(set up by an act of parliament) ahmedabad branch of wirc...

The Institute of Chartered Accountants of India(Set up by an Act of Parliament)

AHMEDABAD BRANCH OF WIRC OF ICAI

Dear Colleagues,

It is undoubtedly a great honour for me to be blessed with a unique opportunity of serving the members and students as 49th Chairman of Ahmedabad Branch of WIRC of ICAI. I am thankful to my Committee Members, Past Chairmen, supporters and well wishers for their immense support, faith and confidence in me.I accept it with a deep sense of professional responsibility and commitment.

We have conceptualized and launched, a theme and logo which shall be guiding us for all our acts, behaviors and attitude for the year 2017-18 :

~ Doing Unique activities for enhancing Knowledge & Opportunities

~ Be different to change with changing requirements in our profession – the GST, Ind AS, ICDS, Forensic, and still more

~ Do unparalleled, best in everything we do, striving for raising the bar of our profession to an unparallel levels and for its status and prestige.

During the year 2017-18, new opportunities in the field of Goods and Service Tax, Income Computation & Disclosure Standards and Indian Accounting Standards are knocking the door. The endeavor will be to increase capacity building of members and make them ready to grab the opportunities in the profession.

The month of February has been month of achievement. Ahmedabad Branch of WIRC of ICAI has received “Best Branch Award” at national level. I would like to thank immediate past Chairman of Ahmedabad Branch of WIRC of ICAI, CA. Vikash Jain for the significant contribution in branch activities during the year 2016-17. It’s also been pride privilege that Ahmedabad Branch of WICASA has received Best Students Association of WIRC award for my tenure as Chairman of Ahmedabad Branch of WICASA.

As a mark of public image and brand building of ICAI, CA Circle was built near IDBI Bank, off C. G. Road and inaugurated by President of ICAI, CA. M. Devaraja Reddy.

On the occasion of the Union Budget, we also had the opportunity to hear from the learned and renowned faculties. Dr. CA. Girish Ahuja and Shri Saurabh Soparkar clarified on technical aspects of Finance Bill 2017, which were very well received by more than 2,000 members at “Karnavati Club Lawn”. CA. Yamal Vyas analyzed impact of Finance Bill 2017 on capital market.

ICE : Innovate ~ Change ~ Excel

I – Innovate

C – Change

E – Excel

Chairman’s Message

Editorial

Action Plan

Sub-Committees

2 5What’s

inside13

MEMBERS

CA. Dhinal Shah, CCM98250 29950CA. Purushottam Khandelwal, RCM98250 20844CA. Aniket Talati, Secretary, WIRC98255 51448 CA. Priyam R. Shah, RCM98240 96112

EX. OFFICIO MEMBERS

CHAIRMAN

90999 21163VICE CHAIRMAN

99789 42299SECRETARY

99744 77447TREASURER

89050 30507

CA. Chintan Patel

CA. Harit Dhariwal

CA. Ganesh Nadar

CA. Fenil Shah

CHAIRMAN : CA. Harit DhariwalCO-CHAIRMAN : CA. CONVENER : CA.

Sandesh MundraNimesh Hariya

CA. Vikash JainCA. Nirav ChoksiCA. Bishan ShahCA. Rajiv Ravani

CA. CA. Vivek AgarwalCA. Dishank ShahCA. Rushabh ShahCA. Nimesh BhavsarCA. Shaleen PatniCA. Mohit TibrewalCA. Urvashi JindalCA. Nilay ShahCA. Manisha ShahCA. Dinesh ShahCA. Sagar Shah

Rohit Maloo

OFFICE BEARERS

NEWSLETTER COMMITTEE

MEMBERS

Appreciation Corner

Team Ahmedabad 3 6

Quick Connect 8

Vat Updates 9 14Notifications

Photo Gallery4

Accounting & Company Law Updates 11

Know Your Dates 12 15

contd....2

New Office Bearers

7Information Technology Updates

Direct Tax Updates 10

Dear Members,

This year the chairman of the branch has given me the responsibility of the Newsletter committee. I would like to assure you that our committee would put all efforts to ensure that the monthly newsletter is interesting, meaningful and a value add to each one of you. As the theme for this year

, we will have lot many innovations and changes in the newsletter which am sure would help you excel in your area of practice. We have added a few new columns like due date calendar, quick connect wherein we would be sharing emerging areas of practice and an

achievements corner. With the objective of “ ” and installing “”, we have planned a lot many interesting additions to the newsletter, which you will find in

the coming month' issues.

I would like to take this opportunity to sincerely thank all the contributors for sending the updates and sparing their precious time for the cause of the profession. In order to make the newsletter more resourceful, we need your support by way of contribution of updates, useful suggestions, etc. I would request you to send your contributions on the topics of Direct & Indirect taxes, Corporate Law, Information technology, Indian & World economy and other interesting topics. Kindly email your contributions, achievements etc. on The editorial team will publish the best contribution at its own discretion. I extend my sincere gratitude to the Editorial team for their hard work to publish this newsletter in time.

Happy Reading!

Chairman, Newsletter Committee

ICE : Innovate, Change and Excel

sharing knowledge creativity with commitment

CA. Harit Dhariwal

[email protected].

Editorial

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learning & unlearning of topics and techniques. Post Qualification Diploma in International Taxation and Information Information Systems Audit Practical Training (PT) were conducted during the month.

An innovative programme of Live Play on Scrutiny Assessment Proceedings was organized by ICAI members which received overwhelming response from our Members and over 200 members attended the seminar. Lecture meeting on how to respond to notices received for cash deposits was attended by 600 plus members.

On this opportunity I extend my warm wishes to all members on the occasion of Holi.May this festival of colours brings happiness and joy to your life.

Sincerely Yours,

(CHAIRMAN)CA. Chintan Patel

CA. Chintan PatelChairman

EX-OFFICIO

Office Bearers2017-18

CA. Ganesh NadarSecretary

CA. Fenil ShahTreasurer

CA. Harit DhariwalVice Chairman

CA. Vikash Jain CA. Nirav Choksi

MANAGING COMMITTEE MEMBERS

CA. Rajiv Ravani CA. Bishan Shah

CA. Dhinal ShahCCM

CA. Purushottam Khandelwal RCM

CA. Priyam ShahRCM

CA. Aniket TalatiSecretary, WIRC 03


(c) Infrastructure, Brand Building and other activities

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Engaging with the Regulators

Taking career counselling to newer heights, engaging the young minds

Transparent Vendor management

Social activities like cyclothon, tree plantation, blood donation, old age home visit and lot more

Increased presence in social media

Yes, connecting with each one of you is our dream and if you have any suggestions / feedback kindly call or write to us at [email protected].

I – Innovate

C – Change

E – Excel

~ Doing Unique activities for enhancing Knowledge & Opportunities

~ Be different to change with changing requirements in our profession – the GST, Ind AS, ICDS, Forensic, and still more

~ Do unparalleled, best in everything we do, striving for raising the bar of our profession to an unparallel levels and for its status and prestige.

Dear Members,

With great zeal and determination to do best for our Fraternity, we as trustee and representative of all members and students of Ahmedabad Branch will leave no stone unturned in ensuring to fulfill our duties. It's a monumental moment of Professional Honor to us but accepted it with a deep sense of professional responsibility and commitment.

The Vision and Mission which we have oath to carry for next 360 Days along with all members of our Managing Committee is being shared with our Fraternity.

We have conceptualized and launched, shared on our branch website, a theme and logo which shall be guiding us for all our acts, behaviors and attitude is ICE : Innovate ~ Change ~ Excel.

Ensuring to have a NEW TOMORROW !

(A) MembersŸ

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Mega / National conference atleast one each month Capacity building of members with quick and latest updates backed by workshops/seminarsArranging Professional Courses of new opportunities with best of class study environment Health is Wealth : Doing Enviable programs on Health Management, RRC, Culture, Talent, Music, Sports, Get to Gathers and the like

Best of the Best SpeakersCapitalise on large strength of Ahmedabad Branch members to get economic advantageCreating networking opportunities

(B) StudentsŸ

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Improved facilities for StudentsHassle free query resolution

More Responsive behavior from all Branch Administrative StaffFocus on practical aspects with regular Industrial training

CA. Chintan Patel

ACTION PLAN2017-2018


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CA. Nilesh VikamseyPresident, ICAI, 2017-18

A Person of high integrity and technical expertise, CA. Nilesh shivaji Vikamsey has been elected as the president of the Institute of Chartered Accountants of India(ICAI) by its 23rd Council.

Possessing more than 30 years of impeccableprofessional standing, he is widely commended and credited for his key role in student upliftactivities and conceptulisation and devising of a new futuristic CA Curriculm.He has served as Chairman of Board of Studies, Finacial Reporting Review Board, Research Committee and Expert Advisory committee. He has also been noted for his contribution as Vice Chairman of Corporate Laws and Corporate Governance Committee, Committee on Accounting Standards for Local Bodies, Committee on Banking Insurance and Pension, Committee on Information Technology and Board of Studies in the past.

CA. Naveen N.D .GuptaVice President, ICAI, 2017-18

CA. Naveen N. D. Gupta is the new Vice President of The Institute of Chartered Accountants of the India. A resident of New Delhi, CA. Naveen N. D. Gupta is an all India Rank Holder and member of the ICAI

since1996.He has served the ICAI as Chairman of Various committees including committees on Direct Taxes, Public Relations, Economic, Commercial Laws & WTO, Peer Review Board and many more.He is credited for his role in making the Income Disclosure Scheme, 2016 a success, in co-ordination with the Government of India which was acknowledged by the Finance Minister through his tweet.He steered the drafting of IFRS compliant Schedule III to the Companies Act,2013 and is also credited for initiating and starting two Certificate Courses on “Intellectual Property Rights”and “anti Money Laundering Laws” for ICAI.

Office Bearersof Ahmedabad Branch of WIRC of ICAI

CA. Chintan PatelCA. Harit DhariwalCA. Ganesh NadarCA. Fenil Shah

, Chairman, Vice Chairman

, Secretary ,Treasurer


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Sub-Committees for the year 2017-18


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Name DesignationCA. Nirav Choksi ChairmanCA. Co-Chairman

CA. Darshit Shah Convenor

Amish KhandharCA. Punit Prajapati Co-Chairman

Name DesignationCA. ChairmanCA. oo Co-ChairmanCA. Dishank Shah Convenor

Harit DhariwalRohit Mal

CPE INDIRECT TAX COMMITTEE

Name DesignationCA. Fenil Shah ChairmanCA. Co-ChairmanCA. Convenor

Parag RavalPalak PavagadhiHarshid PatelCA. Co-convenor

DIRECT TAX

Name DesignationCA. ChairmanCA. Sunil Sanghvi Co-ChairmanCA. Himanshu Patel Convenor

Priyam R. Shah

LIBRARY

Name DesignationCA. ChairmanCA. Harshid PatelCA. Nimesh Hariya

Fenil ShahCo-ChairmanConvenor

CA. Daivik Shah Co-convenor

STUDENTS

CORPORATE & ALLIED LAWS

Name DesignationCA. Vikash Jain ChairmanCA. Co-ChairmanCA. Sunit Shah Convenor

Hersh Jani

SPORTS

Name DesignationCA. ChairmanCA. Chintan Doshi Co-ChairmanCA. Maulik Desai Convenor

Aniket TalatiName DesignationCA. ChairmanCA. g Raval Co-ChairmanCA. Chirag Jain Convenor

Vikash Jain Para

POST QUALIFICATION

Name DesignationCA. ChairmanCA. Amish Khandhar Co-ChairmanCA. Neerav Agrawal

CA. Sandesh Mundra Convenor

Purushottam Khandelwal

Co-ChairmanCA. Hersh Jani Convenor

GYAN SETU STUDY CIRCLE

Name DesignationCA. ChairmanCA. Saloni Khetawat MentorCA. Prateek Jain Mentor

Purushottam Khandelwal

WICASA

Name DesignationCA. Harit Dhariwal ChairmanCA. Co-ChairmanCA. Convenor

Sandesh MundraNimesh Hariya

NEWSLETTER

ACCOUNTING & AUDITING

Name DesignationCA. ChairmanCA. Chirag M. Shah Co-ChairmanCA. Parag R. Raval Co-ChairmanCA. Amit Prajapati Convenor

Bishan Shah

MEMBERS IN INDUSTRY

Name DesignationCA. ChairmanCA. Co-ChairmanCA. Nilay Shah Convenor

Nirav ChoksiSunit Shah

Name DesignationCA. ChairmanCA. Vikash PurohitCA. Chintan Thakkar

Aniket TalatiCo-ChairmanConvenor

PROFESSIONAL DEVELOPMENT

How latest technology can be used for modern communication by CA firm;

How You WorkConducting a process audit

Discovery and standardization.

Define, document and track.

Assign ownership.

Ensure consistency.

Poor communication, whether internal or external, is a major source of inefficiency. How you communicate should be an intentional process with consistency, brevity and transparency at its core. A well-thought-out approach to communication should take into account how you work, how you communicate internally and how you communicate externally.

to discover how your team works is key to being in a position to communicate and collaborate efficiently. The following steps can help the process run smoothly:

Sit down with your team, figure out your current processes and standardize work flows for your practice.

Create a benchmark document that can be customized (such as a wiki), yet allows everyone to be up-to-date on current practices.

Every project, client and task should have a single, clearly defined owner, and that owner should know who he or she is.

Make sure everyone understands and uses the processes, every time. This way, everyone will know what needs to be done and how.

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“Poor communication, whether internal or external, is a major source of efficiency.”

Once you have understood and standardized your processes, it’s time to remove internal barriers and make information readily available in living documents.

These tips can help improve your internal communications: Email consumes your time and

creates information silos. Instead, internal dialogue should be available to everyone in your practice in an easily searchable format.

There are a number of options to get rid of messy, internal email. What is important is that you pick something and use it consistently across the entire firm.

Spend more time communicating internally, both in person and through other mediums. It builds relationships and helps growth of both employees and the practice.

Be explicit when communicating with multiple peers, and call out the person who is responsible for its completion.

Whether using a wiki or

Internal Communications

Eliminate internal email.

Pick a tool that works for your firm.

Communicate more with peers.

Flag colleagues, when needed.

Foster a culture of documentation.

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some other technology, such as Confluence or Karbon, it is important to everyone who documents and shares information through the proper channels.

“How you communicate is as important as what you communicate.”

Once you have internal standards in place, it’s time tothink about external communications. Unfortunately, email is still the easiest and most familiar way for clients to communicate.The following tips and tricks will make those interaction as productive as possible:

Before you even sign a contract, explain to clients how you communicate, and what turnaround times to expect. This way, they can decide if how you communicate works for them. If it doesn’t, they might not be right for you. You want each of your clients to fit well into your regular workflow.

This may sound daunting at first, especially if you have many clients. But, “training” simply means sticking to standardized practices and teaching by example. If you are consistent, over time, your clients will learn how to maximize their working relationship with you.

Limit the client, and the thread of the conversation, to one topic. When an email comes in with multiple topics, split them and answer them independently. This allows you to share your response with appropriate people and ensure that responses are searchable later.

Stick to the point. If you have multiple questions, turn them into bullet points so that the client will gravitate to them. If an email is going to be more than a few paragraphs, pick up the phone and speak with the client directly, instead.

A well-written subject line can often tell you all you need to know about an email, without you even opening it, especially when a client replies to your original email. The body of your emails should only explain what your subject already establishes.

The following tools will help you get out of your inbox when communicating, or make better use of your inbox when you must use email:

Google (Apps, Groups), Office 365, Smartsheet and Zendesk

Email (Gmail or Office 365Hangouts, Skype, Zoom and Zoho

Slack, Yammer, Google Groups and Zoho

S l a c k a n d Z o h oEach tool is excellent at either making your communications

External Communications

Set expectations upfront.

Train clients on how to work with you.

One email, one project.

Keep emails concise.

Write meaningful subject lines.

Technology Tools to Leverage

Client collaboration:

Client communication:Instant communication: Internal communication:

I n t e r n a l c o l l a b o r a t i o n :

(Contributed by Tarun Masani)Information Technology Updates


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Ÿ more efficient or lending visibility across the work. Bringing It All TogetherHow you communicate is as important as what you communicate. To work collaboratively as a team, you must el iminate communication silos, foster a culture of documentation and leverage technology tools that facilitate

(Contributed by CA. Sandesh Mundra)Quick Connect

Consolidation of the accountsThe consolidated accounts are the vehicle for groups to communicate their financial information and the tool by which the contribution of each entity towards the performance of the whole group can be measured.

Requirement to prepare consolidated accounts as per Companies Act, 2013.Read the Texts in force, AS and INDAS.Note the Differences between AS and INDAS.Treatment of closure dates – If same closure date financials are not available – Accept the difference upto 6 months under AS and 3 months under INDASEnsure Availability of audited financials of all group companies – If not available – Give a remark to that extent in the audit report

Different types of control: exclusive, joint, significant influence.Exclusions from scope.Calculation of the percentages of voting rights.Companies included and excluded: what rules apply?

Calculation of percentage of interests.More than 50% - Line by Line Addition treatment for the subsidiary20 – 50% - Equity Accounting (Passing an entry for profit share only like we do in the case of profit received from a Partnership firm) for the AssociatesVariable % but equal voting rights – Joint Venture – Do a proportionate consolidation for each line itemIND AS may also require you to check the concept of Potential Voting rightsIND AS also requires you to do Equity Accounting for a Joint VentureTreatment of Step-Subsidiary – In most of the cases, it may be better to directly consolidate the same with parent by calculating a proportionate stake

Standardization by defining a Common Chart of Accounts for the Group

Basic understanding required to start a consolidation assignmentUnderstanding the regulatory framework

Determining the scope of consolidation

Using the methods of consolidation

Understanding the main restatements

Currency conversion in case of a foreign group company and treating the same as either Integral / Non-IntegralIdentifying Acquisition date Trial Balances – If not available – Take the nearest audited financials or do a proportionate distribution of profit to arrive at acquisition date Net worthWorking out and aligning major accounting standard differences – If not possible to align – Give a note to that effect with suitable reference in the audit reportElimination of Inter-company Transactions and outstanding balancesCalculation of Goodwill and Minority InterestAdjustment of any major events if there is a gap in reporting periods of group companiesPropose elimination entries to record in the Consolidation Journal.

Acquiring or disposing a group company in a series of steps rather than in one go – Different treatments under AS and INDASHandling cross Holdings –Holding and subsidiary having a stake in each otherHandling Joint Holdings – Holding and subsidiary together holding a stake in another company so as to make it a subsidiaryHandling Negative balances of Minority InterestFair Value accounting of a group entity and its impact in subsequent years

New items to be disclosed properly –Minority interests, Goodwill, Share of Profit from Associate, Share of Profit to Minority.One can go through the financials statements that are available in the public domain to understand the disclosure patterns both under AS and INDAS

In most of the cases an excel file can be structured to do the consolidation by following the basic steps and creating a new sheet for each step within the excel fileFor complex cases / cases where the number of group entities are very high, softwares are now also available in the market

Complexities Involved which may require greater study / Professional help

Presenting the consolidated accounts

Tools to be used


group conversations through context. By standardizing your communications, your team can work together seamlessly, and by setting expectations and staying consistent with protocols, you can effectively train clients how to communicate with you, which brings the focus back to the work itself.

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Important Amendments

Important Judgments

GST Updates

1) In order for smoother performance of Ammnesty Scheme the power has been delegated to Assistant Commissioner and CTO u/s. 42(2) shall be allowed to grant installments limiting the power to Amnesty Scheme vide circular no GVL/Vat/Act/Sec 16(6) dated 21/02/2017

2) GUJKA/VAT -230/16-17/Javak 194/169 dated 28/02/2017 it has been asked by the Commercial Tax Commissioner to complete the assessments of 2012-13 and 2013-14 by 31 March 2017. This circular has been strongly opposed by trade unions as well as the officers association

1) Denial of Input Tax credit on the ground that the transactions were reflected in retail invoices and not tax invoices and therefore did not qualify for credit is not valid as the strict interpretation of Section 50(2) was unwarranted. Credit allowed. Revenue's appeal dismissed. (J C Decaux Advertising I P Ltd. – January 9, 2017) Delhi High Court.

2) In Alembic Limited versus State of Gujarat Appeal no 1318 of 2008 dated 15/11/2016 it was held that laboratory instruments/products information l iterature are consumable stores Tax credit is admissible for such goods used in manufacture of drugs and medicines

3) In the second Appeal no 1058 of 2011 it was held that ITC can be allowed to the purchasing dealer in absence of tax invoice only when the retail invoice produced in lieu of tax invoice contains all the requisite particulars of tax invoice and the selling dealer is prohibited under the Act from issuance of tax invoice and that the selling dealer has paid tax amount collected from the purchasing dealer to the State Government. If all the three conditions are satisfied then only the input tax credit can be allowed to the purchasing dealer even on the basis of retail invoices. In case of M/s. Rajkamal Auto Centre decision of M/s. Gill & Co was relied upon.

Some of the main features of the two Bills, as finalized by the GST Council, are as follows:1) A State-wise single registration for a taxpayer for filing

returns, paying taxes & to fulfill other compliance requirements. Most of the compliance requirements would be fulfilled online, thus leaving very little room for physical interface between the taxpayer and the tax officer

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2) A taxpayer has to file one single return state-wise to report all his supplies, whether made within or outside the State or exported out of the country and pay the applicable taxes on them. Such taxes can be Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Union Territory Goods and Services Tax (UTGST) and Integrated Goods and Services Tax (IGST).

3) A business entity with an annual turnover of upto Rs. 20 lakhs would not be required to take registration in the GST regime, unless he voluntarily chooses to do so to be a part of the input tax credit (ITC) chain. The annual turnover threshold in the Special Category States (as enumerated in Article 279A of the Constitution such as Arunachal Pradesh, Sikkim, Uttarakhand, Himachal Pradesh, Assam and the other States of the North-East) for not taking registration is Rs. 10 lakhs.

4) A business entity with turnover upto Rs. 50 lakhs can avail the benefit of a composition scheme under which it has to pay a much lower rate of tax and has to fulfill very minimal compliance requirements. The Composition Scheme is available for all traders, select manufacturing sectors and for restaurants in the services sector

5) In order to prevent cascading of taxes, ITC would be admissible on all goods and services used in the course or furtherance of business, except on a few items listed in the Law.

6) In order to ensure that ITC can be used seamlessly for payment of taxes under the Central and the State Law, it has been provided that the ITC entitlement arising out of taxes paid under the Central Law can be cross-utilised for payment of taxes under the laws of the States or Union Territories. For example, a taxpayer can use the ITC accruing to him due to payment of IGST to discharge his tax liability of CGST / SGST / UTGST. Conversely, a taxpayer can use the ITC accruing to him on account of payment of CGST / SGST / UTGST, for payment of IGST. Such payments are to be made in a pre-defined order

7) In the Services sector, the existing mechanism of Input Service Distributor (ISD) under the Service Tax law has been retained to allow the flow of ITC in respect of input services within a legal entity.

8) To prevent lock-in of capital of exporters, a provision has been made to refund, within seven days of filing the application for refund by an exporter, ninety percent of the claimed amount on a provisional basis.

9) In order to ensure a single administrative interface for taxpayers, a provision has been made to authorise officers of the tax administrations of the Centre and the States to exercisethe powers conferred under all Acts.

Vat Updates (Contributed by CA. Monish S Shah)


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10) An agriculturist, to the extent of supply of produce out of cultivation of land, would not be liable to take registration in the GST regime.

11) To provide certainty in tax matters, a provision has been made for an Advance Ruling Authority.

12) Exhaustive provisions for Appellate mechanism have been made.

13) Detailed transitional provisions have been provided to

Sec. 44AB

Sec. 95

Sec. 6

Sec. 44AD

New Sec. 269ST

Sec. 40A(3)

read with Rule 114E of the Income-tax Rules, 1962 –Audit Compulsory – Reporting Cash Transactions - Press Release, dated 22/12/2016

– General Anti Avoidance Rule (GAAR) – Applicability & Clarifications on Implementation of GAAR Provisions - Circular No. 7 of 2017 dated 27/1/2017The General Anti Avoidance Rules (GAAR) provisions shall be effective 2018-19 onwards.

– Residential Status – Guiding Principles for Determination of Place of Effective Management (POEM) of a Company – Circular No. 6 of 2017 dated 24/1/2017The concept of POEM. It is effective from 1/4/2016 and i.e. w.e.f. AY 2017-18 onwards. Guidelines available on www.incometaxindia.gov.in.

– Measures for Promoting Digital Payments & Creation of Less Cash Economy - Press Release, dated 19/12/2016In order to achieve the Government's mission of moving towards a less cash economy and to incentivise small traders/businesses to proactively accept payments by digital means, it has been decided to reduce the existing rate of deemed profit of 8% under section 44AD of the Act to 6% in respect of the amount of total turnover or gross receipts received through banking channel/digital means for the financial year 2016-17.

– Imposing res tr ict ion on cash transactionsProposed that, from AY 2017-18, any person cannot receive more than Rs.3 lakh in cash either (a) in a day from any single person or (b) for a single transaction or (c) for different transactions relating to one event or occasion from a person. Currently, cash purchase of jewellery exceeding Rs.5 lakh requires the purchaser to collect tax at source. However, with the introduction of Section 269ST, such a cash purchase of jewellery (exceeding Rs.5 lakh) would not be possible and hence, the TCS provisions are suitably amended.

– Proposed that any expenditure on acquisition of a capital asset for which the cash payment is made in excess of Rs.10,000 (per person per day), shall not form part of the actual cost of the asset

Sec. 13A

Sec.80G

Sec. 55

Sec. 10(38)

HIGH COURT DECISIONS:

MAT DECISIONS:

DEVELOPMENTS /OTHER AMENDMENTS:

– Maximum cash donation that can be received by a political party is Rs.2,000

– Donations made in cash in excess of Rs.2,000 will not fetch any tax benefit

Shifting base year for computation of capital gainsProposed to be amended to provide that the cost of acquisition of an asset acquired before 1st April 2001 shall be allowed to be taken as Fair Market Value (FMV) as on 1st April 2001 (as against 1st April 1981 as per the existing provisions). Also, the cost of improvement shall include only those capital expenditure incurred after 1st April 2001.

– Proposed to provide that the exemption under this Section for income arising on sale of equity shares acquired on or after 1st October 2004 shall be available only if acquisition of shares is chargeable to STT. However, an exemption shall be provided for

Non-Service of notice u/s. 143(2) at correct address of the assessee within the prescribed time limit makes notice invalid

- CIT vs. Abacus Distribution Systems (India) Pvt. Ltd. (Bombay High Court).

Reopening an assessment opens a “Pandora's box” and cannot be done in a casual manner

- Torm Shipping India Pvt Ltd vs. ITO (ITAT Mumbai).

On cash refund of excess money received on sale of goods, there can be NO disallowance u/s. 40A(3) of Income-tax Act, 1961

- ACIT vs. Kishore Singh Gehlot (HUF) (ITAT Jaipur)

Indirect tax assessments will not be reopened for mere increase in Sales.

the genuine cases where STT could not have been paid (like acquisition of shares in IPO, FPO, bonus shares or right shares etc.) by way of a notification in this regard.

JUDICIAL PRONOUNCEMENTS

Direct Tax Updates (Contributed by CA. Nimesh R. Hariya)

ensure migration of existing taxpayers and seamless transfer of unutilised ITC in the GST regime.

14) An anti-profiteering provision has been incorporated to ensure that the reduction of tax incidence is passed on to the consumers.

15) In order to mitigate any financial hardship being suffered by a taxpayer, Commissioner has been empowered to allow payment of taxes in installments

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1. Guidance Note on Audit of Banks

2. Certificate of Incorporation

3. Closure of Business by a Foreign Company( Clarification by MCA):

4. C h a n g e s i n ( T r a n s f e r o f P e n d i n g Proceedings)Amendment Rules,2016

The Auditing and Assurance Standards Board of the ICAI has issued 2017 edition of the Guidance Note on Audit of Banks.

Issue date: 25thJanuary, 2017Amendment in Form INC-11:In the Companies (Incorporation) Rules, 2014 for rule 18, the following rule shall be substituted, namely:- “18. The Certificate of Incorporation shall be issued by the Registrar in Form No.INC-11 and the Certificate of Incorporation shall mention permanent account number of the company where it is issued by the Income-tax Department”.

Above amendments were applicable from 30th January,2017.

Issue date: 22th February, 2017Sub-Section (2) of Section 391 of the Companies Act, 2013, states that the provisions of Chapter XX shall apply mutatis mutandis for closure of the place of business of a foreign company in India as if it were a company incorporated in India. These provisions have been brought into force on 15th December, 2016.MCA has issued clarification on this matter, and such clarification is:

Subsection (1) and sub-section (2) of section 391 needs to be read harmoniously. Accordingly, it is clarified that provisions of sub-section (2) of Section 391 of the Companies Act, 2013 would apply only in case of a foreign company which has issued prospectus or IDRs pursuant to provisions of Chapter XXII of Companies Act, 2013.

Issue date: 28thFebruary, 2017

T he C entra l Gov ernme nt make s f ol low ing amendments to the Companies (Transfer of Pending Proceedings) Amendment Rules, 2016

. In the Companies (Transfer of Pending Proceedings) Amendment Rules,2016), in rule 5, in sub-rule(1) in the proviso for the words 'sixty days' the words 'six months shall be replaced.

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http://www.icai.org/new_post.html?post_id=13355&c_id=219

http://www.mca.gov.in/Ministry/pdf/IncorporatinRules_27012017.pdf

http://www.mca.gov.in/Ministry/pdf/GeneralCircular1_2017_23022017.pdf

http://www.mca.gov.in/Ministry/pdf/CoTransferofProcedingsAmdtRules_01032017.pdf

http://www.mca.gov.in/Ministry/pdf/IEPF_Refund_Amendment_Rules_03032017.pdf

http://www.mca.gov.in/Ministry/pdf/IEPF_Refund_Amendment_Rules_03032017.pdf

5. Amendment in Investor Education and Protection Fund(IEPF):

Issue date: 28th February, 2017In the principal rules, there is amendment in rule 6 regarding:Manner of transfer of shares.For effecting the transfer of shares the Board shall authorise the Company Secretary or any other person to sign the necessary documents.Amendment includes listed procedure to be followed for transfer of shares.When the transfer is done through above procedure ,how they are dealt with in a depository, effect when there is transfer of shares which are held in physical form.] While effecting the transfer , the company shall send a statement to the authority in form IEPF 4.

The voting rights on shares transferred to the Fund shall remain frozen until the rightfulowner claims the shares.

Amendments regarding how shares are to be maintained in DEMAT A/C.

Amendment regarding refund to claimants from fund.Minor amendments in form IEPF-3,5 and

Amendments regarding how shares are to be maintained in DEMAT A/C.Amendment regarding refund to claimants from fund.Minor amendments in form IEPF-3,5 and

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Accounting & Company Law Updates (Contributed by CA. Chintan Patel)

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CA. Dave Harendraprasad ChandrakantMembership No. 016765

9th January, 2017

OBITUARY

Compliances related to various laws applicable to be followed for14th March to 14th April, 2017 are listed as below:

KNOW YOUR DATES


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CategoryDue Date Description15/03/2017 Income Tax Due date for payment of last installment of advance income tax for the

assessment year 2017-1815/03/2017 Income Tax Due date for payment of whole amount of advance tax in respect of

assessment year 2017-18 for assessees covered under presumptive scheme of Section 44AD.

15/03/2017 ESIC Monthly – EPF – Return of Employees qualifying for membership to the EPF for the first time during previous month

15/03/2017 ESIC Monthly-EPF-Return of member leaving service during the previous month

15/03/2017 ESIC Exempted establishment – EPS/ EDLIS – Monthly Return of members joining service during the previous month.

15/03/2017 ESIC Exempted establishment – EPS/EDLIS – Monthly Return of Members Leaving Service During the previous Month

15/03/2017 Provident Fund (includes EDLI)

PF Payment for February, 2017

17/03/2017 Income Tax Due date for issue of Form 16B in respect of tax deducted under Section 194-IA in the month of January, 2017 and paid in February, 2017

21/03/2017 ESIC ESIC Payment and Return for February

25/03/2017 ESIC Monthly – Consolidated Statement of dues and remittance under EPF Scheme, 1952, EPS 1995 and Employees’ Deposit Linked Insurance Scheme, 1976 of the previous month to which the dues relate.

25/03/2017 Provident Fund (includes EDLI)

PF Return filing for February (including pension and insurance scheme forms)Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of February, 2017

30/03/2017 Income Tax

31/03/2017

15/03/2017 Professional Tax Payment for Employee Professional Tax for the month of February’17

17/03/2017 Gujarat VAT GVAT/CST Return filing for the month of January’17

22/03/2017 Gujarat VAT Payment of Gujarat VAT Tax (includes WCT Tax, Regular Tax) for themonth of February’17

31/03/2017 Service Tax Service Tax Payment for the Month of March 2016Excise Duty Excise Duty Payment for the Month of March 2016

31/03/2017 Income Tax Filing of ITR for the AY 2016-17 without penalty & AY 2015-16 with Penalty of Rs 5,000. Revision of ITR for the AY 2015-16

31/03/2017 PMGKY, 2016 Last date for declaration of undisclosed income under Pradhan Mantri Garib Kalyan Yojana, 2016

31/03/2017 IDS, 2016 Due date for payment of second installment (i.e., 25% of tax, surcharge and penalty)underIncomeDeclaratioScheme2016

31/03/2017 Income Tax Payment of balance advance Income Tax by all assessee (for Sec 243B & 234C)

1/04/2017 Professional Tax forEmployer

Payment for Yearly Employer Professional Tax for FY 17-18

Filing ER-1 Return (Other than SSI Units)Central Excise 10/04/2017

CA. Aniket Talati

Congratulations to , Past Chairman of

Ahmedabad Branch for being elected as a Secretary of WIRC of ICAI, Mumbai for the year 2017-18.

CA. Aniket Talati

CA. Milind Ranade, membership number is 039038. He has completed PHD. The topic was "Influence of Socio Economic Factors on Changing Dynamics of Gold in India.

CA. Milind Ranade

The Government of Gujarat has appointed the following Chartered Accountants as members of the Metropolitan Planning Committee for the Metropolitan area of Ahmedabad.

CA. Jainik Vakil CA. Ashok PatelCA. Yamal Vyas

CA. Ganesh NadarSecretary

CA. Ganesh Nadar, has been appointed as a consultant for Hriday Project of the Government of India for Dwarka.

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CategoryDue Date Description

GVAT / CST Return filing for the month of February'1714/04/2017 Gujarat VAT

10/04/2017 Central Excise Filing ER-2 monthly return by 100% EOU (removing goods in domestic tariff area)

10/04/2017 Central Excise Filing monthly ER-6 Return by specified cla ss of Assesses regarding principal inputs. (Assessee who paid duty of excise more than Rs. 1 crore in the preceding year

10/04/2017 Central Excise

10/04/2017 Central Excise

Filing quarterly ER-3 Return by manufacturers availing exemption on the basis of value of their clearance

10/04/2017 Central Excise Filing Quarterly ER-8 Return by the units paying 2% duty

Filing Quarterly ER-2 Return by 100% EOUs

Appreciation Corner

[TO BE PUBLISHED IN PART III, SECTION 4 OF THE GAZETTE OF INDIA, EXTRAORDINARY DATED, 9TH FEBRUARY, 2017]

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

New Delhi, the 9th February, 2017

NOTIFICATION

No.1-CA(7)/179/2017:- In exercise of the powers conferred under sub-section (3) of section 4 and 5, sub-section (2) of section 6, sub-section (4) of section 19 and sub-section (3) of section 20 of the Chartered Accountants Act, 1949 read with regulations 5 and 6 of the Chartered Accountants Regulations, 1988, the Council of the Institute of Chartered Accountants of India, with the prior approval of the Central Government, wherever required, hereby notifies the following rates of fee for entry of name in the Register of Members, annual membership fee, annual certificate of practice fee and fee for restoration of name in the Register of Members:-

Sl. No.

Particulars of fee payable Fee payable w.e.f. 1.4.2017

1. Entrance Fee payable under regulation 5 - - as an Associate - as a Fellow

Rs.2,000/- Rs.2,500/-

2. Annual Membership Fee payable under sub regulation (1) of regulation 6 –

- as an Associate Member - as Fellow Member

Rs.1,500/- Rs.3,000/-

3. Certificate of Practice fee payable under sub-regulation (2) of regulation 6 –

- as an Associate Member - as a Fellow Member

Rs.3,000/- Rs.4,000/-

4. Fee for restoration of name in the Register of Members payable under sub-regulation (3) of regulation 6 -

(i)

within 3 years of removal (ii)

after 3 years of removal but before 5 years

(iii)

after 5 years of removal

Rs.1,200/- Rs.3,000/-

Rs.4,000/-

Notwithstanding the rates of annual membership fee specified at Serial Number 2 above, a member who has attained the age of 60 years and above as on the 1st day of April of the relevant year, but not holding the certificate of practice shall pay such annual membership fee at the rates specified below:-

Associate Member - Rs.1,100/- Fellow Member - Rs.2,300/-

The aforesaid revised rates of fees shall come into force with effect from 1 st

April, 2017.

(V. Sagar) Secretary


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LIVE SCREENING OF UNION BUDGET ON 01.02.2017

LECTURE MEETING ON FINANCE BILL (BUDGET) 2017 ON 03.02.2017

LECTURE MEETING ON IMPACT OF FINANCE BILL 2017 ON 02.02.2017

PRESS CONFERENCE FOR CA IPCC - NOVEMBER 2016 RESULT ON 01.02.2017

INAUGURATION OF CA CIRCLE ON 03.02.2017

INTERACTIVE MEETING OF MEMBERS WITH NEWLY ELECTED OFFICE BEARERS AND MANAGING COMMITTEE MEMBERS ON 25.02.2017


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UNION BUDGET-TECHNICAL ANALYSIS OF FINANCE BILL ON 04.02.2017

LECTURE MEETING ON HOW TO RESPOND TO NOTICES RECEIVED FOR CASH DEPOSITS ON 07.02.2017

HALF DAY SEMINAR ON ALL ABOUT NBFCs ON 17.02.2017

4th BATCH - POST QUALIFICATION DIPLOMA IN INTERNATIONAL TAXATION AT A’BAD ON 18.02.2017 HALF DAY SEMINAR ON ACCOUNTING ON 11.02.2017

YOGA SESSION ON 11.02.2017

WORKSHOP ON LET’S EXCEL IN EXCEL ON 17.02.2017 & 25.02.2017

ICAI - WICASA BEST BRANCH AWARD


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(set up by an act of parliament) ahmedabad branch of wirc...

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