students e newletter - june 2013

7/28/2019 Students E Newletter - JUNE 2013

1/20

Ghaziabad BranchGhaziabad Branchof CIRC of ICAIof CIRC of ICAI

For Private Circulation Only

f

f

f

f

f

f

TDS on property transaction

E-filling of audit report

Indirect Tax in 2013

Domestic transfer pricing

Announcements

Amendments

First Edition

une 2013

InsideInsideInside

UdyamUdyam StudentE-News LetterStudentE-News LetterStudentE-News LetterStudentE-News Letter


2/20

2

EDITORIAL BOARD

CA Rajeev V.D. GuptaChief Editor

CA Gyan Chandra MisraJoint Editor

CA Ankur TayalDeputy-Chief Editor

CA Naveen Kumar SharmaJoint Editor

MEMBERS

Astha KhannaAbhay Kansal

Nikita Mehra

Vaibhav Goel Ritika Goel Himanshu Tayal

Vaibhav Jindal Akshay Goel Kanika Gupta Rishabh Jain

CA Pallav SharmaCo-Editor

Aayushi GuptaEditor


3/20

3

From Chairman Desk......Dear Students

My best wishes to every one for wonderful carrierin the field of Accounts and Finance. We havetried to provide all the possible information to thestudents for their benefit and this STUDENTNEWS LETTER is another step that will not onlyhelp you hone your own skills in the field of writingbut will also help you to find valuable information

at your door steps. Every one of you is invited tomake it more valuable by providing their inputsand ideas. I will request every one of you toconsider this as their own and use this to shareviews and improve your creativity and imaginativepowers. I commend CA. Ankur Tayal,theSecretary of the Ghaziabad Branch of CIRC ofICAI for his effort and idea to publish this NewsLetter and now it shall be the responsibility ofevery one of you to take it further from here on to

greater heights.Best wishes once again.

With Best & Warm Regards

CA. RAJEEV VD GUPTA

Chairman - ICAI, Ghaziabad Branch


4/20

4

From Secretary Desk......My Dear Students,

The May 2013 Examinations are over. After devotingconsiderable time, energy and hard work, the students, whohave taken up the examinations, must be having a sense ofrelief and would be hopefully waiting for the results. The periodafter the examinations and before declaration of results mustbe used constructively. You should utilize your time wiselyand in a productive manner. This interval period is also theideal time for you to review and redefine your goals. You can

introspect on what you have achieved till date and how far youhave advanced towards achieving the targets.

It give me immense pleasure to share that, this is the firstedition of the E-Newsletter of our branch and we look forwardto make it a huge success and will also plan to have it inpublished format in near future. Students are invited tocontribute articles for this newsletter (1400 to 1600 words) onany technical or generalized topic and submit for approval, asoft copy of the article at [email protected] [email protected] along with students photoand personal details (viz. name, registration number, CA level,complete postal address, and contact number). We ensure topublish the selected articles in the forthcoming editions of thenewsletter.

The Institutes Board of studies has approved NATIONALCONVENTION for CA Students to be hosted by ourGhaziabad branch and expected to be held in august 2013. Isuggest the students to actively participate and learn fromsuch activities.

I appreciate the efforts of AAYUSHI GUPTA, CA Final Student

in bringing this newsletter in such a wonderful shape.Best Wishes,

CA Ankur Tayal

Secretary, ICAI, Ghaziabad Branch.


5/20

5

Dear Students

Planning, Organising and right information at the right time is the keyfor success in any field and this News Letter should be an effort toprovide a platform for the students where they can find resources toPlan and organise better and this provides them all the desired

information well in time. Dear students a huge effort shall be requiredto put in not only by the members of ICAI but an initiative and hardwork will also be required from the students. I hope this News Letterwill create more opportunities of learning and growth for all ourstudents and give them strength to face all difficulties of life.

CA Naveen Kumar SharmaTreasurer, ICAI, Ghaziabad Branch

From Vice Chairman Desk......Dear Students,

It gives me immense pleasure to write few words about the Student E News Letter for Ghaziabad Branch of CIRC of ICAI. Knowledge updation

is the key to the profession and integral part to uplift our professionalarena. The Student E News Letter as conceived and designed shall behelpful to update and enhance your knowledge and skills.

I appeal to all of you to become resource person by sharing yourviews and giving your articles, notes, write ups in the students newsletter. It will enhance your writing skills and personality development.

I personally feel the energy and performance level is so high in you,that you can fly to any sky you like an even more. I wish you toflourish and excel with the worlds best Accounting Body (ICAI) tomake your dreams come true, but never forget that hard work and

proper planning is key to success.I do hereby wish all the best to the entire team of the Student E-Newsletter of Ghaziabad Branch of CIRC of ICAI and hope that incoming time you will make it a grand success.

Jai Hind !

CA. Gyan Chandra Misra

Vice Chairman-ICAI, Ghaziabad Branch

From Treasurer Desk......


6/20

6

Dear Readers,

It is indeed a great honor to be the Newsletter Editor for our Branchand it is an immense pleasure to launch this first edition for June, 2013.

In this issue, we have started with informative articles on varioustopics. A total of 4 articles have been included in this issue and I hopethat each one of these provide some significant stimulation to ourcommunity of readers. Also, we have incorporated the recentamendments related to coming November exams of both Final andIPC level. A list of important announcements is also included for

facilitation of students.

From next edition, I also plan to have reviews on the various articlespublished herein from the esteemed members and dearest studentsfor the improvement of both the article and the writer.

I would also take the opportunity to discuss about the title of ournewsletter. The word "Udyam" comes from Sanskrit Languagemeaning Determination. As a chariot (cart) can't move with one wheel,similarly, without our determination to succeed destiny doesn't bringfruit. To put it differently, even if by sheer luck, a treasure is seen lyingin front, destiny doesn't give it in our hands, our determination (of

picking it up) is (still) required. Work gets accomplished by effort, notmerely by wishing. Keeping this thought in mind comes the title"Udyam".

Please feel free to offer any piece of suggestion to help keep then e w s l e t t e r m o r e i n f o r m a t i v e a n d e n t e r t a i n i n g ( a [email protected]).

As the editor my responsibilities will continue to be the advancementof the success of the newsletter. The newsletter will continue to be avehicle for promoting fluent communication among all students in allsubject areas.

A huge thank you to all the persons who contributed writing the

wonderful and inspiring articles, without which there wouldnt havebeen this newsletter issue.

Last but not least, I would like to thank CA Ankur Tayal and other boardmembers for believing in me and giving this opportunity for thecreation of this edition.

Happy Reading!!!

Aayushi Gupta

CA Final Student

From Editor Desk......


7/20

7

By Vaibhav Jain (CA Final Student)Email:[email protected]

Domestic Transfer Pricing

Associated Enterprises:

International Transaction:

An illustration

Specified Domestic Transactions:

Section 92A provides meaning of the expression associatedenterprises. The enterprises will be taken to be associatedenterprises if one enterprise is controlled by the other, or bothenterprises are controlled by a common third person. The concept ofcontrol adopted in the legislation extends not only to control throughholding shares or voting power or the power to appoint the

management of an enterprise, but also through debt, bloodrelationships, and control over various components of the businessactivity performed by the taxpayer such as control over rawmaterials, sales and intangibles.

Section 92B provides a broad definition of an international

transaction, which is to be read with the definition of transactionsgiven in section 92F. An international transaction is essentially across border transaction between associated enterprises in any sortof property, whether tangible or intangible, or in the provision ofservices, lending of money etc. At least one of the parties to

the transaction must be a non-resident. The definition also covers atransaction between two non-residents where for example, one ofthem has a permanent establishment whose income is taxable inIndia.

Sub-section (2), of section 92B extends the scope of the definition ofinternational transaction by providing that a transaction entered intowith an unrelated person shall be deemed to be a transaction with anassociated enterprise, if there exists a prior agreement in relation tothe transaction between such other person and the associatedenterprise, or the terms of the relevant transaction are determined bythe associated enterprise.

of such a transaction could be where the assessee,being an enterprise resident in India, exports goods to an unrelatedperson abroad, and there is a separate arrangement or agreementbetween the unrelated person and an associated enterprise whichinfluences the price at which the goods are exported. In such a casethe transaction with the unrelated enterprise will also be subject totransfer pricing regulations.

provides that every person who has entered into aninternational transaction during a previous year shall obtain a repor tfrom an accountant and furnish such report on or before thespecified date in the prescribed form and manner. Rule 10E and formNo. 3CEB have been notified in this regard. The accountants reportonly requires furnishing of factual Information relating to theinternational transaction entered into, the arm' s length pricedetermined by the assessee and the method applied in suchdetermination. It also requires an opinion as to whether theprescribed documentation has been maintained.

1The Finance Act 2012 extended the scope of Transfer Pricing

Section 92E

Transfer Pricing Law In India

Section 92:

Arm's length price:

Specified methods are as follows:

Increasing participation of multi-national groups in economicactivities in the country has givenrise to new and complex issuesemerging from transactions enteredinto between two or moreenterprises belonging to the samemultinational group. With a view toprovide a detailed statutory

framework which can lead to computation of reasonable, fair andequitable profits and tax in India, in the case of such multinationalenterprises, the Finance Act, 2001 substituted section 92 with a new

section and introduced new sections 92A to 92F in the Income-taxAct, relating to computation of income from an internationaltransaction having regard to the arm's length price, meaning ofassociated enterprise, meaning of information and documents bypersons entering into international transactions and definitions ofcertain expressions occurring in the said section.

As substituted by the Finance Act, 2002 provides thatany income arising from an international transaction or where theinternational transaction comprise of only an outgoing, theallowance for such expenses or interest arising from theinternational transaction shall be determined having regard to thearm's length price. The provisions, however, would not be applicable

in a case where the application of arm's length price results indecrease in the overall tax incidence in India in respect of the partiesinvolved in the international transaction.

In accordance with internationally accepted principles, it has beenprovided that any income arising from an international transaction oran outgoing like expenses or interest from the internationaltransaction between associated enterprises shall be computedhaving regard to the arm's length price, which is the price that wouldbe charged in the transaction if it had been entered into by unrelatedparties in similar conditions. The arm's length price shall be

determined by one of the methods specified in Section 92C in the

manner prescribed in Rules 10A to 10C that have been notified videS.O. 808 E dated 21.8.2001.

a. Comparable uncontrolled price method;b Resale price method;c. Cost plus method;d. Profit split method ore. Transactional net margin method

The taxpayer can select the most appropriate method to be applied toany given transaction, but such selection has to be made taking intoaccount the factors prescribed in the Rules.


8/20

8

! 80IE - Special provisions in respect of certain undertakings inNorth-Eastern States

(vi) Any other transaction as may be prescribed and where theaggregate of such transactions entered into by the assessee in theprevious year exceeds a sum of Five crore rupees

The primary onus is on the taxpayer to determine an arm's lengthprice in accordance with

the rules, and to substantiate the same with the prescribeddocumentation: where such onus is discharged by the assessee andthe data used for determining the arm's length price is reliable andcorrect there can be no intervention by the Assessing Officer (AO).This is made clear in sub-section (3) of section 92C which providesthat the AO may intervene only if he is, on the

basis of material or information or document in his possession of theopinion that the price charged in the international transaction has notbeen determined in accordance with the methods prescribed, orinformation and documents relating to the international transaction

have not been kept and maintained by the assessee in accordancewith the provisions of section 92D and the rules made there under, orthe information or data used in computation of the arm's length

price is not reliable or correct ; or the assessee has failed to furnish,within the specified time; any information or document which he wasrequired to furnish by a notice issued under sub-section (3) ofsection 92D. If any one of such circumstances exists, the AO mayreject the price adopted by the assessee and determine the arm'slength price in accordance with the same rules.

However, an opportunity has to be given to the assessee beforedetermining such price.

Thereafter, the AO may compute the total income on the basis of thearm's length price so determined by him under sub-section (4) ofsection 92C.

provides that where an assessee has entered into aninternational transaction in any previous year, the AO may, with theprior approval of the Commissioner, refer the computation of arm'slength price in relation to the said international transaction to aTransfer Pricing Officer. The Transfer Pricing Officer, after giving theassessee an opportunity of being heard and after making enquiries,shall determine the arm's length price in relation to the internationaltransaction in accordance with sub-section (3) of section 92C.

The AO shall then compute the total income of the assessee under

sub-section (4) of section 92C having regard to the arm's lengthprice determined by the Transfer Pricing Officer.

The Transfer Pricing Officer means a Joint Commissioner/DeputyCommissioner/Assistant Commissioner authorized by the Board toperform functions of an AO specified in section 92C & 92D.

Penalties have been provided as a disincentive for non-compliancewith procedural requirements.

Explanation 7 to sub-section (1) of section 271 provides that wherein the case of an assessee who has entered into an internationaltransaction any amount is added or disallowed in computing the total

Burden of Proof:

Section 92CA

Penalties:

provision to Specified Domestic Transactions (SDT)

1The SDT would include the following:

1Expenditure for which payment is made or to be made todomestic related parties-40A 2(b) payment

1Tax Holiday/ Deductions claimed by the taxpayer, where;

1Transfer of goods or services between various businesses of

same taxpayer1More than ordinary profits derived from transactions with closely

connected personsfer pricing provisions to apply to theSpecified Domestic Transactions if

192BA. For the purposes of this section and sections 92, 92C, 92Dand 92E, "specified domestic transaction" in case of an assesseemeans any of the following transactions, no being aninternational transaction, namely:

(i) Any expenditure in respect of which payment has been made oris to be made to a person referred to in section 40A(2)(b)

1Section 40A (1) Applicability restricted to the computation ofincome under the head Profits and gains of business orprofession

1Section 40A (2)

! Applicable on expenditure in respect of which payment hasbeen made or it to be made

! Expenditure in respect of goods, services or facilities

1Q & A

! Interest free loan given to related party

! Corporate guarantee without any charge

! Goods sold at lower value

! Capital expenditure(ii) Any transaction referred to in section 80A

(iii) Any transfer of goods or services referred to in sub-section (8) ofsection 80-IA

(iv) Any business transacted between the assessee and otherperson as referred to in sub-section (10) of section 80-IA

(v) Any transaction, referred to in any other section under Chapter VI-A or section 10AA, to which provisions of sub-section (8) or sub-section (10) of section 80-IA are applicable;

! 10AA - Special provisions in respect of newly established Unitsin Special Economic Zones.

! 80IAB - Deductions in respect of profits and gains by anundertaking or enterprise engaged in development of SpecialEconomic Zone.

! 80IB - Deduction in respect of profits and gains from certainindustrial undertakings other than infrastructure developmentundertakings.

! 80IC - Special provisions in respect of certain undertakings orenterprises in certain special category States

! 80ID - Deduction in respect of profits and gains from businessof hotels and convention centers in specified area.


9/20

9

income under sub-sections (1) and(2) of section 92, then, theamount so added or disallowed shall be deemed to represent incomein respect of which particulars have been concealed or inaccurateparticulars have been furnished.

However, no penalty under this provision can be levied where theassessee proves to the satisfaction of the Assessing Officer (AO) orthe Commissioner of Income Tax (Appeals) that the price charged or

paid in such transaction has been determined in accordancewithsection 92 in good faith and with due diligence.

provides that if any person who has entered into aninternational transaction fails to keep and maintain any suchinformation and documents as specified under section 92D, the AOor Commissioner of Income Tax (Appeals) may levy a penalty of asum equal to 2% of the value of international transaction entered intoby such person.

provides that if any person fails to furnish a reportfrom an accountant as required by section 92E, the AO may levy apenalty of a sum of one lakh rupees

Section 271AA

Section 271BA

Section 271G

Conclusion:-

provides that if any person who has entered into aninternational transaction fails to furnish any information ordocuments as required under section 92D (3), the AO or CIT(A) maylevy a penalty equal to 2% of the value of the internationaltransaction.

Above mentioned penalties shall not be imposable if the assesseeproves that there was reasonable cause for such failures.

These amended Transfer Pricing regulations will not be limited to justthe large groups any more. Many mid-sized groups, partnershipfirms, Hindu undivided Families (HUFs) and even individuals insimilar cities will now have to adhere to the TP rules. This will lead toan increase in the administrative and compliance burden for theTaxpayer in respect of such transactions and a focused examinationby the Tax authorities.

Finance Act, 2012 has cast wider and deeper net to cover bothdomestic and international transaction between related parties.

TDS ON PROPERTY TRANSACTIONS

The provision of tax deduction atsource under Section 194-IA isapplicable on transfer of immovableproperty of Rs. 50 Lacs or more witheffect from 1st June, 2013. It isapplicable for transfer of land (otherthan agriculture land in rural area)and all type of buildings whetherresidential, industrial or commercial.

Tax has to be deducted @ 1% on the purchase price by thepurchaser of the property at the time of credit of purchase price in thebooks of amount or at the time of payment, whichever is earlier.

However, in the case of individual, normally amount is not credited inthe books, therefore tax is deductible at the time of payment. If theseller does not provide his PAN, tax is to be deducted @ 20%.Before, making payment, the purchaser of the property should askfor the photocopy of PAN card of the seller and he should verify it withthe original PAN Card of the seller.

These provisions are not applicable where the seller is non - resident.However, the provisions are applicable even in cases where theseller is a builder. Further, the property may be situated in India oroutside India. Further, the actual sales consideration is consideredand the value as per stamp duty is not relevant. The value is in

respect of a property and not in respect of a seller. Suppose, a personpurchases two properties both having sales consideration less thanRs. 50 Lacs each at different times from a seller, but the total salesconsideration exceeds Rs. 50 Lakhs, the provision shall not apply. Inthe case, where agreement to sell has been executed before 1stJune, 2013, but payment or part payment is made after 1st June,2013, TDS is to be deducted on the payments to be made after 1stJune, 2013.

The purchaser is not required to obtain TAN and file TDS Return.

Sub Rule(2A) has been inserted to Rule 30 to provide that the TDSdeducted u/s 194-IA has to be paid within a period of seven daysfrom the end of month in which deduction is made. Similarly, Rule(6A) has been inserted to Rule 30 to provide that the TDS has to bepaid electronically and a challan cum statement in Form No. 26QBshall be filed electronically. After Sub rule (3), new sub rule (3A) hasbeen inserted to provide that every person responsible for deductionof tax u/s 194-IA shall furnish the TDS certificate in Form No. 16B tothe payee within 15 days from the due date for furnishing challancum statement in Form No. 26QB.

By Manan Kalra(CA Final Student)Email:- [email protected]


10/20

10

By Kshitiz Maheshwari (CA Final Student)Email:- [email protected]

Indirect tax in 2013: With change comes complexity

The sheer number and variety ofchanges in indirect taxes in recentyears and the challenge ofimplementing them into accountingand reporting systems can beoverwhelming -- making it hard tokeep sight of the bigger, strategicpicture. But what do all thesechanges add up to? Do common

themes emerge? What changes can we expect in the future?

The economic crisis has caused many governments to find

sustainable ways to rebalance their budgets and stimulate growth.This would imply governments will continue the shift from direct toindirect taxes, which are less harmful for growth, look to improve theefficiency of indirect taxes and take action to combat tax fraud andavoidance. We believe that the importance of indirect taxes willcontinue to grow. We have identified five key trends in indirecttaxation that we believe will be significant for internationalbusinesses in 2013 and beyond.

Limited to less than 10 countries in the late 1960s, value-added tax(VAT) -- or, in several countries, goods and services tax (GST) -- istoday an essential source of revenue in more than 150. The

spreading of these taxes has also driven constantly rising rates inmany countries. In the European Union (EU), between 2008 and2012, the average standard VAT rate increased from around 19.5percent to more than 21 percent. The upward rate trend in Europecontinues as Cyprus, the Czech Republic, France, Finland, Italy,Poland and Slovenia have already increased rates recently or haveannounced increases later in 2013 and 2014.

In Asia Pacific, the upward VAT and GST rate trend is less explicit, butstill noticeable. Japan, for example, which is struggling with massivebudget deficits, decided in August 2012 to increase the current VATrate from 5 percent to 8 percent effective April 1, 2014 and to 10percent effective October 1, 2015. Thailand was also considering

the possibility of raising its VAT rate from the current temporary 7percent to the normal 10 percent rate but it is still not known if thiswill happen.

By contrast, VAT and GST rates in the Americas remain relativelystable. In South America, where VAT systems are widespread andhave been in use for some time, rates have not changed much inrecent years. One exception is in the Dominican Republic, where therate is set to increase from 16 percent to 18 percent this year andnext year.

The significance of this trend for final consumers is clear: retail

I. The tax mix is shifting toward taxes on consumption

A. Increasing VAT and GST rates

B. The impact on business

prices rise. But its impact on businesses is equally impor tant: higherVAT and GST rates increase compliance risks and may result in ahigher tax burden where cascading VAT may not be fully recoverable.Companies must ensure that all the increases are properly dealt within their accounting and reporting systems, which often results in arange of IT and administrative costs. Errors frequently arise whenrates change, resulting, for example, from incorrect product or taxcodings or confusion about the correct rate for supplies that span thechange. More generally, rate increases mean the amount of VAT orGST under management also increases, as do penalties for errorsthat are based on the amount of tax payable.

Europe also seems to be the leading region for increasing excisetaxes as the three important groups of classic excise taxes(alcohol, tobacco and mineral oils) have seen significant increases.This year, excise taxes on tobacco and alcohol have increased, orwill soon increase, in most EU countries, including Guernsey,Moldova, Norway and Switzerland. But the trend can also be seen inother parts of the world; in Africa, higher excise taxes are beingimposed on these items, e.g. in Benin, Gambia and Zimbabwe. In theAmericas, Aruba, Canada, Costa Rica and Mexico have also raisedtaxes on alcohol or tobacco, as have Fiji, New Zealand and thePhilippines in Asia Pacific.

While the main purpose for excise tax rate increases is to raiserevenue, these taxes are also increasingly being used to discourageconsumption of certain products considered to be harmful, thusinfluencing consumer behavior in a number of areas. A relatively newtrend is the introduction of excise taxes on health-related products(other than alcoholic beverages and tobacco products), such assnack taxes on unhealthy food. For example, Benin, Costa Rica,Norway and the Philippines have all increased excise duties on softdrinks, Finland has introduced an excise tax on sweets and icecream, and in France a specific contribution has been introduced onsuppliers of beverages (sodas) with added sugar or sweeteners.

Over the last decade, environmental issues have also played an

increasing role in determining the nature and application of taxes,e.g. on road fuel, motor vehicles and CO2 emissions. This type ofmeasure includes tackling issues such as waste disposal, waterpollution and air emissions. With support from the Organisation forEconomic Co-operation and Development (OECD), whose analysisseems to confirm the advantages of environmental taxes,1 manycountries are introducing or increasing such taxes. Currentexamples are Germany, Ireland and South Africa.

Finally, there is a noticeable trend toward increasing the tax burdenon financial transactions. Although there seems to be a common and

II. Rising excise taxes

A. Influencing consumers

B. Taxing financial transactions


11/20

11

widespread belief among countries that the financial sector shouldcontribute its fair share in remedying the damage arising from thefinancial crisis, there is no common approach as to how this shouldbe achieved. Some countries have increased supervision of theindustry and tightened regulations. However in Europe, in particular,the preferred approach has been to levy taxes on financialtransactions. France introduced a financial transactions tax in

August 2012, and on January 1, 2013, Hungary introduced a tax of0.1 percent on the amount involved in any payment service. Italyfollowed in March 2013, with a tax on the transfer of shares andderivatives and high-frequency trading. In addition, 11 EU MemberStates have agreed to introduce a common transaction tax on theexchange of shares and bonds and on derivative contracts, whichcould be introduced as early as 2014.

Customs duties were once a primary source of revenue for mostcountries. Global, multilateral and bilateral efforts to globalise trade,through organisations such as the World Trade Organization (WTO)

and others, have led to decreasing duty rates and a downward trendin customs duties around the world.

The WTO currently has 158 members (the most recent, Laos, joinedat the start of February 2013) and it reports 546 active and pendingreciprocal regional trade agreements among its members. A numberof new free trade agreements (FTAs) are expected to enter into forcein 2013, thus further reducing the amount of customs dutiesimposed on global trade. Examples include the agreement involvingthe EU and Peru and Colombia, Montenegro and the European FreeTrade Association, Hong Kong and the European Free TradeAssociation, and Indonesia and Pakistan. Nearing completion are,among others, the trade agreements between Costa Rica and Peru

and between Canada and India, and negotiations are in variousstages of completion for a range of others.

However, the situation is not always that straightforward. Althoughcustoms duty rates are generally reducing for international trade,these taxes still play a very significant role in meeting countries'budgetary needs. In many cases, duty rates on many goods andmaterials remain high. Additionally, the compliance obligation toaccess the lower customs duty rates, such as meeting strict countryof origin requirements, means companies must maintain controls toenjoy the preferential rates or risk large assessments for violations.

Unlike VAT and GST, duties charged at one stage in the supply chainare not offset against taxes due at later stages, so duties form part of

the cost base of affected goods. In addition, customs clearanceprocedures can add to the time and related costs of moving goodscross-border. And even where FTAs exist, many businesses are notactually obtaining the potential benefits offered because they cannot,or do not, meet the qualifying conditions.

More generally, global trade may be hampered by the currenteconomic climate, which is encouraging protectionist tendencies,as evidenced by the current difficulties encountered in the DohaRound. Non-tariff barriers have grown substantially in recent years,many in the form of health, safety or environmental requirements.

III. Free trade increases, but is meeting protectionistchallenges

Protectionism

The WTO reported 184 new trade-restrictive measures enactedbetween October 2010 and April 2011 and 182 between October2011 and May 2012.

In addition, where countries are not bound by FTAs, import duties arestill a common and often-used means to steer trade and production.For example, to boost the development of sugar cane productiontoward meeting the raw sugar needs of domestic sugar refining

companies, effective January 1, 2013, Nigeria now applies a 0percent import duty on machinery for local sugar manufacturingindustries, but it has increased the total tariff on imported refinedsugar to 80 percent from 35 percent, and raw sugar tariffs increasedfrom 5 percent to 60 percent.

Many countries are currently in the process of refining their indirecttax systems. In developed markets, long-standing VAT systemsneed to adapt to the demands of a 21st century digital economy. Inemerging markets, which are experiencing economic developments

at a fast pace, indirect tax systems need to adapt to keep pace. InIndia, for example, a new nationwide GST is ready to be implementedand only awaits agreement between the central and stategovernments. Similarly, China is in the process of combining itscurrent business tax (BT) on services with a broader-based VATthrough a series of VAT pilots. In the end, the VAT pilots and reformsare intended to join China's BT and VAT into a single GST, with theauthorities targeting an aggressive timeline of 2015.

In the EU, the European Commission has launched a comprehensivereform of the existing VAT system. The Commission has identified nofewer than 26 priority areas for further action. Significant changescan be expected in the near future, such as the adoption of a one-stop-shop registration for all taxpayers' duties or a standardised EUVAT return.

The US is still far from implementing a federal VAT. But, even in theUS, a trend can be seen toward states extending the scope of theircurrent sales taxes. While sales taxes, by definition, only apply topurchases of physical goods, it is the market in electronicallysupplied services (such as digital music distribution, internetdownloads or telecom services), which is growing fastest. Anincreasing number of states are, therefore, trying to expand theircurrent sales tax to cover electronic goods and services or are tryingto create a nexus for out-of-state vendors to constrain sellers tocollect sales taxes on remote sales.

Finally, governments have discovered that, on the administrativeside, the efficiency of indirect tax systems can be drasticallyimproved -- which increases tax revenues. There are manyapproaches taken by governments, but an important one is to createcommon interfaces and reduce gaps in the system. This is onereason why many governments are enforcing the use of electronicdata transmission and filing. The reason for this trend is clear: e-filingconsiderably eases processing the information for taxadministrations and makes administration faster and more efficient.In addition, having electronic data enables tax administrations to useIT-based audit tools more easily, which can help to combat fraud and

IV. Making indirect tax systems more efficient

A. Changing law and practice

B. Improving tax administration


12/20

12

evasion.

Most taxpayers can also benefit from increased efficiencies arisingfrom e-filing, but dealing with multiple tax administrations' differentrequirements and tax administrations' increased audit capacitiesmeans that greater focus must be given to the accuracy andefficiency of indirect tax compliance processes to avoid anincreased risk of incurring penalties.

The growing importance of indirect taxes to governments placesmore pressure on tax administrations to enforce compliance. Thisfocus is leading to greater scrutiny of taxpayers' affairs through morefrequent and more effective tax audits and greater consequences forerrors.

In December 2012, we conducted a survey of Ernst & Young IndirectTax professionals in 39 countries.2 The responses given in thesurvey indicate that the number of tax audits has increased in recentyears and is likely to increase further in the future. Only six countries

reported that audits had decreased; even then, in some cases, whilethe number of audits carried out was said to be lower, the amount ofadditional tax levied due to tax audits is still increasing. This can beexplained by tax administrations carrying out more targeted audits;24 out of the 39 countries already use specialised IT tools, such asaudit software, to detect irregularities or suspicious patterns intaxpayers' tax returns.

The level of exchange of information between countries varieswidely. It is widespread in Europe, where the common EU VATsystem requires an extensive information exchange. On a globalscale, the multilateral Convention on Mutual AdministrativeAssistance in Tax Matters, which is open to all interested countries,

facilitates exchange of information on all compulsory payments tothe general government except for customs duties.3 In the last twoyears, more than 50 countries have either become signatories to theconvention or have stated their intention to do so. But, even ifcountries do not (yet) share information, they increasingly exchangeinformation internally, between different authorities and departments(e.g. with customs or social security authorities). Only 4 out of the 39countries we surveyed do not share any information at all.

There is nothing to be said against stricter compliance enforcementif it actually helps to fight fraud and abuse. The other side of the coin,however, is that tax administrations have generally become more

wary toward all taxpayers; they are less open to entering intodiscussion, and it is more difficult to reach mutual agreement onspecific issues.

Tax administrations increasingly apply a strictly formal approachwithout considering specific economic and business issues. Thishas massive consequences, in particular for VAT and GST, wherebeing compliant increasingly requires deep expertise, even more so

V. Increased focus on enforcement

A. Audits and exchange of information

B. Targeting fraud but hitting honest taxpayers too?

as our survey shows that formal mistakes (e.g. missing informationon invoices) are still by far the most frequent reason for VAT and GSTadjustments, be it an additional tax charge or the denial of input taxrecovery. In addition, we observe a tendency for tax administrationsto pay out input tax surpluses with increasing delay -- if at all -- or toreject an input tax claim based on bad faith, stating that claimantsshould know that their suppliers did not handle the tax correctly.

At the same time, many countries are applying stricter penaltyregimes in the case of non-compliance and mistakes. In our survey,27 of the 39 countries reported that penalties are increasing, andonly 3 saw a decrease. Fines are generally imposed faster andsooner and the fines are higher than in the past. Increasingly, finesare enforced for timing issues, such as late payment, where in thepast tax administrations were more lenient on these issues (forexample, Austria, Germany, Pakistan and New Zealand).

The trends identified in this article are not entirely new but they havebecome more pronounced in recent times. And it is precisely theircontinuing existence that indicates that they are important and long-

term developments. All of these trends have a direct impact onbusinesses, which need to keep abreast of these changes.

Indirect taxes are not easy to manage. For example, excise duties,such as carbon taxes, change quickly and represent a highcompliance risk because they typically operate differently in eachcountry. Taxpayers who collect VAT or GST from final consumers onbehalf of the state run increased risks of carrying the tax burden, andeventual penalties, themselves if they do not manage the taxcorrectly.

With tax administrations assessing taxes more thoroughly and usingpowerful and efficient tools, the chance that mistakes will be foundhas risen considerably and will remain high. Also, as indirect taxrates increase, the consequences of mistakes become more severe.This is particularly true for businesses that do not recover VAT orGST in full (e.g. because of VAT-exempt activity), such as banks andinsurance companies. But higher rates also have an increased costor cash flow impact on companies that incur VAT or GST in foreignjurisdictions, which is not refunded quickly, or which they do not orcannot recover (e.g. because of an absence of refund schemes fornon-residents or because of complicated refund procedures).

As indirect tax administrations are turning increased attention toenforcement -- including joint audits with other taxes and even othercountries -- these activities may disrupt business activity. Largeassessments for underpaid tax or penalties for late filings do not onlyhave an impact on profitability, they may draw unwanted adversepublicity, even for compliant businesses.

More than ever, it pays to manage indirect taxes proactively.Establishing a clear indirect tax strategy aligned to the overallbusiness strategy will help in staying up to date with the rapidlychanging tax environment and avoid the additional costs and risks ofpoor compliance or missed opportunities.

VI. What can taxpayers do?


13/20

13

Vaibhav Goel (CA Final Student)Email: [email protected]

E-Filing of Audit Report- A mandatory compliance

Rule 12(2) of the Income Tax Rules

provided that neither any statementor audit report had to be attachedwith the return form nor they had tobe furnished separately before orafter the due date. As a matter ofpractice, tax audit report, reportunder section 115JB(i.e. Form 29B-certification of calculation ofminimum alternate tax) and variousother aud i ts requ i red and

conducted in accordance with Income Tax Act(e.g. for 80IA,80IB,80IC etc units) are required to be filed with the Income TaxDepartment only at the time of scrutiny assessment proceedings or

otherwise. However, audit report under section 92E (i.e. Form 3CEB-certificate for transactions with associated enterprises at ArmsLength) are being furnished with the income tax depar tment beforethe due date of filing of return(i.e. 30th November).

However, the position with regard to such filing had changed sincethe new introduction.

The new provisions require that audit conducted under section 44ABread with Rule 6G, 92E read with Rule 10E and 115JB read with Rule40B need to be submitted with the income tax departmentelectronically.

The return of income required to be furnished in Form SAHAJ (ITR-1) or Form No. ITR-2 or Form No. ITR-3 or Form SUGAM (ITR-4S) orForm No. ITR-4 or Form No. ITR-5 or Form No. ITR-6 or Form No.ITR-7 shall not be accompanied by a statement showing thecomputation of the tax payable on the basis of the return, or proof ofthe tax, if any, claimed to have been deducted or collected at sourceor the advance tax or tax on self-assessment, if any, claimed to havebeen paid or any document or copy of any account or form or reportof audit required to be attached with the return of income under anyof the provisions of the Act.

Provided that where an assessee is required to furnish a report ofaudit specified

under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section10, section 10A, clause (b) of sub-section (1) of section 12A,section 44AB, section 80-IA, section 80-IB, section 80-IC, section80-ID, section 80JJAA, section 80LA, section 92E or section 115JBof the Act, he shall furnish the same electronically.

An assessee required to furnish a report of audit specified undersub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10,section 10A, clause (b) of sub-section (1) of section 12A, section44AB, section 80-IA, section 80-IB, section 80-IC, section 80-ID,section 80JJAA, section 80LA, section 92E or section 115JB of theAct, shall furnish the said report of audit and the Return of Incomeelectronically for AY 2013-14 and onwards

Rule 12(2) is reproduced here below:-

Rationale behind such Amendment

Procedure of filing audit report electronically

As a Tax Professional- Chartered Accountant (Registrationonly)

This amendment is brought to control various practices. Some ofthem are-

i) Various audits and reports thereto particularly tax audit werebeing conducted after 30th September but while filing ofIncome Tax Return any earlier date, 30th September or before,were being provided to avoid any penalty u/s 271B.

ii) Assessees were not getting their accounts audited. It was foundthat the name of the chartered accountant furnished in the returnbelonged to someone who had expired. Since only one per centof the cases come up for scrutiny, some taxpayers were takingthe risk of not actually getting their accounts audited. In the eventof their case coming up for scrutiny, the taxpayer would

approach a chartered accountant and get the books audited.(Reports, THE BUSINESS STANDARD)

Chartered accountant should register as a Tax Professional inhttps://incometaxindiaefiling.gov.in/ e-Filing /Registration /RegistrationHome.html

Alternatively, visit https://incometaxindiaefiling.gov.in and selectRegister Yourself under the block New to e-filing?

1. Select Tax Professional-Chartered Accountant and clickcontinue.

2. Submit the following information in the Registration Form at Step1- Basic Details:

a. Membership Number

b. Enrolment Date

c. Name

d. Date of Birth

e. PAN

f. E-Mail ID


14/20

14

3. DSC (Digital Signature) is required at the time of registration atthis Step.

4. Submit the following details at Step 2-Registration Form:

a. Password Details (The password shall have at least 8characters and must have at least one alphabet, onenumber and one special character. Select and answer oneprimary question and one secondary question.)

b. Contact Details

5. At Step 3-Registration Successful,

a. Transaction ID is generated

b. An activation link and User ID will be sent at the registeredE-Mail Id

On clicking activation link, CAs account will get activated.

1. CA must have a digital signature certificate.

2. CA must have paid the enrolment fee otherwise, he will not beeligible to conduct tax audit or any other audit.

1. The assessee need to Login at the income tax e-filing site.

2. Click My Account and then select ADD CA option.

3. Fill Membership Number of CA. Name of the CharteredAccountant will be mentioned on its own if the CA has registeredhimself as a Tax Professional at the I-T site.

4. Select the Audit Report for which he is engaged viz, Form 3CA-

3CD or Form 3CB-3CD, Form 29B, u/s 92E(Form 3CEB) etc.More than one CA can be engaged for different reports.

5. Enter the verification code or Captcha Code and click submit.

6. E-mail will be sent to the selected CA about adding his name asCA of a particular assessee.

7. E-mail will be sent to assessee also regarding theaddition/change in Chartered Accountant.

8. Assessee may disengage CA also.

1. Visit https://incometaxindiaefiling.gov.in

Points to recapitulate-

As a Tax Payer (Engagement of Chartered Accountant)

As a Tax Professional- Chartered Accountant(Uploading of AuditReport)

2. Select Forms(other than ITR) under block Downloads.

3. Download Utility of the Form(say, Form 3CA-CD, etc) requiredto be filed and uploaded. Extract the excel utility. Launch it andfill the form. Validate and generate XML.

$Java Runtime Environment Version 7 Update 6 or above(32 bit)(jre 1.7/7)$A copy of last year's tax return$Bank Statement$TDS certificates$Savings certificates/Deductions$Interest statement showing interest paid to you throughout the

year.$Balance Sheet, P&L Account Statement and other Audit Reports

wherever applicable.

4. Login with the CA-ID provided and password selected.

5. Upload the XML file with digital signature of CA.

6. Upload Balance Sheet and Profit and Loss Account of theassessee in PDF format. If assessee is liable to audit underother statute, Balance sheet and Profit and Loss Account mustbe audited under that statute.

1. Assessee must Login to his account on Income Tax site.

2. Select Work List.

3. Audit report(s) uploaded by CAs will appear with the name ofCA.

4. Assessee need to approve the audit report by clicking

Approve with his own digital signature.

5. Audit Report(s) Successfully Filed.

Following is a checklist for downloading and uploading Auditreports:

As a Tax Payer (Filing of Income Tax Return)


15/20

15

Applicability of Amendments / Circulars etc. for November, 2013 Final Examination

Paper 1: Financial Reporting

Notes:

Paper 4: Corporate and Allied Laws

Applicability of the following Circulars/Notifications for

1. Presentation of Foreign Currency Monetary Item TranslationDifference Account (FCMITDA)

In the Revised Schedule VI format, no line item has been specified

for the presentation of Foreign Currency Monetary ItemTranslation Difference Account (FCMITDA). Therefore, theCouncil of the Institute at its 324th meeting held on March 24-26,2013 at New Delhi, decided that debit or credit balance inFCMITDA should be shown on the Equity and Liabilities side ofthe balance sheet under the head Reserves and Surplus as aseparate line item.

2. Criteria for Classification of Entities and Applicability ofAccounting Standards

Due to recent changes in the enhancement of tax audit limit, theCouncil of the ICAI has recently decided to change the 1st criteriai.e. determination of SME on turnover basis for Level II entities

from Rs. 40 lakhs to Rs. 1 Crore with effect from the accountingyear commencing on or after April 01, 2012.

1. Students are expected to have thorough knowledge of theAccounting Standards (AS 1 to AS 29) and Guidance Notes onvarious aspects issued by the ICAI.

2. As far as AS 30, 31 and 32 are concerned, in view of thecomplexities involved, the questions involving conceptual issues(not involving application issues) may be asked. Since a separatetopic of Financial Instruments is included in the curriculum,simple practical problems based on AS 30, 31 and 32 may beasked.

(Text of all applicable Accounting Standards and Guidance Notesare available in the Appendices, Volume II of Financial ReportingStudy Material.)

Non-Applicability of Ind ASs for November 2013 Examination

3. The Core Group was constituted by the Ministry of CorporateAffairs (MCA) for convergence of Indian Accounting Standardswith International Financial Reporting Standards (IFRS). ThisCore Group decided that there will be two separate sets ofAccounting Standards viz.

(i) Indian Accounting Standards converged with the IFRS (Known asInd AS)

The MCA has hosted on its website 35 converged Indian Accounting

Standards (Ind AS) without announcing the applicability date. Theseare the standards which are being converged by eliminating thedifferences of the existing Indian Accounting Standards vis--vis IFRS.

(ii) Existing Accounting Standards

The companies not falling within the threshold limits prescribed forInd AS converged with IFRS compliance in the respective phasesshall continue to use these standards in the preparation andpresentation of financial statements.

Students may note that Ind ASs are not applicable for the studentsappearing in November, 2013 Examination.

November, 2013 examination

Paper 7 : Direct Tax Laws & Paper 8 : Indirect Tax LawsApplicability of Finance Act, Assessment Year etc. for November,2013 Examination

1. Appointment of Cost Auditor by companies

The Ministry of Corporate Affairs vide General Circular No.36/2012 dated 6th November, 2012 has provided some changes

in the procedure for the appointment of cost auditor under section233B of the Companies Act, 1956 to be followed by thecompanies and the cost auditor.

2. Filing of Cost Audit Report and Compliance Report in XBRL mode

The Ministry of Corporate Affairs vide General Circular No.43/2012 dated 26th December, 2012 has decided that all costauditors and the companies concerned are allowed to file theirCost Audit Reports and Compliance Reports for the year 2011-12 with the Central Government in the XBRL mode, without anypenalty, within 180 days from the close of the companysfinancial year to which the report relates or by January 31, 2013,whichever is later.

3. Companies (Directors Identification Number) Rules, 2006The Ministry of Corporate Affairs vide Notification No. G.S.R.173(E) dated 15th March, 2013 has issued Companies DirectorsIdentification Number (Amendment) Rules, 2013 by amendingthe Companies (Directors Identification Number) Rules, 2006.

4. SEBI (Issue of Capital and Disclosure Requirement) Regulations,2009 SEBI vide Notification No. LAD-NRO/GN/2012-13/32/4947dated 27th February, 2013 has issued SEBI (Issue of Capital andDisclosure Requirements) (Amendment) Regulations, 2013 byamending SEBI (Issue of Capital and Disclosure Requirement)Regulations, 2009.

Non-Applicability of the following Circulars/Notifications for

November, 2013 examination1. Companies (Second Amendment) Act, 2002 [relating to Winding up]:

Not Applicable. [Only General Provisions of winding up ascovered under Paragraph 9.4 of the study material is applicablefor the examination.] Since, new provisions as introduced by theCompanies (Second Amendment) Act, 2002, have not yet beencompletely notified so such provisions are not applicable fromthe examinations point of view. However, certain problems havebeen covered under para 9.4 of the study material which areapplicable for the students in the relevant examination.

2. Provisions relating to Revival and Rehabilitation of Sick-IndustrialCompanies Not applicable.

(1) The amendments made by the Finance Act, 2012 in Direct TaxLaws & Indirect Tax Laws;

(2) The provisions of Direct Tax Laws as applicable for theassessment year 2013-14;

(3) The significant notifications and circulars issued upto 30thApril, 2013 (DTL and IDTL).

Compiled By: Aayushi Gupta


16/20

16

Applicability of Amendments/Circulars etc. for November, 2013 Intermediate (IPC) Examination

amount of its debentures maturing during the year ending on the31st day of March next following year.

4. Maintenance of Cash Reserve Ratio at 4.00 per cent for allbanks vide circular DBOD. No. Ret. BC. 76/12.01.001/2012-

13 dated January 29, 2013.

5. Statutory Liquidity Ratio for Local Area Banks be reduced from25 per cent to 23 per cent of their Net Demand and TimeLiabilities (NDTL) with effect from the fortnight beginningAugust 11, 2012.

6. Review of the Prudential Guidelines on Restructuring ofAdvances by Banks/Financial Institutions

Reserve Bank of India has reviewed the prudential guidelines onrestructuring of advances by banks/ financial institutions videcircular no. DBOD.No.BP.BC.63/21.04.048/2012-13 applicablefor all scheduled commercial banks excluding RRBs dated

November 26, 2012 and has decided:i) To enhance the provisioning requirement for restructured

accounts classified as standard advances from the existing2.00 per cent to 2.75 per cent in the first two years from thedate of restructuring. In cases of moratorium on payment ofinterest/principal after restructuring, such advances willattract a provision of 2.75 per cent for the period coveringmoratorium and two years thereafter; and that

ii) Restructured accounts classified as non-performingadvances, when upgraded to standard category will attract aprovision of 2.75 per cent in the first year from the date ofupgradation instead of the existing 2.00 per cent.

In accordance with the above, loans to projects underimplementation, when restructured due to change in the date ofcommencement of commercial operations (DCCO) beyond theoriginal DCCO as envisaged at the time of financial closure andclassified as standard advances would attract higher provisioningat 2.75 per cent as against the present requirement of 2.00 percent as per the details given below:

Infrastructure Projects

Particulars

If the revised DCCO is within

two years from the originalDCCO prescribed at the time offinancial closure

If the DCCO is extended beyondtwo years and upto four years orthree years from the originalDCCO, as the case may be,depending upon the reasons forsuch delay (Ref.: DBOD.No.BP.BC.85 / 21.04.048/ 2009-10dated March 31, 2010)

Provisioning Requirement

0.40 per cent

2.75 per cent From the dateof such restructuring till therevised DCCO or 2 years fromthe date of restructuring,whichever is later.

Paper 1: Accounting

Announcement relevant for November, 2013 examination

Paper 5: Advanced Accounting

Notification/Announcement relevant for November, 2013examination

3. Clarification on Debenture Redemption Reserve (DRR)


Due to recent changes in the enhancement of tax audit limit, theCouncil of the ICAI has recently decided to change the 1st criteriai.e. determination of SME on turnover basis for Level II entitiesfrom Rs. 40 lakhs to Rs. 1 Crore with effect from the accountingyear commencing on or after April 01, 2012.

1. Presentation of Foreign Currency Monetary Item TranslationDifference Account (FCMITDA)

In the Revised Schedule VI format, no line item has been specified

for the presentation of Foreign Currency Monetary ItemTranslation Difference Account (FCMITDA). Therefore, theCouncil of the Institute at its 324th meeting held on March 24-26,2013 at New Delhi, decided that debit or credit balance inFCMITDA should be shown on the Equity and Liabilities side ofthe balance sheet under the head Reserves and Surplus as aseparate line item.


Due to recent changes in the enhancement of tax audit limit, theCouncil of the ICAI has recently decided to change the 1st criteriai.e. determination of SME on turnover basis for Level II entities

from Rs. 40 lakhs to Rs. 1 Crore with effect from the accountingyear commencing on or after April 01, 2012.

Every company required to create/maintain DRR shall before the30th day of April of each year, deposit or invest, as the case maybe, a sum which shall not be less than fifteen percent of the

Ministry of Corporate Affairs vide Circular no. 04/2013dated 11 February, 2013 has clarified the adequacy ofDRR for various institutions/companies as follows: AllIndia Financial Institutions (AIFIs) regulated byReserve Bank of India and Banking Companies forboth public as well as privately placed debentures

Other Financial Institutions and NBFCs registered with

the RBI under Section 45-IA of the RBI (Amendment)Act, 1997

if debentures issued through public issue

if privately placed debentures

Other companies including manufacturing andinfrastructure companies (including listed and unlistedcompanies)

25%

Nil

25%

Nil


17/20

17

Non-infrastructure projects

Non-infrastructure projects


0.40 per cent

2.75 per cent From the dateof such restructuring for 2years.

Particulars

If the revised DCCO is within sixmonths from the original DCCOprescribed at the time of

financial closureIf the DCCO is extended beyondsix months and upto one yearf rom the or iginal DCCOprescribed at the time off inanc ia l c losure (Re f . :DBOD.No. BP.BC.85 /21.04.048/ 2009-10 dated March 31,2010)

Particulars

If the revised DCCO is within sixmonths from the original DCCOprescribed at the time offinancial closure

If the DCCO is extended beyondsix months and upto one yearf rom the or iginal DCCOprescribed at the time offinancial closure (Ref.: DBOD.No.BP.BC.85 /21.04. 048/2009-10 dated March 31,

2010)


0.40 per cent

2.75 per cent From the dateof such restructuring for 2years.

1. Article trainee (anxiously) to his CA boss : Sir my chair is creakingand I fear it might break. What to do?

Boss: Well first check if it stil shows WDV in the books .If it does ,then there may be a need to create a permanent diminution in

All other extant guidelines on Income Recognition, AssetClassification and Provisioning pertaining to advances willremain unchanged.

The MCA has hosted on its website 35 converged Indian AccountingStandards (Ind AS) without announcing the applicability date. Theseare the standards which are being converged by eliminating thedifferences of the Indian Accounting Standards vis--vis IFRS.

(1) The amendments made by the Finance Act, 2012 in income-taxand service tax;

(2) The provisions of income-tax law as applicable for theassessment year 2013-14;

(3) The significant notifications and circulars issued upto 30thApril, 2013 (income-tax and service tax)

(The Study Materials relevant for May, 2013 and November, 2013examinations are updated based on the provisions of law asamended by the Finance Act, 2012 and significant circulars andnotifications issued up to 30.6.2012. The amendments made by theFinance Act, 2012 in income-tax and service-tax and notificationsand circulars issued between 1.5.2011 and 30.4.2012 in income-tax are also separately discussed in the publication Supplementary

Study Paper-2012.)Compiled By: Aayushi Gupta

Note: (Common for Intermediate (IPC) Paper 1 and Paper 5)

Non-Applicability of Ind ASs for November, 2013 Examination

(Students may note that Ind ASs are not applicable in November,2013 Examination. However, Accounting Standards as specifiedin the syllabus are applicable for them in November, 2013examination.)

Paper 4: Taxation

Applicability of Finance Act, Assessment Year etc. for November,2013 examination

respect thereof.

See AS 6 and AS 10 compliance. Alternatively I think there is needto depreciate it at higher rate will help tide over the liquidity crisis

we' re currently facing . Moreover...Article (interrupting ): Sir I' ll prefer falling down and breaking mybones. Thanks ..

2. Once a CA and his doctor friend died. ... Doctor was punished andsent to Hell and CA was promoted to Heaven Doctor asked Godyama , what is the reason for sending me to the Hell??

God replied : - This CA has already done article ship and ICAIexam at earth ,so how can a person be punished for sameoffence twice . ..

Jokes Corner


18/20

18

IMPORTANT ANNOUNCEMENTS

1. Revision of Fee for all GMCS Course(s)

2. Revised Scheme of Revalidation of Registration in CA

course

$

Common Proficiency Course (CPC):

$

$

Intermediate (Integrated Professional Competence) Course:

$

$

$

Final Course:

$

$

The Council at its 324th Meeting held in April, 2013 decided that with

effect from 1st July, 2013 fee for the General Management and

Communication Skills (GMCS) Course i.e. existing GMCS Course,

GMCS I and GMCS II courses shall be Rs. 5,500/- per

participants for each course. It is clarified that students who have

already registered by paying Rs. 4,000/- and will be undergoing the

relevant GMCS classes starting on or after 1st July, 2013 are required

to pay the balance amount of Rs. 1,500/- to the organizing centers

before commencement of the batch of GMCS or GMCS I Course.

The Council in order to streamline the period of validity of registration

for Common Proficiency Course

(CPC), Intermediate (Integrated Professional Competence) Course

and Final Course decided as under:

Revised Scheme of Revalidation of Registration for CA courses

shall be effective from 1st January, 2013 onwards.

Initial registration for Common Proficiency Course (CPC) is

valid for 3 years.

Fee for revalidation is 300/- for 3 years period.

Initial registration for Intermediate (IPC) Course is valid for 4

years.

Validity period for students converted from erstwhile

Intermediate/ Professional Education (Course-II)/Professional

Competence Course is counted from the date of conversion to

Intermediate (IPC) Course.

Fee for revalidation is 400/- for 4 years period.

Initial registration for Final Course is valid for 5 years.

Fee for revalidation is 500/- for 5 years period

Students of respective course can revalidate their registration anynumber of times as per the scheme applicable and should have valid

registration before applying for the relevant level of examination.Student who have completed/completing prescribed registration

period on or before December 31, 2013 in Common Proficiency

Course (CPC), Intermediate (IPC) Course and Final Course may

revalidate their registration without paying revalidation fee till 31st

December, 2013, failing which effect from 1st January, 2014

onwards all students are required to pay prescribed revalidation fee

for revalidation of their registration in the respective courses.For format of application and further details, please visit

www.icai.org

The Board of Studies of the Institute has great pleasure in

announcing Webcasts for Students on ICAI TV, the URL given on the

LHS.Students Webcasts are broadly categorized into two categories

Subject Specific and Motivational/ Instructional.

Provide quality education and development facility anytime and

anywhere in an affordable manner through a self learning/

development facility.

Anytime/ Anywhere Online Learning

Free Coaching

Support Students in Small Mofussil Towns and Cities

Support Poor Students with quality educational inputs

Take learning and development to the doorsteps of students

Provide a Self Learning/ Development facilityWebcasts AvailableStudents are advised to benefit from the following three webcasts

of two hours duration each, links for which are available below:

Final Direct Tax Laws: http://icaitv.com/?p=1861

Preparing for CA Exams: http://icaitv.com/?p=1930

Links to the aforementioned webcasts are also available through

the Students Learning Management System (LMS) at

http://studentslms.icai.org under Announcements Section.

The Board of Studies would be organizing Subject Specific

Webcasts for the benefit of Students taking the November 2013

Examinations from July 2013.

4. National Convention for CA Students-Ghaziabad will be held

in the month of August 2013. Dates will be announced soon.

Interested Students may prepare papers and submit forapproval.

Source: Board of Studies

Disclaimer: The writer is not in any way responsible for the result

of any action taken on the basis of the advertisement published in

the Journal.

Compiled By: Aayushi Gupta

3. ICAI Web TVIntroduction

Objective

Salient Features$

$

$

$

$

$

$

$

Webcasts Available


19/20

19

Orientation Batch Startedon 26-06-2013

National Convention of CA Students,Held in the month of August 2012

Annual Elocution & Quiz ContestHeld in 2012

CPT Mock Test Held on 09-06-2013 at Branch Premises

Orientation Batch ITT Class Held at Branch Premises GMCS Batch Final Day on 25-06-2013

Cultural Evening at National Conventionof CA Students

GMCS Class Held at Branch Premises Award for Best Student Given at GMCS Group Discussion Activity as apart of GMCS Programme


20/20

Views/matter expressed in this Newsletter are of the individual contributors and do not necessarily reflect the official views of the Ghaziabad Branch.KAG

PrintingnGraphic

GHAZIABAD BRANCH OF CIRC OF ICAIGHAZIABAD BRANCH OF CIRC OF ICAIYamunotri Complex, IInd Floor

A-12, Ambedkar Road, Ghaziabad (U.P.) Phone : 2793802url : www.icaighaziabad.org

EDITORIAL BOARD

Name Designation E Mail ID Mobile No.

CA Rajeev VD Gupta Chief Editor [email protected] 9810918914

CA Ankur Tayal Deputy Chief Editor [email protected] 9818830255

CA Gyan Chandra Misra Joint Editor [email protected] 9810816012

CA Naveen Kr. Sharma Joint Editor [email protected] 9810130931

Aayushi Gupta Editor [email protected] 9953830404

CA Pallav Sharma Co-editor [email protected] 9810937604

Aastha Khanna Member [email protected] 9717957947

Nikita Mehra Member [email protected] 9717337950

Ritika Goel Member [email protected] 9582300924

Abhay Kansal Member [email protected] 9990028500

Akshay Goel Member [email protected] 9999961298

Vaibhav Jindal Member [email protected] 9716614847

Vaibhav Goel Member masterdisciple @rediffmail.com 9457724416

Kanika Gupta Member [email protected] 9810313572

Himanshu Tayal Member [email protected] 9555844935

Rishabh Jain Member [email protected] 9891275406

students e newletter - june 2013

Documents