Feb. 26 – A proposal to amend bills governing chartered accountants, cost accountants and company secretaries during India’s Budget session may allow large consultancy firms to register in the country.
Changes will be made on the Institute of Chartered Accountants of India Act, the institute of Company Secretaries of India Act and the Institute of Cost & Works Accountants of India Act that will allow professional bodies from various fields to form Limited Liability Partnerships (LLPs).
Feb. 25 – India’s Central Board of Excise and Customs (CBEC) has proposed widening the scope for India’s service tax to include the entertainment business for the upcoming Union Budget 2010-11.
Currently, entertainment is separately taxed by states and as a service tax by the central government with no prevailing uniformity on taxation since taxes are paid on a case-to-case basis.
Feb. 24 – Finance Minister Pranab Mukherjee will reveal India’s budget for the fiscal year 2010-2011 this coming Friday in a speech to the Indian Parliament.
The contents of the budget are crucial this year especially as India climbs out of the economic downturn, and the business friendly Congress Party looks to balance books, encourage commerce, but still deal potentially with the continuation of the economic stimulus plan.
Feb. 24 – Foreign companies doing business in India will be levied tax on dividends, royalty and technical fees.
According to India’s Income Tax Department, income-tax payable shall be aggregate of:
- The amount of income-tax calculated on the amount of income by way of dividends 20a[other than dividends referred to in section 115-O], if any, included in the total income, at the rate of twenty percent
Feb. 23 – India’s credit rating may be raised from junk if finance minister Pranab Mukherjee provides a comprehensive plan to roll back the fiscal stimulus and cut the budget deficit this week, said Moody’s Investors Service.
“If we think the exit path is well articulated and well executed, the local currency rating could be upgraded,” Aninda Mitra, a Singapore-based sovereign analyst at Moody’s, said in a telephone interview with The Economic Times.
Feb. 23 – India’s Employee State Insurance Corporation has agreed to raise the wage ceiling from Rs10,000 (US$216) to Rs15,000 (Us$324) per month under the ESI Scheme.
The social security scheme covers employees and their dependents during sickness, maternity, temporary or permanent physical disablement, death or injury during the time of employment.
Feb. 22 – India’s Central Board of Direct Taxes has amended the Income Tax Rules of 1962 applicable starting April 1, 2009.
Changes include a new Form 16, Form 16A, Form 16AA, Form 27D, and forms showing breakup of Tax Deducted at Source and Tax Collection at Source for financial year 2009-10.
Rules 30, 31 and 31A will be substituted with the time and mode of payment to government account of tax deducted at source or tax paid under sub-section (1A) of Section 192.
Feb. 19 – The Indian government approved an equity infusion of US$177million in two equal monthly installments to the National Aviation Company of India Ltd, the holding company for Air India.
NACIL is currently facing severe financial losses. Costly legacy assets, a weakening revenue stream and high cost structure are resulting in rising liabilities. The equity infusion will help the troubled carrier over its cash flow problem and finance fleet acquisition plans. A meeting of the Cabinet Committee on Economic Affairs, presided over by Prime Minister Manmohan Singh, gave its nod to the fresh equity infusion.