Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT Audit :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: list of goods taxed at 4% :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: due date for vat payment
 
 
« VAT (Value Added Tax) »
 15% rise in collectionof VAT for Oct-Nov
 China to simplify tax scheme after switch to VAT
 Cabinet clears key proposals on VAT, regularisation of jobs
 Cases of VAT overcharging flood consumer forum
 State seeks relief from Centre
 Flat rate VAT changes for small businesses explained
 Cenvat Credit Of Additional Duties Of Customs [Cvd] On Imported Coal
 Excise Dept puts VAT refund on fast track
 Consumer fora receive 18 VAT plaints
 Appointment of Assistant VATO - F.3(14)/Fin(Rev-I)2012-13/DSVI/334
 Bio-diesel body seeks VAT relaxation

Valuation Professionals Bill: govt plans to form expert panel
November, 01st 2008

The government will soon form an expert panel to work out details of a proposed legislation to regulate the business of corporate valuations, that will complement the Companies Bill, 2008, which was tabled in Parliament last Thursday.

We are forming an expert committee to look into detailed provisions of what the Bill (Valuation Professionals Bill) should contain, said a senior official at the ministry of corporate affairs. It will complement the Companies Bill, 2008, which has laid down the provisions and the need for appointing professional valuers, the official added, asking that he not be named.

The Union government intends to introduce the Valuation Professionals Bill in the next session of Parliament. The Companies Bill provides for a framework to enable fair valuations in companies and, thus, charts a need for professional valuers. Currently, corporate valuation is done by auditors, merchant bankers, company secretaries or chartered accountants. Such valuation is required for initial public offerings, sealing mergers and amalgamations, and for strategic alliances and corporate restructuring.

According to the Companies Bill, independent valuers chartered accountants, cost and works accountants and company secretariesneed to register themselves with the federal government.

Since the Companies Bill has laid down that the appointment of valuers will be made by an audit committee or, in its absence, by a board of directors, a valuer cannot be just a chief executives man and, therefore, will be impartial in valuing the companyd assets or networth and will protect the interest of shareholders, including the minority shareholders, said Preeti Malhotra, former president, Institute of Company Secretaries of India (ICSI).

The ministry official quoted earlier said a concept paper issued last year by the ministry seeking inputs from members of the three professional bodiesICSI, the Institute of Chartered Accountants of India (Icai)) and the Institute of Costs and Works Accountants of Indiadid not generate enough ideas on what the Valuation Professionals Bill should contain. Therefore, the need for forming an expert committee was felt, he said.

Although members of the panel are yet to be finalized, the official said they would be a mix of professionals, ministry officials and experts in company law.

The proposed legislation also seeks to create a council of valuation professionals of India, comprising experts from the three professional institutions, that will oversee all valuation professionals. The council will set standards for valuation professionals, train them, issue qualifying norms for individuals and monitor the professionals.

This will introduce considerable professionalism in the business of valuation as only those qualifying the norms set by the government will be able to practise. Besides, they will be constantly monitored by the government, said Malhotra.
The ministrys concept paper had also suggested that those violating council guidelines be penalized. This included penalties if a valuer disclosed confidential information or was negligent while issuing public statements or while carrying out due diligence.

Icai had earlier resisted the Bill. All professionals dealing with valuation are already well-versed in the subject. I dont understand what is the need for a monitoring body and training for valuers, Sunil Talati, former president, Icai, had earlier told Mint, which reported on the details of the proposed law on 15 May 2007.

Icai now says it will take a call only when the final provisions are spelt out. We will comment only once we have a final look at the draft Bill, said Icai president Ved Jain.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

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