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: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: due date for vat payment :: empanelment :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: form 3cd :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: cpt
 
 
ICAI »
 Change in the date of Holiday on the occasion of Milad-Un-Nabi or Id-E-Milad.
 ICAI submits Pre-Budget Memoranda-2017
 Clarification - Fake Audio Clip in circulation under the name of President, ICAI.
 Examination dates of Certificate Course on Forex and Treasury Management conducted by Committee on Financial Markets and Investors Protection on 21st and 22nd January, 2017
  Syllabus for the Limited Insolvency Examination on 31st December, 2016 to become Insolvency Professional
 Extension of last date for submission of application forms for Information Systems Audit-Assessment Test (ISA-AT), upto 10th December 2016.
 Four Weeks Residential Programme to be held from 28th January, 2017 to 24th February, 2017 at Centre of Excellence, Hyderabad for Women Participants only.
 CPE Events 5th December - 10th December 2016
 Here's how your employer can help you save tax
 Introduction of facility for online submission of requests for issue of duplicate mark sheets/pass certificates.
 ICAI invites suggestions on revised Model GST Law

ICAI: Treat corp funding to political parties as expense
January, 27th 2011

Corporate funding to political parties should be treated as expenditure in order to increase transparency in financial statements and curb black money flow, Accounting regulator ICAI has said.

It also added that Companies Bill should incorporate this provision.

"We wish if a company makes contributions (funding) to any political party then it should be treated as an expenditure..It will lead to much more transparency in financial statements and it will also reduce black money," ICAI President Amarjit Chopra said yesterday.

"Let it be more transparent...From where political parties are getting funding (for carrying out their activities)," he observed.

Institute of Chartered Accountants of India is at present entrusted with the task of developing accounting format for political parties by Election Commission of India.

Chopra said the institute will be submitting a final report in this regard to the Election Commission in next ten days.

"We have already submitted our interim report in this regard to the Election Commission and we will submit our final report within next 10  days," he said.

Noting that companies were making financial contribution to election parties in a "clandestine" manner, he suggested certain minimal percentage of total turnover of a company could be allowed as an expense for the purpose of providing funds to political parties.

"Any minimal percentage of total turnover to be contributed (by a company) could be allowed as expenditure," he said.

Throwing light on current practice adopted by corporate for giving funds to political parties, ICAI President disclosed that several companies routed the funds meant for political parties by creating trusts.

"Various companies have created trusts..They make payment to these trusts and through these trusts they are routed (to parties)..Every top industrialist is doing that," he asserted.

"What kind of accounting should be there and what should be the disclosure practices (for political parties)..The purpose behind the task is if there is an election party then governance rules must apply to them more than anyone else," he said.

ICAI has also recommended rotation of auditors for political parties to the Election Commission.

"We have told them (Commission) that rotation of auditors are good for them," he said.

Chopra pointed out that political parties generally do not rotate their auditors, which results in direct conflict of interest.

"The same parliamentarians who sit on standing committee of parliament on finance, which recommends rotation of auditors for companies, are not willing to accept rotation of auditors for election parties--it is very strange," he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

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