Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: due date for vat payment :: form 3cd :: VAT RATES :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT Audit :: TDS :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: empanelment :: cpt
 
 
« News Headlines »
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter
 How will GST impact the Indian economy
 10 days left to file your first GST return. This is how you do it
 What is property tax and how is it calculated…
 File income tax returns in time to carry forward losses
 Missed the deadline to file income tax returns? Here is what you should do
 Who has to report foreign assets in Indian income tax return and how to do it
 How to file income tax return after due date
 Why you should not rely solely on your income tax return filer, chartered accountant when filing ITR

Cap on number of investment cos unlikely
October, 22nd 2007

The Ministry of Corporate Affairs (MCA), which is working on a new revamped Company Law, is unlikely to put a cap on number of investment companies a promoter or corporate house can float.

Official sources said that the new law, expected to be introduced in the winter session of Parliament, is likely to adopt the recommendation of the J J Irani Committee on the issue that no restrictions should be placed.

Instead, a regime for preventing misuse of this mechanism should be devised based on transparent Board processes and disclosures under close supervision of the regulator for listed companies, the committee has suggested.

In its examination of this issue, the committee had also considered the recommendations made by the Joint Parliamentary Committee (JPC) on Stock Market Scam on restricting the layers of subsidiary investment companies.

2001 scam

Armed with the experience gained out of the practice adopted by different players in the stock market scam of 2001, which had brought to the limelight the much abused investment company route for corporate control, the Government had considered restricting the number of investment companies that could be floated, in the Companies (Amendment) Bill, 2003.

At that time it was felt that there was a need to plug-in the loophole that allowed corporate houses to float several investment firms, which facilitated control of the shareholding by the promoters. The Bill has since been withdrawn.

Subsequently, the issue was deliberated by the Irani committee, which in its report noted that the JPC recommendations were in context of the stock market/banking scams witnessed in India over the past decade. In the present situation, when Indian companies were seeking to make investments abroad, such restriction would adversely affect their opportunities in the face of international competition, it had observed.

The intention to bring in any restriction is that it should serve an objective. After due deliberations it was found that putting such caps are not going to serve any purpose. It was felt that protecting legitimate business activity under a regime for setting up subsidiary companies would result in special carve-outs and monitoring the activities of such companies would become an administrative nightmare. For these reasons, the Committee took the view that limiting the layers of subsidiary investment companies was not feasible, sources said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions