Reliance's Tax Advisor & ex-IRS Officer Sandeep Tandon dies of cancer Bad News for NDT-Delhi High Court decides to hear paternity suit against Tiwari filed by Rohit Shekhar, who claims that he is biological son of ND Tiwari Haryana Assembly okays Special Economic Zone (Amendment) Bill, 2010, which seeks to provide for refund of stamp duty on registration of land collected from developers of SEZs in the state before notification of SEZ Microsoft loses 106 million dollar Patent verdict Sensex hits 17500 Points in early trading FM says inflation may hit double digit in March Authority for Advance Ruling rules the payments made to ABB Research Ltd., Zurich towards the applicant's share of the cost incurred in respect of R&D activities are not liable to be taxed under the Income Tax Act, 1961 as business income in the absence of permanent establishment in India, having regard to Art.7 of the Tax Treaty- Nor can it be subjected to tax as royalty or fees for technical services under Article 12 of the Treaty-AIT-2010-94-AAR Tariff Value for import of Brass Scrap is 3801 and for poppy seeds 4256-Customs Non-Tariff Notification No. 20 No approval for procurement of service “Rental” of immovable property for office outside the Special Economic Zone/FTWZ can be given-SEZ Instruction No. 49 on Clarifications on FTWZ issues Consolidated list of default authorized operations which can be undertaken by the developer/approved co-developer by default from the date of notification-SEZ Instruction No.50 Himachal Government hikes VAT from 4 per cent to 5 per cent on all items, except edible oils and foodgrains Authority for Advance Ruling rules no capital gains accrued or arose at the time of conversion of partnership firm into a private limited company under Part IX of the Companies Act and therefore, notwithstanding the non-compliance with clause (d) of proviso to Section 47(xiii) of the Income Tax Act, by reason of premature transfer of shares, the said company is not liable to pay capital gains tax-AIT-2010-93-AAR Authority for Advance Ruling rules if the purchasers are non-residents other than the applicant, the applicant is liable to pay tax in India on the amount received by it for the support services rendered through the branch office in India-AIT-2010-92 -AAR Jurisdiction of Dispute Resolution Panel-Income Tax Order No.3 Employment of washing process in the manufacture of agglomerates etc from imported plastic waste and scrap-SEZ Instruction No.48 Haryana Government imposes surcharge ranging from 0.25 per cent to 0.7 per cent on VAT Service Tax Notification No. 17/2010 which exempts the taxable service providing packaged or canned software, intended for single use and packed accordingly amended-Service Tax Notification No.18 Procurement, Import and Export of Prohibited and Restricted Goods by SEZ Units-SEZ Instruction No. 47 Authority for Advance Ruling rules the amounts received/receivable by Technopromexport from NTPC under contract for Offshore supply of all plant and equipment including mandatory spares are not liable to tax in India under the provisions of the Income-tax Act, 1961 and DTAA between India and Russia-AIT-2010-79-AAR

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The Man Who Saw Tomorrow

AIT News Network MUMBAI.

You need to have vision like Ashok Wadhwa to make money. Ashok Wadhwa Founder and Managing Partner of RSM Ambit, known as Big Five Auditing and Tax Advisory Firm, is all set to be richer by over Rs 100 Crore according to market grapevine after selling Tax Advisory Practice of the Firm founded by him to Price Waterhouse Coopers for an undisclosed amount the details of which are yet to be announced. Role Model of Consultants Ashok Wadhwa was one of the first CAs to join Arthur Anderson in Mumbai in 1989 where he headed its Tax Advisory Practice till 1996 when he resigned as Managing Partner of Arthur Anderson to found his dream Company Ambit Corporate Finance.

When Ashok Wadhwa moved from Anderson ; the team and clients of Anderson also moved with him. Due to his aggressive hiring strategy; several Top Tax Experts and Consultants moved from other Big 4 Companies to RSM which gradually came to be known as the biggest poacher of the field and even several Partners of Big 4 moved to RSM when they were offered the Pay Packages which they could not resist. And when the Experts moved, clients also moved to RSM with them though the strategy was not always successful as in many cases RSM played blind on Experts offering them Packages of even upto Rs 2 Crore Per Annum having an eye on the clients of Big 4 who may be moving with them but even if 5 Accounts of Big 4 moved to RSM; it was considered a Positive step. Recently a Tax Partner of Big 4 was hired for Rs 1 Crore but he failed to move with the clients as the Company could not encash his movement by a planned strategy.

The merger of PWC and RSM has changed the equation in Tax Advisory Field and KPMG & Deloitte have to remain confined to Third and Fourth place in the Advisory Field after aggressive acquisition of Ambit RSM’s Practice by the dark horse PWC. Though PWC has not been aggressive in hiring Senior Tax Experts as it could not poach the Experts due to its lower Packages; its dependence on Junior Experts was proving to be a drawback in desired growth of its Tax Advisory Practice in India and it was losing potential clients to its competitors in global bidding. But now with vision of Visionary Ashok Wadhwa ; PWC may also go for a shift in its hiring strategy.

The merger of PWC and Ambit RSM may also take a toll on the Pay Packages of RSM Partners and Managers who are getting much more than their PWC counterparts. There are many Partners who are getting almost double of what their counterparts in PWC may be taking. Post merger; their packages may be clipped and renegotiated to be in tune with PWC Packages. Though there is not going to be any lay offs ; the role assigned to existing Ambit RSM Consultants may depend on the strategy of PWC.

After merger of Arthur Anderson and Ernst & Young; Ernst & Young People called the shot and Big 3 of Anderson floated their own outfit. After merger of Ambit RSM with PWC; PWC people are naturally going to call the shot. Those who were just Managers in PWC and are now Director in RSM may not be comfortable in merged entity and may look for other options if they are asked to compromise with their Position, Role and Packages.