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The Institute of Chartered Accountants of India(Setup by an Act of Parliament)

Volume - VIII September 2012 l

Baroda Branch of Western India Regional Council ofThe Institute of Chartered Accountants of India

You will never findRainbow if you are looking down NewsLetter

` 20/- Copy

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIAICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi - 110002. Tel. : +91 (11) 39893989 E-mail : [email protected] Web : www.icai.org

WESTERN INDIA REGIONAL COUNCILICAI Bhawan, 27, Cuffe Parade, Post Box No. 6081, Colaba, Mumbai - 400 005. Tel. : +91 (22) 39893989 Email : [email protected] Web : www.wirc-icai.org

BARODA BRANCH OF WIRC OF ICAI “ICAI Bhawan”, Kalali-Tandalja Road, Atladra, Vadodara - 390 012. Telefax : +91 (265) 2681115 / 2680593 E-mail: [email protected] Web : www.baroda-icai.org

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Dear Professional Colleagues,

The month of September brings the pleasant season of autumn, wiping off the footprints of monsoons and opening the windows of the festive season. For our profession September month brings the challenge of meeting the most important statutory deadlines and invokes our abilities to balance the work pressure and the gaiety of the festivals.

Dear friends, the year is moving ahead and the Branch activity book has logged in some of the most interesting programs in the past few months. Last month had some of the most-awaited workshops which were unique and educative. The post qualification courses on Arbitration & Forensic Accounting and Training programs on Peer Review & FRRB attracted participants not only from different cities of Gujarat but also different states of India.

Baroda Branch also had the pleasure of hosting the 1st Annual meet of South Gujarat Members in Industry. The participants had the opportunity to hear Mr Harsh Roongta –the CEO of Apnapaisa.com.

Friends, the most amazing days of our lives were the school days. Studying with friends, solving model question papers in the last hours of the exams are un-forgetful moments. Our members recollected their memories of good old school days as they prepared and appeared for the exams to the certificate courses on International Taxation, Arbitration, Indirect Taxes & Forensic Accounting held in this month.

The evolution of internet has brought to us the gift of networking and communicating in the virtual world to explore the vast land of opportunities. In the recent conference held in Baroda, our WIRC chairman demonstrated the constructive use of technology and launched the video-profiling facility. This is for qualified young members to introduce themselves by uploading their video profile on the WIRC website and these profiles are accessible to potential employers.

Calendar of programs for the month of September has been restricted to few programs and members learning endeavors will continue with full force next month through some interesting programs. Campus placement program has been scheduled on 4th of this month.

As all of you are aware that Central Council and regional councils have elections every three years and this year elections have been scheduled on 7th and 8th December. Members are requested to keep their diaries open on these dates to come forward and vote to express their choice of able representatives from our fraternity on the WIRC & Central Council platform.

With Regards

CA Pradeep Agrawal

MANAGING COMMITTEE

CA. Rajesh Shah Ex-officio 98250 41142

CA. Yash Bhatt 99243 88339Treasurer

CA. Pradeep Agrawal

Chairman 93272 4347998985 60967

CA. Ashish Parikh 98252 31545Vice Chairman

CA. Nayan Kothari Secretary 98244 33445

CA. M J Parsiya 98251 10620

Past Chairman

Immediate

CA. Viral Shah 98243 62211Member

CA. Arpan Dodia 98983 83530Member

CA. Hitesh Shah Member 99247 94693

CA. Pradeep Agrawal CA. Hitesh Shah

CA. Vishal Doshi CA. Ashok Thakkar

CA. Abhishek Nagori CA. Narendra Hindocha

CA. Bimal Bhatt CA. Neena Patel

CA. Nidhi Bhatt CA. Rachana Parikh

EDITORIAL TEAM

Index

“After consideration, discussion and deliberation, the Chartered Accountants Act was amended. Though on the whole the requirements adumbrated in the Amendments were acceptable to the Council, I must mention that in regard to the powers now taken by Government to change the Regulations, it has created a lot of misunderstanding amongst the members of the profession.

The impression created by this amendment is that the autonomy, which was granted to the profession by Parliament only a few years ago, has been substantially curtailed by this change without any justification and almost strikes at the very roots of autonomy.”

Late CA. C. C. CHOKSHI, 8th President, ICAI, Spoken on 7th September, 1959

Photo Flash .......................................................... 02

Forthcoming Events ............................................ 03

Income Tax Updates ........................................... 04

Let's Connect with ICAI ...................................... 09

5 Top Windows 8 Features ................................. 10

Announcements .................................................. 10

Photo Flash ......................................................... 11

Service Tax Updates ............................................ 05

In 2012, All will be Well ........................................ 06

FAQ on IAS - 2 : Inventories (Ind - AS 2) ............. 06

ICAI Updates ....................................................... 08

BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

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02 SEP 2012VOLUME - VIII

1st Batch of Certificate Course of Arbitration - August 2012

1st Batch of Certificate Course of Indirect Taxes - June - August 2012

Adv. Manubhai Whagela, Baroda

CA. Amish Khandhar,Ahmedabad

Adv. Anand Nanavati, Ahmedabad

CA. Ashok Batra,New Delhi

CA. Bimal Jain,New Delhi

CA Deepak Jain, Bangalure

CA Khyati Shah, Ahmedabad

CA Kishore Gheewala,Surat

CA Mayur Popat, Baroda

CA Pradip Shah, Ahmedabad

CA Rip Das, Kolkatta

Mr. Manoj Mishra,New Delhi

Examination on 25.08.2012

1st Batch of Certificate Course of Forensic Accounting - August 2012

Adv. Firdoshali Karachiwala,Mumbai

Adv. V.Inbavijayan,Chennai

Adv. Namrata Solanki,Baroda

Adv. G. K. Kwatra,New Delhi

Adv. Bharat Shah,Baroda

Shri K. K. Bhatt, Hon’ble Principal District

& Sessions Judge, Baroda

Adv. Avadhoot Sumant,Baroda

CA. Bhupendra ShahMumbai

Examination on 12.08.2012

Peer Reviewer Training on 22.08.2012

CA Bharat Raichandani,Mumbai

CA. Chetan Dalal,Mumbai

CA. Mahesh Bhatki,Mumbai

CA. Ritesh Aggarwal,New Delhi

CA. Subramaniam Arunachalam, Bangalure

CA. Sunil Batra,New Delhi

Mr. Prashant Mali, Mumabi

Mr. Triveni Singh,New Delhi

Mr. Alok Gupta, New Delhi

Mr.Ashok Kashyap,New Delhi

CA. Anand Prakash Jangid, Bangalure

CA. Alka Adatia, Mumbai

CA. S.K.Bansal, New Delhi Examination on 29.08.2012

CA. V. Rethinam, New Delhi CA. Khurshed Pastakia, Mumbai CA. Munish Saraogi, New Delhi

FRRB - Technical Reviewers Training on 24.08.2012

CA. Rashmi Thakkar,Baroda

CA. Narendra Hindocha,Baroda Certificate Course on International Taxation Exam on 12.08.2012


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ForthcomingEventsBRANCH EVENTS

Full Day Seminar for SMPs

Jointly with Bhavnagar Branch

Day & Date : Saturday, 06.10.2012Time : 09.00 am to 05.00 pmSubjects Faculties

International Avenues – including CA Khusroo Panthaky,Opportunities for Indian CA’s Mumbai

Specialization/ Super CA Yagnesh Desai, Mumbaispecializations in CA Profession?

Challenges in Sustaining Growth CA Rahul Parikh, Barodaof a Firm

Challenges for Capacity Building CA Sunil Sharma, Mumbaifrom SMP’s through Networking,Merger, De-merger, LLP & Corporate Form of Practice

Fees : 900/- upto 03.10.2012 and 1100/- thereafter.

Venue : ICAI Bhawan, Baroda

`. `.

In an era of increasing usage of ‘plastic

money’ & Inernet - with an objective of better

services to members & students, Baroda

Branch is having facilities of Registrations for

seminar & conference by paying through

credit/debit card at ICAI Bhawan or visit

www.baroda-icai.org for online payment.

PAYMENT OPTIONS FOR PROGRAM REGISTRATION

e-paymentD r o p B o x a t 2 - B , Ramkrishna Chambers, BPC Road, Baroda. Kindly mention your name, membership number and program for which registration is sought, on back side of the Cheque

Join us on group Facebook Baroda Branch of WIRC of ICAIExchange views and news. Be updated about forthcoming events of Baroda Branch

Members are requested to register themselves in advance by

using above options and avoid spot registration to help us to

serve you better.

CPEHRS.6

1st Batch of Certificate Course on Valuation

Day & Date : Saturday, 06.10.2012 & onwards (six weekends)

Time : 09.00 am to 05.00 pm Fees : 20,000/- (Minimum 20 Participants).

Venue : BPC Hall, Productivity Road, Baroda

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CPEHRS.50

Workshop - Financial Prescription for Doctors

Jointly with Indian Medical Association- Vadodara Branch

Day & Date : Sunday 07.10.2012Time : 11. 00 am to 4.00 pm Subjects Faculties

Accounting & Forms of Practice CA. Alok Shah, BarodaAxe your Tax CA. Amar Shah, Baroda(Income & Service Taxes)Financial Models as a CA. Milin Mehta, BarodaGrowth Strategy Carving CA. Manish Baxi, BarodaPlanningFees : 200/- upto 30.09.2012 and 300/-

thereafter.


out Financial Retirement

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1st All Gujarat CFO Meet - Organised by CMII, ICAI

Day & Date : Friday, 19.10.2012Time : 09.00 am to 05.00 pmSubject : Evolving Role of CFO: Newer Dimensions

Future Prospective: Strategic Challenges for 2012 and Beyond, Regulatory Aspects: Governance & Ethics: Managing risk & Introspection: How CFOs can do value addition and balance client expectations

Fees : 3000/- (Limited Seats - 70).

Venue : Hotel Surya Palace, Baroda

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CPEHRS.6

10th Batch of ISA Course

Day & Date : Saturday, 24.11.2012 & onwards (six weekends)

Time : 09.00 am to 05.00 pmFaculty : Eminent Faculties Subject : Various TopicsFees : 17,500/- (Minimum 20 Participants).

Venue : BPC Hall, Productivity Road, Baroda

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“The institute had more than justified its existence. The profession of Chartered Accountants was the keeper of the

conscience of the business community and its task was not an easy one… when accounts

certified by a Chartered Accountants were presented to the courts, they instinctively felt that

everything must be right because the profession of Chartered Accountants had established itself for honesty;

integrity and good work.

(21st annual meeting of the Council on 16th September 1970)

SHRI M. HIDAYATULLAH, CHIEF JUSTICE OF INDIA, 1970

Lecture Meeting

Day & Date : Saturday, 01.09.2012Time : 04.00 pm to 06.30 pmSubject : Recent Changes in Cost Records & Cost AuditFaculty : Shri. Yashodhar Thakar, BarodaFees : `. 200/-


CPEHRS.2

ICAI - CAMPUS PLACEMENTSSeptember 4, 2012



NewsLetter


Income Tax Updates

Account Number of the transferor.

4. Black Money Committee Report

Going through the Report of the Committee on Black Money, 2012, headed by the Chairman of CBDT, I first wondered whether such reports are counterproductive. This is for the reason that they give information to criminals regarding action planned by Government and while criminals play with closed cards, Government plays with open cards.

In the context of section 50C, the report recognizes that the valuation adopted by Stamp Authorities is in most cases completely out of line with prevailing market values. It suggests reintroduction of provisions for compulsory acquisition by Government, of propert ies proposed to be transferred at lower than market value.

Other suggestions include:

- Taxation of Transfer of property by transfer of shares in companies that own the property by valuing shares after considering the properties held by the company and also by charging stamp duty.

- Exemption of profit on sale of agricultural land only for transfer to agriculturist.

- Increase in import duty on bullion and jewellery, transactions therein to be made only by Account Payee Cheques and 300% penalty on such assets found during search.

- Prevent misuse of tax evasion using shares in companies-allow enquiry into source of source, tax on share application money when no shares issued, no exemption of capital gain on sale of shares etc.

- Prevent entities from inflating profits to avail deductions under sections 80IA/80IB

- Stop misuse of exemption to charitable entities, specially in education sector, power for survey of charitable institutions

- Enforce attendance of witness by powers for arrest and prosecution.

Compiled by CA. Narendra Hindocha

1. Scope of assessment in pursuance of search

In another land mark decision in case of All Cargo Global Logistics Limited V. DCIT , Special Bench of ITAT Mumbai held that sections 132 and 153A need to be read together. So read, the provisions do not justify reopening of a concluded assessment except to the extent warranted by books not produced during assessment or materials found during search.

2. Penalty for addition under section 50C

In case of Chimanlal Manilal Patel, Ahmedabad Bench of ITAT deleted penalty in respect of addition made b y a p p l y i n g s e c t i o n 5 0 C . Observations: under:

It is not the case of the AO that the assessee has received consideration over and above than that declared in the sales deed. The addition has been made on the basis of deeming provisions of section 50C. The AO has not doubted the genuineness of the documents/details furnished by the assessee. Only because the assessee agreed to the additions because of the deeming provisions it cannot be construed to be filing of inaccurate particulars on the part of the assessee.

3. TDS on payments for software

To avoid deduction of tax at multiple levels, as per Notification No. dated 13-6-2012, deduction of tax at source is not required under section 194J from 1st July, 2012 in case of payment by a person (transferee) for acquisition of software from another person, being a resident, (transferor), where-

(i) the transferor has transferred the software without any modification,

(ii) tax has been deducted under section 194J/195 on payment for any previous transfer as per declaration by transferor also stating Permanent

Looks like Government knows the problems. How it acts is a different matter. Some proposals and actions look like cutting the head to cure a headache.

5. Deduction allowed in spite of delay in filing return/noncompliance of other conditions

According to the provisions of section 80AC, deductions under section 80IA/B/C are not allowable unless the return of income is filed within prescribed time. However, Income Tax Appellate Tribunal, Hyderabad, in ITA No. 984/Hyd/2011 for Assessment year 2008-09 in case of Income Tax Officer Vs. Sri S. Venkataiah, allowed deduction when the return was delayed on account of virus in computer.

I wound not consider this as a proposition that section 80AC is to be considered as inoperative, but as a proposition that Courts can and do take a pragmatic view so that what is due to a taxpayer is not denied for insignificant matters.

While normally, Courts take a lenient view of technical non-compliances for allowing deductions under provisions granting incentives, when deduction under section 80IA was claimed first time during assessment in pursuance of search, the same was not allowed by the High Court of Kerala, in ITA No. 323 in case of CIT V. Shri P.D.Abrahm with observations that the deduction is to be claimed in regular return and backed by Audit Report in prescribed form.

In another case, where deduction under section 80IB was claimed, the a s s e s s e e wa s p re ve nte d b y reasonable cause to complete construction in t ime due to intervention of CID action on account of violation of provisions of Urban Land Ceiling Act applicable to land in q u e s t i o n . A s s e s s e e w a s incapacitated to complete the same in time due to reasons beyond his control. In these circumstances, deduction was allowed to the extent that construction was complete,


NewsLetter


although the whole project was not complete within the prescribed period by Income Tax Appellate Tribunal , Pune in I.T.A. No. 84/PN/2011 : A.Y. 2007-08 in case of M/s. Ramsukh Properties Vs. Dy CIT by order dated 25th July, 2012

6. Form 15G/H not giving P.A. No. held valid

Law was amended to stipulate that these forms, seeking to get income without deduction of tax at source for individuals whose income is below the threshold that attracts tax, are not valid unless they have PA NO. In a writ petition against such amendment filed by small investors, Karnataka High Court held, in the case of Kowsalya Bai vs. Union of India, that provisions of Section 206AA of the Income Tax Act are contrary to provisions of Section 139A of the Act as they required PA No. even in cases where it is not required to be obtained as per Section 139A. Accordingly, provisions of Section 206AA were made inapplicable to persons and the provision was read down and made inapplicable for those persons whose income was less than the taxable limits. Accordingly, the High Court directed the Banks and the Financial Institutions that they shall not insist upon PA No. from small investors who intend to open an account in the bank or financial institution.

7. Lease equalization charge

In a significant decision relating to relevance of Accounting guidelines and standards, for computing taxable income, the Delhi High Court in case of Virtual Soft Systems Ltd. held that provision for Lease Equalisation Charge debited to Profit and Loss account was not required to be disallowed in computing taxable income under Income-tax Act. (Source: itatonline.org)

8. Capital receipt on exercise of vote

In case of CIT V. Late David Lopes Menezes( 336 ITR 337), Rs.3.5 crores was received by members of a family

for exercising their votes in favour of surrender of the right to use the trade mark by the company in which they had controlling interest. The amount was held to be not liable to tax, being capital receipt.

Compiled by CA. Anirudh Sonpal

I. REBATE OF SERVICE TAX USED FOR EXPORT OF GOODS

Notification 41/2012 dated 29-6-2012 effective from 1-7-2012 supersedes Notification 2/2011 dated 30-12-2011 and provides for rebate of service tax paid on the taxable services which are received by an exporter and used for the export of goods. The rebate is available of service tax paid on ‘specified services’ which mean:

1. In case of excisable goods – taxable services that have been used beyond the place of removal for the export of said goods, and

2. In case of other goods – taxable services used for export of said goods.

However, specified services do not include such specified services as are excluded from the definition of Input Service.

The rebate is subject to conditions and procedures, including option to claim rebate on basis of rates specified in schedule or on the basis of documents.

However, Notification 42/2012 dated 29-6-2012 effective from 1-7-2012, provides for exemption from service tax, under reverse charge mechanism, in respect of services provided by a commission agent located outside India to act on behalf of an exporter to cause sale of goods exported by the exporter, subject to specified

Service TaxUpdates

conditions and procedures.

II. EXEMPTIONS

Notification 43/2012 dated 2-7-2012 exempts upto 30-9-2012 the following taxable services provided by Indian Railways:

1. Service of transportation of passengers in First Class or AC coach, and

2. Service by way of transportation of goods by railways.

III. ACCOUNTING CODE

Circular 161/12/2012 dated 6-7-2012 has specified the following codes for payment of service tax on all taxable services under the Negative List approach with effect from 1-7-2012:

1. Tax Collection – 00441089

2. Other Receipts – 00441090

3. Penalties – 00441093

The service specific accounting codes will simultaneously continue to operate for service tax prior to 1-7-2012; there is no change in the codes for payment of education cesses.

IV. POINT OF TAXATION

Circular 162/13/2012 dated 6-7-2012 clarifies the applicability of PoT Rules with reference to continuous supply of services, works contract and partial reverse charge in respect of specified services.

V. R E M I T TA N C E O F F O R E I G N CURRENCY TO INDIA

Circular 163/14/2012 dated 10-7-2012 clarifies on leviability of service tax on overseas foreign remittance to India – on transfer per se, as also the fees and conversion charges for such remittances, as per the Place of Provision of Service Rules,2012.


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unique to Hindu philosophy. What is the law of the seed? Ask any farmer, ask any peasant, ask the simple village folk who live by the land - and they will tell you the law of the seed: as you sow, so shall you reap. As you sow, so shall you reap. Each one of us has been given a plot - the field of our life. In this field of life, we are sowing seeds everyday. Every thought I think, every word I utter, every deed I perform, every emotion that I arouse within my heart, every feeling, every fancy, every wish - all these are seeds I am sowing in the field of my life.

The Law of Karma, simply stated, is the law of cause and effect. It is a scientific law. It is a universal law.

It is built up of these two aspects: as you sow, so shall you reap: as you think, so you become. You cannot sow thorns and reap apples.

7. Give! Give! Give!

He who gives, truly lives! He, who does not give, is no better than a dead soul!

Give without any expectation or reward. Thank God for giving you the opportunity to serve others.

When you give, do not think that you are obliging others. On the contrary, feel obligation to God that he has given you this wonderful opportunity of serving others.

Everything that we have is a loan given to us, to be passed on to those whose need is greater than ours.

Nothing belongs to us; nothing has been given to us absolutely; everything has been given to us as a loan - our time and our talents, our knowledge, our experience, our wisdom, our prestige, our influence in society, our bank; accounts, our property and possessions, our life itself is a loan given to us to be passed on to those whose need is greater than ours.

Pick up one of these. Make it part of your life. Bear witness to it in deeds of daily living. And all will be well with you wherever you be. And all will be well with you today, in the year 2012 and forever and ever more.

Compiled by CA. Bimal R. Bhatt

5. Expect the best and you will have it. Be positive

For this, my friends, is an inviolable law of life: whatever you expect will come to you. As I have said to

you time and again, your thoughts have magnetic power! Thoughts are tremendous forces. Every thought you think is a magnet; it draws to itself what you think about. Think success, prosperity, joy and peace - success, joy, prosperity and peace will come to you! Therefore, cultivate the will to be positive - create your own mental sunshine! The universe works like an echo. Whatever thoughts you think, will rebound on you. The picture that we paint of ourselves is assimilated by our subconscious.

Be positive in your approach and you will find solutions to all your problems. The man with the positive attitude may be surrounded by adverse conditions, but he will look for a place to stand on; he will seek a solution; he will expect the best results; and he will invariably succeed. Remember, this is the great law of life. That, which you expect, always comes to you. It may come to you tomorrow, it may come to you fourteen years hence, but it will surely come to you. Therefore, why not expect the very best? Expect success and you will achieve success!

6. Sow good seeds in the field of your life

What is the best that you are capable of giving to the world? I have a simple answer to that question; the best that I can give to the world are good thoughts, good words, good actions. When I offer the best that I can to this world, the best will come back to me! Therefore, my sixth practical suggestion is: sow good seeds in the field of your life!

The law of the seed is also the profound law of karma, which is

In 2012, All Will Be WellTo be continued from last issue.... Compiled by CA. Prashant Upadhyay

FAQs on IAS – 2 : Inventories (Ind–AS 2)

1. IAS – 2: Inventories, applies to assets he ld , in process of production for sale, for sale in ordinary course of business & materials or supplies consumed in production process or rendering service. Which are the items on which the standard does not apply to?

Ans: In case of inventories covered by a) Construction Contracts (IAS 11), b) Financial instruments (IAS 32/39 read with IFRS 9), c) Biological Assets (like livestock, forestry products, annual or perennial cropping, orchards, plantations, floriculture and acquaculture) at the point of harvest (IAS 41), d) Fixed assets covered by Property, Plant and Equipment (IAS 16) & e) Investment Property (IAS 40).

** IAS – 41 is not notified as an Ind AS by the Ministry of Corporate Affairs.

2. Which method of valuation of inventory is not recognized at all under IAS-2 ? Are there any exceptions to the same?

Ans: In terms of para BC19, LIFO Method of valuation of inventory is not recognized since the method cannot represent the true faithfulness of the inventory flows. However, Specific cost method which reflects the inventory flow which is similar to that of LIFO is not ruled out by IAS-2 .

3. Can we include Other Costs while calculating the Cost of inventories?

Ans: As per Para 15, other costs are included in the cost of inventory only those which are incurred in bringing the inventories to their present location & condition, consequent to which, it excludes abnormal cost, storage cost, administrative overheads that do n o t co nt r i b u te to b r i n g i n g


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inventories to their present condition & location along with Selling costs.

4. Are Net Realisable Value & Fair Value congenial in nature?

Ans: Importing meaning assigned by para 6 & para 7, it can be observed that there is difference between the two. Net Realisable Value relies on the specific business of the entity that is the subject of the financial statements, whereas Fair Value relates to the market, rather than to individual contracts.

5. Is it compulsory to use Weighted Average Cost or FIFO cost formula under IAS-2 in all situations?

Ans: As per para 25 the cost of inventory (Other than those covered by para 23), shall be valued either by Weighted Average Cost or FIFO method. An entity shall use the same cost formula for all inventories having a similar nature and use to the entity. For inventories with a different nature or use, different cost formulas may be justified (Para 27).

6. What is the treatment when any inventory is transferred to other asset accounts?

Ans: In the cases such as self constructed property, plant or equipment (IAS 16 para 22) inventory used as a component of self constructed property may be allocated to other asset accounts. When such inventories are transferred to asset then it is recognized as an expense during the useful life of that asset (Para 35).

7. ABC & Associates is a firm of architects providing consultancy services for outsized construction such as bridges , skyscrapers etc. which method of valuation should be used to measure the inventories for the year 2011-12?

Ans: At Cost. If at all any service provider has inventories then it should be measured at the cost of their service provision. These costs mainly include labour, costs of supervisory

personnel and overheads directly engaged in providing the service. But, labour and other costs which are related to sales & administrative personnel will not be included in valuation of inventories. In fact these costs are recognized as expenses in the period which they are incurred. Profit margins or non-attributable overheads are never a part of cost of inventories (Para 19).

To be continued in next issue...

Appeal for the

Sr. Names Amt. `

1 CA. Ashok Thakkar 10,000

2 CA. Darshan Bhutwala 10,000

3 CA. Dhruv Agrawal 10,000

4 CA. Divyesh Mehta 10,000

5 CA. Jay Chhaira 50,000

6 Late CA. K. N. Mehta 10,000

7 CA. Mannan A. R. 10,000

8 CA. Manish Baxi 20,000

9 CA. Mayur Swadia 10,000

10 CA. Neena Patel 52,000

11 CA. Rahul Parikh 10,000

12 CA. S. R. Parikh 20,000

13 CA. Vinod Kansara 9,000

Financial AssistanceScheme for CA Students

A Chartered Accountant in practice having 5 years of

experience in Audit namely Statutory Audit, Tax Audit,

Internal Audit, Taxation matter including e-filling of Income Tax

Returns is interested to undertaking the above

mentioned assignment either on assignment basis or in

partnership.

Contact : Mrs. Shah (M) 0 942 887 8070

Personal Column

Dear Members,

The Baroda Branch of WIRC of ICAI has a strong tradition of providing CA Students of Baroda, the best tools and support in achieving their goal of becoming Chartered Accountants. With the active help of its Members, the Baroda Branch of WIRC of ICAI has been since past few years providing needy CA Students with financial assistance so as to enable them to meet a part of their estimated education costs.

• Financial Assistance would be available to eligible Students at all levels as under:

oCPT Students : Rs. 3,000/-

oIPCC Students : Rs. 10,000/-

oFinal Students : Rs. 10,000/-

The above financial assistance has been computed with an aim of e n a b l i n g s t u d e n t s t o m e e t approximately 50% of their fees through such financial assistance.

The Branch seeks its Members’ active support in successful continuation of the above Scheme. Members who would l ike to contr ibute towards the Earmarked Funds for financial assistance to CA Students or Members who would like to provide direct financial assistance to IPCC Students & Final Students may kindly contact CA Pradeep Agrawal, Chairman (9327243479). The Branch shall be maintaining a list of such members and on receipt of request of

financial assistance from students, after evaluating their eligibility, the Branch shall refer such student to the Member, who then shall provide direct financial assistance to such student under intimation to Branch.

Again, I seek your valued support and request you to contribute generously to this noble initiative.

With regards,

CA Pradeep Agrawal, Chairman, Baroda Branch of WIRC of ICAI

Worthy

Contributors - 2012


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Compiled by CA. Ashok Thakkar

ICAI Updates

DIRECT ADMISSION TO THE CHARTERED ACCOUNTANCY COURSE :

Till 31st July, 2012 any student who like to join CA course, is essential to pass CPT examination ( entrance) and for joining Practical Training (Articled Training) it is essential to pass 1st Group of IPCC examination.

Now, Institute of Chartered Accountants has come up with new notification towards Direct admission to Chartered Accountancy course for Graduate, Master Graduate and professionally qualified students in other stream which is applicable from 1st August 2012.

Salient features of this notifications :

1. The following categories of students shall be exempted from passing the Common Proficiency Test (CPT) (entry level) :-

(A) Graduates or Post Graduates in Commerce having secured in aggregate a minimum of 55% of the total marks or its equivalent grade in the examination conducted by a ny r e c o g n i s e d U n i v e rs i t y (including Open University) can directly join article ship training without going for CPT route.

Commerce graduate may be considered as by studying any three papers of 100 marks each out of Accounting, Auditing, Mercantile Laws, Corporate Laws, Economics, Management (including Financial Management), Taxation (including Direct Tax Laws and Indirect Tax L a w s ) , C o s t i n g , B u s i n e s s Administration or Management Accounting;

(B) Graduates or Post Graduates other than those falling under Commerce stream mentioned above having secured in aggregate a minimum of 60% of the total marks or its e q u i v a l e n t g r a d e i n t h e examination conducted by any recognised University (including Open University).

(C ) Candidates who have passed the

Intermediate level examination or its equivalent examination by whatever name called conducted b y T h e I n s t i t u t e o f C o s t Accountants of India or by The Institute of Company Secretaries of India.

2. Admission to Practical Training (Articled Training) :

(i) Students covered under the category mentioned at (A) above, i.e. Commerce Graduates or Post Graduates or Non-Commerce Graduates or Post Graduates with specified percentage of marks shall be eligible for admission to three years art ic led t ra in ing , on completion of –

(a) Information Technology Training; and

(b) Orientation Course

(ii) Students covered under category (C) above, i.e. those who have p a s s e d I n t e r m e d i a t e l e v e l examination of The Institute of Cost Accountants of India or The Institute of Company Secretaries of India shall be eligible for admission to three years articled training on –

(a) Passing of 1st Group or Both Groups of Intermediate (Integrated P r o fe s s i o n a l C o m p e t e n c e ) Examination; or Accounting Technician level Examination;

( b ) C o m p l et i o n o f I n fo r m at i o n Technology Training; and

(c) Completion of Orientation Course

3. Eligibility to appear in the I n t e r m e d i a t e ( I n t e g r a t e d P r o fe s s i o n a l C o m p e t e n c e ) Examination:

(i) Applicable for students falling under Category (A) above

A candidate shall be eligible for admission to the Intermediate ( I n t e g r a t e d P r o f e s s i o n a l Competence) Examination after completing nine months of practical training.

(ii) Applicable for students falling under Category (C) above

A candidate shall be eligible for

admission to the Intermediate ( I n t e g r a t e d P r o f e s s i o n a l Competence) Examination if he –

(a) is registered for the Intermediate ( I n t e g r a t e d P r o f e s s i o n a l Competence)Course; and

(b) has undergone a study course for a p e r i o d o f e i g h t m o n t h s commencing from the date of registration to the Course.

Conclusion :

Due to this changes, graduate students may think about joining this course as it can save 1.5 years at entry level and save some cost accordingly.

The Board of Studies intends to draw a Panel from amongst its Members for acting as “Coordinator” for monitoring G M C S C o u rs e a n d O r i e n t a t i o n Programme,.

A Member with five year in practice shall be eligible for consideration to be included in the Panel. The Coordinator shall be required to perform the following functions:

1. Visit the organizing centre at least twice during the GMCS Course and once during the Orientation Programme.

2. Check the attendance record of students.

3. Check the attendance record of faculty.

4. Check infrastructure and other facilities at the centre.

5. Submit report of his/her every visit.

6. Collect students’ feedback form on the last day of the Course.

7. Analyse “Students’ Feedback Form” and submit a consolidated report to the Director, Board of Studies.

The Coordinator shall be paid an honorarium of Rs.2500/- for each visit to the centre.

Interested members are requested to contact at The Director, Board of Studies, The Institute of Chartered Accountants of India, Plot No. A-29, Sector-62, Noida-201309 or email to:

[email protected]

ACTING AS A CO-ORDINATOR :


NewsLetter


Marcel Proust said “the real act of discovery consists not in finding new lands but in seeing the world with new eyes”.

It is time once again to see the same landscape with a new lens and discover an opportunity that is yet to catch our attention.

Let’s connect with ICAI, brings you another opportunity which centres around the subject which is so contemporary for the 21st century professional.

Invitation of Resource Persons for Development of Study Material on XBRL

ICAI invites resource persons for development of course material on XBRL. A broader outline of the topics proposed to be covered in the course material is placed below for your reference.

I. An Overview of XBRL

• What is XBRL

Let's Connectwith ICAI

Compiled by CA. Neena Patel

• Difference between HTML, XML and XBRL

• Need for Electronic Business Reporting and its advantages

• XBRL Misperceptions

II. XBRL Concepts in detail

• Evolution of XBRL- Specifications, standards, XBRL concepts & taxonomies

• Overview of Taxonomy, its structures and linkbases

• Att r i b u te s o f e l e m e nt s a n d terminologies in XBRL

• Tuples, Dimensions and Footnotes

• Applications of XBRL

• Working with Indian GAAP Taxonomy

III. Case Study

• Mapping and Tagging

• Taxonomy Editions and Extensions

• Generation of Instance Documents

• Validation of Instance Document

• Defining processes and controls

• Hands-on Training

IV. Implementation of XBRL

• Overview of XBRL in India and

Internationally

• Benefits of using XBRL- to regulators, corporates, investors, government, etc.

• XBRL Implementation Abroad

• XBRL Implementation in India by various regulators viz. SEBI, RBI, MCA, etc.

V. XBRL Tools

• Points to Check in Software, Software Vendor and Service Vendor

• Methods of Conversion- Integration with ERP, In-house or Outsource

VI. Opportunities in XBRL

• Opportunities for Professionals in India and Abroad

The interested members may send in their expression in XBRL projects, and the proposed timeline with the above-said scope of work. The expression may be e-mailed to [email protected] with the subject “Interest for Development of Course Material on XBRL”.

(Source: www.icai.org; The Chartered Accountant- ICAI Journal)


NewsLetter


5 Top Windows 8Features You’ll Love

Compiled by CA. Rahul Parikh

Source: www.hongkiat.com

3. Improved Search Function

Windows 8 has no search box at the bottom of the Start menu. Heck, it doesn’t even have the trademark Start menu! That doesn’t mean that there’s no convenient search function available. All you need to do is to type anything, and a search box will appear from the right and give you the results. The search capability is even stronger this time, displaying all the matching apps and files instantaneously.

(Image Source: JaisonYR)

Unlike Windows 7, in Windows 8 you can also search within apps that utilize Windows 8's search function. The search pane that pops out on the right of your desktop will contain the list of apps which you can conduct the search in. For instance, if you’re looking for the emails sent by a particular contact, typing that name and clicking on the email app would allow you to search from within.

4. Windows To Go

Of the entire list here, this is one feature that offers the most convenience to users. Windows To Go allows users to make a copy of their OS complete with their settings, wallpapers, files and even apps, into a USB thumb drive. Plugged it into another computer with Windows 8 already installed, and you can boot up the PC and make it look exactly alike the OS

you normally use, with all settings intact.

(Image Source: Engadget)

It sounds rather amazing, doesn’t it? The potential for such a feature is high and possibilities, many. For one, a virus-infected and crashed system could be revived by simply plugging in the USB thumbdrive with your last saved settings, inclusive of all your files, apps, etc. Users don’t have to worry about losing the ability to work on their projects just because their PC is down; they can always rely on plugging in that thumbdrive into another Windows 8-installed PC. Another is that users may simply bring back work from the office with that thumbdrive rather than a much bulkier laptop.

5. Windows Live Syncing

Similar to Windows To Go, the new Windows 8 will provide Windows Live syncing, such that users can login on any Windows 8 PC with ‘Live ID’ and get back their own personalized settings on it. The desktop will look the same every time the user login on a PC with their Windows Live account. Migrating to a new PC is probably made easier when the user has all the essential settings synced.

(Image Source: Windows 8)

To be continued from last issue ...

How different will this be from Windows To Go? Well, Windows To Go seem to serve more as a c o n t r o l l e d d e v i c e f o r I T administrators to distribute to employees (with exact duplicates of Windows 8 with the same settings, wallpapers, apps, etc on thumbdrives), while Windows Live Syncing is more to allowing users to keep the basic settings and data available even if they’re away from their primary PC. We can only anticipate how the former and latter will be truly be like until they are unveiled by Microsoft in due course.

AnnouncementsBaroda Branch of WIRC of ICAI is planning to organize below Certificate Courses / Post Qualification Courses during the year 2012 provided we get minimum participants. So desired members are requested to register their names with Baroda Branch on 0265-2681115 / 2680593 E-mail: [email protected] more details on course content, please visit http://www.icai.org/new_post.html?post_id=3581&c_id=81

oCertificate Course on Enterprise Risk Management

oCertificate Course on Internal Audit

oCertificate Course on Derivatives

oCertificate Course on Concurrent Audit

oC P E C o u r s e o n C o m p u t e r A c c o u n t i n g a n d A u d i t i n g Techniques (CAAT)

oDiploma in Insurance and Risk Management (DIRM)

oManagement Accountancy Course (MAC)/ Corporate Management Course (CMC)/ Tax Management Course (TMC)

oInternational Trade Laws & World Trade Organisation (ITL & WTO)

oERP Courses on SAP FA & MA Module, Microsoft Dynamics NAV

CERTIFICATE COURSES FOR MEMBERS :

POST QUALIFICATION COURSES :


NewsLetter


Orientation For Newly Qualified CAs on 21.08.2012

Workshop on Tally Revised Schedule - IV on 04.08.2012

CA. Pathik Shah,Ahmedabad

Mr. Ketan Desai, Ahmedabad Mr. Sandeep Shukla, Mumbai Mr. Varun Amin, Baroda

CA. Anirudh Sonpal, Baroda, STRC on 08.08.12

CA. Bimal Jain, Delhi on STRC on 07.08.12

CA. Mukund Chouhan, Surat, STRC on 08.08.12

CA. Puneet Agrawal, New Delhi, STRC on 09.08.2012

CA Biharilal Deora, Surat

CA Peeyush Jain, Baroda

CA V K Jain, Baroda

CA. Manish Baxi, Baroda

Mr Yogesh Dubey, Baroda

Mr. A Khandul, Ahmedabad

CA.Prasanna Tilak, Baroda CA. Harsh Roongta, Mumbai

1st Meet of South Gujarat MII on 21.08.2012

1st Service Tax Refresher Course - August 2012

CA Manilal Parsiya, Baroda on 01.08.2012

Study Circle Meeting

Independence Day Celebration at ICAI on 15.08.2012

Felicitation WICASA Event

IPCC & PCC Results for May 2012 Exams

Matki Fod Celebration on 09.08.2012

MS - EXCEL-03.08.2012


NewsLetter


If undelivered, please return to :

Baroda Branch of WIRC of The Institute of Chartered Accountants of India

www.baroda-icai.org WIRC : www.wirc-icai.org ICAI: www.icai.orgl l

DISCLAIMER : The ICAI and the Baroda Branch of WIRC of ICAI is not in any way responsible for the result of any action taken on the basis of the advertisement published in the Newsletter. The members, however, may bear in mind the provisions of the Code of Ethics while responding to the advertisements. The views and opinion expressed or implied in the Newsletter are those of the authors / contributors and do not necessarily reflect those of Baroda Branch. Unsolicited matters are sent at the owner's risk and the publisher accepts no liability for loss or damage. Material in this publication may not be reproduced, whether in part or in whole, without the consent of Baroda Branch. Members are requested to kindly send material of professional interest to [email protected]/[email protected]. The same may be published in the newsletter subject to availability of space & editorial editing.

Back Cover (4 color) 10,000 Inside Front/ Cover (4 color)Back 7,500 Full Page (1 Color) 5,000 Half Page (1 Color) 3,000

ADVERTISEMENT TARIFF : * Discount - 3 to 6 issue of 10%, 7 to 12 issue 15% * Circulated to more than 1800 Chartered Accountants

ADVERTISEMENTS : The tariff for advertising given below are duly approved by the Managing Committee of the Baroda Branch. Advertisements are received directly by the Branch and no advertising agency has been appointed for this purpose.

SUBSCRIPTION RATES : This Newsletter is circulated without any charges to its members and other important categories of recipients as per ICAI Advisory on Newsletters. Subscription rate is Rs. 20/- per issue for others.

PRINTED AND PUBLISHED BY : CA. Pradeep Agrawal on behalf of Baroda Branch of WIRC of ICAI. Published at “ICAI Bhawan”, Kalali-Tandalja Road, Atladra, Vadodara - 390 012

Printed at Multiprints, 30/B, Gandhi Oil Mill Compound, Near BIDC, Gorwa, Vadodara - 390016. Ph.: 0265-2285592

“ICAI Bhawan”, Kalali-Tandalja Road, Atladra, Vadodara - 390 012.

Telefax : +91 265 2681115 / 2680593 E-mail: [email protected]

22nd Residential Refresher Course (RRC)@ MATHERAN

ON 6-7-8 JANUARY, 2013 (Sunday to Tuesday)

Coming SoonRush for

Registration

The Byke Heritage Resort, Matheran

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