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: list of goods taxed at 4% :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: VAT Audit :: empanelment :: Central Excise rule to resale the machines to a new company :: VAT RATES :: ACCOUNTING STANDARDS :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: form 3cd
 
 
« News Headlines »
 Notification regarding extension of last date w.r.t submission of closing stock by dealer.
 Integrated Goods and Services Tax (IGST) Rules, 2017 (As on 15.11.2017)
 Central Goods and Services Tax (CGST) Rules,2017 (As on 15.11.2017)
  101st Constitution Amendment Act, 2016
 Pr. Commissioner Of Income Tax-6 Vs. Mccain Foods India Pvt. Ltd.
 Section 10 of the Income-tax Act, 1961
 Income tax returns filing: No tax on gift received from relatives in form of cash
 Income tax returns (ITR): Here is why you need to pay higher tax on other incomes
 GST Update On Issuance Of Debit Notes And Credit Notes
 How Mutual Fund Investments Can Help Save Income Tax
 Income tax returns (ITR) filing: Why small service providers need to get this benefit

Cooperative banks to get tax breaks soon
April, 27th 2007

Cooperative banks will soon enjoy the benefit of tax breaks on mergers and acquisitions. Finance minister P Chidambaram, who signalled governments intention to extend tax benefits to these banks at par with other banking companies will introduce the relevant amendments in the finance bill 2007, said a senior government official.

The tax break will be in the form of a set off of the carry forward losses of the amalgamating company with the amalgamated company. The incentive is expected to accelerate the process of voluntary acquisition of weak UCBs by the stronger ones.

There are around 1,830 UCBs in the country, of which around 670 banks are in the Grade III and Grade IV category. Over the last couple of years, around a dozen strong banks such as Sarawat Bank, Cosmos Bank, Sham Rao Vittal Cooperative bank, have been on an acquisition spree. These banks took recourse to this route to expand their network, following RBIs ban to grant fresh branch licenses.

The ban has now been lifted, with the RBI indicating that branch licenses will be given to well managed and financially sound UCBs in states that have signed MoUs, subject to certain norms. Nine state governments including Maharashtra, which has the largest number of UCBs, have signed an MoU with the banking regulator.

We plan to ask RBI to grant one or two branch licenses every year. Strong banks can continue expanding their network through acquisitions and the tax breaks will speed up this process, said All India Federation of Urban Cooperative Banks CEO D Krishna. He reckons that lifting the ban on branch licenses for UCBs will not impact mergers.

Profit making UCBs have been paying income tax from FY06. The government has proposed allowing these banks to claim a tax deduction on the provisions made towards bad and doubtful assets in the finance Bill 2007. The Bill is slated to be considered by Parliament shortly.

Meanwhile, RBI too has announced a few measures this week which would help UCBs improve their performance. The most significant one is the decision to extend the relaxed prudential norms for tier I and tier II banks by one more year (till March 2007).

This means tier I banks, single branch banks and multi-branch banks operating within a single district with deposits up to Rs 100 crore, can classify a loan that is overdue for more than 180 days as a non-performing asset (against the 90 days delinquency norm). The relaxed prudential norms will enable UCBs to make a lower provision for NPAs. This, in turn, will improve their profitability.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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