The Budget theme of Transform, Energise and Clean India (TEC) aims to address issues with several core areas such as rural growth, poverty alleviation, infrastructure development and corruption while showing the government’s commitment towards prudent fiscal management and tax administration. The Finance Minister has done an exceptional job in maintaining the fiscal deficit at 3.2% of the GDP despite increased spending on the rural economy and infrastructure developments to spur economic growth in the backdrop of demonetisation.
Pursuant to the introduction of the Indian Accounting Standards (Ind AS) vide notification dated 16 February 2015, by the Ministry of Corporate Affairs (MCA), companies covered by Ind AS implementation roadmap (corporate roadmap) have already implemented Ind AS on 1 April 2016 or are planning to implement it in the next accounting year. MCA has also notified a separate roadmap for Ind AS implementation for banks, insurance companies and NonBanking Financial Companies (NBFCs). The date for implementation of Ind AS for these companies is specified in the respective roadmap.
The Finance Act, 2015 had amended the criteria for companies to be qualified as ‘resident in India’. According to the amended definition, a company would be a resident in India if it is an Indian company or its ‘Place of Effective Management’ (POEM), in that year, is in India. POEM was defined to mean a place where key management and commercial decisions...