creativity with commitment - vasai-icai.org for the month of july 2016.pdf · creativity with...

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

CREATIVITY WITH COMMITMENT

Celebrating CA Day & Flag Hoisting held on 1st July 2016 at Branch Premises, Bhayander (East)

Tree Plantation held on 1st July 2016 at Our Lady of Vailankanni High

School, Bhayander (West)

Medical Camp Organized on 10th July 2016 at Ostwal Ornate, Bhayander (East)

Honouring Senior Members held on occasion of CA Day 1st July 2016 at Branch premises, Bhayander (East)

Photo – Gallery

Honouring CA. D. P. Revawala Honouring CA. Radhey Shyam Inani Honouring CA. Pramod Dhamankar Honouring CA. K. B. Kothari

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


Dear Professional colleagues,

As anticipated, National Conclave for CA Students’ 2016 was another success. It was informative, knowledge rich and well received by our students. Thank you to WICASA team, WICASA Chairman CA Ankit Rathi and to all who volunteered their time and energy to make it another fantastic Vasai Branch event. I extend my gratitude to the Chairman and Vice-Chairman, Board of Studies ICAI, CA Babu Abraham Kallivayalil and CA Dhiraj Kumar Khandelwal for bestowing us with this opportunity and helping in creating a conference of this scale and magnitude.

It was the month of holidays yet we saw bountiful participation from our members and students in all the branch events. We have had some great meetings, hugely successful students’ conference, some wonderful social events topped off with one of our best attended CA Day celebrations. We successfully completed the Professional Training on Information System Audit on July 10, 2016 jointly with Committee on Information Technology. We held seminars on ICDS & CARO 2016 jointly with Bhayander CPE Study Circle and on Income Declaration Scheme 2016 which was attended by Shri. S. K. Gupta (Principle of CIT), Smt. Sudha Ramachandra and Mrs. Snehal Karle on June 19, 2016 and June 29, 2016 respectively. We conducted many workshops on ICDS on 6th, 8th, 10th, 13th & 15th of June, 2016 jointly with Vasai-Virar CPE Study circle.

We also celebrated International Yoga Day on June 21, 2016 with our members and their families which was jointly hosted by Bharat Vikas Parishad Bhayander, Bhayander Chapter of WIRC of ICSI, Art of Living, Jesal Park Resident Association and Ways Charitable Trust. It was fun, healthy and engaging event as we got to witness every member in his not so professional attire going on their toes and trying to perform a Surya Namaskar. The key word being “Trying”!!!

Not only that we also had some CA Women members dancing to the tunes of Marwadi folk song in celebrations of CA Day organized at Bhaidas Auditorium on July 01, 2016. Our branch celebrations included Honouring Senior CA members, Planting trees and Setting up medical camps for all.

We have many more events coming up. Don’t forget to mark your calendars to attend the following events in the month of August:

1) Felicitation of New CA (May 2016 attempt) & Seminar on Investor Awareness Programme on 14th Aug 2016.

2) 1st Women International Residential Refresher Course (IRRC) At “SINGAPORE” organized by Women Members’ Empowerment Committee of ICAI and hosted by Vasai Branch of WIRC of ICAI.

3) Certificate Course on Forensic Accounting and Fraud Prevention organized by Committee on Information Technology and hosted by Vasai Branch of WIRC of ICAI from 8th Oct to 13th Nov 2016.

4) Certificate Course on Concurrent Audit of Banks organized by Internal Audit Standards Board of the ICAI and hosted by Vasai Branch of WIRC of ICAI from 19th Nov to 4th Dec 2016.

On a very positive note, letters of thanks and appreciation are pouring in from students and members benefiting from our programmes. Our branch is touching the lives and lifting the spirits of many within our professional community and the society. We can all be proud of ourselves.

CHAIRMAN’S COMMUNICATIONMANAGING COMMITTEE

CA. Vimal Agrawal Chairman 9320617447

CA. Nitesh Kothari Vice Chairman 9833860870

CA. Bhanwar Borana Secretary 8291454999

CA. Mukesh Sharma Treasurer 9321160020

CA. Ankit Rathi WICASA Chairman 9029059911

CA. Sumeet Doshi Committee Member 9869525956

CA. Xavier Rajan Committee Member 9371720027

CA. Hemant Shah Committee Member 9022405230

CA. Lalit Bajaj Branch Nominee 9867692321

EDITORIAL BOARD

CA. Vimal Agrawal Chairman 9320617447

CA. Bhanwar Borana Secretary 8291454999

CA. Xavier Rajan Committee Member 7755950027

With Warm Regards

CA. Vimal Agrawal Chairman



Forthcoming – ProgrammesFORTHCOMING PROGRAMMES FOR MEMBERSDate Seminar on Timings Venue Speakers Co-ordinators Fees CPE14th Aug 2016 Felicitation of Newly

Qualifed CA10.00 am to 1.00 pm

New Zaika, Bhayander (West)

– CA. Mukesh Sharma 9321160020 CA. Xavier Rajan 9371720027

Free —

14th Aug 2016 Seminar on Invetsor Awareness Programme

10.00 am to 1.00 pm

New Zaika, Bhayander(West)

Eminent CA. Mukesh Sharma 9321160020 CA. Xavier Rajan 9371720027

Free 2 Hrs

8th Oct to 13th Nov 2016 (Every Sat & Sun)

Certificate Course on Forensic Accounting and Fraud Prevention

9.30 am to 5.30 pm

Green Court Club (GCC), Mira Bhayander Road, Mira Road (East)

Eminent CA. Nitesh Kothari 9833860870 Young Member ` 20,000 & Others

` 25,000

20 Hrs

19th Nov to 4th Dec 2016

Certificate Course on Concurrent Audit of Banks

9.30 am to 5.30 pm

Green Court Club (GCC), Mira Bhayander Road, Mira Road (East)

Eminent CA. Mukesh Sharma 9321160020 CA. Xavier Rajan 9371720027 CA. Hemant Shah 9022405230

` 12,500 30 Hrs

FORTHCOMING PROGRAMMES FOR STUDENTSDate Seminar on Timings Venue Speakers Co-ordinators Fees CPE30th July 2016 Quiz & Elocution

Contest5.00 pm to 7.00 pm

Branch Premises, Indralok phase-II, Bhayander (East)

— CA. Ankit Rathi 9029059911 Free —

Venue GCC Club, Mira Bhayander Road, Mira Road (E)Day & Date 19th Nov. to 4th Dec. 2016 (Every Saturday & Sunday)Timing 9.30 am to 5.00 pmCPE 30 hrs.Fees Delegate fee ` 12,500 per delegate payable by cheque/DD in

favor of “Secretary, ICAI” payable at Delhi and should be sent to Vasai Branch at “Amruta Building, Indralok Phase-II, New Golden Nest Road, Bhayander (East), Dist- Thane. Bhayander-401105” along with duly filled registration form available on link: http://resource.cdn.icai.org/29878iasbform19476.pdf.

Course Chairman CA. Mukesh Singh Kushwah (Chairman, Internal Audit Standards Board)

Course Directors i. CA. Anil Satyanarayan Bhandari (CCM, ICAI & Vice-Chairman, IASB)ii. CA. Tarun Jamnadas Ghia (CCM, ICAI & Member, IASB)

Course Co-ordinator CA. Vimal Agrawal (Chairman, Vasai branch of WIRC of ICAI)

For Registrations please contact

Mr. Khushmat Jain (Branch Incharge, Vasai Branch of WIRC of ICAI)Contact No. : 07208099778, (022) 65568900/01/02.Email : [email protected]

Two Hundred Thirty Ninth Batch of the Certificate Course on Concurrent Audit of Banks

Organized by :Internal Audit Standards Board of the ICAI

Hosted ByVasai Branch of WIRC of ICAI

Programme Details

Certificate Course on Concurrent Audit of Banks

Date Topics

November 19, 2016

Loans and Advances

Book Debts and Stock AuditPrudential norms on Income Recognition, Assets Classification and Provisioning pertaining to Advances

November 20, 2016

Concurrent Audit ProceduresTreasury and Investment Function Part ITreasury and Investment Function Part IIImplementation of Basel Capital Regulatory Requirements in India.

Disclosure Requirements

Bankers’ Panel Discussion (GMs of Banks to Address)

November 27, 2016

Legal and Regulatory Framework

KYC norms & Obligation of banks under Prevention of Money Laundering Act (PMLA 2002)Effective Concurrent Audit

Diligence Reports of Banks

December 3, 2016

FOREX & TRADE

Fraud Detection, Classification and Reporting

Discussion on Case Studies on Frauds Occurred in Banking Industries

December 4, 2016

Audit in CBS Environment

Software Usage in Banks – CBS Demonstration

Objective Assessment

Programme Schedule

Venue Green Court Club (GCC), Mira Bhayander Road, Mira Road (East)

Day & Date 8th, 9th, 15th, 16th, 22nd, 23rd Oct and 5th, 6th, 12th & 13th Nov 2016 (Every Sat & Sun) (Except 30th & 31st Oct due to Diwali vacation)

Timing 9.30 am to 5.00 pmCPE 20 hrs.For Registration please find below link :Young Member(Below 5 years as on date of enrollment)

http://online.icai.org/ccm.html?progid=1287

Other Member http://online.icai.org/ccm.html?progid=1288

Organized by : Committee on Information Technology, Hosted By : Vasai Branch of WIRC of ICAI

Certificate Course on Forensic Accounting and Fraud Prevention

Course Chairman CA. Atul Kumar Gupta Chairman, Committee on Information Technology Mobile: 9810103611 E-mail : [email protected]

Course Co-ordinator CA. Vimal Agarwal Chairman, Vasai branch of WIRC of ICAIContact No : 9320617447E-mail : [email protected]

For Details, Please contact :

Mr. Khushmat JainBranch Incharge, Vasai Branch of WIRC of ICAI Contact No. : 07208099778, (022) 65568900/01/02Email : [email protected]

Note : Limited Seats 40 only



Campus – Placement Programmes



Governmenton – A Route to Reduce Tax LitigationsCA. Monu VermaMobile No. : 9892063171Email : camonuverma @gmail.com

The finance minister stated in his Budget speech that government acknowledges the role of taxpayers in nation building, each rupee of tax contributed helps for better infrastructure and social well-being. Taxation is a major tool available to Government for removing poverty and

inequality from the society.

In order to be answerable to the future, finance minister with an intention to not lose this opportunity, focused on nine categories in his tax proposal. “Reducing litigation and providing certainty in taxation” is one of the “pillars” of his tax proposals. This thought process is preserved in the various amendments proposed to the Finance Budget 2016-2017.

In order to move towards a better economy development with non-controversial approach and to enable the Government to realise its precious tax revenues in a speedy manner the finance minister has broadcasted many different Tax Resolution Schemes in relation to black money, litigations, tax arrears and specified taxes.

1. Income Declaration Scheme (IDS), 2016:

The government with a realistic attitude to remove black money from the economy, announced a onetime opportunity by opening a limited period Compliance Window for domestic taxpayers from June 1st 2016 to declare undisclosed income or income represented in the form of any assets.

To clear up the past tax misconduct tax totalling to 45% needs to be compensated on such declaration (tax at the rate of 30% plus a ‘Krishi Kalyan Cess’ of 25% on the taxes payable and a penalty at the rate of 25% of the taxes payable).As per the scheme, declaration of undisclosed income in the form of assets is to be made at Fair Market Value of such assets as on 1st June, 2016.

The declarant will enjoy immunity from prosecution and no scrutiny or enquiry will be held under the Income Tax Act or the Wealth Tax Act, for the declared income or assets.

However, no declaration or benefit can be enjoyed for income or assets on which assessments or reassessment or survey proceedings are pending or any charges are pending under the Black Money Act, 2015 or for persons covered under Special Court Act, 1992. The scheme also prevents its misapplication by refutation of immunity if there is any misrepresentation or suppression of facts in the declaration.

2. Dispute Resolution Scheme (DRS):

Litigation is taken as a curse and burden as it creates a hostile environment with additional compliance cost for tax payers and administration cost for the Government. Tremendous backlog of

pending tax litigation has been a major area of concern for both the Revenue and the Assessee. In order to diminish the pending hearings DRS was proposed and announced.

A taxpayer who has an appeal pending before the Commissioner (Appeals) can settle the case by paying the disputed tax and interest up to the date of assessment order; and penalty up to 25% in cases where tax exceeds Rs. Ten lakh. A pending penalty can also be resolved on payment of 25% of the minimum penalty leviable, provided the tax and interest as per the assessment order is paid.

Litigation arising out of retrospective amendments and pending at any level can be settled on payment of only tax arrears, thus the interest and penalty if any will be waived. But the taxpayer has to withdraw any writ petition, pending appeal or arbitration, conciliation or mediation proceedings, and furnish a declaration that he will not pursue further remedy before being able to avail the benefits under DRS.

There are certain exclusions and invalidations prescribed under DRS which are similar to those prescribed under IDS. The advantage offered by DRS is that the taxpayer can buy peace by paying tax up front and saving on the interest, penalty and even litigation cost.

3. Existing penal actions under the law:

Levy of heavy penalty for concealment of income has over the years resulted in large number of disputes and a subject matter of heavy litigation. Till now the Income Tax officer had discretion to levy penalty at the rate of 100% to 300% of the tax sought to be evaded.

It was proposed and announced to amend the entire scheme of penalty by providing different graded penalties in order to reduce the discretionary power of the tax officers. The penalty rates will be 50% of tax in case of under reporting of income and 200% of tax when there is misreporting of the facts. Diminution of penalty is also introduced in certain cases where taxes are paid and appeal is not filed.

Given the difference in the quantum of penalties, one may visualize that the next generation of litigation on tax penalties would revolve around characterising the default into under-reporting or misrepresentation of income.

As another tax payer friendly measure was announced to provide a time limit of one year for disposing petitions of the tax payers seeking waiver of interest and penalty. In order to remove back log of cases 11 new benches of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has been created.

While there is always scope for improvement, the steps taken by the government are expressive, bold and progressive. The approach adopted is to tackle current tax litigation issues, although only time will reveal the success thereof.



Goods and Service TaxCA. Harshal D FifadraMobile No. : 9702943003 Email : [email protected]

GST –The metamorphic reform of IndiaIntroduction:The reform process is a continuous and evolving process changing as per the requirements and need of the hour. The reform process started back

in 1986 when the concept of MODVAT was introduced. GST is a tax system, which is accepted, governed and preferred all over the world. In India, the process of moving towards the global tax system i.e. GST has been gradual and steady.

Like, the concept of VAT was introduced in all the states of India from 2003 to 2008. MODVAT was scrapped and a new concept called as CENVAT was integrated w.e.f. 2004. Similarly, the concept of service tax witnessed a paradigm shift from positive list of taxation to negative list of taxation from July 2012.

With changing times and with changing needs of the business, it was felt necessary by CBEC that the existing Indirect Tax structure of India should be revamped and be matched with the global and unilateral system of Taxation called as GST. Accordingly, post conclusion of the Central Council elections in the month of May 2014, the Government introduced the 122nd Constitutional Amendment Bill (herein referred to as “CAB”) in the month of December 2014.The CAB was passed in the Lok Sabha on 6 May 2015. The CAB, 2014 was introduced in Rajya Sabha since May 2015 in various periodical parliamentary sessions; however, it was not passed due to various lacunas and defaults in the draft law.With a view to garner support from the stakeholders of GST, the government released four reports in the public domain in the month of October 2015. The four reports on key business processes included, registration, payment, return and refund. Further, a leaked version of the draft model law on GST was found in the public domain on 3 December 2015. Post the leaked version of the draft model law, a full proof model GST law was introduced officially in the public domain by the finance ministry of India on 14 June 2016.The present article is a sincere attempt by the author to give an insight to the reader in relation to draft model law and how the business processes shall be required to be changed and revamped to match up to the requirements of the most metamorphic reform of India i.e. GSTAll about the Model GST LawThe model GST law has prescribed for the following:

1. 2 acts i.e. CGST Act, 2016 and IGST Act, 2016;

2. 29 chapters within CGST Act, 2016 and 11 chapters within IGST Act, 2016;

3. 179 Sections within CGST Act, 2016 and 34 Sections within IGST Act, 2016;

4. 4 Schedules to the CGST Act, 2016 and

5. GST Valuation Rules, 2016

The Model law though has been in the public domain; however, it is still in its raw form since it is subject to changes and suggestions as may be received by the empowered committee of GST. In the entire model law, there are certain areas where the government needs a re-thinking or the government needs to prescribe provision in relation to the same. In the entire model law, the following things are observed:

a. The phrase “as may be prescribed” is used 167 times;

b. The phrase “as may be notified” is used 11 times;

c. The phrase “as may be provided” is used 2 times and

d. The phrase “on the recommendation of the council” is used 38 times.

From the above, it quite evident that the model GST law is not in its pure and complete form. The model law shall be revisited and shall be re-drafted considering the recommendations and suggestions/representations received from various stake-holders of India.

Barring the above statistics of the model GST law, the drafters and the regulators of the reform has made a good effort in combining the various CENTRAL Levies and STATE Levies. The new levy shall replace almost all the Indirect Taxes prevalent in India. In particular, it would replace the following Indirect Taxes:

Table 1

Sr. No Central Level State Level1 Central Excise Duty State VAT2 Additional Duties of Excise Sales Tax3 Service Tax Entertainment Tax4 Counter-veiling duty (CVD) Luxury Tax5 Special Additional Duty (SAD) Taxes on lottery, betting

and gambling6 Central Sales Tax (CST) Entry Tax not in lieu of

Octroi7 Excise duty on medicinal and

toiletries and preparationsSurcharges and Cesses

Conceptual Framework1. Levy

1.1. The model law prescribes the levy of CGST/SGST or IGST on supply of goods/services. The concepts shall as manufacture, sales and provision of services shall no longer be valid.

1.2. The GST shall be a destination-based levy i.e. the transaction shall be taxed in the receiving state.

1.3. Section 3 defines the term supply as “supply includes all forms of supply such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course of furtherance of business.”



1.4. At present, it appears that the supply of goods and supply of services shall be taxed at a uniform rate of GST. Section 3 prescribes that the following transactions shall be chargeable to GST:

a. Outward supply of goods;

b. Outward supply of services;

c. Inward supply of goods;

d. Inward supply of services;

e. Import of services

1.5. The concept of reverse charge shall be continued on certain services as may be prescribed.

1.6. In case of intra-state supplies, SGST and CGST shall apply.

1.7. In case of inter-state supplies, IGST equivalent to the rate of CGST + SGST shall apply.

2. Registration of the Business

2.1. The model law prescribes for registration in every state where a person has a business in such state.

2.2. A new concept of business vertical wise registration is introduced.

2.3. The registration shall be PAN based.

2.4. Any person who is registered in any of the earlier law as mentioned in Table 1 shall not be required to take fresh registration under GST unless the person has opened a new place of business in a new state which was not registered under any of the earlier law.

2.5. Turnover limit for the purpose of registration = INR 4,00,000 for north eastern states.

2.6. Turnover limit for the purpose of registration = INR 9,00,000 for any state other than north-eastern states.

2.7. The above mentioned turnover shall include the aggregate turnover i.e. All India PAN basis.

2.8. The limit of turnover for the purpose of availing the benefit of composition scheme is INR 50,00,000.

3. Input Tax Credit (ITC)

3.1. The model law prescribes for availing the benefit of ITC on all the taxable supplies subject to certain ineligible credits.

3.2. The ITC shall be calculated and be availed by the person based on the credit as available in the electronic ledger of the person.

3.3. The model law allows the availment of ITC on accrual basis provided it have been availed within a period of 1 year from the date of tax invoice.

3.4. The ITC shall be availed on fulfillment of the following conditions:

a. The person should be in possession of a valid Tax Invoice;

b. The person should have received goods/services;

c. The tax as charged on the invoice has been deposited to the credit of the appropriate government by the person collecting such tax;

d. The person has furnished the return as prescribed under Section 27.

3.5. The concept of Input Service Distributor (ISD) shall continue, however, the model law provides ITC distribution by an ISD only in respect of services.

3.6. The assessee shall be eligible to utilize the balance of ITC in the following manner:

IGST Input CGST Input SGST Input

1. IGST Output 1. CGST Output 1. SGST Output

2. CGST Output 2. IGST Output 2. IGST Output

3. SGST Output

3.7. The concept of reversal of ITC as has been provided under Rule 6(3) of the CENVAT Credit Rules, 2004 shall continue.

4. Returns

4.1. Every registered taxable person shall be liable to furnish the details of outward supplies made by him whether taxable or not electronically by 10th of the month succeeding to the month to which such supply pertains.

4.2. The ISD dealers shall be required to upload the details of the inputs distributed by 13th of the month succeeding to the month to which such supply relates.

4.3. What is outward supply for a person is an inward supply for the person receiving it. All registered taxable person shall be eligible to verify, validate, modify or delete (if required) including the credit notes and debit notes by the 15th of the month succeeding to the month to which such supply relates.

4.4. The composition dealers shall be required to upload the details of inward supplies by 18th of the month succeeding to the month to which such supply pertains.

4.5. The return shall be required to be uploaded by 20th of the month succeeding to the month to which such supply relates.

4.6. If there is no transaction then NIL return is mandatory.

4.7. The outward supplies viz-a-viz inward supplies shall be matched online by the Goods and Service Tax Network. (GSTN)

4.8. The duplication of claims shall be communicated to the assessee in the month of discrepancy.

Goods and Service Tax



4.9. Any excess claims of ITC shall be communicated to the assessee in the month succeeding to the month of discrepancy.

4.10. The dealer shall be required to provide the prescribed details of the annual return by 31 December of the year succeeding to the financial year to which it pertains.

Certain Important Points

1. All the dealers shall be subject to dual control i.e. Central and the state.

2. All the e-commerce dealers shall be required to take registration under GST.

3. The e-commerce dealers shall be required to deduct TCS at prescribed percentage.

4. Intangible property and actionable claim shall be deemed to be termed as “service”

5. Every taxable transaction shall be subject to levy of GST at a revenue neutral rate not exceeding 17-18%.

6. Every taxable transaction shall be subject to levy of GST at a value as has been prescribed under the GST Valuation Rules, 2016 i.e. at Transaction Value

7. For determining the place of supply, the Place of Supply Rules has been prescribed.

8. For determining the time of supply, two separate rules, one for time of supply of goods and one for time of supply services has been prescribed.

9. The credit notes or debit notes in respect of a particular transaction shall be required to be issued on or before 30 September of the year succeeding to the year to which the transaction pertains or before filing the annual return.

10. TDS shall be required to be deducted if the value of supply in a particular contract exceeds the value of INR 10,00,000.

11. The time limit for issuance of a Show Cause Notice is not provided, however, the time limit for issuance of an order in respect of a particular financial year shall be as follows:

Five years – In cases involving fraud, collusion, misrepresentation, etc. Three years – In other cases

12. The personal hearing to be granted in case of adjudication of SCN shall be adjourned not more than 3 times.

13. In case of dispute between intra-state supply and inter-state supply, applicable tax shall be required to be paid in case of reverse position is adopted along with interest. Further, the tax wrongly paid shall be required to be claimed as refund.

14. In case of appeal to be filed, the pre-deposit shall be prescribed percentage of the total amount in dispute (tax + interest + penalty)

Certain Lacunas and Issues

1. The term supply includes the term barter; exchange within its term, however, the GST Valuation Rules, 2016 fails to provide the valuation mechanism in respect of such transactions.

2. While Schedule I in the model GST law prescribes the matters to be treated as supply without consideration, however, there is big question mark as to whether the transaction in the nature of local branch transfer and inter-state branch transfer shall be included within the term “supply”.

3. Nowhere in the model law is there mentioning of specific levies in case of cigarettes, other such products.

4. Whether the concept of buy one get one free shall prevail i.e. whether they shall be subject to levy of GST?

5. The term goods have been defined in Section 2(48) and which includes the term securities within it. However, the term securities are not defined. This leads one to a question as to whether the securities held in demat form shall be taxable or not?

6. The term taxable person has been defined; however, the term non-taxable person has not been defined.

7. Section 21 of the Model law prescribes that the registration of a person shall be cancelled in the following situations:

a. A person who has not furnished the returns for a continuous period of 6 months;

b. In case of voluntary registration, if such registered person has not commenced business within 6 months from the date of registration.

In the current case, what does commencement of business shall mean?

Conclusion

Without prejudice to anything as mentioned above, there are certain steps, which are required to be undertaken for enabling him/her to be GST ready. These are as under:

1. Overhauling of the entire IT System since the credit mechanism shall be online and will be matched on an invoice-to-invoice basis.

2. Pro-actively analyze the GST impact on the existing business transactions and restructuring of the same so that the bottom line is not hit badly.

3. Design alternative business strategies.

4. Improvisation and iteration of the existing businesses processes.

5. Enter into fresh agreements with the customers/suppliers to avoid litigation and to avoid any cracks or breaks in the supplier/customer relationship.

Goods and Service Tax



CA. Haresh P. KeniaMobile No. : 9821351838E-mail : [email protected]

SECTION 139 OF THE INCOME-TAX ACT, 1961 - RETURN OF INCOME - VERTIFICATION OF TAX RETURNS FOR ASSESSMENT YEARS 2009-10, 2010-11, 2011-12, 2012-13, 2013-14 AND 2014-15 THROUGH EVC WHICH ARE PENDING DUE TO NON-FILING OF ITR-V FORM AND PROCESSING OF

SUCH RETURNS

CIRCULAR NO.13/2016 [F.NO.225/46/2016-ITA.II], DATED 9-5-2016

The Central Board of Direct Taxes (‘CBDT’), in exercise of powers under section 119(2)(a) of the Act, in case of returns for Assessment Years 2009-10, 2010-11, 2011-12, 2012-2013, 2013-2014 and 2014-2015 which were uploaded electronically by the taxpayer within the time allowed under section 139 of the Act and which have remained incomplete due to non-submission of ITR-V Form verification, hereby permits verification of such returns also through EVC. Such verification process must be completed by 31.08.2016. As an alternative to EVC, the taxpayer is allowed to send a duly signed copy of ITR-V to the CPC, Bengaluru by this date by speed post. In such cases, CBDT also relaxes the time-frame for issuing the intimation as provided in second proviso to sub-section (1) of section 143 of the Act and directs that such returns shall be processed by 30.11.2016 and intimation of processing of such returns shall be sent to the taxpayer concerned as per the laid down procedure. In refund cases, while determining the interest, provision of section 244A(2) of the Act would apply.

INCOME DECLARATION SCHEME RULES, 2016 - DECLARATION OF DOMESTIC BLACK MONEY FROM 1-6-2016 TO 30-9-2016

NOTIFICATION NO.SO 1831(E) [NO.33/2016 (F.NO.142/8/2016-TPL), DATED 19-5-2016 [AS CORRECTED BY NOTIFICATION NO. SO 1950(E) [(No.44/2016 (F.No.142/8/2016-TPL)] , DATED 2-6-2016]

The Income Declaration Scheme, 2016 incorporated as Chapter IX of the Finance Act 2016 provides an opportunity to all persons who have not declared income correctly in earlier years to come forward and declare such undisclosed income(s).

Under the Scheme, such income as declared by the eligible persons, would be taxed at the rate of 30% plus a ‘Krishi Kalyan Cess’of 25% on the taxes payable and a penalty at the rate of 25% of the taxes payable, thereby totalling to 45% of the income declared under the scheme.

The scheme shall remain in force for a period of 4 months from 1st June, 2016 to 30th September, 2016 for filing of declarations and payments towards taxes, surcharge & penalty must be made latest by 30th November, 2016.

The scheme shall apply to undisclosed income whether in the form of investment in assets or otherwise, pertaining

to Financial Year 2015-16 or earlier. Where the declaration is in the form of investment in assets, the Fair Market Value of such asset as on 1st June 2016 shall be deemed to be the undisclosed income under the Scheme. However, foreign assets or income to which the Black Money Act 2015 applies are not eligible for declaration under this scheme. Assets specified in the declaration shall be exempt from Wealth tax. No Scrutiny and enquiry under the Income-tax Act or the Wealth tax Act shall be undertaken in respect of such declarations. Immunity from prosecution under the Income-tax Act and Wealth Tax Act is also provided along with immunity from the Benami Transactions (Prohibition) Act, 1988 subject to transfer of asset to actual owner within the period specified in the Rules. Non-payment of total taxes, surcharge & penalty in time or declaration by misrepresentation or suppression of facts shall render the declaration void. The circumstances in which the Scheme shall not apply or where a person is held to be ineligible are specified in section 196 (Chapter IX) of the Finance Act, 2016. Non-declaration of undisclosed income under the Scheme, will render such undisclosed income liable to tax in the previous year in which it is detected by the Income tax Department. Other penal consequences will also follow accordingly.

SECTION 48 OF THE INCOME-TAX ACT, 1961 - CAPITAL GAINS - COMPUTATION OF - NOTIFIED COST INFLATION INDEX UNDER SECTION 48, EXPLANATION (V)

NOTIFICATION NO. SO 1948(E)[NO. 42/2016 (F. NO. 142/5/2016-TPL)], DATED 2-6-2016

The Cost Inflation Index notified for Financial Year 2016-17 is 1125.

INCOME-TAX (FOURTEENTH AMENDMENT) RULES, 2016 - AMENDMENT IN RULE 8D

NOTIFICATION NO. SO 1949(E) [F.NO.370142/7/2016-TPL], DATED 2-6-2016

In exercise of the powers conferred by section 295 read with sub-section (2) of section 14A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: In the Income-tax Rules 1962, in rule 8D,—

I. for sub-rule (2), the following sub-rule shall be substituted, namely:—

“(2) The expenditure in relation to income which does not form part of the total income shall be the aggregate of following amounts, namely:—

(i) the amount of expenditure directly relating to income which does not form part of total income; and

(ii) an amount equal to one per cent of the annual average of the monthly averages of the opening and closing balances of the value of investment, income from which does not or shall not form part of total income:

Provided that the amount referred to in clause (i) and clause (ii) shall not exceed the total expenditure claimed by the assessee.”

II. sub-rule (3) shall be omitted.

Direct Taxes - Law Update



(L-R) : Ms. Snehal G. Karle (ACIT, CIR-2,Thane), CA. Hemant Shah (Committee Member-Vasai Br.), CA. Vimal Agarwal (Chairman, Vasai Branch of WIRC), Smt. Sudha Ramachandra (Joint CIT, Range-2, Thane) & CA. Sandip Jain (Convenor-Bhayander CPE Study Circle) at the dais.

CA. Vimal Agarwal (Chairman, Vasai Branch of WIRC) presenting bouquet to Smt. Sudha Rama-chandra (Joint CIT, Range-2, Thane)

CA. Hemant Shah (Committee Member-Vasai Br.) presenting bouquet & Memento to Ms. Snehal G. Karle (ACIT, CIR-2,Thane)

CA. Sandip Jain (Convenor- Bhayander CPE Study Circle) presenting bouquet & memento to CA. Dilip Phadke (Speaker)

Seminar on Income Declaration Scheme 2016 held on 9th July at Branch Premises, Bhayander (East)

Group Photo taken during the Smt. Sudha Ramachandra (Joint CIT, Range-2, Thane) & Ms. Snehal G. Karle (ACIT, CIR-2,Thane) visited at branch office.

Photo – Gallery



Photo – Gallery

(L-R) : CA. Hemant Shah (Committee Member-Vasai Br.), CA. Kamlesh Saboo (Secretary, WIRC of ICAI), CA. Nitesh Kothari (Vice Chairman, Vasai Br.), Smt. Sudha Ramachandra (Joint CIT, Range-2, Thane), Shri. S. K. Gupta (Principle CIT-1 Thane), Ms. Snehal G. Karle (ACIT, CIR-2, Thane), CA. Vimal Agarwal (Chairman, Vasai Branch of WIRC), CA. Lalit Bajaj (Branch Nominee & RCM), CA. Vishnu Agarwal (RCM) at the dais

CA. Kamlesh Saboo (Secretary, WIRC of ICAI) presenting Memento to Shri. S. K. Gupta (Principle CIT-1 Thane)

CA. Vishnu Agarwal (RCM) presenting Memento to Smt. Sudha Ramachandra (Joint CIT, Range-2, Thane)

CA. Lalit Bajaj (Branch Nominee & RCM) presenting Memento to Ms. Snehal G. Karle (ACIT, CIR-2, Thane)

CA. Vimal Agarwal (Chairman, Vasai Branch of WIRC) presenting bouquet to Shri. S. K. Gupta (Principle CIT-1 Thane)

CA. Nitesh Kothari (Vice Chairman, Vasai Br.) presenting bouquet to Smt. Sudha Ramachandra (Joint CIT, Range- 2, Thane)

Seminar on Income Declaration Scheme 2016 held on 29th June 2016 at New Zaika, Bhayander (West)

CA. Hemant Shah (Committee Member-Vasai Br.) presenting bouquet to Mr. B.N.Kamlapure



(L-R) : CA. Bhanwar Borana (Secretary, Vasai Br.), CA. Ankit Rathi (Chairman, Vasai Branch of WICASA), CA. Anil Bhandari (Central Council Member), Mr. N. D. Kundu (Speaker) & CA. Nitesh Kothari (Vice Chairman, Vasai Br.) at Inaugural Session

Professional Training on Information System Audit course held from 28th May to 10th July 2016 at Old Zaika, Bhayandar (West)

Participants

(L-R) : CA. Nitesh Kothari (Vice Chairman, Vasai Br.), CA. Dhiraj Khandelwal (Central Council Member), CA. Vimal Agarwal (Chairman, Vasai Branch of WIRC) & CA. Pradeep Agrawal (WICASA Chairman WIRC) addressing the participants

Group Photo

Speakers

CA. Priti Sikdar

CA. Rajendra Sardesai

CA. Rajendra Thakkar

Dr. Omkar Nath

Mr. Jitendra Sardesai

Mr. N. D. Kundu

Photo – Gallery



Seminar on ICDS & CARO held on 19th June 2016 at New Zaika, Bhayander (West)

Photo – Gallery

(L-R) : CA. Hemant Shah (Committee Member-Vasai Br.), CA. Bhanwar Borana (Secretary, Vasai Br.), CA. D. P. Revawala (Senior Member), CA. Vimal Agarwal (Chairman, Vasai Branch of WIRC), CA. Tarun Ghia (Central Council Member), CA. Lalit Bajaj (Branch Nominee & RCM), CA. Nitesh Kothari (Vice Chairman, Vasai Br.) & CA. Amit Agarwal (Dy. Convenor Bhayander CPE Study Circle) at the Inauguration Session

CA. Vimal Agarwal (Chairman, Vasai Branch of WIRC) presenting Memento to CA. Tarun Ghia (Central Council Member) also seen CA. Nitesh Kothari (Vice Chairman, Vasai Br.), CA. Bhanwar Borana (Secretary, Vasai Br.) & CA. Amit Agarwal (Dy. Convenor Bhayander CPE Study Circle) at the dais

CA. Vimal Agarwal (Chairman, Vasai Branch of WIRC) presenting Memento to CA. Durgesh Kabra (Past Chairman–WIRC) also seen CA. Sumeet Doshi (Committee Member-Vasai Br.), CA. Pramod Dhamankar (Past Chairman-Vasai Br.) & CA. D. P. Revawala (Senior Member)Participants

Photo taken at Inauguration Session in the presence of CA. Shriniwas Joshi (Past Central Council Member), CA. Kalpesh Katira (Speaker), CA. Nitesh Kothari (Vice Chairman, Vasai Br.), CA. Xavier Rajan (Committee Member-Vasai Br.) Vasai Virar CPE Study Circle Team - CA. Rajesh Kotak (Convenor), CA. Anitha Vishwanathan (Deputy Convenor), CA. Bala Iyer (Jt. Dy. Convenor)

CA. Bharat Majithia (Member) presenting memento to CA. Nihar Jambusaria (CCM) also seen CA. Vimal Agarwal (Chairman, Vasai Branch of WIRC), Vasai Virar CPE Study Circle Team CA. Rajesh Kotak (Convenor), CA. Anitha Vishwanathan (Deputy Convenor), CA. Bala Iyer (Jt. Dy. Convenor)

Participants

Workshop on ICDS & CARO held on 6th to 15th June 2016 at Hotel Kubera, Vasai Road (West)

CA. Kalpesh Katira

CA. Nihar Jambusaria

CA. Atul Suraiya

CA. Bhardesh Doshi

CA. Dharan Gandhi

Speakers



To

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Photo – GalleryInternational Yoga Day held on 21st June 2016 at Jesal Park Chowpatty, Bhayander (West)

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