11Jul
Budget Excise

Central Excise – Tariff (Notifications and Amendments)

G.S.R. (E). – In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendmentsin the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 1/2011- Central Excise, dated the 1st March, 2011 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide G.S.R. 116(E), dated the 1st March, 2011, namely:

The following amendments are made in the previous notification dated 1st March, 2011 (which stated that the goods therein were exempted from excise duty as is in excess of the amount calculated at the rate of 1% ad valorem) in the following -

  1. Gloves specially designed for use in sports is INSERTED (in S.No. 51A).
  2. Writing or printing paper for printing of educational textbooks is OMITTED (in S.No. 63).
  3. Polyester staple fibre or polyester filament yarn manufactured from plastic scrap or plastic waste including waste polyethylene terephthalate bottles is INSERTED (in S.No. 70A).
  4. Attachable to the body word is added to “Sewing machines other than those with inbuilt motors” (in S.No. 97).
  5. Recorded smart cards is OMITTED (in S.No 104).

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25Jun
Customs - Basic Concepts

Basic Concepts of Customs

Date for Determination of Rate of Custom Duty

  • Goods entered for home consumption u/s 46 consumption – date of presentation of BOE/Entry Inwards, later one.
  • Goods cleared from warehouse u/s 68 – date of presentation of ex-bond BOE for home consumption.

Note – For exports, rate is determined as on date on which proper officer makes an order permitting clearance and loading of the goods for exportation u/s 51.

EC and SHEC is not levied on exports. Read More »

6May
securitization

Securitization

DEFINITION

Securitization is the financial practice of POOLING various types of contractual debt such as

  1. Residential mortgages,
  2. Commercial mortgages,
  3. Auto loans or
  4. Credit card debt obligations

and selling said consolidated debt as bonds, pass-through securities, or collateralized mortgage obligation (CMOs), to various investors.

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5Jan
Satyam

Satyam 9000 Crore Scandal

The biggest corporate scandal in India, Satyam Scandal where the promoter and chairman Ramalinga Raju fudged the accounting inflating assets and understating liabilities manipulating accounts by $1.47 billion (present value is approximately Rs. 9000 Crores).

  1. Inflating Receivables (Sales) – He raised fake invoices and used an emergency system of feeding the same to the company’s inventory management software thus bypassing validations. He also generated a “Super User” code that enabled him to hide the fake invoices for obvious reasons. CBI said in a statement

    Investigations revealed that the accused have already entered 6,603 out of these false and fabricated invoices amounting to Rs 4,746 crore into their books of accounts thereby inflating the revenues of the company to this tune.

  2. Understated Liability – It amounted to Rs. 1230 Crores.
  3. Overstating no. of Employees –CID told in court that the actual number of employees is only 40,000 and not 53,000 as reported earlier and that Mr. Raju had been allegedly withdrawing Rs. 20 Crores every month for paying these 13,000 non-existent employees. Read More »
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