Category Archives: CPT TIPS

Summary Of The National Food Security Bill 2013


 Preliminaries

The Bill seeks “to provide for food and nutritional security in human life cycle approach, by ensuring access to adequate quantity of quality food at affordable prices to people to live a life with dignity and for matters connected therewith and incidental thereto”.

It extends to the whole of India and “shall come into force on such date as the Central Government may, by notification in the Official Gazette appoint, and different dates may be appointed for different States and different provisions of this Act”.

2. Entitlements

Public Distribution System (TPDS)

Priority households are entitled to 5 kgs of foodgrains per person per month, and Antyodaya households to 35 kgs per household per month. The combined coverage of Priority and Antyodaya households (called “eligible households”) shall extend “up to 75% of the rural population and up to 50% of the urban population”.

The PDS issue prices are given in Schedule I: Rs 3/2/1 for rice/wheat/millets (actually called “coarse grains” in the Bill). These may be revised after three years.

Children’s Entitlements

For children in the age group of 6 months to 6 years, the Bill guarantees an age-appropriate meal, free of charge, through the local anganwadi. For children aged 6-14 years, one free mid-day meal shall be provided every day (except on school holidays) in all schools run by local bodies, government and government aided schools, up to Class VIII. For children below six months, “exclusive breastfeeding shall be promoted”.

Children who suffer from malnutrition will be identified through the local anganwadiand meals will be provided to them free of charge “through the local anganwadi”.

Entitlements of Pregnant and Lactating Women

Every pregnant and lactating mother is entitled to a free meal at the local anganwadi(during pregnancy and six months after child birth) as well as maternity benefits of Rs 6,000, in instalments.

[Notes: (1) “Meal” is defined in the Bill as “hot cooked meal or ready to eat meal or take home ration, as may be prescribed by the Central Government”. All “meals” have to meet nutritional norms specified in Schedule II. (2) The entitlements of women and children are to be delivered by state governments through schemes “in accordance with the guidelines, including cost sharing” to be prescribed by the Central Government. (3) Every school and anganwadi is to have “facilities for cooking meals, drinking water and sanitation”. (4) For purposes of issuing ration cards, the eldest woman in the household (not less than 18 years of age) shall be considered head of the household.]

3. Identification of Eligible Households

The Bill does not specify criteria for the identification of households (Priority or Antyodaya) eligible for PDS entitlements. The Central Government is to determine the state-wise coverage of the PDS, in terms of proportion of the rural/urban population. Then numbers of eligible persons will be calculated from Census population figures. The identification of eligible households is left to state governments, subject to the scheme’s guidelines for Antyodaya, and subject to guidelines to be “specified” by the state government for Priority households. The lists of eligible households are to be placed in the public domain and “displayed prominently” by state governments.

4. Food Commissions

The Bill provides for the creation of State Food Commissions. Each Commission shall consist of a chairperson, five other members and a member-secretary (including at least two women and one member each from Scheduled Castes and Scheduled Tribes).

The main function of the State Commission is to monitor and evaluate the implementation of the act, give advice to the states governments and their agencies, and inquire into violations of entitlements (either suo motu or on receipt of a complaint, and with “all the powers of a civil court while trying a suit under the Code of Civil Procedure 1908”). State Commissions also have to hear appeals against orders of the District Grievance Redressal Officer and prepare annual reports to be laid before the state legislature.

The State Commission may forward “any case” to a Magistrate having jurisdiction, who shall proceed as if the case has been forwarded under Section 346 of the Code of Criminal Procedure 1973.

5. Transparency and Grievance Redressal

The Bill provides for a two-tier grievance redressal structure, involving the District Grievance Redressal Officer (DGRO) and State Food Commission. State governments must also put in place an internal grievance redressal mechanism which may include call centres, help lines, designation of nodal officers, “or such other mechanisms as may be prescribed”.

Transparency Provisions

Mandatory transparency provisions include: (1) placing all PDS-related records in the public domain and keeping them open for inspection to the public; (2) conducting periodic social audits of the PDS and other welfare schemes; (3) using information and communication technology (including end-to-end computerisation of the PDS) “to ensure transparent recording of transactions at all levels”; (4) setting up vigilance committees at state, district, block and fair price shop levels to supervise all schemes under the act.

District Grievance Redressal Officers

DGROS shall be appointed by state governments for each district to hear complaints and take necessary action according to norms to be prescribed by state governments. If a complainant (or the officer or authority against whom an order has been passed by the DGRO) is not satisfied, he or she may file an appeal before the State Food Commission.

Penalties and Compensation

The Food Commissions have powers to impose penalties. If an order of the DGRO is not complied with, the concerned authority or officer can be fined up to Rs. 5,000. The Commission can authorise “any of its members” to act as an adjudicating officer for this purpose.

In case of “non-supply of the entitled quantities of foodgrains or meals to entitled persons”, such persons will be entitled to a food security allowance from the state government, as prescribed by the central government.

6. Other Provisions

PDS Reforms

In Chapter VII, the Bill states that central and state governments “shall endeavour to progressively undertake” various PDS reforms, including: doorstep delivery of foodgrains; ICT applications and end-to-end computerisation; leveraging “aadhaar” (UID) for unique identification of entitled beneficiaries; full transparency of records; preference to public institutions or bodies in licensing of fair price shops; management of fair price shops by women or their collectives; diversification of commodities distributed under the PDS; full transparency of records; and “introducing schemes such as cash transfer, food coupons or other schemes to the targeted beneficiaries in lieu of their foodgrain entitlements” as prescribed by the central government.

Obligations of Government and Local Authorities

The main obligation of the Central Government is to provide foodgrains (or, failing that, funds) to state governments, at prices specified in Schedule I, to implement the main entitlements. It also has to “provide assistance” to state governments to meet local distribution costs, but on its own terms (“as may be prescribed”). The Central Government has wide-ranging powers to make Rules.

The main obligation of state governments is to implement the relevant schemes, in accordance with the guidelines issued by the Central Government. State governments also have wide-ranging powers to make Rules. They are free to extend benefits and entitlements beyond what is prescribed in the Bill, from their own resources.

Local Authorities and Panchayati Raj Institutions are responsible for proper implementation of the act in their respective areas, and may be given additional responsibilities by notification.

7. Schedules

The Bill has three schedules (these can be amended “by notification”). Schedule 1 prescribes issue prices for the PDS. Schedule 2 prescribes “nutritional standards” for midday meals, take-home rations and related entitlements. For instance, take-home rations for children aged 6 months to 3 years should provide at least 500 calories and 12-15 grams of protein. Schedule 3 lists various “provisions for advancing food security”, under three broad headings: (1) revitalization of agriculture (e.g. agrarian reforms, research and development, remunerative prices), (2) procurement, storage and movement of foodgrains (e.g. decentralised procurement), and (3) other provisions (e.g. drinking water, sanitation, health care, and “adequate pensions” for “senior citizens, persons with disability and single women”).

 

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HOW TO CLEAR IPCC EXAMS: CA ROCKSTARS


Preparation tips for IPCC exams :

 

 Dear students success it is the product of both intelligence and hard work . so for CA for exams both required ( intelligence and hard work ) . number of students face problems for preparation i. e. how to start & from where to start and from which subject to start like this . Avoid such mistakes following are the steps observe :

Step 1 : After completion of your coaching access remaining period for exams later on analyse yourself preparation for both groups or single group .

Step 2 : Draw a scheduled for preparation .

Step 3 : I would suggest to all theory part of the subjects better to read early morning time only.Because it is the best time for grasping.

Step 4 : You have to be practice problematical papers like Accounts , costing & FM otherwise in examinations difficult to salve the problems .

Step 5 : Before going to exams you have to be revision total syllabus 2 to 3 times .otherwise u will  got blank during exam.

Step 6 : In law & income Taxation subjects don ‘t code wrong section its results may be loss of marks. u have 100 % confident on that u can code other wise write like, prescribed section .

Step 7 : In examination presentation is very important that ‘s reason u have to start every question in fresh page and code question number in middle of the page & Avoid striking and write legible this is helpful to get more marks .

Step 8 : After finish your exam don ‘t discuss with friends regarding that exam . left your question paper in examination hall and start your preparation for next exam .

Step 9 : suppose in group I A / c paper u r not presented properly just ignore that and prepare for next exam . Maximum of students are doing is any one paper not presented properly he / she not concentrate remaining exams . My dear students don ‘t do like that may be chance remaining papers u can get exemption . So think positive.

Step 10 :Dear students after completion of your exams in case u have doubt any subject start your preparation immediately because after announcing of the result u have only 2 .5 months only . For clearing CA exams may be take one or more attempt so don ‘ t get mentally stress .

 

 

Subject wise tips :

 

1 . IT & SM : I would suggest to all SM preparation level is from last chapter to first chapter . And IT start with flowcharts & decision table later on network, inter net , DBMS finally start 1 st chapter . From practice manual 40 to 45 marks paper will be from it so should be concentrate on that . Remaining part is definition part around 15 marks.

2 . INCOME TAX : You have to read every concept in income tax paper & one more thing is total income problems important , and in every problem u have make note points its impress to valuationer . Put the currency symbol other wise u can loss marks . My sincere advice is don ‘t start with total income problem in examination y because its take more time for completion. at the time of preparation first of all finish indirect tax( service tax & VAT) y because its less concept u can get nearly 50 marks .

3 . AUDITING : In auditing company auditor chapter is very important in that chapter only around 15 to 25 marks. And standards also important for exams read 2 to 3 times. Last 2 to 3 attempts asked only direct question only so more concentrate on direct questions .

4 . ACCOUNTS: In accounts I & II subjects very important is accounting standards its around 12 to 25 marks in each subjects . In examination presentation level is start with journal entries problem then ledger a / c after that final a / c problems. y because time management is very important in CA examinations .

5 . COSTING & FM : I n this subject first of all theory part u have to prepare its nearly 30 to 35 marks later on start practice problems in both costing & FM otherwise u cont salve the problems in examination .

6 . LAW : in this subjects first of all prepare company law & other laws y because around 50 to 60 marks cover in these topics . Later on business communication etc .

 

IMPORTENT POINTS:

1 . Time management is very important in examination.

2 . Don ‘t STUDY CONTINIOUSLY . take small breaks

3 . Sleep every day 6 to 7 hours .

4 . Take food properly .

5 . Very very important point is in all exams u have to be write point wise .

6 . Don ‘t refer 2 to 3 author books .do practice manual . its very important 

7 . We would suggest that for the benefit of the students read the suggested answers carefully its useful to your examinations .

hope this article useful to your preparation .

 

BEST OF LUCK 🙂

How To Incorporate a Corporate Entity in India?


A corporate entity in India is governed by provisions of The Companies Act 1956 (The Act).
The Act permits primarily two kinds of Companies –
 
a) Private limited Company
b) Public limited Company
 
Both are companies with limited liabilities; owned by shareholders & governed by The Board
of Directors.
This note deals with the processes & the costs involved in forming a limited liability company –
 
Incorporation Process
 
1) Selection of Name for Company with Alternatives. (Details to be provided as per
Annexure A)
2) Approval of the proposed Name of the company by Registrar of Companies(ROC)
3) Draft the Charter Documents viz. Memorandum of Association (MOA) and Articles of
Association (AOA), have them vetted and stamped by the ROC.
4) Fill up forms e.g. Form No. 1 (dealing with name of the company), Form No. 18 (dealing
with registered office address etc) , Form No. 32 (details of directors of the company, Details to be provided as per Annexure B )
5) Form No. 29 – In case of the public Company the consent of the directors is also to be
filed.
6) Submit the following to ROC:
a) Certified True Copy of Letter of Approval by ROC
b) Forms mentioned in item no. 4 above duly filled
c) Charter documents, signed and stamped
d) Registration Fee
6) On Submission of the above documents ROC will issue a Certificate of Incorporation.
This is the date of incorporation of the company.
7) Obtain a Certificate of Commencement of Business. This is the date from which a company can commence business in India (Applicable only for Public Limited Companies)
8) You can now open the bank account for the company and start operations.
 
Approximate Time for formation:
 
For approval of Name
5 Working days from date of submission of form.
 
For submission of MOA /
AOA
20 Working days from date of receipt of letter from ROC approving the name. Obtaining final Certificate of Incorporation
10 Working days from the date of submission of AOA / MOA
 
Total 35 Working Days *
 
Composition of Board of Directors
 
Every Public Company shall have at least three directors and private companies two. In order
to qualify for being appointed as a director, few provisions have to be carefully understood –
 
1) The directors should be of sound mind and solvent
2) The directors should not be convicted by Court for more than six months and if convicted, then a period of five years should have elapsed from the date of sentence
3) The proposed director should have honored payment of all calls on shares and should have not defaulted on the same.
4) The proposed director person should not be a director of more than fifteen companies in
India.
 
 

know All About Provident Funds


Under Income Tax Act, 1961, contribution by employer and employee to the provident fund account enjoys certain tax benefits and some are taxable as well.
 
Provident Funds provides a compulsory contribution for the future of an employee after his retirement or for his dependents in case of his early death. In such fund employee and employer contribute equally. There are many provident funds in which the contribution can be made and the taxability of the same depends upon the type of provident fund in which the contribution is made.
 

 

 
Basically, there are three types of Provident Fund Schemes provided by the employer, namely Statutory provident fund, Recognised provident fund and Unrecognised provident fund.
 
However, an employee may also contribute to the Public Provident Fund scheme.
 
Statutory provident fund-
 
This fund is set up under the provisions of the Provident Fund Act, 1925. This fund is maintained by Government and Semi-Government organizations, local authorities, railways universities and recognized educational institutions.
 
Taxability as per the Income Tax Act, 1961:
 
•         Employer’s contribution to provident fund – Exempt
•         Deduction under Section 80C – Available for employee’s own contribution
•         Interest credited to provident fund – Exempt
•         Payment at retirement or termination of service – Exempt
 
Recognized Provident Fund –
 
This fund is one which is recognized by the Commissioner of Income tax in accordance with the rules contained there in the Employee’s Provident Funds and Miscellaneous Provisions Act, 1952. According to this Act, any organization, which employs 20 or more persons, is obligated to register under the Act and start a PF scheme for the employees in the organisation.
 
Taxability as per the Income Tax Act, 1961:
 
•         Employer’s contribution to provident fund – Exempt up to 12% of salary – excess is taxable
•         Deduction under Section 80C – Available for employee’s own contribution
•         Interest credited to provident fund – Exempt up to notified rate (now 9.5%)
•         Payment at retirement – Taxable except in following under mentioned circumstances
 
The employee should have rendered continious service with his employer for 5 years or more; or if not so, he should have been terminated due to ill health, due to discontinuation of employer’s business or by reason beyond his control. If he has found another employment, the balance due to him should have been transferred to his account in the recognised provident fund of the new employer.
 
Unrecognized Provident Fund –
 
Unrecognized provident fund is the provident fund which is neither a statutory provident fund nor a recognized fund. This scheme is started by an employer which is not approved by the Commissioner of Income Tax.
 
Taxability as per the Income Tax Act, 1961:
 
•         Employer’s contribution to provident fund – Exempt from tax
•         Deduction under Section 80C – Not Available
•         Interest credited to provident fund – Exempt
•         Payment at retirement – Employee’s own contribution is exempt but interest on his own contribution is taxable under the head “income from other sources”.

Payment received towards the employer’s contribution and interest thereon is taxable under the head “Salaries”.Image

top 10 facts about the New Company Bill


1. Now that both houses of Parliament have passed the Bill, it will go to President Pranab Mukherjee for his assent before it becomes law, following which the Ministry of Corporate Affairs will issue a notification. 

2. The new rules make the earmarking of funds by companies for corporate social responsibility (CSR) spending mandatory. Companies are required to spend at least 2 per cent of their net profit on CSR. The companies will also have to give preference to the local areas of their operation for such spending. If they are unable to meet CSR norms, they will have to give explanations and may even face penalty. 

3. To help in curbing a major source of corporate delinquency, the Bill introduces punishment for falsely inducing a person to enter into any agreement with bank or financial institution, with a view to obtaining credit facilities. 

4. The new legislation has more provisions to guard the interests of employees. It mandates payment of two years’ salary to employees in case a company shuts operations. 

5. The appointment of auditors for five years shall be subject to ratification by members at every annual general meeting. Also, the limit in respect of maximum number of companies in which a person may be appointed as auditor has been proposed as 20. 

6. Independent directors shall be excluded for the purpose of computing “one-third of retiring directors”. 

7. The maximum number of directors in a private company has been increased from 12 to 15, which can be increased further by special resolution. 

8. The financial year of any company can end only on March 31 and the only exception is for companies which are holding/subsidiary of a foreign entity requiring consolidation outside India. 

9. It also makes auditors subject to criminal liability if they knowingly or recklessly omit certain information from their reports.

10. The Bill has a provision that keeps tabs on exorbitant remunerations for the board of directors and other executives of the companies. This will protect the interest of shareholders as well as employees.