chairman’s communicationvasai-icai.org/image/newsletter for the month of november...message and...

Photo – One Day Seminar on GST Audit & Annual Return ...................... 2

Chairman’s Communication ..................... 3

Campaus Placement Programme ............ 4

Direct Taxes - Law Update ....................... 5

ITC on Demo cars used for sales promotion .................................................. 7

Announcement-Empanelment of Examiners ................................................. 7

Photo – Conference on GST ..................... 8

Photo – CA Career Counseling at Holy Family School & College ....................... 10

Photo – 337th Batch of Certificate Course on Concurrent Audit of Banks ... 11

2 The Institute of Chartered Accountants of India – Vasai Branch of WIRC NEWSLETTER

November 2018

One Day Seminar on GST Audit & Annual Return held on 7th Oct 2018 at Branch Premises, Bhayander (West)

(L-R):- CA. Nitesh Kothari (Past Chairman, Vasai Branch), CA. Joyma Tuscano (Dy Conveneor – Vasai Virar CPE Study Circle), CA. Sumeet Doshi (Chairman, Vasai Branch), CA. Dilip Phadke (Speaker), CA. Xavier Rajan (Vice Chairman, Vasai Branch) & CA. Sajeeve Abraham (Conveneor – Vasai Virar CPE Study Circle) at the dais

(L-R):- CA. Xavier Rajan (Vice Chairman, Vasai Branch), CA. Jignesh Kansara (Speaker), CA. Nitesh Kothari (Past Chairman, Vasai Branch), CA. Umesh Mestry (Past Chairman, Vasai Branch) & CA. Anadi Bhase (Coordinator) at the dais

(L-R):- CA. Aman Jain (Coordinator), CA. Sumeet Doshi (Chairman, Vasai Branch), CA. Manoj Chauhan (Speaker), CA. Nitesh Kothari (Past Chairman, Vasai Branch) & CA. Jimesh Jain (Coordinator) at the dais

CA. Dilip Phadke

SPEAKERS

CA. Jignesh Kansara CA. Manoj Chauhan

Participants

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November 2018

The Institute of Chartered Accountants of India – Vasai Branch of WIRC NEWSLETTER

CHAIRMAN’S COMMUNICATIONMANAGING COMMITTEE

CA. Sumeet Doshi 9869525956 Chairman

CA. Xavier Rajan 9371720027 Vice Chairman

CA. Hemant Shah 9022405230 Secretary

CA. Ankit Rathi 9029059911 Treasurer

CA. Bhanwar Borana 8291454999 WICASA Chairman

CA. Nitesh Kothari 9833860870 Imm. Past Chairman

CA. Mukesh Sharma 9321160020 Committee Member

EDITORIAL BOARD

CA. Sumeet Doshi 9869525956 Chairman

CA. Nitesh Kothari 9833860870 Imm. Past Chairman

CA. Xavier Rajan 9371720027 Vice Chairman

CA. Hemant Shah 9022405230 Secretary

Dear Professional Colleagues,

“Winter is the time for comfort, for good food and warmth, for the touch of a friendly hand and for a talk beside the fire: it is the time for home.” – Edith Sitwell

On 5th November, Vasai Branch completed 13 years of journey. Thanks for your support & cooperation. Shri. Ravi Vyas (Standing Committee Chairman, & Corporator, MBMC) graced the occasion of Conference on GST and joined in the event of the Celebration of Branch Annual

Day.

As you are aware, the triennial election to 24th Council and 23rd Regional Councils of ICAI will be held on 7th-8th December 2018 at the places having more than 2,500 voters and only on 8th December 2018 at all other places. I would request all my professional colleagues to come out in large numbers and exercise their right to vote and elect the right candidate. Let us all observe the Election Code of Conduct in letter and spirit so that free and fair elections could be conducted.

Branch had conducted Two Days Conference on GST under the guidance of Indirect Taxes Committee, ICAI. Glimpses of Speakers enlighten the knowledge of different area of GST Audit Report & Annual Return to more than 300 participants.

Branch also successfully completed 337th Batch of Certificate Course on Concurrent Audit of Banks under the guidance of Internal Audit Standard Board, ICAI. Branch also conducted Seminar on GST in association with Vasai Virar CPE Study Circle.

With support & cooperation of Holy Family School & College, branch had conducted Career Counseling Programmes for the benefits of students of 10th to 12th standard.

In November this year, we have Deepawali and the birthdays of Prophet Mohammed (Id-e-Milad) and Guru Nanak, which fall on 7th, 21st and 23rd November respectively. We also have Govardhan Puja, Bhai Duj, Chhath Puja (Surya Shashthi) and Guru Teg Bahadur’s martyrdom day falling on 8th, 9th, 13th and 24th November respectively. We have to carry forward the message and mission of togetherness, love and peace that our festivals essentially emanate. Let us create a better world around us.

Before winding up this message, I would like to wish all the best to all of you who write the Foundation/Intermediate/Final Examinations.

CA. Sumeet Doshi Chairman – Vasai Branch


November 2018

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November 2018


Direct Taxes - Law Update CA. Haresh P. KeniaMobile No. : 9821351838E-mail : [email protected]

SECTION 139 OF THE INCOME-TAX ACT, 1961 - RETURN OF INCOME - CBDT FURTHER EXTENDS DATE FOR FILING INCOME-TAX RETURNS AND AUDIT REPORTS FOR ASSESSMENT YEAR 2018-19

ORDER [F.NO.225/358/2018/ITA-II], DATED 8-10-2018

The due date for filing of Income Tax Returns and Audit Reports for Assessment Year 2018-19 was 30th September, 2018 for certain categories of taxpayers. Central Board of Direct Taxes (CBDT) had earlier extended the date for filing of Income Tax Returns and various reports of Audit to 15th October, 2018. Upon consideration of representations from various stakeholders, CBDT further extends the 'due date' for filing of Income Tax Returns as well as reports of Audit (which were required to be filed by the said specified date) from 15th October, 2018 to 31st October, 2018 in respect of the said categories of taxpayers. However, as specified in earlier order dated 24.09.2018, assessees filing their return of income within the extended due date shall be liable for levy of interest as per provisions of section 234A of the Income-tax Act, 1961

SECTION 112A OF THE INCOME-TAX ACT, 1961 - LONG TERM CAPITAL GAINS - NOTIFIED TRANSACTIONS OF ACQUISITION OF EQUITY SHARES - CHARGEABILITY TO STT SHALL NOT APPLY

NOTIFICATION NO. SO 5054(E) [F.NO. 60/2018 (F.No.370142/9/2017-TPL)], DATED 1-10-2018

In exercise of the powers conferred by sub-section (4) of section 112A of the Income-tax Act, 1961 (43 of 1961) hereinafter referred to as the Income-tax Act, the Central Government, with a view to specify the nature of acquisition in respect of which the provision of sub-clause (a) of clause (iii) of sub-section (1) of section 112A of the Income-tax Act shall not apply, hereby notifies the transactions of acquisition of equity share entered into—

(I) before the 1st day of October, 2004; or

(II) on or after the 1st day of October, 2004 which are not chargeable to securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004), other than the following, namely:—

(a) where acquisition of existing listed equity share in a company whose equity shares are not frequently traded in a recognised stock exchange of India is made through a preferential issue:

Provided that nothing contained in this clause shall apply to acquisition of listed equity shares in a company;—

(i) which has been approved by the Supreme Court, High Court, National Company Law Tribunal, Securities and Exchange Board of India or Reserve Bank of India in this behalf;

(ii) by any non-resident in accordance with foreign direct investment guidelines issued by the Government of India;

(iii) by an investment fund referred to in clause (a) of Explanation 1 to section 115UB of the Income-tax Act or a venture capital fund referred to in clause (23FB) of section 10 of the Income-tax Act or a Qualified Institutional Buyer; and

(iv) through preferential issue to which the provisions of chapter VII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 does not apply.

(b) where transaction for acquisition of existing listed equity share in a company is not entered through a recognised stock exchange in India:

Provided that nothing contained in this clause shall apply to the acquisition of listed equity shares in a company which has been made in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), and is—

(i) through an issue of share by a company other than the issue referred to in clause (a);

(ii) by scheduled banks, reconstruction or securitisation companies or public financial institutions during their ordinary course of business;

(iii) approved by the Supreme Court, High Courts, National Company Law Tribunal, Securities and Exchange Board of India or Reserve Bank of India in this behalf;


November 2018

(iv) under employee stock option scheme or employee stock purchase scheme framed under the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999;

(v) by any non-resident in accordance with foreign direct investment guidelines of the Government of India;

(vi) in accordance with Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulation, 2011;

(vii) from the Government;

(viii) by an investment fund referred to in clause (a) to Explanation 1 to section 115UB of the Income-tax Act or a venture capital fund referred to in clause (23FB) of section 10 of the income-tax Act or a Qualified Institutional Buyer; and

(ix) by mode of transfer referred to in section 47 or section 50B or sub-section (3) of section 45 or sub-section (4) of section 45 of the Income-tax Act, if the previous owner or the transferor, as the case may be, of such shares has not acquired them by any mode referred to in clause (a) or clause (b) or clause (c) [other than the transactions referred to in the proviso to clause (a) or clause (b)].

(c) acquisition of equity share of a company during the period beginning from the date on which the company is delisted from a recognised stock exchange and ending on the date immediately preceding the date on which the company is again listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 read with Securities and Exchange Board of India Act, 1992 (15 of 1992) and the rules made thereunder;

Explanation.— For the purposes of this notification,—

(a) "frequently traded shares" means shares of a company, in which the traded turnover on a recognised stock exchange during the twelve calendar months preceding the calendar month in which the acquisition and transfer is made, is at least ten per cent. of the total number of shares of such class of the company:

Provided that where the share capital of a particular class of shares of the company is not identical throughout such period, the weighted average number of total shares of such class of the company shall represent the total number of shares;

(b) 'listed' means listed in a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 and the rules made thereunder;

(c) "preferential issue" and "Qualified Institutional Buyer" shall have the meanings respectively assigned to them in sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;

(d) "public financial institution" and "scheduled bank" shall have the meanings respectively assigned to them in Explanation to clause (viia) of sub-section (1) of section 36 of Income-tax Act;

(e) "recognised stock exchange" shall have the same meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956; and

(f) "reconstruction company" and "securitisation company" shall have the meanings respectively assigned to them in sub-section (1) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002).

This notification shall come into force with effect from the 1st day of April, 2019 and shall accordingly apply in relation to the assessment year 2019-20 and subsequent assessment years.

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7

November 2018


CA Monu VermaMobile No. : 9892063171E-mail : [email protected]

Kerala AAR in the case of M/s A.M. Motors, TS-542-AAR-2018-NT dated 19.9.2018 has held that input tax paid by a vehicle dealer on purchase of motor car used for demo purpose can be availed as input tax credit (ITC) on capital goods and set off against output tax payable under GST.

Facts of the case:

The Petitioner inter alia is in motor dealership business. They acquire demonstration vehicles from the principle supplier for demonstration purpose for the prospective buyers. As per the business norms, every sales outlet is bound to maintain at least three demo vehicles. These vehicles are capitalized in the books of the Petitioner at value excluding GST. These vehicles are after a period of time (two years or 40,000 kms, whichever is earlier), sold by the Petitioner paying applicable tax.

Advance Ruling sought by the Petitioner:

Whether ITC on the demonstration vehicles purchased and capitalized can be availed as credit on capital goods and be set-off against the output tax payable under GST in case of Motor dealer?

Relevant statutory Provision:

• Capital Goods, Section 2(19) of the CGST Act, 2017

“(19) “capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business;”

• Section 17(5) of CGST Act, 2017

“(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:—

ITC on Demo cars used for sales promotion

(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:—

(A) further supply of such motor vehicles; or

(B) transportation of passengers; or

(C) imparting training on driving such motor vehicles;..”

Observations by the AAR:

• Demo cars are indispensable tool for sales promotion by providing trial run to customers and to understand features of the vehicle, further they are supplied against tax invoices and capitalized in the books of accounts.

• Capital goods which are used in the course or furtherance of business are entitled for ITC. As the impugned purchase of demo car is in furtherance of business, the applicant is eligible for ITC.

• Further, this activity does not come under the negative clause (Sec 17(5)) as after a limited period of use as demo car, the vehicles are sold at the written down book value. GST Act does not prescribe the time limit within which the further supply is to be effected. Thus, the embargo under section 17(5) will not apply.

• The availability of ITC will apply according to provisions of Sec 18(6) of GST Act i.e. in case of supply of capital goods on which ITC has been taken, the registered person shall pay an amount equal to ITC reduced by percentage points or on the transaction value of such capital goods , whichever is higher.

AAR Ruling

ITC on the demonstration vehicles purchased and capitalized can be availed as credit on capital goods and be set-off against the output tax payable under GST in case of Motor dealer.

2

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA EXAMINATION DIVISION

Announcement-Empanelment of ExaminersApplications are invited from eligible members of the Institute and other professionals including academicians of reputed educational institutions, tax and legal practitioners etc., having a flair for academic activities including valuation of answer books and willing to undertake confidential assignments as a dedicated examiner, for empanelment as examiner of the Chartered Accountants Examinations.

The complete details have been hosted on the ICAI website (www.icai.org) under the “MOST IMPORTANT” section

Application for empanelment as Examiner can be submitted online at: http://examinerspanel.icaiexam.icai.org

Joint Secretary (Exams)


November 2018

Conference on GST held on 3rd & 4th Nov 2018 at Maheshwari Bhawan, Bhayander (West)

(L-R):- CA. Sandip Jain (Coordinator), CA. Kishor Vaishnav (Past Chairman, Vasai Branch), CA. Nitesh Kothari (Past Chairman, Vasai Branch), CA. Xavier Rajan (Vice Chairman, Vasai Branch), CA. Madhukar N. Hiregange (CCM & Chairman, Indirect Tax Committee), CA. Sumeet Doshi (Chairman, Vasai Branch), CA. Hemant Shah (Secretary, Vasai Branch) & CA. Mukesh Sharma (Committee Member, Vasai Branch) at the inaugural Session

(L-R):- CA. Pramod Dhamankar (Past Chairman, Vasai Branch), CA. Sumeet Doshi (Chairman, Vasai Branch), CA. Jignesh Kansara (Speaker), CA. Xavier Rajan (Vice Chairman, Vasai Branch) & CA. Jimesh Jain (Speaker)

Shri. Ravi Vyas (Standing Committee Chairman, & Corporator, MBMC) at the Celebration of Branch Annual Day on the occasion of Conference on GST.

(L-R):- CA. Xavier Rajan (Vice Chairman, Vasai Branch), CA. Nitesh Kothari (Past Chairman, Vasai Branch), CA. Madhukar N. Hiregange (CCM & Chairman, Indirect Tax Committee), CA. Sumeet Doshi (Chairman, Vasai Branch), CA. Hemant Shah (Secretary, Vasai Branch) & CA. Mukesh Sharma (Committee Member, Vasai Branch) at the dais

CA. Avinash Poddar

SPEAKERS

CA. Jatin Christopher CA. Jayesh Gogri CA. Jignesh Kansara CA. Madhukar N. Hiregange

CA. Mandar Telang

Participants

9

November 2018


CA. Sumeet Doshi (Chairman, Vasai Branch) presenting floral bouquet to CA. Madhukar N. Hiregange (CCM & Chairman, Indirect Tax Committee) also seen by CA. Nitesh Kothari (Past Chairman, Vasai Branch)

CA. Kishor Vaishnav (Past Chairman, Vasai Branch) & CA. Sandip Jain (Past Convenor, Bhayander CPE Study Circle) presenting floral bouquet to CA. Avinash Poddar (Speaker) also seen by CA. Xavier Rajan (Vice Chairman, Vasai Branch)

CA. Unmesh Narvekar (Past Chairman, Vasai Branch) presenting floral bouquet to CA. Jayesh Gogri (Speaker)

CA. Sumeet Doshi (Chairman, Vasai Branch) presenting floral bouquet to CA. Mandar Telang (Speaker)

CA. Sumeet Doshi (Chairman, Vasai Branch) & CA. Xavier Rajan (Vice Chairman, Vasai Branch) presenting floral bouquet to CA. Jignesh Kansara (Speaker)

CA. Sumeet Doshi (Chairman, Vasai Branch) & CA. Nitesh Kothari (Past Chairman, Vasai Branch) presenting floral bouquet to Shri. Ravi Vyas (Standing Committee Chairman, & Corporator, MBMC)

CA. Ankit Rathi (Treasurer, Vasai Branch) presenting floral bouquet to CA. Jatin Christopher (Speaker) also seen by CA. Xavier Rajan (Vice Chairman, Vasai Branch)

Conference on GST held on 3rd & 4th Nov 2018 at Maheshwari Bhawan, Bhayander (West)


November 2018

CA Career Counseling at Holy Family School & College held on 17th Oct 2018 at Vasai Road (East)

Participants

(L-R):- CA Sajeeve Abraham, CA. Unmesh Narvekar (Speaker), CA. Mahesh Shah(Senior Member) & CA. Xavier Rajan (Vice Chairman, Vasai Branch) at the dais

CA. Unmesh Narvekar

CA. Xavier Rajan (Vice Chairman, Vasai Branch)presenting memento to Principal Ms. Lizy K.P also seen by CA. Unmesh Narvekar (Speaker) & CA. Umesh Mestry (Past Chairman, Vasai Branch)

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November 2018


To

Undelivered please return to :The Institute of Chartered Accountants of India,Vasai Branch of WIRCAddress: Maxus Mall, B Wing, 7th Floor, Above Maxus Banquet Hall, Temba Road, Bhayandar (West) Thane-401 101. Contact: 9029868900/ 8655068901/ 8976068902. Email: [email protected] Website: www.vasai-icai.org

Editor: CA. Sumeet Doshi Published by Vasai Branch of Western India Regional Council of The Institute of Chartered Accountants of India and printed at Finesse Graphics and Prints Pvt. Ltd., 309, Parvati Ind. Est., Sun Mill Compound, Lower Parel, Mumbai 400 013. Tel. : 4036 4600

The views and opinions expressed or implied are those of the authors or contribution and do not necessarily reflect those of Vasai Branch. Unsolicited articles and transparencies are sent in at the owner’s risk and the publisher accepts no liability for loss or damage. Material in this publication may not be reproduced, whether in part or in whole, without the consent of Vasai Branch.

DISCLAIMER: The Vasai branch is not in any way responsible for the result of any action taken on the basis of the advertisement published in the Newsletter. The members, however, may bear in mind the provision of the Code of Ethics while responding to the advertisements.

337th Batch of Certificate Course on Concurrent Audit of Banks held from 13th to 28th Oct 2018 at Branch Premises, Bhayander (West)

chairman’s communicationvasai-icai.org/image/newsletter for the month of november...message and...

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