RGD - 27 Nov 2009 - Updates by nuhman10


									R G D & Co.                                                                + 91 22 23876993
Chartered Accountants                                                       www.dasija.com

                       NEWS AND UPDATES – 27 November 2009


Direct Tax Code Bill to be tabled only in Budget Session

With the mammoth task of garnering support on contentious issues like exempt-exempt-tax
(EET) regime for savings and minimum alternative tax (MAT) still to be done, the Direct Tax
Codes Bill, which will replace the archaic Income Tax Act, 1961, is not likely to be
introduced in the ongoing Parliament session. According to official sources, the bill will be
tabled in Parliament only in the Budget Session.

GST will be a major breakthrough in the history of tax reforms

As finance minister of West Bengal for more than two decades and chairman of the
Empowered Committee of State Finance Ministers, Asim Dasgupta converges the roles
seamlessly. A fortnight after releasing the first discussion paper on the goods and services tax
(GST), Dasgupta talks to Namrata Acharya and Ishita Ayan Dutt about the GST's rollout and
its benefits.

The Centre and the state governments may retain the powers of reducing rates for the
proposed goods and services tax (GST) without going through the Parliamentary process.
Despite stability and uniformity of rates being the basis for the concept of GST, the model
GST Bills are likely to have a provision for giving the governments the flexibility to bring
down rates, though with a certain degree of discipline.

The second discussion paper of the empowered group of state finance ministers on GST is
likely to be released next month. This will be more detailed than the first paper, released
earlier this month.

Uttar Pradesh traders have demanded single Goods and Services Tax (GST) as opposed to
dual GST proposed to be implemented in the country from April 1, 2010.The traders further
want GST implementation of GST be deferred by at least two years allowing the traders to
develop better understanding of the new and advanced tax regime.

Ministry of Corporate Affairs to observe third week of December as “India Corporate

Starting this December, the Ministry of Corporate Affairs will observe the third week of
December every year as “India Corporate Week”. The theme for “India Corporate Week-
2009” will be “Corporate Sector and Inclusive Growth”. By this the Ministry expects
corporate sector to reaffirm its commitment to inclusive growth. Announcing this at a Press

R G D & Co.                                                                + 91 22 23876993
Chartered Accountants                                                       www.dasija.com

Conference, the Minister for Corporate Affairs and Minority Affairs, said that this is in tune
with the motto of the Ministry of Corporate Affairs : to promote the corporate sector with
enlightened regulation. He said that the Ministry is focusing on the entire business sector and
making an effort to offer a bouquet of incorporation instruments through the Companies Act,
LLP Act, etc. While a number of initiatives in this direction are underway, the Ministry also
feels that there is need to provide positive reinforcement to the efforts made by the corporate
sector in the development of the nation. “India Corporate Week” is being planned to achieve
this goal, the Minister said.

During the “India Corporate Week”, the events organised by CII will be focusing on the
subject of “Best practices in corporate governance”, FICCI on CSR and ASSOCHAM on the
SME sector. The weeklong events at major locations in the country will culminate into a
national crowning event in New Delhi on December 21 or 22, 2009 and the consent of Prime
Minister to be the Chief Guest for this event is expected shortly. The Minister has made an
appeal to the Media to give their support in making this venture of the Ministry a great

R G D & Co.                                                                 + 91 22 23876993
Chartered Accountants                                                        www.dasija.com


Tax audit

Ghai Construction v. State of Maharashtra

[2009] (184 Taxman 52 (Bom.))


In case of an individual carrying on business as a sole proprietor, it is necessary to comply
with provisions of section 44AB only in respect of his business income and not in respect of
his other income.


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