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INVITATION

Dear Friends,
I request your gracious presence on the occassion of Kanakabhishekam of our Grandma,
&
Naming ceremony of our Babe,
on 25th April 2011, by 9.00 A M onwards,

at our residence,
# 764, 7th Cross, 3rd Main, J C Extension, Near Ambedkar School,
HARIHAR - 577601,
Karnataka.

Interpretation of the word “Partnership” for the purpose of CA/CS/CWA Act

The Acts governing the three professional Institutes define in Section 2 members who are deemed to be in practice. In all the three Acts, there is a provision for a member to be in practice when he is in partnership with certain others. In the case of Chartered Accountants and Cost & Works Accountants, such persons must be member of the same Institute, while in the case of Company Secretaries, it is provided that the partnership could also be with members of such other recognised professions as may beprescribed.
2 At the time of enactment of the three Acts governing the professional Institutes, only one form ofpartnership existed in India, namely Partnerships under Indian Partnership Act, 1932. Subsequently,Parliament has enacted the Limited Liability Partnerships Act, 2008. Though Limited Liability Partnerships are bodies corporate under Section 3(i) of the LLP Act, the fact that LLPs are basically partnerships may be seen from the definition in Section 2(i) (n) :‐
“ Limited Liability Partnerships means a partnership formed and registered under this Act.
Section 2(i)(q) defines a partner as “any person who becomes a partner in the limited liability
partnership in accordance with the Limited Liability Partnership Agreement”
It is thus clear that a Limited Liability Partnership is also a partnership and its members are also
partners.
3. The matter of permitting member of ICAI, ICWAI and I ICSI was been examined in this Ministry.Acts governing these professionals were passed at a time when limited liability partnership did not exist. It is also clear from the definitions in the Limited Liability Partnership Act that such entities are also partnerships and their members are also partners. In the context of Section 2 of the Acts governing the professional Institutes, this interpretation is also not repugnant to the context. Accordingly, it is clarified that the words “partnership” wherever occurring in the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959 and the Company Secretaries Act, 1980 shall mutatis mutandis be construed as including those Limited Liability Partnerships where all the other partners are natural persons(individuals). The word “partner” shall also be construed accordingly. This clarification shall apply only to these three Acts and not to any other enactment where the word “partnership’ occurs.
4. This issues with the approval of Competent Authority.

Interpretation of the word “Partnership” for the purpose of CA/CS/CWA Act

The Acts governing the three professional Institutes define in Section 2 members who are deemed
to be in practice. In all the three Acts, there is a provision for a member to be in practice when he is in
partnership with certain others. In the case of Chartered Accountants and Cost & Works Accountants, such
persons must be member of the same Institute, while in the case of Company Secretaries, it is provided
that the partnership could also be with members of such other recognised professions as may be
prescribed.
2 At the time of enactment of the three Acts governing the professional Institutes, only one form of
partnership existed in India, namely Partnerships under Indian Partnership Act, 1932. Subsequently,
Parliament has enacted the Limited Liability Partnerships Act, 2008. Though Limited Liability Partnerships
are bodies corporate under Section 3(i) of the LLP Act, the fact that LLPs are basically partnerships may be
seen from the definition in Section 2(i) (n) :‐
“ Limited Liability Partnerships means a partnership formed and registered under this Act.
Section 2(i)(q) defines a partner as “any person who becomes a partner in the limited liability
partnership in accordance with the Limited Liability Partnership Agreement”
It is thus clear that a Limited Liability Partnership is also a partnership and its members are also
partners.
3. The matter of permitting member of ICAI, ICWAI and I ICSI was been examined in this Ministry.
Acts governing these professionals were passed at a time when limited liability partnership did not exist. It
is also clear from the definitions in the Limited Liability Partnership Act that such entities are also
partnerships and their members are also partners. In the context of Section 2 of the Acts governing the
professional Institutes, this interpretation is also not repugnant to the context. Accordingly, it is clarified
that the words “partnership” wherever occurring in the Chartered Accountants Act, 1949, the Cost and
Works Accountants Act, 1959 and the Company Secretaries Act, 1980 shall mutatis mutandis be construed
as including those Limited Liability Partnerships where all the other partners are natural
persons(individuals). The word “partner” shall also be construed accordingly. This clarification shall apply
only to these three Acts and not to any other enactment where the word “partnership’ occurs.
4. This issues with the approval of Competent Authority.

Certification of e-forms under the Companies Act,1956 by the Practicing professionals

Ministry of Corporate Affairs has been steadily progressing towards total electronic filing and approval regime. Objective is to do away with human intervention in MCA approvals to the maximum extent possible. 2. For this purpose, Ministry of Corporate Affairs has entrusted practicing professionals registered as Members of the professional bodies namely, ICAI, ICSI & ICWAI with the responsibility of ensuring integrity of documents filed by them with MCA in electronic mode. Professionals are now to be responsible for submitting /certifying documents (to be signed digitally by them) and system would accept most of these documents online without approval by Registrar of Companies or other officers of the Ministry. 3. However, to ensure that the data integrity is maintained at all times, there will be checking of such submissions to guard against fraudulent filing. In addition to the penal actions against the companies and their officers in default for furnishing incorrect or false information in the documents as provided under the Companies Act, 1956, action would also be taken on receipt of any complaint, anonymous or otherwise, against such professionals in the following manner:- a) Alleged wrong submissions: In such cases, quick enquiry will be conducted by the concerned RD who will be assessing prima facie, cases of wrong doing by the professionals. Concerned professionals will be given time for furnishing explanation before conveying to a cancellation. b) This report will be submitted to e-Governance Cell of MCA. The Cell will inform in the concerned Professional Institute to initiate an enquiry and complete the same within a month’s time. c) Simultaneously, the concerned professional shall be debarred and shall not be allowed to enter to submit any document on MCA Portal. This debarment will be for a period of 30 days or till the final enquiry report is received from the respective Professional Institute. d) MCA will take a final decision after considering the report so received

Certification of e-forms under the Companies Act,1956 by the Practicing professionals

Refer MCA circuler no 14/2011

REIVSED PROCEDURE FOR EASY EXIT SCHEME/STRIKE OFF U/S.560

Refer General circuler no 12 of 2011

PAN compulsory for DIN - New as well as Existing - For Existing File DIN 4 By 31/05/2011

The Ministry of Corporate Affairs has already simplified the process for obtaining DIN online, if the DIN-l eform has been digitally signed by the practicing Chartered Accountant, Company Secretary or Cost Accountant, verifying the particulars of the applicants given in the application. However, in other cases, where the DIN form is digitally singed by the applicant only, the applications are being disposed off with in one or two days after examination by the Central Government. 2. As another step towards simplification in allotment of DIN, the Ministry is considering to allot all DIN applications online. To examine the DIN-4 eform through the system, it has been decided that following fields in the DIN-l eform will be mandatory: -- (i) Name of Applicant (ii) Father's name of the Applicant (iii) Date of Birth (iv) Income Tax Permanent Account Number (PAN) in case of all Indian Nationals. (v) Passport in case of all Foreign Nationals. 3. At present, the PAN of the applicant is not a mandatory field in DIN eform-l. In order to examine DIN-4 eform through the system and to avoid duplicate DIN, it has been decided that all existing DIN holders who have not furnished their PAN earlier at the time of obtaining DIN, are required to furnish their PAN by filing DIN- 4 eform by 31 st May, 2011.

Ses.217 amendment

These rules may be called the Companies (Particulars of Employees) Amendment Rules, 2011. In the Companies (Particulars of Employees) Rules, 1975 (hereinafter referred to as the said rules), in rule lA, - (i) in clause (a), for the words "rupees twenty-four lakhs", the words "sixty lakh rupees" shall be substitutedi (ii) in clause (b), for the words "rupees two lakhs", the words "five lakh rupees" shall be substituted. 3. In the first proviso to rule 2 of the said rules, - (a) for the words "particulars of employees of companies", the words "particulars of Government Companies and companies" shall be substitutedi (b) for the words "rupees twenty four lakhs per financial year or rupees two lakhs per month", the words "sixty lakh rupees per financial year or five lakh rupees per month" shall be substituted.

Company Law – Director’s Relatives (Office or Place of Profit) Amendment Rules, 2011 – Amendment in rules 3 and 7

NOTIFICATION [F.NO. 17/75/2011-C.L.V], DATED 6-4-2011

In exercise of the powers conferred by clause (b) of sub-section (1) of section 642, read with sub-section (1B) of section 314 of the Companies Act, 1956, the Central Government hereby makes the following rules to amend the Director’s Relatives (Office or Place of Profit) Rules, 2003, namely:-

1. (1) These rules may be called Director’s Relatives (Office or Place of Profit) Amendment Rules, 2011.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Director’s Relatives (Office or Place of Profit) Rules, 2003, (hereinafter referred to as the said rules), in rule 3, for the figures “50,000″, the figures “2,50,000″ shall be substituted.

3. In the said rules, for the figures “50,000″, the figures “2,50,000″ shall be substituted.

4. In the said rules, for rule 7, the following rule shall be substituted, namely:—

The selection and appointment of a relative of a director holding office or place of profit in the company shall be approved by adopting the same procedure applicable to non-relatives :

Provided that, in the case of listed public companies, the selection of director for holding place of office or profit in the company shall have to be also approved by a Selection Committee.

Explanation.- For the purpose of this sub-rule, the expression “Selection Committee” means a committee, the majority of which shall consist of independent directors and an expert in the respective field from outside the company:

Provided that in case of unlisted companies, independent directors are not necessary but outside experts should be there in the Selection Committee:

Provided further that in the case of private companies, independent directors and outside experts are not necessary.

Filing of Balance Sheet and Profit and Loss Account in eXtensible Business Reporting Language( XBRL) mode.

Filing of Balance Sheet and Profit and Loss Account in eXtensible Business Reporting Language( XBRL) mode. Applicable 1.Listed companies and subsidiaries 2.Companies having above 5 crore capital or 100 crore turnover

SEBI tells listed cos to run updated websites from tomorrow

SEBI tells listed cos to run updated websites from tomorrowHaving a website with up-to-date information at any given point of time will become mandatory for all the listed companies with effect from tomorrow -- a move aimed at providing investors with easy access to information. A notification by market regulator Sebi, which makes it mandatory for listed companies to have a functional website with latest details of various investor-sensitive information about them, will come into effect from April 1. The websites would require to have updated information about the company's basic business and financial details, shareholding pattern, corporate governance, contact details, as also information about any agreements with media companies.

NBFC can not to be partner in partnership firms

RBI/2010-11/453 DNBS.PD/ CC.NO. 214 / 03.02.002 /2010-11 March 30, 2011 All NBFCs Dear Sir, NBFCs not to be Partners in Partnership firms It has come to the notice of the Reserve Bank of India that some NBFCs have large investments in / have contributed capital to partnership firms. 2. In view of the risks involved in NBFCs associating themselves with partnership firms, it has been decided to prohibit NBFCs from contributing capital to any partnership firm or to be partners in partnership firms. In cases of existing partnerships, NBFCs may seek early retirement from the partnership firms. 3. Copies of Amending Notifications No. DNBS.227/CGM (US)-2011 and No. DNBS.228/ CGM (US)-2011 dated March 30, 2011 are enclosed for meticulous compliance.

Gist of amendments proposed in the Karnataka State budget to beimplemented from 1st Apr 2011

Gist of amendments proposed in the Karnataka State budget to beimplemented from 1st Apr 2011.1. Karnataka VAT Notification No. FD35 CSL 11Dated: 29th March 2011Karnataka Value Added Tax Act 2003 - Exemption from taxIn exercise of the powers conferred by sub-section ( 1) of section 5of the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004),the Government of Karnataka hereby exempts with effect from the firstday of April, 2011 and during the financial year ending thirty firstday of March, 2012, the tax payable by a dealer under the said Act onthe sale of the following goods, namely,- (1) Paddy and rice. (2) Wheat. (3) Pulses. (4) Flour and suji of rice and wheat. (5) Maida of wheat.By Order and in the name of the Governor of Karnataka,D.R. ShashidharUnder Secretary to Government,Finance Department (C.T.-l).2. Karnataka VAT Notification No. FD35 CSL 11 Dated: 29th March 2011 Karnataka Value Added Tax Act 2003 - Exemption from taxIn exercise of the powers conferred by sub-section (1) of section 5 ofthe Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004),the Government of Karnataka hereby exempts with effect from the firstday of April, 2011, the tax payable by a dealer under the said Act onthe sale of the following goods, namely.- (1) De-oiled rice bran. (2) Coconut, but excluding copra and desiccated coconut powder.By Order and in the name of the Governor of Karnataka,D.R. ShashidharUnder Secretary to Government,Finance Department (C.T.-l).3. Karnataka VAT Notification No. FD35 CSL 11 Dated 29 March 2011Karnataka Value Added Tax Act 2003: Exemption from taxIn exercise of the powers conferred by sub-section (1) of section 5 ofthe Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004),the Government of Karnataka hereby exempts with effect from the firstday of April, 2011, the tax payable by a dealer under the said Act onthe following, namely.- (1)Transfer of right to use 'feature films'. (2)Sale or transfer of right to use copy rights relating to'feature films'.By Order and in the name of the Governor of Karnataka,D.R. ShashidharUnder Secretary to Government,Finance Department (C.T.-l).4. Karnataka VAT Notification No. FD35 CSL 11 Dated 29 March 2011Karnataka Value Added Tax Act 2003 : Reduction in TaxIn exercise of the powers conferred by sub-section (3) of section 4 ofthe Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004),the Government of Karnataka hereby reduces with effect from the firstday of April, 2011, the tax payable by a dealer under the said Act totwo per cent on the following, namely.- (1) sale of, (i) jewellery and articles of gold, silver and other noblemetals whether or not studded with precious or semi-precious stones;and (ii) precious and semi-precious stones. (2) transfer of property in goods involved in the execution ofworks contract of manufacturing or processing and supplying ofjewellery and articles of gold, silver and other noble metals whetheror not studded with precious or semi-precious stones.By Order and in the name of the Governor of Karnataka,D.R. ShashidharUnder Secretary to Government,Finance Department (C.T.-l).5. Karnataka VAT Notification No. FD35 CSL 11 Dated 29 March 2011 [5]Karnataka Value Added Tax Act 2003 - Reduction in TaxIn exercise of the powers conferred by sub-section (3) of section 4 ofthe Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004),the Government of Karnataka hereby reduces with effect from the Firstday of April, 2011, the tax payable by a dealer under the said Act tofive per cent on the sale of following goods, namely,- (1) School bags costing upto five hundred rupees each. (2) Caps. (3) Barbed wire.By Order and in the name of the Governor of Karnataka,D.R. ShashidharUnder Secretary to Government,Finance Department (C.T.-l).

Rule 7: Important ST notification - Accrual Basis payment for specified persons

Effective 1st April 2011, service tax has to be paid on billing basisand not on collection basis. Till date the point of taxation was atthe time of receipt, from April 2011 onwards, the point of taxationwill be the date of Invoice (similar to Excise and VAT), irrespectiveof whether the amount is received or not. The relevant notification isenclosed for your reference. [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,SECTION 3, SUB-SECTION (i)] Government of India Ministry of Finance Department of Revenue New Delhi, 31st March, 2011 Notification No.25/2011 – Service Tax G.S.R. (E).- In exercise of the powers conferred by clause (a) andclause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994(32 of 1994) the Central Government hereby makes the following rulesfurther to amend the Point of Taxation Rules, 2011, namely:- 1. (1) These rules may be called the Point ofTaxation (Amendment) Rules, 2011. (2) They shall come into force on the 1st day of April, 2011. 2. In the Point of Taxation Rules, 2011 (hereinafter referredto as the “said rules”), for rule 3, the following rule shall besubstituted, namely:- “3. Determination of point of taxation.- For the purposes of theserules, unless otherwise provided, ‘point of taxation’ shall be,- (a) the time when the invoice for the service provided or to beprovided is issued: Provided that where the invoice is not issued withinfourteen days of the completion of the provision of the service, thepoint of taxation shall be date of such completion. (b) in a case, where the person providing the service, receives apayment before the time specified in clause (a), the time, when hereceives such payment, to the extent of such payment. Explanation .- For the purpose of this rule, wherever any advance bywhatever name known, is received by the service provider towards theprovision of taxable service, the point of taxation shall be the dateof receipt of each such advance.”. 3. In rule 4 of the said rules,- (i) for the words “change of rate”, wherever they occur, the words“change in effective rate of tax” shall be substituted; (ii) for the words “change of rate of tax” or “change in tax rate” or“change of tax rate”, respectively at both the places where theyoccur, the words “change in effective rate of tax” shall besubstituted; (iii) after sub-clause (iii) of clause (b), the following Explanationshall be inserted, namely:- “Explanation.- For the purposes of this rule, “change in effectiverate of tax” shall include a change in the portion of value on whichtax is payable in terms of a notification issued under the provisionsof Finance Act, 1994 or rules made thereunder.”. 4. For rule 6 of the said rules, the following rule shallbe substituted, namely:- “6. Determination of point of taxation in case of continuous supply ofservice.-Notwithstanding anything contained in rules 3,4 or 8, in caseof continuous supply of service, the `point of taxation’ shall be,- (a) the time when the invoice for the service provided or to beprovided is issued: Provided that where the invoice is not issued withinfourteen days of the completion of the provision of the service, thepoint of taxation shall be date of such completion. (b) in a case, where the person providing the service, receives apayment before the time specified in clause (a), the time, when hereceives such payment, to the extent of such payment. Explanation 1. – For the purpose of this rule, where the provision ofthe whole or part of the service is determined periodically on thecompletion of an event in terms of a contract, which requires theservice receiver to make any payment to service provider, the date ofcompletion of each such event as specified in the contract shall bedeemed to be the date of completion of provision of service. Explanation 2.- For the purpose of this rule, wherever any advance, bywhatever name known, is received by the service provider towards theprovision of taxable service, the point of taxation shall be the dateof receipt of each such advance.”. 5. For rule 7, the following rule shall be substituted, namely:- “7. Determination of point of taxation in case of specified servicesor persons.-Notwithstanding anything contained in these rules, thepoint of taxation in respect of,- (a) the services covered by sub-rule (1) of rule 3 of Export ofServices Rules, 2005; (b) the persons required to pay tax as recipients under the rulesmade in this regard in respect of services notified under sub-section(2) of section 68 of the Finance Act, 1994; (c) individuals or proprietary firms or partnership firms providingtaxable services referred to in sub-clauses (p), (q), (s), (t), (u),(za), (zzzzm) of clause (105) of section 65 of the Finance Act, 1994, shall be the date on which payment is received or made, as the case may be: Provided that in case of services referred to in clause(a), where payment is not received within the period specified by theReserve Bank of India, the point of taxation shall be determined, asif this rule does not exist. Provided further that in case of services referred to inclause (b) where the payment is not made within a period of six monthsof the date of invoice, the point of taxation shall be determined asif this rule does not exist. Provided also that in case of “associatedenterprises”, where the person providing the service is locatedoutside India, the point of taxation shall be the date of credit inthe books of account of the person receiving the service or date ofmaking the payment whichever is earlier. 6. For rule 9, the following rule shall be substituted, namely:- “9. Transitional Provisions.- Nothing contained in this sub-rule shallbe applicable,- (i) where the provision of service is completed; or (ii) where invoices are issued prior to the date on which these rules come into force. Provided that services for which provision iscompleted on or before 30th day of June, 2011 or where the invoicesare issued upto the 30th day of June, 2011, the point of taxationshall, at the option of the taxpayer, be the date on which the paymentis received or made as the case may be.”. [ F.No. 334/3/2011 – TRU] (SAMAR NANDA) Under Secretary to the Government of India Note.- The principal notification No. 18/2011-Service Tax, dated the1st March 2011, published in the Gazette of India, Extraordinary, videnumber G.S.R.175(E), dated the 1st March, 2011.

Now, you can pay income tax at an ATM

DIRECT TAXES01/04/2011

No forms, no queues. Just go to your ATM and pay your income tax. The government on Thursday launched the new facility for tax payment and said it was to begin with open only to Union Bank of India customers but will be extended to other banks. Here's how it will work. The bank's debit cards holders will register on the lender's website. This site is in turn linked to the National Securities Depositories Ltd which will help validate the permanent account number (PAN) of individuals and the Tax Deduction Account Number (TAN) provided to taxpayers.