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June 2014

Dhanbad Branch of CIRC of ICAI

Dear Professionals,

Warm Greetings to All of you,

The new government has been formed and the cabinet has been rolled out.

Amongst all the ministers, C.A. Piyush Goyal deserves special mention, as

he is from our own CA fraternity. He is the Minister of State with Independ-

ent Charge for Power, Coal and New & Renewable Energy. I had the oppor-

tunity to hear him in the International Conference held in Kolkata, last year.

He was sheer joy to hear. Congratulations and our Best wishes to him.

It looks as if it will be a hard opening session for the new government, with temperatures

touching new records in the northern part of the country and, the monsoon, playing cat and

mouse, the going will be tough. A lot depends on the monsoon in the Indian Economy and bad

monsoon can be a spoiler in the upbeat mood of the country in general.

Last month, we successfully organised Two Day Workshop on Service Tax on 24th and 25

th of

May, 2014 which was well attended and appreciated by all the participants. The speakers from

Delhi and Kolkata spoke very well on the subject. Our very own speaker from Dhanbad Sri Asim

Kumar Mandal, Superintendent of Service Tax, also spoke and his session was also very en-

riching. The workshop provided the much needed updates on the topics and clarified many of

our doubts regarding the topic.

The Batches of GMCS and ITT have been launched and the classes have already started. In this

regard, I want to bring to everyone’s knowledge that at the local level there is shortage of CA

faculty for the classes. Our young CA members who are interested in taking classes in GMCS,

ITT or OT, are requested to come forward, and get themselves enrolled, This will help our stu-

dents, as a CA faculty has better understanding of many of the topics covered in these courses

and faculty fees is also very lucrative.

Finally, CIRC has planned Blood Donation Camp on the 29th of June, 2014 at the Regional Level.

We will be also organising the Blood Donation Camp. We request all the members of our to par-

ticipate in the camp in good numbers and donate blood. We can encourage our friends, family

members, articles and clients to donate blood, so that the Camp is a success. A whole lot of

activities is planned on CA Day i.e. 01st of July, 2014 starting from flag hoisting, rally, felicita-

tion of our senior members, tree plantation and distribution of Literacy Kits to the differently

able children. The detailed program schedule shall be circulated very soon.

Wtih regards,

C.A. ANANT BHARTIA

Being in a BPO or lets please yourself KPO is cool but for how long. Until diabetes catches up with you. Till you

get hypertension. Okay okay if you are fit fine and cheerful for how long, till the rupee depreciates further and the

job arbitrage still remains. Many a time we do not apply for PSU jobs thinking that the selection process is not

transparent or the vacancies are too less or the salary is less or the job may be in remote places or the environ-

ment there I mean work culture is not good or that self depreciating opinion – I am not good enough.

Let me take these one by one.

Selection process is not transparent:

Let me assure you that after being myself part of this from behind the table to in front of it the selection

process is most fair. It is in low level jobs in sarkari where rigging happens not in Officer /Managerial level jobs

for CA/CMA/ICWA. Let me give you a figure for power placement / rigged one ,it can at best be 2-3 in 100. That

also when all else is equal. I mean the approach guy is also a CWA/CA/CMA and has same experience.

Vacancies are too less:

Yes it is true that in PSUs there are always limited vacancies giving chance to every sector of the society

like GEN, SCs, STs, OBCs, PHs and Minorities. So that most eligible candidate from all the above sectors get

prospect of employment through highly competitive selection process. If we look very minutely in the selection

process and eligibility criterion of the PSUs vacancies we get the idea of fair and transparent selection. As the

limited vacancies is concerned, there is continuous vacancies at yearly basis which undermines the perception of

less vacancies in PSUs.

Salary is too less:

Now that can be a good reason. Prima facie. However PSU jobs do provide a decent salary and some PSU

nearly 50 % more of other PSU. However the trade off is with location. Nevertheless even being in a Mini Ratna

PSU if one totals all things –salary slip and non salary slip things like lease entitlement, PRP, Medical Cover,

Reimbursements things are good enough. In a Navratna & Maharatna things are much better.

Remote Places posting:

Not true. Chances are 50 % of you getting in metros. Another 40% of 'A' CLASS CITIES AND ONLY 10 %

of Remote. In Navratnas this is 80 % of 'B' CLASS CITIES ,10 % 'A' CLASS and another 10% METROS. As you

go higher and higher in the ladder you will invariably be in a metro/'A' CLASS CITY which good chances are can

be your home town.

Job Opportunities for Professionals in Blue Chip PSU’s

ARTICLE

CA PRATIK GANERIWAL

Job Environment:

There are no thumb rules for this. Like MNC and good pvt companies some eggs are good and others rot-

ten We cannot put all in one basket. Work culture varies from company to company. But most of PSUs provide

good working culture/environment with few exceptions.

As discussed above, PSUs provide a huge opportunity to professionals such as CA, CWA, CS. In the

changing scenario of economic activities in India the PSUs are also trying their best to keep themselves in

competitive market. For that they require their every financial activities updated so that they can show how

strong or where they stand in the market of competition as the government is also tightening the situation of

business. Most of the PSUs are now listed in stock market, after listing every company has to produce the fi-

nancial health of the company and for this they need huge CA, CWA and CS professionals.

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ARTICLE

Recovering money from wilful defaulters could get easier for banks. The Central Board of Direct Taxes (CBDT)

has told all chief income tax commissioners to provide public sector banks with information about assets listed

in the wealth tax returns of such defaulters.

The communication (No. F. 328/10/2014-WT), a copy of which is with HT, was issued on Wednesday. A wilful

defaulter is defined as someone who defaults on a loan despite having the capacity to repay it. So far, the I-T

department had not been sharing this information as it was considered privileged.

It is fairly common for wilful defaulters to mortgage overvalued property. “Often, mortgaged machinery is old

and defunct, having little resale value. But they are shown as new and, therefore, saleable in our books. These

defaulters also own several valuable assets that the lending bank doesn’t know about. The new circular will al-

low us to go after such assets,” said a senior executive at a public sector bank.

Since banks can’t legally attach properties that haven’t been mortgaged, the information in wealth tax returns

will allow banks to approach the Debt Recovery Tribunal (DRT) and courts for orders to sell these assets and

recover loans that are in default.

“A transparent protocol and legislative framework need to be put in place to provide confidential information

in public interest under compelling circumstances,” said Rahul Garg, leader, direct tax, PwC India.

Public sector banks are stuck with non-performing assets worth ` 1.64 lakh crore, a more than four-fold rise

over the NPA figure of ` 39,000 crore in 2008.

Source:- Hindustan Times, New Delhi, 02-06-2014

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ARTICLE

IT Dept. to Share Wealth Tax Returns Data

of Defaulters with Bank

Investors without Permanent Account Number (PAN) can now put as much as Rs 50,000 in mutual funds in

cash every year. SebionThursday said it was increasing the limit for cash investments to Rs 50,000 from Rs

20,000.The move is aimed at helping mutual funds sell products in small towns and rural areas, where transac-

tions happen in cash rather than through banks.

Sebi has been pushing mutual funds to spread to towns outside the top-15 cities. Some large fund houses made

a representation to Sebi that raising the cash limit would help them tap the smaller towns. Mutual fund officials

said the move will benefit only some asset management companies as majority of the industry still prefer inves-

tors with a PAN and bank account. "We have stayed away from this arrangement because of the various issues

of handling cash," said ArvindSethi, Managing Director & CEO at Tata Asset Management.

Many mutual funds are wary about investors using this system to bring in unaccounted money. Also, redemp-

tions are processed only through bank accounts, making it mandatory for investors to open one even if they buy

mutual fund units in cash. "Logistically, it is a nightmare unless a mutual fund does not have deep pockets or an

existing rural network," said the chief marketing officer with a private mutual fund.

Source :- Economic Times, New Delhi, 23-05-2014

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ARTICLE

SEBI raises Cash Transaction Limit

in MFs to Rs. 50000/-

Section 173 of the New Companies Act, 2013 states as follows with respect to meeting of the Board:-

At least one meeting in a period of 12 months has to be physically attended by every director;

Director will Vacate the office if he is absent from all Meetings of the Board during 12 months with

or without leave of absence (Attending one BM in a period of 12 months is must).

No provision for proxy at Board Meetings.

Separate meeting of Independent Director once in a year.

Meeting may be called at shorter notice condition with the presence of one Independent director

should be made mandatory for board meetings called. In such meetings the mandatory presence of

at least one Independent Director. If even one Independent Director is not present in the emergency

meeting, then decisions taken at such meetings should be subject to ratification by at least one Inde-

pendent Director.

This would mean that a meeting of the Board may be called at shorter notice to transact urgent business subject

to the condition that at least one independent director, if any, shall be present at the meeting thus it means

for calling meeting at shorter notice will not be possible without Independent Director.

Punishment for contravention of Section 173- The Company shall be punishable with fine which shall not be

less than one lakh but which may extend to five lakh rupees.

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ARTICLE

Meeting of Board (Section 173) (Companies Act 2013)

Corporate India, which has been lobbying to make the new Companies Act less onerous, has the Government’s

undivided attention. The Corporate Affairs Ministry is examining closely all concerns raised by the industry

and is open to making changes to the Act and/or the Rules.

“We are going through the suggestions, point by point and clause by clause. We will put it all in a tabular form

for us to understand. We will see if modification or tweaking of rules is sufficient or if there is a requirement for

an amendment,” Minister for State for Finance and Corporate Affairs Nirmala Seetharaman told Business

Line . The new Companies Act, replacing the 1956 law, was passed last year. Many of its provisions are yet to

be implemented. India Inc has criticised the new Act for lacking clarity and being too stringent. In the absence

of clear clarifications from the Ministry, companies have been interpreting the provisions in different ways.

Source :- Business Line, New Delhi, 24-06-2014

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ARTICLE

Government Ready to Amend Companies Act 2013

Come tax filing season and you can always trust the income tax department to come up with something new!

Revamped return forms, a widening of the compulsory e-filing net and exemptions from filing returns for cer-

tain categories of assesses were the salient changes in the last few seasons. This year, the department has asked

for more information/disclosures in the ITR forms applicable to salaried individuals, especially in the ITR 2

forms. So if you are among those who usually file returns only at the eleventh hour, get off to an early start this

year to understand the changes. It may save you a lot of headache as the deadline nears.

Detailed disclosure

If you are a salaried individual and are filing ITR 2, be ready for a detailed disclosure of the exemptions you

are claiming under the ‘Income from Salary’ head in ‘Schedule S’. While the earlier version of the ITR 2 re-

quired only the total of allowances exempt under Section 10 to be shown, you now need to break this down into

elements such as leave travel concession, house rent allowance, tax paid by employer on non-monetary perqui-

sites and other allowances. Your Form 16 should be able to help you here. But there is a risk that many compa-

nies may not give the break-up in Form 16. So it makes sense to check with the accounts department of your em-

ployer right away.

A second change is in the section dealing with bank account details. Remember receiving a cheque last year for

your tax refund? Well, you might be lucky. Many of you could have encashed your refund cheque, but there

could have been others whose cheques were lost in transit or whose names were misspelt, making them run

from pillar to post before the amount reached their hands. To do away with these hassles, the department has

done away with the cheque option. Refund amounts will compulsorily be credited to your bank account from

this year onwards. Provisions have also been made for the new deduction under Section 80EE. Under this, up

to ?1 lakh can be claimed as deduction for interest payments on home loans borrowed by certain first-time

home buyers. So if you fulfil the conditions, remember to fill in the details in this column to lower your tax lia-

bility.

Similarly, remember the ?2,000 tax rebate for those with total income less than ?5 lakh? A column for this re-

bate (Section 87A) has been added too.

Cautious on capital gains Much of the changes in ITR 2 are in the capital gains section, so much so that this segment has been mainly re-

sponsible for increasing the length of ITR 2 from 10 pages last year to 12 pages now! For example, the new

forms require disclosure of long-term capital gains under each asset class separately, unlike last year. So

whether you earned your long-term gains from the sale of land/building, from sale or bonds/debentures, or

from sale of listed securities/units/zero-coupon bonds has to be stated separately.

Moreover, if you claim exemption from capital gains based on certain investments such as a new house or un-

der the Capital Gain Accounts scheme, details regarding these are also sought. A schedule for set-off of current

year capital losses against current year capital gains is provided additionally from this year. With annexures to

the return done away with in recent years, such detailed disclosure requirements could have been incorporated

to make it easier for authorities to act on the information, if necessary.

Source :- Business Line, New Delhi, 22-06-2014

ARTICLE

New Tax Reforms Seeks more Disclosures

ANNOUNCEMENT

BLOOD DONATION CAMP

ANNOUNCEMENT

PHOTOGRAPH

Inaugural of 2 Days Workshop on CA Sushil Agarwall in 2 Days Workshop

View of Members in Workshop CA Narayan Agarwal in 2 Days Workshop

CA Hemant Jajodia in Workshop Mr. Asim Kumar Mandal (Superintendent Custom

& Exise) in Workshop