Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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 :: VAT RATES :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: Central Excise rule to resale the machines to a new company :: empanelment :: VAT Audit
  Advanced Integrated Course on Information Technology and Soft Skills (Advanced ICITSS)-Information Technology Test
 CPE Events 19th March - 24th March 2018
 Advertisement for Invitining Consultants to Work With ICAI Accounting Research Foundation on Research Projects (in Chennai)
 Question Bank on IBBI Limited Insolvency Examination
 Here's how you can fix it Made a mistake while filing tax returns?
 Government Nomination on the Bench II and Bench III of the Disciplinary Committee Bench II and III
 Stringent Action Against Adoption of Unfair Means
 Guidance Note on Audit of Banks 2018 edition issued by the Auditing and Assurance Standards Board
 Assessment Test of the Certificate Course on International Taxation organized by the Committee on International Taxation of ICAI -15th April, 2018 (Sunday)
 Advisory for the Members regarding Allocation of Work among the Joint Auditors in case of Bank Audits
  Group to Study the Amendments Proposed by the High Level Committee set up by the MCA

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 2018 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