Non applicability of Wealth Tax for November 2015 CA Final Exam

Wealth Tax and rules thereunder will not be applicable for NOVEMBER 2015 CA Final Exam of Paper 7 - Direct Tax Laws.

Official Announcement(You will be redirected to icai.org) - 
http://220.227.161.86/37411bos234015.pdf

An Insight into Due Diligence

“Due diligence is an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations” – Wikipedia

Due Diligence in simple terms refers to the careful appraisal of any Business transaction, offer or proposition with utmost care, responsibility and prudence so as to eliminate or avoid any potential harm or discrepancy.

Due Diligence process is commonly performed before an acquiring company initiates the taking over of a target company

It aims at evaluation of a business proposition from all the relevant angles so as to assess the risks involved at the initial stage itself and confirm the existence of conditions and particulars agreed upon beforehand. It is generally outsourced or done by a third party to avoid any hindsight bias.

Audit is an integral part of the Due Diligence framework.

The Due Diligence framework(process) can be divided into the following areas -

Punishment for failure to distribute dividends under Companies Act, 2013 in light of provisions under the erstwhile Act

Retention by company of dividend beyond 30 days from the date its distribution is due attracted punishment under Sec. 207 of the erstwhile Companies Act,1956;

MCA notified 98 Sections of the Companies Act, 2013 on 12th September,2013 which came into force with immediate effect.

These notified sections included Sec. 127 also which has replaced Sec 207 of the erstwhile act and deals with punishment for failure to distribute dividends. It is worthwhile to mention here that “Dividend” includes Interim Dividend also(as was also the case in erstwhile act).

Though largely the spirit of the current provisions are in line to previous act’s provisions, here are some significant differences :

• Earlier the Director(s) if found to be knowingly a party to the default, were liable for imprisonment extending up to 3 years, this tenure of imprisonment has been reduced to 2 years under Sec 127 of CA,2013
• In sec. 207 of the companies act, 1956, in the “exceptions under which no offence was deemed to have been committed” was included the following situation :

where a shareholder has given directions to the company regarding the payment of the dividend and those directions cannot be complied with;

In Sec. 127 of the Companies Act,2013; the exceptions part includes the following :

where a shareholder has given directions to the company regarding the payment of the dividend and those directions cannot be complied with & THE SAME HAS BEEN COMMUNICATED TO HIM;

Hence, We can clearly identify that the words “& THE SAME HAS BEEN COMMUNICATED TO HIM” have been appended to the text of previous provision. The gravity of this addition is that now, if the directions given by the shareholder can’t be complied with and this is the reason why there will be a delay beyond 30 days to distribute dividend with respect to his shares, this fact will have to be communicated to him to avoid the punishment. The earlier fiction that provided that if the directions can’t be complied with, no offence shall be deemed to have been committed has been done away with now, a communication of such facts is now mandatory.

• Companies Act, 2013 expressly permits electronic payment for dividends

For the ease of reference, the current provisions u/s 127 of the Companies Act, 2013 are produced below:

Where a dividend has been declared by a company but has not been paid or the
warrant in respect thereof has not been posted within thirty days from the date of declaration
to any shareholder entitled to the payment of the dividend, every director of the company
shall, if he is knowingly a party to the default, be punishable with imprisonment which may
extend to two years and with fine which shall not be less than one thousand rupees for every
day during which such default continues and the company shall be liable to pay simple
interest at the rate of eighteen per cent. per annum during the period for which such default
continues:
Provided that no offence under this section shall be deemed to have been
committed:—
(a) where the dividend could not be paid by reason of the operation of any law;
(b) where a shareholder has given directions to the company regarding the
payment of the dividend and those directions cannot be complied with and the same
has been communicated to him;
(c) where there is a dispute regarding the right to receive the dividend;
(d) where the dividend has been lawfully adjusted by the company against any
sum due to it from the shareholder; or
(e) where, for any other reason, the failure to pay the dividend or to post the
warrant within the period under this section was not due to any default on the part of
the company.

Balance Sheet – Revised Schedule VI - Format

  

Wealth Tax : Dates to be remembered in case of Deemed Assets

• If any asset is transferred to spouse during any previous year related to assessment year 1964-65 to 1971-72, then, it will not be treated as deemed assets of the transferor. This period will also apply if assets transferred to any person or association for the benefits of the spouse
• If any asset is transferred to daughter in law (i.e, son’s wife) before 1st of June, 1973 or transferred to any person or association for benefit of daughter in law before this date, then, it will not be treated as deemed assets of the transferor
• If any member of HUF has converted his own assets as assets of HUF before 1st January, 1970; then, it will not be treated as deemed asset of member who has converted such assets as assets of HUF

EXAM ALERT : Exams on 4th and 5th May,2013 postponed for some centers in Karnataka

Papers Postponed -

Group – 1, Paper 2, Strategic Financial Management

{Final Examination}

&,

Group – 1, Paper – 2, Business Laws, Ethics and Communications

{Intermediate/Integrated Professional Competence}

 

Centers Affected -

Bangalore, Belgaum, Bellary, Hubli, Mangalore, Mysore and Udupi

centre(s)

{For other cities scheduled is unchanged}

 

Dates on which postponed exams are

Re-scheduled -

18th May and 17th May 2013

 

Click

HERE

to read the concerned Notification dated 25th March, 2013

CA Final November 2012 Question Papers (Group 1) - Download

Financial Reporting  

  Strategic Financial Management 

 

Advanced Auditing & Professional Ethics

Corporate & Allied Laws

        

                                                   

RTP : CA Final November 2012 – Download Links

GROUP – 1

Financial Reporting

Strategic Financial Management

Advanced Auditing & Professional Ethics

Corporate & Allied Laws

 

GROUP – 2

Advanced Management Accounting

Information Systems Control & Audit

Direct Tax Laws

Indirect Tax Laws

Important Announcement: Non-applicability of taxable services in PCE-Paper 5: Taxation, IPCE-Paper 4: Taxation and Final-Paper 8: Indirect Tax Laws for November, 2012 examinations

Read it HERE on BOS Portal of ICAI

CARO 2003 Audit Notes in Hindi - कंपनी अंकेक्षक प्रतिवेदन आदेश - 2003

कंपनी अंकेक्षक प्रतिवेदन आदेश – 2003

 

गूगल डॉक्स पर पढने के लिए कृपया यहाँ क्लिक करें

Membership of Company - A Handbook

Membership of Company - A HandBook CA4ALL

Download from Google Drive -

Click Here

Or, enter in address bar:

 https://docs.google.com/open?id=0B4t5fcrTlPOCWkJJa2hQOWFCMW8

Slideshare Link -
Click Here
Or, enter in address bar:

http://www.slideshare.net/CA4ALL/membership-of-companya-handbook

Definition Of Member as per Companies Act,1956

Definition of member — Section 41 Companies Act,1956

All the subscribers of the Memorandum of Association shall be deemed to have agreed to become members of the company and on registration of a company shall be entered as members in the Register of members

Section 41 deals with definition of member which provide as under:—

• The subscribers of the Memorandum of a company shall be deemed to have agreed to become members of the company, and on its registration, shall be entered as members in its register of members
  
• Every other person who agrees in writing to become a member of a company and whose name is entered in its register of members, shall be a member of the company
  
• Every person holding equity share capital of a company and whose name is entered as beneficial owner in the records of the depository shall be deemed to be a member of the concerned company

Bullwhip/Whiplash Effect & The Factors Contributing to Bullwhip Effect

A Phenomenon in forecast driven distribution channels/ A problem in forecast driven supply chains.

In periods of rising demand, down stream participants will increase their orders. In periods of falling demand, orders will fall or stop in order to reduce inventory.

The effect is that; variations are amplified the farther one gets from the end-consumers.

Factors Contributing To Bullwhip Effect -

CA Final May 12 Indirect Tax Question Paper

CA Final May 12 IDT

CA Final May 12 Direct Tax Question Paper

CA Final May 12 DT

CA Final May 12 ISCA Question Paper

ISCA May 12 Question Paper 

CA Final May 2012 Advanced Management Accounting Question Paper

AMA May 12 Question Paper

CA Final May 2012 Question Papers Group 1

GROUP 1

Paper 1: Financial Reporting

Download

Paper 2: Strategic Financial Management

Download

Paper 3: Advanced Auditing & Professional Ethics

Download

Paper 4: Corporate & Allied Laws

Download

In News : 300 candidates clear CA Final after Retotaling

Check this news by following this link (Original Article on Times Of India)

http://articles.timesofindia.indiatimes.com/2012-05-16/chennai/31725898_1_lakh-students-lecturer-final-exams

Courtsey : http://timesofindia.indiatimes.com/

Conditions for being assessed as HUF

The following can be regarded as the two main conditions which are required to be complied with for being assessed as a Hindu Undivided Family(HUF) -

1. There should be coparceners
2. There should be any common property of the family

Here, “coparceners” refers to two or more individuals inheriting any property together, or in other words two or more people who are co-heirs, and have rights on the property that they inherit