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The Institute of Chartered Accountants of India(Setup by an Act of Parliament)
Volume - X November 2012 l
Baroda Branch of Western India Regional Council ofThe Institute of Chartered Accountants of India
Determination is the wake-up call to the human will
Determination is the wake-up call to the human will
DETERMINATION DETERMINATION NewsLetter` 20/- Copy
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIAICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi - 110002. Tel. : +91 (11) 39893989 E-mail : [email protected] Web : www.icai.org
WESTERN INDIA REGIONAL COUNCILICAI Bhawan, 27, Cuffe Parade, Post Box No. 6081, Colaba, Mumbai - 400 005. Tel. : +91 (22) 39893989 Email : [email protected] Web : www.wirc-icai.org
BARODA BRANCH OF WIRC OF ICAI “ICAI Bhawan”, Kalali-Tandalja Road, Atladra, Vadodara - 390 012. Telefax : +91 (265) 2681115 / 2680593 E-mail: [email protected] Web : www.baroda-icai.org
Fro
m t
he
Ch
air
man
Dear Professional Colleagues,
The spirit of Diwali is here to illuminate the environment with its brilliance and dazzle us all with its joy. Each of the four days in the festival of Diwali is separated by a different tradition, but what remains true and constant is the celebration of life, its enjoyment and goodness bringing friends and families together. The festival instills charity in the hearts of people and reminding us of the values and
traditions of a rich heritage that India stands for.
At Baroda branch the month gone by had two unique programs. We conducted a seminar for Small & Medium Practitioners where in the speakers gave glimpses of their real life experiences and kept the seminar interesting as well as inspiring.
Another program during the month, titled “Financial Prescription for Doctors” was exclusively designed for the members of medical profession to create financial awareness among them. This program was a first of its kind conducted by Baroda Branch and was well attended by 65+ Doctors.
The month of October also witnessed “All Gujarat CFO Meet” and the powerful panel discussions of the program were well appreciated by participants. We also had the 1st batch of Certificate Course for Concurrent Auditors, and the attendance of participants from East, west and south including Guwahati, Karnataka, Patan and Surat amongst other places, defined the popularity index of Baroda branch’s unique programs.
In the forthcoming months, we will be conducting the 10th batch of ISA course. I invite you all to Anand where a 2 Days-All Gujarat Tax and Audit Conclave is being jointly organized by Baroda and Anand Branches of WIRC of ICAI.
Friends, The 22nd” Refresher Residential Course is to take place at Matheran on 6th 7th & 8th of Jan, 2013. A pollution free destination devoid of vehicles of any kind, the little hill station has been declared an eco-sensitive region by the Union Environment Ministry and can be called a Health Sanatorium in itself. Members are requested to register well in advance to avoid last minutes disappointments due to limited capacity.
I would also like to convey my best wishes to all IPCC / Final Students appearing for November-2012 examinations. We can motivate our hardworking students and boost their confidence by asking them to remember what Theodore Roosevelt said, “Believe you can, and you are half way there.”
I end my message with a prayer for DEEPAVALI, “May we attain full inner illumination! May the supreme light of lights enlighten our understanding! May we all attain the inexhaustible spiritual wealth of the Self! May we all prosper gloriously on the material as well as spiritual planes!”
With Warm Regards,
CA Pradeep Agrawal
MANAGING COMMITTEE
CA. Rajesh Shah Ex-officio 98250 41142
CA. Yash Bhatt 99243 88339Treasurer
CA. Pradeep Agrawal
Chairman 93272 4347998985 60967
CA. Ashish Parikh 98252 31545Vice Chairman
CA. Nayan Kothari Secretary 98244 33445
CA. M J Parsiya 98251 10620
Past Chairman
Immediate
CA. Viral Shah 98243 62211Member
CA. Arpan Dodia 98983 83530Member
CA. Hitesh Shah Member 99247 94693
CA. Pradeep Agrawal CA. Hitesh Shah
CA. Vishal Doshi CA. Ashok Thakkar
CA. Abhishek Nagori CA. Narendra Hindocha
CA. Bimal Bhatt CA. Neena Patel
CA. Nidhi Bhatt CA. Rachana Parikh
EDITORIAL TEAM
Index
“The Council of the Institute set up two Committees during the year. One Professional Development Committee and the other Taxation Committee. The First mentioned committee inter-alia is engaged in studying whether the technique of auditing as is generally applied by Chartered Accountants in different situations and circumstances, is effective and could be depended upon to yield results, so as to properly discharge the responsibility that there is on them imposed by law, but more so by public opinion. The Taxation Committee therefore, has been charged with the responsibility of examining various laws and rules in this regard to direct taxation that are from time to time enacted by the Government; making representation their
amendment, if considered necessary and preparing, notes to explain to members implications of some of the provisions”.
Late CA. S. N. Desai (1961-62) (Spoken at the 13th Annual Meeting of the Council of ICAI held on 10th and 11th Sep 1962.)
Forthcoming Events ............................................ 03
Income Tax Updates ........................................... 04
Let's Connect with ICAI ...................................... 05
Recent Amendments to the Companies Bill, 2011 . 06
Smart Phones and Identity Theft ...................... 07
ICAI Updates ....................................................... 09
Appeal for the Financial Assistance ................... 09
Transforming Capitalism ..................................... 10
Important Due Dates .......................................... 10
Photo Flash ......................................................... 11
BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NewsLetter
02 NOV 2012VOLUME - X
22nd Residential Refresher Course (RRC)@ MATHERAN
ON 6-7-8 JANUARY, 2013 (Sunday to Tuesday)
The Byke - A Hotel Retreat, Matheran
TENTATIVE ITINERARY
REGISTER YOUR NAME WITH MR. KETAN KHARVA ON 2680593, 2681115, MOBILE: 9825718576
05.01.2013 Saturday Departure from Baroda by Vadodara Express (12928) at 22.30 hrs by III Tier AC
06.01.2013 Sunday Arrival at Borivali Railway Station at 03.44 hrs and depart by Bus for The Byke – A Hotel Retreat, Matheran (80 kms from station)
06.01.2013 Sunday Check in to the The Byke – A Hotel Retreat at 09:00 hrs
06.01.2013 Sunday Inauguration and First Session (11:00 hrs to 13:30 hrs)
?11:00 to 12:00 hrs. - Key Note Address – Eminent Personality?12.00 hrs. to 12.15 hrs. – Tea Break ?12.30 hrs. to 13.30 hrs. - Session -1 – Eminent Personality
07.01.2013 Monday Group Discussion (9:00 hrs to 13:30 hrs)
?09.00 hrs to 09.45 hrs - Group Discussion – Income Tax?09.45 hrs to 10.30 hrs - Group Discussion – Service Tax?10.30 hrs to 11.00 hrs - Break?11.00 hrs to 12.45 hrs -Income Tax GD Analysis – CA. Chandrashekhar Chitale, Pune ?12.45 hrs to 13.30 hrs –Service Tax GD Analysis – CA Sagar Shah , Pune
08.01.2013 Tuesday Second Session - Enhancing Personality - (09:00 hrs to 13:30)
- Principals of Success - By CA. Nandan Sanwal, Management Guru, Mumbai- 36 Hours a Day- Eminent Faculty
08.01.2013 Tuesday Departure from The Byke- A Hotel Retreat by Bus up to Mumbai Central at 15.00 hrs
08.01.2013 Tuesday Reach Mumbai Central by 20.00 hrs
08.01.2013 Tuesday Departure for Baroda by Vadodara Express (12927) at 23.40 hrs
09.01.2013 Wednesday Arrival at Baroda at 5:55 hrs
Baroda Branch appreciates overwhelming response of members for Residential Refresher Course every year. Baroda Branch has organized 22nd RRC at The Byke – A Hotel Retreat at Matheran, Maharashtra a beautiful scenic location.
Fees : Rs. 8,900/-per member on double sharing basis on or before 15.12.2012, Rs. 9,500/- thereafter & Rs.10,900/-per member on single sharing basis on or before 15.12.2012, Rs. 11,500/- thereafter (Above fees is inclusive of to and fro from Baroda to Matheran travel by Train in III Tier AC. ) Cheques / DDs payable at Baroda are to be drawn on “Baroda Branch of WIRC of ICAI”
Baroda Branch requests its members to register their name in advance to avoid last minute disappointment. Your timely registration would help us to book railway tickets well in advance.
CPEHRS.12
BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NewsLetter
03 NOV 2012VOLUME - X
ForthcomingEventsBRANCH EVENTS
5th Charitable Clinic
Day & Date : Friday, 23.11.2012 Time : 03.00 pm to 05.00 pmVenue : United Way of Baroda, 9th Floor, Sidcup
Tower, Race Course, Baroda
10th Batch of ISA Course
Day & Date : Saturday, 24.11.2012 & onwards (six weekends)
Time : 09.00 am to 05.00 pmFees : `. 17,500/- (Minimum 20 Participants).
Full Day National Workshop on ITOrganised by Comm. of Information Technology, ICAI
Day & Date : Tuesday, 18.12.2012 Time : 01.30 pm to 19.30 pmSubjects SpeakerWant to Safeguard Gadgets Mr. Sachin Dedia, Certifiedfrom Hacking? Ethical Hacker, Mumbai
Effective utilization- Information CA. Himanshu Shah, BarodaTechnology in Daily Life
Fees : `. 900/- upto 14.12.2012, therafter `. 1100/-
Venue : ICAI Bhawan, Baroda
In an era of increasing usage of ‘plastic
money’ & Inernet - with an objective of better
services to members & students, Baroda
Branch is having facilities of Registrations for
seminar & conference by paying through
credit/debit card at ICAI Bhawan or visit
www.baroda-icai.org for online payment.
PAYMENT OPTIONS FOR PROGRAM REGISTRATION
e-paymentD r o p B o x a t 2 - B , Ramkrishna Chambers, BPC Road, Baroda. Kindly mention your name, membership number and program for which registration is sought, on back side of the Cheque
Join us on group Facebook Baroda Branch of WIRC of ICAIExchange views and news. Be updated about forthcoming events of Baroda Branch
Members are requested to register themselves in advance by
using above options and avoid spot registration to help us to
serve you better.
Two Days All Gujarat Tax & Audit ConclaveJointly
Day & Date : Friday & Saturday, 2 & 3.11.2012Time : 09.00 am to 05.00 pmSubjects Speakers
Inaugural Session CA. N. P. Sarda, Past President, ICAI
Accounting Standards CA. N. P. Sarda, Past(with Special emphasis on SME's) President, ICAI
Qualification & Disclosures in CA. Arpit Patel, Audit Report under Companies Act Ahmedabad
Time Management for Dr. Hemant Antani, AnandProfessionals
NRI Taxation ( Income Tax) CA. Mahesh Sarda,CCM, ICAI
Transfer Pricing CA. Milin Mehta, Baroda(with specific reference to Section 92BA)
Accounting, Audit & Taxation CA. Virendra Parwal, Jaipur(excl. Income Tax of Real Estate)
Service Tax - Reverse Charge CA. Bimal Jain, New Delhi MechanismPenalties under the IT Act CA. Sunil Talati, Past
President, ICAIValedictory Session CA. Sunil Talati, Past
President, ICAI
Fees : For Members `. 2350/-upto 25.10.2012, then after `.2500/-For Non-members `. 2500/-upto 25.10.2012, then after `.2750/-
Venue : Madhubhan Resorts, Anand.
Organized by Baroda & Anand Branches of WIRC of ICAI
CPEHRS.12
6th Charitable Clinic
Day & Date : Friday, 28.12.2012 Time : 03.00 pm to 05.00 pmFees : Nil
Venue : United Way of Baroda, 9th Floor, Sidcup Tower, Race Course, Baroda
CPEHRS.6
Shri Giani Zial Singh President of India, 1983
“In so far as the Accountants being h igh ethica l standards and professional competence in the preparation of accounts and auditors' report , he undertakes a social responsibility, which is of relevance to all the citizens of his society. In a rapidly changing world, Accountants as a professional group will have to evolve new concepts and procedures to meet the varied demands made by society on its skills. One of the areas where attention could perhaps be gainfully focused is the evaluation of the cost or benefit to society of different enterprises. In other words, the field of "Social Audit". The Accountant today is not merely a recorder of financial transaction on an Auditor, but also a key member of the management team of any organization. In a developing economy, it is the Accountants who are responsible for ensuring that scarce resources are utlized in the most economic fashion and that different manufacturing and other processes are run to the best possible advantage of the organization as well as the society.
(10th CAPA Conference at Siri Fort Auditorium in New Delhi on 21st November, 1983
BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NewsLetter
04 NOV 2012VOLUME - X
Income Tax Updates
deduction of tax at source under section 195. I have reservations about such a view and hence the issue I am contemplating is what would happen in cases in which tax is deducted by payers after considering the benefit under DTAA during the period from 1-4-12 until notification of the new rule on 17-9-2012, apparently without obtaining such certificate.
Another issue is what could be the period for which the certificate is applicable. Can Government of a country i ssue a cert i f icate applicable for indefinite period until cancelled in case of corporates registered in their countries who will always be resident ? Also there may be individuals who are resident of different countries in different years and their residential status for a particular year would be known only at the yearend. I w o n d e r o n w h a t b a s i s a G o v e r n m e n t w o u l d i s s u e certificates to individuals at the beginning of a year for the purpose of tax to be deducted during the year.
2. Tax not deducted at source but paid directly by the payee
According to the first proviso to section 201(1) inserted with effect from 1-7-2012, a person who has failed to deduct tax at source in case of a resident, shall not be deemed to be in default if he f u r n i s h e s c e r t i f i c a t e f ro m C h a r t e r e d A c c o u n t a n t i n prescribed form, to the effect that the payee has furnished his return, included the concerned amount in his income and paid tax due as per the return.
Now form 26A is prescribed by Rule 31AC. This is the form is like a covering letter for furnishing certificate of Chartered Accountant form of which is given in the Annexure thereto. (348 ITR (Statutes) 101)
Compiled by CA. Narendra Hindocha
1. Certificate relating to Residence for claiming benefit under DTAA
Finance Act, 2012 inserted subsection (4) in section 90, with effect from 1-4-2013 to the effect that a non resident shall not be entitled to claim relief under DTAA unless certificate containing prescribed particulars relating to his being resident of a particular country is obtained by him from Government of his country.
Such particulars are prescribed by Rule 21AB which is notified on 17-9-2012. While Form of Certificate is not prescribed, its contents are prescribed. Accordingly, the certificate is to contain simple particulars including Name of the assessee, Status, Nationality (in case of individual), Country of incorporation or registration (in case of others), Assessee's tax identification number, Residential status for the purposes of tax, Period for which the certificate is applicable and Address of the applicant for the period for which the certificate is applicable. (348 ITR (Statutes) 108)
The Rule further provides that in case a Resident of India requires similar certificate to be produced in a foreign country, he can make application in Form 10FA to obtain a certificate in Form 10FB.
As per Memorandum explaining provisions of the Finance Bill, the new provisions would apply with effect from Assessment Year 2013-14, relevant previous year starting from 1-4-12.
A view is expressed in 348 ITR (Journal) 1, to the effect that the requirement will apply at the stage of filing of return by the non-resident and not at the stage of
3. Tax management of a different kind
I hate to write this but also believe that reporter should do the job of reporting. Order of the Supreme Court in case of Citibank N.A. gives hint of a practice of assessees( not necessarily the case to which the order relates) and the Officers in the Tax Department, of colluding and delaying appeal/petition by the Tax Department, to High Court and Supreme Court. As a result, the assessee gets easy escape from possible tax liability and Officers get what you know. Courts are in unenviable position. If they condone the delay, the prescribed time limit loses its sanctity. If they do not , they promote the fraudulent collusion. The Supreme Court after observing the delay in this case and many others, directed forwarding of its order to the Finance Minister and the Law Minister for doing the needful.
4. Reassessments
According to the principles laid down by the Supreme Court based on interpretation of law as it is , notice for reassessment is not valid merely on the ground that an Audit O b j e c t i o n a l l e g e s u n d e r assessment. The Assessing Officer has to believe that there has been under assessment. Also change in opinion is not a valid foundation for issue of such notice. These principles, according to my experience and opinion, are observed more in breach in case of s i g n i f i c a n t n o t i c e s f o r reassessments. For not following these principles, the Officers have to find an excuse. In case of the latter principle, the excuse is that it is not a case of change in opinion as no opinion was held at the time of original assessment as the matter w a s n o t c o n s i d e r e d . T h e Commissioner (Appeals) will take a stand that the assessment order is
BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NewsLetter
05 NOV 2012VOLUME - X
silent regarding that matter and hence this is not a change in opinion but a case in which matter was not considered at all. In case of Rabo India Finance Limited V. DCIT (346 ITR 528), the decision is that when a specific information relating to some material was called for, it can be assumed that the information and the material were considered at the time of assessment.
5. Expenditure on ERP
In case of CIT V. Raychem RPG Ltd. (346 ITR 138), the Bombay High Court held that expenditure of Rs.20.60 lacs on ERP package is revenue expenditure.
“Consciously or unconsciously, everyone of us does render some service or another. If we cultivate the h a b i t o f d o i n g t h i s s e r v i c e deliberately, our desire for service will steadily grow stronger, and it will make not only for our own happiness, but that of the world at large.”
- Mahatma Gandhi
This month, Let’s connect with ICAI brings to you, another opportunity for members to serve the ICAI. The greatest good you can do for profession is to share your knowledge. Here is another opportunity to support the profession by creating knowledge through research.
The Committee for Cooperatives & NPO Sectors, a non-standing committee of Institute of Chartered Accountants of India, has been constituted in the year of 2011 with the objectives which, inter alia, includes to develop necessary technical guides and publications, to develop knowledge portal, to provide
I n v i t a t i o n b y C o m m i t t e e f o r Cooperatives & NPO Sector for Research Proposals
Let's Connectwith ICAI
Compiled by CA. Neena Patel
technical and governance inputs through resource material, publications to management personnel and m e m b e r s o f g o v e r n a n c e o f Cooperatives & NPO sectors and to provide uniform accounting framework for cooperatives & NPO sectors.
As one of the key methods to achieve the above mentioned objectives, the Committee invites research proposals from interested individuals. The committee funds the cost of approved research proposals as per ICAI norms after evaluating the scope of research study. Mentioned below are the guidelines and rules for the submission o f r e s e a r c h p r o p o s a l s a n d implementation of the approved research proposal fund by the committee.
1. The applicant must be member of t h e I n s t i t u t e o f C h a r t e r e d Accountants of India with a research aptitude having post qualification experience of working with or engagement with cooperative & NPO sectors. Or
2. The applicant must be holding a p o s t - g ra d u a t e d e g re e f ro m recognized university and must have research and/or teaching experience on related topics. Or
3. Faculty of a recognized university or an institute of repute. Or
4. A research scholar who is pursuing a Ph.D or other curriculum of recognized university / institute of high repute.
However, application from a person having lesser experience than stated above may also be considered on the basis of merit.
Projects will be supported to the extent that they are strategic in nature, have a strong research dimension and contribute the strengthening of cooperatives & NPO sectors. The
Eligibility Criteria:
Eligibility of Project:
Committee has identified certain research projects, which are given below:
1. Legal reform for cooperatives & NPO sectors.
2. Harmonization of accounting practices for cooperatives & NPO sectors.
3. Good governance in cooperatives & NPO sectors.
4. F i n a n c i a l m a n a g e m e n t i n cooperatives & NPO sectors.
5. Social Audit.
6. Accounting control system in cooperatives & NPO sectors.
7. Accounting frauds in cooperatives & NPO sectors.
8. Taxation of cooperatives & NPO sectors.
9. Global financial reporting practices in relation to cooperatives & NPO sectors.
10.Internal audit practices of global cooperative institutions / NPOs viz-a-viz their Indian counterparts.
Above list, however is not an exhaustive list of research projects. Applicant may apply for other projects also provided t h a t t h e s u b j e c t s e l e c t e d i s contemporary and relevant in current environment of cooperatives & NPO sectors.
The duration of research project should not exceed 2 months from the date proposal is approved by the committee unless longer period is otherwise justified.
1. Research Paper / Publication
2. Dissemination of good governance and best practices to cooperatives & NPO sectors.
3. Capacity building of the members of the profession and targeted beneficiaries as may be agreed in the project.
Duration:
Expected Output
BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NewsLetter
06 NOV 2012VOLUME - X
Copyright and Patent:
Monitoring:
How to Apply:
Copyright, patent of intellectual property right would vest with the Committee for Cooperatives & NPO Sectors, ICAI for any work done by applicant. The researcher, however, would get due acknowledgement for his work.
Progress of the project would be subject to continuous monitoring of the committee. Committee may, at any point of time during the project, request to the applicant to provide details of work don / remaining, the draft of the project / publication etc. In order to evaluate the implementation and progress. On finding of, project not being carried out in accordance with the terms / conditions of research proposal or if work done by researcher is unsatisfactory, the committee may consider the withdrawal of project from researcher and if such being the case then the work already done would become the property of Committee for Cooperatives & NPO Sectors, ICAI.
Application should be submitted to: The Secretary, Committee for Cooperatives & NPO Sectors, Third Floor, Annexed Building, CAI Bhawan, Indraprastha Marg, New Delhi – 110 002, Phone: +91 11 30110452, Email: [email protected](Source: www.icai.org; The Chartered Accountant- ICAI Journal)
Compiled by Working Group on Corporate Law
Recent Amendments to the
Companies Bill, 2011
The Union Cabinet recently approved
some crucial amendments to the
Companies Bill, 2011. The Companies
Bill, 2011 was under the consideration
of the Par l iamentary Standing
Committee on F inance , wh ich
submitted its report to the Honourable
Speaker, Lok Sabha on 26th June, 2012.
In order to incorporate the the
recommendations of the Standing
Committee, it was decided to make
certain modifications in the Companies
Bill, 2011. These are the latest in a long
series of revision observed in the
Companies Bi l l . One may wel l
remember that there was originally a
Companies Bill, 2009, which was
withdrawn on introduction of the
Companies Bill, 2011. The Companies
Bill, 2011 is now proposed to be
presented before the Parliament in its
winter session. It would be worthwhile
to take a note of the major amendments
approved by the Cabinet.
1. I t w i l l b e m a n d ato r y fo r
Companies to spend 2% of
average net prof i t of the
preced ing three years on
corporate social responsibility.
Failing this, Companies will have
t o e x p l a i n t h e i r s t a n c e .
(Amendment to Clause 135)
2. T h e w o r d s “ m a k e e v e r y
endeavour to” have been omitted
from Clause 135(5). This clause
has also been amended to provide
that Companies shal l g ive
preference to local areas where
they operate, for spending
amount earmarked for Corporate
Social Responsibi l i ty (CSR)
activities.
3. To help in curbing a major source
of corporate delinquency, Clause
36 (c) has been amended to also
include punishment for falsely
inducing a person to enter into any
agreement with bank or financial
institution, with a view to
obta in ing credit fac i l i t ies .
(Amendment in Clause 36).
4. Provisions relating to audit of
Government Companies by
Comptroller and Auditor General
of India (C&AG) have been
modified to enable C&AG to
p e r fo r m s u c h a u d i t m o re
effectively. {Amendment in
Clauses 143(5) and (6)}.
5. Clause 186 has been amended to
provide that the rate of interest for
inter corporate loans and deposits
will be the prevailing rate of
interest on dated Government
Securities. (Amendment in Clause
186).
6. Provisions relating to restrictions
on non audit services have now
been modified to provide that
such restrictions shall not apply to
a s s o c i ate co m p a n i e s . T h e
amended provisions now further
provide for transitional period for
complying with such provisions.
(Amendment in Clause 144).
7. Provisions relating to separation
of office of Chairman and
Managing Director (MD) have now
been modified to allow certain
classes of companies, which have
multiple businesses and separate
divisional MDs to appoint the
same person as chairman as well
as MD. (Amendment in Clause
203).
8. Provisions relating to extent of
criminal liability of auditors
particularly in case of partners of
an audit firm have been reviewed
to bring further clarity. Further, to
ensure that the liability in respect
of damages paid by auditor, as per
the order of the Court, (in case of
conviction under Clause 147) is
promptly used for payment to
affected parties including tax
authorities, Central Government
has been empowered to specify
any statutory body/authority for
such purpose. (Amendments in
Clause 147 and 245). These
provisions are of particular
concern to the entire Chartered
Accountancy Fraternity as they
seek to impose criminal liabilities
on what is essentially a civil
BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NewsLetter
07 NOV 2012VOLUME - X
offence or in many cases
inadvertent error.
9. The limit in respect of maximum
number of companies in which a
person may be appointed as
auditor has now been proposed as
twenty companies. {Amendment
in Clause 141(3) (g)}. The original
clause empowered the Central
Government to not i fy the
maximum number of Companies
in which a person may be
appointed as an Auditor. The said
power has now been removed and
the limit is now a part of the
provision itself.
10. Appointment of auditors for five
years sha l l be sub ject to
ratification by members at every
A n n u a l G e n e r a l M e e t i n g
(Amendment of Clause 139(1).
The original clause provided for a
tenure of five years for the
Auditors with no requirement of
ratification every year.
11. Provisions relating to voluntary
rotation of auditing partner (in
case of an audit firm) have been
modified to provide that members
of a Company may resolve to
rotate the partner “at such
interval” as they may be resolve
instead of “every year” proposed
in the clause earlier. {Amendment
in Clause 139(3)}.
12. “Whole-time director” has been
included in the definition of the
term `key managerial personnel`
{Amendment of Clause 2(51)}.
13. The term “private placement: has
now been defined to bring clarity.
(Amendment in Clause 42).
14. Approval of the Tribunal shall now
be required for consolidation and
division of share capital only if the
voting percentage of shareholders
changes consequent on such
consolidation {Amendment of
Clause 61(1) (b)}.
15. I t i s n o w c l a r i f i e d t h a t
Independent Directors shall be
excluded for the purpose of
computing one third of retiring
Directors. This would bring
h a r m o n i s a t i o n b e t w e e n
provisions of Clause 149(12) and
rotational norms provided in
clause 152. (Amendment in Clause
152).
16. Provisions in respect of power of
the Central Government to issue
notification for removal of
difficulty have now modified to
provide that such power may be
e xe r c i s e d b y t h e C e n t ra l
Government upto five years (after
the enactment of the legislation)
instead of earlier three years. This
was considered necessary to avoid
serious hardship and dislocation
since many provisions of the Bill
involve transition from pre-
existing arrangements to new
systems. (Amendment in Clause
470).
CA. Sanjeev Shah, FCA
Smart Phones andIdentity Theft
I am Happy to inform you that Research Paper of CA. Sanjeev Shah, Past Chairman of Baroda Branch of ICAI, on the subject “Smart Phones and Identity Theft” is published on page 28/29 of “INFORMANT” magazine (Fall 2012 issue). The magazine is promoted by National White Color Crime Center (www.nw3c.org ) established by US Law Enforcement agencies like FBI, Dept. of Justice, Homeland Security etc.. It is a leading magazine for economic and high tech crime prevention. The magazine can also be seen at the website directly.
The information shall be very useful to smart phone users since a lot of transactions are now being possible on the phone and one need to know how to secure their identity and privacy.
Hope you would protect your identity with little extra care. Enjoy Reading the article ......
We love our smart phones. Whether it’s an Android ®, iPhone® or Blackberry®, we just cannot get enough of the technology - plugging in, updating our Facebook® status, checking our email, listening to or streaming music from a playlist - wherever we are, whenever we desire. We can book a flight, hotel and rental car while having coffee at Starbucks®.
Seriously, smart phones have changed our lives andmost of us have no idea what we ever did without them. But 3G and 4G technology open us up to a new world of identity theft, as well. Our iPhone may or may not store credit card information directly, but all the sites we view automatically log us in where our card information is stored. Our Droid is connected directly to our Facebook account and merges data from multiple sources into a single contact list. Our Blackberry automatically accesses our email at work as well as home, keeping us productive and in touch with our personal lives at the same time. What information received via email would we rather not see fall into the wrong hands?
We are putting more information on our phones and using it for mobile banking, including depositing checks. With the rise in credit card monitoring and sophisticated policing by credit card companies, identity thieves are increasingly
targeting users of smart phones and social media, where consumers have a tendency to be less cautious. About 65-70 percent of the users do not have password protection for their phones.
People should not let their guard down. The challenge we have is criminals often change faster than everyday consumers. If your phone was stolen a few years ago, the thief could make prank calls and read your text messages. Today, that person can destroy your social life and your finances.
BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NewsLetter
08 NOV 2012VOLUME - X
Threats and Security
Be careful while on an open Wi-Fi network:
“Shred” smart phone’s data:
Al low or deny Access:
Your smart phone’s knowledge, if not protected, is a potential risk to your security and privacy. The ultimate question to ask: Is my privacy and security at risk? One has to secure the phone by passcode, antivirus software and software updates. Mobile malware is a rising threat to privacy and security. It is a program especially created to wreak havoc on your phone. Once installed on your device, it disrupts the phone’s system to gain access to the device’s operating system (OS) and takes over the phone to gather stored information. Mobile malware may infiltrate through mobile applications, web-browsing and text messages.
Here are some of the risks which occur when using a smart phone.
• Phones are easily stolen or lost;
• Phones are associated with and linked to a specific user for billing and account purposes, particularly when GPS is enabled;
• While moving in and out of Wi-Fi service areas, you also move in and out of f irewal ls and secure hotspots; and
• Some apps used are unsafe, which can enable phishing attacks.
If you connected to a public network before, your phone can connect automatically to the same open Wi-Fi network. Identity thieves will use this environment to snatch credit card information or user names and passwords to start an attack. The safest course of action is not to enter sensitive data on a public network.
If your phone is stolen, all the information on it is valuable to an identity thief. To overcome this, cell phone security applications are more readily available. These allow you to log into a computer and digitally “shred” (erase) your data.
Before downloading any app, you should carefully examine and pay attention to
the permissions the app is asking to access. It is desirable to review an app’s ratings regardless of whether it is free or paid. For example, the app may request permission to access network communication, system tools, phone calls, personal information in form of owner, contact and storage data as well as hardware controls. Android phone users have to either allow or deny access, and in case of denial, the user will not be able to download the app. For iPhone users, Apple® does not allow app developers to disclose and access the informat ion, whi le Blackberry allows the user to modify the app’s permission levels.
Zero-day vulnerabilities are not yet known by m a n u f a c t u r e r s a n d a n t i v i r u s companies. A known security expert successfully commandeered malware called Nickispy, a remote-access tool emanating from China. Through a classic “spear phishing” attack in Android and Apple smart phone browsers, he controlled the device, recorded its calls, pinpointed its location and accessed user texts and emails. In theory, it could be used to infiltrate a corporate network with which the phone connects. Per the report, there is no security software to thwart it. It is also observed that free phone apps are increasingly loaded with malware. Downloading from well-known app stores reduces the risk, but does not eliminate it completely.
Coffee at Starbucks with no wallet: A new smart phone app called “Pay with Square” may allow you to do just that. As soon as you walk in without taking out your wallet, your phone syncs with the Starbucks database. We all look for convenience, but having this app may make you more susceptible to identity theft unless there is a lot of security behind this network and database.
A new computer virus, called Gauss, was recently discovered
Zero-day security hole:
Beware… Virus steals money, then fools you by hiding fraudulent transactions:
in the Middle East. These surveillance tools steal credentials for hacking online banking systems and hijack login information for social sites and email/messaging accounts. Cyber security firm Kaspersky Lab said, Gauss is the work of the same factory that built the Stuxnet worm, which attacked Iran’s nuclear program. New malware was released this year that not only steals money from your bank, but also offers false reassurance that it is still there. The malware is designed in a way that when one visits his or her online bank, there is no trace of the transactions cyber-criminals are using to empty the bank account. Worse, the balance will be adjusted on screen so it looks
as if nothing is happening. High-tech cyber attacks such as SpyEye are behind such crimes.
Photobucket Mobile - Not hacking but Fusking: An alarming number of women have no idea their private, nude photos posted on Photobucket have been made public and available on Internet message boards. Skilled hackers are bypassing Photobucket’s security settings and scouting for naked photos users wanted to keep private. They use software to retrieve the hidden snapshots called fusking - not hacking. This kind of disturbing act is carried out with the help of fusking engines available on the web.
Protect Yourself with Your Smart Phone
Smart phone users are about a third more likely to become victims of identity theft than non-users. For every advancement made on the protection side, consumers remain vulnerable due to the resourcefulness and penetration capabilities of crooks. Defensive tactics have traditionally relied on reactive technologies, such as antivirus signatures, firewalls and intrusion prevention systems. But, today’s threat landscape requires an approach that mixes defiance with offense. Here are some recommended defensive and offensive tactics:
BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NewsLetter
09 NOV 2012VOLUME - X
• Password-protect and lock your phone when not in use.
• Install security software that offers antivirus and malware designed specifically for smart phones and make sure to download software updates.
• Install a “phone finder” app, which helps you to locate your stolen phone.
• Do not “jail-break” or use a “jail-broken” phone since it has gone through a process which opens its OS to apps which would otherwise not be compatible.
• Before you throw away a device, clean it by making sure none of your data is retrievable. Do a complete reset of your phone to wipe out its data and restore it to its factory settings.
• When installing an app on your smart phone, take time to read the “smal l pr int .” Eva luate the information the app requires for access.
• Enroll in a backup/wiping program that will back up the information on your smart phone to your home PC. Some of these services are also able to “wipe” your phone if it is lost so no data remains on the device. iPhones have a built in “wipe” feature that can be activated to wipe the phone after 10 failed log-on attempts.
• Limit your activities while in public Wi-Fi. Try not to buy goods while using a public zone.
• C h e c k U R L s b e f o r e m a k i n g purchases. Any page that requires credit card information should start with https://. This means it is secure.
• Users should ensure the “anti-phishing option is switched on” in their web browser, which will check for “blacklisted” websites and prevent the browser from being directed to the “fake” version of the website.
Appeal for the
Financial AssistanceScheme for CA Students
Dear Members,
The Baroda Branch of WIRC of ICAI has a strong tradition of providing CA Students of Baroda, the best tools and support in achieving their goal of becoming Chartered Accountants. With the active help of its Members, the Baroda Branch of WIRC of ICAI has been since past few years providing needy CA Students with financial assistance so as to enable them to meet a part of their estimated education costs.
• Financial Assistance would be available to eligible Students at all levels as under:
oCPT Students : Rs. 3,000/- oIPCC Students : Rs. 10,000/- oFinal Students : Rs. 10,000/-
The above financial assistance has been computed with an aim of e n a b l i n g s t u d e n t s t o m e e t approximately 50% of their fees through such financial assistance.
Please contact CA Pradeep Agrawal, Chairman (9327243479).
Sr. Names Amt. `
1 CA. A.R.MANNAN 10000
2 CA. ASHOK THAKKAR 10000
3 CA. BHARAT PARIKH 10000
4 CA. BIPIN C. SHAH 10000
5 CA. DARSHAN BHUTWALA 10000
6 CA. DHRUV AGRAWAL 10000
7 CA. DIVYESH MEHTA 10000
8 CA. JAYESH MEHTA 10000
9 CA. JYOTENDRA PATEL 23000
10 LATE CA. K.N. MEHTA 10000
11 CA. MANISH BAXI 20000
12 CA. MAYUR SWADIA 20000
13 CA. NEENA PATEL 52000
14 CA. RAHUL PARIKH 10000
15 CA. S.R. PARIKH 20000
16 CA. VINOD J KANSARA 9000
Worthy Contributors - 2012
Compiled by CA. Ashok Thakkar
ICAI Updates
Peak Filing Preparation 2012 - MCA 21
As you are aware it is time of peak filing of Balance Sheet & Annual Return under the Companies Act, 1956.
In order to ensure smooth filing and to avoid last minute rush, the Ministry of Corporate Affairs vide its General Circular No.30/2012 dated 28.09.2012, extended the due date of filing of e-forms 23AC (Non-XBRL) and 23ACA (Non XBRL) as per new schedule VI in fo l lowing manner without any additional fee:
• Company holding AGM or whose due date for holding AGM was on or before 20.09.2012, the time limit will be 03.11.2012 or due date of filing, which ever is later.
• Company holding AGM or whose due date for holding AGM is on or after 21.09.2012, the last filing date is 22.11.2012 or due date of filing, which ever is later.
We are quite sure that you might have already taken steps in advising corporates to file returns at an early date to facilitate the Ministry in achieving its desired objective under MCA 21.
Further, the Ministry vide General Circular No.31/2012 dated 28.09.2012 has also extended the filing of e ]form 23B without any additional fee till 23.12.2012 or due date of filing which ever is later.
In order to ensure smooth filing of the forms and to avoid system congestion in MCA21, the Ministry of Corporate Affairs has advised ICAI to request its members to file e-form 23B after 22.11.2012 but positively on or before 23.12.2012 or due date of filing whichever is later to avoid system congestion.
Members concerned are earnestly requested to kindly plan their filing accordingly.
BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NewsLetter
10 NOV 2012VOLUME - X
Compiled by CA. Bimal R. Bhatt
TRANSFORMING CAPITALISM Arun Maira, Member –Planning Commission
• Like Arjun on the battlefield at Kurukshetra who asked Krishna a moral question, not advice, not advice on how to fight the battle, business leaders fighting the recession must also ask what they must change in their approach to business to regain society’s trust if they want freedoms in the future.
• Corporate Social Responsibility (CSR) is an inadequate concept because it is limited to what companies do with a portion of the profits they make, whereas what the world needs is accountability from businesses for how they make their profits.
• Corporate leaders must reach out to civil society and listen to its needs and concerns. They should begin to shape a new unwritten contract with society about what society may expect from the Corporate Sector.
• Systems with great diversify cannot be ‘controlled’ from a single centre.
Therefore, change in India will be brought about by many hundreds of thousands of people who take initiatives in local centers of action towards a shared vision.
• The Wheel of Progress that has been invented elsewhere has put more pressure on the earth than it can bear. So it is imperative we find a better and more sustainable way for economic growth.
• When people find that official processes to make their voices heard are not working, they are likely to take recourse to other means to get their point across. Thus a problem of poor dialogue in democracy can become a problem of law and order which the state is then pressed to resolve undemocratically and with force.
• When the leaders of a company get down to seriously develop a vision for their company, they always ask themselves a soul-searching question: ‘what sort of company do we want to be?’ So too, the people of India must have a tangible vision of what sort of country we want to be.
• The poor ask the rich: ‘Are you willing
to change your l ifestyles to drastically reduce the amount of the earth’s resources you are using so that we can have a fair share of these depleting resources?’
• The poor are not asking the rich to give their wealth to the poor. They are asking for a chance to participate equitably in the process of wealth creation. Not trickle down, but growing together.
• Inclusive growth requires that all can take charge of their own lives and every nation of itself, while also taking responsibi l ity for the consequences of their actions on the world around them.
• Business leaders want Governments to intervene in markets but, keep them free. This raises questions about what they want markets to be free from. Freedom only from barriers to trade? Or also freedom form Government regulations? Or even freedom from responsibility for their actions?
• Responsibility for social issues does not make a capitalist into a socialist, but into a better human being and hence, perhaps, a better capitalist.
IMPORTANT DUE DATES November 2012
DATES COMPLIANCE PERIOD
05.11.2012 Payment of Service Tax - Monthly & Quarterly Cases / Excise Duty (for NON SSI) Oct.'12
06.11.2012 E-Payment of Service Tax - Monthly & Quarterly Cases / Excise Duty (for NON SSI) Oct.' 12
07.11.2012 TDS payment /E-payment Oct.'12
09.11.2012 VAT / CST E-Return - Monthly (For VAT or CST > ` 5,000/-) Aug.'12
15.11.2012 Payment of Professional Tax / PF / Excise Duty (for SSI) Oct.' 12
16.11.2012 Excise Duty E-Payment (for SSI) Oct.'12
22.11.2012 VAT / CST payment / E-payment - Monthly Oct.'12
22.11.2012 Filing Balance Sheet and Profit & Loss A/c. of Companies with ROC Fin. Yr.: 2011-12
25.11.2012 Service Tax E-Return Apr. – June ‘12
29.11.2012 VAT / CST E-Return - Monthly (For VAT or CST <= ` 5,000/-) Sept.' 12(with Stock Statement for July'11 to Sept.' 11)
Compiled by CA. Abhijit J. Kotecha
BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NewsLetter
11 NOV 2012VOLUME - X
CA Bharat Shetty, Mumbai
CA Sunil Talati, Past President, ICAI
CA Rahul Parikh, Baroda
CA Sunil Sharma, Mumbai
CA Yagnesh Desai, Mumbai
FULL DAY NATIONAL WORKSHOP ON SMPs ON 06.10.2012 FELICITATION
Felicitation of CA. Rameshchandra Gandhi on 60 years of continuous membership on 06.10.2012
WORKSHOP ON FINANCIAL PRESCRIPTION FOR DOCTORS ON 07.10.2012
Chairman Standing Committee, VMSS, Dr. Vijay Shah CA. Alok Shah, Baroda CA. Amar Shah, Baroda CA. Manish Baxi, Baroda CA. Milin Mehta, Baroda
1ST ALL GUJARAT CFO MEET ON 19.10.2012
CA. Sunil Vakil, Baroda
CA. Bharat Kanani,Baroda
CA. Sanjeev Shah,Baroda
CA. Deepak Narayanan,Mumbai
CA. Ashesh Ghosh,Mumbai
CA. Sanjeev Shah,Baroda
CA. Bimal Bhatt,Baroda
CA. Pratik Singhi, Mumbai
CA. Maulik Mehta, Baroda
CA. Shashidhar Jayraman, Mumbai
CA. Rakesh Mistry, Ahmedbad
CA. Smriti Vijay, Mumabi
OTHER ACTIVITIES
CPE Teleconferencing on Negative List - Service Tax on 31.10.2012
Vigilance week observed by Income Tax, Barodaon 31.10.2012
Study Circle Meet by CA. Bharat Gajjar, Baroda on 30.10.2012 & 31.10.2012
1st CERTIFICATE COURSE ON CONCURRENT AUDIT - BANKS OCT. 12
CA Abhijit Sanzigiri,Mumbai
CA Dhananjay Gokhale,Mumbai
CA Niranjan Joshi,Mumbai
CA Kuntal Shah,Ahmedabad
CA Uday Sathaye,Bhushaval
CA. Manish Baxi, Baroda
CA. U. C. Singhvi, General Manager, BOB Examination
BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
NewsLetter
12 NOV 2012VOLUME - X
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