10 BCASNewsletterBCAS Newsletter I February 2011 1 ... Mahendra Sanghvi Subject I Recent Developments in TDS Venue I Yogi Sabhagruha, Shree Swami Narayan Mandir, Dadar (East), Mumbai

BCAS Newsletter I February 2011 1

Vice-President’s Communiqué

7, Jolly Bhavan No. 2, New Marine Lines, Mumbai-400020. Tel. Nos. : 61377600; fax: 61377666 Email : [email protected]; Website : www.bcasonline.org

PROGRAMMES AT A GLANCE

Dear Members,

February is the month of the budget. If the Finance Minister is able to stick to the announced timeline, this will probably the last time he would propose amendments in the Income Tax Act, 1961. From 1st April, 2012 the Direct Tax Code (DTC) is scheduled to come into force. The Society has organised a lecture meeting on the Finance Bill 2011 which will be addressed by Senior Advocate Mr. Soli Dastur. The announcement in this regard appears elsewhere in this Newsletter.

As far as the Direct Tax code is concerned, the Society has already made representation in this regard thereto, both at the draft stage and when the bill was introduced in the parliament. The Society has also discussed its suggestions with the members of the Standing Committee on Finance led by Shri Yashwant Sinha on 31st January. We hope our concerns will be considered when DTC becomes a law.

While both the budget and the DTC are a part of the future, we as professionals and our clients continue to face a number of problems on the TDS front, in regards to verification of TDS returns, getting credit for taxes deducted, etc. In order to explain the role of NSDL in regard thereto, the Society had organised a lecture meeting, which was addressed by Ms Delnaz Mistry manager NSDL and her team on 31st January 2011 at the IMC.

With regard to our role as auditors, our profession has been facing a lot of criticism; some of it is valid while the balance is uncalled for. In this context, the recommendation of the Committee on Disclosures and Accounting Standards, that qualifications made by an auditor in respect of accounts of listed companies would require the said company to restate accounts, makes it an interesting read. The proposal has a large number of implications. It will cast a significant onus on the auditor. I am sure our profession, will be in a position to discharge this responsibility. The Mubarak government in Egypt finally seems to be bowing to the

Harnessing Talent and Providing Quality Service

Vol. 13 n No. 11 n February 2011

n A Monthly Newsletter of the Bombay Chartered Accountants’ Society

For Members only. For Private Circulation only. Price: ` 10

BCASNewsletter

President: Mayur Nayak, 93242 71980;[email protected]

Vice-President: Pradip Thanawala, 98200 45632; [email protected]

Hon. Jt. Secretaries: Deepak Shah, 98201 48536; [email protected] Nitin Shingala, 98200 57694; [email protected]

Hon. Treasurer: Raman Jokhakar, 98208 77976, [email protected]

Two – day orientation workshop specially designed for 25-02-2011&

articled students............................................................................. 26-02-2011...................... BCAS Conference Room ..................................................................................... 3

Workshop on practical Aspects of Five Important Articles of DTAAs 26-02-2011...................... J. W. Marriott, Juhu –Tara Road, Juhu, Mumbai ............................................... 4

Concurrent Audit of Banks ............................................................. 26-02-2011...................... Walchand Hirachand Hall, IMC .......................................................................... 5

Full Day Workshop on Valuation under Indirect Tax Laws............... 19-03-2011...................... J. W. Marriott, Juhu – Tara Road, Juhu, Mumbai ................................................ 4

2 - Day workshop on fair value of financial instruments ................. 25-03-2011& 26-03-2011 BCAS Conference Room ................................................................................... 6

Full Day Seminar on Charitable Trust ............................................ 23-04-2011...................... M. C. Ghia Hall, Kalaghoda ................................................................................ 7

Lecture Meetings.......................................................................... 23-02-2011, 03-03-2011, 04-03-2011, 06-03-2011, 09-03-2011 ................................................................. 1

(Continued on page 2)

Lecture Meeting

Budget Meetings

Venue I Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai - 400020. Day, Date & Time I Wednesday, 23rd February 2011, 6.15 p.m.*Speaker I Mr. Porus DoctorSubject I Challenges and Opportunities for Internal Auditors in the coming Decade * Fellowship over a cup of tea at 5.45 p.m.

Venue I Maharashtra Seva Sangh, Above Apana Bazaar, Jawaharlal Nehru Road, Mulund (West) , Mumbai 400 080 Tel: 25681631 / 25690225Day, Date & Time I Saturday, 19th March 2011, 6.15 p.m.*Speaker I CA. Mahendra SanghviSubject I Recent Developments in TDS

Venue I Yogi Sabhagruha, Shree Swami Narayan Mandir, Dadar (East), Mumbai - 400014Day, Date & Time I Friday, 4th March 2011, 6.15 p.m.Speaker I S. E. Dastur, Senior AdvocateSubject I Direct Tax Provisions of the Finance Bill, 2011

Turn to page 2 for more meetings.

Venue I Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai - 400020.Day, Date & Time I Wednesday, 9th March 2011, 6.15 p.m.*Speaker I Vikram Nankani, AdvocateSubject I Service Tax Provisions of Finance Bill, 2011

BCAS Newsletter I February 20112

Right to Information ClinicBCAS Foundation operates a Right to Information (RTI) Clinic on regular basis. RTI Clinic is operated by Mrs. Hema Sampat, a research scholar on the subject of RTI, Mr. A. K. Asher, Adv. & RTI activist and CA. Narayan Varma, Past President, BCAS.

The Clinic provides help and guidance to BCAS members as also to non-members, i.e., all citizens, for making applications under the RTI Act and also assists in resolving any related difficulties on the subject of RTI.

The RTI Clinic operates on every 2nd, 3rd and 4th Saturday from BCAS’s office – 11 a.m. to 1 p.m.

The next RTI Clinic days accordingly are 26th February 2011 and 12th, 19th and 26th March 2011. Please call the Society’s office (Ms. Shernaaz: 61377600) to obtain a prior appointment.

Charitable Trust ClinicThe next Charitable Trust Clinic will be held on Friday, 11th March 2011 from 5 p.m. to 7 p.m. in the library room of BCA Society at New Marine Lines.

Chartered Accountants and Trustees interested in having their queries solved are requested to call the Society’s office (Mrs. Mistry: 61377620) and obtain a prior appointment, latest by noon on the day of the Clinic. Querists are also advised to bring along relevant papers like trust deeds, audited accounts, etc.

Panel of Advisors:CA. Ratanshaw Damanwala,CA. Shariq Contractor,CA. Gautam Nayak,CA. Anil Sathe CA. Atul Shah

Accounts & Audit ClinicThe next Accounts & Audit Clinic will be held on Saturday, 5th March 2011, from 10.30 a.m. to 11.30 a.m. in the library room of BCA Society at New Marine Lines.

Persons interested in having their queries pertaining to accounting and auditing issues solved, are requested to send the queries by e-mail to [email protected] one week in advance and call the Society’s office (Mr. Rajaram: 61377613) to obtain prior appointment, at least a day before the day of the Clinic. Please note that the Panel will not answer any queries pertaining to tax issues.

Panel of Advisors:CA. Sanjeev Pandit, CA. Himanshu Kishnadwala CA. Jayesh Gandhi

(Continued from page 1)

will of the people. This goes to show that if people are united a lot can be achieved. Such uprisings and revolutions lead to some violence, which should be avoided as far as possible. While appreciating that the political hues of our country are materially different from that of Egypt, one can learn from the solidarity Egyptians are showing towards their cause.

I think it is time for us-Indians to unite and speak up against widespread corruption and non-governance and make the Government and its officers accountable for the same. .

With warm regards, Yours truly,

CA. Pradip Thanawala

Lecture Meeting

Budget Meetings

Venue I S.N.D.T College, Cama Lane, Ghatkopar (West), MumbaiDay, Date & Time I Sunday, 6th March 2011, 10 a.m.Speaker I Eminent Speaker Subject I Union Budget 2011-12

(The above lecture meetings are conducted jointly with the Forum of Free

Enterprise and Council for Fair Business Practices)

Venue I Gyan Vihar Mandal’s Amphi Theatre Devidas Road, Borivali (West)Day, Date & Time I Sunday, 6th March 2011, 6.30 p.m.Speaker I CA. Kanu H. Doshi Subject I Union Budget 2011-12



Venue I Rama Watumall Auditorium, K. C. College 124, Dinshaw Wachha Road, Churchgate, Mumbai – 400020Day, Date & Time I Thursday, 3rd March 2011, 6 p.m.Speaker I CA. Gautam Doshi and Dadi Engineer, Solitor & AdvocateSubject I Indirect Tax Provisions of the Finance Bill



Venue I Walchand Hirachand Hall, 4th floor, IMC, Churchgate, Mumbai - 400020. Day, Date & Time I Wednesday, 23rd March 2011, 6.15 p.m.*Speaker I CA. Akeel MasterSubject I Issues in Bank Audit * Fellowship over a cup of tea at 5.45 p.m.


Two-day Orientation Workshop specially designed for Articled Students‘Our Articled Students are our greatest asset and we must put our time, effort and money into training, grooming, and encouraging our greatest asset.'

At the outset, kudos to each one of you for clearing two levels of traumatic examinations in the quest to become Chartered Accountants. Nervousness, excitement, the feeling of being lost in a crowd, fear of failure, are the many thoughts that every new articled clerk goes through. Now, is the time to apply all that you have learned, you can move from theory to practice. In other words . . . from books to computers ! . . . from pocket money to stipend !

The intention of this articleship period is to develop and sharpen all round skills of aspiring individuals to be a Chartered Accountant. Considerable time is spent by our members in the training and guidance of articled clerks.

To overcome the difficulties faced by our members in training the students and to boost the confidence of these students, the Human Resources Committee of the Bombay Chartered Accountants’ Society has organised a two-day orientation workshop specially aimed and targeted for the students. This workshop is specifically designed to give an introductory insight to the participants on a variety of topics which will assist them in their articled period and sharpen their skills to perform their duties in a more meaningful and responsible manner.

This orientation workshop will introduce the students to various aspects of practice; from technical areas (like audit, taxation, etc.) to behavioural aspects at office or interacting with clients. Details of the workshop are as under :

Day & Date : Friday, February 25, 2011 and Saturday, February 26, 2011.Time : 9.00 a.m. to 5.30 p.m. Venue : BCAS Conference Room, 7 Jolly Bhavan no. 2, New Marine Lines, Mumbai-400020. Fees : `1,050 for students (including `50 for BCAS Foundation)

Enrolment is restricted and is fast filling up. Send your registration to avoid disappointment.

Topics to be covered would be as follows :

Topics

1 Introduction to Accounting Standards

2 Introduction to Direct Taxes

3 Introduction to Service Tax

4 Introduction to MVAT

5 Introduction to Auditing

6 Introduction to Internal Audit

7 Importance of Communication and Inter-personal Skills

8 Code of conduct for articled students and ICAI regulations relating to students

Enrolment form is printed on page 12.

Human Resources CommitteeChairman : CA. Rajesh Muni Convenors : CA. Manish Sampat CA. Aliasgar Kherodawala CA. Ashish Fafadia

It’s time for the Finance Minister to present the Annual Budget for the year 2011-12 and for the BCAS to bring out its Annual Budget Publication – ‘The Finance Bill, 2011 – An Analysis’.

The publication will highlight the intricacies of the Budget proposals in simple language for the benefit of members and the citizens at large. The Budget Publication will be published in 1 language viz. English.

The publication will be available for delivery and sale at the BCAS office from 4th March 2011. The price for one set of 5 booklets of Budget Publication is R25.

Order Form:Quantity of sets

R 25 for a set of 5 booklets

Total Postage Cost: R25 for Mumbai

and suburbs R35 for all over India

for each set

Total

Name : Mr./Mrs./Ms......................................................................................................................................................................................................BCAS Memb. No.: ...................................................................................Firm’s Name : ...........................................................................................Office Address : .......................................................................................................................................................................................................Tel Nos. (Office) : ……………….........…Mobile :......................................E-mail : …………………..................................................………………….Cash/Draft/Cheque No. : …………………………Drawn on : ................... .………….....………………............…… Bank, Dated :……………….....…Total amount of r…………………………………………………………….....is enclosed.

Budget Publication(In English)

The BCAS has made arrangements for live screening of the Finance Minister’s presentation of Budget 2011 at the BCAS office on 28th February 2011, from 10.45 a.m. onwards. BCAS members are invited to watch the live screening and exchange notes and opinions thereon instantly with fellow professionals over a cup of hot tea/coffee.

As the seats are limited, kindly confirm your attendance by e-mail to [email protected] at the earliest.

Live Screening of Budget


Indirect Taxes constitute more than 60% of the government revenue. Typically, each type of Indirect Tax is governed by its own statute, rules and procedures. Each one of these have its own peculiarities, complexities and disputes. Additionally, there are several instances of overlaps within the triumvirate of central taxes of customs duties, excise duties and service tax as also between the central and state taxes of service tax and VAT.

While the central challenge is, of course, between goods taxation and service taxation, an important yet often neglected dispute pertains to the valuation of these goods and services. Simply put, the manner in which the goods and services are valued and ultimately taxed under indirect tax legislations is fraught with pitfalls and controversies. Any business decision, without clarity on the above aspect would not only be disastrous but may also lead to unwarranted financial losses. The basis of inclusion or exclusion of various components in the value which is ultimately taxed needs to be understood very clearly.

This workshop aims to help you achieve this goal. BCAS has brought together a team of domain experts who will present their views on:

• Introductiononthevaluationprovisions–needandhistory• Criticalissues–keyrules/clausesthathavebeenthesubject

matter of dispute• Practicaldifficulties• Recentdevelopmentsandcontroversies.

Day & Date : Saturday, 19th March 2011Time : 10.00 a.m. to 5.00 p.m.Venue : J. W. Marriott, Juhu-Tara Road, Juhu, Mumbai - 400049

Indirect tax law Speaker

Customs Act Solicitor Rohan Shah

Maharashtra Value Added Tax Act CA. Parind Mehta

Service tax CA. A. R. Krishnan

Excise Act Advocate Balbir Singh

Fees : `2,400 for a member `3,600 for a non-member (including contribution of `50 to BCAS Foundation, cost of study material, if any, tea and snacks)


Full-day Workshop on Valuation under Indirect tax laws

Indirect Taxes And Allied Laws CommitteeChairman : CA. Govind Goyal Convenors : CA. Sunil Gabhawalla CA. Toral Mehta CA. Suhas Paranjpe

Course Co-ordinators : CA. Samir Kapadia, CA Udayan Choksi

Member / Journal / Student subscribers are requested to inform any change of address of correspondence by e-mail to [email protected] on or before 20th of every month. Intimation received after 20th of the month will be effective from the next month onwards. Please help us to serve you better.

Announcement

Workshop on Practical Aspects of Five Important Articles of DTAAs

International Taxation CommitteeChairman : CA. Pinakin Desai Co-Chairman : CA. Rajesh Kothari Convenors : CA. Gaurang Gandhi CA. Dhishat Mehta CA. Sushil Lakhani

Course Co-ordinators : CA. Tarunkumar Singhal and CA. Anil Doshi

The purpose of this workshop is to deal at an advanced level focussing on practical aspects and case studies of the five important Articles of DTAAs. This workshop would be useful for professionals practising in the field of International Taxation as also to tax professionals in industry. Day & Date : Saturday, 26th February, 2011 Time : 9.00 a.m. to 6.00 p.m.Venue : J. W. Marriott, Juhu-Tara Road, Juhu, Mumbai-400049.Fees (each) : `2,000 for members `3,000 for non-members (limited seats) (inclusive of course material, tea, coffee & lunch and `50 towards contribution to BCAS Foundation)

Topic Faculty

Article 4 i.e. Residence and Place of Effective Management

CA. Rajendra Nayak

Articles 5 and 7 i.e. Permanent Establishments and Business Profits

CA. Shefali Garodia

Article 8 i.e. Shipping and Aircraft CA. Sushil Lakhani

Article 11 i.e. Interest and Tax Treatment of Finance Products

CA. Keyur Shah

Article 12 i.e. Royalty, Fees For Technical Services and Fees For Included Services

CA. Padamchand Khincha

Enrolment restricted to 125 participants on first-come-first-served basis. Please enrol early to avoid last minute disappointment.

Enrolment fees are non-refundable.



"INTENSIVE STUDY COURSE ON TRANSFER PRICING IS PROPOSED TO BE COMMENCED FROM MID-MARCH 2011. FOR FURTHER DETAILS, PLEASE LOG ON TO BCAS WEBSITE ON AND FROM 25 FEBRUARY 2011."


The Accounting & Auditing Committee is pleased to announce a full programme to explore how as concurrent auditors we can better deliver to the satisfaction of the Banks.

Day & Date : Saturday, 26th February 2011Venue : Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai – 400020Timing : 9.30 a.m. to 6.30 p.m.Fees : `1,500 for members/student members and `2,250 for non-members (includes contribution of `50 to BCAS Foundation, lunch and snacks during the session)Our topics and panel of speakers is indeed impressive which include:

Topic Speaker

Introduction to Concurrent Audit in Banks and evolution thereof. Representative from Reserve Bank of India*

Activities of Centralised Processing Centre – Retail Assets Focus :

Areas to be covered includes - Completeness of loan application forms and supporting documentation, Review of the Credit approval process based on - applicable policies and procedures and sanction letter, Review of legal and technical report, CIBIL verification, Review and storage of PDCs, Disbursements, File movements and safe custody of mortgage documents etc., Hypothecation, Registration of charge, Compliance to regulatory requirements

Mr Hemant Shah – Kotak Mahindra Bank

Activities of Centralised Processing Centre – Liabilities focus

Areas to be covered includes - Account Opening and modification, Account Closure, Masters Verification, Custody and physical verification and destruction of secured stationary and Debit and ATM cards, Suspense Account monitoring, Review of Regulatory Returns, Monitoring of control reports etc., Compliance to regulatory requirements

Eminent Speaker from Industry

Activities of Treasury – Foreign Exchange -

Areas to be covered includes - Dealing Room activities – Merchant and Interbank Desk, Monitoring of client exposure limits, Rate scan, Monitoring of NOP, Control on Nostro balances, Booking of forward contracts and related controls, IGL, AGL, Front Office – Back office reconciliation, VaR limits,Compliance to regulatory requirements

Eminent Speaker from Industry

Activities of Corporate Lending and Trade Operations

Areas to be covered includes operation pertaining to - Bills discounting, Letter of credit, Inward and Outward remittances, Pre and post shipment packing credit, etc., Terms Loans, short term loans, Bank Guarantees, Compliance to regulatory requirements

Mr Suhas Supekar - Experienced Banker


Concurrent Audit of Banks – A programme especially for all those who undertake concurrent audit of banks

Accounting & Auditing CommitteeChairman : CA. Himanshu Kishnadwala Convenors : CA. Mukesh Trivedi CA. Abhay Mehta CA. Suril Shah

Course Co-ordinators : CA. Himanshu Vasa, CA. Aruna Shah & CA. Neesha Samant

Concurrent Audit of Banks is an age-old service which firms of Chartered Accountants have been providing for over almost 2 decades. The businesses scenario in which the banks in general have been operating have changed significantly. From undertaking accounting records manually to core banking solutions a lot has changed. Customer expectation has changed. Similarly the focus of concurrent audit has changed and will continue to change from providing simple assurance of basic accounting and record keeping requirements to value added services. Keeping this changing environment a need was felt to enrich members on how to audit key and high risk areas coupled with regulatory environment and discuss way in which concurrent auditors can add value.


“Your annual membership/subscription will expire on 31st March, 2011” You are requested to renew your subscription now. The hard copy and soft copy of the renewal notice have already been sent to you. Please send your renewal fees to: Bombay Chartered Accountants’ Society Office. Now, you can renew your membership online through the Payment Gateway. Kindly log on to www.bcasonline.org for more details on renewal of membership.

Kind Attention: Members

Study Group on International Tax Decisions


Course Co-ordinators : CA. Kirit Dedhia, CA. Rajesh Shah and CA. Ganesh Rajgopalan

The current incessant and often conflicting and divergent flow of judicial decisions in the arena of International Taxation has unsettled many of our understandings, making it imperative for us to keep ourselves continuously updated of developments in the field.

To achieve this objective, the Study Group will be led by experts in the field of international taxation and will have threadbare deliberations on the decisions rendered by various Tribunals, Authority for Advance Rulings (AARs) and Courts (including important decisions of the foreign courts).in the arena of international taxation.

The study group is a joint initiative with the Chamber of Tax Consultants.

Membership contribution for the group will be R1,750 for the financial year April, 2011 to March, 2012.

It is proposed to hold about 8 to 10 meetings in a year. This Study Group will be ideal for Chartered Accountants specialising in the field of International taxation and/or in industry dealing with non-residents on regular basis.

Membership of the Study Group will be restricted to 150 members enrolled by both the organisations on ‘First-Come-First-Enroll’ basis. Enrolment form is printed on page 12.

Price is what you pay. Value is what you get. — Warren BuffetThe convergence of Indian GAAPs with IFRS for all public interest entities which is expected to be effective from April 1, 2011 will mark a paradigm shift from historical cost accounting to fair value accounting. Despite the fact there are both advantages and disadvantages of adopting fair value accounting, we have to accept that fair value is here to stay and we have to learn how to deal with it.

After the success of the 2nd Residential Study Course on IFRS which was held in December 2010, the Accounting & Auditing Committee is pleased to announce a 2-day intensive workshop on fair value of financial instruments with a view to equip the participants with the practical tools and methods which are essential for a deeper understanding and implementation of the concepts.The programme will cover the following aspects :

1. Overview of Fixed Income Markets and Concepts.2. Interest rates basis and related Excel functions.3. YTM and its computation using Excel capabilities.4. Various interest rates methods and migrating from one to another

using built-in proprietary model of Excel.5. Interpolating interest rates from yield curve.6. Introduction to zero curve.7. How to derive swap curve from swap prices.8. Introduction to basic derivatives and their pricing.9. Understanding the concept of intervening income and its impact

in pricing a forward contract on a bond.10. Pricing FRA and creating a model for FRA and understanding why

FRA is important in swap pricing.11. Understanding swaps and their pricing.12. Understanding options and using options pricing model and

binomial model to price options.13. Applying theory to practice by valuing debt structures and their

accounting under IFRS, valuing forward structures and valuing swap and option structures.

Details of the programme are as under:Days & Dates : Friday / Saturday, 25th to 26th March 2011.Time : 9.30 a.m. to 6.00 p.m.Venue : BCAS Conference Room, 7, Jolly Bhavan No. 2, Ground Floor, New Marine Lines, Mumbai 400 020.Faculty : CA. Ramesh LakshmanFees : Members : `7,800 Non-Members: `9,300 (Fees include course material, working lunch and tea on both the days and contribution of `50 towards BCAS Foundation)Enrolment is restricted to 25 participants on first-come-first-serve basis. To give benefit of this programme to a large spectrum of members, enrolment would be restricted to a maximum of 3 members from the same organisation and additional members from that organisation would be kept on waiting list. They would be enrolled if there is a vacancy prior to 3 days of the commencement of the programme.

Participants would be expected to carry their own laptops for working through the practical exercises throughout the programme.

Enrolment fees are non-refundable, non-transferable and as per Society’s policy, a participant is not permitted to substitute another person.


Accounting & Auditing CommitteeChairman : CA. Himanshu Kishnadwala Convenors : CA. Mukesh Trivedi CA. Abhay Mehta CA. Suril Shah

2 – Day Workshop on Fair Value of Financial Instruments


A full day Seminar on Formation, Registration, Taxation and compliance to various statutory provisions by the Charitable Trusts is organised to discuss and deliberate on the various issued faced in day to day practice.

Day & Date : Saturday, 23rd April, 2011Time : 9.30 a.m. to 5.30 p.m.Venue : M. C. Ghia Hall, Kalaghoda, Mumbai – 400 023Fees : Fees: Rs. 800/- for Members Rs. 1000/- for others (including tea, coffee, lunch & material)

The details are as follows:

Jointly with The Chamber of Tax Consultants Full Day Seminar on Charitable Trusts

Indirect Taxes And Allied Laws CommitteeChairman : CA. Govind Goyal Convenors : CA. Sunil Gabhawalla CA. Toral Mehta CA. Suhas Paranjpe

Topics Speakers

Inauguration Key Note Address Charity Commissioner and/or DIT (Exp.)* &CA. Arvindbhai Dalal, Chairman

1st Technical Session Formation of Trust(Trust Deed / MOA & Rules& Regulations with C.C. under BPT & Societies Registration Act)

Advocate Nitin Kadam

2nd Technical Session Statutory formalitiesBefore charity comm. & contribution payable

CA. Vipin Batavia

3rd Technical Session Reg. with I.T. Dept.Exemption U/S 80- G andUnder section 10 (23) (c).

CA. Paras Savla

4th Technical Session Taxation of Charitable Trust

CA. Gautam Nayak

5th Technical Session FCRA provisions and DTC(Proposed Amendment’s)

CA. Shariq Contractor

*confirmation awaited

Members are requested to take advantage of this unique opportunity and enroll early to avoid disappointment.


BCASYoung at heart

in tune with the times…

Please visit us at our New Cyber Addresses, and share your views with us:

Linkedin: http://in.linkedin.com/in/bcasglobal

Twitter: http://twitter.com/bcasglobal

Facebook Group: globalcharteredaccountants

Blog: http://globalcharteredaccountants.

wordpress.com

Our website: www.bcasonline.org

We hope to interact with you more often, as we are truly, just a click away!!


Bombay Chartered Accountants' Society

InfoTech & 4i Committee&

Membership & Public Relations Committee Present

BCAS Web TV

A free video of the Lecture meeting by Mr. Keki M. Mistry on Lessons from the Global Financial Crisis and the Role of Housing in the Indian Economy dated 6th July, 2010 is available on BCAS Web TV.

Title BCAS Web TV

Format Internet Television Live Streaming Service

What do you need A computer with an internet connection or a cell phone with 3G connectivity and BCAS membership

Mechanism of Working Pay the subscription charges for BCAS TV and you will be emailed a user id and password, then log on to www.bcasonline. tv and view the videos or hear the audios of select events conducted by BCAS

Features You can see videos or hear audios recordings on the move on your mobile or on your laptop. The website has been designed for enabling: •LiveStreamingServiceand •Searchforspecificvideosfrommultiplevideoshostedonthesite

Discipline Videos/Audios of selected Lecture Meetings, Workshops, Study Circles, Seminars etc.

Who can benefit Life and Ordinary Members of BCAS

How to Subscribe By cheque/DD/Credit Card: Payment Counter: BCAS, 7, Jolly Bhavan No.2, New Marine Lines, Mumbai - 400020

Imprest: If you are a BCAS member and if you have an imprest account then you can give instructions to adjust the subscription through the imprest account

Cheques/Pay orders/DDs should be payable at Mumbai in the name of "Bombay Chartered Accountants' Society"

For more Information: Call +91-22-61377600 or write to [email protected]

Subscription Charges Rs. 600 per annum subject to maximum download of 4 GB per month (average 20 videos)

These special rates apply to those who pay by 31st March, 2011 and would allow the subscriber to access the facility for two extra months (February and March 2011) apart from the F.Y. 2011-12. Subscription charges are subject to change for those who pay after 31st March, 2011

Bombay Chartered Accountants' Society7, Jolly Bhavan No. 2, New Marine Lines, Mumbai - 400020

Website: www.bcasonline.org E-mail: [email protected]: 61377600 Fax: 61377666


CUT HERE

ENROLMENT FORMName :...................................................................................................................................................................................................Registration Number : ..........................................................................................................................................................................

Course in which admission is desired : I.P.C.C ( ) FINAL ( ) (Please tick appropriately)

Residential Address : .........................................................................................................................................................................

...................................................................................................... Tel. No. (M) : ........................... E-mail : ....................................

Details of Articleship : Date of Joining ................................... Estimated date of Completion ................................................Name of the Principal : .....................................................................................................................................................................Name and address of Firm where articleship is being done : ........................................................................................................ ...........................................................................................................Tel. No. (O) : ............................ Fax No. (O) ..........................Cash/Draft/Cheque No. ........................................................................................................ drawn on ......................................Bank,dated ......................................................... for an amount of 1500 is enclosed.

..............................................................erutangiS ............................................... : etaD ..

Notes : 1. Please send the above form along with cash/cheque/draft drawn in favour of ‘‘BOMBAY CHARTERED

ACCOUNTANTS’ SOCIETY’’, to the Society’s offi ce, at the address mentioned above. 2. We propose to have multifarious activities like Elocution Competition, Public Speaking, Self Development Education Courses,

Orientation Courses, etc. for interested Students. 3. Members are requested to keep the proforma of this sheet and send the same duly fi lled in by new articled trainee after his/

her enrolment in their offi ce.

Bombay Chartered Accountants’ Society ,7 Jolly Bhavan No. 2, New Marine Lines, Mumbai-400 020.

Phone 61377600 / Fax : 61377666 E-mail : [email protected] Web : www.bcasonline.orgHuman Resources Committee

Chairman : CA. Rajesh R. Muni Convenor : CA. Manish Sampat, CA. Aliasgar Kherodawala,

"We had joined the Revision Course, which has proved very much helpful to us. We cleared both groups in First Attempt"Miss Janhavi Thatte & Miss Komal Jain

I.P.C.C. & FINAL C.A. STUDENTS’ EDUCATION CRASH COURSES (Jointly with Western India Regional Council of The Institute of Chartered Accountants of India )

For May & November 2011 Examinations 1. Courses for :

laniF .A.C .C.C.P.I .A.C gnitropeR laicnaniF — gnitnuoccA decnavdA / gnitnuoccA —

tnemeganaM laicnaniF cigetartS — swaL ynapmoC & ssenisuB — gnitiduA decnavdA — .M.F & gnitnuoccA tsoC —

swaL deillA & setaroproC — noitaxaT — ycnatnuoccA tnemeganaM decnavdA — ecnarussA & gnitiduA —

— Information Technology & Strategic Management — Information Systems Control and AuditsexaT tceriD —

sexaT tceridnI — 2. Course Co-ordinators : CA. Chandrakant Ruparelia, CA. Neel Majithia 3. Fees : 1500 per student for I.P.C.C or Final (Total, and not per Subject, Including cost of Study Materials) 4. Timings & Venue : 6.15 p.m. to 8.30 p.m. on weekdays (Monday to Friday) at Sydenham College, ‘B’ Road,

Churchgate. 5. Duration : From January 17 to March 31, 2011. 6. Enrolment from : October 15, 2010 7. Faculty : Eminent personalities possessing rich experience in their respective fi elds.

For further information kindly contact Ms. Shernaaz or Mr. Rajaram on Phone 61377600 and 61377613 respectively during offi ce hours.

CA. Ashish Fafadia


The Reserve Bank of India has issued the following 8 Circulars

A. P. (DIR Series) Circular No. 33, dated January 05, 2011Exim Bank’s Line of Credit of USD 61.60 million to the Government of the Republic of Kenya

Exim Bank has made available, subject to certain terms and conditions, to the Government of the Republic of Kenya a Line of Credit of US $ 61.60 million for financing eligible goods and services including consultancy services from India for power transmission lines in Kenya. Eligible goods and services including consultancy services of the value of at least 75% of the contract price have to be procured from sellers in India, while the remaining 25% of the goods and services (other than consultancy services) may be procured from sellers outside India.

The last date for opening of Letters of Credit and Disbursement for project exports will be 48 months from the scheduled completion date of the contract and November 15, 2016 in case of supply contracts.

A. P. (DIR Series) Circular No. 34, dated January 05, 2011Exim Bank’s Line of Credit of USD 30 million to the Government of the Republic of Cote d’lvoire

Exim Bank has made available, subject to certain terms and conditions, to the Government of the Republic of Cote d’lvoire a Line of Credit of US $ 30 million for financing eligible goods and services including consultancy services from India for the purpose of electricity interconnection project between Cote d’lvoire and Mali. Eligible goods and services including consultancy services of the value of at least 85% of the contract price have to be procured from sellers in India, while the remaining 15% of the goods and services (other than consultancy services) may be procured from sellers outside India.

The last date for opening of Letters of Credit and Disbursement for project exports will be 48 months from the scheduled completion date of the contract and December 29, 2015 in case of supply contracts.

A. P. (DIR Series) Circular No. 35, dated January 05, 2011Exim Bank’s Line of Credit of USD 15 million to the Government of the Kingdom of Cambodia

Exim Bank has made available, subject to certain terms and conditions, to the Government of the Kingdom of Cambodia a Line of Credit of US $ 15 million for financing eligible goods and services including consultancy services from India for completion of Stung Tassal Water Development project in Cambodia. Eligible goods and services including consultancy services of the value of at least 75% of the contract price have to be procured from sellers in India, while the remaining 25% of the goods and services (other than consultancy services) may be procured from sellers outside India.

The last date for opening of Letters of Credit and Disbursement for project exports will be 48 months from the scheduled completion date of the contract and September 13, 2016 in case of supply contracts.

A. P. (DIR Series) Circular No. 36, dated January 05, 2011Exim Bank’s Line of Credit of USD 30 million to the Government of the Republic of Cote d’lvoire

Exim Bank has made available, subject to certain terms and conditions,

From RBIContributed by : CA. Gaurang Gandhi

to the Government of the Republic of Cote d’lvoire a Line of Credit of US $ 30 million for financing eligible goods and services including consultancy services from India for Rice Production Programme in Cote d’lvoire. Eligible goods and services including consultancy services of the value of at least 85% of the contract price have to be procured from sellers in India, while the remaining 15% of the goods and services (other than consultancy services) may be procured from sellers outside India.

The last date for opening of Letters of Credit and Disbursement for project exports will be 48 months from the scheduled completion date of the contract and March 30, 2016 in case of supply contracts.

A. P. (DIR Series) Circular No. 37, dated January 05, 2011Exim Bank’s Line of Credit of USD 5 million to the Government of the Republic of Senegal

Exim Bank has made available, subject to certain terms and conditions, to the Government of the Republic of Senegal a Line of Credit of US $ 5 million for financing eligible goods and services including consultancy services from India for supply of medical equipments, furniture and other accessories to four hospitals in Senegal. Eligible goods and services including consultancy services of the value of at least 85% of the contract price have to be procured from sellers in India, while the remaining 15% of the goods and services (other than consultancy services) may be procured from sellers outside India.

The last date for opening of Letters of Credit and Disbursement for project exports will be 48 months from the scheduled completion date of the contract and March 14, 2016 in case of supply contracts.

A. P. (DIR Series) Circular No. 38, dated January 10, 2011Exim Bank’s Line of Credit of USD 25 million to the Government of the Republic of Mozambique

Exim Bank has made available, subject to certain terms and conditions, to the Government of the Republic of Mozambique a Line of Credit of US $ 25 million for financing eligible goods and services including consultancy services from India for rural electrification of Cabo Delgado, Manica and Niassa Provinces in Mozambique. Eligible goods and services including consultancy services of the value of at least 85% of the contract price have to be procured from sellers in India, while the remaining 15% of the goods and services (other than consultancy services) may be procured from sellers outside India.

The last date for opening of Letters of Credit and Disbursement for project exports will be 48 months from the scheduled completion date of the contract and July 04, 2016 in case of supply contracts.

A. P. (DIR Series) Circular No. 39, dated January 21, 2011Exim Bank’s Line of Credit of USD 213.31 million to the Government of the Federal Democratic Republic of Ethiopia

Exim Bank has made available, subject to certain terms and conditions, to the Government of the Federal Democratic Republic of Ethiopia a Line of Credit of US $ 213.31 million for financing eligible goods and services including consultancy services from India for development of sugar industry in Ethiopia. Eligible goods and services including consultancy services of the value of at least 75% of the contract price have to be procured from sellers in India, while the remaining 25% of the goods and services (other than consultancy services) may be procured from sellers outside India.

The last date for opening of Letters of Credit and Disbursement for project exports will be 48 months from the scheduled completion date of the contract and November 30, 2016 in case of supply contracts.


A. P. (DIR Series) Circular No. 40, dated January 25, 2011Participation by Full Fledged Money Changers (FFMCs) and Authorised Dealers Category-II (ADs Category-II) in the Currency Futures and the Exchange traded Currency Options markets

This Circular permits FFMCs and the ADs Category-II [which are not Regional Rural Banks (RRBs), Local Area Banks (LABs), Urban Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs)], that have a minimum net worth of Rs. 5 crore, to participate in the designated currency futures and currency options on exchanges recognised by the Securities and Exchange Board of India (SEBI) as clients only for the purpose of hedging their underlying foreign exchange exposures.

Sr. No. Name of the Publication - Books / CDs / Papers Price ` Postage `

1 Harmful tax competition An Emerging Global Issue 100 25

2 CD on the discussions conducted at the 39th RRC 2006 by various paper writers 100 20

3 Right to Know The Right to Information Act, 2005 (Pack of 10 booklets)(Cheque to be drawn in favour of ‘BCAS Foundation’ in case of Sr. no. 3 only)

50 15

4 Challenges of Change - Always ahead Diamond Jubilee Conference Paper 125 25

5 International Tax & Conference 2009, Lavasa Members

Non-Members700800

100100

6 Video DVD of the Panel Discussion held on 7.8.2010 on Service Tax on Builders and Developers 350 20

7 Papers discussed at the International Tax & Finance Conference 20101) Cross Border Taxation of Partnership – CA. Hitesh Gajaria2) Intellectual Property Rights – Structuring and Taxation – CA. Pranav Sayta3) Case Studies on International Taxation – Panel Discussion – CA. Vispi T. Patel4) Concept of Beneficial Ownership – CA. Nitin Karve5) Foreign Tax Credit….. time to make some choices – CA. Ketan Madia6) Transfer Pricing – CA. Shikha P. Gupta7) Case Studies on International Taxation – Panel Discussion – CA. Mukesh Butani

MembersNon-Members

500600

100100

8 CD of Study Material of Seminar on NBFCs (Including audit aspects 350 20

9 BCA Journal CD from April 2000 to March 2008Members

Non-Members400500

2020

10 Service Tax(Revised and Updated up to November 2010) Goods Transport Agency Services 50 30

11 44th Residential Refresher Course Papers1) Case Studies in Taxation – Adv. Saurabh Soparkar2) Recent Judgments in Direct Taxes – CA. K. C. Devdas3) Bank Audit – Opportunities and Concerns – CA. Mukund Chitale4) Case Studies in International Taxation – CA. Geeta Jani5) Case Studies in Service Tax – CA. Sunil Gabhawalla6) IFRS – Recent Developments – CA. Khurshed Pastakia7) Capital Gains – Some Current Issues – CA. Pradip Kapasi

350 100

* Postage Within Mumbai `60

BCAS Publications for Sale

The Trustees of BCAS Foundation acknowledge the following contributor who has contributed Rs. 5000/- or more to the BCAS Foundation during the period of November 2010 to January 2011. We are thankful for the support.

1. CA. P. N. Shah Rs. 25,000

Our Contributors


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Registered with the Registrar of Newspapers for India under R.N. 68365/98 Licensed to post without prepayment : Licence no. MR/Tech/WPP-158/South/09-11.

Regd. No. MH/MR/South-88/2009-11Posted at Mumbai Patrika Channel Sorting Office, Mumbai-1

Study Circle/Group Internal Audit Studies

Day, Date & Time Friday, 18th February 2011, 6.15 p.m.

Subject Estimation of Fees for New Internal Audit Assignments

Speaker CA. Nandita Parekh

Convenors • CA. Kinjal Shah• CA. Smita Acharya

* Restricted to members of that particular Study Circle only.

Forthcoming Study Circle MeetingVenue: Gulmohar Hall, BCAS

BCAS Suburban Study Circle

Date Day Topic Speaker

19-02-2011 Saturday Issues in CENVAT credit

CA. Sunil Gabhawalla

19-03-2011 Saturday Important Judgments under Transfer Pricing

CA. Nihar Jambusaria

Venue : Directi Internet Solutions Pvt. Ltd., Direct-I-Plex, Old Nagardas Road, Opp. Wilson Pens, Near Andheri East Subway, Andheri (East), Mumbai – 400069

Time : 5.00 p.m. to 7.00 p.m.

Forthcoming Study Circle MeetingsVenue: Gulmohar Hall, BCAS

Please note that the Indirect Tax Study Circle meeting scheduled to be held on 28.01.2011 has been rescheduled as per details below

Study/Circle Group Indirect Tax Laws*

Earlier Day & Date Friday, January 28, 2011

Rescheduled Day, Date & Time :

Monday, February 21, 2011 at 6.15 p.m.

Subject Recent issues under Import of Service

Group Leader CA Girish Raman

Chairman Advocate Bharat Raichandani

Convenors •CA.RajkamalShah•CA.SuhasParanjpe

* Restricted to members of that particular Study Circle only.

Study/Circle Group Direct Tax Laws*

Day, Date & Time : Thursday, February 24, 2011 at 6.15 p.m.

Subject Taxability of Computer Software as Royalty under Income Tax Act, 1961

Group Leader CA. Ankit Shah

Chairman CA. Sanjeev R. Pandit (Past President, BCAS)

Convenors •CA.ChetanShah•CA.ManeshGandhi•CA.MayurKisnadwala

Please fill in the above form and send the same to the Society’s office along with requisite payment.Please mention your name and membership number on the reverse side of the local cheque/at par cheque/Demand Draft.Kindly note that the cash counter timings are from 10.30 a.m. to 5.30 p.m. on Monday to Friday and 10.30 a.m. to 1 p.m. on Saturday. The lunch time is 1.30 p.m. to 2 p.m. Members are requested to co-operate in this regard. Cancellation policy: Kindly note that no refund will be given in case of cancellation for any reason and no substitute will be allowed, once the enrolment form is submitted.

(Signature)

Name : ..................................................................................................................................................................................................................Address : ..............................................................................................................................................................................................................E-mail :..................................................... Mobile : .................................................... Tel. : ..................................... Fax : ..................................BCAS Memb. No. : .................................. Tel. (O) : ................................................... Tel. (R) : ............................... Fax : ...................................Choice of food (wherever applicable) .......... Jain Non-Jain Cash/Draft/ Cheque no. .................. Drawn on ............................................................................................. Bank,Dated ......................... for an amount of r........................................................ is enclosed.

Date : ................

STUDY COURSE : Study Group on International Tax Decisions r1,750 for members...................

WORKSHOP : Workshop on Practical Aspects of 26-02-2011 r2,000 for members................... Full Day Workshop on Valuation 19-03-2011 r2,400 for members.................

Five Important Articles of DTAAs r3,000 for non- members........... Under Indirect Tax Laws r3,600 for non-members..........

Two – day orientation workshop 25-02-2011 r1,050 for students..................... 2 day Workshop on Fair Value of 25-03-2011 r7,800 for members ................ specially designed for articled students Financial Instruments r9,300 for non-members .........

SEMINAR : Concurrent Audit of Banks 26-02-2011 r1,500 for members................... Full Day Seminar on Charitable Trusts 23-04-2011 r800 for members....................

r2,250 for non-members............ r1,000 for non-members..........

Combined Enrolment Form

Documents

10 BCASNewsletterBCAS Newsletter I February 2011 1 ... Mahendra Sanghvi Subject I Recent Developments in TDS Venue I Yogi Sabhagruha, Shree Swami Narayan Mandir, Dadar (East), Mumbai