IMPLICATION OF BUDGET 2010 ON BUSINESS INCOME..

Tax Rates

Tax rate for firms, LLP and companies remain the

same as per last year's budget.

• However surcharge in the case of domestic

company gets reduced from existing 10% to 7.50%

for the Financial Year 2010-2011.

• Similarly surcharge in the case of dividend

distribution tax and minimum alternate tax gets

reduced to 7.50 %.

MAT

• Minimum Alternate Tax (MAT) rate has been

increased from 15 % to 18 %. Rate of MAT for the

company on the basis of profit will be as under:-

- Book Profit exceeds Rs. 1.00 crore - 19.93%

- Book Profit upto Rs. 1.00 Crore - 18.54%

Deemed Gift

• Taxation of deemed gift has been introduced. If a

company/ firm acquires shares of other unlisted

company for inadequate consideration or without

consideration and aggregate fair market value

exceeds Rs. 50,000/. This provision will apply w.e.f.

1 June 2010.st

Non Residents

• It is proposed to expand the scope of taxation of

non residents.

• If a non resident earns interest , royalty or technical

fees, it will be deemed to accrue or arise in India,

whether or not services are rendered in India or

outside India.

• This amendment is introduced to nullify the impact

of judicial ruling in favour of assesee and is to be

applied retrospectively from FY 1976-77.

• This provision will also have implication in case of

TDS on payment to non resident

Depreciation

• It is proposed that the company and LLP will

apportion the depreciation allowable under the Act

in the ratio of number of days for which assets were

used by them in case of conversion of private

limited or public unlisted company to LLP as per the

amended provisions of Act.

• Further WDV of assets in case of such LLP will be

WDV of assets of company before such conversion.

• LLP can claim the benefit of unabsorbed brought

forward loss and depreciation in case of conversion

of company.

• However MAT credit gets lapsed in the hand of LLP

in case of conversion of company.

Research

• Deduction of amount paid to research association is

proposed to be enhanced to one and three

fourth time of sum paid as against existing of one

and one fourth time of sum paid.

• For specified businesses i.e. pharmaceutical,

chemical computers, who incur expenditure on

scientific research, the weighted deduction to the

extent of two time of the amount spent will be

allowed as against existing one and one half time of

amount spent.

Hotel

• A person will be allowed to claim deduction of

expenditure of capital nature incurred on a new

hotel of two star and above category.

• The expenditure will be allowed in the year in which

hotel commence the operation and entire capital

expenditure incurred prior to commencement of

hotel will be eligible for deduction.

• However the assessee will not be able to claim any

other deduction in any other assessment year.

Capital gain on conversion to LLP

• It is proposed that conversion of private limited or

public unlisted company to limited liability

partnership will not result into transfer and capital

gain on such conversion will not attract tax.

• However this clause is non starter since condition

attached with such exemption is rigorous i.e. sales

of company in preceding three year should not

exceed 60 lacs, partners can not withdraw any

money out of balance of accumulated profit

standing in the accounts on the day of conversion,

partners can not receive any consideration / benefit

directly or indirectly from LLP after conversion

during the existence of LLP etc.,
Tax Audit

• It is proposed to increase the threshold limit for the

requirement of Tax Audit.

• Now Professionals are required to get the tax audit

done if gross receipts exceeds Rs. 15. 00 Lacs and

other business entity requires to get the tax audit

done if turnover exceeds Rs. 60 Lacs.

• However penalty for non compliance of tax audit

provision will attract maximum penalty of Rs. 1.50

Lacs in place of existing penalty of Rs. 1.00 lacs.

Housing Project

• Deduction for housing project approved after

1 April 2005 will be allowed in case project getsst

completed within five year from the end of financial

year in which first approval was granted after

1/4/2005 .

• However commercial area is now restricted to 3%

of total built up area in place of existing 5% of built

up area or 5000 Sq. ft which ever is higher is

specified for claim of deduction u/s 80IB (10) of the

Act.

Valuation of Property

• Now department can refer the valuation of property

for determination of value of gift in case of transfer

of property without consideration or inadequate

consideration to valuation officer during the course

of scrutiny assessment proceeding.

BLOCK DEAL

DEAR FRIENDS AND FOLLOWERS I WOULD LIKE TO TELL U ALL THAT YESTERDAY DAIMLER GROUP HOLDING 5.27% SHARES OF TATA MOTOR HAS SELL OF NEAR ABOUT 2.97 CRORE SHARE IN THE MARKET AND CITI AND TATA SONS BOTH BUY THOSE 2.97 CRORE SHARE FROM DAIMLER GROUP. ITS HAS BEEN SAID THAT THE DAIMLER GROUP HOLD THOSE SHARES FOR PAST 57 YEARS AND NOW THAT PARTNERSHIP HAS BEEN FINISHED. AND THEY SAID TATA BYE BYE TO EACH OTHER. TATA MOTOR 1 OF THE LARGEST AUTOMOBILE COMPANY BY VOLUME .

WOMEN BILL GOT PASSED IN RAJYA SABHA BY 186 IN YES AND 1 IN AGAINST

Prime Minister Manmohan Singh said the historic women's reservation bill set to pass in the Rajya Sabha on Tuesday was "a historic step forward" for the emancipation of the Indian women.

"This is a momentous development in the long journey of empowering our women," he said at the end of a lively debate on the bill that reserves a third of all seats in parliament and state assemblies for women.

"The bill that is going to be passed today is a historic step forward, a giant step forward in strengthening the process of emancipation (of women)," he said, drawing thunderous applause.

Speaking extempore, Manmohan Singh said that despite the many progress achieved by women in India, "we have also to recognise that ... our women have faced enormous difficulties..."

"Our women faced discrimination at home, there is domestic violence, they face discrimination in equal access to education, healthcare, there are all these things. All these things have to end if India were to realise its full potential."

He went on: "What we are going to enact today is a small token of homage to the sacrifices our women have made in nation building, in the freedom struggle, in all other nation building activities."

The prime minister admitted that some members had reservations about the bill.

"They would have liked some recognition of the disabilities of the minorities, the disabilities of backward classes, of Scheduled Castes and Scheduled Tribes.

"I do recall and I do recognise that our minorities have not got adequate share of the fruits of our development. Our government is committed to work sincerely for the empowerment of our minority communities."

He underlined that the proposed legislation was "not an anti-minority bill, it is not an anti-Scheduled Caste bill, anti-Scheduled Tribes bill."

"It is a giant step forward, it is a historical occasion which calls for celebrations."

The prime minister also expressed "deep sorrow" and apologised to Rajya Sabha Chairman Hamid Ansari for the "disrespect shown to you" by MPs ranged against the women's reservation bill.

"I owe you a profound apology for the disrespect shown to you. These things should never have happened. They have happened, and we have to reflect how to we have to streamline our functioning in future so that these things don't take place," he said.

Although he did not name any political party, he was referring to the noisy and unruly protests by members of the Samajwadi Party and Rashtriya Janata Dal in particular, some of whom snatched the bill from Ansari Monday, tore it up and flung the pieces at him.

On Tuesday, a disgusted Ansari suspended seven MPs, who were thrown out of the house by marshals for the debate to begin.

In the same breath, Manmohan Singh acknowledged the role played by "all political parties whose cooperation has made it possible for us to enact this historic legislation".

MERGER AND AQUISITION

THERE ARE SEVERAL MERGERS AND AQUISTION TAKING PLACE IN INDIA INC. THE COMPANY WILL ARE LEADING ARE ESSAR STEEL LIKELY TO TAKE OVER 1 FORIEGN STEEL COMPANY FOR AROUND 500 MILLION US $. THEN WE HAVE TANLA SOLUTION.MORE NAME WILL FOLLOW.

NOT LATEST BUT REAL

THE BIDDING PROCESS HAS BEEN CANCELLED.. AND THE POST WHICH HAS BEEN POSTED YESTERDAY REMAIN AND GOES DOWN IN THE DARK.
FROM THE MOUTH OF LALIT K MODI-

We got letters from many companies saying they wanted to bid. But could not due to 1 billion net worth criteria.

NEW DATE FOR THE FRESH TENDER FOR 2 IPL TEAM ARE

9TH MARCH - SALE AND DITRIBUTION OF FRESH TENDER DOCUMENTS FROM WANKHADE STADIUM OFFICE AT 10.00AM IST
21ST MARCH - SUBMISSION BY 10.AM
21ST MARCH - ANNOUNCING WINNING BID BY AT 11.AM PLACE CHENNAI.


REPLY NEEDED GUYS FOR MOTIVATION..

Aamir Khan Marks Record Breaking Inning Of Rs 35 Cr Ad Deal

May be personal set back must have bogged down Aamir Khan but success seems to be much in his favor. Currently he has hit a jackpot of Rs 35 crore deal for an ad contact. The actor of ’3 Idiots’ fame has signed a contract with a UAE-based telecommunications service provider as their brand ambassador for a cool sum of 35 crore.

He has been listed as the top brand ambassador among the other celebrity figures of Bollywood, surpassing even the icons like Amitabh Bachchan and Shah Rukh Khan by hitting an unbelievable jackpot of Rs 35 crore deal for an ad. Previously, any famous celebrity would not bag an endorsement deal of more than Rs. 15-crore.

This brand endorsement deal with the UAE which the noted actor made is for a two-year contract. According to its term, Aamir will have to make himself available for an allotted number of media shoots, press advertisements and personal appearances.

In reaction to this surprising news the advertisement guru Prahlad Kakkar, who directed Aamir’s first cola commercial stated this is a hell lot of money which the actor had received in comparison to his Rs 17 lakh for Coca Cola ad in 1993.

The plus point about this actor is that Aamir brings a great degree of single-minded exclusivity to a brand, Prahlad added, “That is a hell of a lot of money to pay. He has indeed come a long way. But it isn't surprising; he brings a great degree of single-minded exclusivity to a brand. Associating with Aamir is also a plus for the product in another sense because he is very particular about the script, his own image and the image of the product he endorses.

IPO ALERTS

Incorporated in 1958, NMDC Ltd is a fully Government of India owned public enterprise. NMDC is under the administrative control of the Ministry of Steel, Government of India. NMDC involved in the exploration of wide range of minerals including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands etc.

NMDC is the India's single largest iron ore producer and exporter, presently producing about 30 million tons of iron ore from 3 fully mechanized mines viz., Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State) and Donimalai Iron Ore Mines (Karnataka State) which are awarded ISO 9001-2000 certification. NMDC has the only mechanized diamond mine in the country with a capacity of 1.00 lakh carats / annum at Panna ( Madhya Pradesh State ). Apart from iron ore NMDC is developing Magnesite mine in Jammu and Arki Lime Stone Project in Himachal Pradesh.

In the past, NMDC had developed many mines like Kiriburu, Meghataburu iron ore mines in Bihar , Khetri Copper deposit in Rajasthan, Kudremukh Iron Ore Mine in Karnataka, Phosphate deposit in Mussorie, some of which were later handed over to other companies in public sector and others became independent companies.

Issue Detail:

»» Issue Open: Mar 10, 2010 - Mar 12, 2010
»» Issue Type: 100% Book Built Issue FPO
»» Issue Size: 332,243,200 Equity Shares of Rs. 1
»» Issue Size: Rs. [.] Crore
»» Face Value: Rs. 1 Per Equity Share
»» Issue Price: Rs. - Rs. Per Equity Share
»» Market Lot:
»» Minimum Order Quantity:
»» Listing At: BSE, NSE