Govt to introduce new PAN form for non-residents

In the new form, the applicants will have to submit all the information they are required to provide while complying with the Know Your Customer norms of SEBI, a senior CBDT official said

New Delhi: The Income Tax (I-T) department will introduce a separate permanent account number (PAN) application form for non-residents in which NRIs, PIOs and entities having interest in India will have to provide additional information to the Central Board of Direct Taxes (CBDT), reports PTI.

The new form—49AA—will help the department gather information on non-Indian entities and individuals, like Persons of Indian Origin (PIOs), politically exposed persons (PEPs), persons linked to PEPs and those involved in activities like gambling, gaming and lottery, a senior CBDT official said.

“This will also help us gather tax-related information from foreign entities and individuals which we can share with tax havens like Switzerland, if required. The new form will come into effect from Tuesday,” the official added.

At present, residents and non-residents are required to apply for PAN on same application form. The new PAN form will have to be used by fresh applicants only, the official clarified.

PAN is needed for paying income tax and filing returns by individuals as well as business entities.

In the new form, the applicants will have to submit all the information they are required to provide while complying with the Know Your Customer (KYC) norms of the Securities and Exchange Board of India (SEBI), the official added.

The existing PAN application form 49A, he added, too will be modified to include information that citizens are required to submit while applying for Aadhar number under the Unique Identification Authority of India (UIDAI) scheme.

“Now, form 49A has been synchronised with Aadhar. By doing this, we will get additional information,” the official added.

 

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SEBI imposes fine of Rs5 lakh on PSTL promoter Saminathan

 

SEBI had in an order in December last year directed promoter and managing director of Pyramid Saimira Theatre, PS Saminathan to make a public offer to acquire shares of PSTL from public shareholders within three months from the date of the order. However, Mr Saminathan had cited this ban for failure to make an open offer to buy the shares

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Monday imposed a penalty of Rs5 lakh on promoter and managing director of Pyramid Saimira Theatre (PSTL), PS Saminathan, for his failure to comply with directions issued by it, reports PTI.

SEBI had in an order in December last year directed Mr Saminathan to make a public offer through a merchant banker to acquire shares of PSTL from public shareholders by paying them the value determined by the valuer and acquire the shares within three months from the date of the order.

“... the noticee (PS Saminathan) has not complied with the said direction issued by SEBI. Moreover, it is an admitted fact that the noticee failed to comply the direction issued by SEBI vide order dated 23 December 2010,” SEBI said.

The regulator said Mr Saminathan has violated provisions related to Section 15 HB of SEBI Act which deals with failure to comply with orders issued by it.

“Considering all the facts and circumstances of the case... impose a penalty of Rs5 lakh only on the noticee viz. PS Saminathan,” SEBI said, while directing him to deposit the penalty within 45 days.

PSTL was allegedly involved in committing irregularities in its books of account and showing inflated profits and revenues in the financial statements in 2007-08.

The company and its directors allegedly lured the general public to invest in the shares of the company based on such false financial statements.

SEBI had earlier in 2009 banned Mr Saminathan from “buying, selling or dealing in securities” on account of his involvement in the incidents of 2007-08.

Mr Saminathan had, in reply to show-cause notice from SEBI, cited this ban for failure to make an open offer to buy the shares.

“... though he has been banned from dealing in securities market, he is specifically permitted/directed to make public offer to acquire the shares of PSTL from public share holders.

The direction to make the public offer overrides the ban to the extent necessary for compliance with the same and therefore, the directions are not contradictory but both were to be complied with.

“The noticee has not submitted any evidence to prove to the least that he attempted to comply with the direction either seeking any clarification or direction from SEBI to mitigate the difficulties if any, he had in complying with the direction,” SEBI said, while rejecting the argument.

 

Mr Saminathan was the promoter and MD of PSTL during the period when the irregularities took place and was alleged have published false and misleading financial results of PSTL.

It was also observed that company allotted convertible warrants to Mr Saminathan on preferential basis without receiving consideration thereof.

Besides, it was alleged that PSTL did not maintain proper books of accounts and did not cooperate with the investigation by failing to produce various documents and records required during investigation despite issue of several summons.

SEBI had initiated inquiry on the irregularities in November 2009 and a show-cause notice was issued against Mr Saminathan in April 2010.

A month later, Mr Saminathan sent a reply denying all the charges. Besides, he made further submission before SEBI in the following months.

PSTL claimed to have entered into lease/hire agreements with 765 theatres in various states as on 31 March 2008, and with 802 theatres as at the end of June 2008. However, during investigation it was able to show copies of only 257 such agreements to SEBI.

The market regulator also found that no money was paid by PSTL to some theatres for creation of security deposits.

Mr Saminathan was also accused of impeding proceedings on as he claimed that SEBI is not an expert body on accounts and questioning the authority of the regulator to pass comments on the accounts maintained by the company.

SEBI had in July this year imposed a fine of Rs1.1 crore on Mr Saminathan for indulging in fraudulent and unfair trade practices and violating market regulations.

 

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Redifussion to handle Tatas’ PR account in place Niira Radia’s Vaishnavi

In a surprise announcement on Sunday Niira Radia, owner and promoter of Vaishnavi Group which has mandate from Tata Group and Mukesh Ambani-led Reliance Industries announced her exit from the business of communication consultancy

New Delhi: The Tata Group has appointed Redifussion to manage the conglomerate’s public relations in place of the agency led by high-profile lobbyist Niira Radia who has quit the business, reports PTI.

“The Tata Group has appointed Rediffusion, led by Arun Nanda, to manage public relations and public affairs for the Tata Group of companies from 1 November 2011,” the Group said in a statement.

This follows the expiry of the contract with Niira Radia-led Vaishnavi Corporate Communications on 31 October 2011.

In a surprise announcement on Sunday Niira Radia, owner and promoter of Vaishnavi Group which has mandate from Tata Group and Mukesh Ambani-led Reliance Industries (RIL) announced her exit from the business of communication consultancy.

“To give precedence to my personal priorities of family and health, I have decided against renewing any client mandates and to exit the business of communications consultancy,” she said in a statement.

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