Tuesday, 7 January 2014
Monday, 6 January 2014
CAG can audit private telcos, says High Court
NEW DELHI, JAN 6:
In an order which can have wide ramification for corporate India, the Delhi High Court on Monday ruled that the Comptroller and Auditor General can audit revenues of private companies if they have an impact on Government’s income.
Though the court ruling came in the context of telecom operators, experts say the CAG can use the ruling to look into the books of any company that pays tax to the Government.
Ramji Srinivasan, senior Supreme Court lawyer, said, “This is direct interference in the working and functioning of private companies. The court ruling can be extended by the CAG to invade every area of a company’s revenue that finds its way to the Government coffers.” Telecom companies said that they will challenge the order. “We will decide on the next course of action by end of this week. Prima facie, we have a strong case against the order,” said Ashok Sud, Secretary-General, Association of Unified Service Providers of India, representing the interest of CDMA operators.
Rajan Mathews of the Cellular Operators Association of India said telecom companies are already being audited by different agencies, including an independent auditor appointed by the Telecom Department. “It’s a drain on our time, cost and resources to facilitate multiple agencies doing the same job. There should be one audit which addresses all concerns,” Mathews said.
The CAG had initiated an audit after TRAI found that some telecom operators were allegedly under-reporting income in a bid to avoid paying revenue share to the Government.
The telecom companies approached the High Court seeking a stay on the CAG’s decision.
Setting aside their plea, the court said there are no doubts on CAG’s constitutional powers to look into all forms of income derived by the Government. It, however, added that in relation to accounts of telecom companies, audit has to pertain to revenues and not into aspects such as “wisdom and economy in expenditures”.
Saturday, 4 January 2014
Good News For CA Students Having Attempt In May 14
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Tentative Dates for lok sabha elections announced……
…elections to be held in 6 phases somewhere between mid april and mid may.
CA exams for may 14 may be postponed to mid june .You People may get extra 1 month to study.
CA exams for may 14 may be postponed to mid june .You People may get extra 1 month to study.
In case if you get extension you will have time to revise and if you don't get extension you will be prepared for exams.
Moreover exams may OR may not be postponed to 2nd fortnight of may as June month is reserved for CS & CWA.
Please spread this message to all who are giving exams in may, It will help them a lot.
Moreover exams may OR may not be postponed to 2nd fortnight of may as June month is reserved for CS & CWA.
Please spread this message to all who are giving exams in may, It will help them a lot.
Nokia case: Income Tax dept moves HC for clarification
A bench, headed by Justice S Ravindra Bhat, posted the plea of the IT department for January 17 before another bench which had on December 12 paved the way for the sale of Finnish mobile firm to Microsoft subject to certain conditions.
The conditions included that Nokia India will deposit a minimum of Rs 2,250 crore in an escrow account while its parent company Nokia Corporation(Corp) would be liable to pay the tax dues as applicable under the Income Tax Act upto maximum of Rs 3,500 crore.
Seeking modifications in the order, the IT department, in its fresh application, said "in the conditions imposed by the High Court ..., the situs of amount of Rs 3,500 crores and the realisation thereof is not stated/directed.
"It is requested, for the sake of clarity, to issue necessary directions for placing the aforesaid amount also in an escrow account preferably in India. The IT department also very humbly seeks directions/clarification for payment of the said amount of Rs 3,500 crore as and when the demand is raised and is due for payment."
The court had on December 12 allowed the plea of Nokia for lifting of a stay on transfer of its assets in India. The firm had said that the injunction will jeopardize the sale of its Indian arm to Microsoft under a $7.2 billion global deal.
The I-T Department, which had rejected the offer of Nokia to pay a minimum deposit of Rs 2,250 crore to it, said Nokia India and Nokia Corporation owe it Rs 21,153 crore as total tax liability (existing and anticipated), including penalty during a seven-year period from 2006-2013.
The I-T department has also sought certain directions "pertaining to the mechanism for adjustment of refunds till the tax issues reach finality."
"Petitioners have yet to furnish the undertaking and guarantee bond in terms of the Court's directions dated 12.12.2013 and the Appellant/Respondents (IT department) reserve their right and seek liberty to give their comments /response/objections, if any, as and when the guarantee bond/undertaking is made available by the Petitioners (Nokia)," it said.
On December 12, in a major relief, the court had defreezed the assets of the Finnish firm in India, specially the Chennai manufacturing plant.
Bharti Retail appoints Raj Jain as CEO
Bharti Retail had roped in Jain as its group advisor after the company split with world’s top retailer Walmart last year, but on Friday the company appointed him as the CEO.
Jain will report to Rajan Bharti Mittal, vice-chairman and managing director, Bharti Enterprises.
In fact, Jain will not be the first former Walmart India official to join Bharti Group.
Pankaj Madan, former CFO of Walmart India who was suspended in 2012 after an internal anti-corruption inquiry has been appointed as the CFO of Bharti Retail.
Madan had earlier joined Bharti Airtel’s global finance team after suspension from Walmart India.
Mittal said, “Bharti is committed to building a world-class retail venture and we are delighted to have Raj and Pankaj on board. I am confident that their rich experience and insights into the retail business will add immense value to company’s growth plans.”
In October last year, Bharti and Walmart had ended its six-year-old partnership in wholesale operations and had decided to operate independently. Since Walmart was providing back-end support to Easyday stores, run by Bharti Retail, building and strengthening back-end is going to be on top of the new CEO’s agenda.
Apart from this attaining profitability will be another challenge for the new CEO, say retail experts.
Bharti Retail runs Easyday that currently operates 212 stores in neighbourhood and compact hypermarket formats.
Friday, 3 January 2014
Forex reserves rise to $295.7 bn
After declining for two weeks, India's foreign exchange reserves rose by $204.9 million to $295.71 billion in the week ended December 27 on the back of an increase in the core currency component, RBI said on Friday.
The reserves had declined by $12.6 million in the previous reporting week to $295.50 billion.
Foreign currency assets (FCAs), which form a major part of the overall reserves, shot up by $164.3 million to $268.634 billion in the week under review, the Reserve Bank of India (RBI) said.
FCAs, expressed in dollar terms, include the effect of appreciation or depreciation of the non-US currencies such as the euro, pound and yen, held in reserves.
During the week under review, the gold reserves were unchanged at $20.603 billion.
The special drawing rights were up by $30.3 million to $4.461 billion, while there was a $10.3 million spike in India's reserve position with the IMF at $2.009 billion during the period, the RBI data showed.
The reserves had declined by $12.6 million in the previous reporting week to $295.50 billion.
Foreign currency assets (FCAs), which form a major part of the overall reserves, shot up by $164.3 million to $268.634 billion in the week under review, the Reserve Bank of India (RBI) said.
FCAs, expressed in dollar terms, include the effect of appreciation or depreciation of the non-US currencies such as the euro, pound and yen, held in reserves.
During the week under review, the gold reserves were unchanged at $20.603 billion.
The special drawing rights were up by $30.3 million to $4.461 billion, while there was a $10.3 million spike in India's reserve position with the IMF at $2.009 billion during the period, the RBI data showed.
Inflation a concern; India heading for better times: PM
Admitting government's failure to contain inflation, Prime Minister Manmohan Singh on Friday said high prices have helped farmers and asserted the country was heading for better times.
"...we have also not been as successful in controlling persistent inflation as we would have wished. This is primarily because food inflation has increased. However, we should remember that our inclusive policies have put more money in the hands of the weaker sections", Singh said while addressing a press conference, the third as Prime Minister.
The worry about inflation, he added, "is legitimate but we should also recognise that incomes for most people have increased faster than inflation."
While making a case for increasing supplies and improving marketing and logistics to contain food prices, especially of perishables like fruits and vegetables, he stressed "much of this work lies in the domain of the states."
As regards the growth, which has slipped to decade's low of 5 per cent in 2012-13, the Prime Minister attributed the slowdown to global factors but exuded confidence that the growth momentum would revive in the coming years.
"We are set for better times. The cycle of global economic growth is turning for the better. Many of the steps we have taken to address our domestic constraints are coming into play. India's own growth momentum will revive", he added.
He said that during the term of UPA, India for the first time in its recorded history, witnessed a sudden acceleration of economic growth to 9 per cent.
"This exceptional performance was followed by a slowdown initiated by the global financial crisis. Over the past couple of years, all emerging economies have experienced a slowdown.
India was no exception", he added.
Singh further added that it was not just the acceleration of growth that "gives me satisfaction. Equally important is the fact that we made the growth process more socially inclusive than it has ever been." .
Expressing the government's commitment to economic reforms, Prime Minister said "so long as we are in power we will continue to push for reforms...our government attaches highest priority to reforms.
"...we will continue to implement our policies, with vigour and commitment, aiming to revive growth, promote enterprise, generate employment, eliminate poverty and ensure the safety and security of all our people, particularly women and children."
India, he further said, "provides a hospitable environment for foreign direct investment (FDI). We will continue to improve our practises wherever needed."
Observing that over the past decade economy has gone through many ups and downs, Singh said, "we should not focus overly on the short term."
Citing the achievements of the government, Singh said that in 2004 it tried to give "a New Deal for Rural India" and pursued farmer friendly policies including raising support prices, expanding credit to farmers, and increasing investment in horticulture, rural development, and rural infrastructure, especially roads and electricity.
He further said that the Mahatma Gandhi National Rural Employment Guarantee Scheme has assured agricultural labour of a floor and has increased their bargaining power, besides improving delivery of health and education services.
Because of the policies pursued by the government, he said, percentage of the population below the poverty line has fallen much faster in the period 2004-2011 than it did in the previous ten year period and that the number of people below the poverty line has come down by 13.8 crore.
Referring to the issue of job creation, Singh said the government had not been able to do as well as it would have liked to and was working "hard" to improve the situation.
"I am concerned that we have not been as successful as we need to be in generating employment in the manufacturing sector . This is an aspect of performance which we are working hard to correct.
"We need a much stronger effort in support of small and medium enterprises which can be a major source of good quality employment. Our manufacturing strategy gives high priority to this objective for the future."
Hoping that the Food Security Act would to some extent shield the common man from rising food prices, he said, real wages in rural areas have increased faster than before and also the per-capita consumption in both rural and urban areas had increased significantly.
As regards the impact of external situation on domestic economy, the Prime Minister said, "the one lesson we shall all learn from our experience over the past decade is that the world around us is becoming more challenging.
"This is both a function of our greater integration with the world and of the international community's expectations from a rising India. This is India's manifest destiny. We should recognise it as such and learnt to deal with it."
The Prime Minister, faced a number of questions on corruption charges that sullied the image of UPA 2, asserted that the controversies surrounding coal blocks allocation scam and the 2G spectrum licences pertained to UPA I and people had voted the coalition back to power in 2009.
"Well as far as charge of corruption are concerned, most of the charges relate to period of UPA I. The coal block allocation as well 2G spectrum allocation, they were both in UPA I. We went to the electorate in 2009 and people gave us mandate to rule again.
"These charges have been raised from time to time by the media, CAG and courts. They belong to the previous five years. People of India entrusted us with the responsibility to rule Agni. They do no seem to have paid heed to all charges of corruption.," he said.
Asked if he could have done something differently on the corruption issue since it has tainted his Mr. Clean image, Singh said he felt "somewhat sad. It was I who insisted that spectrum allocation should be transparent and fair. It was I who insisted that the allocation of coal blocks should be on the basis of auction. These facts were forgotten.
"Opposition has vested interests. Sometimes the media plays into their hands. When history is written we will come out unscathed. This is not to say that there are no irregularities. But the dimensions of the problem have been overstated by the media, by CAG sometimes and other entities."
To various questions about his performance and how he would be judged, he said "I honestly believe that history will be kinder to me than the contemporary media or for that matter opposition parties."
Key takeaways:
-All emerging economies, including India faced slowdown in past couple of years
-We achieved a 9 per cent growth during UPA
-We are set for better times, cycles of global economic growth are improving
-Number of people below poverty line has come down: PM
-Worry about inflation is legitimate but income for most people have increased faster than inflation
-Not successful in controlling inflation, need to increase supplies to keep food prices under control
-Concerned over not generating employment in manufacturing sector; need efforts to support medium and small enterprises
-We will continue to implement our policies to revive growth, promote enterprise, generate employment and eliminate poverty
"...we have also not been as successful in controlling persistent inflation as we would have wished. This is primarily because food inflation has increased. However, we should remember that our inclusive policies have put more money in the hands of the weaker sections", Singh said while addressing a press conference, the third as Prime Minister.
The worry about inflation, he added, "is legitimate but we should also recognise that incomes for most people have increased faster than inflation."
While making a case for increasing supplies and improving marketing and logistics to contain food prices, especially of perishables like fruits and vegetables, he stressed "much of this work lies in the domain of the states."
As regards the growth, which has slipped to decade's low of 5 per cent in 2012-13, the Prime Minister attributed the slowdown to global factors but exuded confidence that the growth momentum would revive in the coming years.
"We are set for better times. The cycle of global economic growth is turning for the better. Many of the steps we have taken to address our domestic constraints are coming into play. India's own growth momentum will revive", he added.
He said that during the term of UPA, India for the first time in its recorded history, witnessed a sudden acceleration of economic growth to 9 per cent.
"This exceptional performance was followed by a slowdown initiated by the global financial crisis. Over the past couple of years, all emerging economies have experienced a slowdown.
India was no exception", he added.
Singh further added that it was not just the acceleration of growth that "gives me satisfaction. Equally important is the fact that we made the growth process more socially inclusive than it has ever been." .
Expressing the government's commitment to economic reforms, Prime Minister said "so long as we are in power we will continue to push for reforms...our government attaches highest priority to reforms.
"...we will continue to implement our policies, with vigour and commitment, aiming to revive growth, promote enterprise, generate employment, eliminate poverty and ensure the safety and security of all our people, particularly women and children."
India, he further said, "provides a hospitable environment for foreign direct investment (FDI). We will continue to improve our practises wherever needed."
Observing that over the past decade economy has gone through many ups and downs, Singh said, "we should not focus overly on the short term."
Citing the achievements of the government, Singh said that in 2004 it tried to give "a New Deal for Rural India" and pursued farmer friendly policies including raising support prices, expanding credit to farmers, and increasing investment in horticulture, rural development, and rural infrastructure, especially roads and electricity.
He further said that the Mahatma Gandhi National Rural Employment Guarantee Scheme has assured agricultural labour of a floor and has increased their bargaining power, besides improving delivery of health and education services.
Because of the policies pursued by the government, he said, percentage of the population below the poverty line has fallen much faster in the period 2004-2011 than it did in the previous ten year period and that the number of people below the poverty line has come down by 13.8 crore.
Referring to the issue of job creation, Singh said the government had not been able to do as well as it would have liked to and was working "hard" to improve the situation.
"I am concerned that we have not been as successful as we need to be in generating employment in the manufacturing sector . This is an aspect of performance which we are working hard to correct.
"We need a much stronger effort in support of small and medium enterprises which can be a major source of good quality employment. Our manufacturing strategy gives high priority to this objective for the future."
Hoping that the Food Security Act would to some extent shield the common man from rising food prices, he said, real wages in rural areas have increased faster than before and also the per-capita consumption in both rural and urban areas had increased significantly.
As regards the impact of external situation on domestic economy, the Prime Minister said, "the one lesson we shall all learn from our experience over the past decade is that the world around us is becoming more challenging.
"This is both a function of our greater integration with the world and of the international community's expectations from a rising India. This is India's manifest destiny. We should recognise it as such and learnt to deal with it."
The Prime Minister, faced a number of questions on corruption charges that sullied the image of UPA 2, asserted that the controversies surrounding coal blocks allocation scam and the 2G spectrum licences pertained to UPA I and people had voted the coalition back to power in 2009.
"Well as far as charge of corruption are concerned, most of the charges relate to period of UPA I. The coal block allocation as well 2G spectrum allocation, they were both in UPA I. We went to the electorate in 2009 and people gave us mandate to rule again.
"These charges have been raised from time to time by the media, CAG and courts. They belong to the previous five years. People of India entrusted us with the responsibility to rule Agni. They do no seem to have paid heed to all charges of corruption.," he said.
Asked if he could have done something differently on the corruption issue since it has tainted his Mr. Clean image, Singh said he felt "somewhat sad. It was I who insisted that spectrum allocation should be transparent and fair. It was I who insisted that the allocation of coal blocks should be on the basis of auction. These facts were forgotten.
"Opposition has vested interests. Sometimes the media plays into their hands. When history is written we will come out unscathed. This is not to say that there are no irregularities. But the dimensions of the problem have been overstated by the media, by CAG sometimes and other entities."
To various questions about his performance and how he would be judged, he said "I honestly believe that history will be kinder to me than the contemporary media or for that matter opposition parties."
Key takeaways:
-All emerging economies, including India faced slowdown in past couple of years
-We achieved a 9 per cent growth during UPA
-We are set for better times, cycles of global economic growth are improving
-Number of people below poverty line has come down: PM
-Worry about inflation is legitimate but income for most people have increased faster than inflation
-Not successful in controlling inflation, need to increase supplies to keep food prices under control
-Concerned over not generating employment in manufacturing sector; need efforts to support medium and small enterprises
-We will continue to implement our policies to revive growth, promote enterprise, generate employment and eliminate poverty
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