CA Mohan Lal Kukreja Chairman - Agra Branch

CA Mohan Lal Kukreja

CA Gaurav Bansal

CA Sudeep K Jain

CA S.C. Jain

CA U.K. Garg

CA Nikhil Gupta

CA Sandeep Kapoor

CA Vinay Bansal

CA Pankaj Mishra

CA Vivek Goyal

CA Rohit Dua

AGRA BRANCH OF CIRC of The Institute of Chartered Accountants of India

News

Letter

Vol XVIII Issue: 6 For Private Circulation Only August 2018

Respected Seniors and Dear Members,

I feel privileged to interact with all of you through this E-Newsletter in this month of August. Last month of July

passed with various Events and activities related to CA week celebrations. That month involves various activities from

1st

July 2018 to 7th

July 2018 in CA week:-

Flag Hoisting: On 1st July 2018 on the occasion of 70th Foundation Day we had a Flag Hoisting at Branch in the

morning. This was the time when all the members and students present at the event remembered glorious past

of our Esteemed Institute along with feeling of betterment in the embarking future.

Blood Donation Camp: Same day i.e. on 1st July, we had a Blood Donation Camp which was organized at

Samarpan Blood Bank & Lokhitam Blood Bank for members as well as Students . This Blood Donation Camp was

inaugurated by Hon’ble MLA Shri Uday Bhan Singh& Shri Arinder Sikdar, Addl. Divisonal Manager, LIC, Agra. Total

173 units of blood were collected. This contribution reiterates the fact that Agra Branch is committed towards

social cause and shares the responsibility towards society.

Outdoor Games : On the same day i.e. on 1st July in the evening ,we organized a Outdoor Games (Football,

Khokho, Race & Tug of War) for Members at Khel Gaon , Dayal Bagh, Agra.This Event was well participated by

members and all had a pleasant brotherhood memories to cherish for life.

Two days Night Cricket Tournament: On 02nd

& 03rd

July we organized a Night Cricket Tournament for Members

at Radha Ballabh College,Dayal Bagh,Agra. The Cricket Tournament was well appreciated by all the members.This

year Female participants were also included as a compulsory member in each team. This was a small step of Agra

branch towards women empowerment.

Blood Test Camp: On 03rd July Ablood Test Camp (Collection of Sample for Health Checkup) was organized by

Agra branch, where more than 160 members and their family members participated for health test.

GST-IT Consultancy Camp: Same day on 03rd July Agra branch organized a camp with free consultancy on GST/IT

for general public in the form of Financial Literacy Camp- Income Tax & GST at ICAI Bhawan, Sanjay Place, Agra.

Badminton Tournament: On 04th

July we organized a Badminton Tournament for members at Eklavya Stadium,

Sadar, Agra. Singles and doubles tournaments were played by members with the feeling of competition mixed

with friendship which made it healthy competition.

Indoor Games: On 04th

July we organized Indoor Games (Chess, Carom & Sudoku Competition) for members at

Sanjay Place Branch. Members enjoyed these Activities/games very much and had fun during this event.

Health Camp with Doctors: On 05th

July A Health checkup camp which was organized by Agra branch, where

more than 150 members and their family members got their health checked by renowned doctors of the Agra

City. The Health checkup camp was inaugurated by Dr. Himanshu Yadav, Head of Eye Department, S N. Medical,

College, Agra. This program was very much appreciated by members at large.

Plantation Program: On 06th

July we organized a Plantation of Saplings program at Soor Vatika near Proposed

ICAI Bhawan, Avas Vikas Colony, Agra.

Honor Ceremony of 70+ Years CA Members: On 07th

July Evening Agra Branch organized Closing Ceremony of

70th Foundation Day and Honor Ceremony of 70+ Years CA Members along with Cultural Night at Akbar Garden,

Tajganj, Agra. This program was perfect combination of the feelings & gestures of Brotherhood, Respect for

seniors, and Pride for Profession along with fun and Enjoyment.

To sum up it was an eventful month with support& blessing of members of Agra branch of CIRC. I believe that our

profession is going through a perception change during this period and these events help our profession to establish

brand CA in society at large in a very suiting and emphatic way. Further I always welcome your words of praise for the

good work of the team Agra as well as constructive criticism for betterment. Agra Branch is open to new ideas and

programs. So all members are requested to give suggestions and contribute your thoughts.

With this feeling of continued Dedication & Togetherness, I sign off with this quote I believe in;-

“We cannot seek achievement for ourselves and forget about progress and prosperity for our community. Our

ambitions must be broad enough to include the aspirations and needs of others, for their sakes and for our own.”

With Best regards

CA. Mohan Lal Kukreja

Chairman-Agra Branch of CIRC of ICAI

Chief Editor

Members

Editors

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Index

1. Client orientation and satisfaction Pg…2

2. Tax Audit Report (Form 3CD) AY 2018-19 – Amendments and Detailed Analysis Pg…3

3. Glimpses of various workshops, study circles meets & social events conducted by

Agra branch of circ Pg…7

4. Central Council programs/ Certificate Courses Pg…8

5. Coverage - :All relevant information regarding the latest notifications/

developments in the fields of Accounting/ Auditing/ Information Technology and

other areas of interest to profession Pg…8

6. Agra Branch in News Pg…9

CLIENT ORIENTATION AND SATISFACTION

1. Listen to your customer

2. Reassure

3. Empathize

4. Obtain Feedback

5. Demonstrate

6. Give Options

7. Avoid Misrepresentation

8. Show Integrity

9. Avoid withholding bad news

10. Be Consistant

11. Keep Promises

12. Be Transparent

13. Offer Good Services

14. Communicate Clearity

15. Dealing with unhappy customer – Remain Calm, Don’t take it personally, Listen to customer,

Empathise, find a solution, provide quick feedback

16. Treat them with genuine respect – customer is important and you are a professional

17. Strive to provide consistent customer satisfaction

18. Supporting the client in achieving their organisation’s objectives

19. Deal with complaints expeditiously

20. Keep your customer updated

21. Under promise and over deliver

22. Offer value added and customized solutions

CA Rajeev Goyal

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Tax Audit Report (Form 3CD) AY 2018-19 – Amendments and Detailed Analysis

In order to get various amendments made to Income-tax Act, 1961 and other laws (indirect

taxes) within the format of tax audit report (TAR), the Central Board of Direct Taxes

(CBDT) issued notification No. 33/2018 on 20 July 2018 amending the report format of

tax audit. These amendments to TAR will come in force from 20 August 2018, which

implies that the tax audits filed with the Income-tax on or after 20 August 2018 will have to

be in the amended TAR. The point wise changes have been discussed in the ensuing

paragraphs:

A. Serial no. 4 of Form 3CD – Registration details of indirect taxes

Details regarding the registration number of Goods & Service Tax (GST) has been added

B. Serial no. 19 and 24 of Form 3CD – Deduction for investment in new plant or machinery

Disclosure with regard to section 32AD has been added in these clauses to Form 3CD. This section allows deduction

in respect of investment made in new plant or machinery in notified backward areas of Andhra Pradesh, Bihar,

Telangana and West Bengal. This clause was inserted by the Finance Act, 2015 w.e.f 1-04-2016

C. Serial no. 26 – Section 43B Certain deductions on actual payment basis

Clause f of section 43B has been added for reporting under this clause which pertains to allowing of liability

outstanding towards Indian Railways for use of their assets, on actual payment basis

D. Serial no 29A – New clause introduced for section 56(2)(ix) of the Act

This section was introduced in Finance Act 2014 primarily to tax the advance amounts initially received against the

capital asset in the course of negotiation and later forfeited and no transfer effected. Reporting under this section has

been got under the TAR

E. Serial no. 29B – New clause introduced for section 56(2)(x) of the Act

This section of the Act widened the scope of taxability of any sum of money, immovable property or any other

property received by one person from another person for no consideration or inadequate consideration. In case of

applicability of this section certain details viz. nature of income and amount thereof needs to be given

F. Serial no. 30A – New clause introduced for section 92CE of the Act (‘Secondary adjustment’)

Section 92CE was introduced by the Finance Act, 2017 which brought in the concept of secondary adjustment in the

Act. According to this section, where there has been any primary transfer pricing adjustments made in the case of an

CA Jigyasa Bansal

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assessee, under various circumstances (viz. suo motu by the assessee, by the assessing officer, as per safe harbour rules, etc.), the assessee is

required to make a secondary adjustment provided:

Such primary adjustment is more than 1 crore; and

The adjustment pertains to assessment year on or after 1 April 2016

This provision also provides that where such amount is not recovered, then such balance should be treated as an advance given to the AE and

recovered along with interest. Details required to be reported under this clause are as follows:

Reference of relevant section

Amount of primary adjustment

Where repatriation is required to be made in India as per section 92CE and if the same is made within prescribed time

Computation of interest income on such excess money not repatriated to India

G. Serial no. 30B – New clause introduced for section 94B of the Act (‘Thin Capitalisation’)

Section 94B was introduced in Finance Act 2017 to limit the interest deduction in certain cases and to bring in the concept of ‘Thin

Capitalisation’.

‘Thin Capitalisation’ is a situation where an entity is financed at a relatively high level of debt compared to equity. Some multinational

companies engage in aggressive tax planning techniques such as placing higher levels of third party debt in high tax countries, using

intragroup loans to generate interest deductions in excess of their actual third party interest expense, using third party or intragroup financing

to fund the generation of tax exempt income.

In order to curb such structuring by the multinational group Companies having their presence through subsidiaries/ associate companies or

permanent establishments in India, the Finance Act 2017 introduced a new section 94B under the Income-tax Act, 1961 (‘the Act’), in line

with the recommendations of OECD BEPS Action Plan 4, from the FY 2017-18, to provide that interest expenses claimed by an entity to its

associated enterprises shall be restricted to:

30% of its earnings before interest, taxes, depreciation and amortization (EBITDA) (or)

Interest paid or payable to associated enterprise

whichever is less.

Relaxations provided by this section

A threshold limit of interest expenditure of INR 1 crore (INR 10 million) is provided to carve-out entities which have a low level of

interest expense on the borrowings from their non-resident associated enterprises.

Further, to reduce the impact of earnings volatility on the ability of an entity to deduct interest expense, the interest expense which is

disallowed can be carried forward up to 8 immediately succeeding tax years.

Moreover, taxpayers engaged in the business of banking or insurance are excluded from the scope of this provision keeping in view

their specific sector-related features.

Where this clause is applicable to the assessee, following details are required to be reported in TAR:

Amount of interest expenditure

EBITDA during PY

Amount of interest expense over 30% of EBITDA

Interest expenditure brought forward

Interest expenditure carried forward

H. Serial no. 30C – New clause introduced for section 96 of the Act (‘GAAR’)

Section 96 (impermissible avoidance agreement) falls under the Chapter X-A (General Anti Avoidance Rule). This section was inserted to

curb such arrangements where an agreement creates such rights between the parties to the agreement, by misuse of the provisions of the Act,

Agra Branch of CIRC of ICAI News Letter August 2018

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which would not have been created in normal course between parties dealing at arm’s length. Under this clause, where the tax auditor is of the

view that a particular arrangement falls under this provisions of the act then they are supposed to state the nature of such arrangement and

the tax benefit created in the previous year to all parties in aggregate.

I. Serial no. 31 – Clause (ba), (bb), (bc) and (bd) introduced after clause (b) to serial no. 31 of TAR pertaining to section 269ST of the

Act

Pursuant to introduction of section 269ST by Finance Act 2017, the TAR has been amended to include disclosure under this provision

whereby there is a restriction on receiving by any person of an amount exceeding INR two lakh in aggregate from a person in a day; or in

respect of a single transaction; or in respect of one event otherwise than by an account payee cheque or account payee bank draft or use of

electronic clearing system. Where this section of the act is applicable only to the recipient, the disclosure requirements even mandate the

payer to make the relevant disclosures along with the name, address and PAN of the party involved.

J. Amendments have been made to the language of clause 31 (c), (d) and (e) of the TAR with regard to the provision of section 269T of the

Act

K. Serial no. 34 – Clause (b) Details of eTDS returns

Earlier this provision required only reporting of the fact as to whether the eTDS statement submitted contains all details/ transactions (Yes/

No). Now with the amendment to this clause, the TAR requires reporting of such details/ transactions which have not been reported in the

eTDS return. This will be a task for the assessee with huge volumes of transactions which will require reporting of all such entries. It would

be ideal that the assessee reports all transactions in the eTDS returns and in case of differences they should maintain proper reconciliations.

L. Serial no. 36A – New clause for details regarding deemed dividend u/s 2(22)(e) of the Act

Under the provisions of this section where any company, in which public are not substantially interested, makes any payment by way of loan

or advance, to any person who holds not less than 10 percent voting power or to any other person in which such shareholder has substantial

interest, then such payment to the extent of accumulated profits, will be treated as deemed dividend.

M. Serial no. 42 – New clause for details regards Form no. 61, 61A and 61B

This requires reporting of details of submission and due date of the respective forms with the income-tax. It also requires the auditor to ensure

if all the required details have been submitted and if not, then the unreported details/ transactions are required to be reported in Form 3CD.

The details required to be submitted in respective forms have been given hereunder:

Form 61 – this form requires details of all Form 60 to be submitted. Where transactions specified under Rule 114B of the Income-tax Rules,

1962 (‘the Rules’) have been undertaken by the assessee and document with that regard has been collected by the assessee without the PAN

of the person giving the document, then the assessee is required to collect declaration in Form 60.

Form 61A – Statement of specified financial transactions as given in Rule 114E of the Rules which mandates reporting of certain financial

transactions undertaken during a particular financial year, before due date (31 May).

Form 61B – Statement of reportable accounts in accordance with FATCA and CRS for a calendar year.

N. Serial no. 43 – New clause with regard to Country by Country Reporting (CbCR) u/s 286 of the Act

Section 286 r.w.r 10DB specifies the Companies liable to comply with CbCR requirements. Entities to whom CbCR is applicable need to

comply with reporting requirements of Form 3CEAC and 3CEAD, wherever applicable. The details of parent entity, alternate reporting entity

and date of furnishing of these reports are to be mentioned under this clause of TAR.

O. Serial no. 44 – New clause of expenditure with respect to registered/ unregistered entities under GST

This clause requires breakdown of entire expenditure debited to Profit & Loss a/c into the following heads:

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Relating to goods or services exempt under GST

Relating to entities falling under composition scheme

Relating to other registered entities

Relating to entities not registered under GST

Conclusion

These additional disclosure requirements under TAR indicate that the CBDT has sifted majority onus relating to verification of compliances

and income computation from assessing officers and GST auditors to tax auditors and have widened the scope to include international tax and

other compliances such as CbCR, FATCA & CRS reporting, etc. Considering this, the reliability of tax officers on the tax audit reports have

increased thereby increasing the documentation and verification requirements by the auditors.

(Note: However Serial No.30C & 44 has shall be kept in abeyance till 31st March 2019 vide Circular no.6/2018 Dated: 17

th August

2018.)

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GLIMPSES OF VARIOUS WORKSHOPS, STUDY CIRCLES MEETS &

SOCIAL EVENTS CONDUCTED BY AGRA BRANCH OF CIRC

FLAG HOISTING ON

OCCASION OF 70TH CA FOUNDATION DAY

01.07.18, At ICAI Bhawan, Sanjay Place, Agra

BLOOD DONATION CAMP

01.07.18 SAMARPAN BLOOD BANK,

Delhi Gate Agra

OUTDOOR GAMES

(Race, Football, Kho-kho, Tug of War)

01.07.18, At Khel Gaon, Agra

HEALTH CHECKUP CAMP

03.07.18, At ICAI Bhawan, Sanjay Place, Agra

FINANCIAL LITERACY CAMP

At ICAI Bhawan, Sanjay Place, Agra

NIGHT CRICKET TOURNAMENT

02.07.18 & 03.07.18, At Radha Ballbh College,

Dayal Bagh, Agra

GLIMPSES OF VARIOUS WORKSHOPS, STUDY CIRCLES MEETS &

SOCIAL EVENTS CONDUCTED BY AGRA BRANCH OF CIRC

CULTURAL NIGHT

07.07.18, Akbar Garden, Tajganj, Agra

HONOR CEREMONY OF 70+ YEARS CA MEMBERS

07.07.18 Akbar Garden, Tajganj, Agra PLANTATION OF SAPLINGS

06.07.18, At Soor Vatika, Avas Vikas Colony, Agra

BADMINTON TOURNAMENT

04.07.18, Eklavya Stadium, Sadar Bazar, Agra Indoor Games (Chess, Carrom & Sudoku)

04.07.18, ICAI Bhawan, Sanjay Place, Agra

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ANNUAL GENERAL MEETING

30.07.18, ICAI Bhawan, Sanjay Place, Agra

Agra Branch of CIRC of ICAI News Letter August 2018

News Letter August 2018

DIGITAL ACCOUNTING & ASSURANCE BOARD of ICAI 3 days Hands on Experience Training on

ADVANCED EXCEL & DATA DASHBOARD on 24,25 & 26 August 2018 from 10 AM to 5 PM

at DA Lab, ICAI Bhawan, Chennai Course Duration 3 Days and Fees is Rs. 5500/- (+18% GST) per

participant.

TECHNOLOGY SUMMIT Empowering CAs to meet Challenges of Digital Transformation August

25, 2018 (Saturday) Venue: Hotel Grand Gayathri, Station Road, Warangal.

Committee for Members in Industry & Business (CMI &B) of The Institute of Chartered Accountants of India

Organizing Full Day Seminar on "Fintech and Emerging Technologies” On Saturday, 25th

August 2018 at

ICAI Tower, Bandra Kurla Complex, Mumbai Hosted by: WIRC of ICAI.

Training Programme on “Innovative Ways of Finance” (Growing Role of Chartered Accountants in

Infrastructure Finance) Organized by Committee on Public Finance & Government Accounting of ICAI.

CENTRAL COUNCIL PROGRAMS / CERTIFICATE COURSES

ICAI Awards for Excellence in Financial Reporting Invitation to participate in the Competition 2017-18.

Last Date for Receipt of Entries: 30th September, 2018.

ICAI enters into an arrangement with Wolters Kluwer (India) Private Limited (WKIPL) to provide the

contents of its Website (Direct Taxes Online - DTOL only) at Rs. 6000/- (plus taxes) to the members of

ICAI

ICAI enters into an arrangement with Taxmann Allied Services Private Limited to provide the contents of

its Website (Income tax module only) at subsidised price to the members of ICAI.

Extension of the last date for submission of examination application forms in respect of CA exams to be

held in November 2018, for candidates in Kerala only - (23-08-2018)

LATEST NOTIFICATIONS/ DEVELOPMENTS IN THE FIELDS OF ACCOUNTING / AUDITING / INFORMATION TECHNOLOGY AND OTHER AREAS OF INTEREST TO

PROFESSION

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AGRA BRANCH IN NEWS

AMAR UJALA – 01.07.18

DLA – 01.07.18

AMAR UJALA – 04.07.18

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Agra Branch of CIRC of ICAI News Letter August 2018

News Letter August 2018

AMAR UJALA – 05.07.18

AGRA BRANCH IN NEWS

AMAR UJALA – 06.07.18

AMAR UJALA – 07.07.18

DLA – 05.07.18

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News Letter August 2018