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IN reaction to the earthquakes that hit Gujarat in 2001, a new sub-section 5C was introduced in Sec 80 G of the Income-tax Act with effect from February 3, 2001, to encompass organisations engaged in relief work.

The Finance Bill, 2002 had extended the date of utilisation of the funds received by such organisations from March 31, 2002 to March 31, 2003, after which unutilised funds would be transferred to the Prime Minister's Relief Fund.

Now the CBDT has announced who would be the authority for the purpose of receiving separate accounts from `trusts or funds or institutions for providing relief to the victims of earthquake in Gujarat'.

Income-tax (22nd Amendment) Rules, 2002, has inserted a new rule 18AAAA which states that for the purpose of Sub-section (5C) of Section 80G, the prescribed authority shall be the Director-General of Income-tax (Exemptions).

The trust, the fund or the institution should maintain separate accounts of income and expenditure for providing relief to the victims of earthquake in Gujarat and get such accounts audited by an accountant, as defined in the Explanation to Sub-section (2) of Section 288 and furnish the report of such audit, duly signed and verified by such accountant to the Director-General of Income-tax (Exemptions) in Form No. 10AA.

Such authority, on receipt of the accounts in the said form, shall give the findings as to whether the donations received for the purpose of providing relief to the victims of earthquake in Gujarat are chargeable to tax in the hands of the trusts or the fund or the institution under clause (23C) of Section 10 or under Section 12 or not, as the case may be, and determine the extent thereof.

The new Form 10AA is titled `details of accounts under section 80G(5C)(v) of the Income-tax Act, 1961, for providing relief to the victims of earthquake in Gujarat'.

Is there any organisation that provides relief to hassled taxpayers? (Notification No 228/2002 - SO893 (E) - dated August 21, 2002)

Citric dump

The Central Board for Excise and Customs has notified the imposition of anti-dumping duty on citric acid originating in or exported from Indonesia and Thailand.

The designated authority's preliminary findings, lead to the conclusion that citric acid, originating in, or exported from, Indonesia and Thailand has been exported to India below normal value, resulting in dumping; that the Indian industry has suffered material injury from exports of citric acid from Indonesia and Thailand; and the injury has been caused cumulatively by the dumped imports from Indonesia and Thailand.

The anti-dumping duty has been levied at $456.67 (per tonne) in the case of Indonesia, and $374.36, in the case of Thailand.

The anti-dumping duty imposed under this notification shall be effective up to and inclusive of February 25, 2003, and shall be payable in Indian currency. (Notification No 86/2002 dated August 26, 2002)

Paperboard sop

In exercise of powers conferred by section 28A of the Customs Act, the Central Government, has decided to confer benefit to paperboard manufacturers. This relates to the period from March 1, 2000 to October 22, 2001.

Accordingly, duties of customs payable (on certain goods falling under heading 47.07 of the First Schedule to the Customs Tariff Act) where the import is for use in, or supply to, a unit for manufacture of paperboard. (Notification No 56/2002 NT dated August 26, 2002)

As they like it

SEBI's committee on accounting standards has been set up for the purpose of making the disclosure standards and accounting practices in the country at par with the international practices. Its framework includes review of the continuous disclosures requirements under listing agreement for the listed companies, providing inputs to ICAI for evolving new Accounting Standards and reviewing the existing Accounting Standards and so on.

On the subject of disclosure by the listed companies, their subsidiaries, and associates of loans/advances and investments in its own shares, the committee has recommended that it is not desirable to prescribe quarterly disclosure of loans, advances and investments; that it is not desirable to prohibit companies from having more than one subsidiary investment company; that additional disclosures may be sought; and that the Corporate Governance Code may be reviewed to consider incorporate more stringent provisions.

The Committee reviewed Clause 41 of the Listing Agreement and has recommended that the following road map for the companies may be laid down: un-audited quarterly results shall be subjected to Limited Review from the quarters ending on or after June 30, 2003; half-yearly results shall be audited from the financial years beginning on or after April 01, 2004; and consolidated half-yearly results along with the stand alone financial results shall be published from the financial years beginning on or after April 01, 2004. It has also suggested the inclusion of `Risk Report' in the annual report.

Importantly, it has recommended that the stock exchanges should be required to inform SEBI in cases where companies fail to remove audit qualifications; that SEBI could constitute an Advisory Committee to examine the cases reported by the stock exchanges where companies have failed to remove audit qualifications; and that SEBI may refer the matter to the Department of Company Affairs (DCA) to initiate necessary action under the Companies Act and also to ICAI in cases where actions are required against the auditors of the company.

Comments on the above recommendations are invited from public at large including corporates, participants in securities market, investors, and so on. (PR163/2002 dated August 23, 2002) _D.M

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