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PDICAI Knowledge Capsule - 23/05/2014

Friday, May 23, 2014
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Professional News
INCOME TAX
Supreme Court breather for HSBC Geneva account holders
Maharashtra : Swiss bank account holders now have another reason to rejoice. Almost three-fourths of the 600 or so named in the list of clients of HSBC Geneva are beneficiaries of " discretionary trusts".These individuals are confident that a Supreme Court ruling this week on offshore trusts will get the taxman off their back.
Misc. - Direct Tax
Narendra Modi formula: Less hawkish on direct taxes
Delhi : Two immediate steps the Narendra Modi-led NDA government is set to take in the area of taxation are ushering in a less hawkish direct tax administration and a technology-driven anti-evasion approach for indirect taxes. The new government is likely to take steps to avoid aggressive income adjustments by corporate tax payers, including in the area of transfer pricing, that do not stand the test of appeal.
Minimum alternate tax withdrawal in plan to revive struggling SEZs
Delhi : Gujarat angle could come to the aid of floundering special economic zones (SEZs), conceived as specialised enclaves to push exports. The commerce department will push for the withdrawal of taxes like minimum alternate tax (MAT) and dividend distribution tax (DDT) on these zones as part of a bigger strategy to revive them and boost manufacturing. Gujarat has the largest notified SEZ land, making the policy change that much more marketable to the incoming Narendra Modi government.
Misc. - Indirect Tax
Handset makers hope new govt rationalises local tax structures
Delhi : Handset makers in India want the new BJP-led government to rationalise local tax structures and reduce import duty on devices under Rs2,000 from existing 7% to 1%, on an immediate basis. In the long term, most device makers want the new government to implement a semiconductor policy that can help in creating a much-needed ecosystem for local manufacturing of handsets.
SEBI
Sebi raises cash transaction limit in MFs to Rs 50,000
Maharashtra : Investors without Permanent Account Number (PAN) can now put as much as Rs50,000 in mutual funds in cash every year. Sebi on Thursday said it was increasing the limit for cash investments to Rs50,000 from Rs20,000.The move is aimed at helping mutual funds sell products in small towns and rural areas, where transactions happen in cash rather than through banks.
RBI
With gold curbs off, RBI puts shine back on diamond trade
West Bengal : Small and medium diamond jewellers, particularly in Narendra Modi's state Gujarat, have heaved a sigh of relief as the Reserve Bank of India has eased gold import norms by allowing select trading houses, in addition to the already permitted banks, to procure the yellow metal. "These jewellers were under tremendous pressure as both gold and diamond were becoming pricey for them.
FDI Policy
Finance ministry pitches for full control of FDI policy
Delhi : Days before the expected restructuring of ministries and departments by the new government, the finance ministry has sought full control of the foreign direct investment (FDI) policy.An official aware of the development said the ministry has argued that the department of economic affairs (DEA), which is under the finance ministry, is well placed to take a holistic view of the FDI policy as part of its mandate to frame and implement the economic and financial sector policy.
Misc. Corporate Laws & Other Commercial Policies
Telecom department seeks regulator’s suggestions on MVNO policy
Delhi : The Department of Telecommunications (DoT) will once again seek the regulator's recommendations on implementing mobile virtual network operator (MVNO) policy as it wants clarity on how to introduce this in the new unified licensing regime. The step, as shown in an internal government note, indicates that moves are finally afoot to allow such services in India, many years after it was first mooted and initial suggestions from the Telecom Regulatory Authority of India (Trai) were sought.
Finance & Money Markets
Market rebound hits MNCs' delisting plans, many to postpone buybacks
Maharashtra : The cheer that has returned to the Indian market in the past few months has poured cold water on the plans of multinational companies looking to delist their local subsidiaries. They will have to spend more to buy back shares as stock prices have gone sharply higher, while the dollars they bring in will purchase fewer rupees to pay existing investors as the local currency has appreciated considerably. Many of these MNCs are likely to postpone their delisting plans, say bankers.
Daily delivery turnover hits 3½-year high on improved sentiment
Maharashtra : As the Nifty rallied to yet another lifetime high on Thursday of 7,276.4 points, with the Street becoming increasingly confident the BJP-led NDA will deliver growth, the combined average daily delivery turnover on the bourses in May has touched a three-and-a-half-year high of R8,940 crore.According to data from Bloomberg, only in two months in the last three-and-a-half years has the turnover has crossed the R8,000 mark,
Rupee sees biggest single-day rise in a week
Maharashtra : The rupee posted its biggest single-day rise in nearly a week after reports that the finance ministry was working on a proposal to cut fiscal deficit, with gains also coming from improving global risk sentiment.The rupee hit a session high of 58.41 per dollar, stopping just short of an 11-month peak on Monday, on the report that the finance ministry was hoping to cut the 2014/15 fiscal deficit to 3.8-3.9% of the gross domestic product, below the current target of 4.1%.
Commodities
Gold falls to 9-month low as RBI eases import curbs
Delhi : Gold prices in mumbai tumbled R800 on Thursday to hit a nine-month low of R28,100 per 10 grams as premiums crashed by more than half, a day after the Reserve Bank of India allowed banks to provide gold loans to jewellers and permit more entities to import gold. Shares of leading jewellers, including Gitanjali Gems, Titan co and Tribhovandas Bhimji Zaveri, rose by up to 20% on Thursday in response to the change in the norms and on expectations the new government could take more steps to improve gold supplies further.
MERGER & ACQUISITION - NATIONAL
Everstone Capital picks up 51% stake in Indonesian franchise of Domino's Pizza
Maharashtra : After wine, coffee, burgers and gelato, it's now time to turn to pizzas for marque private equity investors Everstone Capital. The seven-year-old India and South East Asia focused fund with $2 billion of assets currently under management, has taken a big bite of Domino's Pizza's in Indonesia by picking up a controlling 51% stake in their local franchise, PT Dom Pizza Indonesia, for $20 million, said people aware of the development.
Pension/Provident Fund
EPFO asks field offices to settle all claims within 20 days
Delhi : Retirement fund body Employees’ Provident Fund Organisation (EPFO) has asked its over 120 field offices to settle claims, including provident fund (PF) withdrawal and pension, within 20 days as against the mandated 30-day time frame.“Central provident fund commissioner (of EPFO) directed that from the current financial year 2014-15 the norms for claims settlement shall be settlement of all claims within 20 days,” stated a recent performance review of the EPFO by its central provident fund commissioner (CPFC) K.K. Jalan. Jalan specifically referred to the need to ensure faster settlement of pension claims.
Reminders
 Tenders
United Bank Of India - Kolkata West Bengal 24/05/2014
Watershed Development Department 24/05/2014
State Project Facilitation Unit - Bhopal Madhya Pradesh 26/05/2014
State Health Society Jaipur 26/05/2014
Ministry Of Urban Development - New Delhi Delhi 26/05/2014
North Eastern Development Finance Corporation Limited 26/05/2014
Punjab & Sind Bank 26/05/2014
National Rural Health Mission Maharashtra 26/05/2014
Watershed Development Department 26/05/2014
Forward Markets Commission - Government of India  26/05/2014
Mission For Elimination Of Poverty In Municipal Areas 26/05/2014
Housing And Urban Development Corporation Limited - Dehradun 27/05/2014
Rajasthan Medical Services Corporation Limited 28/05/2014
Hospital Services Consultancy Corporation [ India] Limited 28/05/2014
Cantonment Board - Solan Himachal Pradesh 28/05/2014
Public Health Engineering Department 28/05/2014
Dena Bank 28/05/2014
Rajasthan State Ganganagar Sugar Mills Limited 28/05/2014
National Highway Authority Of India 29/05/2014
Karnataka State Police Housing Corporation Limited 30/05/2014
Punjab Municipal Infrastructure Development Company 30/05/2014
Assam Administrative Staff College 30/05/2014
Sarva Shiksha Abhiyan - Srinagar - Jammu kashmir  30/05/2014
General Administration Department - Patna Bihar 30/05/2014
Mahila Arthik Vikas Mahamandal Limited - Mumbai Maharashtra 30/05/2014
District Panchayat - Korea Chhattisgarh 30/05/2014
 
Notifications & Circulars
RBI
Notification No. RBI/2013-14/601 (Delhi) 22/05/2014
Reporting to Central Repository of Information on Large Credits (CRILC)
Notification No. RBI/2013-14/597 (Delhi) 21/05/2014
Export of Goods - Long Term Export Advances
Notification No. RBI/2013-14/598 (Delhi) 21/05/2014
Need for Bank Branches / ATMs to be made accessible to persons with disabilities
Notification No. RBI/2013-14/599 (Delhi) 21/05/2014
Inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 – Bharatiya Mahila Bank Limited
Notification No. RBI/2013-14/600 (Delhi) 21/05/2014
Import of Gold by Nominated Banks / Agencies / Entities
 
Economy
 India
National Highways Authority of India board likely to provide relief to nine road projects
Pithampur SEZ exports up 51 pc at Rs 2,909 crore
Steel output up 5% in April
Foreign direct investment up 8% in FY'14 at $24.3 billion
 
 International
Euro zone biz growth slows in May, China improves
China ready to go the extra mile to satisfy its hunger for energy
Ukraine crisis, economic slowdown hit Russian vanity projects hard
French data brings ECB outlook back into focus
 
Markets Today
NSE
7,367.10

BSE
24,693.35

NASDAQ
4,154.34

     
USD
58.35
 
EURO
79.65
 
JPY(100)
57.46
 
GBP
98.53
 
 
Corporate Watch
No more foreign funds allowed in HDFC Bank: Government
Delhi : The government has turned down HDFC Bank's proposal to raise the cap on foreign institutional investment to 67.55% from 49% after a prolonged debate. This implies that foreigners will not be able to invest further in the country's second largest private bank, rated among the best in the region and on almost every 'buy' list.
Oil & gas companies hope govt will let market decide gas pricing
Delhi : The Narendra Modi government's oil minister will have to learn to swim in the deep end. Trillions of cubic feet of natural gas are trapped in deep-sea geological formations, only a small part of which have been tapped. The bigger chunk is waiting to be extracted and flow into factories and homes — if the price is right. Under the UPA regime, deep-sea fields have generated much more political heat than gas, which the country needs to fuel its expanding economy.
Flipkart acquires Myntra, gears up to take on Amazon
Karnataka : Flipkart has bought fashion portal Myntra in a deal estimated to be worth $370 million as it squares off against Amazon for dominance of India's fast-growing online retail market. At a press conference at the Myntra headquarters in Bangalore, the company's cofounder and chief executive Mukesh Bansal announced the deal by introducing his two 'colleagues' — Flipkart's founders Sachin Bansal and Binny Bansal. The Bansals are not related to each other.
Reliance Communications likely to sell 50% in undersea cable business to Citic Telecom
Delhi : Reliance CommunicationsBSE 4.07 % (RCOM) is in exclusive talks to sell a 50% stake in its undersea cable business to Hong Kong's Citic Telecom for $500 million (Rs 2,925 crore) to $600 million (Rs 3,510 crore), a person familiar with the matter said, as the Anil Ambani-controlled company steps up efforts to raise funds to pare debt. 'The talks for a 50:50 JV (for the cable assets) are quite advanced.
Vodafone India Set to Surpass U.K. by Sales Within Years
Delhi : Vodafone Group Plc (VOD) is poised to claim more revenue from India than the U.K. in the coming years, a first for the British mobile-phone company.India already commanded the largest share of the carrier’s subscribers and voice calls, and data usage has surpassed any other division. That means the country could overtake the U.K. and Italy in the next few years by revenue, according to Marten Pieters, Vodafone’s chief executive officer for India.
NBFC CORNER
A single window for auditors of non-banking finance companies
 
Tenders & Assignment
Vijaya Bank
Description :Invited from Chartered Accountant firms for selection of Concurrent Auditors of the branches/offices for the period 01.07.2014 to 30.06.2015

Last Date : 04/06/2014

Address :The Deputy General Manager, Central Inspection Department, Vijaya Bank, Head Office, No.41/2, M. G. Road, Trinity Circle
Bangalore-560001
 
Public Works Department
Description :Expression of interest for reputed chartered accountant for work of external audit (statutory Audit) of Program Implementing units & Gram Sadak Development Agency.

Last Date : 04/06/2014

Address :Himachal Pradesh Gram Sadak Development Agency,Nirman Bhawan,Nigam Vihar,Shimla-171002

Phone :0177-2621402
 
Assam State Rural Livelihood Mission Society
Description :Expression of interest for Conducting of Statutory audit of ASRLMS.

Last Date : 05/06/2014

Address :Guwahati - Assam
 
Assam Gramin Vikash Bank
Description :Empanelment of Concurrent auditors for its branches.

Last Date : 05/06/2014

Address :Assam Gramin Vikash Bank, Head Office, G.S.Road, Bhangagarh, Guwahati-781005

Phone :0361-2131604
 
West Bengal State Marketing Board
Description :Expression of interest for Engagement as internal auditors of Board for its head office.

Last Date : 06/06/2014

Address :Kamal Guha Krishi Bipanan Bhavan
729,Anandapur P.O.Anandapur,P.S.Tijala,Kolkata-700107

Phone :033-24430025
 
Urban Development Agency - Patna Bihar
Description :Selection Of Chartered Accountant Firms For Audit Of Urban Development Agency For The Financial Year 2011-12, 2012-13 & 2013-14.

Last Date : 06/06/2014

Address :Urban Development & Housing Department, GoB Room No-159 New Secretariat, Bailey Road, Patna-15
 
Himachal Pradesh Power Corporation Limited
Description :Expression of Interest from firms of Chartered Accountants for empanelment for Appointment as internal Auditors for the Financial year 2014-15.

Last Date : 10/06/2014

Address :Himfed Bhawan, Panjri, (Below Old MLA Quarters), Shimla-171005.

Phone :0177-2633589
 
Maharashtra State Electricity Transmission Company Limited
Description :Application for Empanelment of Firms of Chartered accountant for allotment of internal audit for the financial year 2014-15 & 2015-16.

Last Date : 12/06/2014

Address :Prakashganga,6th Floor,Plot No.C-19,"E-Block",BKC,Bandra (East),Mumbai-400051

Phone :022-26595000

E-Mail :cgmfi@mahatransco.in
 
Department Of Horticulture And Food Processing - Dehradun Uttaranchal
Description :Tender for The Appointment of CA Firm for Audit of HMNEH, NMMI Schemes.

Last Date : 13/06/2014

Address :Dehradun - Uttaranchal
 
Jammu And Kashmir State Forest Corporation
Description :Appointment of statutory auditors for conducting audit of accounts for the period of 2012-13 and 2013-14.

Last Date : 15/06/2014

Address :Jammu And Kashmir State Forest Corporation,H/O Behind Silk Factory Road,Rajbagh,Srinagar-190008
 
Jaipur Development Authority
Description :Request for proposal for Appointment of Statutory auditor/CA firms for six laning of ring road from road to road section at Rajasthan on DBFOT toll basis.

Last Date : 18/06/2014

Address :Jaipur Development Authority Jaipur
Rajasthan

Phone :0141-2563234
 
Delhi Pollution Control Committee
Description :Requisition of Chartered Accountant for Internal Audit For the Period 2009-10 to 2012-13.

Last Date : 20/06/2014

Address :Delhi Pollution Control Committee,4th Floor.ISBT Building,Kashmere Gate,Delhi-06
 
 
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