2G scam, government agencies have
questioned some of these structures to look for criminal intent.
Sections in the profession think there is often a thin line between
structures that are above board and the ones that are aimed at
overcoming barriers in foreign direct investment rules and foreign
exchange laws. "For argument's sake, even if the institute discourages
CAs from giving opinion on certain structures it may think are dicey,
there are law firms and investment banks ready to offer their
services," said Anup Shah of CA firm Pravin P Shah & Co. Get a
Quote
Chartered accountants, who are often blamed for helping clients
sidestep the law and masking the truth behind numbers, will have a new
code of ethics.
EVALUATING DIVIDENDS
Evaluating dividends
BL RESEARCH BUREAU
August 27, 2011:
It is seen as a sign of a company's financial health and prosperity.
It keeps your cash flows steady when the market tanks. Dividends are
the portion of the profit that companies share with the shareholders.
This week we highlight the ‘dividend' aspect of investing in
companies.
India Inc is not a big pay master when it comes to dividend. The
dividend yield for the Nifty basket, for instance, is only 1 per cent.
That is, for every rupee you invest in the Nifty stocks you only get
one paise back as dividends each year.
Dividend yielding companies
However, even if the market as a whole isn't very lucrative for a
dividend-seeking investor, there are quite a few companies that offer
high dividends. ONGC, TCS and Bajaj Auto are some companies that have
consistently given away high dividends. Like a PE ratio, a high
dividend yield is a valuation metric that allows you to choose cheap
stocks.
Some companies pay dividends semi-annually (called interim dividend)
and some annually.
Dividend entitlement
When a company announces a dividend after its board meeting, it sends
intimation to its shareholders. In the intimation letter sent, you
would have to keep a note of the ex-dividend and record date. An
announcement is also made to the stock exchanges. You can view this on
the exchange websites.
You will be entitled to the dividend only if you held the stock on the
record date. It is the date by which you should be in the company's
records to be eligible to receive the dividend. If you sell the stock
before the ex-dividend date, you will lose the dividend.
Dividend percentage and yield
But when it When it comes to evaluating dividends, do not get misled
by the dividend percentage. It is the yield you should be looking at.
Dividend yield is the company's annual dividend divided by the stock's
current market price. It gives you the return you could earn on the
stock (excluding capital appreciation in stock price) on the dividends
paid out by the company, provided it pays the same dividend next year
too.
That said, you will need to look at other aspects as well —
consistency of the payout, the payout ratio and the cash flows enjoyed
by the company to gauge if dividends will be sustained. Dividend
payout, which is the percentage of profit paid as dividends, if
consistent over a period of time, is a sign of steady growth. This
will also help filter out companies that declare bumper dividends in a
year on one-time gains (such as sale of investments).
Tax treatment
Dividend incomes are not taxed in the hands of the investor who
receives them; but at the point of distribution in the hands of the
companies. But, again, as the tax is paid only out of the profits of
the company, the per share earnings fall and indirectly impact the
investors. Companies pay 15 per cent of the distributable profits as
dividend distribution tax to the government
BL RESEARCH BUREAU
August 27, 2011:
It is seen as a sign of a company's financial health and prosperity.
It keeps your cash flows steady when the market tanks. Dividends are
the portion of the profit that companies share with the shareholders.
This week we highlight the ‘dividend' aspect of investing in
companies.
India Inc is not a big pay master when it comes to dividend. The
dividend yield for the Nifty basket, for instance, is only 1 per cent.
That is, for every rupee you invest in the Nifty stocks you only get
one paise back as dividends each year.
Dividend yielding companies
However, even if the market as a whole isn't very lucrative for a
dividend-seeking investor, there are quite a few companies that offer
high dividends. ONGC, TCS and Bajaj Auto are some companies that have
consistently given away high dividends. Like a PE ratio, a high
dividend yield is a valuation metric that allows you to choose cheap
stocks.
Some companies pay dividends semi-annually (called interim dividend)
and some annually.
Dividend entitlement
When a company announces a dividend after its board meeting, it sends
intimation to its shareholders. In the intimation letter sent, you
would have to keep a note of the ex-dividend and record date. An
announcement is also made to the stock exchanges. You can view this on
the exchange websites.
You will be entitled to the dividend only if you held the stock on the
record date. It is the date by which you should be in the company's
records to be eligible to receive the dividend. If you sell the stock
before the ex-dividend date, you will lose the dividend.
Dividend percentage and yield
But when it When it comes to evaluating dividends, do not get misled
by the dividend percentage. It is the yield you should be looking at.
Dividend yield is the company's annual dividend divided by the stock's
current market price. It gives you the return you could earn on the
stock (excluding capital appreciation in stock price) on the dividends
paid out by the company, provided it pays the same dividend next year
too.
That said, you will need to look at other aspects as well —
consistency of the payout, the payout ratio and the cash flows enjoyed
by the company to gauge if dividends will be sustained. Dividend
payout, which is the percentage of profit paid as dividends, if
consistent over a period of time, is a sign of steady growth. This
will also help filter out companies that declare bumper dividends in a
year on one-time gains (such as sale of investments).
Tax treatment
Dividend incomes are not taxed in the hands of the investor who
receives them; but at the point of distribution in the hands of the
companies. But, again, as the tax is paid only out of the profits of
the company, the per share earnings fall and indirectly impact the
investors. Companies pay 15 per cent of the distributable profits as
dividend distribution tax to the government
ESOP TAXATION
I have exercised employee share option plan of 200 shares of my
company. The grant price was Rs 630 a share. Fair market value (FMV)
date was June 21, 2011, at Rs 2,314. Exercise price per share was Rs
1,151.
Suppose, if I sell 100 shares at Rs 2,500 a share, what will be my tax
liability? I will have to pay short-term capital gains at 15 per cent,
right? But on what amount? Is it on Rs 1,34,897 (Rs 2,50,000 less Rs
1,15,103) or on Rs 18,517 (2,50,000-2,31,483)? Apart from short-term
capital gains, do I have to include the amount in my income for shares
getting shares less than the market price? Then how much should I
include? As my employer has already deducted and paid perquisite tax,
do I have to show it again in my returns? — K.S. Nagesh
Under the Income-Tax Act, there are two stages of taxation in share
allotment under the employee equity incentive plans. When the shares
are allotted by the employer to employee, it is taxed as perquisite.
When the shares are sold by the employee, it is taxed as capital
gains.
In your case, the employer should have computed the difference between
the FMV of the shares on the date of exercise and the exercise price
paid by you and taxed the same as perquisite on the date of allotment
of shares. The income and the taxes paid will reflect in the Form 16
and you should report it as part of salary in your personal tax
return.
When you sell the shares, you would compute the capital gains as
difference between the sale proceeds and FMV of the shares considered
by the employer while computing the perquisite value including any
expenditure incurred wholly in connection with the sale.
Taxation of capital gains from sale of equity shares depends on the
period of holding from date of allotment to date of sale. If the said
shares are sold after holding for more than 12 months from the date of
allotment, the capital gains are termed as long-term capital gain
(LTCG).
If Securities Transaction Tax is paid on such LTCGs, you can get full
exemption. In case STT is not paid, LTCG would be taxable at 20 per
cent (with benefit of indexation) or 10 per cent (without benefit of
indexation).
Where the holding is not more than 12 months, the capital gains are
short-term capital gains (STCG) and where STT is paid at the time of
sale, tax will be applicable at 15 per cent. If STT is not paid,
applicable maximum marginal tax rate would apply. Additional education
cess would apply on these rates.
Assuming FMV of Rs 2,314 has been considered by the employer for
perquisite taxation, capital gains should be Rs 18,600 (i.e. Rs
250,000 less 231,400).
--
CA Ramachandran Mahadevan,M.Com.,F.C.A.,
I-708,Mantri Tranquil,Subramanyapura Post,
Bangalore-560061
Karnataka,India.
+91 80 42011024
company. The grant price was Rs 630 a share. Fair market value (FMV)
date was June 21, 2011, at Rs 2,314. Exercise price per share was Rs
1,151.
Suppose, if I sell 100 shares at Rs 2,500 a share, what will be my tax
liability? I will have to pay short-term capital gains at 15 per cent,
right? But on what amount? Is it on Rs 1,34,897 (Rs 2,50,000 less Rs
1,15,103) or on Rs 18,517 (2,50,000-2,31,483)? Apart from short-term
capital gains, do I have to include the amount in my income for shares
getting shares less than the market price? Then how much should I
include? As my employer has already deducted and paid perquisite tax,
do I have to show it again in my returns? — K.S. Nagesh
Under the Income-Tax Act, there are two stages of taxation in share
allotment under the employee equity incentive plans. When the shares
are allotted by the employer to employee, it is taxed as perquisite.
When the shares are sold by the employee, it is taxed as capital
gains.
In your case, the employer should have computed the difference between
the FMV of the shares on the date of exercise and the exercise price
paid by you and taxed the same as perquisite on the date of allotment
of shares. The income and the taxes paid will reflect in the Form 16
and you should report it as part of salary in your personal tax
return.
When you sell the shares, you would compute the capital gains as
difference between the sale proceeds and FMV of the shares considered
by the employer while computing the perquisite value including any
expenditure incurred wholly in connection with the sale.
Taxation of capital gains from sale of equity shares depends on the
period of holding from date of allotment to date of sale. If the said
shares are sold after holding for more than 12 months from the date of
allotment, the capital gains are termed as long-term capital gain
(LTCG).
If Securities Transaction Tax is paid on such LTCGs, you can get full
exemption. In case STT is not paid, LTCG would be taxable at 20 per
cent (with benefit of indexation) or 10 per cent (without benefit of
indexation).
Where the holding is not more than 12 months, the capital gains are
short-term capital gains (STCG) and where STT is paid at the time of
sale, tax will be applicable at 15 per cent. If STT is not paid,
applicable maximum marginal tax rate would apply. Additional education
cess would apply on these rates.
Assuming FMV of Rs 2,314 has been considered by the employer for
perquisite taxation, capital gains should be Rs 18,600 (i.e. Rs
250,000 less 231,400).
--
CA Ramachandran Mahadevan,M.Com.,F.C.A.,
I-708,Mantri Tranquil,Subramanyapura Post,
Bangalore-560061
Karnataka,India.
+91 80 42011024
Sunday, August 28, 2011
VAT Assignment at Shimla HP
One of our client wants to get themselves registered with VAT Deptt. at Shimla (H.P.), please contact me if someone can do it for him.
Thanks,
CA. Anil Gupta
anil1200@gmail.com
0 9837067274
Thanks,
CA. Anil Gupta
anil1200@gmail.com
0 9837067274
IBA and CBDT join hands to fight black money
NEW DELHI: Tax evaders' troubles just got bigger. Indian and foreign banks operating in the country have agreed to give income-tax authorities access to their data, a move that seeks to check accumulation of black money.
"IBA (the Indian Banks' Association) has written to the Central Board of Direct Taxes saying it is ready to give access to banks' data base," a finance ministry official told ET. IBA represents more than 160 Indian and foreign banks operating in the country.
Banking sector experts said foreign lenders would take the maximum heat of the IBA move as tax officials often suspect them of helping Indians stash away black money in their overseas branches.
Modalities for accessing the data will be worked out soon, the official added.
At present, banks disclose transaction and account details only in response to specific queries from the tax authorities. Banks are legally bound to report all suspicious transactions, or dealings above 10 lakh, to the income tax department's Financial Intelligence Unit under the Prevention of Money Laundering Act.
But tax authorities have been seeking a more dynamic flow of information from the banks to effectively track black money.
"Data on bank accounts and transactions can help tax authorities corroborate intelligence received from different sources," an income tax official said.
It is widely believed that a lot of black money is actually parked in India's banks and lax implementation of know-your-client, or KYC, norms by lenders is abetting the crime.
A number of cases have been detected in the recent past where customers opened multiple accounts with banks on the basis of just one permanent account number or PAN. In one case detected in eastern UP, 600 bank accounts were opened using 10 PANs, said the income tax official.
Banks are obliged to inform the income tax department if they detect such cases. Failure to do so could attract prosecution for abetting tax evasion. "Banks have been found flouting not just KYC norms, but they have also been lax in filing suspicious transaction reports," the official said.
The income tax department recently overhauled its intelligence-gathering wing, the Central Information Branch, giving it powers to summon suspected tax evaders. The branch has the mandate to trace black money parked abroad as well as track excessive spending.
This intelligence wing, which has 17 directorates all over the country, has put in place smart software that already has extensive information on taxpayers mapped to their respective PAN cards.
Access to bank data will give tax authorities a 360 degree view of the taxpayer.
Faced with a possible revenue shortfall this year, the tax department has stepped up action on intelligence received through various sources and is carrying out intensive surveys and searches all over the country.
"IBA (the Indian Banks' Association) has written to the Central Board of Direct Taxes saying it is ready to give access to banks' data base," a finance ministry official told ET. IBA represents more than 160 Indian and foreign banks operating in the country.
Banking sector experts said foreign lenders would take the maximum heat of the IBA move as tax officials often suspect them of helping Indians stash away black money in their overseas branches.
Modalities for accessing the data will be worked out soon, the official added.
At present, banks disclose transaction and account details only in response to specific queries from the tax authorities. Banks are legally bound to report all suspicious transactions, or dealings above 10 lakh, to the income tax department's Financial Intelligence Unit under the Prevention of Money Laundering Act.
But tax authorities have been seeking a more dynamic flow of information from the banks to effectively track black money.
"Data on bank accounts and transactions can help tax authorities corroborate intelligence received from different sources," an income tax official said.
It is widely believed that a lot of black money is actually parked in India's banks and lax implementation of know-your-client, or KYC, norms by lenders is abetting the crime.
A number of cases have been detected in the recent past where customers opened multiple accounts with banks on the basis of just one permanent account number or PAN. In one case detected in eastern UP, 600 bank accounts were opened using 10 PANs, said the income tax official.
Banks are obliged to inform the income tax department if they detect such cases. Failure to do so could attract prosecution for abetting tax evasion. "Banks have been found flouting not just KYC norms, but they have also been lax in filing suspicious transaction reports," the official said.
The income tax department recently overhauled its intelligence-gathering wing, the Central Information Branch, giving it powers to summon suspected tax evaders. The branch has the mandate to trace black money parked abroad as well as track excessive spending.
This intelligence wing, which has 17 directorates all over the country, has put in place smart software that already has extensive information on taxpayers mapped to their respective PAN cards.
Access to bank data will give tax authorities a 360 degree view of the taxpayer.
Faced with a possible revenue shortfall this year, the tax department has stepped up action on intelligence received through various sources and is carrying out intensive surveys and searches all over the country.
Notification No. 43-2011 – Service Tax, dated 25-08-2011.htm
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
*****
Notification No. 43/2011 – Service Tax
New Delhi, the 25th August 2011
Bhadra 3, 1933 (Saka)
G.S.R. 642 (E).- In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the Service Tax Rules, 1994, namely :-
1. (1) These rules may be called the Service Tax (Fourth Amendment) Rules, 2011.
(2) They shall come into force on the 1st day of October, 2011.
2. In the Service Tax Rules, 1994, in rule 7, -
(a) in sub-rule (2), the proviso shall be omitted;
(b) after sub-rule (2) as so amended, the following sub-rule shall be inserted, namely:-
“(3) Every assessee shall submit the half-yearly return electronically”.
[F. No. 137/99/2011 – Service Tax]
(Deepankar Aron)
Director (Service Tax)
Note.- The principal rules were notified vide notification No. 2/1994 – Service Tax dated the 28th June 1994, published in the Gazette of India, Extraordinary, Part II, section 3, Sub-section (i), vide number G.S.R. 546(E), dated the 28th June, 1994 and were last amended by notification No. 35/2011 - Service Tax, dated the 25th April, 2011, vide number G.S.R. 343 (E), dated the 25th April, 2011.
Advocates can now practise anywhere in India
Advocates can now practise anywhere in India: Says Law Minister. This is effective from 15-06-2011.
Income from license of software not assessable as “royalty”-- Gracemac not followed/Motorola still good law
Income from license of software not assessable as “royalty”. Gracemac not followed; Motorola still good law
The assessee, an Israeli company, entered into an agreement with Reliance Infocomm for supply and licence of software for RIL’s wireless network in India. The assessee received Rs. 3 crores which it claimed to be “business profits” and not taxable for want of a permanent establishment (PE) in India. The AO took the view that the said sum was assessable as “royalty”. This was reversed by the CIT (A) following Motorola Inc 96 TTJ 1 (Del) (SB). In appeal before the Tribunal, the department argued that in view of Gracemac Corp 42 SOT 550 (Del), the use of software was assessable as “royalty”. HELD dismissing the appeal:
For further details refer to:
Case Law:Payment made by the resident company to KPMG, Brazil for assisting in the acquisition of sugar mills in Brazil is not “Fees for Technical Services
The payment made by the resident company to KPMG, Brazil for assisting in the acquisition of sugar mills in Brazil is not “Fees for Technical Services”. Hence, the assessee is not liable to deduct TDS, as held by MumTrib in ITO(IT)-TDS-3 v Bajaj Hindustan Ltd — In favour of: The assessee.
ITO(IT)-TDS-3 v Bajaj Hindustan Ltd. ITAT BENCH “L”, MUMBAI ITA No. 63/MUM/09(2007-08)
2. The assessee is a company. It is engaged in the business of manufacturing of sugar. According to the assesse, it engaged the services of M/s. KPMG Corporate Finance Ltd., Brazil (KPMG)(Non-Resident), to advice and assist the assessee in acquisition of Sugar Mills/Distilleries in Brazil. In connection with the services rendered by KPMG for the said purpose, the assessee had made payment to KPMG. The question before the ITO (International Taxation),TDS-3, Mumbai (AO), was as to whether the Assessee was bound to deduct tax at source on the payment made to KPMG in terms of Sec.195 of the Income Tax Act, 1961 (the Act). That would again depend on the question whether the payment by the Assessee to KPMG would be taxable in the hands of KPMG in India.
For further details refer to:
JV execute works awarded by State Govt, "a" not entitled for ded 80IA(4)
Whether, when two partners of JV execute works awarded by State Govt, assessee is even then not entitled to avail benefits of Sec 80IA(4) as contract was awarded to JV, an independent legal entity - NO, assessee is eligible: ITAT
THE question before the Bench is - Whether when, for all practical purposes, the two partners of a JV execute the infrastructural work awarded by the State Government, even then the assessee, one of the partners, is not entitled to avail the benefits of Sec 80IA(4) as the contract was awarded to the JV, an independent legal entity. And the verdict goes in favour of assessee.
Facts of the case
Assessee, a company, formed a joint venture named "Navayuga Transtoy (JV)" which bid for the contract. The Irrigation Department of Andhra Pradesh awarded the contract to the JV. As per the terms of the JV, the assessee was to execute 40% of the work in Navayuga, the other constituent partner was to execute 60% of the works. Assessee was to execute work worth Rs. 265.80 crores, out of which works valued at Rs.18.12 crores were executed during the A.Y. 2006-07. Both the partners raised bills on JV for quantity of work as certified by technical consultant appointed by the State Government. In turn, the JV raised a consolidated bill on the Irrigation Department without making any additions. Payments were made to the JV, which shared the payment in accordance with the bills raised by each partner. JV filed its return without claiming any deduction u/s 80IA(4).
Assessee also formed a consortium along with one M/s `CT' Moscow, with an understanding that the assessee would execute 100% of the works which were awarded to the consortium. Assessee executed works valued worth Rs.31.09 crores and claimed deduction u/s 80IA(4) on the profits derived out of the aforesaid works. AO disallowed the claim stating that the work was not awarded to the assessee.
In appeal before CIT (A), the assessee contended that the JV or the consortium was formed only with an object to obtain a contract from the Government but in fact the work was executed by the constituents of the JV i.e. the assessee and the other constituent. Deduction was to be allowed to those enterprises, which were engaged in the business of developing, maintaining and operating any infrastructure facility. Therefore, the assessee was entitled for deductions on profit earned from the aforesaid activities. However, CIT (A) confirmed the dis-allowance made by the AO.
Before ITAT, the assessee contended that the JV or the consortium had not offered any income/profit out of the work contract awarded to it and also did not claim any deduction u/s 80IA of the Act. Deduction u/s 80IA was to be allowed to those enterprises which were carrying on the business of developing, maintaining and operating any infrastructure facility. It was agreed at the time of formation of JV that whatever work was awarded to it, it would be executed by its constituents and they would be solely responsible for the responsibilities and liabilities of the execution of the work.
Revenue contended that the work contract was awarded to the joint venture and not to the assessees. The Bills were raised by the joint venture and payments were also made to the joint venture by the Government bodies. Therefore, in all respects, the work contract was executed by the joint venture and not by the assessees. Joint venture was an independent identity and was assessable to tax. It was totally irrelevant whether joint venture claimed any deduction u/s 80IA or not. Non-claim of deduction u/s 80IA by the joint venture would not make the assessee entitled to claim deduction u/s 80IA for the work executed by him.
After hearing both the parties, the ITAT held that,
++ undisputedly the joint venture or the consortium was formed only to obtain the contract from the Government bodies. At the time of execution of the joint venture or the consortium, it has been made clear that work/project awarded to the joint venture would be executed by the joint venturers or the constituents. As per mutually agreed terms and conditions between them, it was also agreed that each party shall be responsible for the provisions of without limitation on resources required for the purpose of fulfillment of the scope and also solely responsible for the performance of its scope of work and shall bear all technical, commercial and facing risk involved in performing its scope of work. It was also agreed that none of the party shall assign its rights and obligations to any other party without written consent of other party. It is evidently clear that the joint venture and the consortium was formed only with an object to bid contract. Once the project or contract is awarded to the joint venture or the consortium, it is to be executed by its constituents or the joint ventures in a ratio agreed upon by the parties. The assessee was entitled to execute the 40% of total work awarded to the joint venture and in case of a consortium it was agreed that the entire work is to be executed by the assessee itself. Therefore for all practical purposes, it was the assessee who executed the work contract or the project awarded to the joint venture. No doubt the joint venture is an independent identity and has filed its return of income and was also assessed to tax but it did not offer any profit or income earned on this project/works awarded to it nor did he claim any exemption/deduction u/s 80IA(4) of the Act. These facts clearly indicates that the joint venture was only a de-jure contractor but in fact the assessee was a de-facto contractor;
++ the benefit of exemption/deduction is to be allowed to any enterprise carrying on business of developing or operating and maintaining or developing, operating, maintaining any infrastructure facility subject to fulfillment of certain conditions. One of the condition is that the enterprise should be owned by a company registered in India or by a consortium of such companies or any other body established or constituted under any center or any state Act. The other condition is that it has entered into an agreement with the Central Government or a State Government or local authorities or any other statutory body for developing, operating and maintaining or developing, operating & maintaining a new infrastructure facility;
++ there is no dispute with regard to the fulfillment of other requisite conditions. The dispute was only raised that the contract was awarded only to the joint venture and not to the assessee and therefore assessee is not entitled for deduction. The benefit of deductions is to be given to an enterprise which carry on the aforesaid classified business. The legislature have also used the word consortium of such companies, meaning thereby the legislature was aware about the object of formation of consortium and joint ventures. Generally the joint ventures or consortiums are formed to obtain a contract from the Government body for its execution by its constituents. If the constituents do not want to execute the work, there was no need to form a consortium. Therefore, mere formation of consortium for obtaining a contract should not debar the enterprises who in fact carried on the aforesaid classified business from claiming the deduction or exemption u/s 80IA(4). The joint venture or the consortium was only a paper entity and has not executed any contract by itself. They have also not offered any income out of the work executed by its constituents, nor did they claim any deductions u/s 80IA(4). Therefore, in all practical purposes, the contract was awarded to the constituents of the joint venturers through joint venture and the work was executed by them. As per provisions of section 80IA(4), the benefit of deduction under this section is to be given only to the enterprise which carried on the classified business. Therefore, in the light of this legal proposition, the assessee is entitled for the deductions u/s 80IA(4) on the profit earned from the execution of the work awarded to JV and consortium.
THE question before the Bench is - Whether when, for all practical purposes, the two partners of a JV execute the infrastructural work awarded by the State Government, even then the assessee, one of the partners, is not entitled to avail the benefits of Sec 80IA(4) as the contract was awarded to the JV, an independent legal entity. And the verdict goes in favour of assessee.
Facts of the case
Assessee, a company, formed a joint venture named "Navayuga Transtoy (JV)" which bid for the contract. The Irrigation Department of Andhra Pradesh awarded the contract to the JV. As per the terms of the JV, the assessee was to execute 40% of the work in Navayuga, the other constituent partner was to execute 60% of the works. Assessee was to execute work worth Rs. 265.80 crores, out of which works valued at Rs.18.12 crores were executed during the A.Y. 2006-07. Both the partners raised bills on JV for quantity of work as certified by technical consultant appointed by the State Government. In turn, the JV raised a consolidated bill on the Irrigation Department without making any additions. Payments were made to the JV, which shared the payment in accordance with the bills raised by each partner. JV filed its return without claiming any deduction u/s 80IA(4).
Assessee also formed a consortium along with one M/s `CT' Moscow, with an understanding that the assessee would execute 100% of the works which were awarded to the consortium. Assessee executed works valued worth Rs.31.09 crores and claimed deduction u/s 80IA(4) on the profits derived out of the aforesaid works. AO disallowed the claim stating that the work was not awarded to the assessee.
In appeal before CIT (A), the assessee contended that the JV or the consortium was formed only with an object to obtain a contract from the Government but in fact the work was executed by the constituents of the JV i.e. the assessee and the other constituent. Deduction was to be allowed to those enterprises, which were engaged in the business of developing, maintaining and operating any infrastructure facility. Therefore, the assessee was entitled for deductions on profit earned from the aforesaid activities. However, CIT (A) confirmed the dis-allowance made by the AO.
Before ITAT, the assessee contended that the JV or the consortium had not offered any income/profit out of the work contract awarded to it and also did not claim any deduction u/s 80IA of the Act. Deduction u/s 80IA was to be allowed to those enterprises which were carrying on the business of developing, maintaining and operating any infrastructure facility. It was agreed at the time of formation of JV that whatever work was awarded to it, it would be executed by its constituents and they would be solely responsible for the responsibilities and liabilities of the execution of the work.
Revenue contended that the work contract was awarded to the joint venture and not to the assessees. The Bills were raised by the joint venture and payments were also made to the joint venture by the Government bodies. Therefore, in all respects, the work contract was executed by the joint venture and not by the assessees. Joint venture was an independent identity and was assessable to tax. It was totally irrelevant whether joint venture claimed any deduction u/s 80IA or not. Non-claim of deduction u/s 80IA by the joint venture would not make the assessee entitled to claim deduction u/s 80IA for the work executed by him.
After hearing both the parties, the ITAT held that,
++ undisputedly the joint venture or the consortium was formed only to obtain the contract from the Government bodies. At the time of execution of the joint venture or the consortium, it has been made clear that work/project awarded to the joint venture would be executed by the joint venturers or the constituents. As per mutually agreed terms and conditions between them, it was also agreed that each party shall be responsible for the provisions of without limitation on resources required for the purpose of fulfillment of the scope and also solely responsible for the performance of its scope of work and shall bear all technical, commercial and facing risk involved in performing its scope of work. It was also agreed that none of the party shall assign its rights and obligations to any other party without written consent of other party. It is evidently clear that the joint venture and the consortium was formed only with an object to bid contract. Once the project or contract is awarded to the joint venture or the consortium, it is to be executed by its constituents or the joint ventures in a ratio agreed upon by the parties. The assessee was entitled to execute the 40% of total work awarded to the joint venture and in case of a consortium it was agreed that the entire work is to be executed by the assessee itself. Therefore for all practical purposes, it was the assessee who executed the work contract or the project awarded to the joint venture. No doubt the joint venture is an independent identity and has filed its return of income and was also assessed to tax but it did not offer any profit or income earned on this project/works awarded to it nor did he claim any exemption/deduction u/s 80IA(4) of the Act. These facts clearly indicates that the joint venture was only a de-jure contractor but in fact the assessee was a de-facto contractor;
++ the benefit of exemption/deduction is to be allowed to any enterprise carrying on business of developing or operating and maintaining or developing, operating, maintaining any infrastructure facility subject to fulfillment of certain conditions. One of the condition is that the enterprise should be owned by a company registered in India or by a consortium of such companies or any other body established or constituted under any center or any state Act. The other condition is that it has entered into an agreement with the Central Government or a State Government or local authorities or any other statutory body for developing, operating and maintaining or developing, operating & maintaining a new infrastructure facility;
++ there is no dispute with regard to the fulfillment of other requisite conditions. The dispute was only raised that the contract was awarded only to the joint venture and not to the assessee and therefore assessee is not entitled for deduction. The benefit of deductions is to be given to an enterprise which carry on the aforesaid classified business. The legislature have also used the word consortium of such companies, meaning thereby the legislature was aware about the object of formation of consortium and joint ventures. Generally the joint ventures or consortiums are formed to obtain a contract from the Government body for its execution by its constituents. If the constituents do not want to execute the work, there was no need to form a consortium. Therefore, mere formation of consortium for obtaining a contract should not debar the enterprises who in fact carried on the aforesaid classified business from claiming the deduction or exemption u/s 80IA(4). The joint venture or the consortium was only a paper entity and has not executed any contract by itself. They have also not offered any income out of the work executed by its constituents, nor did they claim any deductions u/s 80IA(4). Therefore, in all practical purposes, the contract was awarded to the constituents of the joint venturers through joint venture and the work was executed by them. As per provisions of section 80IA(4), the benefit of deduction under this section is to be given only to the enterprise which carried on the classified business. Therefore, in the light of this legal proposition, the assessee is entitled for the deductions u/s 80IA(4) on the profit earned from the execution of the work awarded to JV and consortium.
Saturday, August 27, 2011
SUBMISSION OF ONLINE APPLICATION OF MEF HAS BEEN EXTENDED
SUBMISSION OF ONLINE APPLICATION OF MEF HAS BEEN EXTENDED UPTO 2ND SEPTEMBER 2011 (5.30 pm)
ACCORDING TO INSTITUTE WEBSITE ANNOUNCEMENT
ACCORDING TO INSTITUTE WEBSITE ANNOUNCEMENT
INDIA ON THE STREETS ----Chetan Bhagat
"India on the Streets " by Chetan Bhagat
We have all had that one uncle who keeps on reminding you how India is terrible. He tells you about how every government authority takes bribes - from the RTO to the ration shop to the municipality. He will tell you how no government department does its job well - the potholed roads, abysmal conditions at government schools and poor healthcare all being examples to support your uncle's theory. It is hard to argue with him, for he is right. Things don't work. There is no justice. Power talks. Equality doesn't exist. All of this, even though uncomfortable to hear, rings somewhat true.
However, the uncle goes on to say this: "Nothing will ever change." He is convinced that our society is damaged irreparably, and India is destined to live in misery. Uncle Cynic goes on to doubt almost everyone, assumes the worst in people, and anyone who is trying to improve the country is branded as someone with a hidden agenda.
This is where i think the uncle gets it wrong, horribly wrong. For it is one thing to point out the problems, it is quite another to give up trying to fix them. Cynicism is not a counter-argument, it is an attitude. For the fact is we still have good people in the country: in society and even in government departments. It is just that they are crushed.
I don't want to give you the reasons why you must support Anna Hazare. It is almost beneath Anna's dignity that he actually has to beg or make a case for support when he is fighting for you, against an abusive, corrupt regime. Still, let me do a quick recap of the facts.
Anna did a fast in April, which became the nation's movement and spread virally. Concerned, the government agreed to make a good Lokpal Bill, shook hands with the activists and in principle agreed to Anna's version, designed to truly check corruption. Since then, the government has insulted Anna's team, thrown away their draft, and come up with its own almost pointless draft of the Lokpal Bill.
The draft the government is presenting to Parliament will not check corruption. Only 0.5%, or one in 200 government officials are under its purview. Your corrupt ration shop, RTO, passport office, panchayats or municipal authority will not be covered. State scams will not be covered - yes, the Adarsh society scam or the Jharkhand scams are all out of its purview. The prime minister is excluded as well. Ever heard of a corruption law in a democracy that only applies to a certain section of people?
The government is throwing magic dust in your eyes - and counting on India's illiterate and ignorant to not know the difference. However, you reading this are educated. You know when wrong is being committed. You know that while you have lived your life with corruption, you do not want your children to do the same. A bad Lokpal Bill may not affect you today - but tomorrow it will hit you when your child does not get a college seat, when your hospital gives shoddy treatment, when your government work doesn't get done. We live in a poor country - poor not because we don't have what it takes to be rich, but because our leaders have let us down. We have given them too much power, and they consider our vote as a mandate to steal and be incompetent. They hate accountability. However, without accountability, our progress will stall. There are countries where the average income per person is 50 times more than in India. Don't we deserve the same?
Thus, whatever your personal view on Anna, it is not him but his cause that needs support. The government can crush a few activists. However, it cannot crush India on the streets. A peaceful, firm, decisive protest is every Indian's birthright, and must be exercised in times of need. Come Monday, and we Indians have a job to do. We have to save our country's future.
A word for the government too. Just what exactly are you thinking when you are trying to shove an impotent law down people's throats? And what makes you feel that threatening, crushing or insulting Anna will take away people's need to rid India of corruption? Anna did not create an anti-corruption sentiment, he merely tapped into it. Crushing Anna will not take away that sentiment. It will just make it fester more. Right now, the movement is still controlled. By going back on your word, displaying arrogance and not listening to the people, you are risking the country's descent into chaos. Be careful. Accountability is much easier to deal with than anarchy. Fix the Lokpal Bill now, please.
Finally, for the people of India, it is time to prove Uncle Cynic wrong. There is a bigger truth than his 'nothing ever changes in India'. That truth comes from the Gita, which states "Nothing is permanent". The Gita also says, "When the pot of sin overflows, something happens to restore order." Now, it is up to you to determine if the pot of sin has overflowed. It is for you to say what it means for Indians to act out their dharma. And you, and only you, will decide if it is time to come on the streets.
(The writer is a best-selling novelist)
However, the uncle goes on to say this: "Nothing will ever change." He is convinced that our society is damaged irreparably, and India is destined to live in misery. Uncle Cynic goes on to doubt almost everyone, assumes the worst in people, and anyone who is trying to improve the country is branded as someone with a hidden agenda.
This is where i think the uncle gets it wrong, horribly wrong. For it is one thing to point out the problems, it is quite another to give up trying to fix them. Cynicism is not a counter-argument, it is an attitude. For the fact is we still have good people in the country: in society and even in government departments. It is just that they are crushed.
I don't want to give you the reasons why you must support Anna Hazare. It is almost beneath Anna's dignity that he actually has to beg or make a case for support when he is fighting for you, against an abusive, corrupt regime. Still, let me do a quick recap of the facts.
Anna did a fast in April, which became the nation's movement and spread virally. Concerned, the government agreed to make a good Lokpal Bill, shook hands with the activists and in principle agreed to Anna's version, designed to truly check corruption. Since then, the government has insulted Anna's team, thrown away their draft, and come up with its own almost pointless draft of the Lokpal Bill.
The draft the government is presenting to Parliament will not check corruption. Only 0.5%, or one in 200 government officials are under its purview. Your corrupt ration shop, RTO, passport office, panchayats or municipal authority will not be covered. State scams will not be covered - yes, the Adarsh society scam or the Jharkhand scams are all out of its purview. The prime minister is excluded as well. Ever heard of a corruption law in a democracy that only applies to a certain section of people?
The government is throwing magic dust in your eyes - and counting on India's illiterate and ignorant to not know the difference. However, you reading this are educated. You know when wrong is being committed. You know that while you have lived your life with corruption, you do not want your children to do the same. A bad Lokpal Bill may not affect you today - but tomorrow it will hit you when your child does not get a college seat, when your hospital gives shoddy treatment, when your government work doesn't get done. We live in a poor country - poor not because we don't have what it takes to be rich, but because our leaders have let us down. We have given them too much power, and they consider our vote as a mandate to steal and be incompetent. They hate accountability. However, without accountability, our progress will stall. There are countries where the average income per person is 50 times more than in India. Don't we deserve the same?
Thus, whatever your personal view on Anna, it is not him but his cause that needs support. The government can crush a few activists. However, it cannot crush India on the streets. A peaceful, firm, decisive protest is every Indian's birthright, and must be exercised in times of need. Come Monday, and we Indians have a job to do. We have to save our country's future.
A word for the government too. Just what exactly are you thinking when you are trying to shove an impotent law down people's throats? And what makes you feel that threatening, crushing or insulting Anna will take away people's need to rid India of corruption? Anna did not create an anti-corruption sentiment, he merely tapped into it. Crushing Anna will not take away that sentiment. It will just make it fester more. Right now, the movement is still controlled. By going back on your word, displaying arrogance and not listening to the people, you are risking the country's descent into chaos. Be careful. Accountability is much easier to deal with than anarchy. Fix the Lokpal Bill now, please.
Finally, for the people of India, it is time to prove Uncle Cynic wrong. There is a bigger truth than his 'nothing ever changes in India'. That truth comes from the Gita, which states "Nothing is permanent". The Gita also says, "When the pot of sin overflows, something happens to restore order." Now, it is up to you to determine if the pot of sin has overflowed. It is for you to say what it means for Indians to act out their dharma. And you, and only you, will decide if it is time to come on the streets.
(The writer is a best-selling novelist)
Friday, August 26, 2011
Career Opportnity with Tata Communications Ltd. - Assistant Manager -Finance
We are looking for an Assistant
Manager – Finance in our company , your profile looks relevant for the
same . Please find below the Job-Description for your reference :
Company Profile :
Processing of Investor Complaints in SEBI Complaints Redress System (SCORES)
Securities and Exchange Board of India
CIRCULAR
CIR/MIRSD/17/2011 August 24, 2011
To
(1) All Merchant Bankers (MBs) registered with SEBI
(2)All Registrars to an Issue and Share Transfer Agents
(RTI/STAs)
registered with SEBI
(3) All Underwriters registered with SEBI
Sir/ Madam,
Sub: Processing of Investor Complaints in SEBI Complaints Redress
System (SCORES)
Monetary Limits- Appeals-Indirect Taxes
REDUCTION
OF GOVERNMENT LITIGATION - PROVIDING MONETARY LIMITS FOR FILING APPEALS
BY DEPARTMENT BEFORE CESTAT/HIGH COURTS AND SUPREME COURT
INSTRUCTION [F.NO.390/MISC./163/2010-JC], DATED 17-8-2011
In exercise of the powers conferred by section 35R of the Central Excise Act, 1944 made applicable to Service Tax vide section
83 of the Finance Act, 1994 and section 131BA of the Customs Act, 1962
the Central Board of Excise & Customs (hereinafter referred to as
the Board) fixes the following monetary limits below which appeal shall
not be filed in the Tribunal, High Court and the Supreme Court:
: Excellent Opening with Tata Voltas (Mumbai)
This is in reference to an opportunity with well known Company Tata Voltas
Website: - http://www.voltasac.com/
Position – Audit Executive
Location – Chinchpokli, Mumbai
Minimum Experience Required: 0.6to 4 yrs
Qualification: Any graduates
Salary Range (INR per annum): As per industry standards
Job Profile:
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