newsletter may 2016 - baroda-icai.org · cpe 03 cpe 03 cpe 03 cpe 02 cpe 03 cpe 02 cpe 12 study...

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CA. Viral Shah Chairman 98243 62211 CA. Arpan Dodia Vice-Chaimram 98983 83530 CA. Dhiren Parikh Secretary 93762 11099 CA. Kejal Pandya Treasurer 98259 77220 CA. Pradeep Agrawal Ex-officio 98985 60967 CA. Yash Bhatt Imm. Past Chairman 99243 88339 CA. Utpal Shah Committee Member & Study Circle Convener 98250 28960 CA. Hitesh Agrawal Committee Member 99980 28737 CA. Krunal Brahmbhatt Committee Member 78748 11551 CA. Vinod Pahilwani Committee Member 98980 78176 CA. Viral Shah CA. Krunal Brahmbhatt CA. Priyanka Thakkar CA. Jigita Shah Editorial Team Chairman Message Volume - IV May 2016 Dear Colleagues, Its May and as the Summer Sun boils down and temperatures soar, but activities at Baroda Branch continues to roar. I hope all the members would be gearing for a GENERVACATION? i.e. a 3G Holiday. No, I am not talking phone connectivity. Rather a real one with three generations – your children, your parents and you. Our Branch has conducted series of events to cater to various topics relevant to ensure members stay updated. We also had privilege of organizing an Interactive Meet with Honorable President CA. M. Devaraja Reddy and Honorable Vice President CA. Nilesh Vikamsey of ICAI. I am delighted to share that Baroda Branch has been awarded a permission to construct a traffic island at the cross roads near ICAI Bhawan. A Khat Muhrut pooja was performed by Hon. President and Vice President of ICAI. As a part of our mission to constantly update the members several CPE and non CPE events were organised in the month of April 2016 such as Recent issues in International Taxation, Issues in the Implementation of ICDS, Deeming Fiction u/s 56(2)(vii), Beginners Workshop on FEMA, Recent issues in Input Credit and Works Contract under VAT, Tax Planning through HUF and Family Arrangements besides monthly Tax Clinic Series. A Public program on start ups was organized by Baroda Branch which was appreciated by one and all. In case members have missed any of the programs, they can download the presentation from our website, www.baroda-icai.org. We have also circulated E-mail informing members about updating their profile on the website to facilitate printing of Members’ Directory in time. A certificate course on Forensic Accounting and Fraud Prevention is also planned in the month of June. Members are requested to register as early as possible. Besides various other programs for the month of May are listed in this Newsletter. Sincerely yours, Chairman In case any member has missed the deadline of 30th April, can update their profile by 15th May after which the information available with us shall be considered as full and final. Happy Holidays! Wish you a great time with full of fun and joy with your family this summer… CA. Viral Shah Forth Coming Events Direct Tax Updates Judicial Decisions on Excise and Service Tax Service Tax Updates FAQS with regard to CSR Life Lessons FAQS on Preface of ICDS Due Date Planner Memory Lane Spiritual Corner 02 03 04 04 06 07 10 11 08 10 Contents

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CA. Viral ShahChairman98243 62211

CA. Arpan DodiaVice-Chaimram98983 83530

CA. Dhiren ParikhSecretary93762 11099

CA. Kejal PandyaTreasurer98259 77220

CA. Pradeep AgrawalEx-officio98985 60967

CA. Yash BhattImm. Past Chairman99243 88339

CA. Utpal ShahCommittee Member &Study Circle Convener98250 28960

CA. Hitesh AgrawalCommittee Member99980 28737

CA. Krunal BrahmbhattCommittee Member78748 11551

CA. Vinod PahilwaniCommittee Member98980 78176

CA. Viral ShahCA. Krunal BrahmbhattCA. Priyanka ThakkarCA. Jigita Shah

EditorialTeam

Chairman Message

Volume - IV May 2016

Dear Colleagues,

Its May and as the Summer Sun boils down and temperaturessoar, but activities at Baroda Branch continues to roar.

I hope all the members would be gearing for a GENERVACATION?i.e. a 3G Holiday. No, I am not talking phone connectivity. Rather areal one with three generations – your children, your parents andyou.

Our Branch has conducted series of events to cater to varioustopics relevant to ensure members stay updated. We also hadprivilege of organizing an Interactive Meet with HonorablePresident CA. M. Devaraja Reddy and Honorable Vice PresidentCA. Nilesh Vikamsey of ICAI. I am delighted to share that BarodaBranch has been awarded a permission to construct a trafficisland at the cross roads near ICAI Bhawan. A Khat Muhrut poojawas performed by Hon. President and Vice President of ICAI.

As a part of our mission to constantly update the members severalCPE and non CPE events were organised in the month of April 2016such as Recent issues in International Taxation, Issues in theImplementation of ICDS, Deeming Fiction u/s 56(2)(vii), BeginnersWorkshop on FEMA, Recent issues in Input Credit and WorksContract under VAT, Tax Planning through HUF and FamilyArrangements besides monthly Tax Clinic Series. A Public programon start ups was organized by Baroda Branch which wasappreciated by one and all. In case members have missed any ofthe programs, they can download the presentation from ourwebsite, www.baroda-icai.org.

We have also circulated E-mailin forming members aboutupdating their profile on thewebsite to facilitate printing ofMembers’ Directory in time.

A certificate course on Forensic Accounting and Fraud Preventionis also planned in the month of June. Members are requested toregister as early as possible. Besides various other programs forthe month of May are listed in this Newsletter.

Sincerely yours,

Chairman

In case

any member has missed the

deadline of 30th April, can

update their profile by 15th

May after which the

information available

with us shall be

considered as full

and final.

Happy Holidays! Wish you a great time with full of fun and joy

with your family this summer…

CA. Viral Shah

Forth Coming Events

Direct Tax Updates

Judicial Decisions on Excise and Service Tax

Service Tax Updates

FAQS with regard to CSR

Life Lessons

FAQS on Preface of ICDS

Due Date Planner

Memory Lane

Spiritual Corner

02

03

04

04

06

07

10

11

08

10

Co

nt

en

ts

FORTHCOMING EVENTSBRANCH EVENTS

DTRC STRUCTURE

WORKSHOP FOR ACCOUNTANTS ON INCOME TAX,SERVICE TAX, VALUE ADDED TAX AND

FINALISATION OF ACCOUNTS JOINTLY WITH FGI

BEGINEERS WORKSHOP ON FEMA

2

WORKSHOP ON INTERNAL FINANCIAL CONTROL

COMMON ERRORS IN THE PRESENTATION OFFINANCIAL STATEMENTS UNDER COMPANIES ACT

TAX CLINIC - SERIES V

2 DAYS REGIONAL SPORTS AND CULTURAL EVENTS

NATIONAL CONVENTION FOR CA STUDENTS

DRAFTING OF AUDIT REPORT UNDERCOMPANIES ACT & CARO 2016

Date :

Faculty :

Time :

Venue

Fees :

14-05-2016

CA. Khushroo Panthaky, Mumbai

CA. Gaurav Shah, Ahmedabad

9.30 am to 12.30 pm

: ICAI Bhawan

Rs. 250/- upto 11th May' 16 afterwards Rs. 400/-

Date :

Faculty :

Time :

Venue

Fees :

14-05-2016

CA. Khushroo Panthaky, Mumbai

2.00 pm to 5.30 pm

: ICAI Bhawan

Rs. 250/- upto 11th May' 16 afterwards Rs. 400/-

Date :

Faculty :

Time :

Venue

Fees :

19-05-2016

CA. Narendra Hindocha & CA. Manish Shah

6.00 pm to 8.00 pm

: ICAI Bhawan

Rs. 100/-

Date :

Faculty :

Time :

Venue

Fees :

21-05-2016

CA. Murtuza Kachwala, Mumbai

2.00 pm to 5.30 pm

: ICAI Bhawan

Rs. 250/- upto 18th May' 16 afterwards Rs. 400/-

Date :

Time :

Venue :

Fees :

13-05-2016

3.00 pm to 6.00 pm (followed by High-Tea)

FGI Building, Gotri Sevasi Road

Rs. 500/- For Members / Rs. 600/- For Non Members

- Income Tax Compliance & Issues CA. Nirav Shah

- Service Tax Compliance & Issues CA. Dhruvank Parikh

- VAT Compliance & Issues CA. Prakash Thakkar

- Important points in Finalisation of Accounts CA. Rashmi Thakkar

Topics Speakers

Date :

Faculty :

Topic :

Time :

Fees :

07-05-2016

CA. Shardul Shah, Mumbai

Inbound and Outbound Investment

02.00 to 05.30 pm

Venue : ICAI Bhawan

Rs. 650/-

CPE03

CPE03

CPE03

CPE02

CPE03

CPE02

CPE12

STUDY CIRCLE EVENTS

Day & Date :

Time :

Topic :

Faculty :

Venue :

Fees :

Day & Date :

Time :

Topic :

Faculty :

Venue :

Fees :

May 2016

6.00 pm to 8.00 pm

Practical issues in filling e TDS returns

CA. Tejas Purohit

Conference room, ICAI Bhawan

Rs. 200/- (for non Study Circle members)

May 2016

6.00 pm to 8.00 pm

Cyber Threat & Cloud Computing

CA. Punit Jain

Conference room, ICAI Bhawan

Rs. 200/-

Tuesday, 10,

Tuesday, 24,

(for non Study Circle members)

Topics Speakers

Saturday, May 28, 2016

Saturday, Jun 04, 2016

Saturday, Jun 11, 2016

- Deeming Fiction under Income Tax Act Adv. Kapil Goel, Delhi

- How to Handle Income Tax Survey CA. Mukund Bakshi, Vadodara

- Business Restructuring Tax issues CA. Milin Mehta, Vadodara

- Recent Issues in Taxation of Share Capital CA. Bhupendra Shah, Mumbaiand Share Premium

- Recent Judgement under Income Tax Act Adv. Manish Shah, Ahmedabad

- Tax Issues in transactions of Immovable CA. Jagdish Punjabi, MumbaiProperty & Construction Industry, CapitalGain & Recent Controversy

WICASA EVENTS

DIRECT TAX REFRESHER COURSE

Date :

Time :

CPE :

Venue :

28-05-2016 / 04-06-2016 / 11-06-2016

02.00 pm to 06.00 pm

12 Hrs. (4 Hrs. - Day)

ICAI Bhawan

Fees : Rs. 1200/- for all three days upto 25th May' 16afterwards Rs. 1500/-

Rs. 500/- per day upto upto 25th May' 16afterwards Rs. 650/-

Day & Date

Organised by

Hosted by

Saturday & Sunday, 11th & 12th June '2016

Baroda Branch of WICASA

Westerna India Chartered Accountants Students Association (WICASA)

Day & Date

Venue

Organised by

Hosted by

8th & 9th July '2016

Sir Sayaji Rao Nagar Gruh, Akota, Baroda, Gujarat

Board of Studies, ICAI

Baroda Branch of WIRC of ICAI & Baroda Branch of WICASA

Friday & Saturday,

DIRECT TAX UPDATESCA. Narendra Hindocha

1. Stay of demand until disposal of firstappeal

Speechof the Finance Minister

mandatory for the Assessing Officerto grant stay of demand once theassessee pays 15%

instruction from theCBDT also came on the same day.

catch.

entitled toimpose a condition.

Bank Guarantee forremaining amount.

leavingyou with less cash than what youwould have if you paid demand infull.

2. New Return forms

According to Para 169 of theon the

occasion of presentation of the lastbudget, ‘Income-tax Department isissuing instruction making it

of the disputeddemand, while the appeal is pendingbefore Commissioner(Appeals)’

Although that sounded too good to betrue, the revised

But there is a

According to the revised Instructions,the Assessing Officer is

When anassessee sought the benefit of thenew instructions, the AssessingOfficer asked for payment of 15% andalso give

This may meanthat you pay 15% as Income-tax, 85%as deposit with bank for guaranteeand also guarantee charges,

That reminded me of one Mr. Wagle inan old TV serial who tried to take loanunder ‘Easy loan Scheme’ of bank, bytrying to open the Bank safe himself.He was gently reminded that the loanis not that easy.

i) A f t e r a d v e r s e j u d i c i a lobservations last year, onaccount of delay in notifying theF o r m s o f R e t u r n s , t h eGovernment pulled up its socksand notified the new forms before1st April.

ii) The new forms require disclosureof cost of immovable assets, andspecified movable assets ownedon 31st March, 2016 andliabilities relating thereto in caseof individuals and HUFs earning

more t han Rs .50 / - l acs(compared to earlier threshold ofRs.25/- lacs) .

The specified movable assets incase of ITR 1 and 2 include onlycash, jewellery and vehicleswhile in case of ITR 4, they alsoinclude bank balances, loans,shares and securities etc.

The assets are required to bestated at cost. There may bedifficulties in reporting the costsin cases where books ofaccounts are not required to bemaintained as also in cases inwhich assets are acquired bymodes other than purchase,including gift or inheritance.

iii) Section 32 is amended with effectfrom Assessment Year 2016-17to provide that in case of newplant and machinery used for lessthan 180 days, while additionaldepreciation is allowable to theextent of 50% only, the remaining50% is to be allowed in thefollowing year. However, I did notsee any place in the Forms ofreturns to make this claim.

While we are at the threshold of thenew season for Tax audits andReturns, I thought I will list some of thenew rules applicable for AssessmentYear 2016-17. These are inconsequences of change in Income-tax Act made by Finance Act, 2015 asalso Income Computation andDisclosure Standards which applyfrom this year. The changes are:

Effective tax for companies,including surcharge and cess is30.9%/33.063%(income above 1crore and upto 10 crores)/34.608%. The MAT rates are19.055/20.3885/21.3416.

-No depreciation/exemptionunder section 10 for income frommutual funds etc.

3. New Rules for Assessment Year2016-17

i) Tax rates:

ii) Charitable Trusts:

iii) Salary:

iv) Property:

v) Business income:

Higher exemption ofRs.1600/- per month fortransport allowance.

Deduction undersection 24 higher at Rs.2/- lacs

-Disallowance under section40(a)(ia) to be 30% in place of100%.

-Ba l ance 50% add i t i ona ldepreciation allowable in case ofnew machinery utilized for lessthan 180 days in preceding year.

-Deduction under section 80JJAAal lowable for increase inworkmen by 50, compared torequirement of 100 earlier.

-Deduction 0f 15% under section32AC in case of additions tomachinery exceeding Rs.25/-crores, which machines areinstalled during the year.

-For valuation of finished goods,fixed production overheads to beallocated based on normalcapacity (ICDS II)

-Contract revenue(includingretentions) and costs to berecognized by reference to stageof completion except where thestage of completion does notexceed 25%. Applies also toservice contracts and oldcon t rac ts . Cos ts inc ludeinterest.(ICDS III AND IV)

-Spares to be capitalized if theyare for specific asset and their useis expected to be irregular. (ICDSV). The criteria for distinguishingpar ts in new Account ingStandards is ‘expected to be usedfor more than 12 months’ andcriteria for distinguishing parts inSchedule II is ‘cost is significantand life is different from life ofremaining asset’

-Foreign exchange fluctuations tobe considered of revenue natureexcept when covered by section43A relating to imported assets.(ICDS VI)

3

4

-Government grants to beaccounted as per ICDS VII

-For trader in shares andsecurities, comparison of costwith net realizable value on thedate of Balance Sheet, not to bedone indiv idual ly but foraggregate in each category(ICDS VIII)

-Borrowing costs, includingincidental costs, relating to allfixed assets need to be capitalizedalthough as per AccountingStandards these need to be andare debited to profit and lossaccount. (ICDS IX)

-Higher deduction under 80D at25000/30000

-Additional Rs.50000/- fordeposit under Pension Scheme.

vi) Deductions:

JUDICIAL DECISION ONEXCISE AND SERVICE TAX

CA. Anirudh Sonpal

I. CENVAT CREDIT/ REFUND

1.1 The word ‘include’ in the definition of‘inputs’ and ‘input services’ should begiven a wide interpretation rather thana restrictive interpretation; the word‘include’ used in statutory definitionsis generally used to enlarge themeaning of the preceding words and itis by way of extension and notrestriction.[Ramala Sahkari Chini Mills Ltd vsCCE – SC-LB]

1.2 Credit, if validly taken, cannot bedeinied at the time of utilization/refundif there was no objection to the takingof the credit; revenue authorities,without questioning the taking of thecredit, cannot directly question itsutilization or refund.[CST vs Lionbridge Technologies PvtLtd – Mumbai Cestat]

1.3 Removal of goods from control ofseller is said to have occurred whenthe property in goods is transferredunder Sale of Goods Act; hence, incase of export sales, place of removalextends upto the port of export and

credit of transpor t services isavailable upto such port of export.[CCE vs Lucas TVS Ltd – ChennaiCestat]

1.4 E x p e n s e s i n c u r r e d o n t h emembership of a business club likeEntrepreneur Organizations is an inputservice eligible for cenvat creditparticularly when such expense is forbusiness promotion and the cost ofsuch expenses is included in theassessable value of the goods and onwhich excise duty is paid.[Pam Pharmaceuticals & AlliedMachinery vs CCE – Mumbai Cestat]

1.5 Export of services is complete onlyafter receipt of consideration towardssame; hence, service exporters mayclaim refund of cenvat credit withintime-allowed under section 11B, viz.,1 year from date of receipt ofconsideration.[Infosys Technologies Ltd. vs CST –Bangalore Cestat]

1.6 Date of filing refund claim is first dateof filing of refund claim; therefore,when claim was first filed on 7-1-2011 but was returned for re-submission and was finally re-submitted with relevant documents inNovember 2011, date of filing ofrefund claim would be 7-1-2011.[Tab India Granites Pvt Ltd vs CCEST -Chennai Cestat]

2.1 Service Tax - Where assessee enteredinto system delivery agreement with acustomer to provide for a systemcomprising of a complete set ofvarious machines/equipments whichwere required to be installed andcommissioned at site of customer andoverall operation and maintenanceprocesses shall be responsibility ofcustomer, transaction qualified as atransfer of right to use goods and,consequently, be outside definition ofservice, particularly when the termsof agreement made it clear thatpossession and effecting control ofgoods (system) would be withcustomer.[SICPA India Pvt Ltd – AAR-NewDelhi]

II. TAXABILITY

2.2 Selling/supplying coffee and tea,through vending machines installed attheir customer's premises andcharging consideration at fixed rateper cup, prima facie, amounts to saleand not liable to service tax underoutdoor catering.[Perfect Vending India Pvt Ltd vsCESTAT- Madras HC]

2.3 Flying training services provided by anapproved flying training institute arenot liable to service tax, as servicesfall within meaning of 'qualificationrecognized by law'.[Ahmedabad Aviation & AeronauticsLtd. vs. CST – Ahmedabad Cestat]

2.4 Contract for designing, supplying,testing, erection and commissioningof Auto LPG Dispensing System onlumpsum turnkey basis on which VATis paid under State VAT law, amountsto 'works contract'. No service tax ispayable on composite workscontracts prior to 1-6-2007 in view ofthe decision of the HonourableSupreme Court in the case of Larsen& Toubro Ltd; hence, where clientrefuses to pay service tax, service taxalready paid by assessee by mistake,is refundable.[Vanaz Engineers Ltd vs CCE –Mumbai Cestat]

SERVICE TAX UPDATESCA. Manilal Parsiya

AMENDMENTS IN CENVAT CREDITRULES, 2004 – UNION BUDGET 2016-17

“Capital goods” - Rule 2(a):

“Exempted service” - Rule 2(e):

transportation of goods

“Inputs” - Rule 2(k):

(1) Wagonsfalling under Sub-heading 860692 havebeen explicitly mentioned as capital goods.(2) Restriction with regard to ‘theequipments and appliances used in anoffice’ has been done away with.

In thedefinition of the term ‘exempted service’under Rule 2(e), ‘services by way of

by a vessel fromcustoms station of clearance in India to aplace outside India’, has been excluded.

(1) The definition ofthe term ‘inputs’ has been amended toinclude within its scope ‘capital goods’which have a value up to ten thousand

5

rupees per piece. (2) The amendmentclarifies that goods used for the ‘pumping ofwater’ would be construed as inputs.

The scope of definition of ‘input servicesdistributor’ in Rule 2(m) of the CCR hasbeen extended to an office of an ‘outsourcedmanufacturing unit’.

The 5thproviso to Rule 3(4) provided that CENVATCredit of any duty except NCCD cannot beutilized for payment of NCCD on goodsfalling under tariff items 8517, 12 10 and8517 12 90. However, with effect fromMarch 01, 2016, the 5th proviso to Rule3(4) has been amended so as to providethat CENVAT Credit of any duty specified insub-rule (1) except NCCD cannot be utilizedfor payment of NCCD leviable under Section136 of the Finance Act, 2001 on anyproduct.

The facility of hundred per centCENVAT Credit of capital goods asavailable to small scale industrialmanufacturer having clearance withinthe threshold limit of INR 4 Crore isalso extended to the Gems andJewellery Sector. However, thethreshold limit for the Gems andJewellery Sector has been pegged atINR 12 Crore.

CENVAT Credit on jigs, fixturesmoulds and dies or tools sent to a jobworker or another manufacturerwould also be allowed where suchgoods are sent without bringing thesame to the premises of theAssessee. By the substitution of sub-rule (5) of Rule 4, this has beenexplicitly provided to avoid anyconfusion in this regard.

Order issued under Rule 4(6) allowingthe final products to be cleared fromthe premises of the job worker wouldbe valid up to 3 years as againstexisting 1 year.

Rule 4(7) provides that CENVAT Creditof Service Tax in respect of servicesprovided by way of assignment of“right to use” any natural resourcesshall be spread over the period for

“Input services distributor” – Rule 2(m):

Utilization against the payment of NationalCalamity Contingent Duty (NCCD):

Amendments in Rule 4

which the “right to use” has beenassigned under Straight Line Method.Formulae: Amount of CENVAT Creditthat shall be taken in a financial year =Service Tax paid on the chargespayable for the assignment of the rightto use / No. of Years for which therights have been assigned. Full creditavailable in case such rights arefurther assigned to another personagainst a consideration. In respect ofannual or monthly user charges, thecredit shall be allowed in the same FYin which they are paid.

Amendments in relation to reversal ofCENVAT credit under Rule 6: Rule 6has been substantially amended witha view to remove certain ambiguitiesand associated litigation in relation toapportionment of credits towardsmanufacture of exempted goods or forprovision of exempted services.

Manufacturers exclusively engaged inmanufacturing of exempted goods orservice providers who exclusivelyprovide exempted services shall notbe eligible for credit of any inputs andinput services [sub-rule 6(2)];

M a n u f a c t u r e r s e n g a g e d i nmanufacturing both exempted andnon-exempted goods or serviceproviders engagedvin providing bothexempted and non-exemptedservices, can follow any one of thefollowing options for reversal ofineligible CENVAT Credit [sub-rule6(3)]

• pay an amount equal to six percent of value of the exemptedgoods and seven per cent of valueof the exempted services.However, such payment isrestricted up to the total creditavailable with the assessee at theend of the period to which thepayment relates.

• pay an amount of ineligibleCENVAT Credit as determinedunder sub-rule (3A) ( i .e.proportionate reversal).

Banking and financial institutions can nowexercise any of the options under theRules for reversal of CENVAT Credit in

addition to option of payment of 50% of theCENVAT Credit:

No CENVAT Credit can be allowed oncapital goods used exclusively for exemptactivity for a period of two years from thedate of commercial production orprovision of services:

Reversal not required to be undertaken fors e r v i c e s p r o v i d e d b y w a y o ftransportation of goods from Indiancustoms station to outside India:

Distribution of CENVAT credit on inputservices under Rule 7:

Reversal in terms ofamended Rule 6(3) i.e. seven percent ofvalue of the exempted services orProportionate reversal under Rule 6(3A) orPay for every month an amount equal to50% of the CENVAT Credit availed on inputsand input services in the month.

Sub-rule (4) of Rule6 has been amended to provide that wherethe capital goods are used for themanufacture of exempted goods orprovision of exempted service for two yearsfrom the date of commencement ofcommercial production or provision ofservice, no CENVAT Credit shall be allowedon such capital goods.

Rule 6(7)has been amended so as to provide thatcredit taken on inputs and input servicesused in providing a service by way of“transportation of goods by a vessel fromcustoms station of clearance in India to aplace outside India” shall not be required tobe reversed by shipping lines. That theservice of transportation of goods by avessel to a place outside India is presentlynot taxable in view of Rule 10 of the PPSR,which determines the place of provision ofservice as the place of destination of thegoods. By amending Rule 2(e), services byway of transportation of goods by a vesselfrom customs station of clearance in India toa place outside India has been excludedfrom the definition of ‘exempted service’.Thus, the amendment in sub-Rule (7)coup led wi th the cor respond ingamendment in the definition of exemptedservice is aimed at allowing credit of eligibleinputs, input services and capital goods forproviding the said service.

With a view toimprove credit flows between differentmanufacturing / service locations, Rule 7dealing with distribution of credit on inputservices by an Input Service Distributor is

6

being completely rewritten by way ofsubstitution of the existing Rule 7 of theCCR.

In terms of clause (g) of Rule 7, theprovisions of Rule 6 of the CCR relating toreversal of credit in respect of inputs andinput services used in manufacture ofexempted goods or for provision ofexempted services, shall not apply to theISD. The amendment seeks to dispel theconfusion by unambiguously stating thatRule 6 is not to be applied by an ISD whiledistributing the credit. It is the unit to whomthe credit has been distributed, is to applyRule 6 upon receiving the distributed credit.

Rule7B has been inserted in the CCR to enablemanufacturers with multiple manufacturingunits to avail the CENVAT Credit on the basisof Excise invoice issued by the warehousestoring raw material, packing material etc.of the said manufacturer. Procedure asapplicable to a first stage dealer or a secondstage dealer would apply, mutatis mutandis,to such a warehouse of the manufacturer.

Earlier, only the invoice issued by a‘manufacturer’ for removal of inputs orcapital goods as such was prescribed asvalid document for availment of credit.

The existing Rule 9A, whichrequired furnishing declaration by 30th Aprilof each financial year by a manufacturer,has been amended. As per the amendedRule 9A, a manufacturer of final products orprovider of output services, shall berequired to submit to the Superintendent ofCentral Excise, an annual return in theprescribed format for each financial year, bythe 30th day of November of the succeedingyear.

The time limit for filing of application forrefund of Cenvat Credit in Form A of underRule 5 of CCR has been amended videNotification No. 14 / 2016 – C.E. (N.T) dt.March 01, 2016. In case of a ‘manufacturer’

Reversal of CENVAT credit under Rule 6 tonot apply to the input service distributor:

Introduction of input service distributionmechanism for goods vide Rule 7b:

Rule 9(1)(a)(i) has been amended,whereby credit can now be availed basisinvoice issued by a ‘Service Provider’ forclearance of inputs or capital goods assuch:

Annual return:

Refund of CENVAT credit under Rule 5:

, the time limit to file a refund claim will be asper the period specified in Section 11B ofthe CE Act, 1944 (1 of 1944); In case of‘services provider’, the time limit will be oneyear from the date of Receipt of payment inconvertible foreign exchange where theprovision of services has been completeprior to receipt of payment; or The date ofissue of invoice, where payment for theservice has been received in advance priorto the date of issue to invoice.

The Ministry of Corporate Affairs has notifiedSection 135 and Schedule VII of theCompanies Act, 2013 as well as theprovisions of the Companies (CorporateSocial Responsibility Policy) Rules, 2014 tocome into effect from April 1, 2014. Underthese provisions every company, privatelimited or public limited, which either has a networth of Rs 500 crore or a turnover of Rs1,000 crore or net profit of Rs 5 crore, needsto spend at least 2% of its average net profit forthe immediately preceding three financialyears on corporate social responsibilityactivities.

On 12th January, 2016, in continuation toMinistry's General Circular dated 18th June,2014 and 17th September, 2014, a set ofFAQs along with response of the Ministry isp rov ided fo r f ac i l i t a t i ng e f f ec t i veimplementation of CSR. The salient features ofthose FAQs are as under.

• CSR provisions of the Companies Act,2013 is applicable to every companyregistered under the Companies Act,2013 and any other previousCompanies laws meeting withqualifying criteria mentioned in the firstparagraph hereinabove. Section 135stipulates ‘Every Company…’ hencethere is no specific exemption to anycompany including Section 8 company.

• CSR rules are applicable to allcompanies meeting with qualifyingcriteria during any of the three precedingfinancial years.

• Computation of net profit for section135 is as per section 198 of theCompanies Act, 2013 which is primarilyPROFIT BEFORE TAX (PBT).

• The amount spent by a companytowards CSR cannot be claimed as

FAQS WITH REGARD TO CSRCA. Hemant Bhatt

business expenditure.

• No specific tax exemption has beenextended to expenditure incurred onCSR, however, spending on severalactivities like contributions to PrimeMinister's Relief Fund, scientificresearch, rural development projects,skill development projects, agriculturalextension projects, etc., which findplace in Schedule VII, already enjoyexemptions under different sections ofthe Income Tax Act, 1961.

• Activities undertaken in pursuance ofthe CSR policy must be relatable toSchedule VII of the Companies Act,2013 which are broad-based and areintended to cover a wide range ofactivities. The General Circular alsoprovides an illustrative list of activitiesthat can be covered under CSR. It is forthe Board of the company to take a callon this.

• However, there are certain activitieswhich cannot be considered as CSRactivities. These activities are:

a. The CSR projects or programs oractivities that benefit only theemployees of the company andtheir families.

b. One-off events such asmarathons/ awards/ charitablecontribution / advertisement /sponsorships of TV programmesetc.

c. Expenses incurred by companiesfor the fulfillment of any other Act/Statute of regulations such asLabour Laws, Land AcquisitionAct, 2013, Apprentice Act, 1961etc.

d. Contribution of any amount directlyor indirectly to any political party.

e. Activities under taken by thecompany in pursuance of itsnormal course of business.

f. The project or programmes oractivities undertaken outside India.

• Contribution to Corpus of a Trust/Society/ Section 8 companies etc. willqualify as CSR expenditure as long as :

a. the Trust/ Society/ Section 8company etc. is created exclusivelyfor undertaking CSR activities or

b. where the corpus is createdexclusively for a purpose directly

7

youngest VP’s in Max. She loved her work andwas satisfied with her career in Max. But her“life” element in the work-life balance alwaysremained problematic. In spite of liberal flexi-time, understanding husband and a verysympathetic boss, Ambika was finding itdifficult to keep the famous and much sought-after “balance”. Her husband, though veryconsiderate and caring, is not of much help,because his nature of work demands travellingand he can’t always be at home to help her. SoAmbika’s family life is not happy and in herheart there was an undercurrent of guilt thatshe was not able to pay much attention to herailing mother or bestow the much neededmaternal care to her child. Working at homewas not very appealing to Ambika, becauseshe loved the direct interaction with people,sharing of ideas and the rush of energy she feltin this interchange.

As Ambika was about to leave her plush officeafter a very busy day, her mobile rang; “HiAmbi”, uttered the very familiar voice ofRenuka, her classmate at IIM and her closefriend. “Hi, Renu”, said Ambika “I feel good tohear your happy voice”.

“Where are you now? In home or office” askedRenu. Ambika said with a sad sigh in her voice“just about to leave the office”. Renu said “Yousound unhappy and tired, Ambi”.

Renuka also joined a multinational retail chain,married to a flourishing entrepreneur andpursued a successful career as a HRexecutive. But when she became a mother,she quit her job. Ambika recalled her visits toRenuka’s house, how happy she was with hercheerful and jovial husband, her affectionatein-laws and her chubby and pretty child.

“Hi, Ambi, are you still there on the line”,Renuka’s voice interrupted her reverie. “YesRenu” said Ambika “I envy you. I wasremembering my visits to your home and howhappy you were within your beautiful family”.

“Many of our classmates envy yourphenomenal success in your career”, saidRenuka “I think there are very few female VPsat your age in global companies”.

Ambika was undoubtedly much moreambitious and aggressive than Renu. Unlikemany women executives, she was not soft.She pushed hard for her success. And thisflame of ambition is still strong in her. It waskindled into a fire when her boss Ron Felix,president and head of Max India told herrecently that he was likely to be shifted to NewYork in a few months and vaguely hinted that

relatable to a subject covered inSchedule VII of the Act.

• Board of Directors of the company shall,af ter tak ing into account therecommendations of CSR Committee,approve the CSR Policy for thecompany and disclose contents of suchpolicy in its report and the same shall bedisplayed on the company's website, ifany.

• The Board's Report of a company shallinclude an annua! report on CSRcontaining particulars specified inAnnexure. In case of a foreign company,the balance sheet filed under sub-clause (b) of sub¬section (1) ofsection 381 shall contain an Annexureregarding report on CSR.

• Section 135 prescribes "....shall ensurethat company spends....".The companyhas to spend the amount hencecontribution in kind cannot bemonetized to be shown as CSRexpenditure. Similarly monetization ofpro bono services of employees wouldnot be counted towards CSRexpenditure.

• Any excess amount spent i.e. more than2% as specified in Section 135 cannotbe carried forward to the subsequentyears and adjusted against that year'sCSR.

• The Board is free to decide whether anyunspent amount from out of theminimum required CSR expenditure isto be carried forward to the next year.However, the carried forward amountshould be over and above the next year'sCSR allocation equivalent to at least 2%of the average net profit of the companyof the immediately preceding threeyears.

• The main thrust and spirit of the law isnot to monitor but to generateconducive environment for enabling thecorporates to conduct themselves in asocially responsible manner, whilec o n t r i b u t i n g t o w a r d s h u m a ndevelopment goals of the country.Government has no role to play inmonitoring implementation of CSR bycompanies or in engaging externalexperts for monitoring the quality andefficacy of CSR expenditure ofcompanies.

• The objective of this provision is indeed

to involve the corporates in dischargingtheir social responsibility with theirinnovative ideas and management skillsand with greater efficiency and betteroutcomes. Therefore, CSR should notbe interpreted as a source of financingthe resource gaps in GovernmentScheme.

• All CSR programmes / projects shouldbe approved by the Boards on therecommendations of their CSRCommittees. Changes, if any, in theprogramme / project should also beundertaken only with the approval of theCommittee/Board. Government has norole to play in this regard.

• Companies with small CSR funds cancombine their CSR programs with othersimilar companies by way of poolingtheir CSR resources.

LIFE LESSONSCA. Bimal R. Bhatt

Work and Life: Balance or Choice

The Case:

Is it possible to perfectly balance work and lifeor do we have to choose between them? Thisarticle examines this question in the form of acase study, followed by a commentary in thelight of integral management.

Ambika Rajesh was sad because today alsoshe can’t go home early to spend more timewith Rahul, her five year old son. This washappening for the past one week and she wasfailing repeatedly to keep her promise to takeher son to the game park. Ambika is the VicePresident (Customer relationship) at the Indiaoffice of the Global IT firm, Max International.Her husband, a senior consultant in a leadingengineering consultancy firm, is out on aforeign assignment. Her mother is sick in bedwith rheumatic complaint. She has to put bothher son and her mother under the care of ahousemaid. And Ambika was not happy withthat woman.

Ambika is not only ambitious and competentbut also a loyal executive in Max. Unlike manyof her colleagues and classmates, whoconstantly switched jobs almost every two orthree years, Ambika remained in Max since theday she joined the company as a managementtrainee, fresh from IIM Ahmedabad, some tenyears back. Her ambition and drive,competence and loyalty, earned her rapidgrowth in Max. At 33, Ambika was one of the

8

are paid to win, with shareholders cheeringthem on – those spots usually go to the peoplewith the most availability and commitment.”

On the other hand, if you are ambitious likeAmbika, like the corporate game of power andwealth achievement and success, and verymuch want the top post, then you have tosacrifice some of the joy and fulfillment whichcomes from family and children and bear theconsequences of a lack of sufficient attentionto this part of life. “It’s a hard choice” saysAnjali Bhansal, MD, Spencer-Stuard India.“You will never get enough time with the familyas you’d like. That’s the reality of everycommitted professional”.

However we need not take these present factsof life as something permanent andunchangeable. Our human organism, bothindividually and collectively, is an evolvingentity capable of constant enhancement of ourpotentialities through education, self-development, experience, research, insight,sharing, networking and learning from others.The corporate world should consciouslyexplore all these possibilities and strivetowards a progressive and increasingharmony, integration and balance betweenwork and life. Here are some measures whichcan lead to such a greater balance.

1. Learning from role models like womenCEOs or senior executives who are able toachieve an effective balance betweenwork and life. For example, SwarupaSanyal, Head of Strategy and CorporateInitiatives at Genpact, comes home everyday at 7 pm and doesn’t take any callsuntil 8:30pm, when both her kids go tobed. She spends another hour with thechildren in the morning. If work calls, shegoes to office after 8:30 pm.

2. Creating forums for sharing experiences,insights and best practices on work-lifebalance.

3. Making work-life balance into a corevalue of corporate world and paying asmuch management attention to it as othercorporate values like productivity orcustomer satisfaction, which meansdoing much more than giving flexi-time.Managers and team-leaders must make amore conscious effort to resolve work-life problems of the employees undertheir care through collective dialogue anddiscussion. And the management shouldprovide active support to employees inthe form of education, training, guidelines

and processes which help them inachieving a greater balance betweenwork and life.

4. Inner harmony and balance is thefoundation of outer harmony andbalance. When an individual makes aconscious effor t to integrate andharmonize the various parts of his ownbeing, he gets the insight to achieve asimilar harmony in his outer life. Everyemployee has to be awakened to thisprinciple and provided with right-educational inputs for building harmonyin his or her own being.

(Source: Fourth Dimension inc.)

she can hope for his job. Ambika felt stronglythat she deserved the top job. In these monthsshe has to work extra hard and stay ahead ofother contenders for the post to get thecoveted job.

“Hi Ambika, are you again off with somereveries of the past” said Renu. “Oh sorryRenu, again my mind went astray. Renu, I havea question. Do you think it is possible toachieve happiness in home and success atwork with a perfect balance?” There was along pause. “Hi, Renu, now it is my turn to say,are you still there”.

“I am thinking Ambi”, said Renu “Personally Ifeel it is not possible Ambi. I tried for sometime but I couldn’t. I think you have to make achoice”.

Renuka has made her choice, her personalchoice. We have to make a choice based onour priorities and values.

If you are a corporate woman like Renuka, whovalues motherhood and happiness at homemore than success in work-place, then youhave to a certain extent sacrifice work-placesuccess for the sake of the greater fulfillmentin motherhood and at home. This doesn’tmean you have to quit the job like Renuka, butyou can’t expect to reach the top of thecorporate ladder. In fact, this is one of thereasons why there are not many women at thetop of the corporate hierarchy. As Jack Welch,former CEO of GEC rightly points out,

“There are very few women CEOs and adisproportionately small number of womensenior executives because women havebabies. And despite what some earnest butmisguided social pundits might tell you, thatmatters. Because when professional womendecide to have children, they often decide tocut back their hours at work or travel less.Some women change jobs entirely, to staffpositions with more flexibility but much lowervisibility. Still more women actually leave theworkplace entirely. In fact, a 2002 surveyconducted by Harvard Business School of itsalumnae from the classes of 1981, 1986, and1991 showed that 62 percent had left theprofessional world… Is that bad? We don’tthink so. It’s life. Every choice has aconsequence. As a working mother, if youdecide to take time off, work fewer hours, ortravel less, you gain something ofimmeasurable value: more time with yourchildren. You also give up something: a spoton the fast track. In business – where bosses

Commentary:

FAQS ON PREFACE OF ICDSCA. Prashant Upadhyay

Preamble & Implications of Standards:

1) The standards will apply to whichtypes of income?

CBDT has notified 10 Income Disclosure &Tax Accounting Standards vide NotificationNo. SO 892 ( E ), dated 31st March 2015under the statutory roof of Section 145(2) ofthe principal Act. Although the standardsdoes not compose a specific adjustment toadd a particular receipt or accrual as acharging section in relevant chapter ofincome or to add a specific expenditure as adisallowance under a specific chapter, it vestsa discretionary power to an Assessing Officerto reject books of accounts of the assesseunder Section 145(3) of the Act and proceedto make best judgement assessment undersection 144 of the act. The standards areapplicable for computation of incomechargeable to tax and not for the purpose ofmaintenance of books of accounts.

The standards will apply to incomechargeable under the head “Profits &Gains of Business or Profession” or“Income from Other sources”. Hence,the standard will not apply to:

a) Income from Salary: An edifice oftaxability of an amount receivedand as evident from the flurries ofjudicial pronouncements, therelationship of employer-employeeis a precondition for taxability ofincome as Salary. The honourableApex Court in series of decisionslike Lakshminarayan Ram Gopal &Sons Ltd v. Govt of Hyderabad(1954) 25 ITR 449 (SC), RamPrashad v. CIT (1972) 86 ITR 122

9

(SC), Dhrangadhra ChemicalsWorks Ltd v. State of Saurashtra(1957) SCR 152, Piyare LalAdishwar Lal v. CIT (1960) 40 ITR17 (SC) has laid down in depth lawas to emp loye r-emp loyeerelationship. Salary income ofassesse (Including advance orarrear) will be taxed on receipt oraccrual basis whichever is earlierin terms with Section 15 of the Act.However, income in nature ofremuneration from firm will begoverned by ICDS since will betaxable under the head “Profits &Gains of Business or Profession”.

Further, below mentioned are thetype of certain payments, whichmay have to be classified withcaution, due to relevant judicialpronouncements or application ofother sections or departmentalcirculars:

i) Payment of remuneration orfees or commission payable todirector under clause (ba) ofsub-section (1) of section194J of the act may not betaxed as income from Salary.In case of Shanti Devi (1993)199 ITR 800 (Ori) it has beenheld that where the personholds the office of a director ofa company, remuneration byvirtue of that office does notbring about the relationship ofmaster & servant. Hence, feespaid to a director, independentof any special contract ofservice, would have to be dealtwith under section 56 and notunder section 15, as againstremuneration received asManaging Director or Managerimporting the analogy of apexcourt decision of Ram Prasadv. CIT (1972) 86 ITR 122 (SC).

ii) Salary of MLA & MP to betaxed under Income from Othersources – CIT v. Shiv CharanMathur (2008) 306 ITR 126(Raj), Circular Letter : F. No.40/29/67 – IT (A-I) dated22.05.1967. Contrary Ruling:Lalu Prasad v. CIT (2009) 316ITR 186 (Patna),

iii) Salary received by judges ofHigh Court / Supreme Court tobe taxed as Salary – DeokiNandan Agarwala (Justice) v.UOI (1999) 237 ITR 872 (SC)

iv) Honorarium received byvisiting doctors to be taxed asprofessional fees – ITO v.Ranjan R Mehta (Dr) (1989) 33TTJ 398 (Ahd)

Contrary ruling – Stephen’sHospital v. DCIT (2006) 6 SOT60 (Del)

v) Where honorarium was paid topart-time teachers was held tobe salary – Max MeullerBhavan, In re(2004) 268 ITR31 (AAR)

vi) E m p l o y m e n t h a s b e e nunderstood widely for thepurposes of taxation, notnecessarily requiring master-servant relationship in everycase as was found in the caseof an adviser – CBDT v. AdityaV Birla 170 ITR 137 (SC)

b) Income from House Property:There are certain types of incomeswhich may be in essence businessincome, however owing to itsapparent resemblance satisfyingconditions of section 22, may betreated as business incomeleading to application of ICDS:

i) Clubs, Guest House, Hotelsetc: The customers who enjoythe facilities not as tenants butas customers / memberscannot be treated as tenantsduring the stay – CIT v.Darjeeling Club Ltd (1985) 153ITR 676 (Cal), Manohar Singhv. CIT (1965) 58 ITR 592(Punj), National Sports Club ofIndia (No. 1) (1998) 230 ITR777 (Del)

ii) Rental income of Builders /rental income of Unsold units–Rentals received by buildersfrom buildings or units isIncome from House Property &not Business Income – CIT v.A n s a l H o u s i n g a n dConstruction Ltd (2014) 220Taxman 157 (Del), Azimganj

Estate P Ltd v. CIT (2012) 206Taxman (Cal), Mangla Homes(P) Ltd v. ITO (2010) 215Taxation 511 (Bom), New DelhiHotels Ltd. v. ACIT (2014) 360ITR 187 (De l ) , C IT v.Chungadas & Co. (1965) 55ITR 17 (SC), A.R. Complex v.ITO (2008) 167 Taxman 46(Mad), National Storage P Ltd(1963) 48 ITR 577 (Bom), CITv. Bhoopalam CommercialComplex & Industries P Ltd(2003) 262 ITR 517 (Kar), CITv Sane & Doshi Enterprises(2015) 58 taxmann.com 111(Bom)

Contra – If letting is part ofbusiness operations then thesame should be treated asbusiness income – CIT v. NehaBuilders P Ltd (2007) 207 CTR231 (Guj), Nirmala Sahu (Late)v. CIT (2014) 98 DTR 55 (All),Karanpura Development Co.Ltd v. CIT (1962) 44 ITR 362(SC), Chennai Properties &Investments Ltd v. CIT (2015)56 taxmann.com 456 (SC),Sheetal Khurana Foods (P) Ltdv. ITAT (2011) 200 Taxman 33(Mag), CIT v. Halai NemonAssociation (2000) 243 ITR439 (Mad), CIT v. Delhi Cloth &General Mills Co. Ltd (1966)59 ITR 152 (Punj.), CIT v.Karnataka State WarehousingCorpora t ion (2014) 44taxmann.com 205 (Kar), CIT v.Information technology parkLtd (2014) 46 taxmann.com239 (Kar), Universal Plast Ltdv. CIT (1999) 237 ITR 454 (SC)

iii) Equipment along with letting ofbuilding: Income from ancillaryservices is assessable asIncome from Other Source orBusiness income– CIT v.Model Mfg. Co. (P) Ltd (1989)175 ITR 374 (Cal), A.R.Complex v. ITO (2008) 167Taxman 46 (Mad), CIT v.Sarabhai (P) Ltd (2003) 263ITR 197 (Guj).

Inseparable letting is taxableunder section 56 or 28 - Sultan

10

Important Due Dates for May, 2016 CA. Abhijit J. Kotecha

DATES COMPLIANCE PERIOD

April'16

April'16

April'16

06.05.16 Excise Duty E-Payment (for Non SSI and EOU) April'16

Service Tax E-payment - Companies, Co.op.societies, Trust etc.

(othan than Individual, Proprietor / Partnership Firm / LLP)

07.05.16 TDS Payment / E-payment and Declaration received for 'No TDS'

- Form 15G / H and 'No TCS' copies to be submitted / e-filed

10.05.16 Excise Returns - Monthly Return by Large Units / Return by EOU / Monthly return of receipt & consumption

of each of Principal Inputs i.e. ER - 1, ER - 2 and ER - 6.

12.05.16 ESIC Return - Form - 5 Oct.’15 – March’16

14.05.16 VAT / CST E-return - (For VAT or CST > Rs. 5,000/-) March' 16, Jan. 16 to Mar. '16.

15.05.16 Payment of Professional Tax and Provident Fund April' 16

Professional Tax and Provident fund return (for employees joining & leaving service under PF Act) April' 16

TDS / TCS e-return – Quarterly Qtr. 4 (Fin. Yr.: 2015-16)

16.05.16 Excise Duty E-Payment (for SSI) April'16

21.05.16 ESIC Payment April' 16

22.05.16 VAT / CST payment / E-payment April'16

25.05.16 PF Return April' 16

30.05.16 TDS Certificate issuance – Form 16A (for other than Salary cases) Qtr. 4 (Fin. Yr.: 2015-16)

Audited Yearly Financial Results in case of listed companies - filing with Stock Exchange Fin. Yr.: 2015-16

31.05.16 TDS Certificate issuance – Form – 16 (Salary cases) Fin. Yr.: 2015-16

Bros. (P) Ltd v. CIT (1964) 51ITR 353 (SC), Karnan iProperties Ltd v. CIT (1971) 82ITR 547 (SC), M K Dar v. CIT(1982) 138 ITR 801 (All), CIT v.D L Kanhere (1973) 92 ITR 535(Bom), Black Pearl Hotels (P)Ltd v. DCIT (2015) 54taxmann.com 20 (Kar), CIT v.Velankani Information Systems(P) Ltd (2013) 218 Taxman 88(Kar)

Contra – Shambhu Investment(P) Ltd v. CIT (2003) 129Taxman 70 (SC), J K Investors(Bom) Ltd (2012) 211 Taxman383 (Bom), Hotel Arti Delux PLtd v. ACIT (2014) 50taxman.com (All)

c) Income from Capital Gains: Theremay be typical situations of sale ofassets under litigation whether totreat them as capital assets orcurrent assets like shares, land,Jewellery etc and conclusionshould be arrived after taking intoc o n s i d e r a t i o n j u d i c i a lpronouncements like – R. Dalmia v.CIT (1982) 137 ITR 665 (Del), P.MMohammed Meerakhan v. CIT(1969) SC, Khan Bahadur AhmedAlladin & Sons v. CIT (1968) 68 ITR

573 (SC), Janki Ram Bahadur Ramv. CIT (1965) 57 ITR 21 (SC), GVenkataswami Naidu & Co. v. CIT(1959) 35 ITR 594 (SC),PKN Co.Ltd (1966) 60 ITR 65 (SC), Raja J.Rameshwar Rao v. CIT (1961) 42ITR 179 (SC), Raja BahadurVisheshwara Singh v. CIT (1961)41 ITR 685 (SC), Raja BahadurKamakhya Narain Singh v. CIT(1970) 77 ITR 253 (SC),Ramanarain Sons P Ltd v. CIT(1961) 41 ITR 534 (SC),Rameshwar Prasad Bagla v. CIT(1973) 87 ITR 421 (SC), CIT v.Sugar Dealers (1975) 100 ITR 424(All), Laxmi Co. v. CIT (1961) 43ITR 415 (All), Tushar Tanna v. CIT(2006) 153 Taxman 345 (Bom)

Since the first proviso to section115JB(1) provides that while preparingthe annual accounts including profitand loss account, the accountingstandards (not ICDS) adopted forpreparing such accounts includingprofit and loss account shall be thesame as have been adopted for thepurpose of preparing such accountsincluding profit and loss and laid before

2) Whether adjustments covered byICDS would apply to computation ofincome as per MAT provisions?

SPIRITUAL CORNERCA. Jigar Thakkar

Character : A Paramount Asset

Character is man's greatest strength andwealth. An immoral person would beconsidered poor in every sense, even if he isowner of the endless assets of materialworld. On the other hand even the poor andimpoverished in society always keeps hishead proudly high with good character, andhas a shine in his eyes and luster on theface. On the contrary, a characterless mancannot hide his fraudulent personality underthe velvet of cleverness.

None of the world's outstanding achieverswho is not a fully virtuous person. Thepower to lead and change the mass orsociety is derived from the character only.Whatever development of human societyhas occurred till date, or the growth anddevelopment will happen in future, is due tothe virtuous and benevolent people who aredoing their duty towards society.

the company at its annual generalmeeting. In view of the first proviso tosection 115JB(1), it is crystal clear thatfor the MAT purposes, ICDS shall notapply, since adjustments on account ofICDS is not covered within 13adjustments provided therein.

Memory LaneLecture Meeting on RecentIssues in International Taxationon 02 04 2016

Tax clinic - Series IVon 19 04 2016

Workshop on Recent Issues inInput Credit & Works Contractunder VAT on 21 04 2016

Beginners Workshop on FEMAon 23 04 2016

Lecture Meeting DeemingFiction on 09 04 2016

Members' Meet with Hon'ble President & Vice-President of ICAI & Foundation stone laying of ICAI Circle on 09 04 2016

Public Program on Start-Ups on 24 04 2016

Lecture Meeting on ICDSon 09 04 2016

Beginners Workshop on FEMAon 16 04 2016

11

CA. Nihar Jambusaria

CA. Manish G Shah & CA. Narendra Hindocha

Adv. Nishant Shukla

CA. Natwar Tharkar

CA. Abhijit Kelkar CA. G. B. Modi CA. Pratik Singhi

CA. Naveen Khariwal CA. Dhinal Shah CA. Manoj Shah

Lecture Meeting on Merge2Emerge -

Strategies for Merging & Networking

of CA firms on 23 04 2016

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Meeting on Statutory Compliancesunder the companies Act, 2013on 14 04 2016

Meeting on Real Estate (Regulationand Development) Act, 2016on 26 04 2016

CS. J. J. Gandhi CA. Mukund Bakshi

P R O U D M O M E N T S

Congratulation for being appointed as

of

and Special Invitee to

of

(FGI), Vadodara

Director Container Corporation of India

Managing Committee Federation of

Gujarat IndustriesCA. Sanjeev Shah

CA. Gaurang Parikh

Congratulation

for being appointed as

for the year 2015-16 of ICAI

Co-opted member of Economic,

Commercial Laws and WTO

12