10 BCASNewsletter - Bombay Chartered Accountants' … I write this communication, a fast unto death...

BCAS Newsletter I April 2011 1

Vice-President’s Communiqué

Harnessing Talent and Providing Quality Service

Vol. 14 n No. 1 n April 2011

n A Monthly Newsletter of the Bombay Chartered Accountants’ Society

For Members only. For Private Circulation only. Price: ` 10

BCASNewsletterDear Member,

As I write this communication, a fast unto death by Anna Hazare has just concluded. The agitation for the Jan Lokpal Bill received overwhelming response from the masses. There could be some differences as regards how the bill should take shape, but there can be no two opinions about the fact that there is seething anger and frustration among the people in regard to the all-pervasive corruption in public life. I hope some good sense prevails in the corridors of power. While the Jan Lokpal Bill may not eradicate corruption, it will be a big step in empowering people to fight this menace.

On 2nd April the entire nation celebrated a historic win in the Cricket World Cup. We all stood united in savouring the moment. The enthusiasm of all those who thronged the streets was contagious. Without being a spoilsport, I would only say that if even a small percentage of this enthusiasm was shown by everyone at their workplaces, India would be a different nation. I congratulate our cricket heroes and hope that we will remain on top of the world for a long time.

Though the Finance Bill 2011 did not contain many amendments on the direct tax front, the point of taxation rules in respect of service tax which were proposed would have caused a number of problems. Fortunately, after the Society along with other institutions made a strong representation, the applicability has been postponed and we Chartered Accountants along with some other professions have been exempted from the application of the rules.

At the Society the International Tax Committee organised an intensive course on transfer pricing. Over the last decade or so, transfer pricing has gained substantial importance. As India increases its global presence this subject will have great significance for all of us. The course has received tremendous response.

The Indirect Tax Committee organised a unique workshop on “Valuation under Indirect Tax Laws” on Saturday, 19th March 2011 at

Lecture Meeting

J. W. Mariott which elicited good response. On the same day, for the first time, a lecture meeting was held in the central suburb, Mulund, on the subject of “Recent Developments in TDS” which was addressed by Mr. Mahendra Sanghvi and well attended by members.

Summer has arrived and we have started feeling the heat. With the onset of the summer one always prays for a good monsoon, which in any case is extremely important for the economy as well. The weathermen have forecast a satisfactory monsoon and that should be a relief for all of us.Many of us will be taking a break before the season of audit and tax returns commences. I wish members and their families a happy holiday!

With warm regards, Yours truly,

CA. Pradip Thanawala

Venue I Gulmohar Hall, BCAS, 7, Jolly Bhavan No. 2, Ground Floor, New Marine Lines, Mumbai - 400020Day, Date & Time I Wednesday, 20th April 2011, 6.15 p.m.*Speaker I CA. Anup P. ShahSubject I FDI Policy plus Industry-Specific Issues (Real Estate, NBFC and Training Sectors)

Venue I Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai - 400020Day, Date & Time I Wednesday, 4th May 2011, 6. 15 p.m.*Speaker I CA P. R. RameshSubject I Recent Amendments in Schedule VI of the Companies Act, 1956* Fellowship over a cup of tea at 5.45 p.m.

7, Jolly Bhavan No. 2, New Marine Lines, Mumbai-400020. Tel. Nos. : 61377600; fax: 61377666 Email : [email protected]; Website : www.bcasonline.org

PROGRAMMES AT A GLANCE

President: Mayur Nayak, 93242 71980;[email protected]

Vice-President: Pradip Thanawala, 98200 45632; [email protected]

Hon. Jt. Secretaries: Deepak Shah, 98201 48536; [email protected] Nitin Shingala, 98200 57694; [email protected]

Hon. Treasurer: Raman Jokhakar, 98208 77976, [email protected]

Study Group on International Economics .................................... 21-04-2011 ................... Lotus Hall, BCAS Premises .................................................................................. 3

Certificate Course for Professional Accountant ........................... 22-04-2011..................... BCAS / HR College .............................................................................................. 10

Full Day Seminar on Charitable Trusts ........................................ 23-04-2011..................... M. C. Ghia Hall, Kalaghoda ................................................................................. 2

The Power Summit ..................................................................... 29-04-2011..................... MCA Club, Bandra Kurla Complex, Bandra East, Mumbai .................................. 7

BCAS Students Annual Day Program .......................................... 11-06-2011..................... Direct I-Plex, Andheri (W) ................................................................................... 4

5th Residential Study Course on Service Tax & VAT .................... 24-06-2011..................... The Corinthians, Pune, Nyati County, NIBM Annexe, Pune ................................ 3

International Tax & Finance Conference, 2011 ............................ 12-08-2011..................... To be announced ................................................................................................ 3

Lecture Meetings ......................................................................... 20-04-2011 & 04-05-2011 ............................................................................................................................. 1

BCAS Newsletter I April 20112

Right to Information ClinicBCAS Foundation operates a Right to Information (RTI) Clinic on regular basis. RTI Clinic is operated by Mrs. Hema Sampat, a research scholar on the subject of RTI, Mr. A. K. Asher, Adv. & RTI activist and CA. Narayan Varma, Past President, BCAS.

The Clinic provides help and guidance to BCAS members as also to non-members, i.e., all citizens, for making applications under the RTI Act and also assists in resolving any related difficulties on the subject of RTI.

The RTI Clinic operates on every 2nd, 3rd and 4th Saturday from BCAS’s office – 11 a.m. to 1 p.m.

The next RTI Clinic days accordingly are 23rd April 2011 and 14th, 21st and 28th May 2011. Please call the Society’s office (Ms. Shernaaz: 61377600) to obtain a prior appointment.

Charitable Trust ClinicThe next Charitable Trust Clinic will be held on Friday, 6th May 2011 from 5 p.m. to 7 p.m. in the library room of BCA Society at New Marine Lines.

Chartered Accountants and Trustees interested in having their queries solved are requested to call the Society’s office (Mrs. Mistry: 61377620) and obtain a prior appointment, latest by noon on the day of the Clinic. Querists are also advised to bring along relevant papers like trust deeds, audited accounts, etc.

Panel of Advisors:CA. Ratanshaw Damanwala,CA. Shariq Contractor,CA. Gautam Nayak,CA. Anil Sathe CA. Atul Shah

Accounts & Audit ClinicThe next Accounts & Audit Clinic will be held on Saturday, 7th May 2011, from 10.30 a.m. to 11.30 a.m. in the library room of BCA Society at New Marine Lines.

Persons interested in having their queries pertaining to accounting and auditing issues solved, are requested to send the queries by e-mail to [email protected] one week in advance and call the Society’s office (Mr. Rajaram: 61377613) to obtain prior appointment, at least a day before the day of the Clinic. Please note that the Panel will not answer any queries pertaining to tax issues.

Panel of Advisors:CA. Sanjeev Pandit, CA. Himanshu Kishnadwala CA. Jayesh Gandhi

A full day Seminar on Formation, Registration, Taxation and compliance to various statutory provisions by the Charitable Trusts is organised to discuss and deliberate on the various issues faced in day-to-day practice.

Day & Date : Saturday, 23rd April, 2011Time : 9.30 a.m. to 5.30 p.m.Venue : M. C. Ghia Hall, Kalaghoda, Mumbai – 400 023Fees : Fees: `800 for Members, `1000 for others (including tea, coffee, lunch & material)

The details are as follows:

Topics Speakers

Inauguration Key note address Charity Commissioner and/or DIT (Exem)* & CA. Arvindbhai Dalal, Chairman

1st Technical Session

Formation of Trust(Trust Deed / MOA & Rules& Regulations with C.C. under BPT & Societies Registration Act)

Advocate Nitin Kadam

2nd Technical Session

Statutory formalitiesBefore Charity Comm. & contribution payable

CA. Vipin Batavia

3rd Technical Session

Reg. with I.T. Dept.Exemption U/S 80- G &Under section 10 (23) (c).

CA. Paras Savla

4th Technical Session Taxation of Charitable Trust

CA. Gautam Nayak

5th Technical Session

FCRA provisions and DTC (Proposed Amendment’s)

CA. Shariq Contractor

*confirmation awaited

Members are requested to take advantage of this unique opportunity and enrol early to avoid disappointment.

Enrolment form is printed on page 12.

Full-Day Seminar on Charitable TrustsJointly with The Chamber of Tax Consultants

Indirect Taxes And Allied Laws CommitteeChairman : CA. Govind Goyal Convenors : CA. Sunil Gabhawalla CA. Toral Mehta CA. Suhas Paranjpe

"Corruption is worse than prostitution. The latter might endanger the morals of an individual, the former invariably endangers the morals of the entire country."

— Karl Kraus


The Indirect Taxes & Allied Laws Committee of BCAS is pleased to announce the 5th Residential Study Course on Service Tax and VAT at Corinthians Club and Hotels, NIBM Annexe, Pune, from 24th June to 26th June 2011.

Days & Dates : Friday to Sunday 24th to 26th June 2011Venue : The Corinthians, Pune Nyati County, NIBM Annexe, Pune Website: bonboutique.comFees : `7950 per member (including contribution of `50 to BCAS Foundation, lodging, boarding and course material. Participants shall make their own travel arrangements)

Subjects & Paper Writers:

Papers for Discussion:

Topic Paper Writer

Recent Amendments to CENVAT Credit Rules & Impact thereof

Adv. Shailesh Sheth

Indirect Tax Issues in Media & Entertainment Industry

CA. Parind Mehta

Controversies in Service Tax - Case Studies

Adv. G. Shivadass

Dual Taxation and Levy of Service Tax on Hotels & Restaurants

CA S. S. Gupta

Practice in Service Tax – Some Musings

CA A. R. Krishnan

Notes:

1. The Residential Study Course is open only for Ordinary and Life members of BCAS.

2. Enrolment will commence from 20th April 2011 and will be restricted to 120 members only on first-come-first-served basis.

3. The Course will begin on 24th June 2011 and will conclude on 26th June 2011 after lunch. Delegates can check in at the hotel from 11.00 a.m. onwards on 24th June 2011.

4. All participants will be accommodated in earmarked rooms on twin sharing basis. The participants are requested, therefore, to indicate in the enrolment form their preference of room partner, if any.

5. The Enrolment Fees is inclusive of lodging, boarding and course material. The participant shall make their own arrangements for travel.

6. Refunds & Substitution: Once enrolled, requests for refunds will not be entertained. However, the Committee, at its discretion, may permit substitution in specific circumstances, provided such request for substitution is received well before the commencement of RSC and the member to be substituted is an eligible member of BCAS.

5th Residential Study Course on Service Tax & VAT

Indirect Taxes And Allied Laws CommitteeChairman : CA. Govind Goyal Convenors : CA. Sunil Gabhawalla CA. Toral Mehta CA. Suhas Paranjpe

Study Group on International Economics

International Taxation CommitteeChairman : CA. Pinakin Desai Co-Chairman : CA. Rajesh Kothari Convenors : CA. Gaurang Gandhi CA. Dhishat Mehta CA. Sushil Lakhani

Group Co-ordinators : CA. KK JhunJhunwala, CA. Chirag Vajani

With globalization of Indian economy events occurring on International front are directly impacting Indian economy and businesses. In order to keep track of major developments in the world economy and to study their implications, the Committee has started a new “Study Group on International Economics” wherein current developments and issues in international economics are discussed and debated.

The fees for the study group is `1000

Details of the next meeting is as follows:Day and Date : Thursday, 21st April 2011Time : 6.15 pmVenue : Lotus Hall, BCAS PremisesSubject : Discussion on Financial crisis in 2008 in USA in particular and around the globe in generalFacilitator : CA. Rashmin Sanghavi

All members are welcome to join this group. The group will function on self sufficient basis. Enrolment form is printed on page 12.

International Tax & Finance Conference, 201115th Residential International Tax & Finance Conference is proposed to be held from 12th to 15th August, 2011. For further details please log on to BCAS website on and from 25th April, 2011.

International Taxation CommitteeChairman : CA. Pinakin Desai Co-Chairman : CA. Rajesh Kothari Convenors : CA. Gaurang Gandhi CA. Dhishat Mehta CA. Sushil Lakhani

Details to be submitted

5th Residential Study Course on Service Tax and VAT24th June to 26th June 2011

Name: .....................................................................................................BCAS Membership No.: ........................................................................Address:...................................................................................................................................................................................................................Tel/Email: ................................................................................................Choice of Room Partner: .......................................................................I would like to act as Group Leader for Paper: (1) ................................................ (2) ....................................................Choice of Food: Jain : ………………… Non-Jain: …………......……Enrolment Fees: `7950 paid by Cheque/Draft No. …....……….......... Drawn on: ……….....….........................................................Bank.

Date: ......................... Signature


Dear Friends,

On Saturday, 11th June 2011 the forum has organised an Annual Day Programme to celebrate its 4th anniversary at Direct I-Plex, Andheri (w) starting from 3:30 p.m.

The Programme holds promise to achieve the following under mentioned benefits:

Keynote Address:

At the Society it has always been our endeavour to harness talent and provide an environment not only conducive for pursuit of knowledge but also to provide empower the future chartered accountants a platform to achieve their potential.

Our learned speaker for the day Padma Shri (CA) T. N. Manoharan. shall address the students throwing light on the various challenges that the path beholds and an alternative approach that one can follow to combat those challenges.

Awakening the writer within:

Students pursuing the chartered accountancy course are welcome to participate in the writing competition whereby they can write an essay on any topic of their liking and submit it to us @ [email protected] and mark a copy to [email protected]. Only original ideas and viewpoints need to be expressed through the essays. Any essay found to be copied from the Internet or an existing write-up shall be disqualified.

Your write-ups should not exceed more then 1000 words. The Editorial Committee of the BCAS will assess your contribution and if selected your essay will be published in BCAJ. The decision of the editorial committee is final and shall not be questioned under any circumstances. Three selected best contributions will be awarded a prize. A certificate of participation will be issued to all the participants. Kindly note your essays along with your complete details and your registration number with ICAI should reach us not later than May 23rd 2011.

Elocution Competition 2011 (for CA Students) Saturday, 11th June 2011.

“He came, He spoke, He won” – this is a story of a good communicator. The one who speaks convincingly and impressively wins half the battle. Now here is the opportunity of the year for CA students to present their communication skills. Be little humorous, let imagination run wild at the Elocution Competition organised by BCAS for CA students under the auspices of Smt. Chandanben Maganlal Bhatt Elocution Fund. Each contestant will be given 5 minutes to express his/her views on any one of the under mentioned topics.

a. Scams (Your Take on Combating It)b. Why I wished to be a C.A.? c. Coping with Stress (Your Mantra decoded)d. An appointment with GOD (Your Agenda for the Meeting)e. 'Freedom of Expression' (Used or Overused)

Those desirous of participating should enrol on or before May 23rd 2011. The best three speakers selected by a panel of judges will be awarded handsomely. An elimination round will take place on June 4th 2011, Saturday at the Society Office Churchgate, starting from 2:30 p.m.

Strike Fast

A quiz is organised at the Annual Day to enable you to test and gain more general knowledge, basic information on Commerce, Economics, Health, Sports & Entertainment.

Articles of the same firm or self-formed groups can participate and compete as a group. Three prizes will be awarded to the winning team and a certificate for participation will be issued to each participant.

A rotating trophy is up for grabs to be awarded to the winning team’s CA firm.

Do not miss the opportunity to meet and enjoy with your student friends. Enrolment is limited for 200 students.

And above all a sumptuous buffet to end a wonderful evening.

Enrolment form is printed on page 5.

BCAS’ StudentS Forum

Human Resources CommitteeChairman : CA. Rajesh Muni Convenors : CA. Manish Sampat , CA. Aliasgar Kherodawala, CA. Ashish Fafadia


Details to be submitted

Name:…………………………………………………………………………Contact Nos.

Mobile: …………………………………………Residence Tel No: ………….............................…………………Office Tel No: ………………………..........................…………..

Email:……………………………………………....…………………………Firm Name:……………………………………………………………………Correspondence Address: …………………………………………………..………………………………………………............................................…..Name of Principal: …………………………………………………………….

Sir/Madam,

Intimation for participation on 11th June, 2011

I am interested in participating in the following events during the Annual Meet organised for the students on Saturday, 11th June 2011.

1. Elocution:

My choice of the subject is:a. Scams (Your Take on Combating It)b. Why I wished to be a C.A.? c. Coping with Stress (Your Mantra decoded)d. An appointment with GOD (Your Agenda for the Meeting)e. 'Freedom of Expression' (Used or Overused)

2. Quiz Competition: Yes / NoDo you have a partner: Yes / NoIf yes, then your Quiz Partner’s Name…………………………Quiz Partner’s Firm Name……………………………..

3. Writing competition: Yes / NoMy Choice of Subject is………………………………………………………………………………………………………………….

4. I would like to assist the students’ forum in the following manner………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

5. Payment details:`50 being one-time registration fee for the Students’ Forum`500 being annual subscription of BCA Journal at concessional rates for students, thereby entitlement to Students’ Forum. (Optional)`100 being Enrolment fee for Elocution, Quiz & Writing Skills.

Total `............................................................................

Payment Mode: Cheque/ Cash/ Credit CardCheque No: ................................. dated.................................. drawn on……….....................………………………………………Bank

Signature : .........................................................

Payments to be made at BCAS office

Cheques to be drawn in favour of "Bombay Chartered Accountants’ Society",7 Jolly Bhavan No. 2, New Marine Lines, Mumbai 400020.

Sr. No.

Name of Publication Price `

Postage `

Recent Publications1 Budget Publication

EnglishGujarati

2525

* 2535

2 Model Tax Convention on Income and on Capital (condensed version)

500 **50100

3 Custom Baggage Rules 50 25

4 Fundamental Rights and Duties of Indian Citizens (At a Glance)

50 25

5 Real Estate Laws (Will be available from 1st week of May 2011)

- -

* Postage Within Mumbai `25** Postage Within Mumbai `50

BCAS Publications for Sale

1. Election for the post of President, Vice-President, two Joint Secretaries, Treasurer and Eight Members of the Managing Committee of the Bombay Chartered Accountants’ Society will be held on 13th May, 2011.

2. Members desirous of contesting the election for the above posts should file their nominations with the office of the Society in the prescribed form latest by 11 a.m. on 6th May, 2011. Nomination forms will be available at the Society’s Office from 25th April, 2011 onwards.

3. Voting for the election will be held on Friday, 13th May 2011, at the Society’s office between 10 a.m. and 1 p.m.

Attention of the members is invited to Rules 12 to 18 of the Rules and Regulations of Society, according to which, a member in arrears of subscription is not entitled to contest the election, nor can he/she vote or propose/second a candidate until his/her subscription is fully paid.

Notice of Election for the BCAS year 2011-2012


Title BCAS Web TV

Format Internet Television Live Streaming Service

What do you need A computer with an Internet connection or a cell phone with 3G connectivity and BCAS membership

Mechanism of working Pay the subscription charges for BCAS TV and you will be emailed a user id and password, then log on to www.bcasonline. tv and view the videos or hear the audios of select events conducted by BCAS

Features You can see videos or hear audio recordings on the move on your mobile or on your laptop. The website has been designed for enabling: •LiveStreamingServiceand •Searchforspecificvideosfrommultiplevideoshostedonthesite

Discipline Videos/Audios of selected Lecture Meetings, Workshops, Study Circles, Seminars, etc.

Who can benefit Life and Ordinary Members of BCAS

How to subscribe By cheque/DD/Credit Card: Payment Counter: BCAS, 7, Jolly Bhavan No.2, New Marine Lines, Mumbai - 400020

Imprest: If you are a BCAS member and if you have an imprest account, then you can give instructions to adjust the subscription through the imprest account

Cheques/Pay orders/DDs should be payable at Mumbai in the name of "Bombay Chartered Accountants' Society"

For more information: Call +91-22-61377600 or write to [email protected]

Subscription charges `600 per annum subject to maximum download of 4 GB per month (average 20 videos).

This rate is applicable for the F. Y. 2011-12

Bombay Chartered Accountants' Society7, Jolly Bhavan No. 2, New Marine Lines, Mumbai - 400020

Website: www.bcasonline.org E-mail: [email protected]: 61377600 Fax: 61377666

Bombay Chartered Accountants' Society

InfoTech & 4i Committee&

Membership & Public Relations Committee present

BCAS Web TV

Lecture Meeting on Service Tax Provisions of the Finance Bill, 2011 held by BCAS on 9th March, 2011 by Advocate Mr. Vikram Nankani is now available on BCAS Web TV

Few other videos on BCAS Web TV are:•LectureMeetingonDirectTaxProvisionsoftheFinanceBill,2011bySeniorAdvocateMr.S.E.Dastur•ElectronicTaxPaymentsandQuarterlyTDSReturns–recentupdatesandissuesbyMs.DelnazMistry

•TalkonHowtoprepareforandwriteCAExamsbyCA.T.N.Manoharan

Subscribe Now!!!


The Power Summit on Practice Management Capacity Building & Networking

The Infotech and 4i Committee is pleased to announce a unique initiative – a 2 day summit where leaders from various professional services firms will get together to share their experiences on practice management, growth strategies and on their networking initiatives.

Details of the Summit

Day 1 – Focus on Practice Management, Day 2 – Focus on Value creation and Networking

Topics & Contents: Speaker

Day 1

Course Inauguration, President’s address, Chairman’s address CA Mayur Nayak, CA Ameet Patel

Keynote address “CA Profession – what do the stars tell? What does the future hold?” CA Sudhir Kapadia

Practice Management “Is there a difference between practicing and practice management?” CA Atul Bheda

Valuation of Professional Firms “Is generating revenue the same as building value?” CA Sujal Shah

Technology for Practice Management “Do you have IT? If you don’t, you have had it!!” CA Ameet Patel

Day 2

Are you an individual, a bunch of individuals or an institution? “My journey from an Individual to an Institution”

Adv Nishith Desai

“The whole world is my stage” Growth beyond boundaries CA Mitil Choksi

Merger is a marriage of minds. How does one gear up to say “I do”? CA Nandita Parekh

What is your growth strategy? “Specialization as a strategy for growth for a professional services firm” CA Naren Aneja

The Client, the King Have you listened to your clients and really understood what the market wants? CA Himanshu Vasa

High tea “Matchmaker, matchmaker, find me a match….” Open informal networking forum

The Closing Bell – Summing up the Summit

This summit will also create a unique opportunity for firms seeking network partners by bringing together practice leaders from select cities and creating an appropriate platform for networking and understanding each others’ capabilities, strengths and requirements.

The enrolments are restricted to 90…. so, send in your enrolment early, lest someone should ask you “How come you were not present at the Power Summit?”

To make the Summit fruitful for everyone concerned, 50% of the seats are reserved for delegates from out of Mumbai.

When : April 29-30, 2011 Time : 9.30 a.m. to 5.30 p.m.Where : MCA Club, Bandra Kurla Complex, Bandra East, Mumbai For whom : For partners and leaders of professional services firms Investment : `4,500/-for members of BCAS and members of other CA Associations invited for this summit (includes `50 by way of contribution to BCAS Foundation)

For others….sorry, this one is only for members!!

Infotech & 4i CommitteeChairman : CA. Ameet Patel Convenors : CA. Nandita Parekh CA. Shardul Shah CA. Jinal Shah


BCAS is happy to announce annual formation of Study Circles for the year 2011-12. The BCAS study circles are well known for the very high quality of deliberations that take place in the presence of and under the guidance of seniors and also for the meticulous planning and organisational capabilities of their convenors. The BCAS Study Circle is not only the backbone for you to begin your active involvement in the activities of the BCAS but provide you with following benefits:

• tremendousopportunitiesforenhancingandsharingknowledge• honingyoursoftskills• keepingintouchwithcontemporarydevelopmentsinlawandinpractice• fellowshipamongstyourprofessionalcolleagues

All these would add substantial value to your capabilities and personality. We invite you to partake in the feast of knowledge in the year ahead and join the study circle(s) of your choice. As you are aware, we face a constraint of space and this forces us to restrict the enrolment to a certain number. We therefore sincerely request you to make it a point to attend the meetings regularly. For further information/queries about the study circles, please feel free to contact us at [email protected]. Annual fee details are provided below. The fees are inclusive of `30 as contribution to BCAS Foundation. Kindly note:

(a) Generally, all study circle meetings are held at the Conference Rooms in the BCAS office. In rare cases, we hold the meetings at other venues. The Suburban Study Circles will be conducted at Directi Internet Solutions Pvt. Ltd., Direct – I- Plex, Old Nagardas Road, Opp. Wilson Pens, Near Andheri East Subway, Andheri (East), Mumbai – 400069.

(b) Any member of the BCAS is welcome to join the study circles. There is no restriction on the number of circles that you can join;(c) It would be our endeavour to hold at least 6 meetings per study circle in the year. However, this would be subject to the availability of group

leaders and chairmen;(d) The term of each study circle is from 1-4-2011 to 31-3-2012.………………………………………………………………………………………………………………………………………………………………………

Enrolment Form

Please select the study circle that you would like to join from the list given below and send in your cheque to us with the enrolment form:

Study Circle No. Subject Fee ` Tick your choice here

I Direct Tax Laws 400

II Indirect Tax Laws 400

III Company Law, Auditing & Accounting 400

IV FEMA 400

V Information Technology 400

VI Human Resource Development 400

VII Internal Audit Studies 400

VIII IFRS 1000

IX BCAS Suburban Study Circle 600

X International Economics Study Group 1000

XI Study Group on International Tax Decisions 1750

BCAS Membership No.: ……………………………………...........................................................................................................................…………Name: …………………………………………………...............................................................................................................…………………………Address: ………………………………………………………..........................................................................................................…………………….……………………………………………………..........................................................................................................……….............…………………Tel (O): …………………….....................……… Tel (R): ………..................……………………… Fax: ………..................................…………………Mobile: ………………………..............…………………… E-mail: ……………………............................................................…………………………Cash/Draft/Cheque No. :……………...…………….. drawn on ……….....................................................……………………………..........…...bank,Dated ………………...……….for an amount of ` …………………………………………..is enclosed. Date: …………………………

Signature

BCAS Study CirCleS For 2011-12


The Reserve Bank of India has issued the following 5 Circulars and DIPP 1 Circular

A. P. (DIR Series) Circular No. 44, dated March 15, 2011Exim Bank’s Line of Credit of USD 50 million to the Government of the Republic of Malawi

Exim Bank has made available, subject to certain terms and conditions, to the Government of the Republic of Malawi a Line of Credit of US $ 50 million for financing eligible goods and services including consultancy services from India for financing (i) Cotton Processing Facilities (US $ 20 million), (ii) Green Belt Initiative (US $ 15 million) and (iii) One Village One Product Project (US $ 15 million) in Malawi. Eligible goods and services including consultancy services of the value of at least 75% of the contract price must be supplied by the sellers from India, while the remaining 25% of the goods and services (other than consultancy services) may be procured by the sellers from outside India.

The last date for opening of Letters of Credit and Disbursement for project exports will be 48 months from the scheduled completion date of the contract and January 31, 2017 in case of supply contracts.

A. P. (DIR Series) Circular No. 45, dated March 15, 2011Introduction of Annual Return on Foreign Liabilities and Assets reporting by Indian companies and discontinuation of the Part B of form FC-GPR

Presently, Part B of Form FC-GPR containing details of all investments made in the company during a financial year, is required to be submitted by June 30 directly by the Company to the Director, Balance of Payment Statistics Division, Department of Statistics and Information Management, Reserve Bank of India, C-9, 8th floor, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051, by June 30th of every year.

However, from this year onwards Part B filing of Part B is being discontinued and in its place a separate ‘Annual Return on Foreign Liabilities and Assets’ is to be submitted by July 15 of every year to the Director, Balance of Payment Statistics Division, Department of Statistics and Information Management (DSIM), Reserve Bank of India, C-9, 8th floor, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051. This new return is to be submitted by all the Indian companies which have received FDI and / or made overseas investment (ODI) in the previous year(s) including the current year.

The new Form is given as Annex – I and the concepts and definitions are given as Annex – II to this Circular.

A. P. (DIR Series) Circular No. 46, dated March 18, 2011Exim Bank’s Line of Credit of USD 100 million to the Ecowas Bank for Investment and Development (EBID)

Exim Bank has made available, subject to certain terms and conditions, to the Ecowas Bank for Investment and Development (EBID) a Line of Credit of US $ 100 million for financing eligible goods and services including consultancy services from India to the 15 member countries of EBID in the West African region viz. Benin, Burkina Faso, Cape Verde, Cote d'Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo. Eligible goods and services including consultancy services of the value of at least 85% of the contract price must be supplied by the sellers from India, while the remaining 15% of the goods and services (other than consultancy

services) may be procured by the sellers from outside India.

The last date for opening of Letters of Credit and Disbursement for project exports will be 48 months from the scheduled completion date of the contract and November 8, 2016 in case of supply contracts.

A. P. (DIR Series) Circular No. 47, dated February 31, 2011Export of Goods and Software – Realisation and Repatriation of Export Proceeds - Liberalisation

Generally, export proceeds in respect of export of goods and software (except in cases of exports from units in SEZ or exports to exporters' own warehouses outside India) are required to be realized and repatriated within six months from the date of export. However, this period of six months was enhanced to twelve months in case of exports up to March 31, 2011.

This Circular has relaxed the six months rule for a further period up to September 30, 2011, subject to review. Hence, export proceeds in respect of export of goods and software (except in cases of exports from units in SEZ or exports to exporters' own warehouses outside India) up to September 30, 2011 can be realized and repatriated within twelve months from the date of export.

However, there is no change in the provisions in regard to period of realization and repatriation to India of the full export value of goods or software exported by a unit situated in a Special Economic Zone (SEZ) as well as exports made to exporters' own warehouses outside India.

Government of India, Ministry of Commerce & Industry Department of Industrial Policy & Promotion (FC Section) – F. No. 5(1)/2011-FC. Dated 31.03.2011

CIRCULAR 1 OF 2011 – CONSOLIDATED FDI POLICY

Circular 1 of 2011 is the third edition of the Consolidated FDI Policy. This Circular will take effect from April 1, 2011. The following major changes have been incorporated in the latest consolidation:

(i) Pricing of Convertible instruments Instead of specifying the price of convertible instruments upfront,

companies will now have the option of prescribing a conversion formula, subject to FEMA / SEBI Guidelines on pricing.

(ii) Inclusion of fresh items for issue of shares against non-cash considerations

The existing policy provides for conversion of only ECB / lump sum fee / Royalty into equity. This Circular now permits issue of equity, under the Government Route (Approval Route), in the following cases, subject to specific conditions:

(a) Import of capital goods / machinery / equipment (including second-hand machinery)

(b) Pre-operative / pre-incorporation expenses (including payments of rent, etc.)

(iii) Removal of the condition of prior approval in case of existing joint ventures / technical collaborations in the ‘same field”

With a view to attract fresh investment and technology inflows into the country and to also reduce the levels of Government intervention in the commercial sphere the Government has decided to abolish this condition of obtaining prior approval in case of existing joint ventures / technical collaborations in the same field.

(iv) Guidelines relating to down-stream investments The guidelines have been comprehensively simplified and

rationalized. Companies will now been classified into only two categories – ‘companies owned or controlled by foreign investors’ and ‘companies owned and controlled by Indian residents’. The earlier

From RBIContributed by : CA. Gaurang Gandhi


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STUDY COURSE : Study Group on International 21-04-2011 r1,000 .......................................

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Forthcoming Study Circle MeetingsBCAS Suburban Study Circle

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30-04-2011 Saturday 1. Controversial Amendments in Sec 6(2) & 6A under CST Act

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categorisation of ‘investing companies’, ‘operating companies’ and ‘investing-cum-operating companies’ has been done away with.

(v) Development of seeds In the agriculture sector, FDI will now be permitted in the development

and production of seeds and planting material, without the stipulation of having to do so under ‘controlled conditions’.

A. P. (DIR Series) Circular No. 48, dated April 5, 2011Acquisition of credit / debit card transactions in India by overseas banks – payment for airline tickets

Foreign airline companies are permitted to repatriate the surplus arising from sale of air tickets through their agents in India only after payment of the local expenses and applicable taxes in India. However, in some cases where the payment for the tickets are made by the residents using credit / debit card, Card Companies have been providing arrangements to the foreign airlines operating in India to select the country and currency of their choice, in respect of transactions arising from the sale of the air tickets in India in Indian Rupees (INR).

This Circular clarifies that this practice adopted by foreign airlines is not in conformity with the provisions of the Foreign Exchange Management Act, 1999 and foreign airlines are advised to immediately discontinue the same.

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