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April 27, 2012

Invocation/encumbrance of shares


Pledged shares are collateral for a loan; invoking the shares means the lender transfers the shares to itself when the borrower fails to pay back the loan.
Invoking means that the lender has exercised his right on security and the shares have been actually transferred from the demat a/c of borrowers to the demat account of lenders. To that extent the promoters holding has reduced and lender has the liberty to sell the shares at any time and sue the borrower for balance amount.
If the loan is not repaid, the pledgee, after giving notice to the pledgor as per the terms of the agreement, may instruct its DP to invoke the pledge by submitting the "Pledge Form" with a tick on "Invoke Pledge". On execution of this instruction, the securities are transferred into the pledgee's account. This does not require any confirmation from the pledgor.

As per regulation no. 31 of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011:-
31(1) The promoter of every target company shall disclose details of shares in such target company encumbered by him or by persons acting in concert with him in such form as may be specified.

(2) The promoter of every target company shall disclose details of any invocation of such encumbrance or release of such encumbrance of shares in such form as may be specified.

(3) The disclosures required under sub-regulation (1) and sub-regulation (2) shall be made within seven working days from the creation or invocation or release of encumbrance, as the case may be to,—
(a) every stock exchange where the shares of the target company are listed; and
(b) the target company at its registered office.

April 25, 2012

Interest/ Penalty for delayed deduction/payment of TDS


Interest/ Penalty for delayed deduction/payment of TDS
Particulars
Rate
Period from
Period To
Section
Interest
Failure to deduct tax at source
1% pm
Date of Main payment made
Date of Deduction
201 (1A)
Failure to deposit tax at source
1.5% pm
Date of Deduction
Date of Payment
201 (1A)
Penalty
Failure to deduct in part or full
Equal to tax not deducted
271C




TDS not deducted: 1% + Penalty
TDS not deposited   : 1.5%

Delayed filling of TDS return

Existing section 272A in which a penalty of Rs.100/- per day ( subject to total amount of TDS/TCS for the period) is levied for delayed filing of TDS/TCS returns but this penalty is not mandatory  in nature if the  assesse has reasonable cause for such delay. Further this penalty is also not a prepaid penalty.
But now section 234E has been proposed to be introduced from 1st July, 2012 in which a penalty of Rs. 200 per day (subject to total amount of TDS/TCS for the period) in case of delayed furnishing of TDS/TCS returns. The above section has been introduced to ensure timely filing of TDS /TCS returns for timely processing. It may be noted that this fee is prepaid & mandatory in nature i.e. it is to be paid before filing of delayed TDS/TCS returns.
Another new section 271H has been proposed to be introduced from 1st July, 2012 in which a penalty ranging from Rs. 10000/- to Rs. 100000/- will be imposed for delayed & inaccurate particulars furnished in the TDS/TCS returns like incorrect PAN, amount of TDS deducted, wrong details of TDS deposited etc., hence the tax deductor must be careful now while filing the TDS/TCS returns. But in case of delayed filing of TDS/TCS returns, this provision has given one year time from the due date of filing TDS/TCS returns after depositing the TDS/TCS amount along with interest to avoid this penal provision. There is only one favourable point for the deductor in this section which is that in case he has a reasonable cause for the failure, no penalty under this section can be imposed.

Special Thanks to CA Abhishek Tonsiwal


April 18, 2012

Different Type of Rates



Particulars
Simple Definition
Rate at
Complex Definition
Reverse Repo Rate
The rate at which Bank can deposit with RBI or the rate at which Banks earn from RBI
Normally 1% below Repo Rate
The reverse repo rate is the rate of interest at which the central bank borrows funds from other banks for a short duration. The banks deposit their short term excess funds with the central bank and earn interest on it.
Repo Rate
The rate at which Bank can borrow from RBI.
Changed in accordance with inflation.
This is the rate at which commercial banks borrow money from the central bank for a short period of time by selling their securities or financial assets to the central bank with an agreement to repurchase it at a future date at predetermined price.
Bank Rate
The rate at which Banks can borrow from RBI for without any sale of security.
Normally 1% above Repo Rate
The only way the bank rate is different from the repo rate is that the bank rate is the rate at which banks borrow money from the central bank without any sale of securities. It is generally for a longer period of time.
Cash Reserve Ratio
CRR is the minimum percentage of cash deposits that banks must keep with the central bank.

Structural Liquidity Ratio
This is the percentage of deposits that banks must mandatorily hold in the form of government bonds. SLR bonds are liquid assets that can be sold at a short notice to meet any unexpected demand from depositors.


Marginal Standing Facility: The Reserve Bank of India in its monetary policy for 2011-12 introduced the marginal standing facility under which banks could borrow funds from RBI when there is a considerable shortfall of liquidity. This measure has been introduced by RBI to regulate short-term asset liability mismatches more effectively. But there can’t be unlimited borrowing from RBI under MSF window. Permissible borrowing under MSF rate is capped at 1% or 2% of Bank’s demand and time liabilities. MSF rate is generally equal to Bank rate

Liquidity Adjustment Facility: Under this facility, banks borrow from the central bank by pledging government securities.

April 17, 2012

Service Tax Jurisdiction Around Chandigarh

RANGE CODE
RANGE NAME
RANGE ADDRESS
JURISDICTION
190202
CHANDIGARH - II
CENTRAL REVENUE BUILDING, PLOT 19
SECTOR 17-E


GPO CHANDIGARH
District: CHANDIGARH
State: CHANDIGARH
PINCODE: 160017
Phone(1): 2709957
Phone(2): 2702661
Mobile):
fax(1): 2709957
fax(2):
email: kuldeep3.singh@icegate.gov.in
All units and Registered Dealers falling within the jurisdic
tion of Chandigarh, Industrial Area, Phase-I located to the
East of new Railway Line between NH 22 to Shimla in the North NH 21 to Ambala in the South as well as units falling in the jurisdiction of Chandigarh, Industrial Area, Phase-II to the east of internal Circular Road and in Sector=I to 12 & 26 Chandigarh and Manimajra and all villages falling in the above said areas.

190209
CHANDIGARH - III
CENTRAL REVENUE BUILDING, PLOT NO 19
SECTOR 17-C


GPO SECTOR 17
District: CHANDIGARH
State: CHANDIGARH
PINCODE: 160017
Phone(1): 2701787
Phone(2): 2702661
Mobile):
fax(1): 2709957
fax(2):
email: naveenkalotra@rediffmail.com
All units and Regd. Dealers falling in the jurisdiction of Chandigarh Industrial Area, Phase-II, Chandigarh to the west of the internal Circular Road as well as
in Sector-31 to 56 of Chandigarh i.e.
all Sectors to the south of Dakshin Marg
and all villages falling in the above said areas.

190201
CHANDIGARH-I
CENTRAL REVENUE BUILDING, PLOT NO 19
SECTOR 17-C

CHANDIGARH
GPO SECTOR 17
District: CHANDIGARH
State: CHANDIGARH
PINCODE: 160017
Phone(1): 2710173
Phone(2):
Mobile):
fax(1): 2709957
fax(2):
email: range1chd@rediffmail.com
All units and Registered Dealers falling in the jurisdiction
of Industrial Area Phase-I located between Purav Marg in the West and Railway Line in the East, NH  22 to Shimla in the  North and NH 21 to Ambala in the South a s well as the units  located in the Sectors of Chandigarh falling between Madhya  Marg and Dakshin Marg i.e. Sector-14 to 25 & 27 to 30 and all villages falling in the above said areas.

190203
MOHALI - I
SCF 57 ,
PHASE V

MOHALI
MOHALI
District:
State: PUNJAB
PINCODE: 0
Phone(1): 2272395
Phone(2):
Mobile): 9814853569
fax(1): 2272395
fax(2):
email: kpsingh.cce@gmail.com
All units and Registered Dealers falling in the Industrial Area as well as Residential Areas of Phase VII, VIII-A, VIII-B of Mohali, (Sector 52 and 51, villages Kajehri, Mattaur, Sohana, Daon and Kumbra of Mohali Tehsil.

190204
MOHALI - II
SCO 57,
PHASE V

MOHALI
MOHALI
District:
State: PUNJAB
PINCODE: 0
Phone(1): 2224425
Phone(2):
Mobile):
fax(1):
fax(2):
email: kpsingh.cce@gmail.com
All units and Registered Dealers falling in the Industrial A rea as well as Residential Areas of Phase VI, VIII, IX, X, X
I and Sector 55,56,  and area of Mohali District extending to Jagatpur- Kurali Road.

190205
MOHALI - III
SCF 57, IIND FLOOR,
PHASE V

MOHALI
MOHALI
District: ROPAR
State: PUNJAB
PINCODE: 140001
Phone(1): 01722221975
Phone(2):
Mobile):
fax(1):
fax(2):
email: chandigarh@icegate.gov.in
All units and Registered Dealers falling in the Industrial
Area as well as Residential Areas of Phase-I to V and all industrial as well as residential area of both side of Mohali-Kharar Road and Landran - Kharar road up to the end of Mohali Tehsil.

RANGE CODE
RANGE NAME
RANGE ADDRESS
JURISDICTION
950201
DERABASSI-I
1ST FLOOR
SADASHIV COMPLEX
DERABASSI
MOHALI

District: MOHALI
State: CHANDIGARH
PINCODE: 0
Phone(1): 01762281716
Phone(2):
Mobile):
fax(1): 01762281716
fax(2):
email: excisedb@nic.in
All manufacturers of excisable goods and service tax assessees falling in the area on the left of the Chandigarh-Ambala Highway from Village Pabhat, Zirakpur (starting from Chandigarh border) to DAV H
igh School, Dera Bassi. All registered dealers with their na
mes starting from 'A ' and 'B'.

950202
DERABASSI-II
1ST FLOOR
SADASHIV COMPLEX
DERABASSI


District: MOHALI
State: CHANDIGARH
PINCODE: 0
Phone(1): 01762280228
Phone(2):
Mobile):
fax(1): 01762280228
fax(2):
email: excisedb@nic.in
All manufactures of Excisable goods (including EOUs) and service tax assesses falling in the area on
the left of the Chandigarh - Ambala Highway from D.A.V. High School, Derabassi upto the left side of Haripur Kuran Road (i.e. upto Octroi Post of Derabassi on
Ambala side). All registered dealers with their names starting from 'C' to 'K'.

950203
DERABASSI-III
1ST FLOOR
SADASHIV COMPLEX
DERABASSI


District: MOHALI
State: CHANDIGARH
PINCODE: 0
Phone(1): 01762282428
Phone(2):
Mobile):
fax(1): 01762282428
fax(2):
email: excisedb@nic.in
All manufacturers of Excisable goods (including EOUs) and service tax assesses falling in the area on the left of the Chandigarh - Amabala Highway : area on the
right side of Haripur Kuran Road and the outer boundary of Tehsil Derabassi upto the intersection of Handesara Road,: area on the right side of Handesara Road
upto Chandigarh - Ambala Highway. All re
gistered dealers with their names starting from 'L' to 'R'.

950204
DERABASSI-IV
1ST FLOOR
SADASHIV COMPLEX
DERABASSI


District: MOHALI
State: CHANDIGARH
PINCODE: 0
Phone(1): 01762281715
Phone(2):
Mobile):
fax(1): 01762281715
fax(2):
email: excisedb@nic.in
All manufacturers of Excisable goods (including EOUs) and service tax assesses falling in the area on the right of the Chandigarh - Ambala Highway from vill. Pabhat, Zirakpur (starting from Chandigarh border) upto the Haryana border (Ambala side): Area on the
left of the Chandigarh - Ambala Highway and falling on the right side of Handesara Road upto outer boundary of Tehsil Derabassi. All registered dealers with their names starting from 'S' to 'Z'.