23 May 2009

INCOME TAX
Corporate tax collections fall short of revised estimate
Delhi : The Centre’s corporate tax collections for financial year 2008-09 have fallen short of the revised estimate by about 3.68 per cent. On the other hand, personal income-tax collections are a tad better than the targeted revised estimate. Official data released on Thursday by the Central Board of Direct Taxes (CBDT) showed that corporate tax collections in 2008-09 stood at Rs 2,13,823 crore, lower than the revised estimate of Rs 2,22,000 crore.
I-T opens new window to pull plug on tax evasion
Delhi : The unprecedented accounting fraud at Satyam Computer Services may have sent various government departments in a tizzy. But detecting such accounting scams may become easier for income tax authorities as they plan to use a computer assisted analysis system to scrutinise tax returns for fishy transactions like bogus purchases and missing invoices.

Misc. - Direct Tax
Direct tax collections fail to reach eased target by Rs 6,000 crore
Delhi : In yet another affirmation of the economic slowdown, Centre’s direct tax collections fell short of its target for 2008-09—the first instance in the last five years —with corporate tax collections taking a huge hit.

SERVICE TAX
SEZ developers get service tax relief
Delhi : Special Economic Zone developers now will no longer have to go through the process of claiming refunds on service tax paid on services consumed within the tax free enclaves. However, the services provided by entities outside the zone to units in SEZ will continue to attract 10 per cent service tax even as they will be entitled to claim refund later. "The exemption claimed by the developer or units of SEZ shall be provided by way of refund of service tax paid on the specified services used in relation to the authorised operations in the SEZ except for services consumed wholly within the SEZ," the government said in a notification. Further, the Central Board of Excise and Customs (CBEC) said the developer or unit of an SEZ will maintain proper account of receipt and utilisation of the taxable services for which exemption is claimed.

SEBI
SEBI operationalises fund to protect investors
Maharashtra : After the delay of almost two years, market regulator SEBI has operationalised the fund to protect and spread awareness among investors, including giving help to investor associations in legal matters against listed entities. "There shall be a fund to be called the Investor Protection and Education Fund," regulations notified in official gazette stated here. The fund has been set up with retrospective effect from July 23, 2007. SEBI had, by way of an executive order, created the fund on July 23, 2007 by crediting an initial corpus of Rs 10 crore out of the SEBI General Fund.

RBI
Govt rejects RBI request on PSU auditors
Maharashtra : The government has turned down a proposal of the Reserve Bank of India (RBI) to allow public sector banks to select auditors independently. Last year, RBI had made the proposal to the finance ministry, which forwarded it to the Ministry of Corporate Affairs (MCA), the nodal body for auditors.
RBI roots for easier savings a/c norms
Maharashtra : MUMBAI: The Reserve Bank of India (RBI) has urged the government to tweak the Money Laundering Act (MLA), making it easier for people without access to organised credit to open no-frills or plain savings bank accounts . The regulator has recommended that an affidavit and a photo should suffice for the opening of such accounts.

IRDA
Irda to review bancassurance
Delhi : The Insurance Regulatory and Development Authority (Irda) has constituted a panel to examine the need for the creation of a separate regulation for the bancassurance model. The move comes after requests from various life and general insurance companies to relax the regulatory requirement for banks acting as a bancassurance partner. Among the primary mandates of the committee will be to assess whether multiple bancassurance relationships involving tie-ups with more than one insurance company — each in life and general insurance — can be permitted for banks.
Irda constitutes another panel on intermediation
Maharashtra : Insurance regulator, Irda has formed another committee to relook at the existing regulatory architecture on bancassurance intermediation model and suggest modifications for improving its working.
Misc. Corporate Laws & Other Commercial Policies
Virmani report pitches for labour law reform
Delhi : While the Congress manifesto promises to deepen the revival in India’s manufacturing sector and focus on labour-intensive manufacturing, a research paper by the finance ministry’s chief economic advisor Arvind Virmani says the country’s factory output cannot grow without reforms in archaic and restrictive labour laws.
No place for fresh fiscal stimulus in reforms package
Delhi : No place for fresh fiscal stimulus in reforms package A K Bhattacharya / New Delhi May 22, 2009, 0:12 IST The policy action plan being prepared for the new government does not see the immediate need for a fresh fiscal stimulus package, but recommends a new oil pricing formula and disinvestment of government equity in public sector undertakings in small doses. Also Read Related Stories News Now - Akash Prakash: Why FIIs are buying - PM to visit Russia next month for BRIC Summit - Manmohan defers Prez meet as cabinet pressures mount - Brown congratulates Manmohan Singh - Manmohan to meet Prez at 1030 hrs - Manmohan Singh a very wise leader: Obama More Also Read Related Stories News Now - Upmove continues, Sensex up 198pts - Rise in profit boosts Redington, stock up 11% - Federal Bank slips 8% on profit-taking, FY09 net up 31% - CESC gains 4% on FY09 net rise - NTPC up 2%, FY09 net rises 8% - Manmohan cabinet expansion likely on Tuesday More The action plan is being finalised by the Cabinet Secretariat for presentation to Manmohan Singh after he is sworn in as the prime minister for a fresh term on Friday.

Security Alert: Single agency to monitor voice & data traffic
Delhi : THE new UPA government will soon invest Rs 450 crore to establish a central autonomous agency that will monitor all communication traffic to tighten the country’s security and surveillance setup, and make sure no early warning of terrorist attacks is lost in the medley of agencies currently tracking them. The agency, to be called ‘centralised lawful interception and monitoring system’, will monitor transmission through wireless and fixed lines, satellite, internet, e-mails and voice over internet protocol (VoIP) calls. The ministries of law, defence, home, and communications and IT have already been asked to put it in place as soon as possible. According to officials in the Department of Telecom, a top priority of the new Union cabinet will be to allot Rs 450 crore for this initiative that would be operational by year-end.

Finance & Money Markets
Fund managers plan to top up India shares
Maharashtra : Despite a 2.31% drop in the benchmark BSE on Thursday, most fund managers are moving to top up their India exposure, which presages a strong surge in buying interest. The topping up follows the advent of a stable government to power in New Delhi.

PE firms exit signals good returns even at bad times
Maharashtra : he exits made by major private equity (PE) players such as ChrysCapital and IL&FS Investment Managers Ltd (IIML) from their investments in companies this week, is an indication that such investments are becoming solvent again. The PE industry in India had been in a standstill for the last six months as the downturn in markets forced companies to postpone their initial public offering (IPO) plans indefinitely, which made the exits tough for investors.

Pre-Budget 2009
Finmin, bankers may discuss stimulus package at 12 Jun meet
Maharashtra : The finance ministry has called a meeting with chiefs of select public sector banks on 12 June ahead of the Union budget. No formal communication has been sent to the heads of banks but bureaucrats at North Block on Raisina Hill, New Delhi, that houses the ministry of finance, have already informed chief executives of large banks of the meeting even though the Congress-led United Progressive Allied government is yet to formally assume power and name the next finance minister.

MERGER & ACQUISITION
Sumitomo, Bhushan in talks to build steel plant in West Bengal:
West Bengal : Tokyo: Japan’s Sumitomo Metal Industries Ltd is in talks with India’s Bhushan Steel on building an integrated steel plant together in the West Bengal, the Nikkei business daily reported on Tuesday. Japan’s big steelmakers have been expanding overseas to tap growing demand, although the global economic turmoil has forced world no.2 player Nippon Steel Corp and third-ranked JFE Holdings Inc to delay or review some of these plans.
Ranbaxy acquires skin care, lifestyle range
Maharashtra : Ranbaxy acquires skin care, lifestyle range BS Reporter / Mumbai May 22, 2009, 0:49 IST Ranbaxy Laboratories, the second largest drug company in India in terms of market share after Cipla, has acquired the entire range of skin care and lifestyle products of Ochoa Laboratories, a small to medium sized manufacturer located onthe outskirts of New Delhi. Also Read Related Stories News Now - Ranbaxy looks to rebuild its US business - Ranbaxy launches clinical trials for anti-malaria drug - Denial of patent to Gilead beneficial for Indian firms - Cipla: All`s not well overseas - Early birds signal rough weather - A low risk, high-growth option Also Read Related Stories News Now - Volatile Sensex ends up 150pts; Sterlite slips 4% - Dolphin Offshore soars to upper circuit on Rs 87cr order - Bajaj Auto surges to new lifetime high - Madhucon hits upper limit on Rs 196 cr order - Opto Circuits soars 6% on Brazilian nod - IRB Infra ends up 2% on rise in net profit More.