TDS ............
STANDARD OPERATING PROCEDURES (SOP) FOR ADMINISTERING TDS INCORPORATING THE RE-ENGINEERED PROCESSES DEVELOPED BY THE CPC-TDS 1. TDS is a non-obtrusive but powerful instrument to prevent tax evasion as well as to expand the tax net. TDS also minimizes tax avoidance by the taxpayer (income earners), as the payee's transaction(s) are reported to the Department by […]
PFA
MAT Brief Provisions
Article summarizes the provisions of Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT). The article gives theoretical insights along with examples for sound understanding of the provisions.
PFA
It is clarified that under the provisions of aforesaid Circular, residents that are subsidiaries of multinational companies can also hedge their foreign currency exposure through permissible derivative contracts executed with an AD Category – I bank in India on the strength of guarantee of its non-resident group entity.
Non-resident guarantee for non-fund based facilities entered between two resident entities
RBI/2014-15/387
A.P. (DIR Series) Circular No. 56
A.P. (DIR Series) Circular No. 56
January 6, 2015
To
All Authorised Dealer Category – I Banks
Madam /Sir
Non-resident guarantee for non-fund based facilities entered between two resident entities
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A. P. (DIR Series) Circular No. 20 dated August 29, 2012 in terms of which non-resident guarantee for non-funded facilities such as Letters of Credit/guarantees/Letters of Undertaking (LoU) /Letter of Comfort (LoC) entered between two persons resident in India is allowed under the general permission route.
2. It is clarified that under the provisions of aforesaid Circular, residents that are subsidiaries of multinational companies can also hedge their foreign currency exposure through permissible derivative contracts executed with an AD Category – I bank in India on the strength of guarantee of its non-resident group entity. The method of discharge of liability by the non-resident guarantor under the guarantee and the subsequent repayment of the liability by the principal debtor shall continue to be governed, as hitherto, by the provisions of A.P. (DIR Series) Circular No. 28 dated March 30, 2001.
3. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
4. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully
B. P. Kanungo
Principal Chief General Manager
Principal Chief General Manager
The Institute of Chartered Accountants of India (ICAI) notes with great pride that the Government has accepted its recommendations with regard to the roadmap for implementation of Indian Accounting Standards (Ind AS) for companies other than banking companies, insurance companies and NBFCs. ICAI had recommended this roadmap to the Ministry of Corporate Affairs (MCA) in […]
ICAI's way forward for Implementation of Ind AS
The Institute of Chartered Accountants of India (ICAI) notes with great pride that the Government has accepted its recommendations with regard to the roadmap for implementation of Indian Accounting Standards (Ind AS) for companies other than banking companies, insurance companies and NBFCs. ICAI had recommended this roadmap to the Ministry of Corporate Affairs (MCA) in August 2014, subsequent to the Budget statement of the Hon'ble Finance Minister to implement the Indian Accounting Standards converged with International Financial Reporting Standards on voluntary basis from 1st April, 2015 and on mandatory basis from 1st April, 2016.
Ever since the notification of Indian Accounting Standards converged with IFRS by MCA in February 2011, the ICAI has been in the process of updating, revising and issuing new Ind AS converged with IFRS issued by the IASB after 2011 so that when the country moves towards implementation of the Ind AS, the same should be at par with the IFRS currently in force internationally as well. As a consequence to this preparedness, ICAI was able to revise all the Ind AS and issued the new Ind AS converged with IFRS and submitted them on timely basis to the National Advisory Committee on Accounting Standards (NACAS) constituted by the MCA. The NACAS has also completed the exercise and recommended all the Ind AS to the MCA last month. It is expected that the Ministry will notify the new set of Ind AS shortly.
ICAI recognises that notification of the Ind AS is only the first step though an important one. To be effective, the Ind AS have to be implemented in the same way as they are implemented internationally. CA.K.Raghu, President, ICAI said " Since the Ind AS require generation of new type of financial information which is to be reported in the Ind AS-compliant financial statements, the systems of the companies need to be modified appropriately to generate such information. Further, not only the professionals involved in the preparation of financial statements as per Ind AS need to have the necessary skill-sets to implement the Ind AS as these require judgements and estimates to be made which were hitherto not required, but also the auditors need to upgrade their skills in this regard. ICAI through its IFRS certification course has already trained large number of professionals."
Going forward, the ICAI plans to gear up its capacity building endeavours in a focused manner. Raghu added "The ICAI is planning to hold chain seminars throughout the country with a view to develop the necessary skills and knowledge for smooth and effective implementation of the Ind AS. To begin with, ICAI is holding a workshop on January 15, 2015 of companies that have experience of preparing IFRS financial statements, to discuss the first-time adoption issues." The ICAI also plans to bring out educational materials for all Ind AS (it may be noted that the education materials for 7 Ind AS have already released). The ICAI also plans to launch the Ind AS in the electronic form so that the professionals and others concerned may use the contents of the Ind AS in a more effective manner.
As per the roadmap, after the initial phase of Ind AS becoming mandatory from 1st April, 2016 whereby about 550 listed companies are expected to implement the Ind AS (the number would be higher if unlisted companies having net worth of more than Rs. 500 crore are also covered). This number is likely to increase next year as all the listed companies and unlisted companies having networth of more than Rs. 250 crores will get covered in the next year.
Raghu added "Further, banks, NBFCs and Insurance Companies are expected to move to Ind AS 2-3 years thereafter. Accordingly, over the next few years more and more entities will apply Ind AS on mandatory basis while a few do so on voluntary basis with a view to bring their financial statements at the international level. The ICAI has accordingly geared itself on long-term basis to meet the challenges in the implementation of IFRS." (Source- ICAI)
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