BCAS Newsletter For Members only. For Private Circulation only. … · Seminar on Permanent...

DECEMBER 20141

7, Jolly Bhavan #2, New Marine Lines, Mumbai - 400020. Tel : + 91 22 613 77 600 ; F : + 91 22 613 77 666 ; Email: [email protected] ; Website : www.bcasonline.org ; WebTV : www.bcasonline.tv

Vice-President’s Communiqué

Dear Member,

Greetings!

As I write this, the morning is much cooler and the rays of the sun on a winter morning appear more golden. There is a certain calm that envelopes the city during cooler days. However, the daytime is still hot and the work in a CA’s life continues unabated, with assessments in full swing.

In America, the last Thursday of November is celebrated as the Thanksgiving Day. This day is dedicated to offer thanks for the blessing of the harvest and of the preceding year. I particularly like the idea of offering thanks and especially taking time to remember all the blessings we have in our life–as people, things, and events. Even if our life seems challenging, somewhat uphill all the way, there is bound to be some amount of ‘blessing’ we can cull out and be grateful for. Gratitude is such an essential attribute of life that without it, we can have everything but we will remain discontented, empty and small. As accountants, we can take a moment to ‘count’ our blessings for a change. This will be a deeper audit ‘assertion’ to make our life true and fair!

Last week, I happened to meet a well-known entrepreneur who converted a traditional family business into a multi billion dollar IT Icon. He is one of the top 10 wealthiest Indians. Although most people knew him for that, that was not really the only mark of that man. The event where I met him was organised to celebrate the spirit of philanthropy that he demonstrated in his lifetime. He had pledged/donated 25%

Harnessing Talent and Providing Quality Service A Monthly Newsletter of the Bombay Chartered Accountants’ Society

BCASNewsletterFor Members only. For Private Circulation only. Price: R10

(Continued on page 2)

(Continued on page 2)

President: Nitin P. Shingala

98200 57694 | [email protected]

Vice-President: Raman H. Jokhakar


Hon. Jt. Secretary: Narayan R. Pasari


Hon. Jt. Secretary: Sunil B. Gabhawalla


Hon. Treasurer: Mukesh G. Trivedi


Vol. 17 No. 09 December 2014

LECTURE MEETINGS

Speaker : Milind S. Kothari, Chartered Accountant Subject : Global Services Transformation - Are Indian CA firms insulated? Venue : Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai 400 020Day, Date & Time : Wednesday, 21st January, 2015, 6.15 p.m.**

Speaker : Hiro Rai, Advocate Subject : Important Income-tax decisions of 2014 Venue : Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai 400 020Day, Date & Time : Thursday, 29th January, 2015, 6.15 p.m.**

Speaker : Satya Poddar, Ph. D. Subject : Goods and Services Tax – Curtain Raiser Venue : Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai 400 020Day, Date & Time : Wednesday, 4th February, 2015, 6.15 p.m.**

PROGRAMMES AT A GLANCE DATE VENUE PAGE NO.

Introductory Seminar on Fraud Investigation and Forensic Audit....................17.01.2015........................................Walchand Hirachand Hall, Churchgate ............................... 3

2nd Senior Chartered Accountants’ Meet.......................................................................24.01.2015 to 26.01.2015.........Hotel Courtyard, Marriot, Pune...................................................... 9

13th Residential Leadership Camp/Spiritual Retreat.................................................29.01.2015 to 01.02.2015...... .Leslie Sawhny Centre, Deolali, Nasik................................... 6

Seminar on Permanent Establishment – Critical Aspects .....................................30.01.2015 .....................................Palladium Hotel, Lower Parel ..................................................... 4

Certificate Course for Professional Accountant..........................................................03.02.2015.....................................BCAS Off ice and H. R. College................................................... 5

Action Replay By A Legend! Standard Costing Demystified.................................06.02.2015....................................Jai Hind College Auditorium, Churchgate.......................... 4

Programme on REIT/InvIT............................................................................................07.02.2015.................................Babubhai Chinai Hall, Churchgate................................... 10

2nd Youth Residential Refresher Course.........................................................................19.02.2015 to 22.02.2015........Byke Resort, Goa............................................................................. 8

5th Residential Study Course on IFRS / Ind AS.............................................................19.02.2015 to 21.02.2015.........Leadership Development Academy, Lonavla.................. 6

Corporate Governance and Independent Directors.................................................19.03.2015 to 21.03.2015.......SP Jain Institute, Andehri West .............................................. 7

Lecture Meetings..........................................................................................................................21.01.2015, 29.01.2015, 04.02.2015, 06.02.2015, 13.02.2015.................................................... 1

of his personal wealth for primary education amounting to $4 billion or R 25,000 crore. His foundation runs programs for elementary education which is 90% controlled by local governments. In his speech, he mentioned that although the programmes of his charitable foundation did immense work in seven states, they always gave credit to the State Governments for the accomplishments.

BCAS 2

(Continued from page 1)

ALL THE THREE CLINICS WILL BE HELD IN THE LIBRARY OF THE SOCIETY

RIGHT TO INFORMATION CLINIC

CHARITABLE TRUST CLINIC

ACCOUNTS & AUDIT CLINIC

Advisory Panel : Narayan K. Varma, Adv. A. K. Asher, Hema D. SampatClinic Co-ordinator: Ms. Bindu Mistry – 61377624

Advisory Panel : Ratanshaw J. Damanwala, Shariq M. Contractor, Gautam S. Nayak,

Anil J. Sathe, Atul H. ShahClinic Co-ordinator: Ms. Bindu Mistry – 61377624

Advisory Panel : Sanjeev R. Pandit, Himanshu V. Kishnadwala, Jayesh M. Gandhi Clinic Co-ordinator : Ms. Bindu Mistry – 61377624

Foundation operates a Right to Information (RTI) Clinic on a regular basis. 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 diff iculties on the subject of RTI. The RTI Clinic operates on every 2nd, 3rd and 4th Saturday from 11 a.m. to 1 p.m. The next RTI Clinic days accordingly are 20th and 27th December, 2014 and 10th, 17th, 24th and 31st January, 2015. Please call to obtain a prior appointment.

The next Charitable Trust Clinic will be held on 2nd January, 2015 from 5 p.m. to 7 p.m.

Chartered Accountants and Trustees interested in having their queries solved are requested to send their queries by email to [email protected] and call to 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.

The next Accounts & Audit Clinic will be held on 3rd January, 2015 from 10.30 a.m. to 11.30 a.m.

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 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.

These two things really touched me–first was about giving and second about not taking credit for it. So many of us are blessed with quite a lot or at least quite a bit, but do we really and truly reach out to those that need it so much more? Moreover, when we give, can we cease to expect any credit for it? This was the blessing of learning I received last week which I want to share with you all.

Through the BCAS Foundation, we have collected the first target of donation for calamity-hit Kashmir. Although we anticipated a longer time to collect the amount, the response was quick and generous! So, here’s a big THANK YOU to those who contributed so generously.

The festive spirit of Christmas is already in the air. For some reason, these potent words of St. Francis of Assisi come to mind:

“O Divine Master, Grant that I may not so much seek

To be consoled as to console;

To be understood as to understand;

To be loved as to love.

For it is in giving that we receive;

It is in pardoning that we are pardoned;

And it is in dying that we are born to eternal life.”

Wishing you love, peace and joy, Merry Christmas and best wishes for a happy 2015!

LECTURE MEETINGS

Speaker: Brahmakumari ShivaniSubject: Anger - The Enemy WithinVenue: Jai Hind College Auditorium, “A” Road, Churchgate, Mumbai – 400 020Day, Date & Time: Friday, 13th February, 2015, 6.15 p.m. **

(Under the auspices of Amita Memorial Trust and jointly with The

Chamber of Tax Consultants)

Speaker: Narendra P. Sarda, Chartered Accountant

Subject: Standard Costing

Venue: Jai Hind College Auditorium, “A” Road, Churchgate,

Mumbai – 400 020

Day, Date & Time: Friday, 6th February 2015, at 5.00 p.m. *

** Fellowship over a cup of tea at 5.45 p.m.

* Fellowship over a cup of tea at 4.30 p.m.

Yours truly,

Raman H. Jokhakar

DECEMBER 20143

BCAS 4

With increased globalization, the Concept of Permanent Establishment

(PE) has gained significant importance due to its direct impact on the tax

revenues of the affected countries, both in India and in other countries.

The issue of whether there exists a PE or not, and if yes, how much profit

should be attributed to it, is becoming an increasingly challenging issue

in tax compliance and tax risk management. Expanded and inclusive

manner of treating activities to allege the presence of a PE by the

revenue authorities has created uncertainties and the emergence of

e-commerce as the preferred method of conducting international trade

has created an acute need to re-look at the very concept as we know it

today. Further, OECD in the process of re-writing the rules of international

taxation by introducing Base Erosion & Profit Shifting (BEPS) Reports has

created a new challenge as well as an opportunity for tax professionals.

Considering the importance and the far reaching implications of the concept

of PE, this Seminar is specially designed to update members in practice and

working in the industry on the various issues connected therewith.

Day & Date Friday, 30th January 2015

Time 9.30 a.m. to 5.30 p.m.

(Registration and Snacks start at 9.00 a.m.)

Venue Palladium Hotel, Lower Parel, Mumbai

Fees

Members

(Ordinary, Life

& Associate

Members)

R 3,500 + R 432 (ST) = R 3,932

Non –

Members

R 4,000 + R 495 (ST) = R 4,495

(Fees include course material, breakfast, lunch and contribution of

` 50/- towards BCAS Foundation)

Topics Speakers

Recent Judicial Development on

various types of PE (with special

emphasis on subsidiaries as a

PE and Secondment PE) and

Attribution of Profit to the PE

M. P. Lohia, Chartered Accountant

PE in the context of E-commerce

(special emphasis on BEPS Report)

Shefali Goradia, Chartered Accountant

Exclusions from the PE - special

reference to Liaison Off ice

Yogesh Thar, Chartered Accountant

Case studies on PE including

attribution of profits

Sunil Lala, Advocate

Enrolment is restricted to 125 participants. Limited seats are reserved for

non-members on first-come-first-served basis.

Enrolment fees are non-refundable.

Enrolment form is printed on page 20.

Chairman : Gautam S. Nayak

Co-Chairman : Deepak R. Shah

Convenors : Chetan M. Shah, Dhishat B. Mehta & Gaurang V. Gandhi

Co-ordinators : Anil D. Doshi, Mayur B. Desai & Kirit P. Dedhia

INTERNATIONAL TAXATION COMMITTEE

Seminar on Permanent Establishment – Critical Aspects

The Infotech & 4i Committee proudly presents a mesmerizing Action

Replay by none other than Mr. Narendra P. Sarda, Past President of ICAI.

Thousands of CA students who appeared for the CA exams in the 1970s

and 1980s would most certainly attribute their success in the Costing paper

to that one memorable lecture by Mr. Sarda in a packed hall. Standard

Costing was explained by him in a manner that nobody else has yet been

able to replicate till date. His lectures were always attended by hundreds of

students. And there was never any doubt in anyone’s mind that Mr. Sarda’s

style of teaching was and remains unique. He stopped teaching Standard

Costing more than 2 decades ago. And that to our minds, is a great loss for

the students who have taken up the CA course since then.

However, the exciting and good news is that Mr. Sarda has agreed to

take one lecture – after so many years – again on Standard Costing for

students. So, here are the details of this “once in a life time” event:

Subject Standard Costing Demystified

Speaker Narendra P. Sarda, Chartered Accountant

Day & Date Friday, 6th February 2015

Time 5.00 p.m. to 8.00 p.m.

(Fellowship over a cup of tea at 4.30 p.m.)

Venue Jai Hind College Auditorium, “A” Road, Churchgate,

Mumbai – 400 020

Entry is free for all. We are sure that many CAs would also love to take

advantage of this unique and special opportunity. But we request our

members to encourage their students to attend instead. Very few

youngsters from today’s generation would have had the opportunity of

interacting with Mr. Sarda or knowing about his teaching skills. It would

be a deserving gift from a CA to his/her student. Let us all send as many

students as possible to listen to Mr. Sarda. Let us utilize this amazing

opportunity and introduce our Guru to our Shishyas.

With a view to ensure discipline and order at the venue, and

considering the almost 100% certainty of there being a huge demand

for this event, despite the entry being free, we would request you

to send us the enrolment form duly filled in with the names of the

students who would be attending. It would be fair and reasonable to

limit the enrolment to 5 students per member.


Chairman : Ameet N. Patel

Co - Chairman : Nandita P. Parekh

Convenors : Kinjal M. Shah & Pinky H. Shah

INFOTECH & 4I COMMITTEE

Action Replay By A Legend!

Imagine yourself sitting in the audience in a packed hall

And

Don Bradman driving an exquisite straight drive on the stage OR

Bjorn Borg swinging his strong arms and scoring an Ace with his

famous racket on the stage

OR

Muhammad Ali floating like a butterfly and stinging like a bee

with his impactful jabs on the stage

OR

Pele scoring a superb goal with a flying kick on the stage! Possible?

Most certainly not.

These legends will never show us an action replay ever again.

But a legend from our profession has agreed for an Action

Replay! At our request.

DECEMBER 20145

BCAS 6

The annual Leadership Camp has evolved into Spiritual Retreat over the

past few years. The themes of last three camps have been (i) 2012: Everyday

Happiness; (ii) 2013: Living in Harmony and (iii) 2014: Holistic Wellbeing.

This year we have selected the theme of: “Body-Mind Balance”.

Participants who have been regularly attending this annual event have

experienced tremendous personal growth and have kindled desire for

spiritual pursuit. Every Retreat brings fresh ideas and rejuvenates body,

mind and intellect of the participants.

About this year’s theme of ‘Body – Mind Balance’:

“A sound mind in a sound body; is a short, but full description of a happy

state in this world”. – John Locke. Healthy mind leads to healthy body.

Our body and mind are so interconnected that wellness or otherwise of

one affects or influences the other. Therefore, balancing or integration

of both these vital instruments of our existence is vital for a meaningful

and purposeful life.

During the Retreat, participants will be exposed to various techniques

of body-mind balancing through interactive sessions, meditation and

other activities.

Faculty: Dr. Harish Joshi and Mrs. Kokilaben H. Joshi from Indian

Spiritual Healing Foundation, Ahmedabad.

Dr. Harish Joshi is a Neuro-Physician and used to practice medicine before

giving up worldly pursuits for spiritual growth. He is an ardent follower

of Sri Sri Mahavatar Babaji and has been blessed with divine knowledge

of Spiritual Healing (Parashakti Chikitsa) and other Yogic Practices from

Babaji. He had been “Art of Living” Teacher and has conducted number of

courses for the Indian Army. At present he is imparting divine knowledge

of Parashakti Chikitsa to seekers. He is being assisted in his mission, by his

wife Smt. Kokila Joshi.

Programme Details:

Days Thursday, Friday, Saturday & Sunday ( Upto Lunch Time)

Dates 29th, 30th, 31st January & 1st February 2015

Venue Leslie Sawhny Centre, 83, Rest Camp Road, Deolali,

Nasik 422 101

Course Fee Early Bird

Up to 15 January 2015

From 16th January 2015

Member

and Family

(Minimum

Two Persons)

` 7,120 + Rs 880 (ST) =

` 8,000

` 7,565 + ` 935 (ST) = ` 8,500

Single

Person

` 7,565 + ` 935 (ST) =

` 8,500

` 8,010 + ` 990 (ST) =

` 9,000

Fee Includes Transportation (on car pool basis), Study Material,

Food, Stay, and contribution of ` 50/- towards BCAS Foundation.

Chairman : Mayur B. Nayak

Convenors : Hemant P. Gandhi, Krishna kumar Jhunjhunwala &

Mihir C. Sheth

Co-ordinator : Krishna kumar Jhunjhunwala

HUMAN RESOURCES COMMITTEE

13th Residential Leadership Camp/Spiritual Retreat

We recommend members to join this Retreat with spouse. In the past,

participants attending with spouse have immensely benefited by this

unique programme as they begin to share similar values and vision of

life. The Retreat is also open to other close relatives and friends.


Chairman : Harish N. Motiwalla

Co-Chairman : Rajesh R. Muni

Convenors : Abhay R. Mehta, Mukesh K. Gilda & Nikhil D. Patel

ACCOUNTING & AUDITING COMMITTEE

5th Residential Study Course on IFRS / Ind ASThe International Financial Reporting Standards (IFRS) are fast emerging

as the globally accepted accounting framework with more than 100

countries having adopted or permitting use of IFRS and several other

countries having announced adoption of IFRS. In India also, the Finance

Minister has announced to introduce Ind AS, the new set of accounting

standards converged with IFRS. It is expected that the Indian companies

would be permitted to voluntarily follow the Ind AS from F.Y.2015-16 and

may be made mandatory from F.Y.2016-17. Announcements are expected

for providing the timelines for adoption of Ind AS for the financial services

sector as well as insurance companies. With the enactment of Companies

Act, 2013, there are certain sections affecting financial statements which

also require study and analysis.

Further, with the activities in capital markets and investments in global

markets gaining momentum, the converged accounting standards would

certainly increase acceptability of financial statements prepared by the

Indian companies. This would also have effect on lowering the cost of

borrowings and increase in the valuations of the Indian companies.

Realising the importance of the journey of convergence with IFRS/Ind

AS and to be a catalyst in the transition to Ind AS/IFRS implementation,

we at BCAS have structured Fifth Residential Study Course to equip the

professionals with relevant skills and be a part of the smooth transition.

The 5thResidential Study Course (RSC) is in continuation of the learning

process of IFRS which started in the year 2009.

The 5th Residential Study Course is scheduled on 19th, 20th & 21st

February 2015 at L&T, Leadership Development Academy, N.H.4,

Lonavla – 410403.

The detailed program structure with case study papers/ presentation

papers along with paper writers/speakers will be announced shortly. In

the meanwhile please ensure to block the dates for the learning initiative.

This dilettante notion that the global economy is evil

because big corporate leaders make too much money...

they do make too much money, but the only way we’ve

figured out how to generate wealth in this world is

through the market economy.

- Joe Klein

DECEMBER 20147

The Companies Act, 2013 has overhauled a lot of Sections and

provisions relating to the Governance of both Private Limited &

Limited Companies. The Ministry of Corporate Affairs carried out

corresponding changes to the Clause 49 of the Listing Agreement

which deals with the Independent Directors for the listed companies. A

need for comprehensive and strong legislation relating to Independent

Directors became vital and eventually led to the overhauling of not only

the Companies Act but also the Clause 49 of the Listing Agreement.

A lot of responsibility and liabilities are now placed not only on the

directors of listed companies but more so on the Independent

Directors also. The Regulators felt that the roles, duties and liabilities

of all the directors needed to be relooked and for making their role

effective for Corporate Governance and for meeting the changes in

the Companies Act, 2013. Clause 49 has added a new dimension by

proposing appointment and presence of Women Directors on Boards.

The Act has introduced new committees like the Corporate Social

Responsibility Committee to ensure good Corporate Governance apart

from the existing committees.

With a view to look at all these new provisions, the roles and

responsibility of the board, The Bombay Chartered Accountant’s

Society along with S.P. Jain Institute of Management and Research

(A premier business school also entrusted with the job of furthering

Corporate Governance responsibilities by the Ministry of Corporate

Affairs) have again fine tuned one of their most successful programme

on Corporate Governance and Independent Directors with a special

focus on Women Directors.

The programme will be a three day full time programme to be held at the

campus of S.P.Jain’s Institute of Management and Research to address

the following issues:

1. Overall role of the Board and Independent Directors

2. Strategy, Culture, Planning and Board Dynamics required to be

addressed

3. Responsibility to all the Stakeholders

4. Role of various committees with special focus on the Audit Committee

dealing with related party transactions, Directors responsibility on

Internal Controls, Regulatory Compliances, Nomination, Evaluation

and Remunerations

5. Corporate Social Responsibility Committee

6. Liabilities of the Directors

7. Expectation of all the Stakeholders from the Independent Directors.

Chairman : Kanu S. Chokshi

Convenors : Jayant M. Thakur, Manish P. Sampat & Sameer L. Kapadia

Co-ordinators: Bhargava Vatsaraj , Kinjal M. Shah, Manish P. Sampat &

Shreyas P. Trivedi

CORPORATE & SECURITIES LAWS COMMITTEE

Certificate Course on Corporate Governance and Role of Independent Directors with special focus on Women Director

Jointly with

SP Jain Institute of Management & Research

Programme details are presented hereunder:

Day & Date Thursday, 19th March to Saturday, 21st March 2015

Time 10.00 a.m. - 6.00 p.m

Venue SP Jain Institute of Management & Research, Inside Bhavans College Campus, Munshi Nagar, Dadabhai Road, Andheri (West), Mumbai - 400 058

Fees ` 18,690 + ` 2,310 (ST) = ` 21,000

Fees include Breakfast, Lunch, Tea Coffee, Course Material and certificate award function preferably at star venue

Enrollment for Limited seats only

Day Topic

Day 1

• Introduction to Concepts and Corporate Social Responsibility to all stake holders

• Strategy & overall Role of the Board• Audit Committee Objectives, Charter, Meeting Programme

and other committees• Related Party Transactions

Day 2

• Internal Controls• Directors Responsibility Statement with special refernce to

Regulatory Compliance u/s 134(5) of the Companies Act, 2013• Financial Statement Oversight• Liabilities of a Director• Whistle blowing

Day 3

• Statutory Auditor Relationship• Internal Audit• Risk Management• Board Dynamics & Expectations from Independent Directors• Concluding Session


BCAS 8

DECEMBER 20149

BCAS 10

DECEMBER 201411

DECEMBER 201413

BCAS 14

DECEMBER 201415

RECENTLY RELEASED

PUBLICATIONS OF BCAS

Taxation of Fees for Technical Services – A Referencer

In this book, the two authors have mainly focused on cross-border payments of Fees for Technical Services. It is an attempt by both the authors to compile various judicial pronouncements on the subject of FTS and classify them according to various typical cross-border services. They have selected important decision(s) pertaining to each typical service and provided a brief overview of such decision(s). This publication would be found useful both by the Taxpayers and the Tax Practitioners/Advisors.

Members : R 450/-

Non – Members : R 500/-

Postage : R 200/-

FAQs on Accounting Standards

(The 7 authors of the book have tried to simplify the understanding of four basic Accounting Standards - AS2, AS7, AS9 and AS15, which have an important applicability in any business entity.

To make the users of financial statements as well as preparers of financial statements aware about the importance of each accounting standard, the authors have disseminated the Accounting Standard into easy and simple Question and Answer format so as to have ease in understanding and demystifying the accounting standards.

Members : R 60/-

Non-Members : R 75/-

Postage : R 40/-

Gita for Professionals – 2nd Edition (In English & Gujarati)

The author feels that Conflict is very much a part of life, as experience is. Indeed, it is part and parcel of our existence both at home and elsewhere.

In this book the author has elucidated the concepts of ‘duty and ethics’ by means of parables and anecdotes which at times seem autobiographical. In the second revised and enlarged edition, the author has added a new Chapter containing “Thirteen lessons from the Gita for professionals to make this world a better place to live in”, wherein he not only talks about various aspects of one’s personality such as Humility and Non-violence but also throws light on some of the essentially good acts in life such as Giving, Sacrifice, Forgiveness, Goal- setting, Discipline, Cleanliness, Service to Guru etc.

Price : English - R 75/-

Gujarati - R 100/-

Postage : R 50/-

The CD contains the Paper and Presentation and Case Studies of the Residential Refresher Course held from 27th to 29th June 2014.

R 1,500 for 1 CD

for Members and

R 1,800 for 1 CD

for Non-Members

Postage : R 50

BCAS 16

OTHER

PUBLICATIONS OF BCAS

Audit Checklist For Companies, Edition 2013

Appreciating the increased statutory

compliance and covering standards

on auditing, a revised and updated

publication on Audit Checklist is made.

In 2007, the publication on Audit

Checklist was released. Members had

an overwhelming request for this

publication. The revised and updated

edition of this publication extensively

covers in detail Accounting Standards,

Standards on Auditing, Audit Documentations and

important material of statutory requirements.

Member : R 400

Non-Member : R 500

Postage : R 200

Advance Rulings Law And Procedures – Now with a Supplement and free CD

Book - This publication aims to give

a broad idea of the law, purpose,

and procedure for seeking an

advance ruling from Income Tax

perspective. It also shares the first

hand experience of the Authors in

representing before the Hon’ble

Authority and some of the frequently

asked questions practically faced by

the Authors. Additionally, a summary

of cases wherein the rulings have

been pronounced by this Authority

in the last three years, has also been

captured.

Supplement – This supplement is

updated with the rulings pronounced

by the Authority for Advance

Rulings, since July 2012. This

supplement when read along with

the original Publications, would be

a comprehensive reference material

for the subject on Authority for

Advance Rulings.

RTI for ITI – Right to Information for Income Tax Issues

This book is an attempt to ease the assessee’s issues in the Income Tax arena by making use of the RTI Act and other grievance redressal systems. It is aimed at being an easy-to-comprehend guide for tax payers at large. The book acts as a handy guide for procuring much needed information in relation to various usual and not-so-usual Income Tax issues faced frequently by the taxpayers. Important information is made available at your fingertips by way of annexures.

Member : R 100

Non-Member : R 120

Postage : R 50

Laws & Business – A Compendium (4th Edition)

This edition is quite wide in its coverage

and as in earlier editions, the book has

been divided into 5 sections. Interesting

highlight of this edition is an extensive

coverage of Laws relating to the Real

Estate and Financial Sectors, which will

be of immense use and will serve as a

guide to the taxpayers and professionals.

Member / Non-Member : R400

Postage : R200

FAQ’s on e-TDS

The 3 authors of the book have tried

to list and answer the questions based

on their practical experience and those

of their clients. They have however

addressed most of the common issues

faced by tax deductors. This publication

would therefore be a useful and handy

tool for staff entrusted with the work of

TDS compliance. This book will serve

its purpose of helping tax deductors

understand the finer nuances of the

procedures, and aid them in the process

of TDS compliance.

Member : R 60

Non-Member : R 75

Postage : R 30

APS

Ba

a

a

pSupplement & CD

CD – Free CD contains a soft copy of the Publication and the

Supplement.

Member / Non-Member : R 125

Postage : R 50

DECEMBER 201417

Subscribe Now!!!

Lecture Meeting on International & Domestic Transfer Pricing – Recent Developments by CA. T. P. Ostwal, held on 5th November, 2014, is now available on BCAS Web TV.

BCAS WEB TV

Payment can be made by cheque/DD payable at par in Mumbai in favour of ‘Bombay Chartered Accountants’ Society.’ You can also pay by cash/credit card at the payment counter of BCAS Off ice. If you have an Imprest Account, then you can instruct us to adjust the subscription through the imprest Account. For further details log on to www.bcasonline.org

Particulars SubscriptionCharges + Service Taxfrom 1st April 2014 to

31st March 2015

Total Charges

Ordinary, Life and Associates of Corporate Membership R 600 + 12.36% R 674

Students R 600 + 12.36% R 674

Journal subscribers R 900 + 12.36% R 1,011

Non-members R 1,200 + 12.36% R 1,348

BCAS 18

FROM RBIContributed by : Gaurang V. Gandhi

The Reserve Bank of India has issued the following 8 circulars & DIPP 1 Press Note

A. P. (DIR Series) Circular No. 37 dated November 20, 2014

Export of Goods / Software / Services – Period of Realisation and

Repatriation of Export Proceeds – For exporters including Units in

SEZs, Status Holder Exporters, EOUs, Units in EHTPs, STPs and BTPs

This circular states that all exporters, including Units in SEZ,

Status Holder Exporters, EOU, Units in EHTP, STP & BTP, must

uniformly realize and repatriate export proceeds with respect to

export of goods / services / software within a period of 9 months

from the date of export. However, in the case of exports made

to warehouses established outside India, the period for realization

and repatriaton of export proceeds will continue to be 15 months

from the date of export.


Notification No. FEMA.321/2014-RB dated September 26, 2014

Acquisition / Transfer of Immovable property – Payment of taxes

This circular clarifies that all transactions involving acquisition of

immovable property in India by NRI / PIO / Non-Residents are subject

to the applicable tax laws in India.


External Commercial Borrowings (ECB) Policy – Parking of ECB

proceeds

Presently, persons who have availed ECB have to immediately bring

into India, for credit to their Rupee accounts with banks in India, ECB

proceeds meant for Rupee expenditure in India for permitted end uses.

This circular permits a person who has availed ECB to park ECB

proceeds (both under the automatic and approval routes) in term

deposits with a bank in India for a maximum period of six months,

subject to the under mentioned terms and conditions, pending

utilisation for permitted end uses.

i. The applicable guidelines with respect to eligible borrower,

recognised lender, average maturity period, all-in-cost, permitted end

uses, etc. have been complied with.

ii. No charge in any form can be created on such term deposits i.e.

to say that the term deposits should be kept unencumbered during

their currency.

iii. Such term deposits must be exclusively in the name of the borrower.

iv. Such term deposits must be available for liquidation as and

when required.


Release of Foreign Exchange for Haj / Umrah pilgrimage

This circular permits persons going on Haj / Umrah pilgrimage to

carry the entire BTQ entitlement in cash / up to the cash limit specified

by the Haj Committee of India.


Routing of funds raised abroad to India

This circular states that when funds raised overseas by overseas

holding / associate / subsidiary / group companies of Indian

Companies are routed back to the Indian companies: -

1. Indian companies / their banks must not issue any direct or indirect

guarantee or create any contingent liability or off er any security in

any form for such borrowings by their overseas holding / associate

/ subsidiary / group companies except for the purposes explicitly

permitted in the relevant Regulations.

2. Funds raised abroad by overseas holding / associate / subsidiary /

group companies of Indian companies with support of the Indian

companies / their banks, as mentioned above, cannot be used in India

unless it conforms to the general or specific permission granted under

the relevant Regulations.

3. Indian companies / their banks using or establishing structures which

contravene the above will be liable for penal action as prescribed

under FEMA, 1999.


Import of Gold (under 20: 80 Scheme) by Nominated Banks / Agencies

/ Entities

This circular states that the 80 : 20 scheme for import of gold and

all instuctions / restrictions pertaining thereto stand withdrawn with

immediate eff ect.

A. P. (DIR Series) Circular No. 43 dated December 02, 2014

Notification No. FEMA. 324/2014-RB dated October 31, 2014

Remittance of Assets – Submission of Auditor’s certificate

This circular reiterates that RBI will not issue any instructions under the

FEMA, 1999 with respect to submition of certificates on tax payments.

Banks will have to comply with the instructions issued by CBDT with

respect to requirements under the tax laws, as applicable.

A. P. (DIR Series) Circular No. 44 dated December 04, 2014

Exim Bank’s Line of Credit of USD 25 million to the Government of the

Republic of Niger

Exim Bank has made available, subject to certain terms and conditions,

to the Government of the Republic of Niger a Line of Credit of US $ 25

million for financing purchase of eligible goods, machinery, equipment

and services for Potable Water for Semi Urban and Rural Communities

in Niger. 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

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 March 13, 2020 in case of supply contracts.

Press Note No. 10 (2014 Series) dated December 03, 2014

Review of Foreign Direct Investment (FDI) policy on the Construction

Development Sector – amendment to ‘Consolidated FDI Policy

Circular 2014’

This Press Note has with immediate eff ect revised paragraph 6.2.11 of

‘Consolidated FDI Policy Circular 2014’ as under: -

DECEMBER 201419

Provisions Revised policy pursuant to Press Release Existing Policy

Minimum Land

Requirements

Minimum area to be developed under each project would be: Minimum area to be developed under each project would be as under:

(i) Development of serviced plots: No minimum land requirement;

(i) Development of serviced housing plots: Minimum land area of 10 hectares;

(ii) Construction-development projects: Minimum floor area of 20,000 sq. meters;

(ii) Construction-development projects: Minimum built-up area of 50,000 sq. meters;

(iii) Combination project: Any of the above two conditions need to be complied with.

(iii) Combination project: Any of the above two conditions need to be complied with.

Minimum Capitalization

Requirements

Minimum capitalization of USD 5 million. For wholly owned subsidiary: minimum capitalization of USD 10 million;

For joint ventures with Indian partners: minimum capitalization of USD 5 million.

Timing of investment

The funds would have to be brought in within 6 months of commencement of the project.

The funds would have to be brought in within 6 months of ‘commencement of business of the Company’

Commencement of the project’ has been explained to mean ‘date of approval of the building plan / lay out plan by the relevant statutory authority’.

Subsequent tranches can be brought in till the earlier of:

(i) Period of 10 years from the commencement of the project; or (ii) The completion of the project.

No such concept of 10 years from commencement of business earlier.

Lock-in The investor is permitted to exit from the investment at (i) 3 years from the date of final instalment, subject to development of trunk infrastructure, or (ii) on the completion of the project.

The investor is permitted to exit from the investment at expiry of 3 years from the date of completion of minimum capitalization.

‘Trunk infrastructure’ has not been defined, but is explained to include roads, water supply, street lighting, drainage and sewerage.

For investment in tranches: The investor is permitted to exit from the investment at the later of (a) 3 years from the date of receipt of each tranche/ instalment of FDI, or (b) at expiry of 3 years from the date of completion of minimum capitalization.

Repatriation of FDI or transfer of stake by a non-resident investor to another non-resident investor would require prior FIPB approval.

Prior exit of the investor only with the prior approval of FIPB.

Sale of developed plots only

Only developed plots are permitted to be sold. Developed plots would mean plots where trunk infrastructure is developed, including roads, water supply, street lighting, drainage and sewerage.

Sale of undeveloped plots prohibited. Undeveloped plots would mean plots where roads, water supply, street lighting, drainage and sewerage, and other conveniences, as applicable under prescribed regulations, have not been made available.

The requirement of completion certificate has been done away with. The investor was required to provide the completion certificate from the concerned regulatory authority before disposal of serviced housing plots.

Minimum development

No requirement of any such minimum development. At least 50% of the project must be developed within a period of 5 years from date of obtaining all statutory clearances.

Exemption They are no longer exempt from the sale of undeveloped plots. Certain investments were exempt from complying with the following requirements: (i) minimum land area; (ii) minimum capitalization, (iii) lock-in, (iv) 50% development within 5 year requirements and (v) sale of undeveloped plots.

Affordable Housing

Projects which allocate 30% of the project cost for low cost aff ordable housing are exempt from the minimum land area, and minimum capitalization requirements.

No such exemption.

Certificate from architect

Investee company required to procure an architect empanelled by any authority authorized to sanction building plan to certify that the minimum floor area has been complied.

No such requirement.

Completed projects

100% FDI permitted in completed projects for operation and management of townships, malls/ shopping complexes and business centers.

No such provision

Responsibility for obtaining all necessary approvals

Investee Company. Investor / Investee company.

BCAS 20

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BCAS Study Circles 2014–15

Study Circle No. Subject Fee Tick your

choice here

I Direct Tax Laws 449*

II Indirect Tax Laws 449*

III Company Law, Auditing & Accounting 449*

IV FEMA 449*

V Information Technology 449*

Com

bine

d En

rolm

ent

Form

Fraud Investigation and Forensic Audit...........................................17-01-2015.........................................................R3,371 per member..........................R4,045 per non-member.........Permanent Establishment – Critical Aspects................................. 30-01-2015...............................................................R 3,932 per member....................... R4,495 per non-mber...............

Lecture on Standard Costing Demystified..................................... 06-02-2015.......................................................................................................................FFree Entry ......................

13th Residential Leadership Camp/Spiritual Retreat.....................29.01.2015 to 01.02.2015..................................Till 15.01.2015..............................................From 16.01.2015

Member and family ( Minimum 2 persons).............................................R 8,000......................................................R 8,500.......................... Single person.........................................................................................R 8,500...................................................R 9,000.........................

2nd Senior Chartered Accountants’ Meet........................................24.01.2015 to 26.01.2015...........................................R 15,0000 per person.................................... R 28,0000 per couple....

Certificate Course for Professional Accountants...........................03.02.2015 onwards............................................R 6,741 per participant.......................................................................

Programme on REIT/Invit.....................................................................07.02.2015..........................................................Before 07.01.2015.......................................From 07.01.2015

Member................................................................R 2,022...................................................R 2,247.......................... Non-Member.........................................................R 2,528...................................................R 2,809...........................

Corporate Governance and Independent Directors....................19.03.2015 to 21.03.2015....................................R 21,000 .........................................................................................................

2nd Youth Residential Refresher Course ............................................19-02-2015 to 22-02-2015.................................Till 20.12.2014..................................................After 20.12.2014

Member............................................................... R 11,235..................................................R 13,482........................ Non-member........................................................R 12,358..................................................R 14,606.......................

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Camp

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VI Human Resource Development 449*

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