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Accounting Policy


1. Basis for preparation of financial statements

 The financial statements are prepared under historical cost convention,

on accrual basis, in accordance with the generally accepted accounting

principles in India and to comply with the Accounting Standards

prescribed in the Companies (Accounting Standards) Rules, 2006 issued

by the Central Government in exercise of the power conferred under

sub-section (1) (a) of Section 642 and the relevant provisions of the

Companies Act, 1956 (the Act).


2. Use of Estimates

The preparation of the financial statements in conformity with

generally accepted accounting principles requires management to make

estimates and assumptions that affect the reported amounts of assets

and liabilities and disclosure of contingent liabilities on the date of

the financial statements and the results of operations during the

reporting periods. Although these estimates are based upon management''s

best knowledge of current events and actions, actual results could

differ from those estimates and revisions, if any, are recognized in

the current and future periods.

3. Fixed Assets and Depreciation/Amortisation

(i) Fixed assets are stated at cost less accumulated

depreciation/amortisation. Cost comprises the purchase price and any

attributable cost of bringing the asset to its working condition for

its intended use.

(ii) Fixed assets under construction, advances paid towards acquisition

of fixed assets and cost of assets not ready for use as at the year-

end, are disclosed as capital work-in- progress.

(iii) Expenses incurred relating to project prior to commencement of

commercial production are classified as Pre-operative expenses pending

allocation and are disclosed under Capital work in progress (net of

income earned during the project development stage).

(iv) Depreciation on fixed assets is provided on straightline method

(except intangible assets which are amortised over the period of three

years) on pro rata basis from the date of addition at the rates and in

the manner prescribed in Schedule XIV to the Companies Act, 1956 which

are as under:


Asset category Rate of Depreciation/

Amortization

Computers 16.21% p.a.

Office equipments 4.75% p.a.

Furniture and

fixtures 6.33% p.a.

Vehicles 9.50% p.a.

Building 1.63% p.a.

Leasehold
 
improvements Over the period of lease

or estimated useful life,

if shorter

Assets costing Rs. 5,000 or less are individually depreciated at the

rate of one hundred percent.

4. Revenue Recognition

Interest income

Income from interest is accounted for on time proportion basis taking

into account the amount outstanding and the applicable rate of

interest.

5. Taxation

Provision for tax comprises current income tax and deferred tax.

Current income tax is determined in respect of taxable income with

deferred tax being determined as the tax effect of timing differences

representing the difference between taxable income and accounting

income that originate in one period, and are capable of reversal in one

or more subsequent period(s). Such deferred tax is quantified using

rates and laws enacted or substantively enacted as at the end of the

financial year.

6. Foreign Currency Transactions

Transactions in foreign currency and non monetary assets are accounted

for at the exchange rate prevailing on the date of the transaction. All

monetary items denominated in foreign currency are converted at the

year end exchange rate. The exchange differences arising on such

conversion and on settlement of the transactions are recognized in the

Pre-operative expenses pending allocation account.

7. Employee Benefits

Expenses and liabilities in respect of employee benefits are recorded

in accordance with Revised Accounting Standard 15 - Employee Benefits

(Revised 2005)

i) Gratuity

Gratuity is a post employment benefit and is in the nature of a defined

benefit plan. The liability recognized in the balance sheet in respect

of gratuity is the present value of the defined benefit obligation at

the balance sheet date, together with adjustments for unrecognized

actuarial gains or losses and past service costs. The defined benefit

obligation is calculated at or near the balance sheet date by an

independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in

actuarial assumptions are charged or credited to the Pre-operative

expenses pending allocation account in the year in which such gains or

losses are determined.

ii) Provident Fund

The Company makes contribution to statutory provident fund in

accordance with Employees Provident Fund and Miscellaneous Provision

Act, 1952 which is a defined contribution plan and contribution payable

is recognized as an expense in the period in which services are

rendered by the employee.

iii) Compensated Absences

Liability in respect of compensated absences becoming due or expected

to be availed within one year from the balance sheet date is recognized

on the basis of undiscounted value of estimated amount required to be

paid or estimated value of benefit expected to be availed by the

employees. Liability in respect of compensated absences becoming due or

expected to be availed more than one year after the balance sheet date

is estimated on the basis of an actuarial valuation performed by an

independent actuary using the projected unit credit method.

iv) Other short term benefits
 
Expense in respect of other short term benefits is recognized on the

basis of the amount payable for the period during which services are

rendered by the employee.

8. Leases

Leases of assets under which significant risks and rewards of ownership

are effectively retained by the lessor are classified as operating

leases. Lease payments under an operating lease are recognized as

expense in the Pre-operative expenses pending allocation account on a

straight line basis over the lease term.

9. Impairment of Assets

The Company assesses at each balance sheet date whether there is any

indication that an asset may be impaired. If any such indication

exists, the Company estimates the recoverable amount of the asset. If

such recoverable amount of the asset or the recoverable amount of the

cash generating unit to which the asset belongs is less than its

carrying amount, the carrying amount is reduced to its recoverable

amount and the reduction is treated as an impairment loss and is

recognized in the Profit and Loss Account. If at the balance sheet date

there is an indication that a previously assessed impairment loss no

longer exists, the recoverable amount is reassessed and the asset is

reflected at the recoverable amount subject to a maximum of depreciated

historical cost.

10. Contingent Liabilities and Provisions
 
Depending upon the facts of each case and after due evaluation of legal

aspects, claims against the Company not acknowledged as debts are

treated as contingent liabilities. In respect of statutory dues

disputed and contested by the Company, contingent liabilities are

provided for and disclosed as per original demand without taking into

account any interest or penalty that may accrue thereafter. The Company

makes a provision when there is a present obligation as a result of a

past event where the outflow of economic resources is probable and a

reliable estimate of the amount of obligation can be made. Possible

future or present obligations that may but will probably not require

outflow of resources or where the same cannot be reliably estimated,

have been disclosed as a contingent liability in the financial

statements.

11. Miscellaneous Expenditure

Miscellaneous expenditure on account of increase in share capital and

other related expenses are written off over a period of 5 years from

the date of commencement of commercial production. Any reimbursements

received from the depository are credited to Miscellaneous

expenditure in the year such reimbursement is received.

12. Borrowing Costs

Borrowing costs that are attributable to the acquisition or

construction of qualifying assets are capitalised as part of the cost

of such assets. A qualifying asset is one that necessarily takes a

substantial period of time to get ready for its intended use. All other

borrowing costs are charged to the profit and loss account as incurred

13. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or

loss for the period attributable to equity shareholders by the weighted

average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net

profit or loss for the period attributable to equity shareholders and

the weighted average number of shares outstanding during the period are

adjusted for the effects of dilutive potential equity shares.

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Compliance Under Service Tax - 2012-13 - Bank Audit


The compliance under service tax provisions post Finance Bill 2012 may need clarity on 3 aspects which are discussed as under
Small Service Provider Exemption
The basic exemption is available to the CA whose taxable services in 2011-12 did [does] not exceed Rs.10 lakhs. Such CA would not be liable to service tax for services provided in 2012-13 upto a value of Rs. 10 Lakhs. Once the limit is exceeded then they would be liable for the incremental services beyond Rs. 10 Lakhs.
Therefore if eligible for the exemption, no need to charge any service tax for the bank audit
II. Date of Billing
The Bank audit could have commenced in March 2012, however the completion of the services would be in April/ May 2012. Since the completion of service is important, as per the Point of Taxation Rules {POTR} the rate of service tax would be: Basic- 12% EC- 0.24 SHEC- 0.12- Total 12.36%.
This is so because we do not receive any advance and billing prior to provision of service would not change the rate.
III. Date of payment
The date of payment would be irrelevant this year as the rate of 12% is effective for the year and changes if any are only expected to be in Budget 2013.
This is for general guidance of members, however, members may take their independent and correct view regarding chargeability of service tax.

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How to File Revised Tax Return Online


If an individual has already filed the income tax return and subsequently discover any omission or wrong statement therein, he can re-file the return with necessary modification. This re-filing of the income tax return is referred to as Revised Return. The process for revising the return is very simple. Please remember that the process outlined below is applicable if you had filed the original return online.

Rules related to Revised Return

Revised return can be filed for any previous year at any time before the expiry of 1 year from the end of the relevant assessment year or before completion of the assessment whichever is earlier. For this financial year (2010-11), you can file the revised return till March 31st, 2012

However, if the income tax department completes the assessment of your return earlier, then a revised return cannot be filed.

Revised return can be filed only if the original return was filed before due date. Thus if a return is filed after a due date then it cannot be revised

A loss return filed within time can also be revised and in such case loss as per the revised is carried forward

One should have acknowledgement number and date of filing the original return in order to file a revised return

Return filed in response to the notice u/s 148 can also be revised. It should be noted that notice u/s 148 is issued in respect of the escaped income in the respective assessment year

In case of concealment of income and furnishing of inaccurate information in income tax return an individual will be penalized

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NRI (non-resident indian)


Tax saving options for NRIs:-


When it comes to NRIs they do not have as much tax saving options open to them as the Resident Indians do. Here we show you the list of tax saving options available for NRIs and how NRIs can make maximum profit from them:
  
1. Section 80C - From the various tax saving avenues available to Indian tax savers –
  
(i) ELSS (Tax saving Equity Mutual Fund schemes) – ELSS are equity-oriented mutual fund schemes that invest in a diversified portfolio of Indian stocks. ELSS schemes can be purchased online and come with a lock-in period of 3 years. They are ideal for long-term tax-free savings.

(ii) House property – Buying a house property in India is a good investment if you plan to come back in the future. The principal and interest payments made every year for a home loan availed in India are allowed as deductions subject to an overall limit of Rs 1 lakh per year on principal payments (under section 80C) and full interest payments made during the year (under section 24b) - in case of let-out property.
             
(iii) Life Insurance and Pension Plans – There are many life insurance and retirement/pension plans of Insurers that can be bought by an NRI. You can buy retirement plan with or without life cover and also choose between a traditional plan (endowment, money-back) and a unit-linked plan depending upon your risk appetite. Point to note is that the policies are issued in Indian Rupees only. There is also a facility available with few insurers like LIC for NRIs to obtain insurance cover from their present country of residence where all formalities are completed in their present country of residence, subject to fulfilment of certain rules and restrictions on sum insured amounts and add-on riders.
           
2. Section 80D - [Health insurance premium payment] -
NRIs can purchase health insurance policy in India for themselves, their family and also dependant parents and claim deduction for the premium paid up to Rs 35,000 per annum [Rs 15,000 in case of non-senior citizens and Rs 20,000 for senior citizens];
          
3. Other Deductions u/s 80 –
(i) Deduction under 80G - for specified donations;
(ii) Deduction under 80E – for interest payment towards Educational loan taken from any bank/approved financial institution for higher studies (comprising full time as well as vocational studies pursued after passing senior secondary examinations studies) for self or any of immediate family members (children, spouse)
           
Investments not available for NRIs – PPF (Public Provident Fund), NSC (National Savings Certificate), SCSS (Senior citizens savings account), tax saving infrastructure bonds under section 80CCF and POTD (Post office time deposits) are not available for NRIs. However, if you had already opened any of these accounts when you were a Resident Indian, you can continue to service the account(s) till maturity.
The overall limit on section 80C, 80CCC is Rs 1 lakh per annum.
            

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RBI has made special Arrangement to Deposit TAX Payments on 30, 31 March 2012


Due to rush hour ReserveBank of India has made special arrangement to deposit Tax Payment on 30, 31 March 2012 at Mumbai and Navi Mumbai Offices except normal working time Hours.  RBI further instructed to all BankAgencies i.e. State Bankof India and theirAssociates, Public SectorBanks as well as designated private sectorbank to receive all types of taxes beyond Normal working hours. Thus the All Taxpayers are requested to take advantage of these facilities provided for the financial year ending March 31, 2012 and assessment year 2012-13 as per Press Release : 2011-2012/1551. Schedule of Tax Deposit is as below:


Date
Office
Cash DepositTimings
Cheque Deposit Timings
March 30.2012
Fort Mumbai
10.00 AM to 4.00 PM
10.00 AM to 5.00 PM
March 30.2012
Navi Mumbai Belapur
10.00 AM to 4.00 PM
10.00 AM to 4.00 PM
March 31,2012
Fort Mumbai
10.00 AM to 4.00 PM
10.00 AM to 5.30 PM
March 31,2012
Navi Mumbai Belapur
10.00 AM to 4.00 PM
10.00 AM to 4.00 PM

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Calculate your tax liability based on your taxable income.


After Budget-12, the Income Tax Department has published Online Tax Calculation Software on their portal.  This calculator calculate Tax liablity which is based on your Taxable Income of Fin. Year 2012-13 i.e. Assessment year 2013-14.  Simple procedure to calculate tax with this calculator. 
 For Example – If you earn annually Rs. 800000/- (Gross Income),
deduct from Gross Income your 10 (i)
Deductions then Less/Add your House Property Income under section 24.
After these Deductions add your Other source of Incomeand then Less deduction under chapter VIA.
After all you get Taxable Income.  This Taxable Income Put on Tax Calculator and follow the procedute. 
You will get Tax Liability for Assessment Year 2013-14.

Click Here to Calculate your Tax Liability for Assessment year 2013-14.

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Income tax india

Income Tax Department facilitates a PAN holder to view its Tax Credit Statement (Form 26AS) online. Form 26AS contains
  • Details of tax deducted on behalf of the taxpayer by deductors
  • Details of tax collected on behalf of the taxpayer by collectors
  • Advance tax/self assessment tax/regular assessment tax, etc. deposited by the taxpayers (PAN holders)
  • Details of paid refund received during the financial year
  • Details of the High value Transactions in respect of shares, mutual fund etc.
The Tax Credit Statement (Form 26AS) are generated wherein valid PAN has been reported in the TDS statements.
Tax Credits Statement (Form 26AS) can be viewed/accessed through 3 ways :
1. View Tax Credit from https://incometaxindiaefiling.gov.in
Taxpayers who are registered at the above potal viz. https://incometaxindiaefiling.gov.in can view 26AS by clicking on 'View Tax Credit Statement (From 26AS)' in "My Account". The facility is available free of cost. 

For "New Registration", Click on 'Register' on the portal. The registration process is user-friendly and takes minimal time. View Demo2. View Tax Credit (Form 26AS) from bank site through net banking facility
The facility is available to a PAN holder having net banking account with any of authorized banks. View of Tax Credit Statement (Form 26AS) is available only if the PAN is mapped to that particular account. The facility is available for free of cost. View Demo
List of banks registered with NSDL for providing view of Tax Credit Statement (Form 26AS) are as below
      1. Axis Bank Limited 
      2. Bank of India 
      3. Bank of Maharashtra
      4. Citibank N.A.
      5. Corporation Bank
      6. ICICI Bank Limited
      7. IDBI Bank Limited
      8. Indian Overseas Bank
      9. Indian Bank
      10. Kotak Mahindra Bank Limited 
      11. Oriental Bank of Commerce
      12. State Bank of India
      13. State Bank of Mysore
      14. State Bank of Travancore
      15. The Federal Bank Limited
      16. UCO Bank
      17. Union Bank of India
      18. Bank of Baroda
      19. Karnataka Bank
      20. The Saraswat Co-operative Bank Limited
      21. City Union Bank Limited
      22. State Bank of Patiala
3. View Tax Credit (Form 26AS) from TIN website
The facility is available to PANs that are registered with Tax Information Network for view of 26AS statement. The PAN holder has to fill up an online Registration form for such purpose. Thereafter, verification of PAN holder's identity is done by the TIN-Facilitation Centre personnel either at PAN holder's address or at the TIN-facilitation center that has been chosen by the PAN holder. The verification involves a cost at prescribed rates. Once authorised, the PAN holder can view Tax Credit Statement online.

RATE INDIA BUDGET 2012-13

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