Sunday, 17 March 2013

CORPORATE SOCIAL RESPONSIBILITY OF PSUS



CORPORATE SOCIAL RESPONSIBILITY OF PSUS

As per the existing guidelines on Corporate Social Responsibility (CSR) issued by the Department of Public Enterprises (DPE) in April, 2010, all profit making Central Public Sector Enterprises (CPSEs), including Maharatna CPSEs are required to select CSR activities which are aligned with their Business strategy and to undertake them in a project mode. Giving this information in written reply to a question in Lok Sabha the Minister of Heavy Industries and Public Enterprises, Shri Praful Patel, said that CPSEs are mandated to spend their funds on CSR projects selected by them with the approval of their respective Boards. All profit making CPSEs are required to allocate budget mandatorily through a Board Resolution as percentage of net profit (previous year) in the following manner:

Type of CPSEs Net Profit (Previous Year)
Expenditure range for CSR in a Financial Year
(% of profit)
(i) Less than Rs. 100 crore
3% – 5%
(ii) Rs.100 crore to Rs. 500 crore
2% – 3%
(Subject to a Minimum of Rs. 3 crore)
(iii)Rs.500 crore and above          
0.5% – 2%

Shri Patel informed the House that the loss making CPSEs are not mandated to earmark specific funding for CSR activities. CSR Budget is fixed for each financial year and this fund does not lapse. It is transferred to a CSR funds in which it accumulates. Implementation of CSR activities of CPSEs is monitored by the administrative Ministries/ Departments of concerned CPSEs. State/UT/PSU-wise information of CSR work undertaken by the CPSEs, including Maharatna CPSEs and the number of persons benefited there from, is not maintained centrally in the Department of Public Enterprises. CPSEs are free to take up CSR Projects for upliftment of weaker sections, and backward districts, the Minister said in his reply.

Source: Ministry of Heavy Industries & Public Enterprises


With Regards
CS Prakash Verma
Email: Prkverma@gmail.com

STEPS TO CHECK INFLOW OF ILLEGAL MONEY



STEPS TO CHECK INFLOW OF ILLEGAL MONEY

Reserve Bank of India (RBI) has issued comprehensive instructions/guidelines to banks on Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/Combating of Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002.

Also under PMLA 2002, the reporting entities, including banks, financial institutions and intermediaries of securities market, payment system operators and authorized persons which include Money Transfer Service Providers, Authorized Money Changers etc, are under obligation to file Suspicious Transaction Reports (STRs) to the FIU-IND. After analysis of STRs, the information is disseminated to the appropriate law enforcement agencies for further investigation.

Further, the Government monitors the receipt and utilization of foreign contribution received by any ‘person’ including Non Government Organisations (NGOs) in the country in terms of Foreign Contribution (Regulation) Act, 2010 and the Rules framed thereunder.

In cases of receipt of funds from abroad other than through authorized channels, Directorate of Enforcement takes appropriate action under Foreign Exchange Management Act, 1999.

During the years 2009-10, 2010-11, 2011-12 and 2012-13 (upto 28.2.2013), based upon the investigations conducted, the Adjudicating Authorities under FEMA have issued 945 Show Cause Notices for alleged contravention of the relevant provisions of FEMA relating to the transfer of funds unauthorisedly to the extent of about Rs. 2530 crore.

Apart from above, on the basis of enquiries on the complaints received, 24 cases have been referred to CBI, 10 cases to State Police, 35 NGOs have been placed in Prior Permission category, accounts of 32 NGOs have been frozen, 72 NGOs have been prohibited from receiving foreign contribution and registration of 4138 NGOs have been canceled by Ministry of Home Affairs.

As per the Master Circulated dated 2.7.2012 issued by RBI, and in terms of Regulation 5A of the Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulation 2000, Foreign Embassy/Diplomat/Consulate General are permitted to purchase/sell immovable property (other than agricultural land/plantation property/farm house) in India subject to clearance from Ministry of External Affairs, Government of India, besides payment of the consideration amount out of funds remitted from abroad through normal banking channels.

This information was given by the Minister of State for Finance, Shri S.S. Palanimanickam in written reply to a question in Lok Sabha.

Source: Government of India, Ministry of Finance


With Regards
CS Prakash Verma
Email: Prkverma@gmail.com

Tuesday, 5 February 2013

ACTION PLAN TO STRENGTHEN THE POLICE AND ADMINISTRATION TO COMBAT SEXUAL CRIMES AGAINST WOMEN



GOVERNMENT INITIATES TIME-BOUND ACTION PLAN TO STRENGTHEN THE POLICE AND ADMINISTRATION TO COMBAT SEXUAL CRIMES AGAINST WOMEN

The Government has initiated a time bound action plan to combat crimes against women. A number of steps have been outlined to improve and strengthen the police and administrative system to ensure that crimes against the women are prevented through quick action, a gender sensitive response mechanism and greater accountability of the enforcement agencies.

The Ordinance promulgated by the President on February 3, 2013 deals with the amendments in the criminal law. These measures are in addition to the Ordinance and cut across various ministries.

The Cabinet Secretary has held a series of meetings recently with senior officials of the concerned Ministries to formulate an action plan within an indicated time frame. Secretaries of seven key ministries have been directed to personally monitor the implementation of these measures and report every month to the Cabinet Secretary and the Prime Minister’s Office. The measures outlined deal with changes in the police system, a review of the Motor Vehicles Act, measures to make responses to crimes against women efficient and sensitive and other administrative measures.

The steps outlined include the following:

1. NCRB will compile a database of persons convicted of criminal offences. The details of criminals convicted of crimes against women will be displayed on their website.

2. Action will be taken to provide the facility of registering an FIR in any police station irrespective of the jurisdiction or area of the time. The FIR may thereafter be transferred to the concerned police station for investigation. This will pertain to serious crimes including issues against women.

3. It is important that citizens should not face any harassment when they come forward to assist women in distress. For this, such citizens should be protected to enable them to freely report a crime and assist the victim/police without being subjected to any interrogation or being forced to become witnesses.

4. ‘Women Only’ buses should be pressed into service. A programme is proposed to be undertaken for encouraging more women driven buses/taxis all over the country.

5. The existing Motor Vehicle Regulations will be reviewed.

6. It has been reported that in some instances vehicles have factory-fitted glasses wherein the tint is more than the permissible limit. Secretary, MoRT&H, in consultation with technical experts and police representatives, will examine what should be the maximum permissible level of tinting in the glasses in public transport buses. The use of curtains will be reviewed taking into account the need for passenger comfort and visibility required for security purposes. MoRT&H proposes to appropriately revise the standards and ensure compliance by the manufacturers of these buses.

7. There is need for 100% verification for drivers/conductors/helpers (the entire crew) of the public transport vehicles, plying in Delhi in a time bound programme which will include collecting bio-metrics of all such persons as well. For this, action will be taken to review the relevant Rules for mandating the same. Ministry of Home Affairs would develop a protocol over a defined time frame, for verification of the crew of public transport vehicles and suitable advise the State Governments also to undertake the same. After the stipulated time frame, no public transport vehicle will be allowed to be driven/manned by any driver/conductor/helper or other crew member unless such a person has been verified and carries the verification certificate/identity permit.

8. Owners of buses will be held responsible for compliance of the steps outlined. It is also necessary to debar owners of vehicles involved in repeat offences from retaining existing permits/obtaining any fresh permits for plying public transport vehicles and for impounding of vehicles involved in repeat offences. MoRT&H/State Governments will initiate action in this regard. The particulars of the bus owner/drivers and details of permit and license shall be prominently displayed in the buses both inside and outside, at places where it is prominently visible in easily readable fonts. Use of GPS devices in all public transport vehicles is necessary along with setting up of a control room to monitor movement of buses. Ministry of Road Transport & Highways would issue an appropriate advisory to all the States in this regard.

9. There is need to increase the quantum of fines leviable on violation of permit conditions and to disallow compounding of offences beyond a certain number

10. Delhi Government will issue a draft notification for revising the permit for public transport vehicle incorporating provisions for disallowing use of inappropriate films and tinted glasses, higher punishment for repeat offences and other necessary measures. The final notification will be issued within a month.

11. Secretary, MoRT&H will write to all the States regarding the revision/changes in the Permit conditions being made by the Government of Delhi and request them to take similar measures.

12. At the time of inspection of police stations, it should be mandatory for the inspecting officer to specifically record his findings regarding the gender sensitivity of the personnel posted in the police station as well as the record of the police station/SHO in registering/investigating complaints of crimes against women, and for checking whether women are being discouraged from lodging complaints in the police stations.

13. Strict action will be taken against police personnel and officers found to be either displaying bias against women or neglecting their supervisory responsibilities in this regard.

14. There is a continual need for gender sensitization among the police force, particularly at the level of the constabulary on beat duty or at the police stations. There is need for impressing that there has to be a complete cessation of gender insensitive comments. For this, training courses need to be organized on a regular basis by the police. Strict disciplinary action will be taken against any official indulging in gender bias. Action taken in this regard has to be reported at every level. If action is not found to be taken against an erring official, the supervisory officer will be held accountable. Instructions in this regard will be issued and compliance ensured.

15. At all levels, it will be made mandatory for a reporting officer to comment upon on the gender sensitivity of the police personnel reported upon in the Annual Performance Appraisal Report. It will be emphasized and ensured that remarks in this regard are based on specific instances of behavior and are not reduced to a ritualistic yes/no. When considering postings or promotions of police personnel, the attitude towards women should specifically be taken into account.

16. There is an imperative need to recruit more women in the police force. Women will need to be recruited in large numbers in the Delhi Police. MHA will take necessary action to obtain necessary approvals within this financial year. Action would, similarly, need to be taken in the States as well, to recruit more women in the police force. In order to incentivize the States in this regard, MHA will formulate a suitable proposal/scheme within four weeks and obtain necessary approvals.

17. There is need for additional PCR vans in Delhi. A proposal for 370 such vans has been sent by Delhi Police. Approval in this regard is proposed to be expedited within this financial year.

18. It would be proposed to have lady police personnel in at least some PCR vans, such as those deployed in the vicinity of educational institutions, cinema halls, malls and markets, as also the routes frequented by women employees of BPOs returning from work at night. Over time, it is planned to have some more ‘all women’ police stations.

19. It is also planned to further develop and promote community policing. This would not only augment the effectiveness of the police force but would also motivate the responsible persons in each locality to perform their duty as citizens.

20. A number of cameras are in the process of being installed and at present a CCTV system is functional at 34 markets and 4 border check posts in Delhi. There is, however, an imperative need to further increase the number of CCTVs in public places. For this, the police will elicit the cooperation of all stakeholders, such as traders’ associations, RWAs, managers of commercial/office buildings, malls, cinemas, NGOs, etc. who will be encouraged to install and maintain CCTVs of approved specifications in an outside their premises. Similar action also needs to be taken in all States.

21. There is a need for increased focus on street lighting in public places. Civic bodies must undertake a review of the existing facilities and strengthen these wherever required.

22. Department of Women and Child Development will implement a scheme to provide compensation to victims of sexual assault and also a scheme for setting up Crisis Response Centres in select hospitals to provide psychological and other assistance to the victims of sexual assault. The proposed scheme will be implemented in a pilot phase in 100 districts from 2013-14.

23. The Government proposes to put in place a countrywide three-digit number (such as 100) to respond to all emergency situations. This would be similar like 911 or 990 Emergency Management Systems in vogue in many developed countries. Such a service would be available to subscribers of all telecom service providers as at present there are different telephone numbers being used for responding to different situations or target groups. It is, therefore, proposed to have a system where there is a one point of contact available to a person in distress of any kind. Also, once a call is made to this number, the caller should not be asked to contact some other special/emergency number. Instead, the call should seamlessly be transferred from the single point of contact to the appropriate distress line. Ministry of Home Affairs in coordination with the D/o Telecom will, by the end of February 2013, come up with a basic concept note on how the system will be established and will operate.

24. In addition to the general emergency response helpline, there would be a helpline dedicated to responding to women in distress. This helpline should have a unique three digit number across the country. For this purpose, the number 181 may be operationalized all over the country.

25. The negative, stereotyped and/or indecent portrayal of women in movies, television shows and advertisements has been a matter of concern for long. It would be helpful if all stakeholders were to be continuously engaged with in this regard. There is also a need to have a sustained media campaign of public interest advertisements.

26. The role of value education in schools is recognized as being very important. However, merely prescribing it in the curricula/syllabus is not adequate. Teachers should be given training in value education. Sustained awareness campaigns on gender equality need to be undertaken in all schools and colleges and gender modules need to be integrated in the curriculum at every level.

27. It would be useful to impart training to girls in educational institutions in self defense/martial arts.

Source: Government of India, Cabinet Secretariat


With Regards
Prakash Verma
E. Id: Prkverma@gmail.com

Friday, 18 January 2013

BRICS COUNTRIES IDENTIFIES SEVEN AREAS OF TAX POLICY AND TAX ADMINISTRATION


HEADS OF THE REVENUE OF BRICS COUNTRIES IDENTIFIES SEVEN AREAS OF TAX POLICY AND TAX ADMINISTRATION FOR EXTENDING THEIR MUTUAL COOPERATION:-  

JOINT COMMUNIQUE ISSUED AFTER TWO DAY MEETING OF THE HEADS OF REVENUE OF BRICS COUNTRIES 

Affirming their continued commitment to promote closer coordination and cooperation in the area of tax administration, the Heads of the Revenue of the BRICS Countries i.e. Brazil, Russia, India, China and South Africa, identified seven areas of tax policy and tax administration, for extending their mutual cooperation. This was contained in the Joint Communique issued here today at the end of two day meeting of the Heads of Revenue of BRICS Countries. This mutual cooperation includes contribution to development of international standards on International Taxation and Transfer Pricing taking into account the aspirations of developing countries in general and BRICS Countries in particular. The other areas of cooperation are strengthening the enforcement processes, sharing of best practices and capacity building, sharing of anti-avoidance and non-compliance practices and promotion of effective exchange of information. 

The communiqué expresses the concerns of BRICS Countries at the erosion of the tax base by practices that involve abuse of tax treaty benefits, incomplete disclosure of information and fraudulent claims and makes a commitment to address these concerns by preventing the base erosion and profit shifting through mutual cooperation.

The communiqué also expresses an agreement amongst BRICS Countries for working together towards capacity building, improvement of systems and sharing of resources, knowledge and best practices and emphasizes the spirit of cooperation and solidarity that underlies the BRICS partnership and aims at extending it to the area of tax administration in a way that will benefit the people of BRICS Countries.  

The Heads of Revenue of BRICS Countries earlier met in New Delhi on 17th and 18th January, 2013 and held discussions on issues relating to International Taxation, Transfer Pricing, Prevention of Cross-border tax evasion and avoidance, exchange of information, sharing of best practices in tax system administration and resolution of disputes. The meeting was inaugurated by Finance Minister of India on 17th January and was concluded on 18th January, 2013 by the Revenue Secretary Shri Sumit Bose.    

This was the first meeting of the Heads of Revenue and on conclusion of the meeting, a joint communiqué was issued in which the Revenue Heads of BRICS Countries agreed to develop greater cooperation among their tax administrations on various issues of mutual interest and concerns. The communiqué recognizes the importance of the economic and commercial links amongst BRICS Countries and the need to contribute to the strengthening of these links.
             
Following is the Joint Communique issued after the meeting of the Heads of the Revenue of BRICS Countries:

Communiqué of BRICS Heads of Revenue Meeting Issued in New Delhi on 18th January, 2013
We, the Heads of Revenue of the Federal Republic of Brazil, the Russian Federation, the Republic of India, the People's Republic of China and the Republic of South Africa held a meeting on 17th and 18th January, 2013 at New Delhi to discuss the potential areas of cooperation based on our existing commitment to openness, solidarity, mutual understanding and trust, as stated in the Delhi Declaration issued on March 29, 2012. In this context, we would like to refer to the decision taken during the BRICS Finance Ministers and Central Bank Governors meeting held in Washington DC on 19th April, 2012, wherein it was agreed by all countries to develop a cooperative approach on issues relating to international taxation, transfer pricing, exchange of information and tax evasion and avoidance.

Tax Administration Cooperation
In accordance with the above, we conducted the meeting with the primary objective of identifying specific areas of common interest and concern and finding ways and means for improving cooperation in these areas related to international taxation, transfer pricing, exchange of information, prevention of tax evasion and avoidance, and tax legislation and administration. We 
·     affirm our continued commitment to the objectives of the BRICS Heads of Revenue of promoting closer coordination and cooperation on issues of mutual concern;
·     recognise the importance of the economic and commercial links between Brazil, Russia, India, China and South Africa and the need for us to contribute to the strengthening of these links.

We agree to extend the cooperation on the following issues of tax policy and tax administration:

(i)     Contribute to development of International Standards on International Taxation and Transfer Pricing taking into account the aspirations of developing countries in general and BRICS Countries in particular
(ii)       Strengthening the enforcement processes by taking appropriate actions for non-compliance and putting more resources on international cooperation
(iii)       Sharing of best practices and capacity building
(iv)     Sharing of anti-tax evasion and non-compliance practices, including abuse of treaty benefits and shifting of profits by way of complex multi-layered structures
(v)       Development of a BRICS mechanism to facilitate countering   abusive tax avoidance transactions, arrangements, shelters and schemes
(vi)      Promotion of effective exchange of information
(vii)     Any other issues of common interests and concerns related to taxation.

Confronting Non-Compliance with the Tax Laws in an International Context
We  express our concern at the erosion of the tax base by practices that involve abuse of tax treaty benefits, incomplete disclosure of information and fraudulent claims, and jointly agree to work together to  address these concerns. We commit to prevent the base erosion and profit shifting through cooperation amongst ourselves and with other countries.  We also agree to produce a paper on these subjects for mutual benefit of BRICS countries.

Capacity Building
We agree to work together towards capacity building of personnel and improvement of our systems and express our commitment to share resources, knowledge and best practices to achieve this end.

Multilateral Cooperation
We also agree to establish a central point of contact in each of the BRICS Countries for coordination of issues relating to taxation. The central points of contacts will identify issues of common interest in areas of International Taxation and Transfer Pricing and will develop a common response, interact and meet regularly, including pre-meeting before important multilateral meetings.  The agreed common response of the BRICS countries would be communicated to international organisations engaged in development of standards on International Taxation and Transfer Pricing. 

Governance Issues
We agree to make a commitment to continue the process of cooperation in tax administration. We agree to establish a Governance Framework in accordance with the overall BRICS commitment by May, 2013. 
We reiterate the spirit of cooperation and solidarity that underlies the BRICS partnership, and look forward to extend it to the area of tax administration in a way that will benefit the people and our countries and contribute to their overall wellbeing.
We also agree:
(i)     to inform the BRICS Summit of the outcomes of our deliberations; and
(ii)   to decide the date and place of next meeting BRICS Heads of Revenue after mutual consultation.

Source:- Press Info, GOI, Ministry of Finance


With Regards
Prakash Verma
Email: Prkverma@gmail.com