KYC Norms for Chartered Accountants

All the members of Institute of Chartered Accountants of India (ICAI), who are in practice,  are hereby informed that the Council has formulated the following Know Your Client Norms (KYC norms)  at it’s 307th Meeting held on 13^th July, 2011, which shall be recommendatory in nature, and apply only in case of attest function.

KNOW YOUR CLIENT (KYC) NORMS

The financial services industry globally is required to obtain information of their clients and comply Know Your Client Norms (KYC norms).

Keeping in mind the highest standards of Chartered Accountancy profession in India, the Council of ICAI thought it necessary to recommend such norms to be observed by the members of the profession who are in practice.

In light of this background, the Council of ICAI approved the following KYC Norms. However, these norms are recommendatory in nature and every Chartered Accountant carrying out attest function is encouraged to follow them.

Video Confrencing for AGMs of Listed Companies

The Ministry of Corporate Affairs has recognized participation by shareholders in the Annual General Meetings under the Companies Act, 1956 for all companies through video conference. Vide Circular dated 06.06.2011 issued by the Ministry, it is proposed to be mandatory for all listed companies for financial year 2012-2013 and onwards.

This information was given by the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh in reply to a written question in the Lok Sabha today whether the Government has any proposal to make Video Conferencing mandatory in Annual General Meetings (AGMs) of listed companies to facilitate the stakeholders to participate in the meetings 

International Private Leased Circuit charges are liable to service tax under Business Support Servicess

Because If service provider is Indian , then he gets covered under definition of  Telegraph Authority and hence under Telecommunication Service. However International Service provider can not be telegraph authority . Hence CBEC has clarified that if BPO/MNCs or other person is availaing such service then under reverse charge (i.e. import of service ) it will get covered under Business Support Servicve. 

Air passengers prohibited to carry rice in baggage from India

US Department of Agriculture, Animal, Plant & Health Inspection Service(USDA-APHIS) has notified new phytosanitary regulation for entry of rice from countries Including India where khapra beetle is known to occur. This will also apply to consignment throgh courier and mail. Hence non commercial consignment of rice prohibited from 30-07-2011
Customs 34/2011 dtd 03-08-2011

Section 43B :When tax, duty paid in advance under merchantile system

In Paharpur Cooling Towers Ltd v CIT (High Court of Calcutta) I.T.A. No. 2 of 2004 Decided on: 15 July 2011, High Court held that:

 It was never the intention of the legislature to deprive an assessee of the benefit of deduction of tax, duty etc. actually paid by him during the previous year, although in advance, according to the method of accounting followed by him. If we accept the reasoning given by the Tribunal, an advance payer of tax, duty etc. payable in accordance with the method of accounting followed by him will not be entitled to get the benefit even in the next year when liability to pay would accrue in accordance with the method of accounting followed by him because the benefit of Section 43B is given on the basis of actual payment made in the previous year. We, thus, find that the Tribunal below committed substantial error of law in denying the benefit of Section 43B (a) of the Act to the appellant only on the ground that the tax was paid in advance in accordance with the mercantile system of accounting.