acording to some ibps expert ibps waiting list will release in april.
if alloted candidate left the seats than waiting list candidate will
capture it.so waiting list will release soon...
April 2, 2013
March 28, 2013
BankOfBaroda thumb Bank Of Baroda PO Joining dates Announced B ank of Baroda (BOB) Has Announced their Dates for Joining who recently allotted Through IBPS PO
Recruitment of -1530- Probationary Officers - Project 2013
Selected candidates allotted to Bank of Baroda can join the Bank on one of the following four dates:
* 22-04-2013
* 06-05-2013
* 20-05-2013
* 15-07-2013
These candidates will be required to submit their preferred date of joining among the four dates mentioned above on or before 30-03-2013. However, Bank reserves the right to give any specific date based on merit and the decision of the Bank in this regard will be final and binding.
March 27, 2013
INTERVIEW TIPS FOR IBPS CLERK
NON-VERBAL:-
NON VERBAL MEANS WITHOUT USING WORDS OR VERBS YOU HAVE TO EXPRESS YOURSELF.THIS IS MAINLY FIRST TIME IMPRESSION THAT A PERSON FEEL ABOUT YOU WHEN THEY MEET YOU.IT IS ABOUT PERSONALITY,LOOKS,BEHAVIOUR THAT YOU CARRY WHEN YOU MEET SOMEONE.
WHY IT IS IMPORTANT:-
NON VERBAL IS THE ETIQUETTE THAT YOU SHOW WHEN YOU MEET A PERSON.IT IS 30-45% PART OF INTERVIEW.IF YOU IMPRESS IN FIRST LOOK YOUR CHANCES OF SELECTION IS 50-60%.
"70% CANDIDATES HAVE BEEN REJECTED IN THERE FIRST MEETING BEFORE INTERVIEW"-ACCORDING TO A RESEARCH
WHAT IT CARRIES:-
NON VERBAL CARRIES ALL EXPRESSION,EMOTIONS,ATTITUDE,WAY OF COMMUNICATION.YOU NEED TO SHOW ONLY POSITIVE EMOTIONS,ATTITUDE WHEN YOU FACES AN INTERVIEW.e.g.KEEP SMILING,KEEP SHOW GOOD MANNERS,ANSWERS PROPERLY,SIT PROPERLY.
WHAT DO I DO TO IMPROVE?
MAINLY NONVERBAL ARE INBORN OR ARE LEARNT BY THE TIME OR ENVIORMENT YOU BELONG TO.YOU CANNOT CHANGE IT INSTANTLY BUT YOU PRACTICE SOME DAY BEFORE TO CARRY POSITIVE ATTITUDE & POSITIVE VIBRATION AROUND YOU.
WHAT IS RELEVANT FOR AN INTERVIEWEE:-
1.MODE OF DRESS:-ALWAYS WEAR FORMAL DRESS.YOU CAN CHOOSE FROM LIGHT COLOR SUCH AS:-
FOR MEN:-BLUE/BLACK PANT & WHITE/GREY SHIRTS.
FOR WOMEN:-LIGHT COLORS OF SALWAR SUIT OR SARI OR PANT-SHIRTS ALSO.
2.USE OF TIME:-
TIME IS THE MOST IMPORTANT PART OF INTERVIEW.INTERVIEW NORMALLY LAST FOR 10-15 MIN.IF IT IS INTERESTING THEN IT CAN LAST 25-30 MIN.SO IN 10-15 MIN YOU HAVE TO PUT YOUR IMPRESSION IN THE MIND OF PANEL.YOU YOUR VERY EFFICIENTLY.
3.SPEAKING:-
SPEAK ALWAYS SWIFTLY & SOFTLY WITHOUT ANY HESITATION OR CONFUSION.KEEP YOUR WPM(WORDS PER MINUTE) OPTIMAL AROUND 30-45 WPM.YOUR VOICE PITCH SHOULD BE OPTIMUM SO THAT IT DOESN'T SOUND YOU ARE SHOUTING OR MURMURING.
4.CONFIDENCE:-
SHOW YOUR CONFIDENCE IN YOUR VOICE & ATTITUDE BUT REMEMBER DON'T SHOW OVERCONFIDENCE OTHERS INSTEAD OF IMPRESSION ON THERE MIND YOU CAN CREATE DEPRESSION.
5.SITTING POSTURE:-
YOU SITTING POSTURE SHOULD BE A FORMAL.
NON VERBAL MEANS WITHOUT USING WORDS OR VERBS YOU HAVE TO EXPRESS YOURSELF.THIS IS MAINLY FIRST TIME IMPRESSION THAT A PERSON FEEL ABOUT YOU WHEN THEY MEET YOU.IT IS ABOUT PERSONALITY,LOOKS,BEHAVIOUR THAT YOU CARRY WHEN YOU MEET SOMEONE.
WHY IT IS IMPORTANT:-
NON VERBAL IS THE ETIQUETTE THAT YOU SHOW WHEN YOU MEET A PERSON.IT IS 30-45% PART OF INTERVIEW.IF YOU IMPRESS IN FIRST LOOK YOUR CHANCES OF SELECTION IS 50-60%.
"70% CANDIDATES HAVE BEEN REJECTED IN THERE FIRST MEETING BEFORE INTERVIEW"-ACCORDING TO A RESEARCH
WHAT IT CARRIES:-
NON VERBAL CARRIES ALL EXPRESSION,EMOTIONS,ATTITUDE,WAY OF COMMUNICATION.YOU NEED TO SHOW ONLY POSITIVE EMOTIONS,ATTITUDE WHEN YOU FACES AN INTERVIEW.e.g.KEEP SMILING,KEEP SHOW GOOD MANNERS,ANSWERS PROPERLY,SIT PROPERLY.
WHAT DO I DO TO IMPROVE?
MAINLY NONVERBAL ARE INBORN OR ARE LEARNT BY THE TIME OR ENVIORMENT YOU BELONG TO.YOU CANNOT CHANGE IT INSTANTLY BUT YOU PRACTICE SOME DAY BEFORE TO CARRY POSITIVE ATTITUDE & POSITIVE VIBRATION AROUND YOU.
WHAT IS RELEVANT FOR AN INTERVIEWEE:-
1.MODE OF DRESS:-ALWAYS WEAR FORMAL DRESS.YOU CAN CHOOSE FROM LIGHT COLOR SUCH AS:-
FOR MEN:-BLUE/BLACK PANT & WHITE/GREY SHIRTS.
FOR WOMEN:-LIGHT COLORS OF SALWAR SUIT OR SARI OR PANT-SHIRTS ALSO.
2.USE OF TIME:-
TIME IS THE MOST IMPORTANT PART OF INTERVIEW.INTERVIEW NORMALLY LAST FOR 10-15 MIN.IF IT IS INTERESTING THEN IT CAN LAST 25-30 MIN.SO IN 10-15 MIN YOU HAVE TO PUT YOUR IMPRESSION IN THE MIND OF PANEL.YOU YOUR VERY EFFICIENTLY.
3.SPEAKING:-
SPEAK ALWAYS SWIFTLY & SOFTLY WITHOUT ANY HESITATION OR CONFUSION.KEEP YOUR WPM(WORDS PER MINUTE) OPTIMAL AROUND 30-45 WPM.YOUR VOICE PITCH SHOULD BE OPTIMUM SO THAT IT DOESN'T SOUND YOU ARE SHOUTING OR MURMURING.
4.CONFIDENCE:-
SHOW YOUR CONFIDENCE IN YOUR VOICE & ATTITUDE BUT REMEMBER DON'T SHOW OVERCONFIDENCE OTHERS INSTEAD OF IMPRESSION ON THERE MIND YOU CAN CREATE DEPRESSION.
5.SITTING POSTURE:-
YOU SITTING POSTURE SHOULD BE A FORMAL.
BANKING Q&A FOR IBPS CLERK COMMON INTERVIEW
IBPS CLERK COMMON INTERVIEW ARE GOING ON & THEY ARE MAINLY FOCUSING ON BASIC BANKING QUESTION AS THIS IS THERE DAY TO DAY WORK.WE ARE PROVIDING WITH SOME IMPORTANT QUESTIONS THAT WERE ASKED BY SOME OF THE INTERVIEWER IN THE EXAMINATION.
Q1. WHAT IS BANK?
ANS:-BANK IS A FINANCIAL INSTITUTION WHICH ACCEPT DEPOSIT & GIVE LOAN TO NEEDY PEOPLE & IN BETWEEN EARN THE INTEREST DIFFERENCE.
Q2. WHAT ARE DIFFERENT TYPES OF BANK THAT EXIST IN INDIA?
ANS:-
1.NATIONALIZED BANK(OWNED BY GOVT. E.G. VIJAYA BANK,UBI,CANARA BANK)
2.PRIVATE BANKS(OWNED BY PRIVATE ENTITY E.G. ICICI BANK,AXIS BANK)
3.FOREIGN BANKS(OWNED BY FOREIGN BANKS E.G.STANCHART,CITI BANK)
4.RRB(REGIONAL RURAL BANK)
5.CO-OPERATIVE BANKS
6.INDUSTRIAL BANKS ETC.
Q3.WHO IS RBI & WHAT IS ITS ROLE?
ANS:- RBI MEANS RESERVE BANK OF INDIA IT IS THE CENTRAL BANK OR BANK OF BANK IN INDIA.
ROLES:-
a.ISSUE CURRENCY NOTE
b.ACT AS BANKER BANK BOTH FOR BANKS & GOVT.
c.MAINTAIN FOREIGN EXCHANGE RESERVE & CURRENCY RATE FLUCTUATION.
d.MAINTAIN CRR,SLR,REPO,REVERSE REPO RATE VIA MONETARY POLICIES.
Q4.WHAT IS RRB?WHAT IS ITS ROLE?
ANS:-RRB:-REGIONAL RURAL BANK.IT WORK UNDER SUPERVISION OF NABARD
E.G. PRAGATI GRAMEEN BANK ETC.
STAKE:-50% BY CENTRAL GOVT.,35% BY SPONSORED BANK,15% STATE GOVT.
ROLE:-
IT PROVIDE LOAN & ADVANCES TO FARMER IN RURAL AREA FOR AGRICULTURAL DEVELOPMENT.
Q5. WHAT IS CO-OPERATIVE BANK?
ANS:-IT IS THE BANK WHICH PROVIDE LOAN TO THE SME SECTOR INDUSTRIES.
Q6. WHAT IS INDUSTRIAL BANK?
ANS:-BANK WHICH GIVES BIG LOAN TO LARGE SCALE INDUSTRIES E.G. IDBI
Q7. WHAT IS RTGS & NEFT?
ANS:-RTGS:-REAL TIME GROSS SETTELMENT(SETTELED IN REAL TIME MIN. 2LAC+)
NEFT(NATIONAL ELECTRONIC FUND TRANSFER)
Q8.WHAT DIFFERENT TYPES OF ACCOUNT?
ANS:-
a.SAVING ACCOUNT:-THE MOST COMMON FORM OF ACCOUNTS BY WHICH NORMAL TRANSACTION TAKE PLACE.IT WILL GIVE A MODERATE AMOUNT OF INTEREST WITH LIMITED CHEQUE FACILITY.
b.CURRENT ACCOUNT:-IT IS BEST FOR BUSINESS PURPOSE AS THIS ALLOW UNLIMITED TRANSACTION BUT WITH ANY INTEREST PAYMENT ON IT.
c.FIXED DEPOSIT ACCOUNT:-IT GENERALLY PROVIDE WITH HIGH INTEREST RATE WITH FIXED MATURITY PAYMENT AMOUNT & DATE.
d.RECURRING DEPOSIT:-IT IS ACCOUNT BY WHICH A FIXED AMOUNT IS PAID PERIODICALLY.IT PROVIDE WITH SAME RATE OF INTEREST AS FD.
Q9.WHAT ARE DIFFERENT TYPES OF CHEQUE?
ANS:-CHEQUE IS A NEGOTIABLE INSTRUMENT CONTAINING CONDITIONAL PAYMENT TO ONLY BEARER.
a.ACCOUNT PAYEE CHEQUE:-IT IS PAID TO THE BEARER ONLY.
b.POST DATED CHEQUE:-DATE ON CHEQUE BEYOND TODAYS DATE FOR THE BEARER.
c.STALE CHEQUE:-CHEQUE VALID FOR 6 MONTH AFTER THAT THEY ARE INVALID.
d.PAR CHEQUE:-PAYABLE ANYWHERE IN INDIA.
e.MULTICITY CHEQUE:-PAYABLE IN ANY BRANCH OF THE PARTICULAR BANK.
Q10.WHAT IS INFLATION,DEFLATION?
ANS:-INFLATION:-IT LET THE LOOSE OF VALUE OF MONEY.IT IS INDICATION OF THE GENERAL PRICE LEVEL RISE IN ALL THE ESSENTIAL SUBSTANCES.
DEFLATION:-IT WILL LET THE INCREASE IN VALUE OF MONEY.IT IS OPPOSITE OF INFLATION.
Q1. WHAT IS BANK?
ANS:-BANK IS A FINANCIAL INSTITUTION WHICH ACCEPT DEPOSIT & GIVE LOAN TO NEEDY PEOPLE & IN BETWEEN EARN THE INTEREST DIFFERENCE.
Q2. WHAT ARE DIFFERENT TYPES OF BANK THAT EXIST IN INDIA?
ANS:-
1.NATIONALIZED BANK(OWNED BY GOVT. E.G. VIJAYA BANK,UBI,CANARA BANK)
2.PRIVATE BANKS(OWNED BY PRIVATE ENTITY E.G. ICICI BANK,AXIS BANK)
3.FOREIGN BANKS(OWNED BY FOREIGN BANKS E.G.STANCHART,CITI BANK)
4.RRB(REGIONAL RURAL BANK)
5.CO-OPERATIVE BANKS
6.INDUSTRIAL BANKS ETC.
Q3.WHO IS RBI & WHAT IS ITS ROLE?
ANS:- RBI MEANS RESERVE BANK OF INDIA IT IS THE CENTRAL BANK OR BANK OF BANK IN INDIA.
ROLES:-
a.ISSUE CURRENCY NOTE
b.ACT AS BANKER BANK BOTH FOR BANKS & GOVT.
c.MAINTAIN FOREIGN EXCHANGE RESERVE & CURRENCY RATE FLUCTUATION.
d.MAINTAIN CRR,SLR,REPO,REVERSE REPO RATE VIA MONETARY POLICIES.
Q4.WHAT IS RRB?WHAT IS ITS ROLE?
ANS:-RRB:-REGIONAL RURAL BANK.IT WORK UNDER SUPERVISION OF NABARD
E.G. PRAGATI GRAMEEN BANK ETC.
STAKE:-50% BY CENTRAL GOVT.,35% BY SPONSORED BANK,15% STATE GOVT.
ROLE:-
IT PROVIDE LOAN & ADVANCES TO FARMER IN RURAL AREA FOR AGRICULTURAL DEVELOPMENT.
Q5. WHAT IS CO-OPERATIVE BANK?
ANS:-IT IS THE BANK WHICH PROVIDE LOAN TO THE SME SECTOR INDUSTRIES.
Q6. WHAT IS INDUSTRIAL BANK?
ANS:-BANK WHICH GIVES BIG LOAN TO LARGE SCALE INDUSTRIES E.G. IDBI
Q7. WHAT IS RTGS & NEFT?
ANS:-RTGS:-REAL TIME GROSS SETTELMENT(SETTELED IN REAL TIME MIN. 2LAC+)
NEFT(NATIONAL ELECTRONIC FUND TRANSFER)
Q8.WHAT DIFFERENT TYPES OF ACCOUNT?
ANS:-
a.SAVING ACCOUNT:-THE MOST COMMON FORM OF ACCOUNTS BY WHICH NORMAL TRANSACTION TAKE PLACE.IT WILL GIVE A MODERATE AMOUNT OF INTEREST WITH LIMITED CHEQUE FACILITY.
b.CURRENT ACCOUNT:-IT IS BEST FOR BUSINESS PURPOSE AS THIS ALLOW UNLIMITED TRANSACTION BUT WITH ANY INTEREST PAYMENT ON IT.
c.FIXED DEPOSIT ACCOUNT:-IT GENERALLY PROVIDE WITH HIGH INTEREST RATE WITH FIXED MATURITY PAYMENT AMOUNT & DATE.
d.RECURRING DEPOSIT:-IT IS ACCOUNT BY WHICH A FIXED AMOUNT IS PAID PERIODICALLY.IT PROVIDE WITH SAME RATE OF INTEREST AS FD.
Q9.WHAT ARE DIFFERENT TYPES OF CHEQUE?
ANS:-CHEQUE IS A NEGOTIABLE INSTRUMENT CONTAINING CONDITIONAL PAYMENT TO ONLY BEARER.
a.ACCOUNT PAYEE CHEQUE:-IT IS PAID TO THE BEARER ONLY.
b.POST DATED CHEQUE:-DATE ON CHEQUE BEYOND TODAYS DATE FOR THE BEARER.
c.STALE CHEQUE:-CHEQUE VALID FOR 6 MONTH AFTER THAT THEY ARE INVALID.
d.PAR CHEQUE:-PAYABLE ANYWHERE IN INDIA.
e.MULTICITY CHEQUE:-PAYABLE IN ANY BRANCH OF THE PARTICULAR BANK.
Q10.WHAT IS INFLATION,DEFLATION?
ANS:-INFLATION:-IT LET THE LOOSE OF VALUE OF MONEY.IT IS INDICATION OF THE GENERAL PRICE LEVEL RISE IN ALL THE ESSENTIAL SUBSTANCES.
DEFLATION:-IT WILL LET THE INCREASE IN VALUE OF MONEY.IT IS OPPOSITE OF INFLATION.
IMPORTANT FINANCIAL TERM KNOWLEDGE:-GAAR
UNDERSTAND GAAR FULL VERY IMPORTANT FOR IBPS CLERK 2012-13 EXAM:-
What is full form of GAAR ? or What is GAAR ?
The full form of GAAR is : General Anti-Avoidance Rules
What is GAAR in simple terms ?
Tax Avoidance is an area of concern across the world. The rules are framed in different countries to minimize such avoidance of tax. Such rules in simple terms are known as " General Anti Avoidance Rules " or GAAR. Thus GAAR is a set of general rules enacted so as to check the tax avoidance.
Why News for GAAR has been prominent in India in recent times ?
News for GAAR has been in prominence in last few years as Indian Government has taken initiative to introduce GAAR or General Anti Avoidance Rules with a view to increase tax collections.
Background for GAAR :
Lord Tomlin has well said "Every man is entitled to order his affairs so that tax attaching under the appropriate Acts is less than it otherwise would be" (IRC v Duke of Westminster). People adopt various methods so that they can reduce their total tax liability.
The methods adopted to reduce their tax liability can be broadly put into four categories : "Tax Evasion"; "Tax Avoidance", "Tax Mitigation" and "Tax Planning". The difference between these four methods some times becomes blurred owing to the perception of the tax authorities and / or tax payer. [Click Here to read the difference between Tax Evasion", "Tax Avoidnace" , "Tax Mitigation, Tax Planning].
GAAR refers to the second category i.e. tax avoidance.
What is Difference between GAAR and SAAR ?
Anti Avoidance Rules are broadly divided into two categories namely "General" and "Specific". Thus, legislation dealing with "General" rules are termed as GAAR, whereas legislation dealing with "Speicifc avoidnace are termed as "SAAR"
In India till recently SAAR was in vogue i.e. laws were amended to plug specific loopholes as and when they were noticed or were misused enmasse. However, now Indian tax authorities wants to move towards GAAR but are facing severe opposition as tax payers fear that these will be misused by tax authorities by giving arbitrary and wide interpretations. We can say SAAR being more specific provide certainty to taxpayers where as GAAR being general in nature can be misused and is subject to arbitrary interpretation by tax authorities.
GAAR Definition :
GAAR is a concept which generally empowers the Revenue Authorities in a country to deny the tax benefits of transactions or arrangments which do not have any commercial substance or consideration other than achieving the tax benefit. Whenever revenue authorities question such transactions, there is a conflict with the tax payers. Thus, different countries started making rules so that tax can not be avoided by such transactions. Australia introduced such rules way back in 1981. Later on countries like Germany, France, Canada, New Zealand, South Africa etc too opted for GAAR. However, countries like USA and UK have adopted a cautious approach and have not been aggressive in this regard.
Thus, in nutshell we can say that GAAR usually consists of a set of broad rules which are based on general principles to check the potential avoidance of the tax in general, in a form which can not be predicted and thus can not be provided at the time when it is legislated.
GAAR in India
In India, the real discussions on GAAR came to light with the release of draft Direct Taxes Code Bill (popularly known as DTC 2009) on 12th August 2009. It contained the provisions for GAAR. Later on the revised Discussion Paper was released in June 2010, followed by tabling in the Parliament on 30th August, 2010, a formal Bill to enact the law known as the DirectTaxes Code 2010. The same was to be made applicable wef 1st April, 2012. However, owing to negative publicity and pressures from various groups, GAAR was postponed to at least 2013, and was likely to be introduced alongwith the Direct Tax Code (DTC) from 1st April 2013. Moreover, an Expert Committee has been set by Prime Minister (Manmohan Singh) in July 2012 to vet and rework the GAAR guidelines issued in June 2012. The latest reports (September 2012) indicates, it may not be implemented even for 3 years i.e. this will be postponed for 3 years (2016-17). Some of recent developments about GAAR are :-
(a) 16th March, 2012 : Finance Minister, Pranab Mukherjee takes a tough stand and announces that the government will crack down on tax avoidance effective from fiscal year 2012-13
(b) 7th May, 2012 : Finance Minister, Pranab Mukherjee forced to eat his words and agreed to defer GAAR by a year as his announcements spooked oversea investors
(c) 28th June, 2012 : Finance Ministry releases first draft on GAAR; There is wide criticism of the provisions.
(d) 14th July, 2012 : PM, Manmohan Singh, forms review committee under Parthasarathi Shome, for preparing a second draft by 31st August and final guidelines by 30th September, 2012
(e) 1st September, 2012 : Shome Committee recommends to defer GAAR by three years. It also recommends some more investor friendly measures
What is the Basic Criticism of GAAR ? Why GAAR is dreaded ?
Many provisions of GAAR have been criticised by various people. However, the basic criticism of GAAR provisions is that it is considered to be too sweeping in nature and there was a fear (considering poor record of IT authorities in India) that Assessing Officers will apply these provisions in a routine manner (or read misuse) and harass the general honest tax payer too. There is only a fine distinction between Tax Avoidance and Tax Mitigation, as any arrangement to obtain a tax benefit can be considered as an impermissible avoidance arrangement by the assessing officer. Thus, there was a hue and cry to put checks and balances in place to avoid arbitrary application of the provisions by the assessing authorities. It was felt that there is a need for further legislative and administrative safeguards and at least a minimum threshold limit for invoking GAAR should be introduced so that small time tax payers are not harassed.
Two Examples to Understand GAAR provisions : (Source GAAR Committee)
Example 1:
Facts:
A business sets up an undertaking in an under developed area by putting in substantial investment of capital, carries out manufacturing activities therein and claims a tax deduction on sale of such production/manufacturing. Is GAAR applicable in such a case ?
Interpretation:
There is an arrangement and one of the main purposes is a tax benefit. However, this is a case of tax mitigation where the tax payer is taking advantage of a fiscal incentive offered to him by submitting to the conditions and economic consequences of the provisions in the legislation e.g., setting up the business only in the under developed area. Revenue would not invoke GAAR as regards this arrangement.
Example 2:
Facts:
A business sets up a factory for manufacturing in an under developed tax exempt area. It then diverts its production from other connected manufacturing units and shows the same as manufactured in the tax exempt unit (while doing only process of packaging there). Is GAAR applicable in such a case ?
Interpretation:
There is an arrangement and there is a tax benefit, the main purpose or one of the main purposes of this arrangement is to obtain a tax benefit. The transaction lacks commercial substance and there is misuse of the tax provisions. Revenue would invoke GAAR as regards this arrangement.
What is full form of GAAR ? or What is GAAR ?
The full form of GAAR is : General Anti-Avoidance Rules
What is GAAR in simple terms ?
Tax Avoidance is an area of concern across the world. The rules are framed in different countries to minimize such avoidance of tax. Such rules in simple terms are known as " General Anti Avoidance Rules " or GAAR. Thus GAAR is a set of general rules enacted so as to check the tax avoidance.
Why News for GAAR has been prominent in India in recent times ?
News for GAAR has been in prominence in last few years as Indian Government has taken initiative to introduce GAAR or General Anti Avoidance Rules with a view to increase tax collections.
Background for GAAR :
Lord Tomlin has well said "Every man is entitled to order his affairs so that tax attaching under the appropriate Acts is less than it otherwise would be" (IRC v Duke of Westminster). People adopt various methods so that they can reduce their total tax liability.
The methods adopted to reduce their tax liability can be broadly put into four categories : "Tax Evasion"; "Tax Avoidance", "Tax Mitigation" and "Tax Planning". The difference between these four methods some times becomes blurred owing to the perception of the tax authorities and / or tax payer. [Click Here to read the difference between Tax Evasion", "Tax Avoidnace" , "Tax Mitigation, Tax Planning].
GAAR refers to the second category i.e. tax avoidance.
What is Difference between GAAR and SAAR ?
Anti Avoidance Rules are broadly divided into two categories namely "General" and "Specific". Thus, legislation dealing with "General" rules are termed as GAAR, whereas legislation dealing with "Speicifc avoidnace are termed as "SAAR"
In India till recently SAAR was in vogue i.e. laws were amended to plug specific loopholes as and when they were noticed or were misused enmasse. However, now Indian tax authorities wants to move towards GAAR but are facing severe opposition as tax payers fear that these will be misused by tax authorities by giving arbitrary and wide interpretations. We can say SAAR being more specific provide certainty to taxpayers where as GAAR being general in nature can be misused and is subject to arbitrary interpretation by tax authorities.
GAAR Definition :
GAAR is a concept which generally empowers the Revenue Authorities in a country to deny the tax benefits of transactions or arrangments which do not have any commercial substance or consideration other than achieving the tax benefit. Whenever revenue authorities question such transactions, there is a conflict with the tax payers. Thus, different countries started making rules so that tax can not be avoided by such transactions. Australia introduced such rules way back in 1981. Later on countries like Germany, France, Canada, New Zealand, South Africa etc too opted for GAAR. However, countries like USA and UK have adopted a cautious approach and have not been aggressive in this regard.
Thus, in nutshell we can say that GAAR usually consists of a set of broad rules which are based on general principles to check the potential avoidance of the tax in general, in a form which can not be predicted and thus can not be provided at the time when it is legislated.
GAAR in India
In India, the real discussions on GAAR came to light with the release of draft Direct Taxes Code Bill (popularly known as DTC 2009) on 12th August 2009. It contained the provisions for GAAR. Later on the revised Discussion Paper was released in June 2010, followed by tabling in the Parliament on 30th August, 2010, a formal Bill to enact the law known as the DirectTaxes Code 2010. The same was to be made applicable wef 1st April, 2012. However, owing to negative publicity and pressures from various groups, GAAR was postponed to at least 2013, and was likely to be introduced alongwith the Direct Tax Code (DTC) from 1st April 2013. Moreover, an Expert Committee has been set by Prime Minister (Manmohan Singh) in July 2012 to vet and rework the GAAR guidelines issued in June 2012. The latest reports (September 2012) indicates, it may not be implemented even for 3 years i.e. this will be postponed for 3 years (2016-17). Some of recent developments about GAAR are :-
(a) 16th March, 2012 : Finance Minister, Pranab Mukherjee takes a tough stand and announces that the government will crack down on tax avoidance effective from fiscal year 2012-13
(b) 7th May, 2012 : Finance Minister, Pranab Mukherjee forced to eat his words and agreed to defer GAAR by a year as his announcements spooked oversea investors
(c) 28th June, 2012 : Finance Ministry releases first draft on GAAR; There is wide criticism of the provisions.
(d) 14th July, 2012 : PM, Manmohan Singh, forms review committee under Parthasarathi Shome, for preparing a second draft by 31st August and final guidelines by 30th September, 2012
(e) 1st September, 2012 : Shome Committee recommends to defer GAAR by three years. It also recommends some more investor friendly measures
What is the Basic Criticism of GAAR ? Why GAAR is dreaded ?
Many provisions of GAAR have been criticised by various people. However, the basic criticism of GAAR provisions is that it is considered to be too sweeping in nature and there was a fear (considering poor record of IT authorities in India) that Assessing Officers will apply these provisions in a routine manner (or read misuse) and harass the general honest tax payer too. There is only a fine distinction between Tax Avoidance and Tax Mitigation, as any arrangement to obtain a tax benefit can be considered as an impermissible avoidance arrangement by the assessing officer. Thus, there was a hue and cry to put checks and balances in place to avoid arbitrary application of the provisions by the assessing authorities. It was felt that there is a need for further legislative and administrative safeguards and at least a minimum threshold limit for invoking GAAR should be introduced so that small time tax payers are not harassed.
Two Examples to Understand GAAR provisions : (Source GAAR Committee)
Example 1:
Facts:
A business sets up an undertaking in an under developed area by putting in substantial investment of capital, carries out manufacturing activities therein and claims a tax deduction on sale of such production/manufacturing. Is GAAR applicable in such a case ?
Interpretation:
There is an arrangement and one of the main purposes is a tax benefit. However, this is a case of tax mitigation where the tax payer is taking advantage of a fiscal incentive offered to him by submitting to the conditions and economic consequences of the provisions in the legislation e.g., setting up the business only in the under developed area. Revenue would not invoke GAAR as regards this arrangement.
Example 2:
Facts:
A business sets up a factory for manufacturing in an under developed tax exempt area. It then diverts its production from other connected manufacturing units and shows the same as manufactured in the tax exempt unit (while doing only process of packaging there). Is GAAR applicable in such a case ?
Interpretation:
There is an arrangement and there is a tax benefit, the main purpose or one of the main purposes of this arrangement is to obtain a tax benefit. The transaction lacks commercial substance and there is misuse of the tax provisions. Revenue would invoke GAAR as regards this arrangement.
IMPORTANT FINANCIAL TERM FOR IBPS CLERK
What is the full form of FDI :
The full form of FDI is Foreign Direct Investment.
What is the meaning of FDI ?
The Foreign Direct Investment means “cross border investment made by a resident in one economy in an enterprise in another economy, with the objective of establishing a lasting interest in the investee economy.
FDI is also described as “investment into the business of a country by a company in another country”. Mostly the investment is into production by either buying a company in the target country or by expanding operations of an existing business in that country”. Such investments can take place for many reasons, including to take advantage of cheaper wages, special investment privileges (e.g. tax exemptions) offered by the country.
Why Countries Seek FDI ?
(a) Domestic capital is inadequate for purpose of economic growth;
(b) Foreign capital is usually essential, at least as a temporary measure, during the period when the capital market is in the process of development;
(c) Foreign capital usually brings it with other scarce productive factors like technical know how, business expertise and knowledge
What are the major benefits of FDI :
(a) Improves forex position of the country;
(b) Employment generation and increase in production ;
(c) Help in capital formation by bringing fresh capital;
(d) Helps in transfer of new technologies, management skills, intellectual property
(e) Increases competition within the local market and this brings higher efficiencies
(f) Helps in increasing exports;
(g) Increases tax revenues
Why FDI is Opposed by Local People or Disadvantages of FDI :
(a) Domestic companies fear that they may lose their ownership to overseas company
(b) Small enterprises fear that they may not be able to compete with world class large companies and may ultimately be edged out of business;
(c) Large giants of the world try to monopolise and take over the highly profitable sectors;
(d) Such foreign companies invest more in machinery and intellectual property than in wages of the local people;
(e) Government has less control over the functioning of such companies as they usually work as wholly owned subsidiary of an overseas company;
Brief Latest Developments on FDI (all sectors including retail):-
2012 – October: In the second round of economic reforms, the government cleared amendments to raise the FDI cap
(a) in the insurance sector from 26% to 49%;
(b) in the pension sector it approved a 26 percent FDI;
Now, Indian Parliament will have to give its approval for the final shape,"
2012 - September : The government approved the
(a) Allowed 51% foreign investment in multi-brand retail,
(b) Relaxed FDI norms for civil aviation and broadcasting sectors. – FDI cap in Broadcasting was raised to 74% from 49%;
(c) Allowed foreign investment in power exchanges
2011 – December :
(i) The Indian government removed the 51 percent cap on FDI into single-brand retail outlets and thus opened the market fully to foreign investors by permitting 100 percent foreign investment in this area.
Explain the forms in which business can be conducted by a foreign company in India
A foreign company planning to set up business operations in India may:
Incorporate a company under the Companies Act, 1956, as a Joint Venture or a Wholly Owned Subsidiary.
Set up a Liaison Office / Representative Office or a Project Office or a Branch Office of the foreign company
What is the procedure for receiving Foreign Direct Investment in an Indian company?
An Indian company may receive Foreign Direct Investment under the two routes as given under:
i. Automatic Route
FDI is allowed under the automatic route without prior approval either of the Government or the Reserve Bank of India in all activities/sectors as specified in the consolidated FDI Policy, issued by the Government of India from time to time.
ii. Government Route
FDI in activities not covered under the automatic route requires prior approval of the Government which are considered by the Foreign Investment Promotion Board (FIPB), Department of Economic Affairs, Ministry of Finance.
What is Scope of FDI in India? Why World is looking towards India for Foreign Direct Investments :
India is the 3rd largest economy of the world in terms of purchasing power parity and thus looks attractive to the world for FDI. Even Government of India, has been trying hard to do away with the FDI caps for majority of the sectors, but there are still critical areas like retailing and insurance where there is lot of opposition from local Indians / Indian companies.
Some of the major economic sectors where India can attract investment are as follows:-
Telecommunications
Apparels
Information Technology
Pharma
Auto parts
Jewelry
Chemicals
In last few years, certainly foreign investments have shown upward trends but the strict FDI policies have put hurdles in the growth in this sector. India is however set to become one of the major recipients of FDI in the Asia-Pacific region because of the economic reforms for increasing foreign investment and the deregulation of this important sector. India has technical expertise and skilled managers and a growing middle class market of more than 300 million and this represents an attractive market.
Background and Recent Developments for FDI in Retail Sector which has raised lot of controversies in political circles :
As part of the economic liberalization process set in place by the Industrial Policy of 1991, the Indian government has opened the retail sector to FDI slowly through a series of steps:
1995 : World Trade Organisation’s (WTO) General Agreement on Trade in Services, which includes both wholesale and retailing services, came into effect
1997 : FDI in cash and carry (wholesale) with 100% rights allowed under the government approval route;
2006 : FDI in cash and carry (wholesale) was brought under automatic approval route; Upto 51% investment in single brand retail outlet permitted, subject to Press Note 3 (2006 series)
2011 : 100% FDI in Single Brand Retail allowed’
2012 : On Sept. 13, Government approved the allowance of 51 percent foreign investment in multi-brand retail, [ It also relaxed FDI norms for civil aviation and broadcasting sectors]’
FDI is prohibited under the Government Route as well as the Automatic Route in the following sectors:
i) Atomic Energy
ii) Lottery Business
iii) Gambling and Betting
iv) Business of Chit Fund
v) Nidhi Company
vi) Agricultural (excluding Floriculture, Horticulture, Development of seeds, Animal Husbandry, Pisciculture and cultivation of vegetables, mushrooms, etc. under controlled conditions and services related to agro and allied sectors) and Plantations activities (other than Tea Plantations)
vii) Housing and Real Estate business (except development of townships, construction of residential/commercial premises, roads or bridges to the extent specified in notification
viii) Trading in Transferable Development Rights (TDRs).
ix) Manufacture of cigars , cheroots, cigarillos and cigarettes , of tobacco or of tobacco substitutes.
Name the authorities Dealing With Foreign Investment:
(a) Foreign Investment Promotion Board (popularly known as FIPB) : The Board is responsible for expeditious clearance of FDI proposals and review of the implementation of cleared proposals. It also undertake investment promotion activities and issue and review general and sectoral policy guidelines;
(b) Secretariat for Industrial Assistance (SIA) : It acts as a gateway to industrial investment in India and assists the entrepreneurs and investors in setting up projects. SIA also liaison with other government bodies to ensure necessary clearances;
(c) Foreign Investment Implementation Authority (FIIA) : The authority works for quick implementation of FDI approvals and resolution of operational difficultieis faced by foreign investors;
(d) Investment Commission
(e) Project Approval Board
(f) Reserve Bank of India
What are the instruments for receiving Foreign Direct Investment in an Indian company?
Foreign investment is reckoned as FDI only if the investment is made in equity shares , fully and mandatorily convertible preference shares and fully and mandatorily convertible debentures with the pricing being decided upfront as a figure or based on the formula that is decided upfront. Any foreign investment into an instrument issued by an Indian company which: gives an option to the investor to convert or not to convert it into equity or does not involve upfront pricing of the instruments a date would be reckoned as ECB and would have to comply with the ECB guidelines.
The FDI policy provides that the price/ conversion formula of convertible capital instruments should be determined upfront at the time of issue of the instruments. The price at the time of conversion should not in any case be lower than the fair value worked out, at the time of issuance of such instruments, in accordance with the extant FEMA regulations [the DCF method of valuation for the unlisted companies and valuation in terms of SEBI (ICDR) Regulations, for the listed companies].
What are the Total Inflows of FDI in India :
a. For the FY 2012-13 (for the month of July, 2012) was US$ 1.47 billion.
b. Amount of FDI equity inflows for the financial year 2012-13 (from April 2012 to July 2012) stood at US$ 5.90 billion.
c. Cumulative amount of FDI (from April 2000 to July 2012) into India stood at US$ 176.76 billion
(A) 26% FDI is permitted in
· Defence
· Newspaper and media **
· Petroleum refining
· Pension sector (allowed in October 2012 as per cabinet decision)
(B)49% FDI is permitted in :
Banking
Cable network**
DTH **
Infrastructure investment
Telecom
Insurance (Enhanced from 26% to 49% in October, 2012)
49% (FDI & FII) in power exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations 2010 subject to an FDI limit of 26 per cent and an FII limit of 23 per cent of the paid-up capital is now permissible. [Permitted in September 2012]
(C ) 51% is Permitted in
Multi-Brand Retail (Since September 2012)
Petro-pipelines
(D) 74% FDI is permitted in
Atomic minerals
Science Magazines /Journals
Petro marketing
Coal and Lignite mines
Telecom
(E)100% FDI is permitted in
Single Brand Retail (Increased to 100% from 51% in December 2011).
Advertizement
Airports
Cold-storage
BPO/Call centres
E-commerce
Energy (except atomic)
export trading house
Films
Hotel, tourism
Metro train
Mines (gold, silver)
Petroleum exploration
Pharmaceuticals
Pollution control
Postal service
Roads, highways, ports.
Township
Wholesale trading.
The full form of FDI is Foreign Direct Investment.
What is the meaning of FDI ?
The Foreign Direct Investment means “cross border investment made by a resident in one economy in an enterprise in another economy, with the objective of establishing a lasting interest in the investee economy.
FDI is also described as “investment into the business of a country by a company in another country”. Mostly the investment is into production by either buying a company in the target country or by expanding operations of an existing business in that country”. Such investments can take place for many reasons, including to take advantage of cheaper wages, special investment privileges (e.g. tax exemptions) offered by the country.
Why Countries Seek FDI ?
(a) Domestic capital is inadequate for purpose of economic growth;
(b) Foreign capital is usually essential, at least as a temporary measure, during the period when the capital market is in the process of development;
(c) Foreign capital usually brings it with other scarce productive factors like technical know how, business expertise and knowledge
What are the major benefits of FDI :
(a) Improves forex position of the country;
(b) Employment generation and increase in production ;
(c) Help in capital formation by bringing fresh capital;
(d) Helps in transfer of new technologies, management skills, intellectual property
(e) Increases competition within the local market and this brings higher efficiencies
(f) Helps in increasing exports;
(g) Increases tax revenues
Why FDI is Opposed by Local People or Disadvantages of FDI :
(a) Domestic companies fear that they may lose their ownership to overseas company
(b) Small enterprises fear that they may not be able to compete with world class large companies and may ultimately be edged out of business;
(c) Large giants of the world try to monopolise and take over the highly profitable sectors;
(d) Such foreign companies invest more in machinery and intellectual property than in wages of the local people;
(e) Government has less control over the functioning of such companies as they usually work as wholly owned subsidiary of an overseas company;
Brief Latest Developments on FDI (all sectors including retail):-
2012 – October: In the second round of economic reforms, the government cleared amendments to raise the FDI cap
(a) in the insurance sector from 26% to 49%;
(b) in the pension sector it approved a 26 percent FDI;
Now, Indian Parliament will have to give its approval for the final shape,"
2012 - September : The government approved the
(a) Allowed 51% foreign investment in multi-brand retail,
(b) Relaxed FDI norms for civil aviation and broadcasting sectors. – FDI cap in Broadcasting was raised to 74% from 49%;
(c) Allowed foreign investment in power exchanges
2011 – December :
(i) The Indian government removed the 51 percent cap on FDI into single-brand retail outlets and thus opened the market fully to foreign investors by permitting 100 percent foreign investment in this area.
Explain the forms in which business can be conducted by a foreign company in India
A foreign company planning to set up business operations in India may:
Incorporate a company under the Companies Act, 1956, as a Joint Venture or a Wholly Owned Subsidiary.
Set up a Liaison Office / Representative Office or a Project Office or a Branch Office of the foreign company
What is the procedure for receiving Foreign Direct Investment in an Indian company?
An Indian company may receive Foreign Direct Investment under the two routes as given under:
i. Automatic Route
FDI is allowed under the automatic route without prior approval either of the Government or the Reserve Bank of India in all activities/sectors as specified in the consolidated FDI Policy, issued by the Government of India from time to time.
ii. Government Route
FDI in activities not covered under the automatic route requires prior approval of the Government which are considered by the Foreign Investment Promotion Board (FIPB), Department of Economic Affairs, Ministry of Finance.
What is Scope of FDI in India? Why World is looking towards India for Foreign Direct Investments :
India is the 3rd largest economy of the world in terms of purchasing power parity and thus looks attractive to the world for FDI. Even Government of India, has been trying hard to do away with the FDI caps for majority of the sectors, but there are still critical areas like retailing and insurance where there is lot of opposition from local Indians / Indian companies.
Some of the major economic sectors where India can attract investment are as follows:-
Telecommunications
Apparels
Information Technology
Pharma
Auto parts
Jewelry
Chemicals
In last few years, certainly foreign investments have shown upward trends but the strict FDI policies have put hurdles in the growth in this sector. India is however set to become one of the major recipients of FDI in the Asia-Pacific region because of the economic reforms for increasing foreign investment and the deregulation of this important sector. India has technical expertise and skilled managers and a growing middle class market of more than 300 million and this represents an attractive market.
Background and Recent Developments for FDI in Retail Sector which has raised lot of controversies in political circles :
As part of the economic liberalization process set in place by the Industrial Policy of 1991, the Indian government has opened the retail sector to FDI slowly through a series of steps:
1995 : World Trade Organisation’s (WTO) General Agreement on Trade in Services, which includes both wholesale and retailing services, came into effect
1997 : FDI in cash and carry (wholesale) with 100% rights allowed under the government approval route;
2006 : FDI in cash and carry (wholesale) was brought under automatic approval route; Upto 51% investment in single brand retail outlet permitted, subject to Press Note 3 (2006 series)
2011 : 100% FDI in Single Brand Retail allowed’
2012 : On Sept. 13, Government approved the allowance of 51 percent foreign investment in multi-brand retail, [ It also relaxed FDI norms for civil aviation and broadcasting sectors]’
FDI is prohibited under the Government Route as well as the Automatic Route in the following sectors:
i) Atomic Energy
ii) Lottery Business
iii) Gambling and Betting
iv) Business of Chit Fund
v) Nidhi Company
vi) Agricultural (excluding Floriculture, Horticulture, Development of seeds, Animal Husbandry, Pisciculture and cultivation of vegetables, mushrooms, etc. under controlled conditions and services related to agro and allied sectors) and Plantations activities (other than Tea Plantations)
vii) Housing and Real Estate business (except development of townships, construction of residential/commercial premises, roads or bridges to the extent specified in notification
viii) Trading in Transferable Development Rights (TDRs).
ix) Manufacture of cigars , cheroots, cigarillos and cigarettes , of tobacco or of tobacco substitutes.
Name the authorities Dealing With Foreign Investment:
(a) Foreign Investment Promotion Board (popularly known as FIPB) : The Board is responsible for expeditious clearance of FDI proposals and review of the implementation of cleared proposals. It also undertake investment promotion activities and issue and review general and sectoral policy guidelines;
(b) Secretariat for Industrial Assistance (SIA) : It acts as a gateway to industrial investment in India and assists the entrepreneurs and investors in setting up projects. SIA also liaison with other government bodies to ensure necessary clearances;
(c) Foreign Investment Implementation Authority (FIIA) : The authority works for quick implementation of FDI approvals and resolution of operational difficultieis faced by foreign investors;
(d) Investment Commission
(e) Project Approval Board
(f) Reserve Bank of India
What are the instruments for receiving Foreign Direct Investment in an Indian company?
Foreign investment is reckoned as FDI only if the investment is made in equity shares , fully and mandatorily convertible preference shares and fully and mandatorily convertible debentures with the pricing being decided upfront as a figure or based on the formula that is decided upfront. Any foreign investment into an instrument issued by an Indian company which: gives an option to the investor to convert or not to convert it into equity or does not involve upfront pricing of the instruments a date would be reckoned as ECB and would have to comply with the ECB guidelines.
The FDI policy provides that the price/ conversion formula of convertible capital instruments should be determined upfront at the time of issue of the instruments. The price at the time of conversion should not in any case be lower than the fair value worked out, at the time of issuance of such instruments, in accordance with the extant FEMA regulations [the DCF method of valuation for the unlisted companies and valuation in terms of SEBI (ICDR) Regulations, for the listed companies].
What are the Total Inflows of FDI in India :
a. For the FY 2012-13 (for the month of July, 2012) was US$ 1.47 billion.
b. Amount of FDI equity inflows for the financial year 2012-13 (from April 2012 to July 2012) stood at US$ 5.90 billion.
c. Cumulative amount of FDI (from April 2000 to July 2012) into India stood at US$ 176.76 billion
(A) 26% FDI is permitted in
· Defence
· Newspaper and media **
· Petroleum refining
· Pension sector (allowed in October 2012 as per cabinet decision)
(B)49% FDI is permitted in :
Banking
Cable network**
DTH **
Infrastructure investment
Telecom
Insurance (Enhanced from 26% to 49% in October, 2012)
49% (FDI & FII) in power exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations 2010 subject to an FDI limit of 26 per cent and an FII limit of 23 per cent of the paid-up capital is now permissible. [Permitted in September 2012]
(C ) 51% is Permitted in
Multi-Brand Retail (Since September 2012)
Petro-pipelines
(D) 74% FDI is permitted in
Atomic minerals
Science Magazines /Journals
Petro marketing
Coal and Lignite mines
Telecom
(E)100% FDI is permitted in
Single Brand Retail (Increased to 100% from 51% in December 2011).
Advertizement
Airports
Cold-storage
BPO/Call centres
E-commerce
Energy (except atomic)
export trading house
Films
Hotel, tourism
Metro train
Mines (gold, silver)
Petroleum exploration
Pharmaceuticals
Pollution control
Postal service
Roads, highways, ports.
Township
Wholesale trading.
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