Regulations
SEBI directs bourses to maintain up-to-date broker information

As per SEBI’s directions, all trading members of stock exchanges would be required to submit on a continuous basis, the general business and organisation details, key personnel details, subsidiary and associate or group company details, among others

 
Market watchdog Securities and Exchange Board of India (SEBI) has asked the exchanges to maintain an up-to-date database of their trading members’ group and staff details. The move is aimed at checking suspicious activities of brokers through front entities.
 
As per SEBI’s directions, all trading members of stock exchanges would be required to submit on a continuous basis, the general business and organisation details, key personnel details, subsidiary and associate or group company details, among others.
 
This latest step has been taken by SEBI as part of its efforts to keep a check on any possible market manipulations or other unlawful activities that could be conducted through undisclosed related entities.
 
Pursuant to SEBI’s directions, leading exchange BSE today put in place an online filing system to enable trading members submit these details on a continuous basis.
 
The new facility, named BSE Electronic Filing System (BEFS) where BSE trading members can continuously edit and update the required details, would be made available to them with effect from 15th April.
 
The BSE said the new facility has been introduced pursuant to SEBI’s directions for submission of these details on a continuous basis by the trading members.
 
The details that need to be submitted on this system include the trading member’s business group—whether it is a subsidiary of another corporate entity—information about the CEO or business head and details about other key officials, along with PAN details of all the mentioned entities.
 
The members would also have to mention whether any other capital market activities, such as merchant banking, depository, etc, were being carried out by the member, along with the details of those activities as well.
 

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Railways, roads and housing to drive cement demand in FY14: Credit Suisse

A new report released by Credit Suisse has revealed that roads and railways are likely to drive up demand for cement, albeit at a gradual pace over the next 12 months

Indian cement sector is poised to pick up, albeit gradually during FY 2014 and it is expected that the the next 12 months would be good for the industry as a whole as it provides raw materials to key ancillary industries namely road, housing and railways, all of which are expected to pick up, says Credit Suisse.
 

The investment bank in a report said, “We expect accretive price increases for the cement sector in FY14 as demand growth improves to 7% (5% in FY13). The recovery should be driven by strong growth in rural housing and pick-up in roads and railways investment.”
 

One of the key focuses for the government and policymakers is to provide low-cost housing and rural housing, all of which require pucca (and therefore cement) houses. As much as 85% of the cement demand for rural housing stems from pucca houses, it said.


Even rising rural incomes is expected to drive demand for housing. Currently, the penetration of pucca housing is low, at only 52%. To facilitate increased housing for the poor, the government has set its budget 70% higher. “Under the Indira Awas Yojna (IAY), the central government has increased allocation per household by 55% to Rs70,000 and thus the FY14 budget is set 70% higher than FY13,” Credit Suisse said.
 

Another key catalyst is investment on construction of roads, which has been suffering for the past three years due to policy inaction, tight financing and poor implementation. Credit Suisse feels this could change. The report states, “If initiatives taken by the NHAI (National Highway Authority of India) to revive road sector to bear fruit, it should further add to cement demand growth. Railways investment grew by 16% in FY13 and should grow 20% in FY14 with project awards expected for a dedicated freight corridor.”
 

However, some of the big initiatives by the government may go a long way to speeding up road construction. One of them is delinking of environmental clearance from forest clearance, in which the NHAI has moved the Supreme Court on this matter, according to Credit Suisse. Earlier, infrastructure companies had to obtain not just environmental clearance but also forest clearance which resulted in many projects being stymied or stuck. If the Supreme Court verdict is positive, it will be a big plus for the cement sector.
 

The second key factor is the recent Reserve Bank of India (RBI) circular which could result in banks being more lenient and more free to issue loans and bonds to infrastructure and construction companies. The  circular RBI/2012-13/445 dated 18 March 2013, stated: “Prudential Norms on Advances to Infrastructure Sector to treat annuities under Build-Operate-Transfer model in respect of road/highway projects and toll collection rights, where there are provisions to compensate the project sponsor if a certain level of traffic is not achieved, as tangible securities. This is subject to the condition that banks’ right to receive annuities and toll collection rights is legally enforceable and irrevocable.” While this is more of a technicality, it could also saddle banks with more bad loans.


It is expected that railways increase investment outlay towards the Dedicated Freight Corridor (DFC) by as much as five times, to Rs7,100 crore. This would mean speedier transport (due to wide gauge) and little traffic, plus more cargo that can be carried on double-decker trains, all at cheaper rates. Cement companies, by and large, transport their cement through trains as it is cheaper than road transport.
 

The report expects cement sector to slowly expand margins albeit at a gradual pace for the 2014 fiscal. The report said, “Overall, we expect 7% cement demand growth in FY14 with housing growing at 8% and infrastructure at 5%. As the demand growth required to break-even new capacity is 6%, we expect margin expansion in FY14.”
 


Credit Suisse has picked Ambuja and ACC to perform well. “Ambuja and ACC both have strong balance sheets, with net cash at 15% of market cap and ROE at 18-19% with next two years earnings CAGR expected at 18-19%. We prefer Ambuja because of its superior regional exposure (high exposure to North India and low exposure to South India), while ACC has the highest sensitivity to both price and volumes and low exposure to Western and Central India, which are our least preferred regions due to high supply pressure,” said the report by Credit Suisse.
 

Earlier, Credit Suisse had written a report on cement sector which can be accessed here: Cement industry to pick up steam over the next two years: Credit Suisse

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COMMENTS

moladi

4 years ago

“Simplicity is the ultimate sophistication” – Leonardo Da Vinci - moladi moulds mortar - addressing the huge housing backlog

TDS not accounted for by I-T dept? Delhi HC order provides some succour

The Delhi High Court, while giving its judgement on the problems encountered by the public in the matter of assessment of tax, said, “Rejection of TDS or failure to get credit for TDS puts the tax payer through needless harassment, inconvenience and costs. The problem, being systematic and institutional, has to be addressed on a general scale”

One more financial year has just come to an end and with that the job of collecting all income certificates, TDS certificates, etc has just begun to enable us to file our income tax (I-T) returns before the end of July 2013. Tax deducted at Source, or TDS for short, has been a pain in the neck for all middle class assesses and despite repeated representations, the government has not agreed to do away with the TDS, particularly in respect of bank deposits.
 

As per the amendment to the Finance Act last year senior citizens are not required to pay any advance tax before the close of the year, but need to pay appropriate tax, if liable, before filing the tax return. But this is only a half-hearted measure, as the government has not waived TDS even for senior citizens even though they are not required to pay advance tax, thereby putting them into great inconvenience.
 

Tax raised is fine but what about accountability in spending it?
 

Problems encountered by tax paying public:
 

Recently, the Federation of Tax Practitioners had filed a writ petition in the Delhi High Court seeking remedies for some of the following problems encountered by the public in the matter of assessment of tax.
 

1. While banks are prompt in deducting tax while paying interest, they do not bother to file TDS returns promptly due to which the tax deducted by them is not reflected in the Form AS 26 of the individual tax payer appearing in the Income Tax website, consequent to which the tax department sends notices to assessees demanding payment of tax.
 

2. Even if the TDS return is filed by banks, many a times, it is wrongly filed resulting in Income Tax Officers (ITOs) refusing to give appropriate credit to assessees for the tax paid by them, despite filing record of tax payments.
 

3. The Central Processing Unit (CPU) of the Income Tax department at Bangalore has, in respect of those assessees who have filed returns on-line, started issuing notices of late to assessees on the basis of wrong entries made in the income tax website showing tax due in respect of earlier years, and asking them to get the same rectified through their ITO, if it is not due from them. This is causing avoidable harassment to all those assessees who have no dues outstanding of earlier years and have a clean record of tax payment.
 

4. Even in such cases, when the assessees seek rectification of tax dues wrongly shown under their name, the ITOs do not respond promptly to such requests resulting in the CPU unilaterally adjusting the refund due for the current year to the non-existing dues shown as outstanding for earlier years, depriving the assesses the rightful refund due to them. 
 

Judgment of the Delhi High Court providing succour to tax payers:
 

Surprisingly the tax authorities have admitted to the Delhi High Court that the data uploaded in their website and relied upon by their Central Processing Unit has errors and mistakes. According to this data a sum of Rs2.33 lakh crore was due and payable as past arrears (payable before 31 March 2010) by the taxpayers.
 

The high court in its judgment dated 14 March 2013, observed as under: 
 

 “The magnitude and number of taxpayers adversely affected can be appreciated from the past arrears figure of Rs2.33 lakh crore, which the tax authorities accept may not be correct,” states the Delhi HC order.

“This effectively means that 23 lakh taxpayers were denied refund or have been refused full refund on account of past arrears,” observes the Delhi HC order.”
 

Should banks pay interest on current accounts as well?
 

The court further said, “Rejection of TDS or failure to get credit for TDS which has been deducted and paid hurts the tax payer and puts him through needless harassment, inconvenience and costs. The problem, being systematic and institutional, has to be addressed on a general scale.”
 

The court has, therefore, in its judgment has given directions to the tax authorities to ensure compliance of the following instructions for the benefit of the public:

  1. Dispose off rectification applications filed by taxpayers regarding non credit of TDS expeditiously. (a separate register for such applications be kept)                             
  2.  Do not adjust refunds against past outstanding demands without prior intimation to the taxpayers.  
  3. If refunds have been suo-moto adjusted, transfer the matter to the concerned tax officer for remedial action in a time bound manner.
  4. Pay interest on delayed refunds where the taxpayer is not at fault
  5. If demand orders for past arrears (for the period prior to 31 March 2010) were not properly communicated to taxpayers, they will be treated as invalid, unless the tax authorities can prove otherwise 
  6. Communicate with tax deductors in case of mistakes made by them in uploading TDS details and get it rectified 
  7. Give the benefit of TDS when taxpayers furnish evidence, even if the tax deductor has made mistakes in uploading details.

If a tax payer faces any of the problems mentioned above, it is advisable to take up the matter with the jurisdictional income tax officer referring to this judgment of the Delhi High Court and seek redress if you find that the tax department is at fault and require remedial action. 

 

 

Other stories by Gurpur
 

(The author is a banking analyst and he writes for Moneylife under the pen-name ‘Gurpur’)

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COMMENTS

S BHASKARA NARAYANA

4 years ago

I too was affected by the IT dept's CPC, B'lore wing. They have not relied upon the form 16 provided by my employer. The Assessing Officer raised demand notice on me alone to my e-mail address, leaving my colleagues, since there is no credit in 26AS for the last quarter.

Even my employer came to my risk.
Can I ask the IT assessing officer to seek my employer, who issued the Form 16 duly verified.---ABXPS0727J

Navin

4 years ago

I'm facing a similar problem. For a particular Financial year i was supposed to receive a Refund and this i did. However, in the CPC data they showed a demand and adjusted this demand through the refund amount which i was supposed to get in the subsequent years. Had been visiting the local I.tax office at Patna but no result.

REPLY

Gurpur

In Reply to Navin 4 years ago

Mr. Navin, you may write a letter to the Income Tax Officer of your jurisdiction bringing to his notice the mistake committed by CPC in adjusting the refund due to you to the fictitious demand shown in their website and asking for setting right the records to enable you to get back the refund due to you. You can also quote this judgement of the Delhi High Court and seek immediate redressal of your grievance.

If you do not get a proper reply from the ITO within a month, you may approach the Commissioner of income Tax (Grievance Cell) at Patna itself and take up this matter with him for redressal. You may also specify the Delhi High Court order and seek immediate release of refund due to you.
If you do not get any positive response from the Commissioner's office within a month, the next course will be to approach the Income Tax Ombudsman of Patna, the details of which are available on the website of Income Tax dept.Govt. of India.

Kindly proceed as above and I am sure you will succeed in your efforts.
Gurpur.

Gurpur

In Reply to Navin 4 years ago

Mr. Navin, you may write a letter to the Income Tax Officer of your jurisdiction bringing to his notice the mistake committed by CPC in adjusting the refund due to you to the fictitious demand shown in their website and asking for setting right the records to enable you to get back the refund due to you. You can also quote this judgement of the Delhi High Court and seek immediate redressal of your grievance.

If you do not get a proper reply from the ITO within a month, you may approach the Commissioner of income Tax (Grievance Cell) at Patna itself and take up this matter with him for redressal. You may also specify the Delhi High Court order and seek immediate release of refund due to you.
If you do not get any positive response from the Commissioner's office within a month, the next course will be to approach the Income Tax Ombudsman of Patna, the details of which are available on the website of Income Tax dept.Govt. of India.

Kindly proceed as above and I am sure you will succeed in your efforts.
Gurpur.

TIHARwale

4 years ago

Communicate with tax deductors in case of mistakes made by them in uploading TDS details and get it rectified.

this itself would ensure IT returns are assed without difficulty. another thing which calls for attention is if Tax Payer has to file returns by 31 July, TDS should file the details by 15 May and AS26 should be available by 30 June so that Tax payers can make self assessment by 10 July and returns can be filed by 31July

SuchindranathAiyerS

4 years ago

There will be no real relief unless the erring parties are promptly penalized for the benefit of those who suffer. This is just "work in progress" for the Quota-Corruption Raj.

PRABHAT

4 years ago

THE JUDGEMENT IS HIGHLY APPRECIABLE . A TAX PAYER IS NOT CONCERNED WITH TDS RECONCILIATION, IF HE IS HOLDING CERTIFICATE FOR THE TAX PAID / DEPOSITED . IN CASE OF ANY MISMATCH , I TAX DEPTT. SHOULD ASK FOR THAT BEFORE COMPLETING ASSESSMENT . BUT DEPTT. IS INTERESTED TO CREATE PANIC FOR THEIR CONVENIENCE .

A LARGE NUMBER OF TAX PAYERS ARE AFFECTED .

VIKAS SIVARAMAN

4 years ago

It's about time the TaxPayer took a stand. Why pay tax when the processing of tax details and dues are so tedious and so flawed? After all it is hard earned money that the govt - by law - says is due from the taxpayer but then we all know how much of that money getts to where it should go. Look at the misuse and criminal malpractice in the NREGA. IT IS NOW APPARENT THAT ALMOST HALF THE ALLOCATED FUNDS ARE BEING SIPHONED OFF. So why pay taxes? To a Govt that is culpable and incapable of protecting that money and ensuring it reaches where it should? STOP PAYING TAXES TILL GOVERNANCE ENSURES THAT OUR HARD EARNED MONEY IS CORRECTLY AND SAFELY DEPLOYED TO THE LAST PAISA is my recommendation. I'm seriously considering this option. Should not you too?? Think.......

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