31st May 2009

INCOME TAX
Depreciation on intangibles in M&A - a case to re-look Article
Delhi : With India Inc actively pursuing mergers and acquisitions route for their expansions, and valuations reaching dizzying heights, the consequent availability of tax deductions on goodwill and other intangible assets has become a sore point. The income-tax law way back in 2000 had made considerable amendments dealing with business reorganisations which made `M&A` tax neutral, however, scope of some of these provisions need to be revisited especially the issue of depreciation on cost of intangibles, since it has a significant tax impact .

CUSTOMS
Ministerspeak lifts steel stocks
Maharashtra : Mr Virbhadra Singh, the new Steel Minister, said the ministry will consider additional import tax on steel to protect the domestic industries from cheap imports on an urgent basis.“An immediate key challenge is the disparity between Indian and global steel prices, consequent to the recent economic slowdown,” the Steel Minister said.

VALUE ADDED TAX
Tax signals crisscross broadcasting Article
Delhi : Consider these examples of cascading effect of indirect taxation: A television channel company acquires satellite rights of a blockbuster movie from an Indian company, such rights being in the nature of ‘copyright’, would attract Central Sales Tax (CST) / State VAT (value added tax).

COMPANY LAW
Investor interest priority: Khursheed
Delhi : Minister of state for corporate affairs (independent charge) Salman Khursheed said the government will protect small investors byensuring transparency in the working of the corporate sector. “Our concern will be the aam aadmi. The priority for the government is to give protection to every investor.

IRDA
IRDA wants private cos to have a whistle-blower policy
Maharashtra : Private insurers will have to put in place a “whistle-blower” policy, allowing employees to raise concerns internally on possible irregularities in financial reporting and governance weaknesses. In a draft of its first comprehensive norms on corporate governance, insurance regulator IRDA has proposed prompt action against insurance companies that do not follow these norms aimed at protecting policyholders’ interest.

Banking Regulation
Reserves see biggest growth in a year
Maharashtra : Foreign exchange reserves have recorded their highest growth in more than a year in the week, following the general election results, reports Our Bureau in Mumbai. Investment by foreign institutions in the stock market and an increase in the value of non-dollar assets have helped push up the value of forex reserves.
Moody`s puts 13 Indian banks on watch
Maharashtra : Rating agency Moody`s has placed 13 Indian banks, including State Bank of India [Get Quote], ICICI Bank [Get Quote] and Punjab National Bank [Get Quote], on watch for possible downgrade under a global review of systemic support available for the banking sector.Others banks under review are Bank of Baroda Get Quote, Bank of India,

Misc. Corporate Laws & Other Commercial Policies
A Raja calls for cheaper rates, early auctions
Delhi : My first priority is to have early auctions for both 3G and WiMAX spectrums. We will see that it happens within the first three months. I will work hard towards reduction of STD and local tariffs. With so many new players, there is enough competition in the market to bring down tariffs. The new government has set a target of bringing down STD tariffs to 25 paise/minute and local call rates to 10 paise/minute in two years.I will soon be meeting BSNL trade unions over this issue.
Deora cooking new gas scheme for rural poor
Delhi : Petroleum minister Murli Deora had signed off from his Shastri Bhawan office earlier this month as a satisfied man. Besides reining in fuel prices and acquiring oil assets abroad, he ensured that gas production started at the Krishna-Godavari basin within a reasonable timeframe, despite several hurdles. On Friday, when he resumed office for another term, he was greeted with the news that oil production from the country’s largest reserves in Rajasthan is awaiting his green signal.
Jaiswal mulls price hike to fire up coal
Delhi : In a move that could trigger demand for increasing electricity tariff, coal minister Sriprakash Jaiswal said the government may consider increasing the price of coal depending on the economic situation. Any decision in this regard would, however, be taken after concurrence with the Prime Minister.
Sharma gets ready to tackle slowdown, won’t review FDI norms
Delhi : Commerce and industry minister Anand Sharma said his ministry would look at the possibility of more incentives for the industrial and export sectors that are battling with economic slowdown and would hold discussions with the finance ministry on suitable measures to be taken in the next budget.The minister said while India was expected to maintain its exports of $164 billion in the current fiscal,

Finance & Money Markets
Consider Mistry, Rajan reports: Govt to financial markets panel
Maharashtra : The High-Level Coordination Committee (HLCC) on Financial Markets is meeting tomorrow to chart a road map for the government’s reforms agenda for the sector.The government has already sent a note to HLCC members highlighting recommendations by committees led by Percy Mistry