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PDICAI Knowledge Capsule - 29/05/2014

Thursday, May 29, 2014
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Professional News
Misc. - Direct Tax
Commerce ministry seeks SEZ tax withdrawal, duty cut for sectors with high export potential
Delhi : The commerce ministry will push for withdrawal of taxes on Special Economic Zones and duty cut for sectors with high export potential as part of a crisp five-point budgetary proposal it will make to the finance ministry. Commerce secretary Rajeev Kher met with various export promotion councils on Wednesday where he made it clear that only a limited set of demands will be presented to the finance ministry to boost exports.
GST
FinMin working on new framework for GST
Delhi : In a renewed attempt to introduce a national goods and services tax (GST), the finance ministry is trying to address Bharatiya Janata Party (BJP) -ruled states' concerns in the proposed legislation. It has prepared a note on GST for Prime Minister Narendra Modi, while Finance Minister Arun Jaitley is planning to meet state finance ministers to remove hurdles in its introduction.
Misc. - Indirect Tax
Commercial Taxes Dept sets Rs. 42,000-cr target in Karnataka
Delhi : The Karnataka Commercial Taxes Department has set a tax collection target of Rs. 42,000 crore for 2014-15.Addressing presspersons on the sidelines of a meeting with the members of Kanara Chamber of Commerce and Industry (KCCI) in Mangalore on Wednesday, Ajay Seth, Commissioner of Commercial Taxes, Karnataka, said the department is fairly on track in tax collection in the first one-and-half months of the current financial year.
SEBI
Funds in a bind as Sebi acts tough on minimum capital
Maharashtra : The Securities and Exchange Board of India (Sebi) has started cracking the whip on mutual funds, whose net worth is below the required levels. The capital market regulator has stopped clearing applications for any new fund offers (NFOs) - both equity and debt schemes - of such fund houses though they are required to comply with the minimum capital requirements only by May 2017.
Raise minimum public holding for PSUs to 25%: Sebi to finmin
Maharashtra : The Securities and Exchange Board of India (Sebi) is learnt to have written to the finance ministry suggesting that the minimum public shareholding for government-owned companies be raised from 10% to 25%. It is reported that the ministry is considering the proposal that also suggests a three-year time-frame for PSUs to comply with this norm. Currently, there are 33 PSUs where the government holding stands at more than 75%. The government may end up raising more than R40,000 crore by the suggested stake sale, considering the average trading price of these companies over the last one year.
RBI
RBI on inoperative foreign currency accounts
Maharashtra : In a bid to manage unclaimed deposits, the Reserve Bank of India (RBI) has authorised banks to convert into rupee the credit balance in any inoperative foreign currency denominated deposit.According to RBI, if a foreign currency denominated deposit with a fixed maturity date remains inoperative for a period of three years from the date of maturity of the deposit, at the end of the third year, the bank shall convert the balances lying in the foreign currency denominated deposit into rupee keeping in mind the exchange rate prevailing as on that date.
FDI Policy
Govt should not rescind FDI policy in multi-brand retail: Srinivasan
Delhi : Noted economist T N Srinivasan has advised the newly elected government not to rescind the current FDI policy of allowing foreign investment in multi-brand retail."Not to allow FDI in multi-brand retail is against the logic of Prime Minister Narendra Modi's economic agenda," Srinivasan, who is a Professor Emeritus of Economics at Yale University, USA, told PTI.
Finance & Money Markets
Nabard microfin arm in expansion mode nationally
Maharashtra : The National Bank for Agriculture and Rural Development (Nabard) will scale up the business of its microfinance arm Nabard Financial Services (Nabfins) to become a national-level player.Nabfins, a 68 per cent non-banking finance subsidiary of Nabard, consolidated its operations in southern states such as Tamil Nadu and Karnataka and expanded in Maharashtra in 2013-14.
Bankers expect status quo on rates
Maharashtra : Bankers expect the Reserve Bank of India (RBI) to maintain status quo on rates at the monetary policy review on Tuesday as retail inflation is yet to show signs of slowing down. The RBI has been tracking consumer price inflation closely and, according to the report of a committee headed by deputy governor Urjit Patel, it is targeting to bring consumer price index (CPI) inflation down to 8% by the end of January 2015 and 6% by January 2016.
Nabard seeks govt nod for Rs 5,000-cr tax-free bond issue
Maharashtra : The National Bank for Agriculture and Rural Development (Nabard) has sought government approval for raising up to R5,000 crore through tax-free bonds.“We have requested the government, that if it is still keeping the tax-free bond window open, then we would like to raise funds under Nabard Infrastructure Development Assistance (NIDA),” said Harsh Kumar Bhanwala, chairman, Nabard.
Indian Bonds Drop as Yields Near Four-Month Low Deter Investors
Maharashtra : India’s 10-year bonds fell, reversing earlier gains, as a drop in yields toward a four-month low prompted some investors to pare positions. The yield on the 8.83 percent notes due November 2023 rose three basis points, or 0.03 percentage point, to 8.70 percent in Mumbai, prices from the RBI’s trading system show. The rate dropped as low as 8.66 percent earlier, approaching a January-low of 8.64 percent reached on May 23.
Indian rupee snaps 3-day losing streak on $ inflows
Maharashtra : The rupee snapped a three-day losing streak on Wednesday as dollar inflows related to foreign funds and companies helped offset heavy month-end demand for the greenback from oil and other importers. Traders also cited occasional dollar buying by the Reserve Bank of India, although the intervention was not believed to be as aggressive as in recent weeks.Traders will continue to focus on the measures the new government takes to bring down the fiscal deficit and fight inflation.
INTERNATIONAL BUSINESS
Nestle boosts skincare biz with $1.4-bn Valeant deal
 Swiss food group Nestle stepped up its drive into the fast-growing skincare market on Wednesday, buying the rights to several treatments for facial lines and wrinkles from Valeant Pharmaceuticals International for $1.4 billion in cash.The world’s biggest food group, with brands including KitKat chocolate bars, Gerber baby food and Nescafe coffee, signalled its ambitions in skincare in February by taking over the Galderma dermatology venture it had with L’Oreal.
MERGER & ACQUISITION - NATIONAL
VCs ride on e-commerce mergers
Maharashtra : Tiger Global and Accel Partners are considered to be leading the pack of private equity (PE) and venture capital (VC) investors focusing on India's growing e-commerce space. Through the recent Flipkart-Myntra merger, the two funds, which have stakes in the merged entities, have ensured huge returns before making an exit.A large chunk of PE/VC firms are set to reap major returns through consolidations.
Snapdeal plans to acquire up to 4 companies in FY15
Delhi : Just days after it raised Rs 620 crore in funding, India's largest online marketplace Snapdeal said it plans to make up to four acquisitions this financial year, mostly in the mobile technology and data analytics space. The company is currently in talks to acquire a mobile technology venture, according to Kunal Bahl, cofounder and chief executive of Snapdeal. "Based on the pipeline we are seeing so far, it won't be unrealistic for us to do three to four acquisitions this year.
Notifications & Circulars
CUSTOMS
Notification No.24 /2014-Customs (ADD) (Delhi) 24/05/2014
Seeks to levy definitive anti-dumping duty on imports of Methylene Chloride, originating in or exported from the European Union, United States of America and Korea RP for a period of five years from the date of imposition of the provisional anti-dumping duty, that is, 21st October, 2013
ORDER (Delhi) 16/05/2014
Appointment of Common Adjudicating Authority
Notification No. 21/2014-Customs (ADD) (Delhi) 16/05/2014
Seeks to extend the validity of notification No. 41/2009-Customs dated 29.04.2009 for a further period of one year i.e. upto and inclusive of 28.04.2015.
Notification No. 22/2014-Customs (ADD) (Delhi) 16/05/2014
Seeks to levy definitive anti-dumping duty on imports of persulphates, originating in or exported from Taiwan, Turkey and USA for a period of five years.
Notification No. 23/2014-Customs (ADD) (Delhi) 16/05/2014
Seeks to levy provisional anti-dumping duty on imports of phenol, originating in or exported from Chinese Taipei and USA for a period of six months.
Notification No. 41/2014 - Customs (N.T.) (Delhi) 15/05/2014
Rate of exchange of conversion of each of the foreign currency with effect from the 16th May, 2014
Notification No.42/2014 - Customs (N.T.) (Delhi) 15/05/2014
Amends Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001
Notification No.39/2014 - Customs (N.T.) (Delhi) 07/05/2014
Amends Notification No.62/1994-Cus.(N.T.) dated 21.11.1994
 
Economy
 India
Irrigation schemes, insurance cover: Govt scripts a sop opera for farmers
Advance pricing, banking top Japan’s list for Modi
FinMin to sell stakes in PSUs in the red
Improved Indo-Pak ties may help double trade from $3 billion
 
 International
Euro zone sentiment, inflation expectations rise in May
Asian Shares Scale One-Year Highs on Brightening US Economic Prospects
Ukraine's president ready to sign EU trade deal soon
 
Markets Today
NSE
7,235.65

BSE
24,234.15

NASDAQ
4,225.07

     
USD
58.90
 
EURO
80.11
 
JPY(100)
57.99
 
GBP
98.46
 
 
Corporate Watch
Jet Airways targets return to profit in 18 months
Maharashtra : Jet Airways expects to return to profit in 18 months, following implementation of a new route network and fleet strategy and cost optimisation measures, the senior management said on Wednesday.Jet’s net worth has turned negative despite Rs 2,057 crore in equity infusion from Abu Dhabi, United Arab Emirates-based Etihad Airways last year. The company has no plan to raise equity further.
Payments, logistics the new glamour areas of retail
Delhi : Payment, logistics, technology and supply chain are no longer the backroom boys, as leading e-commerce companies are planning to spend big bucks in these areas. High-pitched M&A (mergers and acquisitions) activity is also expected in the coming weeks and months in this space. The latest is Snapdeal wanting to invest Rs 350 crore on the supply-chain side this year, just a few days after Flipkart said it was looking for opportunity to acquire assets in the area.
Global hospital chains, buyout PE funds eye majority stake in Vasan Healthcare
Maharashtra : Large private equity buyout funds along with a few global hospitals and daycare chains are in separate early stage discussions to buy a majority stake in Vasan Healthcare Pvt Ltd, India's largest network of eye care hospitals, as its three existing financial investors revive plans for an exit.The transaction may also see Vasan's founder promoter selling out or paring his stake significantly, leading to a potential change of management control, said multiple people with knowledge of the matter.
NBFC CORNER
A single window for auditors of non-banking finance companies
 
Tenders & Assignment
Government Of Bihar
Description :Request for Expression of Interest for Appointment of Chartered Accountant for Making of Balance Sheet.

Last Date : 06/06/2014

Address :Patna - Bihar
 
Municipal Corporation Of Kota
Description :Requirement of Chartered accountant for Chartered accountant service like income tax, sale tax, royalty, service tax, PF etc work & financial year 2014-15 last accounts with bank reconciliation & audit work.

Last Date : 09/06/2014

Address :Municipal Corporation Of Kota
Kota Rajasthan
 
Assam State Rural Livelihood Mission Society - Guwahati - Assam
Description :Expression of Interest for Internal Audit.

Last Date : 10/06/2014

Address :State Mission Director,ASRLMS
Shivanath Gogoi Path,Nabajyotinagar Panjabari,Guwahati-37
 
Public Health Engineering Department - Patna Bihar
Description :Expression of Interest (EOI) for Selection of Chartered Accountant Firm for the Statutory Audit of Bihar State Water and Sanitation Mission.

Last Date : 10/06/2014

Address :Bihar State Water and Sanitation Mission(Public Health Engineering Department, Government of Bihar)First Floor, PHED Building, VishweshvariyaBhawan, Bailey Road, Patna

Phone :0612-22545705

E-Mail :edir_pmu@yahoo.co.in
 
Panchayat And Rural Development Department - Raipur Chhattisgarh
Description :Audit work by chartered accountant firms.

Last Date : 12/06/2014

Address :Panchayat And Rural Development Department Raipur Chhattisgarh
 
Department Of Higher Education - Agartala Tripura
Description :Expression of interest from the charted accountant firms empanelled with C & AG and having turnover of RS 25 lakhs / year to conduct internal audit for the work bank project.

Last Date : 16/06/2014

Address :Directorate of Higher Education.Old Secretariat.Complex,Agartala,Tripura (W),799001

Phone :0381-2314402

E-Mail :rupanjalmyself@gmail.com
 
Department Of Institutional Finance
Description :Appointment of statutory auditor for audit works.

Last Date : 20/06/2014

Address :Department Of Institutional Finance,Vindhyachal Bhawan, C-Wing, First Floor, Bhopal - 462004

Phone :91 755 2551199/2552003
 
Department Of Medical And Health Service - Kavaratti Lakshadweep
Description :Hiring Services Of Chartered Accountant Firm For Statutory Audit Of State Health Society. Under NHM.

Last Date : 20/06/2014

Address :Department Of Medical And Health Service,Kavaratti - Lakshadweep

Phone :04896-263748

E-Mail :rchlakshadweep@gmail.com
 
School Of Good Governance And Policy Analysis - Bhopal Madhya Pradesh
Description :Empanelment of chartered accountant – invited from the registered chartered accountants/firms for empanelment for conducting statutory audit of books of accounts of atal bihari Vajpayee lok prashasan sansthan.

Last Date : 23/06/2014

Address:Bhadbhada Chouraha,T.T.Nagar,Bhopal-462003,

Phone :2777316

E-Mail :sushasank@gmail.com
 
 
Reminders
 Tenders
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
Bharat Wagon And Engineering Company Limited 31/05/2014
State Health Society,NRHM -Jammu kashmir 31/05/2014
District Rural Development Authority - Mungeli Chhattisgarh 31/05/2014
Public Works Department 04/06/2014
Vijaya Bank 04/06/2014
Ahmedabad Cantonment Board 04/06/2014
Assam Gramin Vikash Bank 05/06/2014
Assam State Rural Livelihood Mission Society 05/06/2014
Department Of Agriculture - Panchkula Haryana 05/06/2014
 
 
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