The dice are rolled out. Numbers are clear. Or so it seems. With each passing day it is evident that we are no more insulated from the global morass other countries are in. Export figures are wrong (‘entry errors’ as per bureaucrats), manufacturing output has slumped, rupee has tumbled, GDP is way below projections, borrowing rates are shooting up, inflation is high, economic reforms are on the ‘1 step forward 2 steps backwards’ mode even as citizenry activity is on the rise.
However there is always a ‘but’. But amidst all this it is heartening to find great enthusiasm and optimism from die-hard entrepreneurs who usher in new ideas, new businesses and innovative ways of working. It challenges us to find out-of-the-box solutions within the legal and regulatory framework. An interesting proposition no doubt.
The other important number is the Q3 Advance Tax due on 15th December, 2011. Come what may, the taxmen demands his pound of flesh every quarter !!To read the earlier issues and articles Click Here
Lex Valorem Team
A series of Cost Accounting Records Rules have been notified by MCA for Telecommunication, Sugar, Pharmaceutical, Petroleum, Fertilizer and Electricity Industry effective 7th December, 2011.
Maximum subscription limit for Public Provident Fund (PPF) has been raised to Rs. 100,000 from the existing limit of Rs. 70,000 per year. The interest on loan taken against the credit in the PF account has been increased from 1% to 2% is case such loan is repaid in a single installment. These provisions will be applicable w.e.f. 1st Dec, 2011.
The importer/company has to make an application to Government for the conversion of import payable / pre-operative or pre-incorporation expenses into FDI within 180 days thereof which will be approved against certain conditions.
The Supreme Court of India has upheld the judgment of the High Court in an interesting case. Mr. Shanti Bhusan, a leading advocate (Appellant) contended that the expenses of heart surgery carried on him should be allowed as deductable expenditure from the business/professional income. The appellant compared his �heart� to a �plant� which is used in manufacturing process and since the repairs carried on such plants will be allowed as deductable expenditure, the surgery cost should also be allowed as such. But the stand taken by the assessee was not accepted by the court and the judgment passed against him by the lower court was upheld.
The 2nd article in this series dwells upon the regulatory issues concerning Sole Proprietorship & Partnership form of organisation.
Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. Lex Valorem disclaims all liability on action taken without professional advice.