newsletter- may 2018 - baroda-icai.org · cpe cpe 2 2 congratulations ca. abhishek nagori...
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Volume - IV | May 2018
Baroda Branch of Western India Regional Council ofThe Institute of Chartered Accountants of India
The Institute of Chartered Accountants of India(Setup by an Act of Parliament)
EditorialTeam
Contents
CA. Dhiren Parikh 93762 11099Chairman
CA. Hitesh Agrawal 99980 28737
CA. Krunal Bhrambhatt 78748 11551
CA. Vin d Pahilwani 98980 78176
CA. Pradeep Agrawal 98985 60967
CA. Arpan Dodia 98983 83530
CA. Abhijit J Kotecha 98254 83173
CA. Manoj Sahu 90990 94500
CA. Rikin Patel 88667 09509
Vice-Chairman
Secretary
Treasurer
Ex-officio
IP - Chairman
Committee Member
Committee Member
Committee Member
o
CA. Dhiren Parikh CA. Manoj Sahu
CA. Rahul Parikh CA. Nayan R Kothari
CA. Neena Patel CA. Gunjan Agrawal
CA. Jigita Shah CA. Dhruti Vaidya
CA. Parth Patel CA. Chintan Popat
Forthcoming Events ... 2
Direct Tax Updates ... 3
Judicial Decisions on Indirect Taxes ... 4
...
Carry Forward of Cesses UnderGST ...
Power, Democracy and Leadership ... 7
FAQ on ICDS - 4 Part II
Snap Gallery ... 11
GST Update 5
6
... 8
Pg. No.
ManagingCommittee
Chairman Communication
Dear Members,
Gujarat and Maharashtra are an integral part of our Western IndiaRegional Council. These two leading states of our country whichhave contributed tremendously to the growth of our Nation,celebrated their Foundation Day on 1st May. Being Members of thisregion WIRC, we enjoy the fruits of this progress. Let us take a leaffrom history and do our own personal bit to contribute to our Nation.
First month of new fiscal year April started with various programmelike Workshop on GST, GST Clinic, Full Day Seminar on InternalAudit & Internal Control, Workshop on Income-tax and Half DaySeminar on Taxation of RERA. Baroda Branch has also started 6thBatch of Certificate Course on ConcurrentAudit of Banks.
Direct Tax Refresher Course (DTRC) is one of the most awaitedprogramme of Baroda Branch. We are organising DTRC in themonth of May covering interesting topics with eminent faculties.Apart from DTRC we have workshop on Income-Tax, Lecturemeeting on Mastering Insolvency Code andAllied Money RecoveryLaws & Professional Opportunities for CAs, Lecture meeting onAccounting and Taxation- Convergence or Divergence. Membersare requested to take full advantage to upgrade professionalknowledge.
Members are requested to renew membership with institute byremitting the annual membership/certificate of practice fees, whichbecome due for payment on 1stApril, 2018 and need to be paid on orbefore 30th September, 2018. Details of various fees are published innewsletter.
We are glad that like every year, this year also members from ourBaroda Branch have been co-opted at various committees of WIRC.I congratulate all the members who have been co-opted at WIRCcommittees.
As always, we at Baroda Branch have been at the forefront inconducting multiple interactive seminars and study circle meetingsto cover a wide spectrum of subjects ranging from GST, Income Taxand International Taxation, IndAS, Internal Audit, InformationTechnology etc. Members are also requested to suggest any topic ofacademic interest so as to arrange programme on that.
The month of May apart from being the hottest month of the year isalso the month of endurance for our students who have to face examsduring this month. May is the month when students shall beappearing for the IPCC and CA Final Exams. I wish to convey mybest wishes to all the students.
With the recently concluded exams of the schools and colleges,members will have quality time to spend with their families and tomake the most of the summer vacations. We believe that "Quality oflife is enriched if we have a happy balance between work andfamily". I convey my best wishes for a happy summer vacation to allthe members and their families.
With warm regards,
Chairman
CA. Dhiren Parikh
e-Newsletter(Circulated by Email)
Baroda Branch of WIRC of ICAI2
Branch Events
HrsCPE 6
Day & Date :
Time :
Venue :
Friday, 27.04.2018 & Thursday, 03.05.2018
5.30pm to 8.30pm
Faculty :
Fees :
CA.Virat Bhavsar, Vadodara
CA. Jaimish Patel, Vadodara
CA. Sanket Bakshi, Vadodara
For Members: Rs. 550 /- & For Non Members:Rs. 650/- including 18% GST for 2 days
ICAI Bhawan, Vadodara
2 Days Workshop on Income-Tax
HrsCPE 2
Day & Date :
Time :
Venue :
Tuesday, 01.05.2018
6:00 pm to 8:00 pm
Faculty :
Fees :
CA. Rajkumar Adukia
Rs. 250/- including 18% GST
ICAI Bhawan, Vadodara
Lecture Meeting on MasteringInsolvency Code & Allied Money RecoveryLaws and Professional Opportunities for CAs
Hrs
Hrs
CPE
CPE
2
12
Day & Date :
Time :
Venue :
Saturday, 05.05.2018
3:00 pm to 5:00 pm
Faculty :
Fees :
CA. N.C. Hegde, CCM
Rs. 250/- till 04.05.2018 afterwards Rs. 350/-including 18% GST
ICAI Bhawan, Vadodara
Day & Date :
Venue :
Friday, 25.05.2018
ICAI Bhawan, VadodaraWorkshop on Accounting and Taxation-Convergence or Divergence
CA Students Talent Search-2018
Direct Tax Refresher Course (DTRC)
Fees :
CPE :
Rs. 550/- including 18% GST per Session
Rs. 1500 /- till 10.05.2018 afterwardsRs.1700/- including 18% GST for Full Series
ICAI Bhawan, Vadodara
Total 12 Hrs (4 Hrs per Session)
Venue :
Topic Speaker
Recent Changes & Developments in Penalties CA. Sanjeev Lalan,and Prosecution regime under Income Tax Act Past Chairman WIRC,
Mumbai
Saturday, 12.05.2018 | Time : 2:00 pm to 4:00 pm
Saturday, 12.05.2018 | Time : 4:30 pm to 6:30 pm
Saturday, 19.05.2018 | Time : 2:00 pm to 4:00 pm
Recent Tribunals / High Court & Supreme Adv. Manish J Shah,Court judicial decisions Ahmedabad
Taxation regime for Cash Transactions including CA. Jagdish Punjabi,handling of issues relating to Demonetization Mumbai
Recent important developments in International CA. Nihar Jambusaria,Taxation & Transfer Pricing Central Council
Member, Mumbai
Current Issues in Corporate Taxation Including CA. Pradip Kapasi,MAT with Case Studies Mumbai
Recent Issues in Penny Stocks Transactions and CA. Mukund Bakshi,Bogus Purchases Vadodara
Saturday, 19.05.2018 | Time : 4:30 pm to 6:30 pm
Saturday, 26.05.2018 | Time : 2:00 pm to 4:00 pm
Saturday, 26.05.2018 | Time : 4:30 pm to 6:30 pm
WICASA Events
Day & Date :
Venue :
Monday, 27.05.2018
ICAI Bhawan, Vadodara
CPT Mock Test
Day & Date :
Venue :
Saturday & Sunday, 02 & 03.06.2018
Sama & Manjalpur Sports Complex
Day & Date :
Venue :
Friday & Saturday, 29 & 30.06.2018
Pandit Dindayal Hall, Ajwa Road, Baroda
Spocul
CA Students Conference
Study Circle EventsDay & Date :
Time :
Topic :
Faculty :
Fees :
Venue :
Thursday, 10.05.2018
6.00 pm to 8.00 pm
MSMEDAct.
CA. Kejal Pandya
NIL for Study Circle members and Rs. 250/-(including 18% GST for non members)
ICAI Bhawan, Vadodara
Day & Date :
Time :
Topic :
Faculty :
Fees :
Venue :
Thursday, 17.05.2018
6.00 pm to 8.00 pm
Checklist for Finalisation ofAccounts andAudit
CA. Rashmikant Thakkar
NIL for Study Circle members and Rs. 250/-(including 18% GST for non members)
ICAI Bhawan, Vadodara
Hrs
Hrs
CPE
CPE
2
2
C o n g r a t u l a t i o n s
CA. Abhishek NagoriInternational Taxation
CA. Ashok ThakkarInternal Audit
CA. Nayan KothariBanking, Insurance &Pension
CA. H M RaoPublic Finance andGovernment Accounting
Baroda Branch of WIRC of ICAI
is proud to share that these
CAs of Baroda are co-opted in
various Committees of WIRC
CA. Chandresh I ShahCo-op. Society (Gujarat)
CA. Tejas PurohitCo-op. Society (Gujarat)
CA. Nitesh KhethanCo-op. Society (Gujarat) CA. Hetang Pandya
Corporate & Allied laws
Jointly with Study Circle
Baroda Branch of WIRC of ICAI3
1. New Forms and Rules for Returns
Central Board of Direct Taxes has notified Income
Tax Return Forms for the Assessment Year 2018-
19. Observations on such forms:
a) Simplified one page can be filed by
an having income
Individuals not covered by
above,
If they have business income,
and such persons.
b) can furnish details of
for the purpose of
c) Forms require breakup of
d) is claimed under section 54 to 54GB,
are also
required.
e) Goods and services tax identification number
and to be
stated in all cases including those under
presumptive income scheme.
Cases not covered by presumptive income scheme
and also not covered by audit under section 44AB
required to give
in the Profit and Loss
account, with reference to
ITR Form-1
individual, ordinarily resident,
upto Rs.50 lakhs from salary, one house property
and other sources.
and HUFs not having business income
to file ITR Form-2.
ITR 4 is if it is assessable on presumptive basis
ITR 3 is for the remaining
Non-residents, one
foreign BankAccount refund.
salary separately
stating allowances, perquisites etc.
If exemption
dates of transfer of capital assets
(GSTIN) turnover reported under GST
more details relating to total of all
items of expenditure
their treatment under
Contributed by :can be reached at [email protected]
CA. Narendra Hindocha
Direct Tax Updates
GST
unregistered
entities
composition scheme, exempt
Form 3CD will be changed
Delayed filing to attract penalty details
restriction of claim
as per section 38(2), of depreciation
presumptive taxation
details of
secured/unsecured loans, advances, fixed assets,
capital account etc.
law. These details to give breakup of such
total expenditure so as to separately show
aggregate of transactions with
as also aggregate of transactions with
Registered entities. Transactions with Registered
entities also to show separately transactions with
suppliers under
transactions etc.
It would appear that to
incorporate these details.
f) of which
are to be given in the Return.
g) Forms provide for reporting of
on assets not
exclusively used for business
h) Taxpayers opting for
scheme under section 44AD, 44ADA or 44AE
apart from details of creditors, debtors, stock-in-
trade and cash balance, also to give
As per 3 separate Notifications dated 5th April
2018, registration, statement upload and all other
facilities for Form No. 61, 61A and 61B have been
migrated from e-filing portal to the Reporting
Portal at https://report.insight.gov.in with effect
from 9th April 2018. The Reporting Portal is
being implemented under Project Insight of
Income Tax Department and it will serve as one-
stop-window for your third party reporting related
requirements. The New Reporting Portal provides
enhancements over present functionalities on the
2. New process for filing Statement of specified
Financial Transactions etc.
e-filing portal
of India settled decades old
controversy relating to housing societies in its
order in Civil Appeal No.2706 OF 2018 Income
Tax Officer, Mumbai Versus Venkatesh Premises
Cooperative Society Ltd. and several other
societies. The question before the Court was
whether certain
from its members i.e.
are
based on the
The decision was in favour of the
assessees and accordingly, such receipts are
As per Notification No. 10/2018 dated
19.02.2018, Charitable or religious trust or
institution can apply for registration under section
12Aonline. This will require filing of Form-10A
as also other documents which were otherwise
filed manually. .
Circular dated 2nd April 2018 gives details of the
action plan for the first quarter of financial year
2018-19. Some of the details are as under:
- Disposal of 25 (20
in International Taxation cases) per Assessing
Officer, of limited scrutiny, set aside
assessment, reopened assessment u/s 147 and
OCM scrutiny. The assessments should be
3. Receipts by housing societies for transfer fees
etc
4. Online registration of Trusts
5. Action plan
Supreme Court
receipts by co operative
societies, non occupancy
charges, transfer charges, common amenity
fund charges and certain other charges,
exempt from income tax doctrine of
mutuality.
not
liable to tax.
assessments in at least cases
Baroda Branch of WIRC of ICAI4
Contributed by :can be reached at [email protected]
CA. Anirudh Sonpal
Judicial Decisions onIndirect Taxes
I. CLASSIFICATION
1.1 Watery coconut, which becomes dry coconut of
copra in due course, is an oil seed under the CST
Act, and liable to 4% tax; it is not classifiable
under the category of Fruits, other than Coconut.
The Honourable High Court did not accept the
plea of the appellant that watery coconut cannot be
classified under the category of ‘coconut’.
[Shiva Traders vs DC of Comm Tax – Chhatisgarh
HC]
1.2 While allowing the petition, the Honourable High
Court held that Blood Collection Monitors and
Blood Storage Refrigerators were to be classified
as Medical Equipment under the KVAT Act since
these were intricately connected with medical
treatment and cannot be said that these were used
only for storage of blood and hence are not part of
medical equipment.
[Aditya Surgical Ltd vs State of Karnataka –
Karnataka HC]
2.1 In view of the decision of the Honourable Supreme
Court in the matter of Larsen & Toubro Ltd, the
Honourable High Court held that the assessee was
eligible for refund of Service Tax paid on erection,
commissioning and installation services forming
part of the works contract, which could not be
vivisected prior to 1-7-2007.
[Sheth & Sura Eng Pvt Ltd vs UoI – Bombay HC]
2.2 Without obtaining any stay, intention to file appeal
by the revenue authorities is no ground to withhold
refund to the asseesee.
[Delton Cables Ltd vs UoI – P&H HC]
3.1 Where an assessee manufacturer received bonus
for fulfilment of contractual obligation, the same
cannot be said to be suppression of assessable
value for payment of excise duty unless it can be
established that the additional consideration was
in relation to clearance of goods and as a result, the
assessable value was depressed.
[Thermax Ltd vs CCE – Mumbai Cestat]
II. REFUND
III. VALUATION
3.2 Fee concession given to students of a coaching
class by way of scholarship scheme cannot be
added to the fees collected for levy of service tax
and it cannot be said that such scholarship
concession given is a non-monetary consideration
required to be added to the monetary
consideration.
[Resonance Eduventures Pvt Ltd vs CCE&ST,
Jaipur – Delhi Cestat]
Applicant was facilitating recruitment / enrolment
of students to foreign Universities. Promotional
services were incidental and ancillary to above
principal supply and applicant was paid
consideration in form of Commission, based on
performance in recruiting students, as a
percentage of tuition fee collected from students
enrolled through applicant. Applicant, therefore,
represented University in territory of India and
acted as its recruitment agent. Thus, whatever
services were provided by applicant were only as a
representative of University and not as an
independent service provider. Accordingly,
applicant's service to foreign universities did not
qualify as 'Export of Services' and were therefore,
taxable under GST.
[Global Reach Educational Services Pvt Ltd –
AAR, West Bengal]
Detention of goods merely for infraction of
procedural Rules in transactions which do not
amount to taxable supply, is without jurisdiction.
Thus, where petitioner was transporting goods
procured by him for own use to site where goods
IV. EXPORT OF SERVICE
V. DETENTION
completed through the ‘E-Proceeding’
functionality
- Issue of in cases as per
SOPin respect of data of cash deposit in banks
- Processing in all cases where notices u/s
142(1) have been issued up to 31.03.2018 to be
done by 31st May, 2018
- Processing of the
u/s 276B/276BB in
already identified during FY 2017-18 & 2016-
17 and taking such cases to logical end
including uploading/updating of the status of
disposal on TRACES portal
- Disposal of pending appeals through ITBA-
starting from the oldest year to the year
following and so on, so as to attain a total
disposal of
142(1)/ 148 notices all
TDS/TCS defaults for
prosecution 10 cases
150 appeals of less than Rs.10 lakh
per CIT (A).
Baroda Branch of WIRC of ICAI5
minimum of three members of the Authority shall
constitute quorum at its meetings. If the Members
of the Authority differ in their opinion on any
point, the point shall be decided according to the
opinion of the majority of the members present
and voting, and in the event of equality of votes,
the Chairman shall have the second or casting
vote.
3. In the definition of “Interested Party” for the
purpose of anti-profiteering provisions in existing
list (a) suppliers of goods or services under the
proceedings; and (b) recipients of goods or
services under the proceedings; (c) has been
inserted i.e. any other person alleging, under sub-
rule (1) of rule 128, that a registered person has not
passed on the benefit of reduction in the rate of tax
on any supply of goods or services or the benefit of
input tax credit to the recipient by way of
commensurate reduction in prices.
4. An explanation is inserted in Chapter XVI in
respect of E-Way Rules that for the purposes of
this Chapter, the expressions transported by
railways‘, transportation of goods by railways‘,
transport of goods by rail‘ and movement of goods
by rail‘ does not include cases where leasing of
parcel space by Railways takes place.
Central Government vide
appoints 1stApril, 2018
to take in to effect of provisions in respect of E-Way
Bill.
Central Government vide
specifies that the return
in FORM GSTR-3B as under:
Notification No. 15/2018
Central Tax, dated 23.03.2018
Notification No. 16/2018
Central Tax, dated 23.03.2018
Month Last date for filing of return in FORM
GSTR-3B
Month Time period for furnishing the
details in FORM GSTR-1
April 2018 20th May, 2018
May 2018 20th June, 2018
June 2018 20th July, 2018
Central Government vide
specifies that the
registered persons having aggregate turnover of up to
1.5 crore rupees in the preceding financial year or the
current financial year, as the class of registered persons
who shall furnish the details of outward supply of
goods or services or both for the quarter April to June,
2018 till the 31st day of July, 2018.
Central Government vide
specifies that the
registered persons having aggregate turnover more than
to 1.5 crore rupees in the preceding financial year or the
current financial year, as the class of registered persons
who shall furnish the details of outward supply of
goods or services or both as under:
April 2018 31st May, 2018
May 2018 10th June, 2018
June 2018 10th July, 2018
Central Government vide
extends due date of
furnishing the return by an Input Service Distributor in
the Form GSTR-6 for the months of of July, 2017 to
April, 2018, till the 31st day of May, 2018.
Central Government vide
extends due date for
Notification No. 17/2018
Central Tax, dated 28.03.2017
Notification No. 18/2018
Central Tax, dated 28.03.2017
Notification No. 19/2018
Central Tax, dated 28.03.2017
Notification No. 20/2018
Central Tax, dated 28.03.2017
were to be consumed even though transportation
of goods was not declared by petitioner as
provided for in Rules 55 and 138 of the Kerala
Goods and Services Tax Rules, goods could not
have been detained.
[Indus Towers Ltd vs Asst State Tax Officer –
Kerala HC]
Contributed by :can be reached at [email protected]
CA. Manilal Parsiya
GST Update
Central Government vide
amends Central Goods
and Service Tax Rules, 2017 as under:
1. In respect of inputs and capital goods sent to the
job worker following changes are made in Rule 45
of CGST Rules. Where the goods are directly sent
from one job worker to another job worker, the
challan may be issued either by the principal or the
job worker sending the goods to another job
worker or the challan issued by the principal may
be endorsed by the job worker, indicating therein
the quantity and description of goods where the
goods are sent by one job worker to another or are
returned to the principal. Further the challan
endorsed by the job worker may be further
endorsed by another job worker, indicating therein
the quantity and description of goods where the
goods are sent by one job worker to another or are
returned to the principal.”
2. In respect of decision of anti-profiteering
authority Rule 134 is substituted to the effect that a
Notification No. 14/2018
Central Tax, dated 23.03.2018
Baroda Branch of WIRC of ICAI6
filing of application for refund under section 55 by
notified agencies before the expiry of eighteen months
from the last date of the quarter in which such inward
supply was received.
Central Government vide
amends Central Goods
and Service Tax Rules, 2017 as under:
1. Rule 89(5) is substituted in the case of refund on
account of inverted duty structure, refund of input
tax credit shall be granted as per the following
formula:- Maximum Refund Amount =
{(Turnover of inverted rated supply of goods and
services) x Net ITC ÷ Adjusted Total Turnover} -
tax payable on such inverted rated supply of goods
and services.
Explanation:- For the purposes of this sub-rule, the
expressions –
(a) “Net ITC” shall mean input tax credit availed
on inputs during the relevant period other than
the input tax credit availed for which refund is
claimed under sub-rules (4A) or (4B) or both;
and
(b) “Adjusted Total turnover” shall have the same
meaning as assigned to it in sub-rule (4).
2. Provisions in respect of consumer welfare are
substituted vide amendment in Rule 97.
3. Where any registered person who has availed of
input tax credit opts to pay tax under Section 10 or
where goods or services or both supplied by him
become wholly exempt, he shall reversal/payment
of tax on inputs held in stock, inputs contained in
semi-finished and finished goods held in stock and
capital goods. In case of reversal of input tax credit
Notification No. 21/2018
Central Tax, dated 18.04.2018
in respect of capital goods the value of capital
goods shall be the invoice value reduced by 1/60th
per month or part thereof from the date of invoice.
Contributed by :can be reached at [email protected]
CA. Abhay Desai
Carry Forward of CessesUnder GST – High Court
Ruling and its Impact
1. Earlier we have opined that registered tax payer
can carry forward the balance of any cesses
forming part of last return filed under earlier
regime in view of express provisions of Sec.
140(1) of the Central Goods & Services Tax
(“CGST”)Act, 2017.
2. Recently it has been reported in the media that post
the decision of Hon. Delhi High Court in the case
of
such carry forward will not be permitted.
We beg to differ with the said view. In order to
appreciate our view it is first worthwhile to
consider the ruling of Delhi High Court.
3. Under the CENVAT Credit Rules (“CCR”), 2004
credit of Education Cess (“EC”) as well as
Secondary Higher Education Cess (“SHE Cess”)
was allowed. However the utilization of said
cesses was permitted only against the
corresponding cesses payable on removal of
manufactured goods or provision of taxable
service. Hence cross utilization of cesses against
the duty/tax amount payable was not permitted.
4. W.e.f. 01.03.2015, EC as well as SHE Cess were
abolished in case of excisable goods vide
Cellular Operators Association of India and
Others vs UOI and Others 2018-TIOL-310-HC-
DEL-ST,
Notification No. 14/2015-CE and 15/2015-CE
respectively. Similarly w.e.f. 01.06.2015 such
cesses were also abolished in case of taxable
services vide Notification No.14/2015-ST. CCR,
2004 however permitted cross utilization of such
cesses availed on goods received on or after
01.03.2015 or on input services on or after
01.06.2015 against the duty/tax payable. Issue
before the Hon. Delhi High Court was with respect
to the balance of such cesses lying as on
28.02.2015 (in case of manufacturer) or
31.05.2015 (in case of service provider). CCR,
2004 did not allow cross utilization of such
balances against duty/tax payment thereafter.
Hence a writ petition was filed before the Court
seeking a direction to permit cross utilization of
such balances of cesses against tax payable.
5. It was contended by the petitioners that when the
credit of such cesses was availed, a vested right has
been created and hence law cannot take away the
said right post valid availment of credit. Reliance
was placed upon the judgment of the Supreme
Court in Eicher Motors Limited and Another
versus Union of India and Others, (1999) 2 SCC
361 and Samtel India Limited versus
Commissioner of Central Excise, Jaipur, (2003) 11
SCC 324. It was also contended that as per the
Budget Speech of the Hon. Finance Minister as
well as the memorandum explaining provisions of
Finance Bill, 2015, EC & SHE Cess have been
subsumed with the excise duty (general rate
increased from 12% to 12.5%) and service tax
(general rate increased from 12 %to 14%) and
hence utilization of balance of such cesses should
be permitted against the higher duty/tax payable
which indirectly includes the cess amount (since
Baroda Branch of WIRC of ICAI7
A major challenge facing modern democracy is how to
build enlightened leadership within the democratic
framework. This article examines the problem in a
holistic perspective and in the light of Indian insights.
“ability to influence people or events,” “right or
authority to do something,” “political authority or
control.”
Key Perspectives
The Forms of Power
Forms of power; political challenge.
Oxford dictionary defines the concept of power as the
We may classify power into four categories:
political, economic, social and psychological. Political
power comes from position, authority and hierarchy.
For example a Prime Minister or President of a Nation
or the CEO of a multinational company has a certain
political power which comes from their position of
Contributed by :can be reached at [email protected]
CA. Bimal R. Bhatt
Power, Democracyand Leadership
the same is subsumed). Reliance was placed on the
dictionary definition of the term “subsumed”,
which means to include, absorb in something else
or incorporated into something larger or more
general. Reference was also made to the
Explanation given by the Joint Secretary, Tax
Research Unit, Ministry of Finance, Government
of India, vide letter F.No.334/5/2015-TRU dated
28th February, 2015
6. Court however rejected the contentions of the
petitioner and held that balance of such cesses
cannot be permitted to be cross utilized against the
duty/tax payable in view of express provisions of
CCR, 2004. Provisos added vide clause (b) to Rule
3(7) permitting cross utilization of such cesses
availed on inputs, capital goods or input services
after the specified date is a concession limited to
narrow set of cases and same cannot be implied to
grant cross utilization of balance of such cesses on
28.02.2015 or 31.05.2015. Carving out of such
exceptions is not violative of Article 14 of the
Constitution of India. Court also held that there is
no provision in law which states that such cesses
have been subsumed. A speech by Hon. Finance
Minister or memorandum explaining provisions
of Finance Bill, 2015 is an economic, political and
policy statement. Raising or increasing taxes often
meets resistance, and on most occasions has to be
justified and explained. It was held that in the
present context there was a clear intention to
increase the taxes and hence the contention of such
cesses having been “subsumed” and thus cross
utilization must be permitted cannot be accepted.
Court also distinguished the decision in the case of
Eicher Motors Limited (supra) by referring to the
context in which said decision was arrived.
Reliance was placed on the decision in the case of
Osram Surya (P) Ltd. Versus Commissioner of
Central Excise, Indore, 2002 (142) ELT 5 (SC)
wherein challenge to introduction of six months’
time limit for claiming MODVAT credit benefit
did not find favor with theApex Court.
7. From the above ruling one can observe that the
issue involved was with respect to cross utilization
of balances of cesses lying on the date when the
same were abolished against the duty/tax payable.
Issue was not of availment of credit of such cesses.
Hence we submit that the above ruling shall not
affect the availment of such cesses and hence such
balance carry forwarded in the earlier regime was
not prohibited. Further it is worthwhile to refer to
the concerned provisions of Sec. 140(1) of the
CGSTAct, 2017. Same is reproduced below:
8. Above provision thus provides that a registered
person can carry forward amount of “CENVAT
credit”. CENVAT Credit is further defined by an
Explanation to Chapter XX as it shall have the
same meaning as assigned in the Central Excise
Act, 1944 (1 of 1944) or the rules made thereunder.
Rule 3 of CCR, 2004 which includes such cesses
APPLICABILITYUNDER GST
“140. Transitional arrangements for input tax
credit. - (1) A registered person, other than a
person opting to pay tax under section 10, shall be
entitled to take, in his electronic credit ledger, the
relating to the period ending with the day
immediately preceding the appointed day,
furnished by him under the existing law in such
manner as may be prescribed :”
amount of CENVAT credit carried forward in the
return
as CENVAT Credit clearly supports our view that
the same will be regarded as “CENVAT Credit” for
the purpose of Sec. 140(1) of the CGSTAct, 2017.
Even Krishi Kalyan Cess is regarded as “CENVAT
Credit” (please refer our earlier article for detained
analysis).
9. Hence we are of the view that the ruling by Hon.
Delhi High Court shall not affect carry forward of
balance of such cesses validly availed in the earlier
regime. Media reports are not to be trusted when it
comes to nuances of law.
Baroda Branch of WIRC of ICAI8
authority. We may include here as part of political
power some of the material or vital forms of power like
oratory, physical charisma or mass appeal. Wealth is the
source of economic power. This doesn’t need any
elaboration or example because the power of money is
well known. The social power comes from possessing a
knowledge, skill, expertise or qualities valued or
respected by the community, especially a particular
community, nation or culture of which the individual is
a part. For example, in ancient India, the Brahmin had
not much of political or economic power but has
considerable social power. The fourth and the highest
form of power is the psychological and spiritual power,
which comes from power of thought, – which means the
ability to think with clarity, insight and vision –
leadership qualities, strength of character, self-mastery,
lived values or walking the talk and spiritual growth.
The great challenge facing modern governance is to
ensure that political power goes to people with
sufficient and matching psychological and moral
power. In ancient India political power was vested
mostly with the royal and warrior clans of Kshatriya’s,
bequeathed by birth and hereditary. But most of the
leaders of the Kshatriya clan, like for example the
crown prince, were put through a rigorous physical,
mental, moral and religious education based on the
ideal of dharma.
This education and training has to a certain extent
helped in building the required psychological and
moral power in the political leader. But in modern
democratic polity, which elects the political leaders by
vote, there is no such mental or moral education or
standards for the leaders. As a result there is a great
The Political Challenge
deterioration in the quality of political leadership.
How to rectify this situation? The first step is to educate
the citizen and the voter on the ideals of true leadership
and on the type of leaders which can bring the highest
wellbeing to people and society. In this task, the modern
mass-media with its extensive reach can be a great help
in educating the public on how to choose the right type
of leaders. The second step is to maintain certain basic
mental and moral standards for contesting the election
like for example some minimum educational
qualification or no criminal record. The third step is to
educate the elected leaders on the ideals of leadership
and governance and how to develop the psychological,
moral and spiritual power needed to lead and govern in
the right way. For example in most of the big and
progressive companies in the corporate world,
managers and executives go through regular training
and development programmes for upgrading their
knowledge and skill and some of them make a
conscious, systematic and planned effort to educate and
groom their future leaders. A similar effort has to be
made in the political domain.
The third step is to promote creative thinking and
research in political thought, governance and
leadership. Here again the modern political world can
learn much from the corporate world. Modern business
has given birth to the science of management which is a
rigorous and innovative academic and professional
discipline, which nourishes theoretical and practical
research on the various aspects of corporate
management, governance and leadership. A similar
attempt has to be made in the political domain.
(Source: Fourth Dimension Inc.)
Contributed by :can be reached at [email protected]
CA. Prashant Upadhyay
FAQ on ICDS - 4 Part II- Revenue Recognition
1) What are the deviations of ICDS IV vis a vis IndAS 18?
Followings are the distinction of ICDS IV and Ind
AS 18:
Sr. Issue
Covered
1) Definition of
Revenue
2) Taxes
collected from
buyer
3) Barter
Transactions
ICDS IV
“Revenue” is the
gross inflow of
Cash, Receivables
o r o t h e r
consideration.
ICDS IV is silent
o n t h e i s s u e .
However, Section
145A states that
revenue includes
all taxes collected
from customer.
ICDS is silent in
this regard.
IndAS 18
The definition is broader
which states that the
”Revenue” is the gross
inflow of economic
benefits that increases
e q u i t y o t h e r t h a n
contribution from equity
participants.
Here, revenue includes
consideration collected
o n o w n a c c o u n t .
Amounts collected on
behalf of Government
a r e n o t e c o n o m i c
benefi ts which can
increase equity.
Exchange of similar
goods & services are not
regarded as revenue.
In cases of exchange of
goods and services with
goods and services of
dissimilar nature either
the revenue is recognized
at fair value of goods and
services received or if
that is not ascertainable
then to be recognized at
fair value of goods and
services given.
Baroda Branch of WIRC of ICAI9
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outstanding and
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recognized by effective
interest rate method.
2) What are the disclosure requirements of the
standard?
Following disclosures shall be made in respect of
revenue recognized namely:
a) In a transaction involving sale of goods, total
amount not recognized as revenue during the
previous year due to lack of reasonable
certainty of its ultimate collection along with
nature of uncertainty;
b) The amount of revenue from service
transactions recognized as revenue during the
previous year;
c) The method used to determine the stage of
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and
d) For service transactions in progress at the end
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Members e-Reading Room- An Initiative to Support SME practitioners
The use of software’s in delivering quality and timely
services is utmost important in today's technology world.
There are various softwares available for different purpose
like for Income Tax case law search, Transfer pricing,
Audit, Income Tax Return, GST and others.
Baroda Branch of WIRC of ICAI has facility of Members e-
Reading Room to support the Small - Medium size
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the client. Any member can use the following software
installed in the Computer of Member's Library.
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Wide-ranging database of Case Laws on International
Taxation and Transfer Pricing, covering Indian and
other major Tax Jurisdictions
An intelligent Research Tool with self-refinement
functions developed exclusively for International
Direct Tax
Company Law
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Deed & Documents
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Research Tool with self-refinement function
Taxation Module
Ever expanding Videos presentations &
PPTs on International Taxation/Transfer
Pricing/BEPs
Always updated comprehensive, limited and
other tax treaties that India has entered into
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Model Conventions and Commentaries
covering OECD, UN and US Model
Commentaries (Including 2014 editions of
O E C D M o d e l C o n v e n t i o n a n d
Commentary)
More than 1000 articles on various topics
relating to Transfer Pricing and International
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and appellate authorities on Domestic
Taxation
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Acts/Rules/Circulars & Notifications
All Acts and Rules, Circulars and
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Exchange Laws along with relevant case
laws
Any member can use the software Free of Cost by
visiting the branch premises during the office
hours on working days from 10.00 a.m. to 6.00
p.m. at Members Library, 1st Floor, ICAI Bhawan,
Baroda.
Videos and PPTs
Tax Treaties
Model Conventions and Commentaries
Articles
Indian Domestic Tax Laws
Indian Foreign Exchange Laws
Baroda Branch of WIRC of ICAI11
Snap Gallery
2 days Workshop on GST - 13 & 14.04.2018
CA. Varun Fitter CA. Vipul Khandhar CA. Dhruvank Parikh & CA. Anirudh Sonpal
GST Clinic on 17.04.2018
Full day seminar on Internal Audit & Internal Contrls on 21.04.2018
CA. Rajan Kamat CA. Sivaram Subramoniam CA. Sourav Ghosh
Workshop on Income Tax 27.04.2018 Half day seminar on Developments w.r.t RERA on 28.04.2018
CA. Virat Bhavsar CA. Tarun Ghia CA. Prashant Kotecha CA. Bela Mehta
ST
UD
YC
IR
CL
E
Basics of InternationalTaxation and TransferPricing on 26.04.2018
Ind AS - 101 First TimeAdoption of Ind AS-PracticalIssues on 12.04.2018
Baroda Branch of WIRC of ICAI
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WICASA - APRIL 2018