Cheques can be written in Regional language now...

BANKS ARE INSTRUCTED TO ACCEPT CHEQUES WRITTEN IN REGIONAL LANGUAGES

NOV 26, 2009                  


Reserve Bank of India (RBI) vide its Master Circular dated July 1, 2009 has advised all Scheduled Commercial Banks (excluding Regional Rural Banks) that all cheque forms would be printed in Hindi and English. The customer may, however, write cheques in Hindi, English or in the concerned regional language.

This information was given by Minister of State for Finance, Shri Namo Narain Meena in written reply to a question raised in Rajya Sabha today.

E-mails not private any more

Mumbai -- The police can now read your e-mails without prior permission from the home department. The Parliament recently cleared an amendment to the Information Technology (IT) Act, allowing the police to intercept or decrypt online information without seeking the home department's nod.

Rising instances of cyber crime have prompted the move aimed at cutting red tape. The amendment empowers the inspector general of police to permit interception or decoding information in cyber space in an emergency. This will help speedy detection of cyber crimes like phishing or sending offensive messages and in tracking terrorists who operate using the Internet.

Advocate I.P. Bagaria said the amendment was necessary. "Every citizen has a right to privacy. However, this cannot be at the cost of the state or country," he said. The secretary in-charge of the state home department should be informed about the interception within three days of tracking.

The secretary - the final sanctioning authority - has to grant permission within seven days. Once the sanction has been obtained, it has to be placed before the Review Committee within two months. Senior advocate Amit Desai said this period should be reduced. "Otherwise there are chances of misuse of these powers."

The police had to earlier take permission from the additional chief secretary, home or, in an emergency, the joint secretary. "Liberalisation of interception is required when the world is dealing with terrorism," said senior police officer-turned-lawyer Y.P. Singh.

Cyber expert Vijay Mukhi said there should be a mechanism to check misuse.

Pre- conditions for using the designation Chartered Accountant

Pre- conditions for using the designation Chartered Accountant

Section 7 of the Chartered Accountants Act 1949 empowers only a person who has been enrolled as a member of the Institute of Chartered Accountants of India to use the designation of Chartered Accountant along with his name.



In other words, it is clarified that a person who has passed the Final Examination completed the prescribed period of Articleship and a course on General Management and Communication Skills and has enrolled himself as an Associate member of the ICAI and continues to keep the membership alive through yearly payment of prescribed fees in only entitled to use the designation of Chartered Accountant along his name and also use the desinatory letters as CA. as prefix to his name.

A person who has passed the Final Examination of the Institute and complied with other requirements or not but has enrolled himself as a member of the Institute is not entitled to use the designation of Chartered Accountant nor the designatory letters as CA. as a prefix to his name.

Non members of ICAI who are using the designation as Charted Accountant or designatory letters as CA. as a prefix to their names are advised, in their own interest to desist from using these designatory letters failing which suitable steps against them in accordance with the provisions of the Chartered Accountants Act, 1949 and Regulations framed there under will be initiated without prejudice to any other penal action under the law in force for the time being

Song from the heart of Chartered Accountant

Song by the heart of all CAs

Saari Umar Hum
Mar Mar ke jee liye
Ek pal to ab humein
Jeene Do Jeene do

Saari Umr Hum
Mar Mar ke jee liye
Ek pal to ab humein
Jeene Do Jeene do
Saari Umr Hum
Mar Mar ke jee liye
Ek pal to ab humein
Jeene Do Jeene do

Na Na NA
Na Na NA

Na Na NA
Na Na NA


Give me some Sunshine
give me some rain
Give me another chance
wana grow up once again

Give me some Sunshine
give me some rain
Give me another chance
wana grow up once again


Kandhon ko kitabon
Ke bojh ne jhukaya
Rishvat dena to khud
Papa ne sikhya
99% marks laaoge to
ghadi varna chadi

Likh likh pada
hatheli par

Alpha beta gamma ka chaala
Concentrated H2so4
Ne Poora Poora bachpan jala daala


Bachpan to gaya
Jawani bhi gayi
Ek pal To ab humein
Jeen Do jeene do
Bachpan to gaya
Jawani bhi gayi
Ek pal To ab humein
Jeen Do jeene do

Saari Umr Hum
Mar Mar ke jee liye
Ek pal to ab humein
Jeene Do Jeene do
Na Na NA
Na Na NA

Na Na NA
Na Na NA


Give me some Sunshine
give me some rain
Give me another chance
wana grow up once again

Give me some Sunshine
give me some rain
Give me another chance
wana grow up once again


Na Na NA
Na Na NA
Na Na NA

Real Estate Investment TRust

Concept of REIT
A real estate investment trust (REIT) is a company that buys, develops, manages, and/or sells real estate such as skyscrapers, shopping malls, apartment complexes, office buildings, or housing developments. Rather than investing directly in real estate, investors of REITs invest in a professionally managed portfolio of real estate. REITs trade on the major exchanges, just like stocks. REITs make money from rental income, profits from the sale of the property, and other services provided to tenants. REITs also receive special tax considerations; they do not pay taxes as long as they pay out at least 90 percent of their net income to their investors..
Basic REIT Structure



How does a company qualify as a REIT
In order for a company to qualify as a REIT, it must comply with certain provisions within the Internal Revenue Code. As required by the Tax Code, a REIT must:

• Be structured as corporation, trust, or association
• Be managed by a board of directors or trustees
• Have the shares that are fully transferable
• Be taxable as a domestic corporation
• Not be a financial institution or an insurance company
• Be jointly owned by 100 persons or more
• Pay dividends of at least 90% of the REIT's taxable income
• No more than 50% of the shares can be held by five or fewer individuals during the last half of each taxable year
• At least 75% of total assets must be invested in real estate
• Derive at least 75% of gross income from rents or mortgage interest
• No more than 20% of its assets may consist of stocks in taxable REIT subsidiaries.

Terms used in the context of REIT

1. Adjusted Funds From Operations (AFFO) - It is a computation made by analysts and investors to measure a real estate company's cash flow generated by operations. It is calculated by subtracting from Funds from Operations (FFO) both recurring expenditures that are capitalized by the REIT and then amortized, but which are necessary to maintain a REIT's properties and its revenue stream (e.g., new carpeting and drapes in apartment units, leasing expenses and tenant improvement allowances) and "straight-lining" of rents. This calculation also is called Cash Available for Distribution (CAD) or Funds Available for Distribution (FAD).
    
2. Capitalization Rate - The capitalization rate (or "cap" rate) for a property is determined by dividing the property's net operating income by its purchase price. Generally, high cap rates indicate higher returns and greater perceived risk.
    
3. Cash (or Funds) Available for Distribution - Cash (or Funds) available for distribution (CAD or FAD) is a measure of a REIT's ability to generate cash and to distribute dividends to its shareholders.
    
4. Cost of Capital - The cost to a company of raising capital in the form of equity or debt. The cost of equity capital generally is considered to include both the dividend rate as well as the expected equity growth either by higher dividends or growth in stock prices. The cost of debt capital is merely the interest expense on the debt incurred.
    
5. EBITDA - Earnings before interest, taxes, depreciation and amortization. This measure is sometimes referred to as Net Operating Income (NOI).
    
6. Equity Market Cap - The market value of all outstanding common stock of a company.
    
7. Funds From Operations (FFO) - The most commonly accepted and reported measure of REIT operating performance. Equal to a REIT's net income, excluding gains or losses from sales of property, and adding back real estate depreciation.
    
8. Leverage - The amount of debt in relation to either equity capital or total capital.
    
9. Net Asset Value (NAV) - The net "market value" of all a company's assets, including but not limited to its properties, after subtracting all its liabilities and obligations.
    
10. Positive Spread Investing (PSI) - The ability to raise funds (both equity and debt) at a cost significantly less than the initial returns that can be obtained on real estate transactions.
     
11. Securitization - Securitization is the process of financing a pool of similar but unrelated financial assets (usually loans or o

Review on APKGK

Ajab Prem Ki Corny Kahani!

Movie: Ajab Prem Ki Ghazab Kahani

Cast: Ranbir Kapoor, Katrina Kaif, Upen Patel

Director: Rajkumar Santoshi Pick any love triangle, toss it with hackneyed humour and garnish with hip-shaking music. Voila! You have a masala potboiler. Rajkumar Santoshi seems to have used the same recipe for Ajab Prem Ki Ghazab Kahani. Only, his rendition causes serious indigestion!

The script is ridiculous and its probably for the best. Our popcorn-loving audience has gotten used to funny no-brainers. No wonder movies like All the Best and Wanted max the box office, so does Ajab Prem…

The movie has been shot in the picturesque hill-station Ooty. Prem (Ranbir Kapoor) along with his quirky bunch of friends runs a certain ‘happy club’ which aims at uniting lovers. When a new girl Jenny (Katrina Kaif) moves into the small town, Prem instantly falls in love with her but can’t get himself to express it. As Prem and Jenny become friends, he tries his level best to prove his love without actually spelling it out. While he’s at it, Jenny’s foster-parents want her to get married to a wealthy Christian boy. Much against her will, they take her to Goa for the marriage.

When Prem learns about this, he rushes to rescue his lady love. A teary-eyed Jenny is relieved to see Prem, who must bail her out of the forced marriage and reunite her with her actual loverboy, Rahul! In true ‘happy club’ spirit, a heart-broken Ranbir agrees. All this, and we’ve only cruised the first half of the film. The second half introduces many new characters including Rahul (Upen Patel), his father - a politician contesting the elections, and an underworld don. Several confusing events thrown in, the maze ends with Jenny developing love for Prem and waving goodbye to Rahul. Ajab, indeed!

Katrina is meant to play eye-candy and she does it with ease. Her stammering act in the film hams. Watching Upen and Katrina struggle with Hindi together is hilarious! Clearly, Ranbir Kapoor is the saving grace of the film. His work is fresh and energetic. The little jig he does in a party scene, is super cute! Bachna Ae Haseeno may have bombed but his rocking performances in Wake Up Sid and APKGK have made him the new king of Bollywood. The supporting cast of APKGK also deserves applause. Darshan Jariwala (Prem’s dad), Smita Jaykar (Prem’s mom), Navneet Nishan (Jenny’s mom), and Govind Namdeo (Rahul’s dad) are a laugh riot!

The movie has some entertaining moments and a special appearance, I’m not going to tell  It is very funny - in parts. APKGK is for you only if you enjoy corny comedy or have a crush on Ranbir Kapoor.

Satyam case: Clean chit to PwC

Accountancy regulator Institute of Chartered Accountants of India (ICAI has withdrawn disciplinary proceeding against auditing firm PricewaterhouseCoopers, allegedly involved in the Satyam [ Get Quote ] scam.
Earlier on Wednesday, the Delhi [ Images ]-based franchise of PwC had approached the Delhi high court seeking quashing of proceedings initiated against it by the government in the aftermath of Satyam scam.
It pleaded before the court that the government proceedings were illegal as they have no connection with the Bangalore-based franchise which had audited Satyam accounts.
"There are six franchises of the international audit firm in the country and they are not related to each other in any way. We have nothing to do with the Bangalore firm which had audited Satyam accounts.
"So there doesn't arise any cause of action against us in the aftermath of the Satyam scam," senior advocate Mukul Rohatgi, appearing for the Delhi-firm, pleaded.
He submitted that the proceeding against it should be quashed immediately. Justice Sanjeev Khanna after hearing his arguments asked the government counsel to take instructions from the Centre and inform the court.


Source: Rediff Business

online registration of TIN

October 30, 2009

Dear Members,

We have been informed by National Securities Depository Ltd. (NSDL) that they have introduced two new features in TIN this week.

1.      Online registration of TAN

A facility to register TAN online is available on the TIN website (www.tin-nsdl.com). The Income Tax Department requires all deductors to register their TANs online. Authenticated access (through user ID and password) will be provided to registered deductors. Registration is free.  

An acknowledgment number will be displayed on successful registration. This acknowledgment number is to be kept securely. In future user id / password will be provided to the deductors who have successfully registered.

On login, the following will be available to the deductors-

                    i.            view of the status of all statements filed;

                  ii.           download of consolidated quarterly e-TDS / TCS statement for  preparation of correction statement; and

                iii.           other functionalities related to quarterly TDS /TCS statement.

Guidelines for TAN Registration

General

1. TAN registration should be done online at the website of the Tax Information Network www.tin-nsdl.com.
2. Fields marked with (*) are mandatory.
3. Select the values from the drop down wherever provided.
4. Register all active TANs.

Details of Deductor

1. Mention details of deductor (TAN).
2. Select appropriate deductor category from the dropdown.
3. Mention PAN of deductor. Mention “PANNOTREQD”, in case PAN is not available i.e. deductor is not required to have PAN as per the statute.
4. PAO Code and DDO Code are mandatory for deductor category “Central Government”.
5. If PAO Code is not available then mention value “PAOCDNOTAVBL”.
6. If DDO Code is not available then mention value “DDOCDNOTAVBL”.
7. For PAO Registration number, mention registration number allotted, if any, by Central Record Keeping Agency (CRA) under New Pension Scheme (NPS).
8. For DDO Registration number, mention registration number allotted, if any, by Central Record Keeping Agency (CRA) under New Pension Scheme (NPS).

Contact Details of Deductor

1. Mention demographic details of deductor (TAN) i.e. complete address and contact details.
2. Provide valid email id and telephone no. / mobile no.
3. Provide details of responsible person and designation.

Statement Details

1. Mention details of any regular e-TDS / TCS quarterly statement accepted in TIN on or after April 01, 2008.
2. Check the status of e-TDS / TCS statement at the Quarterly Statement Status available at the TIN website by entering the TAN and Provisional Receipt Number of the statement before providing statement details.
3. For entering statement details you may refer the Provisional Receipt issued at the time of acceptance of the e-TDS / TCS statement.

Generation of Acknowledgement

1. After filling up the information, click “submit”. On submission of details if system shows any errors, rectify and re-submit the form.
2. A confirmation screen with all the data filled by the user will be displayed. The same can be either confirmed or edited.
3. On confirmation, an acknowledgement number will be displayed.
4. Print the acknowledgment and preserve the same for future use.
5. For future correspondence mention the TAN registration number provided by TIN along with the TAN.
6. You can re-generate the “Acknowledgement for TAN Registration” by registering again

2.    Taxpayers can now view details of paid refund in their Annual Tax Statement    (Form  26AS)

Taxpayers who have registered to view Form 26AS online can view details of paid refund in their Form 26AS from F.Y. 2009-10 (A.Y. 2010-11) onwards. Refunds received during the selected A.Y. will be displayed in Form 26AS. For instance, refunds pertaining to A.Y. 2005-06 which are received in F.Y. 2009-10 (A.Y. 2010-11) will be displayed in Form 26AS for F.Y. 2009-10 (A.Y. 2010-11).

The following details related to refund will be displayed:

• A.Y. for which refund is paid
• Mode of payment i.e. ECS, paper (refund cheque), etc.
• Amount of refund
• Date of payment

Taxpayers can register online at the TIN website to view Form 26AS.

Section 66A not a Charging Section – Tax paid by reverse charge eligible as input credit if service is an input service

COMMISSIONER (LTU), Mumbai raised an issue with the Ministry that the list of duties/taxes mentioned under Rule 3 of the CENVAT Credit Rules, 2004 covers only section 66 of the Finance Act, 1994 and does not mention section 66A of the Finance Act, 1994. Since Section 66A refers to payment by recipient of service imported from abroad, under reverse charge mechanism, in the absence of a specific mention of this Section in Rule 3, any credit of such tax paid would be illegal.

It was further mentioned that CERA has objected to the clarification issued by the Board vide letter F.No.BI/4/2006-TRU dated 19th April, 2006 wherein it was clarified that if such imported service is used as input for providing any taxable output service, the service tax paid thereon can be taken as input credit, in the absence of a specific mention of section 66A in Rule 3.

The Ministry examined this matter and it is clarified that the provisions under section 66A state that in case service is provided from abroad and received in India such taxable service shall be treated as if the recipient had himself provided the service in India, and accordingly all the provisions of Chapter V of the Finance Act, 1994 would apply. Therefore, it is clear that section 66A is not a charging section by itself. It only creates a legal fiction to deem import of service as provision of service within India so that the provisions of Chapter V of the Finance Act, 1994 can be applied. Section 66 remains the charging section even for import of services.

In view of this, it is clear that there is no mistake or omission in the relevant provisions of the CENVAT Credit Rules, 2004 and credit of service tax paid on imported services should be allowed if they are in the nature of input services. It is further advised that the CERA objection on the subject should be replied accordingly.

Such an important clarification explaining the clear position of law by the Ministry/Board is indeed commendable. But why is it that the Ministry/Board does not give up the habit of hiding such important clarifications from the stakeholders. Is it not incumbent on the Ministry/Board to make this clarification public?

Further, does the Ministry/Board think that this issue is only confined to Mumbai and has no relevance for the service recipients in the rest of the country? While a copy of this clarification is marked to the Director General, Service Tax for informing the field formations, what about the service recipients who are at the receiving end across the country?