Editor: CA. Ramanand Gupta Published by Vasai Branch of Western India Regional Council of The Institute of Chartered Accountants of India and printed at Finesse Graphics and Prints Pvt. Ltd., 309, Parvati Ind. Est.,Sun Mill Compound, Lower Parel, Mumbai 400 013. Tel. : 40364600

The views and opinions expressed or implied are those of the authors or contribution and do not necessarily reflect those of Vasai Branch. Unsolicited articles and transparencies are sent in at the owner's risk and the publisher accepts no liability for loss or damage. Material in this publication may not be reproduced, whether in part or in whole, without the consent of Vasai Branch.

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The Institute of Chartered Accountants of India, Vasai Branch of WIRCAddress: Office No. C-, 310/311, Shanti Shopping Centre, Mira Road(E),Thane-401107Telephone: 65568900Email: vasaibranch@gmail.comWebsite: www.vasai-icai.orgDesigned and Printed by Finesse • +91-22 4036 4600

The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter12| 2013APRIL-MAY

www.vasai-icai.org APRIL & MAY 2013

MANAGING COMMITTEE

EDITORIAL BOARD

Chairman: CA. Ramanand Gupta9322231113

Vice- Chairman:9320617447

Secretary: CA. Umesh Mestry9320473468

Treasurer: CA. Kanhaiyalal B. Kothari9594196090

Committee CA. Kishor Vaishnav

Member: 9892194382

CA. Sumeet Doshi9869525956

CA. Preksha Jain9029877140

CA. Dayaram Paliwal9820331010

WIRC Nominee : CA. Sandeep Jain

9819788099

CA. Vimal Agrawal

The Institute of Chartered Accountants of IndiaVASAI BRANCH OF WIRC NEWSLETTER

CA. Ramanand Gupta

CA. Umesh Mestry

CA. Kishor Doshi

CA. Lalit Munoyat

CA. Dushyant Chaudhari

CA. Ashutosh Vidwans

CA. Hemant Shah

CA. Alpesh Shah

CA. Prasad Chitre

CA. Haresh Kenia

CA. Haresh Mehta

CA. Sanjay Paharia

-: Contact Details :-

Prop. Mrs. Javkhedkar S S.(M.Com)

9320094138/8551026855

Vimal Apartment, 1st Floor, Opp. Union Bank of India, Above Rana Electronics, Manickpur,

Vasai Road (W)-401202 Tel. 0250-2343601,2348104,2338701,2331565,2336519

E-mail: savitainvestments@yahoo.co.in

Authorized Agent for :

F All postal Schemes: N.S.C / K.V.P.M./ M.I.S./P.P.F/R.D.

FGovt. Relief Bonds (REC. NABARD, SIDBI)

F Mediclaims through New India Assurance & Star Health.

F All Reputed Mutual Funds.

F On Line Share Trading of BSE, NSE, F & O, Derivatives.

FInsurance (L.I.C., Birla Sunlife, Bajaj Allianz, Reliance)

F Real Estate Consultant

w

Advertisement Tariff for the Branch Newsletter Colour page

Advt. material should reach us before 22nd of previous month.* Discount - 3 to 6 issue of 10%, 7 to 12 issue 15% * Circulated to more than 1800 Chartered Accountants

Our branch is running ITT/Orientation /GMCS batches and coaching classes for CPT/IPCC/Final students.We require Faculty for above courses and classes on urgent basis. Those who are interested to join as a Faculty can send their CV on vasaibranch@gmail.com/Contact: 022-65568900

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

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| 11

GLIMPSES AT FELICITATION PROGRAMME (Dated on:- 13th April, 2013) GLIMPSES at CA CAREER COUNSELING PROGRAMME(DATED ON:- 6th & 7th April, 2013)

ORIENTATION PROGRAMME FOR MANAGING COMMITTEE MEMBERS ORGANISED BY WIRCTH TH(DATED ON 12 & 13 APRIL ,2013)

THSEMINAR ON DEVELOPING EXCELLENCE & MASTERING SUCCESS (DATED ON :- 13 APRIL, 2013)

WIRC OFFICE BEARER- 2013

REGIONAL COUNCIL MEMBERS

Out Going Managing Committee Members Felicitated with Gracious Hands CA. Mangesh Kinare, Chairman-WIRC

(L-R) CA. Umesh Mestry (Secretary-Vasai Br.), CA. K. B. Kothari (Treasurer-Vasai Br.), CA. Vimal Agrawal (Vice-Chairman-Vasai Br.), CA. Parag Raval (Vice-Chairman-WIRC), CA. Mangesh Kinare, (Chairman- WIRC), CA. Ramanand Gupta (Chairman- Vasai Br.), CA. Neel Majithia (Secretary- WIRC), CA. Priti Savla (Treasurer-WIRC)

& CA. Sandeep Jain (WIRC-Nominee)

CA. Ramanand Gupta (Chairman) Felicitating

CA. Mangesh Kinare, (Chairman, WIRC)

CA. Dayaram Paliwal (Committee Member)

Felicitating CA. Sandeep Jain (WIRC-Nominee)

CA. Dayaram Paliwal(Past Chairman)

CA. Kishor Vaishnav (Secretary & Treasurer)

CA. D. P. Revawala (Ex-Office Member)

CA.Rakesh Soni (Ex-Committee Member)

CA. Shweta Jain (Immediate Past Chairperson)

CA. Ramanand Gupta (Vice-Chairman)

CA. Unmesh Narvekar (Past Chairman)

CA. Lalit Bajaj (Past Chairman)

CA. Pramod Dhamankar (Past Chairman)

CA. Preksha Jain(Chairperson-WICASA)

FelicitatingCA. Mahesh Madkholkar

(Chairman-WICASA WIRC)

CA. Ramanand Gupta (Chairman) Felicitating

CA. Sunil Patodia, (RCM)

CA. Kishor Vaishnav (Committee Member)

Felicitating CA. Girish Kulkarni,( RCM)

CA. Rajesh Kotak (Convenor,Vasai -Virar

Study Circle) Felicitating CA. Vishnu Agarwal (RCM)

CA. Deepak Bansal (Convenor-Bhayandar

Study Circle) Felicitating CA. Satyanarayan Mundada (RCM)

CA. Vimal Agrawal (Vice-Chairman) Felicitating CA. Parag Raval

(Vice-Chairman, WIRC)

CA. Umesh Mestry (Secretary) Felicitating CA. Neel Majithia (Secretary, WIRC)

CA. K. B. Kothari (Treasurer) Felicitating CA. Priti Savla (Treasurer, WIRC)

CA. Ramanand Gupta (Chairman) & Managing Committee Member (Vasai Br.) receiving Certificate of Appreciation from Dr. Sanjeev Naik at Sanjeevani Education & Career Fair

Managing Committee Members presenting Floral welcome to Mr. Gilbert Mendonca (MLA,Mira-Bhayandar) at CA. Career Counseling Stall

CA. Ramanand Gupta (Chairman) & Managing Committee Members addressing at Orientation Programme

CA. K.B.Kothari (Treasurer) Presenting Memento to CA. Pratik Singhi (Speaker)

CA. Pratik Singhi (Speaker) Participants at Seminar

Managing Committee Members presenting Floral welcome to Dr. Sanjeev Naik (Member of Parliament) at CA. Career Counseling Stall

Group photo taken at Stall in the presence of Mr. Dhruv Kishor Patil (Mira-Bhayandar, Corporator)

Photo Taken at Orientation Programme in the presence of WIRC Office Bearer.

CPE Study Circle

Bhayandar CA CPE Study Circle Vasai – Virar CA CPE Study Circle

1) CA. Deepak Bansal (Convenor ) - 9320981019 1) CA. Xavier Rajan (Convenor)-9371720027

2) CA. Sandeep Jain (Deputy Convenor)- 9930608040 2) CA. Jagadeesh Devadiga (Co-Convenor)-9422475945

3) CA. Anadi Bhase (Co-Convenor)-9890121996

02| 2013APRIL-MAY

2013APRIL-MAY

10| The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter

RECENT DEVELOPMENTS

Dear Professional Colleagues,

On the Special occasion of my first communication as chairman

of Vasai branch, the most vibrant branch of WIRC,

I would like to thank all Vasai Branch members

who showed confidence & aptitude in my work &

elected me as committee member in 2013 branch

elections and I am also extremely thankful to my

Committee members for reposing the assurance

and electing me as a Chairman of our beloved

Branch. It's indeed a privilege to hold the

reverential position and lead the branch under the

defining guidance and the powerful inspiration of

all my members. I envision and wish to secure my

attempts to multiply the glory of the branch while

holding the assets which we have with us in the branch.

All attempts aim to engross success. The field has enormous

potential to empower the young professionals and make them

thrive in the field vibrantly. It's all about LEARN-EARN-RETURN.

Learn the concepts and apply them to earn efficiently. We are

being the responsible citizens of India need to return to our

society. I believe it is fully possible under able guidance of

mentors, consultants and leaders of our fraternity.

In an ever increasing competitive world, CAREER

DEVELOPMENT is utmost priority for every student. By keeping

this in mind branch had participated at Sanjeevani Education &

Career Fair wherein more than 600 students shown their keen

interest towards Chartered Accountant as career. Where

Dr. Sanjeev Naik Member of Parliament-Thane, Mr. Glibert

Mendonca MLA-Mira Bhayandar, Mr. Dhruv Kishor Patil Mira-

Bhayandar Corporator and various other Dignitaries attended

the programme and thereby we also felicitated with Certificate

of Appreciation by gracious hands of Member of Parliament

Dr. Sanjeev Naik. The aims of these events at fostering a healthy

and fruitful interaction between students, parents, Education

and Career Oriented Sectors.

With the vision to further cheer the students & to appraise their

preparation for the examination, the Branch had conducted

Mock Test Papers Series-I & II for IPCC and Final Course students

to evaluate their preparation for the main examination to be held

in May, 2013. We have also organised Crash Course for IPCC ,

wherein large number of students took benefit.

We have Felicitated New WIRC Office Bearer CA Mangesh Kinare

as Chairman, CA Parag Raval as Vice Chairman, CA Neel

Majithia as Secretary and CA Priti Savla as Treasurer and

CA

at the Seminar on Developing Excellence and Mastering Success

by eminent speaker CA Pratik Singhi held on

13th April 2013, wherein more than 250

Members participated and graced the occasion.

We have also felicitated our last Managing

Committee Member under the Leadership of

CA Shweta Jain for achieving the Best Branch

Award & Highly Commendable Performance

Certificate for Students activities from WIRC

under large category and Highly Commendable

Performance Certificate from ICAI. I congratulate

her for the successful completion of her tenure.

We are organising a Residential Refresher Course

at Alibaug for 3 days -2 nights starting from 1st June. A place of

serene town renowned for its many beaches, clean waters, and

terrific atmosphere – a popular gateway destination for

Mumbaiites. It used to be the headquarters of the great Maratha

Admiral, Kanhoji Angre and has the famous Kolaba fort in the

sea. I request to each one of you and your family to participate

and enjoy this RRC.

I give my Best wishes to the upcoming team of Vasai-Virar and

Bhayandar Study Circle and humbly appeal to them to start

student oriented programmes which will be more beneficial to

the students.

As CA Exams fever is going on & I take this opportunity to wish

Best of Luck for Success to all who are appearing in these Exams.

Best of Luck…!

I can ensure that the journey of 2013 will be splendid and I would

seek your whole-hearted co-operation to consummate our

objective to ensure the chase of professional excellence.

To Conclude I would like to quote George Bernard Shaw

“Imagination is the beginning of creation. You imagine what you

desire; you will what you imagine; and at last you create what

you will”. So let’s start imagine first & achieve the success which

we desire by working with sincerity coupled with detachment.

With Warm Regards,

CA Ramanand Gupta Chairman

Sandeep Jain as WIRC Nominee & Regional Council Members

FROM CHAIRMAN’S DESK

— Complied by — CA. Lalit Munoyat |e-mail:munoyat@gmail.com |9820193508

1) The activity of construction of roads on BOT basis is not leviable to service tax either under commercial or industrial construction service, works contract service, maintenance, management or repair of immovable property service

or under Business Auxiliary Service. CESTAT MUMBAI

2) GTA service provider is not required to furnish evidence of non-availment of Cenvat scheme to qualify the benefit of Notification No. 32/2004-ST in as much as there is no such conditions in the notification for making declaration on each consignment note. CESTAT NEW DELHI

3) The provision of services in relation to conducting a chit business is a not a taxable service for the purposes of section 65B(44) of the Finance Act, 1994 and therefore entry No. 8 of notification No.26/2012-ST dated 20.06.2012 is quashed in so far as it seeks to subject the activities of a business chit fund companies to service tax to the extent of 70% of the consideration received for the services.

4) Due date of filing half yearly ST-3 return for the period from 1st October 2012 to 31st March 2013,extended to from 25th April, 2013 to 31st August, 2013

5) Non filing of Service tax Return on misguidance by the Consultant should not attract penalty under Section 76, 77 and 78 of the Finance Act, 1994. Ignorance of law is enough to set-aside penalty CESTAT AHMEDABAD

6) Refund claim of the respondents on which credit availed prior to the Registration with the Department is allowed. The contention of the department that the Assessee entitled to refund claim of input service credit only for the period after registration is rejected. CESTAT CHENNAI

7) Services provided by way of erection of Pandal or Shamiana would attract the levy of service tax because this is not a transaction involving “transfer of right to use goods” and hence deemed sale. Circular No. 168/3 /2013 - ST

8) Once proportionate service tax is borne by the ultimate consumer of the service, namely the worker/ beneficiary, the manufacturer cannot take credit of that part of the service tax which is borne by the consumer. Thus proportionate credit, to the extent it is embedded in the cost of food recovered from the employee/ beneficiary, is not admissible to the appellant. CESTAT AHMEDABAD

1) It is a settled law that if a Job worker is functioning under Notification No. 214/86-C.E. and if the ultimate principal manufacturer is discharging Central Excise duty liability after consumption of job worked goods, it has to be held that the said notification does not exempt the goods manufactured on job work by the Job worker .The Job Worker is therefore entitled to Cenvat Credit on inputs and capital goods CESTAT, AHMEDABAD

2) The very objective of conducting the Audit of records of an assessee is to ascertain the correctness of payment of duty, availment of CENVAT Credit, etc.. Any shortcomings noticed during the course of Audit, itself cannot be reasoned that the deficiency was due to mala fide intention on the part of assessee unless it is found

SERVICE TAX

CENTRAL EXCISE

that the duty short paid or not paid was not on account of suppression of fact, mis-statement etc., penalty under section 11AC of Central Excise Act, 1944 cannot be justified. CESTAT, KOLKATA

3) The Hon’ble High Court in the case of Commissioner of Central Excise, Pondicherry v.CESTAT [2009 (240) E.L.T. 367] has held that even when there was no stock of input ‘as such’ or ‘in progress’ having put to use, the transfer of cenvat credit under the provisions of Rule 10 of Cenvat Credit Rules is permissible. CESTAT NEW DELHI

4) Unconditional stay - Recovery in view of 35C ( 2A ) - Whether on expiry of six months from the date of stay order, the Appellant is required to file an application for extension of stay - Held that:- For the period subsequent to the insertion of the Second Proviso the Tribunal should, as a matter of practice, specify the time period during which the stay shall operate after exercising its judicial discretion. The period may be limited or could be co-terminous with disposal of appeal - on consideration of all relevant factors in a given fact situation. CESTAT NEW DELHI

5) No merit in the contention of the revenue that the job workers cannot prefer to pay excise duty in spite of having exemption notification bearing No. 214/86 exempting the job workers from paying duty in view of the mandatory provision of Section 5A(1A) of the Act. - Decided in favor of assessee and against the revenue. GUJARAT HIGH COURT

6) Any clarification issued by the Board is binding to the Central Excise Officers who are duty-bound to observe and follow such circulars. Whether Section 37B is referred to in such circular or not is not relevant. – GUJARAT HIGH COURT

7) Where a writ petition seeks enforcement of fundamental right to carry on trade or business without any discrimination of any nature the same is maintainable despite the fact that there is a remedy of appeal available under the provision of the relevant law

1) If the selling dealer has not paid the tax It, however, does not empower the authority to revoke the input tax credit availed on a plea that the selling dealer has not paid the tax. It only relates to incorrect, incomplete or improper claim of input tax credit by the dealer. It is, therefore, for the department to proceed against the selling dealer for recovery of tax in the manner known to law MADRAS HIGH COURT

2) Retrospective cancellation of the registration certificate of the selling dealer can have no effect on the person who acted upon the strength of the registration certificate when it was in force. Input tax credit can’t be denied Whatever benefits that has accrued to the petitioners based on valid documents in the course of sale and purchase of goods, for which tax has been paid cannot be declined. MADRAS HIGH COURT

3) Even if the factum of existence of branches was not disclosed in the registration application the benefit of Form F can’t be denied when the genuineness or correctness of the form issued by its branches situate outside the State., who had obtained the form F from their registering authority is not an issue. Allahabad High Court

Disclaimer: The above compilation is meant only for academic purposes. The readers are advised to take expert legal opinion before acting on the basis of the above compilation. The author will not be responsible for any unintended inference that may be made by any reader from the above compilation.

VAT

2013APRIL-MAY

04| The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter |09

VISION 2013 -2014

RECENT Case Laws & OTHER DEVELOPMENTS/AMENDEMENTS

We believe in Perfect Planning & Action.

We would like to contribute in our best to achieve the vision of our Visionary Leader

of ICAI and chairman of WIRC.

To ensure Proper Coordination and Smooth functioning of branch/Study

Circle in achieving our goals.

To conduct more and more certification courses like IFRS, ISA, Indirect

Taxation, Valuation, Arbitration, Concurrent Audit, Internal Audit, Audit on

Co-operative Societies & Bank etc for Members to enhance their professional

knowledge and to grab the new professional opportunities.

Enhancement & updating of knowledge through Innovative quality Programs

for Members and Students.

Members Regional Convention- December 2013 National Students Convention- July 2013

Job Mela for Members And Students

Works Shop on Information Technology

E-Newsletter for Students.

As a part of society and to fulfil our responsibility towards the society -

conduct Social and environmental awareness program.

Union Budget Meeting

Health Check-up/ Blood Donation

Tax Clinic for Public

Investor Awareness Programme

Addressing the concerns of Small and Medium practitioners through

Networking.

Conducting Social Events as CA Brand Building Measures in Branch Area.

Coordinating with various Institutions, Organisations & Corporate at

Different Levels for Tie-up arrangements for the benefits of Members &

Students.

To Create Awareness amongst Members and Public at Large with regard to the New Laws, Rules & Regulations & Investor Awareness though conducting various seminars & Public Meetings.

Mock Test, Industrial Visits and Conducting in house Crash Course/Regular

Lectures for CPT & IPCC Students.

Co-ordinating with various Institutes, Colleges & Schools for CA Career

counselling among students & for Brand building.

To act as felicitator in forwarding members’ & students in representing their

problems & difficulties to ICAI in profession related matter.

Playing a role of felicitator in forwarding members’ suggestions through ICAI to Central & State Government on various economic and commercial legislations & Exposures drafts issued by ICAI.

We will try to achieve all the vision with the joint efforts and branch will

groom at newer height.

Finally, we take this as benchmark, let’s all of us drive towards achieving our

goals.

MAJOR HIGHLIGHTS OF VISION 2013-2014

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Members Committee

Students Committee (WICASA)

Sr.No Names of The Committee Members

1 CA. Vimal Agrawal Chairman

2 CA. Manik Daga Member

3 CA. Rakesh Soni Member

4 CA. Lalit Bajaj Member

5 CA. Purshottam Soni Member

6 CA. Rahul Sharma Member

7 CA. Mukesh Kumar Sharma Member

8 CA. Ravi Kumar Gupta Member

9 CA. Aliasgar Kanchwala Member

10 CA. Jayesh Mishra Member

11 CA. Vinay Bachhuka Member

12 CA. Asha Patel Member

13 CA. Priyanka Maheshwari Member

14 CA. Saurabh Poddar Member

15 CA. Vinit Kedia Member

Sr.No Names of The Committee Members

1 CA. Preksha Suresh Jain Chairperson

2 CA. Suresh Chand Jain Member

3 CA. Swaroop Jain Member

4 CA. Chetan H Mehta Member

5 CA. Unmesh Narvekar Member

6 CA. Pramod Dhamankar Member

7 CA. Navin Saraf Member

8 CA. Vinay Jain Member

9 CA. Rajkumar Jain Member

10 CA. Ankit Jain Member

11 CA. Smita Shetty Member

Administration Committee

ITT/Orientation & GMCS Committee

Program Committee

Research, Representation & Grant Committee

Newsletter, Website & Publication Committee

Committee For Members In Industry

Sr.No Names of The Committee Members

1 CA. Kishor Vaishnav Chairman

2 CA. Chirag Gogri Member

3 CA. Anil Kumar Mehta Member

4 CA. Manish Agarwal Member

5 CA. Harphool Githala Member

6 CA. Lalit Jain Member

7 CA. Ankit Nirmal Jain Member

8 CA. Kamal Sharma Member

9 CA. Rahul Dainit Member

10 CA. Rakesh Mishra Member

Sr.No Names of The Committee Members

1 CA. Ramanand Gupta Chairman

2 CA. Ashwin Dedhia Member

3 CA. Bhanwar Borana Member

4 CA. Abhishek Bansal Member

5 CA. Amar Kakaria Member

6 CA. Atul Mehta Member

7 CA. Rajesh Kotak Member

8 CA. Aniket Padhye Member

9 CA. Pankaj Mall Member

10 CA. Ramesh Pandey Member

Sr.No Names of The Committee Members

1 CA. Dayaram Paliwal Chairman

2 CA. Pradeep Chaturvedi Member

3 CA. Nitesh Jain Member

4 CA. Nitesh Chhavcharia Member

5 CA. Murli Sharma Member

6 CA. Grashima Sanghvi Member

7 CA. Manisha Rupareliya Member

8 CA. Santosh Sharma Member

9 CA. Suresh Jha Member

10 CA. Philip Colaco Member

11 CA. Pooja Sharma Member

12 CA. Kiransingh Rajpurohit Member

13 CA. Gauri Chitlangia Member

Sr.No Names of The Committee Members

1 CA. K. B. Kothari Chairman

2 CA. Nitesh Shah Member

3 CA. Nitesh Kothari Member

4 CA. Arjun Sani Member

5 CA. Bharat Majithia Member

6 CA. Dinesh Jain Member

7 CA. Sunil Kothari Member

8 CA. Kailesh Jain Member

9 CA. Vishnu Sodani Member

10 CA. Sharvan Malviya Member

11 CA. Rajesh Utkar Member

12 CA. Sanjay Kothari Member

Sr.No Names of The Committee Members

1 CA. Umesh Mestry Chairman

2 CA. Kishor Doshi Member

3 CA. Lalit Munoyat Member

4 CA. Dushyant Chaudhari Member

5 CA. Ashutosh Vidwans Member

6 CA. Hemant Shah Member

7 CA. Alpesh Shah Member

8 CA. Prasad Chitre Member

9 CA. Haresh Kenia Member

10 CA. Haresh Mehta Member

11 CA. Sanjay Paharia Member

Sr.No Names of The Committee Members

1 CA. Sumeet Doshi Chairman

2 CA. Kamal Dhareva Member

3 CA. Mayank Bidawatka Member

4 CA. Ronak Dharnidharka Member

5 CA. Saurabh Jain Member

6 CA. Akshay Ajmera Member

7 CA. Manish Hingar Member

8 CA. Kameshwar Rao Subudhi Member

9 CA. Pawan Agarwal Member

10 CA. Aditya Shripal Jain Member

11 CA. Sanjay Kumar Jain Member

12 CA. Nawal Bachhuka Member

13 CA. Lucky Talreja Member

14 CA. Nilesh Kabra Member

15 CA. Gopal Bohra Member

4) ITAT specifies Procedure & Guidelines for hearing Appeals via Video-Conferencing:

The decision taken in March, 2012 to set up E-Tribunal for hearing of appeals via video-conferencing has finally seen the light of day. The detailed Guidelines on the subject have been formulated by the Tribunal.

The E-Tribunal will be launched on 10th December, 2012 at Delhi, Mumbai, Nagpur & Ahmedabad. It will soon be extended to other cities as well.

The ITAT Bar Association congratulates the Hon’ble Members of the Tribunal and the officials involved for the speedy implementation of the E-Tribunal as this will not only lead to a speedy disposal of cases but will also result in considerable cost savings for the Government and the taxpayers. We wish the E-Tribunal great success!

5) Control on count of Tax Audits:

Government has put the facility for CAs to upload Form 3CA, 3CB, 3CD etc also. If uploading these forms are made compulsory (it seems so) from AY 2013-14 by making appropriate Rules under I.T.Rules, 1962, then we will be able to track as to how many Reports are filed with the Department in our name.

ICAI can also draw attention of CBDT and put control in this website so that only 45 Reports can be uploaded in name of one CA (subject to other Rules that audit regarding section 44AD r.w. 44AB should not be counted etc.).

6) CBDT Scheme for processing of TDS & adjustment of Refunds:

With a view to addressing the numerous problems being faced by taxpayers due to faulty processing of TDS claims, the CBDT has formulated the “Centralised Processing of Statements of Tax Deducted at Source Scheme, 2013?. The Scheme provides for the manner in which TDS correction statements will be filed, their processing, rectification of mistakes etc. In particular, it is provided that an adjustment of refunds against outstanding tax demand can be done U/s 245 of the Act only after issuing prior intimation to the taxpayer. An appeal can also be filed against the actions of the CPC. (Effective from 15th January, 2013)

The Scheme is a step to give effect to the directions of the Delhi High Court in Court On Its Own Motion vs. CIT where the numerous hardships faced by the assessees were noticed.

7) e-filed Returns in CPC can be viewed in AST:

DGIT (LOGISTICS) Govt. of India, Ministry of Finance,

Ground Floor, E-2, A.R.A. Centre, Jhandewalan Extn. New Delhi-110055

Tel:- 23537002, Fax:- 23593267 (F.No.17/8/2012-MIS-DOMS/ Dated:04/01/2013)

As it was bought to the notice of the DGIT (Logistics) by the field formations that the e-filed Returns were not visible to the concerned Assessing Officers.

The matter was taken up with DGIT (Systems) who has informed that the following information can be accessed on the system by the AO with regard to e-filed Returns of his/her jurisdiction (ward/ circle):

(i) The e-filed Returns transferred from CPC to AST for processing can be viewed by the AO/Range/CIT.

(ii) The AO can view the e-Returns that are pending for processing at his end.

(iii)The AO can view the e-Return filed under his jurisdiction with details of number of Returns received with the digital signature and number with/without ITR-V.

(iv) The e-filed Return summary report for any period is available to the AO.

(v) The e-filed Return detailed report for any period is also available to the AO.

SUB-COMMITTEE FOR THE YEAR 2013-14

no turnover constituted in the amount of Rs.18666488/- for the purposes of considering the liability of assessee to get the accounts audited U/s 44AB. Thus, the penalty U/s 271B imposed by the AO was deleted.

3) Branch Manager, UCO Bank vs. ACIT (ITAT Cuttack)

Section 272A(2)(k): Delay in filing TDS Return through NSDL is a technical breach:

The AO imposed penalty U/s 272A(2)(k) for delay in filing the TDS Return U/s 200(3). The assessee’s argument that the delay was due to a shortage of staff was rejected on the ground that the same was not reasonable cause. The CIT(A) confirmed the penalty. On appeal by the assessee to the Tribunal, the appeal was allowed to the assessee on the following grounds:

The penalty was levied by the Department in a mechanical manner. The assessee would have filed the hard-copy of the quarterly statements but this is not accepted by the Department. The computer has to generate a number for acknowledging receipt of such statements. The number is not generated till the computer tallies the PAN and the information available on AS-26. The late filing is caused by an administrative glitch. The delay occurs because the assessee-deductors are dependent on information of TDS and its deposit from the sub-treasury of the Government and the filing of the e-return through the designated service provider of the Income-tax Department. The assessee-deductors have no technical competency to file the Return by themselves without external aid. They are also not competent to do so by themselves as per Rule 37B and “Filing of Return of Tax deducted at source” scheme 2003, which requires the submission of quarterly statement through NSDL or other approved agencies which are third parties and not under the control of the assessees. Penalty U/s 272(A)(2) cannot be levied in a routine manner. The late filing of TDS Return cannot be said to be intentional or willful. It is only a technical or venial breach.

1) Section 194A: CBDT notifies ‘National Skill Development

Fund’

Notification No.4/2013 [F.NO.275/28/2012-IT(B)], Dated

24/01/2013

In exercise of the powers conferred by sub-clause (f) of clause (iii) of

sub-section (3) of section 194A of the Income-tax Act, 1961, the

Central Government hereby notifies the National Skill Development

Fund (PAN: AABTN5824G) for the purpose of sub-clause (f) clause

(iii) of sub-section (3) of said section.

2) Delhi HC quashes Circular imposing higher rate of Service

tax:

DELHI CHARTERED ACCOUNTANTS SOCIETY (REGD.) versus

UNION OF INDIA AND OTHERS (DELHI HIGH COURT)

The issue was that what would be the rate of Service tax where the

service is provided by the Chartered Accountants prior to

01/04/2012 and the invoice is also issued prior to 01/04/2012 but

the payment is received after 01/04/2012?

It was held that the rate of tax will be 10% and not 12%.

3) CBDT Circular clarifies issues relating to Export of Computer

Software:

The CBDT has issued a comprehensive Circular No.01/2013 dated

17/01/2013 in which it has provided clarifications on various issues

relating to the export of computer software and the allowance of

deduction under sections 10A, 10AA and 10B of the Income-tax Act,

1961. The clarifications seek to address and resolve the several

disputes that have arisen between the software industry and the

Income-tax Department.

OTHER RECENT AMENDMENTS/DEVELOPMENTS

2013APRIL-MAY

2013APRIL-MAY

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RECENT Case Laws & OTHER DEVELOPMENTS/AMENDEMENTS FORTHCOMING PROGRAMMES

FORTHCOMING PROGRAMMES FOR MEMBERS

Date Seminar on Timings Venue Speakers Co-ordinators Fees CPE

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Rs. 4000/- For Child

FORTHCOMING PROGRAMMES FOR STUDENTS

Date Seminar on Timings Venue Speakers Co-ordinators Fees CPE

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9823616515

FORTHCOMING PROGRAMMES OF VASAI - VIRAR STUDY CIRCLE

Date Seminar on Timings Venue Speakers Co-ordinators Fees CPE

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to Income Tax Returns & TDS 7.00 p.m. Vasai CA. Kalpesh Shah 9371720027

Returns (Followed by CA. Jagadeesh Devadiga

Dinner) 9422475945

9890121996

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A PLACE OF OLD TOWN CONNECTING TO THE MARATHA

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l Historic fort l Lovely Beaches & Clean Water lTerrific Atmosphere lWestern Ghats and Many More

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Programme ChairmanCA. Ramanand Gupta

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9322231113

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`

— Complied by

e-mail: gatu_1968@yahoo.co.in | 9869011148

1) UTI Mutual Fund vs. ITO (No. 2) (Bombay High Court)

Stay of demand can be granted even if there is no financial hardship

The Assessing Officer (AO) raised a demand on the assessee on the same lines as had been done in the preceding Assessment Year (AY). Though in the preceding AY, the assessee had obtained a stay from the High Court (see UTI Mutual Fund vs. ITO 345 ITR 71 (Bom)), the AO refused to follow that for the present AY. The assessee filed a Writ Petition to challenge the refusal to grant stay. To oppose the grant of stay, the Department relied on CIT vs. IBM India Pvt. Ltd. where the Karnataka High Court had held that in matters involving large amounts due to the Revenue, an interim Order of stay would be granted only in case of genuine financial hardship of the assessee and not otherwise. The Department argued that as the assessee did not have any financial hardship, the stay should be rejected. The Bombay High Court rejected the Department’s plea and granted stay of the demand on the following grounds:

The Order of the Karnataka High Court in CIT vs. IBM India P. Ltd cannot be read to mean that consideration of whether an assessee has made out a strong prima facie case for stay of enforcement of a demand is irrelevant. Nor is the law to the effect that absent a case of financial hardship, no stay on the recovery of a demand can be granted even though a strong prima facie case is made out. In considering whether a stay of demand should be granted, the Court is duty bound to consider not merely the issue of financial hardship, if any, but also whether a strong prima facie raising a serious triable issue has been raised which would warrant a dispensation of deposit. In CEAT Ltd. v. UOI 2010 (250) ELT 200 (Bom), it was held that “If the party has made out a strong prima facie case, that by itself would be a strong ground in the matter of exercise of discretion as calling on the party to deposit the amount which prima facie is not liable to deposit or which demand has no legs to stand upon, by itself would result in undue hardship of the party is called upon to deposit the amount.” Where a strong prima facie case has been made out, calling upon the assessee to deposit would itself occasion undue hardship. Where the issue has raised a strong prima face case which requires serious consideration as in the present case, a requirement of pre-deposit would itself be a matter of hardship. Also the manner in which the Revenue has sought to brush aside a binding decision of the Court in the case of the assessee on the issue of a stay on enforcement for the previous year has to be serious disapproved. No public authority, including the Revenue, can ignore the principle of precedent. Certainty in tax administration is of cardinal importance and its absence undermines public confidence.

2) Ester Industries Ltd. v.Union of India (DELHI HIGH COURT) [WP (C) No.7482 of 2011] Date of Pronouncement – 28/01/2013

Validity of Reopening based on retrospective amendment :

The original assessment was made on 30/11/2006 U/s 143(3). The Finance Act, 2008 inserted clause (h) of Explanation 1 to section 115JB retrospectively from 01/04/2001. The effect of this clause was to increase the book profit by the amount of deferred tax and the provision thereof. It is not in dispute that one of the reasons to believe, as recorded by the respondent, is that in view of the retrospective amendment, the deferred tax liability, for which a provision had been made in the accounts, was to be added back to the book profit. The assessment was reopened within four years from the end of the relevant assessment year. The Assessing Officer (AO) has to show some “tangible material” which could form the basis for his belief that income chargeable to tax has escaped assessment. That material is the retrospective legislative amendment. Under the pre-1989 law of reassessment, information as to the true state of law could form a

— CA. Hemant R. Shah |

RECENT HIGH COURT DECISIONS

valid basis for reopening the assessment: Maharaj Kumar Kamal Singh v. CIT [1959] 35 ITR 1 (SC). A retrospective amendment of the law can even permit action for rectification of the assessment on the ground of mistake apparent from the record: M.K. Venkatachalam v. Bombay Dyeing & Manufacturing Co. Ltd. [1958] 34 ITR 143 (SC). But just because action for rectification is permissible, it does not follow that no action can be taken for reopening, for, the powers U/s 147 and U/s 154 are not mutually exclusive; there could be some overlapping, and so long as the conditions for the applicability of the sections are satisfied, the action taken thereunder has to be validated and it is no answer to say that action should be taken under another section. Under this principle, it is held that one of the reasons for reopening in the present case being the retrospective amendment, the notice is valid.

1) Development Credit Bank Ltd vs. DCIT (ITAT Mumbai)

Section 32: Special Bench verdicts on Sale & Lease Back & lease finance are not good law

The assessee, a Bank, bought assets from its customers and leased it back to them (“sale and lease back”). It also purchased assets identified by its customers and leased it to them (“finance lease”). The assessee claimed depreciation on the assets on the ground that it was the owner and had used the assets for business purposes. The AO, relying on MidEast Portfolio Management 87 ITD 537 (Mum) (SB) and IndusInd Bank 135 ITD 165 (Mum) (SB), disallowed depreciation on the ground that the transactions were an “eyewash” and “colourable device”. The CIT(A) partly confirmed the disallowance. On appeal by the assessee to the Tribunal, the Tribunal allowed the claim on the following grounds:

The issue of whether the lessor is entitled to claim depreciation in the case of a “sale and lease back” transaction as well as in a “finance lease” have been laid to rest by the judgements in ICDS 350 ITR 527 (SC), Kotak Mahindra Finance 317 ITR 236 (Bom) and Cosmo Films 338 ITR 266 (Del) where it was held that the lessor is eligible to claim depreciation. The judgements of the Special Bench in MidEast Portfolio Management 87 ITD 537 (Mum) (SB) and IndusInd Bank 135 ITD 165 (Mum) (SB) are impliedly overruled.

2) Banwari Sitaram Pasari v. ACIT (HUF) (PUNE Tribunal-B Bench)

(IT Appeal No.1489 (PUNE) of 2011) (A.Y.2006-07) (Date of pronouncement 22/11/2012)

In Speculation trading, there is no ‘sale’ or ‘turnover ’ effected within the meaning of section 44AB:

It is noted that the assessee is engaged in the business of on-line trading of commodities and in this speculation activity, there is no physical delivery of commodities given or taken. Whether there was any element of ‘turnover ’ in such activity is the bone of contention between the assessee and the Revenue. In somewhat similar situation, co-ordinate Bench of Mumbai Tribunal in the case of Growmore Exports Ltd. v. ACIT [2001] 78 ITD 95, has dealt with requirement to get the accounts audited U/s 44AB. In this case the assessee was engaged in the speculation transaction of sale and purchase of units without taking delivery and the account was settled by crediting the difference. The Tribunal after considering section 18 of the Sale of Goods Act, 1930, observed that no property in the said units passed on to the assessee in as much as the assessee never acquired the property in the units as the units contracted to be bought were future unascertained goods. Similarly, it could not pass on the property to the party to whom the units were contracted and therefore, there was no ‘sale’ or ‘turnover ’ effected by the assessee in the legal sense for the purposes of getting the accounts audited U/s 44AB.

In the instant case also, the transaction of buying and selling of commodities is a speculative activity where no physical delivery is taken or given and in this view of the matter, it is held that there was

RECENT TRIBUNAL DECISIONS

2013APRIL-MAY

2013APRIL-MAY

06| The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter |07

RECENT DEVELOPMENTS DIRECT TAXES - Law Update

— Complied by — Sumeet Doshi|e-mail: sumeetdoshi88@yahoo.co.in | 9869525956

Exposure Draft : Limited Revisions to Accounting Standard 20 Earnings Per ShareThe ICAI has issued this exposure draft of limited revision to AS 20 which state that for the purpose of calculating basic earnings per

share, the net profit or loss for the period attributable to equity shareholders should be arrived at after:

• Deducting preference dividends and any attributable tax thereto for the period, and

• Adjusting the amount in respect of an item of income or expense which is debited or credited to share premium account/reserves, that is otherwise required to be recognized in the statement of profit and loss in accordance with accounting standards.

The ED has been issued to address the conceptual lacuna in arriving at earnings for computing EPS. As section 78 of the Companies Act, 1956 allows various adjustments in the securities premium account, which are inconsistent with the accounting standards. The proposed amendment will ensure that earnings are computed in accordance with Accounting Standards for EPS purposes. The ED is open for public comments till 10 May 2013.

Guidance Note on Report Under Section 92E of the Income Tax Act, 1961 (Transfer Pricing).

The ICAI has issued revised 2013 edition of the Guidance Note on Report Under Section 92E of the Income Tax Act, 1961 (Transfer Pricing). The revised edition has been issued as the Finance Act, 2012 has made significant changes such as definition of international transaction, advance pricing agreement, amendments relating to penalties, etc. The guidance has been given with regard to how the chartered accountant should exercise due diligence while verifying international transactions in view of the increased scope of the definition of international transactions. Guidance note can be downloaded from ICAI website.

IRDA removes 10% investment limit on reverse repo transactions in government securities

In December 2012, the IRDA permitted repo/reverse repo transactions in corporate bonds and government securities. In the said Circular, an overall limit of 10% of all funds was given for reverse repo transactions by life insurers and 10% limit for repo/ reverse repo transaction to general insurers.

After considering various representation received on the matter, the IRDA has stated that reverse repo transactions in government securities will now be treated at par with the Collateralised Borrowing and Lending Obligation (CBLO) transactions and the 10% investment limit will not be applicable to reverse repo transaction in government securities. Further, the IRDA has advised insurance companies to comply with the pattern of investments as prescribed by the Investment Regulations.

Expert Advisory Committee (EAC) Opinion :

Matter : Accounting for payments made in respect of land pending execution of conveyance deeds and borrowing costs incurred in respect there of.

Facts

The Government of India directed a State Port Trust (SPT) to construct a new Port. Accordingly, SPT acted as the executing agency and completed a Port. The Government of India vide their letter dated 14.02.2002 directed SPT to

handover the completed Port to ABC Limited (hereinafter referred to as ‘the company’) which is owned by the Government of India and was incorporated with the specific purpose of corporatising the Port. The SPT handed over all the assets (excluding land) and liabilities with respect to the Port Project to the company on 22.06.2001. The amount of Rs. 14.89 crore paid by SPT towards taking possession of land was retained by SPT in its books and not transferred to the books of the company as per the Government directions.

After nearly 6 years, viz., in the financial year 2007- 08, the Government of India finally decided that the land can be owned by the company and directed the company to pay to SPT the amount of Rs. 14.89 crore together with interest of Rs. 16.51 crore, all totaling to Rs. 31.40 crore. Additionally the company had also paid Rs 10.00 crore directly to the vendors of the land. Since the nature of title that will accrue to the company was not known at the time of making these payments, the company retained the entire amount in its books as ‘Advance for Land’ and grouped under ‘Loans and Advances’ in its balance sheet at Rs 41.40 crore, comprising (i) Rs. 24.89 crore of amounts paid for acquisition of land and (ii) Rs. 16.51 crore of interest relating to the period after taking possession of the land / commencement of commercial operations. Based on the subsequent developments the company expects to get ‘Orders of Alienation of Title’ for the land from the respective vendors of the land in due course of time.

Query

1. Whether the company can capitalise the value of land at Rs. 24.89 crore (Rs. 14.89 crore + Rs. 10.00 crore) in the financial year 2010-11, with a suitable disclosure in the Notes to Accounts as ‘Pending receipt of formal Orders of Alienation of Title, the consideration of Rs. 24.89 crore paid for acquisition of land in earlier years is capitalised during this year'.

2. Whether the company can charge the interest of Rs. 16.51 crore paid to SPT to its profit and loss account of the financial year 2010-11 as a separate line item with a suitable disclosure in the Notes on Accounts by stating that “Interest of Rs. 16.51 crore paid to SPT during the financial year 2007-08, which was kept under ‘Advance for Lands’ has been charged to revenue during this year as the company expects to get Orders of Alienation of Title for the land from the respective vendors of the land in due course of time. This is an extraordinary item and nonrecurring in nature”.

3. If the answer to the above questions are negative, what is the correct treatment to be accorded in the books of account of the company for this total amount of Rs. 41.40 crore? What kind of disclosure would be required to be made in the Notes to Accounts of the company ?

Opinion

1. The company should capitalise the total amount of Rs. 41.40 crore paid to SPT as ‘land’ and not as ‘Advance for land’ from the date when the company possess the beneficial interest in the same and its cost can also be measured reliably and not in the financial year 2010-11. However, the company should give suitable disclosures to convey to the users of financial statements that the execution of conveyance deeds in favour of the company is in progress.

2. The Government has made reference to a rate of interest as a means to compute final sale consideration of the land. The amount so determined is in substance not “interest” in the facts and circumstances of the case. Therefore, the question of disclosure of interest paid as an extraordinary item does not arise.

— Complied by — CA. Haresh P. Kenia |e-mail:hpkenia@mtnl.net.in | 9821351838

SECTION 92C OF INCOME TAX ACT, 1961 READ WITH RULE 10B OF THE INCOME TAX RULES, 1962 – TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE – APPLICATION OF PROFIT SPLIT METHOD {214 TAXMANN 7 (ST.)}

Circular No.2/2013 (F No. 500/139/2012) dated 26/03/2013

It has been brought to the notice of CBDT that clarification is needed for selection of profit split method (PSM) as most appropriate method. The issue has been examined in CBDT. It is hereby clarified that while selecting PSM as the most appropriate method, the following points may be kept in mind:

1. Since there is no correlation between cost incurred on R&D activities and return on an intangible developed through R&D activities, the use of transfer pricing methods [like Transactional Net Margin Method] that seek to estimate the value of intangible based on cost of intangible development (R&D cost) plus a return, is generally discouraged.

2. Rule 10B(1)(d) of Income-tax Rules, 1962 (the Rules) provides that profit split method (PSM) may be applicable mainly in international transactions involving transfer of unique intangibles or in multiple international transactions which are so interrelated that they cannot be evaluated separately for the purpose of determining the arm's length price of any one transaction. The PSM determines appropriate return on intangibles on the basis of relative contributions made by each associated enterprise.

3. Selection and application of PSM will depend upon following factors as prescribed under rule 10C(2) of the Rules :

• the nature and class of the international transaction;

the class or classes of associated enterprises entering into the transaction and the functions performed by them taking into account assets employed or to be employed and risks assumed by such enterprise;

the availability, coverage and reliability of data necessary for application of the method;

the degree of comparability existing between the international transaction and the uncontrolled transaction and between the enterprise entering into such transactions;

the extent to which reliable and accurate adjustments can be made to account for differences, if any, between the international transaction and the comparable uncontrolled transaction or between the enterprise entering into such transactions;

the nature, extent and reliability of assumptions required to be made in application of a method.

4. It is evident from the above that rule 10C(2) of the Rules stipulates availability, coverage and reliability of data necessary for the application of the method as one of the several factors in selection of most appropriate method. Accordingly, in a case, where the Transfer Pricing Officer (TPO) is of view that PSM cannot be applied to determine the arm's length price of international transactions involving intangibles due to non-availability of information and reliable data required for application of the method, he must record reasons for non-applicability of PSM before considering TNMM or comparable uncontrolled price method (CUP) as most appropriate method depending upon facts and circumstances of the case.

5. Application of Profit Split Method requires information mainly about the taxpayer and associated enterprises. Section 92D of the Income-tax Act, 1961 provides for maintenance of relevant information and documents by the taxpayer as prescribed under rule 10D of the Rules. Therefore, there should be good and sufficient reason for non-availability of such information with the taxpayer.

6. Depending upon facts and circumstances of the case, TPO may consider TNMM or CUP method as appropriate method by

•

•

•

•

•

selecting comparables engaged in development of intangibles in same line of business and make upward adjustments taking into account transfer of intangibles without additional remuneration, location savings and location specific advantages.

SECTION 92C OF INCOME TAX ACT, 1961 – TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE – CLARIFICATION ON FUNCTIONAL PROFILE OF DEVELOPMENT CENTRES ENGAGED IN CONTRACT R&D SERVICES WITH INSIGNIFICANT RISK – CONDITIONS RELEVANT TO IDENTIFY SUCH DEVELOPMENT CENTRES {214 TAXMANN 9 (ST.)}

Circular No.3/2013 (F No. 500/139/2012) dated 26/03/2013

It has been brought to the notice of CBDT that there is divergence of views amongst the field officers and taxpayers regarding the functional profile of development centres engaged in contract R&D services for the purposes of transfer pricing audit. Moreover, while at times taxpayers have been insisting that they are contract R&D service providers with insignificant risk, the TPOs are treating them as full or significant risk-bearing entities and making transfer pricing adjustments accordingly. The issue has been examined in CBDT. It is hereby clarified that a development centre in India may be treated as a contract R&D service provider with insignificant risk if the following conditions are cumulatively complied with :

1. Foreign principal performs most of the economically significant functions involved in research or product development cycle whereas Indian development centre would largely be involved in economically insignificant functions;

2. The principal provides funds/ capital and other economically significant assets including intangibles for research or product development and Indian development centre would not use any other economically significant assets including intangibles in research or product development;

3. Indian development centre works under direct supervision of foreign principal who not only has capability to control or supervise but also actually controls or supervises research or product development through its strategic decisions to perform core functions as well as monitor activities on regular basis;

4. Indian development centre does not assume or has no economically significant realized risks. If a contract shows the principal to be controlling the risk but conduct shows that Indian development centre is doing so, then the contractual terms are not the final determinant of actual activities. In the case of foreign principal being located in a country/territory widely perceived as a low or no tax jurisdiction, it will be presumed that the foreign principal is not controlling the risk. However, the Indian development centre may rebut this presumption to the satisfaction of the revenue authorities; and

5. Indian development centre has no ownership right (legal or economic) on outcome of research which vests with foreign principal, and that it shall be evident from conduct of the parties. The satisfaction of all the above mentioned conditions should be borne out by the conduct of the parties and not merely by the contractual terms.

SECTION 90 OF INCOME TAX ACT, 1961 – DOUBLE TAXATION AGREEMENT - AGREEMENT FOR EXCHANGE OF INFORMATION WITH RESPECT TO TAXES WITH FOREIGN COUNTRIES - GIBRALTAR {214 TAXMANN 14 (ST.)}

Notification No. 28/2013 [F. No. 503/11/2009-FTD-I] dated 01/04/2013

The Agreement between the Government of Republic of India and the Government of Gibraltar for Exchange of Information with respect to taxes was signed at London on the 1st day of February, 2013. The Central Government has directed that all the provisions of the said Agreement shall be given effect to in the Union of India with effect from the 11th day of March, 2013.

2013APRIL-MAY

2013APRIL-MAY

06| The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter |07

RECENT DEVELOPMENTS DIRECT TAXES - Law Update

— Complied by — Sumeet Doshi|e-mail: sumeetdoshi88@yahoo.co.in | 9869525956

Exposure Draft : Limited Revisions to Accounting Standard 20 Earnings Per ShareThe ICAI has issued this exposure draft of limited revision to AS 20 which state that for the purpose of calculating basic earnings per

share, the net profit or loss for the period attributable to equity shareholders should be arrived at after:

• Deducting preference dividends and any attributable tax thereto for the period, and

• Adjusting the amount in respect of an item of income or expense which is debited or credited to share premium account/reserves, that is otherwise required to be recognized in the statement of profit and loss in accordance with accounting standards.

The ED has been issued to address the conceptual lacuna in arriving at earnings for computing EPS. As section 78 of the Companies Act, 1956 allows various adjustments in the securities premium account, which are inconsistent with the accounting standards. The proposed amendment will ensure that earnings are computed in accordance with Accounting Standards for EPS purposes. The ED is open for public comments till 10 May 2013.

Guidance Note on Report Under Section 92E of the Income Tax Act, 1961 (Transfer Pricing).

The ICAI has issued revised 2013 edition of the Guidance Note on Report Under Section 92E of the Income Tax Act, 1961 (Transfer Pricing). The revised edition has been issued as the Finance Act, 2012 has made significant changes such as definition of international transaction, advance pricing agreement, amendments relating to penalties, etc. The guidance has been given with regard to how the chartered accountant should exercise due diligence while verifying international transactions in view of the increased scope of the definition of international transactions. Guidance note can be downloaded from ICAI website.

IRDA removes 10% investment limit on reverse repo transactions in government securities

In December 2012, the IRDA permitted repo/reverse repo transactions in corporate bonds and government securities. In the said Circular, an overall limit of 10% of all funds was given for reverse repo transactions by life insurers and 10% limit for repo/ reverse repo transaction to general insurers.

After considering various representation received on the matter, the IRDA has stated that reverse repo transactions in government securities will now be treated at par with the Collateralised Borrowing and Lending Obligation (CBLO) transactions and the 10% investment limit will not be applicable to reverse repo transaction in government securities. Further, the IRDA has advised insurance companies to comply with the pattern of investments as prescribed by the Investment Regulations.

Expert Advisory Committee (EAC) Opinion :

Matter : Accounting for payments made in respect of land pending execution of conveyance deeds and borrowing costs incurred in respect there of.

Facts

The Government of India directed a State Port Trust (SPT) to construct a new Port. Accordingly, SPT acted as the executing agency and completed a Port. The Government of India vide their letter dated 14.02.2002 directed SPT to

handover the completed Port to ABC Limited (hereinafter referred to as ‘the company’) which is owned by the Government of India and was incorporated with the specific purpose of corporatising the Port. The SPT handed over all the assets (excluding land) and liabilities with respect to the Port Project to the company on 22.06.2001. The amount of Rs. 14.89 crore paid by SPT towards taking possession of land was retained by SPT in its books and not transferred to the books of the company as per the Government directions.

After nearly 6 years, viz., in the financial year 2007- 08, the Government of India finally decided that the land can be owned by the company and directed the company to pay to SPT the amount of Rs. 14.89 crore together with interest of Rs. 16.51 crore, all totaling to Rs. 31.40 crore. Additionally the company had also paid Rs 10.00 crore directly to the vendors of the land. Since the nature of title that will accrue to the company was not known at the time of making these payments, the company retained the entire amount in its books as ‘Advance for Land’ and grouped under ‘Loans and Advances’ in its balance sheet at Rs 41.40 crore, comprising (i) Rs. 24.89 crore of amounts paid for acquisition of land and (ii) Rs. 16.51 crore of interest relating to the period after taking possession of the land / commencement of commercial operations. Based on the subsequent developments the company expects to get ‘Orders of Alienation of Title’ for the land from the respective vendors of the land in due course of time.

Query

1. Whether the company can capitalise the value of land at Rs. 24.89 crore (Rs. 14.89 crore + Rs. 10.00 crore) in the financial year 2010-11, with a suitable disclosure in the Notes to Accounts as ‘Pending receipt of formal Orders of Alienation of Title, the consideration of Rs. 24.89 crore paid for acquisition of land in earlier years is capitalised during this year'.

2. Whether the company can charge the interest of Rs. 16.51 crore paid to SPT to its profit and loss account of the financial year 2010-11 as a separate line item with a suitable disclosure in the Notes on Accounts by stating that “Interest of Rs. 16.51 crore paid to SPT during the financial year 2007-08, which was kept under ‘Advance for Lands’ has been charged to revenue during this year as the company expects to get Orders of Alienation of Title for the land from the respective vendors of the land in due course of time. This is an extraordinary item and nonrecurring in nature”.

3. If the answer to the above questions are negative, what is the correct treatment to be accorded in the books of account of the company for this total amount of Rs. 41.40 crore? What kind of disclosure would be required to be made in the Notes to Accounts of the company ?

Opinion

1. The company should capitalise the total amount of Rs. 41.40 crore paid to SPT as ‘land’ and not as ‘Advance for land’ from the date when the company possess the beneficial interest in the same and its cost can also be measured reliably and not in the financial year 2010-11. However, the company should give suitable disclosures to convey to the users of financial statements that the execution of conveyance deeds in favour of the company is in progress.

2. The Government has made reference to a rate of interest as a means to compute final sale consideration of the land. The amount so determined is in substance not “interest” in the facts and circumstances of the case. Therefore, the question of disclosure of interest paid as an extraordinary item does not arise.

— Complied by — CA. Haresh P. Kenia |e-mail:hpkenia@mtnl.net.in | 9821351838

SECTION 92C OF INCOME TAX ACT, 1961 READ WITH RULE 10B OF THE INCOME TAX RULES, 1962 – TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE – APPLICATION OF PROFIT SPLIT METHOD {214 TAXMANN 7 (ST.)}

Circular No.2/2013 (F No. 500/139/2012) dated 26/03/2013

It has been brought to the notice of CBDT that clarification is needed for selection of profit split method (PSM) as most appropriate method. The issue has been examined in CBDT. It is hereby clarified that while selecting PSM as the most appropriate method, the following points may be kept in mind:

1. Since there is no correlation between cost incurred on R&D activities and return on an intangible developed through R&D activities, the use of transfer pricing methods [like Transactional Net Margin Method] that seek to estimate the value of intangible based on cost of intangible development (R&D cost) plus a return, is generally discouraged.

2. Rule 10B(1)(d) of Income-tax Rules, 1962 (the Rules) provides that profit split method (PSM) may be applicable mainly in international transactions involving transfer of unique intangibles or in multiple international transactions which are so interrelated that they cannot be evaluated separately for the purpose of determining the arm's length price of any one transaction. The PSM determines appropriate return on intangibles on the basis of relative contributions made by each associated enterprise.

3. Selection and application of PSM will depend upon following factors as prescribed under rule 10C(2) of the Rules :

• the nature and class of the international transaction;

the class or classes of associated enterprises entering into the transaction and the functions performed by them taking into account assets employed or to be employed and risks assumed by such enterprise;

the availability, coverage and reliability of data necessary for application of the method;

the degree of comparability existing between the international transaction and the uncontrolled transaction and between the enterprise entering into such transactions;

the extent to which reliable and accurate adjustments can be made to account for differences, if any, between the international transaction and the comparable uncontrolled transaction or between the enterprise entering into such transactions;

the nature, extent and reliability of assumptions required to be made in application of a method.

4. It is evident from the above that rule 10C(2) of the Rules stipulates availability, coverage and reliability of data necessary for the application of the method as one of the several factors in selection of most appropriate method. Accordingly, in a case, where the Transfer Pricing Officer (TPO) is of view that PSM cannot be applied to determine the arm's length price of international transactions involving intangibles due to non-availability of information and reliable data required for application of the method, he must record reasons for non-applicability of PSM before considering TNMM or comparable uncontrolled price method (CUP) as most appropriate method depending upon facts and circumstances of the case.

5. Application of Profit Split Method requires information mainly about the taxpayer and associated enterprises. Section 92D of the Income-tax Act, 1961 provides for maintenance of relevant information and documents by the taxpayer as prescribed under rule 10D of the Rules. Therefore, there should be good and sufficient reason for non-availability of such information with the taxpayer.

6. Depending upon facts and circumstances of the case, TPO may consider TNMM or CUP method as appropriate method by

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selecting comparables engaged in development of intangibles in same line of business and make upward adjustments taking into account transfer of intangibles without additional remuneration, location savings and location specific advantages.

SECTION 92C OF INCOME TAX ACT, 1961 – TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE – CLARIFICATION ON FUNCTIONAL PROFILE OF DEVELOPMENT CENTRES ENGAGED IN CONTRACT R&D SERVICES WITH INSIGNIFICANT RISK – CONDITIONS RELEVANT TO IDENTIFY SUCH DEVELOPMENT CENTRES {214 TAXMANN 9 (ST.)}

Circular No.3/2013 (F No. 500/139/2012) dated 26/03/2013

It has been brought to the notice of CBDT that there is divergence of views amongst the field officers and taxpayers regarding the functional profile of development centres engaged in contract R&D services for the purposes of transfer pricing audit. Moreover, while at times taxpayers have been insisting that they are contract R&D service providers with insignificant risk, the TPOs are treating them as full or significant risk-bearing entities and making transfer pricing adjustments accordingly. The issue has been examined in CBDT. It is hereby clarified that a development centre in India may be treated as a contract R&D service provider with insignificant risk if the following conditions are cumulatively complied with :

1. Foreign principal performs most of the economically significant functions involved in research or product development cycle whereas Indian development centre would largely be involved in economically insignificant functions;

2. The principal provides funds/ capital and other economically significant assets including intangibles for research or product development and Indian development centre would not use any other economically significant assets including intangibles in research or product development;

3. Indian development centre works under direct supervision of foreign principal who not only has capability to control or supervise but also actually controls or supervises research or product development through its strategic decisions to perform core functions as well as monitor activities on regular basis;

4. Indian development centre does not assume or has no economically significant realized risks. If a contract shows the principal to be controlling the risk but conduct shows that Indian development centre is doing so, then the contractual terms are not the final determinant of actual activities. In the case of foreign principal being located in a country/territory widely perceived as a low or no tax jurisdiction, it will be presumed that the foreign principal is not controlling the risk. However, the Indian development centre may rebut this presumption to the satisfaction of the revenue authorities; and

5. Indian development centre has no ownership right (legal or economic) on outcome of research which vests with foreign principal, and that it shall be evident from conduct of the parties. The satisfaction of all the above mentioned conditions should be borne out by the conduct of the parties and not merely by the contractual terms.

SECTION 90 OF INCOME TAX ACT, 1961 – DOUBLE TAXATION AGREEMENT - AGREEMENT FOR EXCHANGE OF INFORMATION WITH RESPECT TO TAXES WITH FOREIGN COUNTRIES - GIBRALTAR {214 TAXMANN 14 (ST.)}

Notification No. 28/2013 [F. No. 503/11/2009-FTD-I] dated 01/04/2013

The Agreement between the Government of Republic of India and the Government of Gibraltar for Exchange of Information with respect to taxes was signed at London on the 1st day of February, 2013. The Central Government has directed that all the provisions of the said Agreement shall be given effect to in the Union of India with effect from the 11th day of March, 2013.

2013APRIL-MAY

2013APRIL-MAY

08| The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter |05

RECENT Case Laws & OTHER DEVELOPMENTS/AMENDEMENTS FORTHCOMING PROGRAMMES

FORTHCOMING PROGRAMMES FOR MEMBERS

Date Seminar on Timings Venue Speakers Co-ordinators Fees CPE

1st June to RRC - Alibaug Eminent Speaker CA Ramanand Gupta Rs.7000/- 6 Hrs3rd June 2013 9322231113 For Adult &

Rs. 4000/- For Child

FORTHCOMING PROGRAMMES FOR STUDENTS

Date Seminar on Timings Venue Speakers Co-ordinators Fees CPE

25th & 26th National Sports Competition - Vasai Hostel - CA Preksha Jain Free -May, 2013 Vasai (East) 9029877140

CA. Kishor Vaishnav

9892194382

Mr. Atul Neswankar

9823616515

FORTHCOMING PROGRAMMES OF VASAI - VIRAR STUDY CIRCLE

Date Seminar on Timings Venue Speakers Co-ordinators Fees CPE

8th June, 2013 Income Tax Sites Related 3.30 p.m. to Kubera / Manashree, CA. Haresh Mehta CA. Xavier Rajan - 3 Hrs

to Income Tax Returns & TDS 7.00 p.m. Vasai CA. Kalpesh Shah 9371720027

Returns (Followed by CA. Jagadeesh Devadiga

Dinner) 9422475945

9890121996

22nd June, Issues Related to HAVALA 3.30 p.m. to Kubera / Manashree, CA. Sujatha Ranganekar CA. Xavier Rajan - 3 Hrs

2013 Transactions 7.00 p.m. Vasai 9371720027

(Followed by CA. Jagadeesh Devadiga

Dinner) 9422475945

CA. Anadi Bhase

9890121996

(To be confirmed)

CA. Anadi Bhase

(To be confirmed)

(To be confirmed)

Residential Refresher Course at Alibaug

A PLACE OF OLD TOWN CONNECTING TO THE MARATHA

Starting on Saturday, 1st June, 2013 to Monday, 3rd June, 2013(3 Days & 2 Nights)

Knowledge filled seminar with CPE 6 Hrs.

Course Menu

Technical Session on Accounting Standards & Various Act Applicable to Construction Industry

Eminent Speakers

Also Fascinating Sight Seeing ?

l Historic fort l Lovely Beaches & Clean Water lTerrific Atmosphere lWestern Ghats and Many More

Only ` 7,000/-* per person & 4,000/-* for Child below 9 year, only for first 50 Participants.

Thereafter ` 7,500/- till 60 Seats.

Stay at Future Ideas Company Ltd. Hotel with full of Luxurious Amenities

The Future Outpost, Chorande, Post: Mapgaon, Alibag, Dist: Raigad-402201

Contact:- Vasai Branch of WIRC- 022-65568900/28102193 Email-id:- vasaibranch@gmail.com

Programme ChairmanCA. Ramanand Gupta

Chairman

9322231113

Programme Co-ordinator

CA. Vimal Agrawal CA. Umesh Mestry CA. K.B.Kothari CA. Sumeet Doshi CA. Preksha Jain CA. Pramod DhamankarCA. Rajesh Kotak CA. Deepak Bansal

`

— Complied by

e-mail: gatu_1968@yahoo.co.in | 9869011148

1) UTI Mutual Fund vs. ITO (No. 2) (Bombay High Court)

Stay of demand can be granted even if there is no financial hardship

The Assessing Officer (AO) raised a demand on the assessee on the same lines as had been done in the preceding Assessment Year (AY). Though in the preceding AY, the assessee had obtained a stay from the High Court (see UTI Mutual Fund vs. ITO 345 ITR 71 (Bom)), the AO refused to follow that for the present AY. The assessee filed a Writ Petition to challenge the refusal to grant stay. To oppose the grant of stay, the Department relied on CIT vs. IBM India Pvt. Ltd. where the Karnataka High Court had held that in matters involving large amounts due to the Revenue, an interim Order of stay would be granted only in case of genuine financial hardship of the assessee and not otherwise. The Department argued that as the assessee did not have any financial hardship, the stay should be rejected. The Bombay High Court rejected the Department’s plea and granted stay of the demand on the following grounds:

The Order of the Karnataka High Court in CIT vs. IBM India P. Ltd cannot be read to mean that consideration of whether an assessee has made out a strong prima facie case for stay of enforcement of a demand is irrelevant. Nor is the law to the effect that absent a case of financial hardship, no stay on the recovery of a demand can be granted even though a strong prima facie case is made out. In considering whether a stay of demand should be granted, the Court is duty bound to consider not merely the issue of financial hardship, if any, but also whether a strong prima facie raising a serious triable issue has been raised which would warrant a dispensation of deposit. In CEAT Ltd. v. UOI 2010 (250) ELT 200 (Bom), it was held that “If the party has made out a strong prima facie case, that by itself would be a strong ground in the matter of exercise of discretion as calling on the party to deposit the amount which prima facie is not liable to deposit or which demand has no legs to stand upon, by itself would result in undue hardship of the party is called upon to deposit the amount.” Where a strong prima facie case has been made out, calling upon the assessee to deposit would itself occasion undue hardship. Where the issue has raised a strong prima face case which requires serious consideration as in the present case, a requirement of pre-deposit would itself be a matter of hardship. Also the manner in which the Revenue has sought to brush aside a binding decision of the Court in the case of the assessee on the issue of a stay on enforcement for the previous year has to be serious disapproved. No public authority, including the Revenue, can ignore the principle of precedent. Certainty in tax administration is of cardinal importance and its absence undermines public confidence.

2) Ester Industries Ltd. v.Union of India (DELHI HIGH COURT) [WP (C) No.7482 of 2011] Date of Pronouncement – 28/01/2013

Validity of Reopening based on retrospective amendment :

The original assessment was made on 30/11/2006 U/s 143(3). The Finance Act, 2008 inserted clause (h) of Explanation 1 to section 115JB retrospectively from 01/04/2001. The effect of this clause was to increase the book profit by the amount of deferred tax and the provision thereof. It is not in dispute that one of the reasons to believe, as recorded by the respondent, is that in view of the retrospective amendment, the deferred tax liability, for which a provision had been made in the accounts, was to be added back to the book profit. The assessment was reopened within four years from the end of the relevant assessment year. The Assessing Officer (AO) has to show some “tangible material” which could form the basis for his belief that income chargeable to tax has escaped assessment. That material is the retrospective legislative amendment. Under the pre-1989 law of reassessment, information as to the true state of law could form a

— CA. Hemant R. Shah |

RECENT HIGH COURT DECISIONS

valid basis for reopening the assessment: Maharaj Kumar Kamal Singh v. CIT [1959] 35 ITR 1 (SC). A retrospective amendment of the law can even permit action for rectification of the assessment on the ground of mistake apparent from the record: M.K. Venkatachalam v. Bombay Dyeing & Manufacturing Co. Ltd. [1958] 34 ITR 143 (SC). But just because action for rectification is permissible, it does not follow that no action can be taken for reopening, for, the powers U/s 147 and U/s 154 are not mutually exclusive; there could be some overlapping, and so long as the conditions for the applicability of the sections are satisfied, the action taken thereunder has to be validated and it is no answer to say that action should be taken under another section. Under this principle, it is held that one of the reasons for reopening in the present case being the retrospective amendment, the notice is valid.

1) Development Credit Bank Ltd vs. DCIT (ITAT Mumbai)

Section 32: Special Bench verdicts on Sale & Lease Back & lease finance are not good law

The assessee, a Bank, bought assets from its customers and leased it back to them (“sale and lease back”). It also purchased assets identified by its customers and leased it to them (“finance lease”). The assessee claimed depreciation on the assets on the ground that it was the owner and had used the assets for business purposes. The AO, relying on MidEast Portfolio Management 87 ITD 537 (Mum) (SB) and IndusInd Bank 135 ITD 165 (Mum) (SB), disallowed depreciation on the ground that the transactions were an “eyewash” and “colourable device”. The CIT(A) partly confirmed the disallowance. On appeal by the assessee to the Tribunal, the Tribunal allowed the claim on the following grounds:

The issue of whether the lessor is entitled to claim depreciation in the case of a “sale and lease back” transaction as well as in a “finance lease” have been laid to rest by the judgements in ICDS 350 ITR 527 (SC), Kotak Mahindra Finance 317 ITR 236 (Bom) and Cosmo Films 338 ITR 266 (Del) where it was held that the lessor is eligible to claim depreciation. The judgements of the Special Bench in MidEast Portfolio Management 87 ITD 537 (Mum) (SB) and IndusInd Bank 135 ITD 165 (Mum) (SB) are impliedly overruled.

2) Banwari Sitaram Pasari v. ACIT (HUF) (PUNE Tribunal-B Bench)

(IT Appeal No.1489 (PUNE) of 2011) (A.Y.2006-07) (Date of pronouncement 22/11/2012)

In Speculation trading, there is no ‘sale’ or ‘turnover ’ effected within the meaning of section 44AB:

It is noted that the assessee is engaged in the business of on-line trading of commodities and in this speculation activity, there is no physical delivery of commodities given or taken. Whether there was any element of ‘turnover ’ in such activity is the bone of contention between the assessee and the Revenue. In somewhat similar situation, co-ordinate Bench of Mumbai Tribunal in the case of Growmore Exports Ltd. v. ACIT [2001] 78 ITD 95, has dealt with requirement to get the accounts audited U/s 44AB. In this case the assessee was engaged in the speculation transaction of sale and purchase of units without taking delivery and the account was settled by crediting the difference. The Tribunal after considering section 18 of the Sale of Goods Act, 1930, observed that no property in the said units passed on to the assessee in as much as the assessee never acquired the property in the units as the units contracted to be bought were future unascertained goods. Similarly, it could not pass on the property to the party to whom the units were contracted and therefore, there was no ‘sale’ or ‘turnover ’ effected by the assessee in the legal sense for the purposes of getting the accounts audited U/s 44AB.

In the instant case also, the transaction of buying and selling of commodities is a speculative activity where no physical delivery is taken or given and in this view of the matter, it is held that there was

RECENT TRIBUNAL DECISIONS

2013APRIL-MAY

2013APRIL-MAY

04| The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter |09

VISION 2013 -2014

RECENT Case Laws & OTHER DEVELOPMENTS/AMENDEMENTS

We believe in Perfect Planning & Action.

We would like to contribute in our best to achieve the vision of our Visionary Leader

of ICAI and chairman of WIRC.

To ensure Proper Coordination and Smooth functioning of branch/Study

Circle in achieving our goals.

To conduct more and more certification courses like IFRS, ISA, Indirect

Taxation, Valuation, Arbitration, Concurrent Audit, Internal Audit, Audit on

Co-operative Societies & Bank etc for Members to enhance their professional

knowledge and to grab the new professional opportunities.

Enhancement & updating of knowledge through Innovative quality Programs

for Members and Students.

Members Regional Convention- December 2013 National Students Convention- July 2013

Job Mela for Members And Students

Works Shop on Information Technology

E-Newsletter for Students.

As a part of society and to fulfil our responsibility towards the society -

conduct Social and environmental awareness program.

Union Budget Meeting

Health Check-up/ Blood Donation

Tax Clinic for Public

Investor Awareness Programme

Addressing the concerns of Small and Medium practitioners through

Networking.

Conducting Social Events as CA Brand Building Measures in Branch Area.

Coordinating with various Institutions, Organisations & Corporate at

Different Levels for Tie-up arrangements for the benefits of Members &

Students.

To Create Awareness amongst Members and Public at Large with regard to the New Laws, Rules & Regulations & Investor Awareness though conducting various seminars & Public Meetings.

Mock Test, Industrial Visits and Conducting in house Crash Course/Regular

Lectures for CPT & IPCC Students.

Co-ordinating with various Institutes, Colleges & Schools for CA Career

counselling among students & for Brand building.

To act as felicitator in forwarding members’ & students in representing their

problems & difficulties to ICAI in profession related matter.

Playing a role of felicitator in forwarding members’ suggestions through ICAI to Central & State Government on various economic and commercial legislations & Exposures drafts issued by ICAI.

We will try to achieve all the vision with the joint efforts and branch will

groom at newer height.

Finally, we take this as benchmark, let’s all of us drive towards achieving our

goals.

MAJOR HIGHLIGHTS OF VISION 2013-2014

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Members Committee

Students Committee (WICASA)

Sr.No Names of The Committee Members

1 CA. Vimal Agrawal Chairman

2 CA. Manik Daga Member

3 CA. Rakesh Soni Member

4 CA. Lalit Bajaj Member

5 CA. Purshottam Soni Member

6 CA. Rahul Sharma Member

7 CA. Mukesh Kumar Sharma Member

8 CA. Ravi Kumar Gupta Member

9 CA. Aliasgar Kanchwala Member

10 CA. Jayesh Mishra Member

11 CA. Vinay Bachhuka Member

12 CA. Asha Patel Member

13 CA. Priyanka Maheshwari Member

14 CA. Saurabh Poddar Member

15 CA. Vinit Kedia Member

Sr.No Names of The Committee Members

1 CA. Preksha Suresh Jain Chairperson

2 CA. Suresh Chand Jain Member

3 CA. Swaroop Jain Member

4 CA. Chetan H Mehta Member

5 CA. Unmesh Narvekar Member

6 CA. Pramod Dhamankar Member

7 CA. Navin Saraf Member

8 CA. Vinay Jain Member

9 CA. Rajkumar Jain Member

10 CA. Ankit Jain Member

11 CA. Smita Shetty Member

Administration Committee

ITT/Orientation & GMCS Committee

Program Committee

Research, Representation & Grant Committee

Newsletter, Website & Publication Committee

Committee For Members In Industry

Sr.No Names of The Committee Members

1 CA. Kishor Vaishnav Chairman

2 CA. Chirag Gogri Member

3 CA. Anil Kumar Mehta Member

4 CA. Manish Agarwal Member

5 CA. Harphool Githala Member

6 CA. Lalit Jain Member

7 CA. Ankit Nirmal Jain Member

8 CA. Kamal Sharma Member

9 CA. Rahul Dainit Member

10 CA. Rakesh Mishra Member

Sr.No Names of The Committee Members

1 CA. Ramanand Gupta Chairman

2 CA. Ashwin Dedhia Member

3 CA. Bhanwar Borana Member

4 CA. Abhishek Bansal Member

5 CA. Amar Kakaria Member

6 CA. Atul Mehta Member

7 CA. Rajesh Kotak Member

8 CA. Aniket Padhye Member

9 CA. Pankaj Mall Member

10 CA. Ramesh Pandey Member

Sr.No Names of The Committee Members

1 CA. Dayaram Paliwal Chairman

2 CA. Pradeep Chaturvedi Member

3 CA. Nitesh Jain Member

4 CA. Nitesh Chhavcharia Member

5 CA. Murli Sharma Member

6 CA. Grashima Sanghvi Member

7 CA. Manisha Rupareliya Member

8 CA. Santosh Sharma Member

9 CA. Suresh Jha Member

10 CA. Philip Colaco Member

11 CA. Pooja Sharma Member

12 CA. Kiransingh Rajpurohit Member

13 CA. Gauri Chitlangia Member

Sr.No Names of The Committee Members

1 CA. K. B. Kothari Chairman

2 CA. Nitesh Shah Member

3 CA. Nitesh Kothari Member

4 CA. Arjun Sani Member

5 CA. Bharat Majithia Member

6 CA. Dinesh Jain Member

7 CA. Sunil Kothari Member

8 CA. Kailesh Jain Member

9 CA. Vishnu Sodani Member

10 CA. Sharvan Malviya Member

11 CA. Rajesh Utkar Member

12 CA. Sanjay Kothari Member

Sr.No Names of The Committee Members

1 CA. Umesh Mestry Chairman

2 CA. Kishor Doshi Member

3 CA. Lalit Munoyat Member

4 CA. Dushyant Chaudhari Member

5 CA. Ashutosh Vidwans Member

6 CA. Hemant Shah Member

7 CA. Alpesh Shah Member

8 CA. Prasad Chitre Member

9 CA. Haresh Kenia Member

10 CA. Haresh Mehta Member

11 CA. Sanjay Paharia Member

Sr.No Names of The Committee Members

1 CA. Sumeet Doshi Chairman

2 CA. Kamal Dhareva Member

3 CA. Mayank Bidawatka Member

4 CA. Ronak Dharnidharka Member

5 CA. Saurabh Jain Member

6 CA. Akshay Ajmera Member

7 CA. Manish Hingar Member

8 CA. Kameshwar Rao Subudhi Member

9 CA. Pawan Agarwal Member

10 CA. Aditya Shripal Jain Member

11 CA. Sanjay Kumar Jain Member

12 CA. Nawal Bachhuka Member

13 CA. Lucky Talreja Member

14 CA. Nilesh Kabra Member

15 CA. Gopal Bohra Member

4) ITAT specifies Procedure & Guidelines for hearing Appeals via Video-Conferencing:

The decision taken in March, 2012 to set up E-Tribunal for hearing of appeals via video-conferencing has finally seen the light of day. The detailed Guidelines on the subject have been formulated by the Tribunal.

The E-Tribunal will be launched on 10th December, 2012 at Delhi, Mumbai, Nagpur & Ahmedabad. It will soon be extended to other cities as well.

The ITAT Bar Association congratulates the Hon’ble Members of the Tribunal and the officials involved for the speedy implementation of the E-Tribunal as this will not only lead to a speedy disposal of cases but will also result in considerable cost savings for the Government and the taxpayers. We wish the E-Tribunal great success!

5) Control on count of Tax Audits:

Government has put the facility for CAs to upload Form 3CA, 3CB, 3CD etc also. If uploading these forms are made compulsory (it seems so) from AY 2013-14 by making appropriate Rules under I.T.Rules, 1962, then we will be able to track as to how many Reports are filed with the Department in our name.

ICAI can also draw attention of CBDT and put control in this website so that only 45 Reports can be uploaded in name of one CA (subject to other Rules that audit regarding section 44AD r.w. 44AB should not be counted etc.).

6) CBDT Scheme for processing of TDS & adjustment of Refunds:

With a view to addressing the numerous problems being faced by taxpayers due to faulty processing of TDS claims, the CBDT has formulated the “Centralised Processing of Statements of Tax Deducted at Source Scheme, 2013?. The Scheme provides for the manner in which TDS correction statements will be filed, their processing, rectification of mistakes etc. In particular, it is provided that an adjustment of refunds against outstanding tax demand can be done U/s 245 of the Act only after issuing prior intimation to the taxpayer. An appeal can also be filed against the actions of the CPC. (Effective from 15th January, 2013)

The Scheme is a step to give effect to the directions of the Delhi High Court in Court On Its Own Motion vs. CIT where the numerous hardships faced by the assessees were noticed.

7) e-filed Returns in CPC can be viewed in AST:

DGIT (LOGISTICS) Govt. of India, Ministry of Finance,

Ground Floor, E-2, A.R.A. Centre, Jhandewalan Extn. New Delhi-110055

Tel:- 23537002, Fax:- 23593267 (F.No.17/8/2012-MIS-DOMS/ Dated:04/01/2013)

As it was bought to the notice of the DGIT (Logistics) by the field formations that the e-filed Returns were not visible to the concerned Assessing Officers.

The matter was taken up with DGIT (Systems) who has informed that the following information can be accessed on the system by the AO with regard to e-filed Returns of his/her jurisdiction (ward/ circle):

(i) The e-filed Returns transferred from CPC to AST for processing can be viewed by the AO/Range/CIT.

(ii) The AO can view the e-Returns that are pending for processing at his end.

(iii)The AO can view the e-Return filed under his jurisdiction with details of number of Returns received with the digital signature and number with/without ITR-V.

(iv) The e-filed Return summary report for any period is available to the AO.

(v) The e-filed Return detailed report for any period is also available to the AO.

SUB-COMMITTEE FOR THE YEAR 2013-14

no turnover constituted in the amount of Rs.18666488/- for the purposes of considering the liability of assessee to get the accounts audited U/s 44AB. Thus, the penalty U/s 271B imposed by the AO was deleted.

3) Branch Manager, UCO Bank vs. ACIT (ITAT Cuttack)

Section 272A(2)(k): Delay in filing TDS Return through NSDL is a technical breach:

The AO imposed penalty U/s 272A(2)(k) for delay in filing the TDS Return U/s 200(3). The assessee’s argument that the delay was due to a shortage of staff was rejected on the ground that the same was not reasonable cause. The CIT(A) confirmed the penalty. On appeal by the assessee to the Tribunal, the appeal was allowed to the assessee on the following grounds:

The penalty was levied by the Department in a mechanical manner. The assessee would have filed the hard-copy of the quarterly statements but this is not accepted by the Department. The computer has to generate a number for acknowledging receipt of such statements. The number is not generated till the computer tallies the PAN and the information available on AS-26. The late filing is caused by an administrative glitch. The delay occurs because the assessee-deductors are dependent on information of TDS and its deposit from the sub-treasury of the Government and the filing of the e-return through the designated service provider of the Income-tax Department. The assessee-deductors have no technical competency to file the Return by themselves without external aid. They are also not competent to do so by themselves as per Rule 37B and “Filing of Return of Tax deducted at source” scheme 2003, which requires the submission of quarterly statement through NSDL or other approved agencies which are third parties and not under the control of the assessees. Penalty U/s 272(A)(2) cannot be levied in a routine manner. The late filing of TDS Return cannot be said to be intentional or willful. It is only a technical or venial breach.

1) Section 194A: CBDT notifies ‘National Skill Development

Fund’

Notification No.4/2013 [F.NO.275/28/2012-IT(B)], Dated

24/01/2013

In exercise of the powers conferred by sub-clause (f) of clause (iii) of

sub-section (3) of section 194A of the Income-tax Act, 1961, the

Central Government hereby notifies the National Skill Development

Fund (PAN: AABTN5824G) for the purpose of sub-clause (f) clause

(iii) of sub-section (3) of said section.

2) Delhi HC quashes Circular imposing higher rate of Service

tax:

DELHI CHARTERED ACCOUNTANTS SOCIETY (REGD.) versus

UNION OF INDIA AND OTHERS (DELHI HIGH COURT)

The issue was that what would be the rate of Service tax where the

service is provided by the Chartered Accountants prior to

01/04/2012 and the invoice is also issued prior to 01/04/2012 but

the payment is received after 01/04/2012?

It was held that the rate of tax will be 10% and not 12%.

3) CBDT Circular clarifies issues relating to Export of Computer

Software:

The CBDT has issued a comprehensive Circular No.01/2013 dated

17/01/2013 in which it has provided clarifications on various issues

relating to the export of computer software and the allowance of

deduction under sections 10A, 10AA and 10B of the Income-tax Act,

1961. The clarifications seek to address and resolve the several

disputes that have arisen between the software industry and the

Income-tax Department.

OTHER RECENT AMENDMENTS/DEVELOPMENTS

2013APRIL-MAY

2013APRIL-MAY

10| The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter

RECENT DEVELOPMENTS

Dear Professional Colleagues,

On the Special occasion of my first communication as chairman

of Vasai branch, the most vibrant branch of WIRC,

I would like to thank all Vasai Branch members

who showed confidence & aptitude in my work &

elected me as committee member in 2013 branch

elections and I am also extremely thankful to my

Committee members for reposing the assurance

and electing me as a Chairman of our beloved

Branch. It's indeed a privilege to hold the

reverential position and lead the branch under the

defining guidance and the powerful inspiration of

all my members. I envision and wish to secure my

attempts to multiply the glory of the branch while

holding the assets which we have with us in the branch.

All attempts aim to engross success. The field has enormous

potential to empower the young professionals and make them

thrive in the field vibrantly. It's all about LEARN-EARN-RETURN.

Learn the concepts and apply them to earn efficiently. We are

being the responsible citizens of India need to return to our

society. I believe it is fully possible under able guidance of

mentors, consultants and leaders of our fraternity.

In an ever increasing competitive world, CAREER

DEVELOPMENT is utmost priority for every student. By keeping

this in mind branch had participated at Sanjeevani Education &

Career Fair wherein more than 600 students shown their keen

interest towards Chartered Accountant as career. Where

Dr. Sanjeev Naik Member of Parliament-Thane, Mr. Glibert

Mendonca MLA-Mira Bhayandar, Mr. Dhruv Kishor Patil Mira-

Bhayandar Corporator and various other Dignitaries attended

the programme and thereby we also felicitated with Certificate

of Appreciation by gracious hands of Member of Parliament

Dr. Sanjeev Naik. The aims of these events at fostering a healthy

and fruitful interaction between students, parents, Education

and Career Oriented Sectors.

With the vision to further cheer the students & to appraise their

preparation for the examination, the Branch had conducted

Mock Test Papers Series-I & II for IPCC and Final Course students

to evaluate their preparation for the main examination to be held

in May, 2013. We have also organised Crash Course for IPCC ,

wherein large number of students took benefit.

We have Felicitated New WIRC Office Bearer CA Mangesh Kinare

as Chairman, CA Parag Raval as Vice Chairman, CA Neel

Majithia as Secretary and CA Priti Savla as Treasurer and

CA

at the Seminar on Developing Excellence and Mastering Success

by eminent speaker CA Pratik Singhi held on

13th April 2013, wherein more than 250

Members participated and graced the occasion.

We have also felicitated our last Managing

Committee Member under the Leadership of

CA Shweta Jain for achieving the Best Branch

Award & Highly Commendable Performance

Certificate for Students activities from WIRC

under large category and Highly Commendable

Performance Certificate from ICAI. I congratulate

her for the successful completion of her tenure.

We are organising a Residential Refresher Course

at Alibaug for 3 days -2 nights starting from 1st June. A place of

serene town renowned for its many beaches, clean waters, and

terrific atmosphere – a popular gateway destination for

Mumbaiites. It used to be the headquarters of the great Maratha

Admiral, Kanhoji Angre and has the famous Kolaba fort in the

sea. I request to each one of you and your family to participate

and enjoy this RRC.

I give my Best wishes to the upcoming team of Vasai-Virar and

Bhayandar Study Circle and humbly appeal to them to start

student oriented programmes which will be more beneficial to

the students.

As CA Exams fever is going on & I take this opportunity to wish

Best of Luck for Success to all who are appearing in these Exams.

Best of Luck…!

I can ensure that the journey of 2013 will be splendid and I would

seek your whole-hearted co-operation to consummate our

objective to ensure the chase of professional excellence.

To Conclude I would like to quote George Bernard Shaw

“Imagination is the beginning of creation. You imagine what you

desire; you will what you imagine; and at last you create what

you will”. So let’s start imagine first & achieve the success which

we desire by working with sincerity coupled with detachment.

With Warm Regards,

CA Ramanand Gupta Chairman

Sandeep Jain as WIRC Nominee & Regional Council Members

FROM CHAIRMAN’S DESK

— Complied by — CA. Lalit Munoyat |e-mail:munoyat@gmail.com |9820193508

1) The activity of construction of roads on BOT basis is not leviable to service tax either under commercial or industrial construction service, works contract service, maintenance, management or repair of immovable property service

or under Business Auxiliary Service. CESTAT MUMBAI

2) GTA service provider is not required to furnish evidence of non-availment of Cenvat scheme to qualify the benefit of Notification No. 32/2004-ST in as much as there is no such conditions in the notification for making declaration on each consignment note. CESTAT NEW DELHI

3) The provision of services in relation to conducting a chit business is a not a taxable service for the purposes of section 65B(44) of the Finance Act, 1994 and therefore entry No. 8 of notification No.26/2012-ST dated 20.06.2012 is quashed in so far as it seeks to subject the activities of a business chit fund companies to service tax to the extent of 70% of the consideration received for the services.

4) Due date of filing half yearly ST-3 return for the period from 1st October 2012 to 31st March 2013,extended to from 25th April, 2013 to 31st August, 2013

5) Non filing of Service tax Return on misguidance by the Consultant should not attract penalty under Section 76, 77 and 78 of the Finance Act, 1994. Ignorance of law is enough to set-aside penalty CESTAT AHMEDABAD

6) Refund claim of the respondents on which credit availed prior to the Registration with the Department is allowed. The contention of the department that the Assessee entitled to refund claim of input service credit only for the period after registration is rejected. CESTAT CHENNAI

7) Services provided by way of erection of Pandal or Shamiana would attract the levy of service tax because this is not a transaction involving “transfer of right to use goods” and hence deemed sale. Circular No. 168/3 /2013 - ST

8) Once proportionate service tax is borne by the ultimate consumer of the service, namely the worker/ beneficiary, the manufacturer cannot take credit of that part of the service tax which is borne by the consumer. Thus proportionate credit, to the extent it is embedded in the cost of food recovered from the employee/ beneficiary, is not admissible to the appellant. CESTAT AHMEDABAD

1) It is a settled law that if a Job worker is functioning under Notification No. 214/86-C.E. and if the ultimate principal manufacturer is discharging Central Excise duty liability after consumption of job worked goods, it has to be held that the said notification does not exempt the goods manufactured on job work by the Job worker .The Job Worker is therefore entitled to Cenvat Credit on inputs and capital goods CESTAT, AHMEDABAD

2) The very objective of conducting the Audit of records of an assessee is to ascertain the correctness of payment of duty, availment of CENVAT Credit, etc.. Any shortcomings noticed during the course of Audit, itself cannot be reasoned that the deficiency was due to mala fide intention on the part of assessee unless it is found

SERVICE TAX

CENTRAL EXCISE

that the duty short paid or not paid was not on account of suppression of fact, mis-statement etc., penalty under section 11AC of Central Excise Act, 1944 cannot be justified. CESTAT, KOLKATA

3) The Hon’ble High Court in the case of Commissioner of Central Excise, Pondicherry v.CESTAT [2009 (240) E.L.T. 367] has held that even when there was no stock of input ‘as such’ or ‘in progress’ having put to use, the transfer of cenvat credit under the provisions of Rule 10 of Cenvat Credit Rules is permissible. CESTAT NEW DELHI

4) Unconditional stay - Recovery in view of 35C ( 2A ) - Whether on expiry of six months from the date of stay order, the Appellant is required to file an application for extension of stay - Held that:- For the period subsequent to the insertion of the Second Proviso the Tribunal should, as a matter of practice, specify the time period during which the stay shall operate after exercising its judicial discretion. The period may be limited or could be co-terminous with disposal of appeal - on consideration of all relevant factors in a given fact situation. CESTAT NEW DELHI

5) No merit in the contention of the revenue that the job workers cannot prefer to pay excise duty in spite of having exemption notification bearing No. 214/86 exempting the job workers from paying duty in view of the mandatory provision of Section 5A(1A) of the Act. - Decided in favor of assessee and against the revenue. GUJARAT HIGH COURT

6) Any clarification issued by the Board is binding to the Central Excise Officers who are duty-bound to observe and follow such circulars. Whether Section 37B is referred to in such circular or not is not relevant. – GUJARAT HIGH COURT

7) Where a writ petition seeks enforcement of fundamental right to carry on trade or business without any discrimination of any nature the same is maintainable despite the fact that there is a remedy of appeal available under the provision of the relevant law

1) If the selling dealer has not paid the tax It, however, does not empower the authority to revoke the input tax credit availed on a plea that the selling dealer has not paid the tax. It only relates to incorrect, incomplete or improper claim of input tax credit by the dealer. It is, therefore, for the department to proceed against the selling dealer for recovery of tax in the manner known to law MADRAS HIGH COURT

2) Retrospective cancellation of the registration certificate of the selling dealer can have no effect on the person who acted upon the strength of the registration certificate when it was in force. Input tax credit can’t be denied Whatever benefits that has accrued to the petitioners based on valid documents in the course of sale and purchase of goods, for which tax has been paid cannot be declined. MADRAS HIGH COURT

3) Even if the factum of existence of branches was not disclosed in the registration application the benefit of Form F can’t be denied when the genuineness or correctness of the form issued by its branches situate outside the State., who had obtained the form F from their registering authority is not an issue. Allahabad High Court

Disclaimer: The above compilation is meant only for academic purposes. The readers are advised to take expert legal opinion before acting on the basis of the above compilation. The author will not be responsible for any unintended inference that may be made by any reader from the above compilation.

VAT

2013APRIL-MAY

PHOTO–GALLERY

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

PHOTO–GALLERY

| 11

GLIMPSES AT FELICITATION PROGRAMME (Dated on:- 13th April, 2013) GLIMPSES at CA CAREER COUNSELING PROGRAMME(DATED ON:- 6th & 7th April, 2013)

ORIENTATION PROGRAMME FOR MANAGING COMMITTEE MEMBERS ORGANISED BY WIRCTH TH(DATED ON 12 & 13 APRIL ,2013)

THSEMINAR ON DEVELOPING EXCELLENCE & MASTERING SUCCESS (DATED ON :- 13 APRIL, 2013)

WIRC OFFICE BEARER- 2013

REGIONAL COUNCIL MEMBERS

Out Going Managing Committee Members Felicitated with Gracious Hands CA. Mangesh Kinare, Chairman-WIRC

(L-R) CA. Umesh Mestry (Secretary-Vasai Br.), CA. K. B. Kothari (Treasurer-Vasai Br.), CA. Vimal Agrawal (Vice-Chairman-Vasai Br.), CA. Parag Raval (Vice-Chairman-WIRC), CA. Mangesh Kinare, (Chairman- WIRC), CA. Ramanand Gupta (Chairman- Vasai Br.), CA. Neel Majithia (Secretary- WIRC), CA. Priti Savla (Treasurer-WIRC)

& CA. Sandeep Jain (WIRC-Nominee)

CA. Ramanand Gupta (Chairman) Felicitating

CA. Mangesh Kinare, (Chairman, WIRC)

CA. Dayaram Paliwal (Committee Member)

Felicitating CA. Sandeep Jain (WIRC-Nominee)

CA. Dayaram Paliwal(Past Chairman)

CA. Kishor Vaishnav (Secretary & Treasurer)

CA. D. P. Revawala (Ex-Office Member)

CA.Rakesh Soni (Ex-Committee Member)

CA. Shweta Jain (Immediate Past Chairperson)

CA. Ramanand Gupta (Vice-Chairman)

CA. Unmesh Narvekar (Past Chairman)

CA. Lalit Bajaj (Past Chairman)

CA. Pramod Dhamankar (Past Chairman)

CA. Preksha Jain(Chairperson-WICASA)

FelicitatingCA. Mahesh Madkholkar

(Chairman-WICASA WIRC)

CA. Ramanand Gupta (Chairman) Felicitating

CA. Sunil Patodia, (RCM)

CA. Kishor Vaishnav (Committee Member)

Felicitating CA. Girish Kulkarni,( RCM)

CA. Rajesh Kotak (Convenor,Vasai -Virar

Study Circle) Felicitating CA. Vishnu Agarwal (RCM)

CA. Deepak Bansal (Convenor-Bhayandar

Study Circle) Felicitating CA. Satyanarayan Mundada (RCM)

CA. Vimal Agrawal (Vice-Chairman) Felicitating CA. Parag Raval

(Vice-Chairman, WIRC)

CA. Umesh Mestry (Secretary) Felicitating CA. Neel Majithia (Secretary, WIRC)

CA. K. B. Kothari (Treasurer) Felicitating CA. Priti Savla (Treasurer, WIRC)

CA. Ramanand Gupta (Chairman) & Managing Committee Member (Vasai Br.) receiving Certificate of Appreciation from Dr. Sanjeev Naik at Sanjeevani Education & Career Fair

Managing Committee Members presenting Floral welcome to Mr. Gilbert Mendonca (MLA,Mira-Bhayandar) at CA. Career Counseling Stall

CA. Ramanand Gupta (Chairman) & Managing Committee Members addressing at Orientation Programme

CA. K.B.Kothari (Treasurer) Presenting Memento to CA. Pratik Singhi (Speaker)

CA. Pratik Singhi (Speaker) Participants at Seminar

Managing Committee Members presenting Floral welcome to Dr. Sanjeev Naik (Member of Parliament) at CA. Career Counseling Stall

Group photo taken at Stall in the presence of Mr. Dhruv Kishor Patil (Mira-Bhayandar, Corporator)

Photo Taken at Orientation Programme in the presence of WIRC Office Bearer.

CPE Study Circle

Bhayandar CA CPE Study Circle Vasai – Virar CA CPE Study Circle

1) CA. Deepak Bansal (Convenor ) - 9320981019 1) CA. Xavier Rajan (Convenor)-9371720027

2) CA. Sandeep Jain (Deputy Convenor)- 9930608040 2) CA. Jagadeesh Devadiga (Co-Convenor)-9422475945

3) CA. Anadi Bhase (Co-Convenor)-9890121996

02| 2013APRIL-MAY

2013APRIL-MAY

Editor: CA. Ramanand Gupta Published by Vasai Branch of Western India Regional Council of The Institute of Chartered Accountants of India and printed at Finesse Graphics and Prints Pvt. Ltd., 309, Parvati Ind. Est.,Sun Mill Compound, Lower Parel, Mumbai 400 013. Tel. : 40364600

The views and opinions expressed or implied are those of the authors or contribution and do not necessarily reflect those of Vasai Branch. Unsolicited articles and transparencies are sent in at the owner's risk and the publisher accepts no liability for loss or damage. Material in this publication may not be reproduced, whether in part or in whole, without the consent of Vasai Branch.

DISCLAIMER: The Vasai branch is not in any way responsible for the result of any action taken on the basis of the advertisement published in the Newsletter. The members, however, may bear in mind the provision of the Code of Ethics while responding to the advertisements.

Undelivered please return to :

The Institute of Chartered Accountants of India, Vasai Branch of WIRCAddress: Office No. C-, 310/311, Shanti Shopping Centre, Mira Road(E),Thane-401107Telephone: 65568900Email: vasaibranch@gmail.comWebsite: www.vasai-icai.orgDesigned and Printed by Finesse • +91-22 4036 4600

The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter12| 2013APRIL-MAY

www.vasai-icai.org APRIL & MAY 2013

MANAGING COMMITTEE

EDITORIAL BOARD

Chairman: CA. Ramanand Gupta9322231113

Vice- Chairman:9320617447

Secretary: CA. Umesh Mestry9320473468

Treasurer: CA. Kanhaiyalal B. Kothari9594196090

Committee CA. Kishor Vaishnav

Member: 9892194382

CA. Sumeet Doshi9869525956

CA. Preksha Jain9029877140

CA. Dayaram Paliwal9820331010

WIRC Nominee : CA. Sandeep Jain

9819788099

CA. Vimal Agrawal

The Institute of Chartered Accountants of IndiaVASAI BRANCH OF WIRC NEWSLETTER

CA. Ramanand Gupta

CA. Umesh Mestry

CA. Kishor Doshi

CA. Lalit Munoyat

CA. Dushyant Chaudhari

CA. Ashutosh Vidwans

CA. Hemant Shah

CA. Alpesh Shah

CA. Prasad Chitre

CA. Haresh Kenia

CA. Haresh Mehta

CA. Sanjay Paharia

-: Contact Details :-

Prop. Mrs. Javkhedkar S S.(M.Com)

9320094138/8551026855

Vimal Apartment, 1st Floor, Opp. Union Bank of India, Above Rana Electronics, Manickpur,

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E-mail: savitainvestments@yahoo.co.in

Authorized Agent for :

F All postal Schemes: N.S.C / K.V.P.M./ M.I.S./P.P.F/R.D.

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FInsurance (L.I.C., Birla Sunlife, Bajaj Allianz, Reliance)

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