Newsletter dated 25th May,2015

1. PGC NEWSLETTER 1
PGC
NEWSLETTER
25th
May, 2015
THOUGHT OF THE DAY
“ Success occurs when opportunity meets preparation ...”
ECONOMIC UPDATES
 Reserve Bank of India (RBI) will soon set up a Central Fraud Registry as
part of an early warning system. The idea is to set up a structure for quick
sharing of information about unscrupulous borrowers and help banks fight
bad loans.
 The industry body of mutual fund houses, the Association of Mutual Funds
in India, has advised its members to stop offering the bonus option as part
of their schemes. While fund houses helping institutional investors with
‘bonus stripping’ to avoid taxes is now less common than it used to be,
instances do still crop up occasionally.
SEBI/CORPORATE UPDATES
 According to MCA data, the number of private and public companies
registered in the last financial year (2014-15) has been the lowest in the
past six years. Around 64,000 companies registered in 2014-15 compared
to 98,029 the previous year - a drop of 35 per cent. Companies Act, 2013 -
which came into force from April 1, 2014 - has increased the compliance
requirements for any public or private company. Businesses are concerned
about issues around internal financial controls, mandatory auditor
rotation, and stricter watch over related party transactions.
 Vide Notification issued by MCA dated 18.05.2015, Govt. withdraws old
Indian Accounting Standards notified in 2011.
 IRDA unveils report of expert committee on health insurance.
RBI/TAX LAW UPDATES
 In Idea Cellular Ltd. v. Union of India (2015) 57 taxmann.com
293 (Punjab & Haryana), it was held that Where collection of VAT
from assessee was without authority of law and Service Tax department
had raised service tax demand upon assessee for period for which
Assessing Authority had levied and collected VAT, Assessing Authority was
to be directed to transfer amount of VAT to Service Tax department.
 Overseas investors, soothed by FM Arun Jaitley's bid to reassure them
about the retrospective levy of MAT, got an unexpected jolt at the end of
last week. The Dispute Resolution Panel (DRP) of the income-tax
department sent notices to foreign portfolio investors (FPIs) on Friday,
telling them that the hearing of MAT disputes would start soon.
MARKET UPDATES
SENSEX
27,816.56 -140.94
CNX NIFTY
8,425.65 -33.30
DOLLAR/ RUPEE
63.63 0.11.
MCX SILVER
38,980.00 52.00
MCX GOLD
27,128.00 46.00
MCX CRUDE OIL
3,818.00 5.00
Dow Jones Industrial
average
18,232.02 -53.72
Nasdaq Composite
5,089.36 -1.43
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