E-Newsletter - Bombay Chartered Accountants

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BCASNewsletter
Harnessing Talent and Providing Quality Service
A Monthly Newsletter of the Bombay Chartered Accountants’ Society
Vol. 17  No. 09  December 2014
Vice-President’s Communiqué
Dear Member,
LECTURE MEETINGS
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%
Speaker : Milind S. Kothari, Chartered Accountant
Subject : Global Services Transformation - Are Indian CA firms
insulated?
Venue : Walchand Hirachand Hall, 4th Floor, IMC, Churchgate,
Mumbai 400 020
Day, 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 400 020
Day, 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 400 020
Day, Date & Time : Wednesday, 4th February, 2015, 6.15 p.m.**
(Continued on page 2)
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.
(Continued on page 2)
PROGRAMMES AT A GLANCE
DATE
VENUE
PAGE NO.
Introductory Seminar on Fraud Investigation and Forensic Audit....................17.01.2015........................................Walchand Hirachand Hall, Churchgate ...............................
2nd Senior Chartered Accountants’ Meet.......................................................................24.01.2015 to 26.01.2015.........Hotel Courtyard, Marriot, Pune......................................................
13th Residential Leadership Camp/Spiritual Retreat.................................................29.01.2015 to 01.02.2015...... .Leslie Sawhny Centre, Deolali, Nasik...................................
Seminar on Permanent Establishment – Critical Aspects .....................................30.01.2015 .....................................Palladium Hotel, Lower Parel .....................................................
Certificate Course for Professional Accountant..........................................................03.02.2015.....................................BCAS Office and H. R. College...................................................
Action Replay By A Legend! Standard Costing Demystified.................................06.02.2015....................................Jai Hind College Auditorium, Churchgate..........................
Programme on REIT/InvIT............................................................................................07.02.2015.................................Babubhai Chinai Hall, Churchgate...................................
2nd Youth Residential Refresher Course.........................................................................19.02.2015 to 22.02.2015........Byke Resort, Goa.............................................................................
5th Residential Study Course on IFRS / Ind AS.............................................................19.02.2015 to 21.02.2015.........Leadership Development Academy, Lonavla..................
Corporate Governance and Independent Directors.................................................19.03.2015 to 21.03.2015.......SP Jain Institute, Andehri West ..............................................
Lecture Meetings..........................................................................................................................21.01.2015, 29.01.2015, 04.02.2015, 06.02.2015, 13.02.2015....................................................
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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
President: Nitin P. Shingala
98200 57694 | [email protected]
Hon. Jt. Secretary: Narayan R. Pasari
98200 38095 | [email protected]
Vice-President: Raman H. Jokhakar
98208 77976 | [email protected]
Hon. Jt. Secretary: Sunil B. Gabhawalla
98213 23921 | [email protected]
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Hon. Treasurer: Mukesh G. Trivedi
98201 82456 | [email protected]
DECEMBER 2014
(Continued from page 1)
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
LECTURE MEETINGS
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. *
Speaker: Brahmakumari Shivani
Subject: Anger - The Enemy Within
Venue: Jai Hind College Auditorium, “A” Road, Churchgate,
Mumbai – 400 020
Day, 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)
To be consoled as to console;
To be understood as to understand;
* Fellowship over a cup of tea at 4.30 p.m.
** Fellowship over a cup of tea at 5.45 p.m.
To be loved as to love.
For it is in giving that we receive;
Yours truly,
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!
Raman H. Jokhakar
RIGHT TO INFORMATION CLINIC
Advisory Panel : Narayan K. Varma, Adv. A. K. Asher, Hema D. Sampat
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 difficulties
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.
ACCOUNTS & AUDIT CLINIC
Advisory Panel : Sanjeev R. Pandit, Himanshu V. Kishnadwala, Jayesh M. Gandhi
Clinic Co-ordinator : Ms. Bindu Mistry – 61377624
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.
CHARITABLE TRUST CLINIC
Advisory Panel : Ratanshaw J. Damanwala, Shariq M. Contractor, Gautam S. Nayak,
Anil J. Sathe, Atul H. Shah
Clinic Co-ordinator: Ms. Bindu Mistry – 61377624
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.
ALL THE THREE CLINICS WILL BE HELD IN THE LIBRARY OF THE SOCIETY
BCAS
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DECEMBER 2014
INTERNATIONAL TAXATION COMMITTEE
INFOTECH & 4I COMMITTEE
Chairman :
Co-Chairman :
Convenors :
Co-ordinators :
Chairman :
Ameet N. Patel
Co - Chairman : Nandita P. Parekh
Convenors :
Kinjal M. Shah & Pinky H. Shah
Gautam S. Nayak
Deepak R. Shah
Chetan M. Shah, Dhishat B. Mehta & Gaurang V. Gandhi
Anil D. Doshi, Mayur B. Desai & Kirit P. Dedhia
Seminar on Permanent
Establishment – Critical Aspects
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
Time
Venue
Friday, 30th January 2015
9.30 a.m. to 5.30 p.m.
(Registration and Snacks start at 9.00 a.m.)
Palladium Hotel, Lower Parel, Mumbai
Fees
Members
(Ordinary, Life
R 3,500 + R 432 (ST) = R 3,932
& Associate
Members)
Non –
Members
Topics
contribution of
Speakers
Recent Judicial Development on M. P. Lohia, Chartered Accountant
various types of PE (with special
emphasis on subsidiaries as a
PE and Secondment PE) and
Attribution of Profit to the PE
PE in the context of E-commerce Shefali Goradia, Chartered Accountant
(special emphasis on BEPS Report)
Exclusions from the PE - special Yogesh Thar, Chartered Accountant
reference to Liaison Office
Case studies on PE including
attribution of profits
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.
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:
R 4,000 + R 495 (ST) = R 4,495
(Fees include course material, breakfast, lunch and
` 50/- towards BCAS Foundation)
Action Replay By A Legend!
Sunil Lala, Advocate
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.
Enrolment fees are non-refundable.
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.
Enrolment form is printed on page 20.
Enrolment form is printed on page 20.
Enrolment is restricted to 125 participants. Limited seats are reserved for
non-members on first-come-first-served basis.
BCAS
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DECEMBER 2014
HUMAN RESOURCES COMMITTEE
Chairman :
Convenors :
Co-ordinator :
Mayur B. Nayak
Hemant P. Gandhi, Krishna kumar Jhunjhunwala &
Mihir C. Sheth
Krishna kumar Jhunjhunwala
13th Residential Leadership Camp/
Spiritual Retreat
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
Member
and Family
(Minimum
Two Persons)
` 7,120 + Rs 880 (ST) = ` 7,565 + ` 935 (ST) = ` 8,500
` 8,000
Single
Person
` 7,565 + ` 935 (ST) =
` 8,500
From 16th January 2015
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.
Enrolment form is printed on page 20.
ACCOUNTING & AUDITING COMMITTEE
Chairman :
Co-Chairman :
Convenors :
Harish N. Motiwalla
Rajesh R. Muni
Abhay R. Mehta, Mukesh K. Gilda & Nikhil D. Patel
5th Residential Study Course on
IFRS / Ind AS
The 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
` 8,010 + ` 990 (ST) =
` 9,000
Fee Includes Transportation (on car pool basis), Study Material,
Food, Stay, and contribution of ` 50/- towards BCAS Foundation.
BCAS
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Programme details are presented hereunder:
CORPORATE & SECURITIES LAWS COMMITTEE
Chairman :
Convenors :
Co-ordinators:
Kanu S. Chokshi
Jayant M. Thakur, Manish P. Sampat & Sameer L. Kapadia
Bhargava Vatsaraj , Kinjal M. Shah, Manish P. Sampat &
Shreyas P. Trivedi
Certificate Course on Corporate
Governance and Role of
Independent Directors with
special focus on Women Director
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
Day 1
Jointly with
SP Jain Institute of Management & Research
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.
Topic
•
•
•
•
•
•
•
•
•
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
•
•
•
•
•
Statutory Auditor Relationship
Internal Audit
Risk Management
Board Dynamics & Expectations from Independent Directors
Concluding Session
Day 2
Day 3
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
Enrolment form is printed on page 20.
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.
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DECEMBER 2014
BCAS
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DECEMBER 2014
BCAS
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DECEMBER 2014
13
DECEMBER 2014
BCAS
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RECENTLY RELEASED
PUBLICATIONS OF BCAS
FAQs on Accounting Standards
Taxation of Fees for Technical
Services – A Referencer
(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)
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/-
The CD contains the Paper and Presentation and Case
Studies of the Residential Refresher Course held from
27th to 29th June 2014.
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.
English - R 75/Gujarati - R 100/Postage : R 50/Price :
15
R 1,500 for 1 CD
for Members and
R 1,800 for 1 CD
for Non-Members
Postage : R 50
DECEMBER 2014
OTHER
PUBLICATIONS OF BCAS
RTI for ITI – Right to Information for
Income Tax Issues
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.
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 60
Non-Member : R 75
Postage : R 30
Member : R 100
Non-Member : R 120
Postage : R 50
Advance
Rulings Law And
A
Procedures
– Now with a
P
Supplement
and free CD
S
nt
e
lem
pp
Su
&
CD
Book
- This publication aims to give
B
a broad idea of the law, purpose,
and
procedure for seeking an
a
advance
ruling from Income Tax
a
perspective.
It also shares the first
p
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.
CD – Free CD contains a soft copy of the Publication and the
Supplement.
Member / Non-Member : R 125
Postage : R 50
BCAS
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
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16
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17
DECEMBER 2014
FROM RBI
A. P. (DIR Series) Circular No. 41 dated November 25, 2014
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: -
Contributed by : Gaurang V. Gandhi
The Reserve Bank of India has issued the following 8 circulars &
DIPP 1 Press Note
1.
Indian companies / their banks must not issue any direct or indirect
guarantee or create any contingent liability or offer 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.
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.
A. P. (DIR Series) Circular No. 38 dated November 20, 2014
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.
A. P. (DIR Series) Circular No. 39 dated November 21, 2014
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.
A. P. (DIR Series) Circular No. 40 dated November 21, 2014
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.
BCAS
A. P. (DIR Series) Circular No. 42 dated November 28, 2014
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 effect.
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 effect revised paragraph 6.2.11 of
‘Consolidated FDI Policy Circular 2014’ as under: -
18
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 (i) Development of serviced housing plots:
requirement;
Minimum land area of 10 hectares;
(ii) Construction-development projects: Minimum floor (ii) Construction-development projects: Minimum
area of 20,000 sq. meters;
built-up area of 50,000 sq. meters;
(iii) Combination project: Any of the above two conditions (iii) Combination project: Any of the above two
need to be complied with.
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;
Timing of
investment
The funds would have to be brought in within 6 months of The funds would have to be brought in within 6 months of
commencement of the project.
‘commencement of business of the Company’
For joint ventures with Indian partners: minimum
capitalization of USD 5 million.
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:
No such concept of 10 years from commencement of
(i) Period of 10 years from the commencement of the project; business earlier.
or (ii) The completion of the project.
Lock-in
The investor is permitted to exit from the investment at (i) 3 years The investor is permitted to exit from the investment
from the date of final instalment, subject to development of trunk at expiry of 3 years from the date of completion of
infrastructure, or (ii) on the completion of the project.
minimum capitalization.
‘Trunk infrastructure’ has not been defined, but is explained For investment in tranches: The investor is permitted to
to include roads, water supply, street lighting, drainage and exit from the investment at the later of (a) 3 years from
the date of receipt of each tranche/ instalment of FDI, or
sewerage.
(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 Prior exit of the investor only with the prior approval of
another non-resident investor would require prior FIPB approval. FIPB.
Sale of developed
plots only
Only developed plots are permitted to be sold. Developed plots Sale of undeveloped plots prohibited. Undeveloped plots
would mean plots where trunk infrastructure is developed, including would mean plots where roads, water supply, street
roads, water supply, street lighting, drainage and sewerage.
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.
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 No such exemption.
affordable housing are exempt from the minimum land area,
and minimum capitalization requirements.
Certificate from
architect
Investee company required to procure an architect empanelled No such requirement.
by any authority authorized to sanction building plan to certify
that the minimum floor area has been complied.
Completed
projects
100% FDI permitted in completed projects for operation and No such provision
management of townships, malls/ shopping complexes and
business centers.
Responsibility
for obtaining
all necessary
approvals
Investee Company.
19
At least 50% of the project must be developed within a period
of 5 years from date of obtaining all statutory clearances.
Investor / Investee company.
DECEMBER 2014
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20