vasai branch of wirc newslettervasai-icai.org/image/newsletter july 2014.pdf · ca. dilip phalake...

`̀www.vasai-icai.org July 2014T E A Mogether veryone chieve ore

NEWSLETTER

VASAI BRANCH OF WIRCT E A M

The Institute of Chartered Accountants of India

` 25/- For Members Only

Happy Guru Purnima

Happy Eid

BUDGET 2014

The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter2 July 2014

Workshop on Companies Act 2013 held on 17th June to 28th June, 2014

Seminar on Taxation of Construction Business held on 29th June 2014

Speakers

(L-R) : CA. Vimal Agarwal (Committee Member) CA. Durgesh Kabra (Speaker), CA. Dayaram Paliwal (WICASA-Chairman), CA. Kishor Vaishnav (Chairman) & CA. K. B. Kothari (Committee Member) addressing the seminar

(L-R) : CA. K.B. Kothari (Committee Member), CA. Vimal Agarwal (Committee Member) CA. Rajiv Luthia (Speaker), CA. Kishor Vaishnav (Chairman), CA. Sunil Patodia (RCM), CA Unmesh Narvekar (Past chairman-Vasai Branch) addressing the session

Participants

Participants

PHOTO - GALLERY

CA. Paresh Clerk

Speakers

CA. Dilip Phadke CA. Rajiv Luthia

CS Mahavir Lunawat

CA. Abhay Arolkar CA. Abhay Mehta CA. Durgesh Kabra

3The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter July 2014

undertaken by our institute towards women empowerment. Wherein large huge Number of Members and CA Students was presented at different events and graced the occasion on a personal note and rise to the spirit of CA Day.

On 6th July 2014, a Seminar on Information Technology was conducted for the members. Again, On 13th July 2014, Public meeting on Union Budget 2014 conducted where CA. Mangesh Kinare Past Chairman-WIRC addressed at Vasai followed by CA. Vimal Punmiya at Bhayandar werein large number of CA. Members and general Public took benefit of the same.

For students, a Seminar on Companies Act, 2013 organised by CA. Pramod Dhamankar on 3rd July 2014. Seminar on Motivational lecture for CA students on 16th July 2014, wherein Dr. Mahesh Gaur motivated and inspired the students to help them build new self confidence. On 19th July 2014, there was Youth festival for CA Students, wherein the students can rejuvenate themselves with new energy levels.

Forthcoming Programme

Seminar on Wealth Tax where CA. Bhawar Borana will be imparting his knowledge on the subject on 26th July.

On 24th August 2014, Seminar on Awareness Programme on Financial Reporting Practices and Seminar on Clause by Clause Tax Analysis is to be conducted. Also, WIRC office bearers will be felicitated on the same day

CA Students’ Regional Students Conference on 2nd & 3rd August 2014, organizes By Board of Studies host by WIRC jointly with Vasai Branch of WICASA for which students from all over the region will be coming. The various eminent dignitaries express their views and opinions which will help students in enriching their knowledge on different area.

I request all CA Members to encourage their articles to enroll this Conference and help in making memorable events.

Certificate Course on Indirect Taxes is schedule in October month and Certificate course on Concurrent Audit of Banks in December month. I Request all Membersto enroll in above course immediately.

With Warm Regards

CA Kishor Vaishnav

Esteemed Members,Festivals are the days that consolidate our unity and solidarity and when fraternity is felt, and joy as well as sorrows are shared most. The festival approaching soon is Ramzan Eid. Ramzan or Id-ul-Fitr is celebrated on 29th July 2014. Eid Mubarak to all my friends.

Another festival approaching is Guru Purnima.

“Guru Purnima marks one of the greatest moments in the life of humanity. This is a day that is reminiscent of Adiyogi opening up and offering the possibility that a human being can evolve beyond all limitations set by his physical nature, if willing to strive. This first full moon day after the solstice is a time when this planet and all life upon it are most receptive to the cosmic energy and possibilities. The next six months till the winter solstice is the best time to strive for evolving and experiencing the divine possibility that is innate in a human being.” – Sadguru.

I wish all of you a very Happy Guru Purnima.

Finance Minister Arun Jaitley presented the Union Budget for the 2014/15 financial year. Outlining the roadmap for fiscal consolidation, Jaitley said the government will retain the fiscal deficit target for 2014-15 at 4.1 per cent of GDP and reduce it further to 3 per cent by 2016-17. Presenting his maiden Budget, the Minister said the prevailing economic situation presents a great challenge and there was a need to introduce fiscal prudence that will lead to fiscal consolidation and discipline.

Last month, various events were organized. For members, there was a Workshop on Companies Act 2013 on 17th, 18th, 21st, 22nd, & 28th June 2014. Then there was a seminar on Taxation of Construction Business on 29th June 2014. CA. Rajiv Luthia shared his treasure chest of knowledge on Service Tax and CA. Dilip Phalake on Sales Tax.

For students, a RRC to Mahabaleshwar was conducted on 14th and 15th June 2014. All those who attended it had a great time with visiting Mapro Garden and DJ rocking the night.

This month, various events were conducted for members as well as students. On the occasion of CA Day, our branch is organised various events during the month of July such as Hoisting of ICAI flag, Tree Plantation, Cyclothon, Honoring senior members, Donation of Literacy Kits to underprivileged children in various schools, Food/Book/Clothes distribution to underprivileged & old age homes, Sports & Cultural activities, Organizing Tax awareness programs & Tax Clinics for general public, Organize blood donation camps and spreading awareness about initiatives

CHAIRMAN’S COMMUNICATION

3The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter

T E A M

July 2014

MANAGING COMMITTEE

CA. Kishor Vaishnav Chairman CA. Umesh Mestry Vice-ChairmanCA. Preksha Jain Secretary & Treasurer

EDITORIAL BOARDEditor : CA. Kishor Vaishnav Joint Editor : CA. Vimal Agarwall CA. Unmesh Narvekar, l CA. Haresh Mehta, l CA. Pramod Dhamankar, l CA. Hemant Shah, l CA. Haresh Kenia, l CA. Lalit Munoyat, l CA. Kamal Dhareva, l CA. Preeti Agarwal, l CA. Rajesh Utkur, l CA. Sanjay Paharia.

CA. Dayaram Paliwal WICASA-ChairmanCA. Ramanand Gupta Imm. Past ChairmanCA. Kanhaiyala B. Kothari Committee Member

CA. Vimal Agarwal Committee MemberCA. Sumeet Doshi Committee MemberCA. Shruti Shah WIRC-Nominee


FORTHCOMING PROGRAMMES FOR MEMBERSDate Seminar on Timings Venue Speakers Co-ordinators Fees CPE

1st July 2014 CA Day/Opening of New Premises/Honoring Senior Members Of The Profession

8.00 am Onwards

Amruta Building, Indralok Phase-II, New Golden Nest Road, Bhayandar (East)

Eminents CA. Kishor Viashnav 892194382 CA Umesh Mestry 9320473468 CA.Preksha Jain 9029877140 CA. Ramanand Gupta 9322231113 CA. Dayaram Paliwal 9820331010 CA. Vimal Agarwal 9320617447 CA. K. B. Kothari 9594196090 CA. Sumeet Doshi 9869525956

Free –

5th July 2014 Tree Plantation 8.30am To 9.00am

Bhayander Chowpatty - CA Vimal Agerwal 9320617447 CA. K. B. Kothari 9594196090

Free –

6th July 2014 Investor Awareness Programme

10.30 am to 1.30 pm


CA. Ankit Sanghavi CA. Jignesh Mehta

CA. Dayaram Paliwal 9320331010 CA. K.B. Kothari 9594196090

Free 2 Hrs

6th July 2014 Seminar on IT 2.00 pm to 5.00 pm

Amruta Building, Indralok Phase-II, New Golden Nest Road, Bhayandar(East)

Mr. Varun Nirmal CA. K. B. Kothari 9594196090 ` 100/- 3 Hrs

6th July 2014 Sports/Cultural Activities 9.00am To 5.00pm

DKS CA Students Hostel, Evershine City, Vasai (East)

- CA. Dayaram Paliwal 9320331010 Free –

7th July 2014 Donation of Literacy Kits to Underprivileged Childern in Schools

4.00 pm To 5.00pm

Aadivashi Seva Mandal, Gramin Vidyalaya, Mahajan Wadi, Mira Road (East)

- CA Vimal Agerwal 9320617447 CA. K. B. Kothari 9594196090 CA. Unmesh Narvekar 9821236179

Free –

13th July 2014 Blood Donation Camps For General Public

11.00am To 2.00pm

Jaisal Park Resident Association, Bhayander (East)

- CA. K. B. Kothari 9594196090 Free –

13th July 2014 Tax Awareness Programs For General Public

2.00pm To 5.00pm

Jaisal Park Resident Association, Bhayander (East)

CA. Unmesh Narvekar CA. K. B. Kothari 9594196090 Free –

13th July 2014 Public Meeting on Union Budget 2014

9.30 am to 11.30 am

Samaj Unnati Hall, Manikpur, Vasai Road - (West)

CA. Mangesh Kinare CA. Umesh Mestry 9320473468 CA. Dayaram Paliwal 9820331010 CA. Xavier Rajan 9371720027 CA. Pramod Dhamankar 9987155522

Free 3 Hrs

13th July 2014 Public Meeting on Union Budget 2014

5.30 pm Onwards

Indra-varun Hall, Jesal Park, Bhayandar- East

CA. Vimal Punmiya CA. Vimal Agarwal 9320617447 CA. Preksha Jain 9029877140 CA. K. B. Kothari 9594196090

Free 3 Hrs

24th July 2014 Food/Book/Clothes Distribution To Under Privileged & Old Age Home

10.00am To 1.00pm

Father Wadi, Vasai (West)

- CA. Kishor Vaishnav 9892194382 CA. Umesh Mestry 9320473468

Free –

26th July 2014 Seminar on Wealth Tax 5.30 pm to 8.30 pm


CA. Bhanwar Borana CA. Dayaram Paliwal 9320331010 ` 100/- 3 Hrs

27th July 2014 Cyclothon 8.30am To 9.00am

Vasai - CA. Kishor Vaishnav 9892194382 CA. Umesh Mestry 9320473468

– –

27th July 2014 Awareness About Initiatives Undertaken by ICAI Towards women Empowerment

2.00pm To 5.00pm


Eminents CA Preksha Jain 9029877140 Free –

24th August 2014

Clause by Clause Tax Analysis & Felicitation of WIRC office Bearers

9.30am To 1.00pm

GCC Club, Mira Road (East)

Dr. Dilip Ahuja CA. Dayaram Paliwal 9320331010 CA Preksha Jain 9029877140

` 400/- 3 Hrs

24th August 2014

Awareness Programme on Financial Reporting Practices

1.30 pm to 5.30 pm

GCC Club, Mira Road (East)

CA. Nihar Jambusaria CA. Dayaram Paliwal 9320331010 CA Preksha Jain 9029877140

` 100/- 3 Hrs

FORTHCOMING - PROGRAMMES


FORTHCOMING PROGRAMMES FOR STUDENTSDate Seminar on Timings Venue Speakers Co-ordinators Fees CPE

3rd July 2014 Seminar on New Companies Act

5.30 pm to 8.30 pm


CA. Pramod Dhamankar Ms. Pinky Mestry 8286287730 Mr. Lalit Sharma 9930532531

` 50/- –

16th July 2014 Motivational Lecture for CA Students

5.30 pm to 8.30 pm


Dr. Mahesh Gaur Ms. Pinky Mestry 8286287730 – –

19th July 2014 CA Students Festival 5.30 pm Onwards

Vaishnav Samaj Bhawan Hall, Opp. MTNL, Bhayander (West)

– Mr. Kalpesh Dhakad 9769332789 Ms. Pinky Mestry 8286287730 Mr. Lalit Sharma 9930532531 Mr. Rakesh Pareek 9022686560 Mr. Jay Doshi 9960691350

` 100/- –

2nd & 3rd August 2014

Students Conference 9.30 am to 5.30 pm

Venkatesh Banquet Hall, Near Maxus Mall, Bhayandar(West)

CA. Tarun Ghia CA. Nihar Jambusaria CA. Prafulla Chhajed CA. Jay Chhaira Shri. Vijay Kapur CA. V. Murali CA. Shiwaji Zaware CA. Uttam Prakash Agarwal

CA. Kishor Viashnav 9892194382 CA Umesh Mestry 9320473468 CA.Preksha Jain 9029877140 CA. Ramanand Gupta 9322231113 CA. Dayaram Paliwal 9820331010 CA. Vimal Agarwal 9320617447 CA. K. B. Kothari 9594196090 CA. Sumeet Doshi 9869525956

` 400/- –

FORTHCOMING PROGRAMMES OF BHAYANDER CPE STUDY CIRCLEDate Seminar on Timings Venue Speakers Co-ordinators Fees CPE 20th July 2014 Seminars For Formation

of LLP and Corporate Restructuring Through LLP

10.00 am to 1.00 pm

Hotel Sankalp (New Zaika), 1st Floor, Near Maxus Mall, 150FT Road, Bhayander (West) Thane-401101

Eminent CA. Deepak Bansal 9320981019 – 3 Hrs

FORTHCOMING PROGRAMMES OF VASAI-VIRAR CPE STUDY CIRLCEDate Seminar on Timings Venue Speakers Co-ordinators Fees CPE19th July 2014 Service Tax 4.00 pm to

7.00 pmSwagat Bhavan CA. Aniket Padhye CA. Kalpesh Shah 9850576510

CA. Xavier Rajan 9371720027– 3 Hrs

FORTHCOMING PROGRAMMES OF PALGHAR CPE STUDY CHAPTERSDate Seminar on Timings Venue Speakers Co-ordinators Fees CPE12th July 2014 Tally – Auditing, Compliance,

Reporting & Accounting2:45 pm to 6:00 pm

Lion's Club Conference Hall, Near Panchbatti, Palghar (W) Thane 401404

Eminent CA. Bharat Dhonde 9049494967 CA. Kiran Shinde 9762623479 CA. Deepak Gurnani 9766445799

` 200, Free for Article

Students

3 Hrs

19th July 2014 Appeals & Scrutiny Assessments under Income Tax Act

3:45 pm to 6:00 pm

CA. Suhas Kelkar's Office, Opp Vijaya Bank, Palghar (W), Thane 401404

CA. Milind Ulkande CA. Bharat Dhonde 9049494967 CA. Kiran Shinde 9762623479 CA. Deepak Gurnani 9766445799

` 200, Free for Article

Students

2 Hrs

FORTHCOMING - PROGRAMMES

FORTHCOMING PROGRAMMES FOR MEMBERSDate Seminar on Timings Venue Speakers Co-ordinators Fees CPE

11th Oct 2014 to 23rd Nov 2015 (Every Sat & Sun)

Certificate Course on Indirect Taxes

9.30 am to 5.30 pm

Amruta Building, Indralok Phase-II, New Golden Nest Road, Bhayandar(East)

Eminents CA Umesh Mestry 9320473468 CA. Vimal Agarwal 9320617447 CA. K.B. Kothari 9594196090

` 15000/- 70 Hrs

27th Dec 2014 to 11th Jan 2015 (Every Sat & Sun)

Certificate Course on Concurrent Audit of Banks

9.30 am to 5.30 pm


Eminents CA. Dayaram Paliwal 9820331010 CA. Preksha Jain 9029877140 CA. Sumeet Doshi 9869525956

` 12500/- 36 Hrs


PROGRAMME - SCHEDULE

Venue Vasai Branch of WIRC Amruta Building, Indralok Phase II, New Golden Nest Road, Bhayander ((E)

Day & Date 27th Dec 2014 to 11th Jan 2015 (Every Sat & Sun)Timing 9.30 am to 5.30 pmParticipation Fees ` 12500/- Payable by Cheque/DD in favour of

Secretary, ICAI payable at DelhiCourse Chairperson CA. Jyoti Singh

Secretary, Internal Audit Standards BoardCourse Director CA. Kishor Vaishnav

Chairman – Vasai Branch of WIRCCourse Co-ordinators CA. Dayaram Paliwal 9820331010

CA. Preksha Jain 9029877140CA. Sumeet Doshi 9869525956

For Registrations 022-65568900/01

CPE 36

HRS

Certificate Course on Concurrent Audit of Banks

Venue Vasai Branch of WIRC Amruta Building, Indralok Phase II, New Golden Nest Road, Bhayander (E)

Day & Date 11th Oct 2014 to 23rd Nov 2015 (Every Sat & Sun)Timing 9.30 am to 5.30 pm

Participation Fees ` 15000/- Payable by Cheque/DD in favour of Secretary, ICAI payable at Delhi

Course Chairperson CA. Surbhi Jain Secretary, Indirect Taxes Committee

Course Director CA. Kishor VaishnavChairman – Vasai Branch of WIRC

Course Co-ordinators CA Umesh Mestry 9320473468CA. Vimal Agarwal 9320617447CA. K.B. Kothari 9594196090

For Registrations 022-65568900/01

CPE 70

HRSCertificate Course on Indirect Taxes

Date Particular27-Dec-14 Inaugural Session

Legal and Regulatory Frame work, KYC norms & Obligation of banks under Prevention of Money Laundering Act (PMLA 2002)Negotiable Instrument Act, 1881Effective Concurrent AuditDiligence Reports for Banks

28-Dec-14 Loans and Advances, Book Debts and Stock Audit, Banker Panel Discussion (GMs of Banks to Address)

03-Jan-15 Concurrent Audit Procedures

04-Jan-15 FOREX & TRADE Fraud Detection, Classification and Reporting, Discussion on Case Studies on Frauds Occurred in Banking Industries

10-Jan-15 Treasury and Investment Function Part ITreasury and Investment Function Part IIPrudential norms on Income Recognition, Assets Classification and Provisioning pertaining to AdvancesImplementation of Basel Capital Regulatory Requirements in India.Disclosure Requirements

11-Jan-15 Audit in CBS EnvironmentSoftware Usage in Banks – CBS DemonstrationObjective Assessment

Date Area Topics11-Oct-14 General Covering overview of

Indirect TaxesOpportunities in Practice or Employment- Indirect taxes / Overview of Indirect Taxation in India

Constitution related taxation aspects

Aspects of Constitution

Excise Introduction of Excise Law 12-Oct-14 Custom Introduction to Custom Law

Foreign Trade, SEZ and Refunds

Foreign Trade Policy

Duty drawback and Export Promotion Schemes under Foreign Trade Policy like SEZ, Refund under Exports of Goods for Service tax

18-Oct-14 Service Tax Levy of Service Tax and Negative List, Declared Services (With Recent Case Law, Notification and Circulars)

Major Exemptions including Mega Exemption Notification / Abatements (With Recent Case Law, Notification and Circulars)

19-Oct-14 Service Tax Service Tax Rules ,1994 (Rule by Rule) and Reverse Charge and Joint Charge (With Recent Case Law, Notification and Circulars)

Point of Taxation Rules and (Rule by Rule) (With Recent Case Law, Notification and Circulars)

01-Nov-14 Service Tax Place of Provision of Service Rules (Rule by Rule) (With Recent Case Law, Notification and Circulars)

Determination of Value Rules 2006 (With Recent Case Law, Notification and Circulars)

02-Nov-14 CENVAT CENVAT Credit Rules both excise/ Service tax (With Recent Case Law, Notification and Circulars)

08-Nov-14 CENVAT CENVAT Credit Rules with Practical Illustration and Case Studies

Service Tax Interest, Penalties, and Appellate Procedure (Refer Material of One day Course)

09-Nov-14 Service Tax Handling Show Cause Notice, like analysis of show cause notice, drafting reply of show cause notice, preparation of evidences, etc.

Introduction to Suggested Service Tax Audit Format for Preparedness of Desk Review and Audit Under Service tax

15-Nov-14 Service Tax Case Study on Practical Review of Learning

16-Nov-14 Service Tax Mock TribunalWorks Contract Tax Introduction of Works Contract,

Applicability of VAT and Service tax on Works Contract

22-Nov-14 Central Sales Tax Introduction, Levy and Principal of CST

State VAT law Introduction, Levy and Principal of VAT (State Law relevant to State where program is being organized)

23-Nov-14 GST Introduction, Levy and Principal of GST

Programme Schedule

Programme Schedule

Organized by : Internal Audit Standard Board of the ICAIHosted By : Vasai Branch of WIRC of ICAI

Organized by : Indirect Taxes CommitteeHosted By : Vasai Branch of WIRC of ICAI


Venue : Venkatesh Banquet Hall, Near Maxus Mall, Bhayandar (West)Day & Date : Saturday, 2nd August & Sunday, 3rd August 2014Registration Fees : 400/- Per Participant.Inauguration by : CA. K Raghu, President, ICAI* & Guest of Honor CA. Manoj Fadnis, Vice-President, ICAI*

CA STUDENTS - REGIONAL CONFERENCE 2014

VASAI BRANCH OF WIRC OF ICAI

Inauguration by CA. K Raghu, President, ICAI

Guest of Honor C A. Manoj Fadnis, Vice-President, ICAI

Day & Date: Saturday, 2nd August

& Sunday, 3rd August 2014

Near Maxus Mall, Bhayandar(West)

Venue: Venkatesh Banquet Hall,

Hosted By

VASAI BRANCH OF WICASA Hosted By

VASAI BRANCH OF WICASA

CA STUDENTS REGIONAL CONFERENCE 2014

Organised by

Western India Regional Council

CA STUDENTS REGIONAL CONFERENCE 2014

Fees: 400/- Per Participant.(Inclusive of Conference Material, Tea, Break Fast & Lunch for both days).

Fees to be paid by way of Cash /Cheque or DD. Cheque / DD should be drawn in favour of ‘VASAI BRANCH OF WIRC’ Payable at Mumbai.

Branch OfficeAmruta Building, IndraLok Phase-II, New Golden Nest Road, Bhayandar(East) Thane-401 105.

Contact:-022-65568900/65568901 Email-Id:- [email protected] Website:- www.vasai-icai.org.

Students interested in participation in the cultural programme are requested to register with

CA Dayaram Paliwal, Chairman-Vasai WICASA, (9820331010) Pinky Mistry, Vice-Chairperson- Vasai WICASA (8286287730)

Notes :1. Students are invited to contribute papers for various technical sessions.2.TWO best papers shall be selected for each subject out of total papers received &

these two paper writers will get chance to present their paper in respective Technical Session at the conference day.

3. All paper writers, whose papers are selected for presentation at the Students Conference shall be reimbursed Registration Fees. Selected Paper Writers Shall also be provided accommodation by Vasai Branch.

4. Interested students should submit a soft copy of the paper at the Vasai Branch of WIRC of ICAI by e-mail at [email protected]/[email protected]

positively by 23rd July, 2014.5. Please provide your complete address, Phone number and email id. 6. Paper Writer can participate only in 2 Conclaves/Conventions/Conferences

organised by the BOS in a year and declaration to this effect should be submit alongwith softcopy of paper.

Bringing Excellence Together

*(subject to confirmation)

*

*

Organised by : Western India Regional CouncilHosted By : Vasai Branch of WIRC of ICAI & Vasai Branch of WICASA

Bringing Excellence Together

Day – 1 Saturday, 2nd August, 2014Technical Session-I (CA. Tarun Ghia, CCM)

Taxation & Auditing Software Tools Recent Changes in Information Technology Key Note Eminent Faculty To be Effective Communicator

Technical Session-II (CA. Nihar Jambusaria, CCM)

Companies Act 2013- Responsibilities of Auditors Companies Act 2013-Accounts & Auditing

Technical Session-III (CA. Prafulla Chhajed, Vice Chairman-BOS)

Goods Service Tax Direct Tax Code

Cultural Evening - DJ Rock

Day – 2 Sunday, 3rd August, 2014Technical Session-IV (CA. Jay Chhaira, CCM)

Indian Economy Expectation from New Government

Key Note (Shri. Vijay Kapur, Director-BOS) CA. Partner in Nation BuildingKey Note (Success Strategy) CA. V. Murali, CCMTechnical Session-V (CA. Shiwaji Zaware, CCM) Networking and Marketing Fundamental Business AspectsValedictory Session and Prize Distribution (CA.Uttam Prakash Agarwal, Past President–ICAl)

Notes :1. Students are invited to contribute papers for various

technical sessions.2. TWO best papers shall be selected for each subject out of

total papers received & these two paper writers will get chance to present their paper in respective Technical Session at the conference day.

3. All paper writers, whose papers are selected for presentation at the Students Conference shall be reimbursed Registration Fees. Selected Paper Writers Shall also be provided acco-mmodation by Vasai Branch.

4. Interested students should submit a soft copy of the paper at the Vasai Branch of WIRC of ICAI by e-mail at [email protected]/[email protected] positiv-ely by 23rd July, 2014.

5. Please provide your complete address, Phone number and email id.

6. Paper Writer can participate only in 2 Conclaves/Conventions/Conferences organised by the BOS in a year and declaration to this effect should be submit alongwith softcopy of paper

Conference CA. M Devaraja Reddy Chairman: Chairman – BOSConference CA. Prafulla Chhajed, Co-Chairman: Vice ChairmanConference CA. Anil Bhandari, Chairman – WIRCDirectors CA. Kishor Vaishnav, Chairman – Vasai Branch of WIRCConference CA. Satyanarayan Mundada Co-Directors Chairman – WICASA CA. Dayaram Paliwal Chairman, Vasai Branch of WICASAConference CA. Julfesh Shah Co-Ordinators: Vice Chairman – WIRC CA. Shruti Shah Secretary – WIRC CA. Girish Kulkarni Treasurer – WIRC CA. Umesh Mestry Vice-Chairman – Vasai Branch CA. Preksha Jain Secretary & Treasurer – Vasai Branch CA. Ramanand Gupta Imd. Past Chairman CA. Vimal Agrawal Committee Member – Vasai Branch CA. K. B. Kothari Committee Member – Vasai Branch CA. Sumeet Doshi Committee Member – Vasai Branch

Vasai Branch of WIRC of ICAIAmruta Building, IndraLok Phase-II, New Golden Nest Road, Bhayandar (East)

Thane-401 105. Tel : 022-65568900/65568901Email-Id:- [email protected] Website:- www.vasai-icai.org.

Members of Vasai Branch of WICASAC Pinky Mistry – Vice Chairperson 8286287730C Kalpesh Dhakad – Secretary 9769332789C Lalit Sharma – 9930532531 C Avani Mehta – 8286146334C Rakesh Pareek – 9022686560


DIRECT TAXES LAW UPDATE

— Compiled by — CA. Hemant R. Shah | e-mail: [email protected] |9869011148 SUPREME COURT JUDGEMENTS:1) Sanjeev Lal vs. CIT (Supreme Court)Section 2(47) / section 54: If an agreement to sell is entered into within the prescribed period,

there is a transfer of some rights in favour of the vendee. The fact that the sale deed could not be executed within the time limit owing to supervening problem is not a bar for exemption U/s 54.Consequences of execution of the agreement to sell are very clear and they are to the effect that the appellants could not have sold the property to someone else. In practical life, there are events when a person, even after executing an agreement to sell an immoveable property in favour of one person, tries to sell the property to another which would not be in accordance with law because once an agreement to sell is executed in favour of one person, the said person gets a right to get the property transferred in his favour by filing a suit for specific performance and therefore, without hesitation it can be said that some right, in respect of the said property, belonging to the appellants had been extinguished and some right had been created in favour of the vendee/transferee, when the agreement to sell had been executed. A right in respect of the capital asset, viz. the property in question had been transferred by the appellants in favour of the vendee/transferee on 27/12/2002. The sale deed could not be executed for the reason that the appellants had been prevented from dealing with the residential house by an order of a competent court, which they could not have violated. As held in Oxford University Press vs. CIT [(2001) 3 SCC 359] a purposive interpretation of the provisions of the Act should be given while considering a claim for exemption from tax and one can very well interpret the provisions of Section 54 read with Section 2(47) of the Act, i.e. definition of “transfer”, which would enable the appellants to get the benefit U/s 54 of the Act. HIGH COURT DECISIONS1) CIT vs. Devdas Naik (Bombay High Court)Section 54/54F: Two flats, even though acquired under different agreements & from different sellers, are one residential unit, if there is a common kitchen:The Department’s argument that the law laid down by the Tribunal in ITO v/s Sushila M. Jhaveri 107 ITD 327 (Mum)(SB) and confirmed by this Court in CIT v/s Raman Kumar Suri (Income Tax Appeal No.6962 of 2010, decided on 27/11/ 2012) on the availability of exemption U/s 54 is applicable only when the house purchased is a single unit and not where two flats, one acquired in the assessee’s name and another jointly in the names of the assessee and his wife but under two distinct agreements and from different sellers have been taken into consideration is not acceptable. Though these flats were acquired under two distinct agreements and from different sellers, the map of the general layout plan as well as internal layout plan in regard to flat Nos.103 and 104 indicate that there is only one common kitchen for both the flats. The flats were constructed in such a way that adjacent units or flats can be combined into one. The admitted fact is th at the flats were converted into one unit and for the purpose of residence of the assessee. Thus, though the acquisition of the flats may have been done independently but eventually they are a single unit and house for the purpose of residence.2) Partha Sarathi Das Vs. UOI & Others (Odisha High Court)Hon’ble Odisha High Court has granted stay on the recovery of late fees charged U/s 234E of the Income Tax Act, 1961. In separate cases Hon’ble Bombay, Rajashthan, Kerala and Karnataka High Court have already stayed the recovery proceeding U/s 234E of the Income Tax Act,1961 till the final verdict in the case. TRIBUNAL DECISIONS1) Lodha Builders Pvt Ltd vs. ACIT (ITAT Mumbai)Though accepting/repaying loans/advances via journal entries

contravenes section 269SS & 269T, penalty cannot be levied if the transactions are bona fide & genuine. The time limit for penalty U/s 271D & U/s 271E is governed by section 275(1)(c) & not 275(1)(a).Other amendments/developments:BUDGET-20141) Disallowance for non-payment or non-deduction of TDS restricted to 30%:Under section 40(a)(ia) of the Act, in case of payments made to resident, the deductor is allowed to claim deduction for payments as expenditure in the previous year of payment, if tax is deducted during the previous year and the same is paid on or before the due date specified for filing of return of income U/s 139(1) of the Act.In case of non-deduction or non-payment of TDS from certain payments made to residents, the entire amount of expenditure on which tax was deductible is disallowed U/s 40(a)(ia) for the purposes of computing income under the head “Profits and gains of business or profession”. The disallowance of whole of the amount of expenditure results into undue hardship.In order to reduce the hardship, it is proposed that in case of non-deduction or non-payment of TDS on payments made to residents as specified U/s 40(a)(ia) of the Act, the disallowance shall be restricted to 30% of the amount of expenditure claimed.2) CBDT revises the monetary limits for filing Appeals to ITAT, High Court and SC:The CBDT has issued Instruction No. 5/2014 dated 10/07/2014 whereby, with a view to reducing litigation, the monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and the Supreme Court, have been upwardly revised.3) Revised Profession Tax Rates in Maharashtra w.e.f. 01/07/2014Maharashtra Government in its Additional Budget presented on 5th June, 2014, has increased minimum salary limit for Profession Tax from Rs.5000/- to Rs.7500/- which has come into effect from July, 2014 on salary payable in August, 2014. (Schedule of rates of tax on professions, trades, callings and employments after Budget can be seen at : http://taxguru.in/goods-and-service-tax/revised-profession-tax-rates-maharashtra4) One of the much-discussed controversial matters pertaining to the related party provisions under the new Company Law is whether the ‘related party’ be construed in relation to the transaction or the company. Another issue of debate has been with regard to the applicability of Section 188 to the existing contracts approved under the 1956 Act.Section 188, second proviso of the Companies Act, 2013 prohibits any ‘related party’ to exercise voting rights on a resolution seeking members’ approval to any related party transactions, rationale being to avoid any hollow compliance of getting special resolution approval through voting by interested parties. Further, Section 2(76) of the Act defines ‘related party’ to include the specified categories of persons in relation to the company. The point of debate is whether ‘related party’ prohibited from voting refers to only those related parties which are concerned or interested in the proposed contract/arrangement or it includes all the related parties covered in the definition.To address this grey area, MCA has now issued a clarification vide circular No.30/2014 on July 17, 2014. It is clarified that the term ‘related party’ be construed relating to the contract or arrangement for which special resolution is being proposed.Circular also contains two more important clarifications stating that -1) All contracts/arrangements enteredinto by complying with Section 297 of 1956 Act will prevail until expiry of its original term. Section 188 of the new Act shall be complied with only if any modification is made to such contract/arrangement on or after April 1, 2014; and2) the transactions arising out of compromises, arrangements and amalgamations dealt under the provisions of the old/the new Act will not attract Section 188 of the new Act.


— Compiled by — Haresh P. Kenia|e-mail:[email protected] |9821351838

Cost Inflation Index for Financial Year 2014-15 notified – Capital Gain Section 48 [223 TAXMAN (st) 137]

The Central Government vide notification no. 31/2014, notified the Cost of Inflation Index as “1024” for the Financial Year 2014-15.

DTAA – Agreement for Exchange of Information with respect to taxes of Foreign Countries. – Principality of Liechtenstein [223 TAXMAN (st.) 138]

The Central Government vide notification no. 30/2014 dated 06/06/2014, directs that the agreement between the Government of Republic of India and the Government of the Principality of Liechtenstein, for the exchange of information on the tax matters as set out in the agreement, shall have effect for all request made in respect of taxable period beginning on or after 1st April, 2013. The agreement between the Government of Republic of India and the Government of the Principality of Liechtenstein for the exchange of information of tax matters was signed at Berne, Switzerland on the 28th day of March, 2013.

Income Tax Form – ITRs - Amendment in rule 12 – Substitution of Forms ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 [223 Taxman (st.) 13]

The CBDT vide notification no. 28/2014 dated 30/05/2014 makes the Income Tax (Sixth Amendment) Rule 2014. It amends rule 12 of the Income Tax rules. It substitutes Form ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7. It inserts the requirement of furnishing of report u/s. 10AA, 44DA, 50B & 115VW of the Income Tax Act.

Constitution of Special Investigation Team (SIT) for purpose of bringing back unaccounted monies unlawfully kept in bank accounts abroad [223 TAXMAN (st.) 9]

The central government in the Ministry of Finance, Department of Revenue, in pursuance of the order dated 04/07/2011 of Hon’ble Supreme Court of India passed in Write Petition No. 176 of 2009, vide Notification F. No. 11/2/2009- AD.E.D., dated 29/05/2014, constitutes the Special Investigation Team under the Chairmanship of Hon’ble Mr. Justice M. B. Shah, former Judge of Supreme Court. The terms of references of the Special Investigation Team will be as per the order dated 04/07/2011.

The notified corporate body for the purpose of Section 36 (1) (xii) of the Income Tax Act, 1961 [223 TAXMAN (st.) 1]

The central government vide notification no. 25/2014 dated 29/04/2014 notifies, for the purpose of Section 36 (1) (xii) of the Income Tax Act, 1961, the National Bank for Agriculture

and Rural development (PAN : AAACT4020G) established under section 3 of National Bank for Agriculture and Rural Development Act, 1981 for providing and regulating credit and other facilities for promotion of agriculture & rural development. This is subject to the following conditions, namely : -

i. the expenditure, claimed as deductible under the Income Tax Act, 1961, is incurred for the objects and purposes authorized by the National Bank for Agriculture and Rural Development Act, 1981 (NO. 61 of 1981), under section 38 of the said act.

ii. Such expenditure is not in the nature of capital expenditure;

iii. Such expenditure is not eligible for deduction under any other provision of the Income Tax Act, 1961; and

iv. A separate account of the expenditure claimed under the said clause is maintained by the National Bank for Agriculture and Rural Development.

This notification is applicable w.e.f. A.Y. 2013-14 onwards, relevant to the F.Y. 2013-14 in which is application seeking notification u/s. 36 (1) (xii) of the Act was filed.

Deduction u/s. 80-IA (4) (iii) of the Income Tax Act – eligibility of deduction u/s. 80-IA for unexpired period [223 TAXMAN (st.) 1]

The CBDT vide circular no. 10/2014 dated 06/05/2014, in the context of determining the eligibility criteria for availing deduction u/s. 80-IA (4) clarified that if an enterprise or undertaking develops an infrastructure facility, industrial park or special economic zone, as the case may be, and transfers it to another enterprise or undertaking for operation and maintenance in accordance with the proviso to clause (i) or clause (iii) of sub section (4) of section 80-IA of the Act and this transfer is not by way of amalgamation or demerger, the transferee shall be eligible for the deduction for the unexpired period. [For example, if the ‘transferor’ has availed of the deduction for development of an infrastructure facility for 6 years and thereafter transfers it to the ‘transferee’ for operation and maintenance; such transferee will be eligible for deduction for remaining 4 years.] It is further clarified that profit for the purposes of deduction in the case of transferee shall also be computed in accordance with sub sections (5) to (10) section 80-IA of the Act.

The CBDT clarified in the context of proviso to clause (i) and clause (iii) of sub section (4) of section 80-IA which deals with the situation where operation & maintenance of infrastructure facility or operation & maintenance of industrial park/SEZ respectively is transferred to another enterprise in the manner provided therein and the transferee undertaking can availed deduction for the unexpired period.

DIRECT TAXES LAW UPDATE


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Residential Refreshment Course Cum Industrial Visit held on 14th & 15th June 2014 at Mahabaleshwar

Seminar on New Companies Act 2014 held on 30th June 2014

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