15/- The Institute of July 2012 Chartered Accountants of ... Online Event Registration & Payment Visit For Seminar registration, enquiry contact 3980 2923 / 2922. Cheques should be

` 15/-per copy

The Institute ofChartered Accountants of India(Set up by an Act of Parliament)

WESTERN INDIACHARTEREDACCOUNTANTSNEWSLETTER

WESTERN INDIACHARTEREDACCOUNTANTSNEWSLETTER

July 2012VOL. 38 | No. 7

http.//wirc-icai.org

FoundationDay

For Online Event Registration & Payment Visit www.wirc-icai.org

For Seminar registration, enquiry contact 3980 2923 / 2922. Cheques should be drawn in favour of "WIRC OF ICAI" and sent to

WIRC Office, ICAI Bhawan, Cuffe Parade • R. No. 580, Aayakar Bhawan, Churchgate • RVG Extension Counter, Andheri (W) •

Mulund Reading Room, Mulund (W) • Dadar Reading Room, Dadar (E)

DATE PROGRAMME TIME VENUEFEES

`CPE

PG.

NO.

LectureMeeting on Cyber Crime

DAY & DATE THURSDAY,

19TH JULY, 2012

TOPIC & SPEAKER

Venue

Time

Fees

Chief Co-ordinators

J.S. LodhaAuditorium, ICAIBhawanCuffe Parade6.00 p.m. to8.00 p.m.Free

CA. Anil Bhandari 9821037605CA. Shardul Shah 9820287625(Regional Council Members)

Issues related to Cyber Crime - Adv. Sagar Rahurkar

CPE HRS02

JULY 2012 Western India Chartered Accountants Newsletter22

FORTHCOMINGEVENTS

31/08/2012 & 27th Regional Conference of WIRC 9.30 a.m. to 6.00 p.m. Hotel The Lalit Intercontinental, Andheri (E) 3150 / 12 4-501/09/2012 3450

20 & 21/07/2012 Two Day Workshop on Enabling Service Tax Practice 10.00 a.m. to 6.00 p.m. Thakur Seminar Hall, Thakur College of 2000 12 06Engineering, Kandivali (E)

21/07/2012 Seminar on Mutual Funds-Internal, Concurrent Audit & 10.00 a.m. to 6.00 p.m. J. S. Lodha Auditorium, ICAI Bhawan, Cuffe Parade 1000 06 06NAV Certification

21/07/2012 Regional Banking Summit 10.00 a.m. to 6.00 p.m. Y. B. Chavan Auditorium, Gen. J. B. Road, 1000 06 06Near Sachivalaya Gymkhana, Mantrayala, Mumbai

23,25,27/07/2012 1st Intensive Study Course on Service Tax 5.30 p.m. to 8.30 p.m. J. S. Lodha Auditorium, ICAI Bhawan, Cuffe Parade 3500 24 0701,03, 06,07, (Under New amended Law)08/08/2012

28/07/2012 Seminar on Overview of International Business Transactions 10.00 a.m. to 6.00 p.m. Hotel Kohinoor Continental, Andheri Kurla Road, Andheri (E) 1200 06 07

28/07/2012 Seminar on Risk Management-Is it Necessary 10.00 a.m. to 6.00 p.m. J. S. Lodha Auditorium, ICAI Bhawan, Cuffe Parade 1000 06 07

04/08/2012 Workshop on Systems Auditing for Chartered Accountants 10.00 a.m. to 6.00 p.m. J. S. Lodha Auditorium, ICAI Bhawan, Cuffe Parade 1000 06 08

11/08/2012 Seminar on Tax Audit and Documentation 10.00 a.m. to 6.00 p.m. J. S. Lodha Auditorium, ICAI Bhawan, Cuffe Parade 1000 06 08

11/08/2012 Seminar on Management Accounting & Business Finance 10.00 a.m. to 6.00 p.m. Hotel Sea Princess, Juhu Tara Road, Juhu 1500 06 09

4, 6, 8, 9, 11, 13 Intensive Study Course on Service Tax 5.00 p.m. to 8.30 p.m. Seminar Hall, All India Local Self Govt. Bldg, Juhu Lane 3350 24 0814/08/2012 Andheri (W)

8/9/2012 Full Day Seminar on Practical Aspects of Revised 10.00 a.m. to 6.00 p.m. J. S. Lodha Auditorium, ICAI Bhawan, Cuffe Parade 1000 06 09Schedule VI vis-a-vis Presentation of FinancialStatements (IAS-1) & IFRS Conceptual Framework

15/09/2012 Seminar on International Tax & Transfer Pricing 10.00 a.m. to 6.00 p.m. J. S. Lodha Auditorium, ICAI Bhawan, Cuffe Parade 1000 06 09

Students Section

19/08/2012 MICS for CA Final 10.00 a.m. to 6.00 p.m. J. S. Lodha Auditorium, ICAI Bhawan, Cuffe Parade 300 09

21 to 23/8/2012 Forex Derivatives and Valuation of Securities for CA 10.00 a.m. to 6.00 p.m. J. S. Lodha Auditorium, ICAI Bhawan, Cuffe Parade 900 09Final

Regular Coaching for CPT & IPCC from

16th July 2012 at :

STUDENTSCLASSESANNOUNCEMENT

STUDENTSCLASSESANNOUNCEMENT

N.M. College

Thakur HouseVile Parle (W), Mumbai

Akurli Road, Kandivali (E)

Contact: Mr. Vijay 39802923 | Ms. Pallavi 39802922

The Indian economy is facing challenging times, with slowdown ineconomic growth touching lowest levels in past nine years. The Indianrupee has been sliding down constantly to record lows against the USDollar. Inflation has been persistently high constraining the RBI fromreducing interest rates, which otherwise would provide an impetus topropel economic growth.However, in the midst of the sombre atmosphere, the Government hasstruck an optimistic chord by committing to change the perceptionabout “policy paralysis” and trying to live up to the famous quote,“when the going gets tough, the tough gets going.” Moreover, thevibrancy of the Indian democracy and a ready market of more than onebillion consumers, and that too a sizeable young population, makesIndia still an attractive market for foreign investors.According to a UN Annual Economic Report - Indian economic growthis expected to remain robust in 2012-13, despite likely headwinds ofdouble-dip recession in Europe and the US. I am sure that India willemerge stronger and better from its current travails, for which it isimportant that we CAs strengthen the efforts of our Institute inenabling our country grow strong and thus fulfill the objective of ICAIbeing a “Partner in Nation Building.”

The new Service Tax system has been introduced based on a list of 38 exemptions, rather than the previous list of 119 explicitly taxedactivities. Under this regime, Service Tax will be levied on all servicesnot included in the exemption list. This is an important change forbusinesses engaging in or utilizing services in India, which is anindication that the road is being made clear for the introduction of theproposed Goods and Services Tax, which is expected to radicallychange and rationalise the tax system.During the last month, I alongwith some of my colleagues in theRegional Council had the opportunity to visit quite a few Branches likeAnand, Jamnagar, Rajkot and Ahmedabad in Gujarat. We were veryimpressed with the various activities and programmes undertaken bythese Branches for the benefit of the members and students. The NasikBranch recently held a Residential Refresher Course for its Memberswhich was much appreciated by Members in that region.During the last month, there were several seminars, workshops andconferences, which WIRC had organised. However, the one conferencethat created a record was the ‘2nd All Region Conference’ which wasorganised at Baroda. This Conference was the first in the history of ICAI,wherein the President of ICAI, Chairmen of all five Regions and morethan 950 delegates attended. This successful Conference was hostedby the Baroda and Nagpur Branches and we appreciate theircontribution in organising this historic Conference.The National Tax Conference in Jamnagar and the National StudentConference in Vasai were both well attended and Members weresatisfied with the outcome. The Maharashtra Tax Convention washosted by the Pimpri Chinchwad Branch was also well received bymembers.The Residential Refresher Course organised by the CMII of ICAI hostedby WIRC at Goa, also witnessed good participation. On the sidelines ofthis RRC, the Chairman of the CMII of ICAI, WIRC and Goa Branch with other members held meeting with the Goa Chamber of Commerce andIndustry, with an objective to forge good relationship and betterunderstanding for mutual benefit.The CA Foundation Day celebrations on July 1st took place withenthusiastic participation by members. The four fold programme forspreading Green Awareness, Social Service, Health and Financecomprising of tree plantation drive, blood donation, stressmanagement and investor awareness saw contributions made bymembers in large numbers. This Foundation Day also saw WIRC takeone step further and distribute free medicines as part of its social

responsibility.WIRC, in its constant endeavour to provide better services forMembers, has worked out an arrangement with Tata Docomo, toprovide tailor made and exclusive packages for the benefit of CAmembers and students which in the days to come will see a lot ofbenefit accruing to the members and students. The details of the sameare presented elsewhere in this issue.On 6th June, there was another feather in the cap of ICAI with thebhoomi pujan of a brand new “ICAI Bhawan”, at Aurangabad whichwhen completed would be again dedicated to the service of theNation.We, at WIRC are glad to inform the members about some majorprogrammes that are on the horizon. One is the Regional BankingSummit in July and of course, the mega event, being the 27th RegionalConference, which is scheduled towards the end of August. Thedetailed announcement is in the subsequent pages of this issue. In adeparture from the past, you would see that this edition of theRegional Conference will witness an integration of Industry,Technology and Financial Services with separate tracks for each streamapart from the conventional knowledge tracks. Members arerequested to participate in these important events of WIRC and gainimmense benefit.In yet another path breaking move, WIRC created history again thismonth, by being the first Region in ICAI to ideate, conceptualise andimplement ‘Video Profiling’ for the benefit of members and evenstudents. This unique initiative of WIRC was set in motion at the worthyhands of CA Jaydeep Shah, President, ICAI. I urge our Members andStudents to visit www.wirc-icai.org and take advantage of this uniqueinitiative.ICAI has been established for more than 60 years. It should be nosurprise that there are Members today who have been in the service ofthe profession and the Institute for the same period, as well. On theFoundation Day, WIRC took the initiative tofelicitate these veterans who have completed 60years of Membership. These Members are aninspiration to all of us and I pray that we can allcontinue to serve the profession with the samededication and fervor displayed by theseesteemed Members.

The spirit and determination of thesemembers remind me of the famouspoem, ‘Indomitable Spirit’, by Dr.A.P.J. Abdul Kalam who wrote,“Courage to reach my goal,courage to defeat the powerfulforce and succeed; With couragein my mind, indomitable spiritengulfed me, I regained lostconfidence, Strength came backto me, I reached the desti-nation, my mission”.

With warm regards,

CA Durgesh Kabra

Dear Colleagues,

CA. Durgesh Kabra, Chairman CA. Jay Chhaira, Vice-ChairmanCA. Anil Bhandari, Secretary CA. Dinesh Gandhi, Treasurer

OFFICE BEARERS

Editor: CA. Durgesh Kabra Joint Editor: CA. Anil Bhandari

CA. Sanjeev Lalan • CA. Shriniwas Joshi • CA. Mangesh Kinare • CA. Neel MajithiaMembers

EDITORIAL BOARD

Page 2

Page 11

Page 11

Page 13

Page 16

Page 20

Forthcoming EventsForthcoming Study Circle MeetingsForthcoming Branch MeetingsBulletin BoardLaw UpdatesRecent Judgements


CHAIRMAN’sCOMMUNICATION

th27 REGIONAL CONst st31 August & 1 September, 2012 at

Hotel The Lalit Intercontinental, Andheri (E)Time 8.00 a.m. to 6.00 p.m. (Reg. 8.00 a.m. to 9.00 a.m.)

Integrated with Industry, Technology

Session Chairman –CA. T. N. Manoharan,Past President, ICAI

Transfer Pricing for Domestic Transactions - CA. S. P .SinghBusiness Restructring and AntiA v o i d a n c e P r o v i s i o n -CA. Ketan Dalal

Session Chairman –Eminent Personality

Cross Border Transactionsof Services.Overlapping in VAT and ServiceTax – CA. SunilGabhawalla

Session Chairman –CA. M. M. ChitalePast President, ICAI

Real Estate - AccountingIssues • Is India Ready for FairMarket Value ? – CA. P.R.Ramesh

Session Chairman –CA. Dilip J. Thakar

Issues in Valuation of Sharesunder FEMA - CA. Sujal Shah

Inbound FDI and FEMA Policy -Shri Rajendra Prasad

K1:

K2:

K3:

K4:

KNOWLEDGE TRACK (K)

T1:

T2:

T3:

T4:

SMEs should they invest in ERP •When • Which • Assessing ERP Implementation Readiness and Value Creation through ERPSelection and Implementation of ERP - Challenges and OpportunitiesEminent Speaker

Open Source Softwares & Applications • Can Companies optimise Licences Cost for Solution Deployment • Mapping Business Needs to Open source Applications– ShriA.V. Ramesh Kumar JGM, ICICI Bank

Cloud Applications - Risks and Benefits –

Systems AuditBusiness View - Opportunities, Need and Value in SystemsAudit for Business & Auditors –Shri Prem Chopla, GM - DIT, RBIHow to Start Systems Audit Practice - Chartered Accountants Perspective

Next Generation Security Operation Centre Concepts - Local & Cloud Environment– Shri Sunil Dhaka JGM(CISO) ICICI Bank

TECHNOLOGY TRACK (T)

F1:

F2:

F3:

F4:

PE/VC- Funding for SME • Funding for Real EstateShri Dhanpal Jhaveri -Partner & CEO - Everstone Capital Advisors

PE/VC - Regulatory,Taxation, Post InvestmentIssues and Exit Issues • How to prepare and pitch to PE/ VC FundsShri Carlton Perira, Managing Director, Tano India Advisors Pvt Ltd.

Angel Funding – Structured and Issues Mezzanine EquityShri Prashant ChokseyCo founder Mumbai Angels

Restructuring Loans of Corporate – BankersPerspective • Structured ProductsShri M. Narendra, CMD Indian Overseas BankShri Gopal Mahadevan CFOand Executive Vice President Thermax

Friday, 31st August, 2012

Discover the Difference -

Address by CA. Jaydeep Narendra Shah, President, ICAI &CA. Subodh Kumar Agarwal, Vice-President, ICAI

FINANCIAL TRACK (F)

I1:

I2:

I3:

I4:

Infrastruture - Long TermHorizon for InvestmentGovt. Policies/Initiatives,Challenges and OpportunitiesEminent Speaker

Is Maharashtra still an Investment destination?Shri Ratnakar Gaikwad*(IAS) Retd. Chief Secretary, Govt of Maharashtra

Logistics • Supply Chain Govt. Policies/Initiatives,Challenges and OpportunitiesEminent Speaker

Tourism - Will India Catchup?Govt. Policies/Initiatives,Challenges and OpportunitiesEminent Speaker

INDUSTRY TRACK (I)

Keynote 1 : Chartered Accountants •Partners in National Building

Keynote 2 : Economic Uncertainties "Are we still under the Weather”? Shri Anand Rathi, Chairman, Anand Rathi Financial Services Ltd.


FERENCE OF WIRC

Fees ` 3,150/- before 31st July, 2012 & ` 3,450 after 31st July, 2012(inclusive of course material, breakfast & lunch)(Please add ` 250/- towards CA Benevolent Fund as Voluntary Contribution)

& Financial Services Tracks to be held on

Session Chairman –CA. Sunil TalatiPast President, ICAI

Complexities in Taxation ofDividend - Section 2(22)CA. Kishore Karia• Issues Under Sec 195 -CA. Padamchand Khincha

Session Chairman –Eminent Personality

GST - Way Forward - • Service Tax -Negative List with Positive Approach! - ShriSampath Thirumalai

Session Chairman –CA. N. P. SardaPast President, ICAI

Risk Management andInternal Audit CA. VinodKumar, Chief Audit and Riskofficer & Head Business TataChemicals• Issues in Accounting Standard– an Integrated Approach – SMEprespective.CA. Amarjit Chopra, PastPresident, ICAI

Session Chairman –CA. Gautam DoshiGMD, ADAG

Panel Disscussions - Is therean impact of Inter-nationalAffiliation on Domestic Firms - CAMitil Chokshi • Is Industrybetter than practice? - CA JayrajSheth • LLP - Way forward forCA? - CA. Shariq Contractor •Have we been able to movetowards Value Added Services asagainst Compliances? - CA SunilGoyal • Are we really ready tochange our mindset forconsolidation? CA. JeenendraBhandari • Will rotation ofAuditors Work?- CA Milin Mehta

K5:

K6:

K7:

K8:

T5:

T6:

T7:

T8:

Functional Testing ofSoftwares • Can CharteredAccountants Add Value Role &Opportunities of CharteredAccountants in Software Testing- Tools and TechniquesCA. Abhay Gupte

Efficiency through technology and automation • integration of various tools and gadgets • PracticeManagement - Utilization for Technology Tools, Gadgets and Applications • PracticeEnhancements - Applications provided by CA InstituteEminent Speaker

Fraud & Forensic AuditCyber Law - Role of Chartered AccountantsForensic Audit - Available Tools& TechniquesCA. Chetan Dalal

CAAT Tools & PracticesAudit in the Digital Environment - Addressing ChallengesPanel Discussion - Role of IT in Practice ManagementEminent Speaker

F5:

F6:

F7:

Alternate Funding Options - other than Banks • Financial Analytics for Strategic Decision MakingShri D. Sarkar, CMD Union Bank of IndiaShri Conrad D' SouzaMember Executive Management, HDFC Ltd.

Credit Rating for SME - How Determined?Eminent Speaker

Panel Discussion- BSE- SME Is it a good tool to raiseresources? • Do technicals really work in this market? • Impact of Eurocrisis andIndian Economy on CapitalMarket • Which Sectors havepotential for mid to long term? • How to create Wealth? • Is the concept of Long term Investment still relevant?Eminent Panelist

I5:

I6:

I7:

I8:

Alternative Energy - Nation BuildingGovt. Policies/Initiatives,Challenges andOpportunitiesCA. Suresh PrabhuFormer Union Minister of India

Mumbai A Financial Hub - A Necessity ?Eminent Speaker

Real Estate - Govt. Policies/Initiatives,Challenges and OpportunitiesShri Chandrashekhar Prabhu Former Minister for Housing Govt. of Maharashtra

IT/ITES - Is BPO/KPO for Chartered Accountants?Govt. Policies/Initiatives,Challenges and OpportunitiesShri Susir Kumar, ExecutiveChairman SERCO, Global

CPE HRS12

Saturday, 1st September, 2012

- A World of Opportunities

KNOWLEDGE TRACK (K) TECHNOLOGY TRACK (T) FINANCIAL TRACK (F) INDUSTRY TRACK (I)

Keynote 1 : Why does only America have Entrepreneurs with vision or is it better marketing ? Is Facebook worth 100 Billion

Keynote 2 : Are we ready for the NEXT GENERATION


*Awaiting Confirmation

FORTHCOMINGEVENTS

Two Day Workshop on Enabling Service Tax PracticeCPE HRS

12DAYS & DATES FRIDAY, 20TH JULY & SATURDAY,

21ST JULY, 2012

TOPICS SPEAKERS

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators

Thakur Seminar Hall, Thakur College ofEngineering, Kandivali (E)10.00 a.m. to 6.00 p.m.(Registration & Breakfast 9.00 a.m. to 10.00 a.m.)` 2,000/- (inclusive of course material,breakfast & lunch) (Please add ` 100/- towardsCA Benevolent Fund)CA. Dhiraj Khandelwal 9867642684CA. Vishnu Agarwal 9324544607(Regional Council Members)CA. Manoj Dak 9820913692CA. Bhupesh Mody 9769743727CA. Pawan Gupta 9323591833CA. Vidhyut Jain 9892414386

20/7/2012

Definition of service and its taxability CA. Rajiv LuthiaPlace of provision rules (Import and exportof service rules )Concept of Negative List and Exempted CA. Girish RamanServices Tax Liability under reverse charge21/7/2012

Point of taxation rules CA. Sunil GabhawallaValuation of Taxable Services CA. Bharat ShemlaniStatutory Compliances like registration , CA. Manish Gadiafiling of returns , assessment procedure ,penalty provisions CENVAT Credit

Jointly with Borivali Kandivali (East) CPE Study Circle

JULY 2012 Western India Chartered Accountants Newsletter

Seminar on Mutual Funds -Internal, Concurrent Audit &NAV CertificationCPE HRS

06DAY & DATE SATURDAY, 21ST JULY, 2012

TOPICS SPEAKERS

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators

J. S. Lodha Auditorium, ICAI Bhawan, Cuffe Parade

10.00 a.m. to 6.00 p.m.

(Registration & Breakfast 9.00 a.m. to 10.00 a.m.)

` 1,000/- (inclusive of course material,breakfast & lunch) (Please add ` 100/- towardsCA Benevolent Fund)

CA. Shardul Shah 9820287625CA. Ashok Jain 9833512888(Regional Council Members)

CA. Y. R. Desai 9820448365CA. Mukesh Gilda 9930406677CA. Vinay Mulye 9820140710CA. Mahesh Madkholkar 9820075966

Inaugural and key note address

Valuation of Assets, Inter Scheme Mr. Sahil Malik (AGM-SEBI)Transfers & Inspection Observations

Business Dynamics - Changing paradigm Shri Ashok Suvarana,CEO Birla Sunlife Mutual fund

MF - Recent Regulatory changes CA. Vishal Shah

Concurrent Audit of MF Schemes CA. Viraj Londe

Process review of RTA & Custodians CA. Hasmukh Dedhia

CPE HRS06 Regional Banking Summit

An exclusive summit for the first time to have brainstorming sessions with seniormost bankers and CA members (Practice/Industry) on matters concerning ourprofessional engagements etc. to effectively pursue enormous opportunities in thecore field of Banking and long lasting networking between CAs and the Bankers.

DAY & DATE SATURDAY, 21ST JULY, 2012

TOPICS & SPEAKERS

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators

Y. B. Chavan Auditorium, Gen J. B. Road, NearSachvalya Gymkhana, Mantrayala, Mumbai10.00 a.m. to 6.00 p.m.(Registration & Breakfast 9.00 a.m. to 10.00 a.m.)` 1,000/- (inclusive of course material,breakfast & lunch) (Please add ` 100/- towardsCA Benevolent Fund)CA. Ashok Jain 9833512888CA. Dilip Apte 9930314856(Regional Council Members)CA. Pravin Kothari 9820190787CA. Chetan Jain 9930061260CA. Prakash Bhatia 9819900981CA. Navin Jain 9820001380

INAUGURATION & Guests of Honour:Shri. Rana Kapoor, CMD, Yes BankShri. Shailendra Bhandari, *CMD, ING Vysya BankCA. Jaydeep ShahPresident-ICAIFirst Session: Professional Opportunities In Banking Sector

EVERLASTING AREAS- Statutory Audit, concurrent Audit,stock audit, Project Finance etc.CA. Shailesh Haribhakti, Chairman, BDOEmerging Attractive Areas – FOREIGN EXCHANGE TRANSACTIONS – Verification, Certification of various transaction, Restructuring of Loanetc.CA. Mitil Chokshi, Past Chairman - WIRCPANEL DISCUSSION: Senior Bankers and Eminent CAs -Existing

Global Financial Scenario & Indian Banking System

Shri. J.B. Bhoria, Regional Director (Maharashtra & Goa), RBIShri. D. R. Dogra, MD & CEO, CARE Rating LTDModerator CA Akeel Master, Partner KPMG IndiaOther Eminent PersonalitySecond Session : Role of A Chartered Accountant from Banking

Perspective

How a CFO/Financial Executive of a organization can represent his organization to banks to RETAIN/SECURE facilities at the most attractive termsThird Session:

Project Finance , Working Capital and SME financeCA. Praveen Trivedi, Head SME Group-West, ICICI BankExport Finance – PSU bankerPanel Discussion- Opportunities for CasCA. Nilesh Shah, President, Corporate Banking, Axis BankShri. Rajat Monga, CFO Yes BankCA. Himanshu Vasa, Head-Internal Audit, Kotak Mahindra BankCA. Bharat Thakkar, VP- Morgan StanleyCA. Hardik Dhruv, VP- Bank of America & Merill LinchFourth Session - Special Session

Dr. K.C.Chakrabarty, Deputy Governor, RBIFifth Session

Credit Rating- A tool for better Interest pricingShri. PN Satheeskumar, CGM CAREJob opportunities in Banking Sector- Eminent Speakers-HR heads from Private/ Public Sector Bank / Foreign BankEminent Speakers-HR heads from Private/ Public Sector Bank / Foreign BankCA. Jatin Lodaya, Head Capital Management, Standard CharteredBankHR heads of Leading Banks in IndiaVarious Credit facilities specifically designedfor CAs’ PERSONAL NEEDS at the most attractive terms

26

FORTHCOMINGEVENTS

1st Intensive Study Course onService Tax (Under Newamended Law)

CPE HRS24

DAYS & DATES MONDAY TUESDAY WEDNESDAY FRIDAY

23/7, 6/8 7/8 25/7,1/8, 8/8 27/7, 3/8

TOPICS SPEAKERS

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators


5.30 p.m. to 8.30 p.m.(Registration 5.00 p.m. to 5.30 p.m.)

` 3,500/- (inclusive of course material,& refreshment) (Please add ` 100/- towardsCA Benevolent Fund)

CA Mangesh Kinare 9869070539CA Shardul Shah 9820287625(Regional Council Members)

CA. Priti Savla 9321426883CA. Vikas Vishwasrao 9892915272CA. Ramesha Shetty 9869504322

23/7/12– Monday

• Basic Framework• Service Tax Law, Act and Rules• Selective vs Negative approach CA. Bharat Shemlani• What is Service – definition, inclusions and

exclusions• Declared Service

25/7/12– Wednesday

• Negative List of Services [Section 66D] CA. Sunil Gabhawalla• Mega Exemptions & other Exemption

27/7/12– Friday

• Place of Provision of Service Rules, 2012• Person liable to pay Service Tax CA. A.R. Krishnan• Reverse Charge

1/8/12– Wednesday

• Principles of Interpretation [Sec 66F]• Valuation of services CA. S. S. Gupta• Abatement• Composition schemes

3/8/12– Friday

• Point of taxation Rules, 2011• Service tax registration, Issue of invoices, CA. Naresh Sheth

Service tax payments• Records and returns

6/8/12– Monday

• Cenvat credit rules as applicableto service providers CA. Rajiv Luthia

• Concept of ISD

7/8/12– Tuesday

• Summons• Investigation Adv. Bharat • Audit , Special Audit Raichandani• Show Cause Notice• Appeals

8/8/12– Wednesday

• Rectification • Interest• Penalties • Compounding of offences CA. Jayesh Gogri• Applicability of provision of Central Excise

Prosecution • Closing

Seminar on Overview ofInternational BusinessTransactionsCPE HRS

06DAY & DATE SATURDAY, 28TH JULY, 2012

TOPICS SPEAKERS

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators

Hotel Kohinoor Continental, Andheri Kurla Road,Andheri (East)10.00 a.m. to 6.00 p.m.(Registration & Breakfast 9.00 a.m. to10.00 a.m.)` 1,200/- (inclusive of course material,breakfast & lunch) (Please add ` 100/- towards CA Benevolent Fund)CA. Sunil Patodia 9820344085CA. Vishnu Agarwal 9324544607(Regional Council Members)CA. Dhiraj Lalpuria 9820719873CA. Deepali Jain 9890395652CA. Nitesh Agarwal 9323576702CA. Rakesh Khandelwal 8879287922

Dynamic of International Business Shri Ashish MehtaOverview of IFRS – Essentials CA. Raghava TirumalaForeign Exchange Laws in India CA. Sudha G. BhushanCase Study Merger and Acquisition CA. Nilesh Mody


Seminar on Risk Management –Is it Necessary?CPE HRS

06DAY & DATE SATURDAY, 28TH JULY, 2012

TOPICS

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators

J. S. Lodha Auditorium, ICAI Bhawan,Cuffe Parade

10.00 a.m. to 6.00 p.m.



CA. Anil Bhandari 9821037605CA. Dhiraj Khandelwal 9867642684(Regional Council Members)

CA. Milind Joshi 9930033939CA. Ankit Kapadia 9867876376CA. Amit Dedhia 9833203643

Market Risk - A Perspective Shri Arnab Chakravarthy, ICICI Bank

Credit Risk - Fundamentals, Shri Benjamin Frank, HDFC BankPractical Challenges andMethodologies

Operational Risk - Framework Shri Guntupalli Bharan, ICICI Bank

Integration of Forensic Risk Shri Jagdeep Singh, Management with EnterpriseRisk Management


FORTHCOMINGEVENTS

Workshop on SystemsAuditing forChartered AccountantsCPE HRS

06DAY & DATE SATURDAY, 4TH AUGUST, 2012

TOPICS SPEAKERS

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators


10.00 a.m. to 6.00 p.m.

(Registration & Breakfast 9.00 a.m.

to 10.00 a.m.)

` 1,000/- (inclusive of course material,breakfast & lunch) (Please add ` 100/- towards CA Benevolent Fund)

CA. Shardul Shah 9820287625CA. N. C. Hegde 9820423420(Regional Council Members)

CA. Nikhil Damle 9820170436CA. Lalit Bajaj 9867692321CA. Arun Prithwani 9820917280

Basics of systems auditing - Where does Mr. Afzal Ahmadone start Axis Bank

Auditing Operating System and Databases Mr. Prasad Gupte- Importance, Tools and Techniques Manager HDFC

Application Controls Mr. Sanjay BaneBasics of Networking & Vulnerability DGM, ICICI BankAssessment and Penetration Yogesh KhatriTesting - Tools and Techniques ED, White Hat School of

Technologies Pvt. Ltd.

Seminar on Tax Audit andDocumentationCPE HRS

06DAY & DATE SATURDAY, 11TH AUGUST, 2012

TOPICS SPEAKERS

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators


10.00 a.m. to 6.00 p.m.

(Registration & Breakfast 9.00 a.m. to

10.00 a.m.)

` 1,000/- (inclusive of course material,breakfast & lunch) (Please add ` 100/- towards CA Benevolent Fund)

CA. Ashok Jain 9833512888CA. Vishnu Agarwal 9324544607(Regional Council Members)

CA. Shivratan Singrodia 9892365985CA. Ankit Sanghavi 9820689003CA. Ketan Mamania 9820343953CA. Om Somani 9320206103

Clausewise Discussion on Clauses in CA. Mulesh SavlaForm No. 3 CD - Clausewise CA. Dharini Shahdiscussion

Standards on Auditing vis-a-vis Tax Audit CA. Naresh Kataria

Documentation for Tax Audit & CA. Abhay ArolkarPeer Review

}

Intensive Study Course onService TaxCPE HRS

24DAY & DATE

Fri Sat Mon Wed Thr

03/08/12 04/08/12 06/08/12 08/08/12 09/08/1211/08/12 13/08/12 14/08/12

Date Topics and Speakers

Seminar Hall, All India Local Self Govt. Bldg.,Juhu Lane, Andheri (West), Mumbai.5.00 p.m. to 8.30 p.m.(Registration 4.30 p.m. to 5.00 p.m.)` 3,350/- (inclusive of course material,nacks and Tea in all session) (Please add ` 100/- towards CA Benevolent Fund)CA. Mangesh Kinare 9869070539CA Neel Majithia 9820327660(Regional Council Members)CA. N M Bansal 9322338652CA. Manish Dedhia 9930883146CA. Kamal Dhanuka 9867215281

03/08/12 Inaugural• Basic Framework – ( Brief History, Service Tax Law, Act andRules, Selective vs Negative approach) • Section 64 andCharging Section [sec 66B] • What is Service – definition,inclusions and exclusions • Declared ServiceCA. A. R. Krishnan*

04/08/12 • Negative List of Services [Section 66D] • Exemption[Notification No. 12/2012-ST Dated 17-3-2012]• Other exemptions including threshold exemptionCA. S. S. Gupta

06/08/12 • Taxable Territory • Place of Provision of Service Rules,2012 • Person liable to pay Service Tax • Reverse ChargeCA. Girish Raman

08/08/12 • Cenvat credit rules as applicable to service providers• Concept of ISDCA Rajiv Luthia

09/08/12 • Point of Taxation Rules, 2011• Service tax registration• Service tax payments• Adjustment of excess payment of service tax• Issuance of Invoice• Filing of Service Tax return• Maintenance of RecordsCA Manish Gadia

11/08/12 • Principles of Interpretation [Sec 66F]• Valuation of services• Abatement• Composition schemesCA Sunil Gabhawalla

13/08/12 • Summons • Investigation, Audit, Special Audit • Show Cause Notice • Appeals • Recovery • Settlementcommission, Advance rulingAdv Vishal Agarwal

14/08/12 • Rectification of Mistake • Interest for late payment• Penalties(Non registration, Late payment or non-paymentof tax, Concealment or suppression, Delayed / non-filling ofreturn, Residuary penalties) • Compounding of offences• Applicability of provision of Central Excise• ProsecutionAdv. Prasad Paranjpe

*Subject to Confirmation

Jointly with J. B. Nagar CPE Study Circle

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators

FORTHCOMINGEVENTS

Seminar on International Tax &Transfer PricingCPE HRS

06DAY & DATE SATURDAY, 15TH SEPTEMBER, 2012

Topics Speakers

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators

J. S. Lodha Auditorium, ICAI Bhawan,Cuffe Parade10.00 a.m. to 6.00 p.m.(Registration & Breakfast 9.00 a.m. to 10.00 a.m.)` 1,000/- (inclusive of course material,breakfast & lunch) (Please add ` 100/- towardsCA Benevolent Fund)CA. Shardul Shah 9820287625CA. Shruti Shah 9892407988(Regional Council Members)CA. Gaurav Shah 9867978894CA. Poonam Joshi 9167513531CA. Jignesh Nagda 9930506033CA. Pravin Manudhane 9820136429

Inauguration and Keynote Shri L N Pant, Director ofAddress International Taxation

– 1, MumbaiTransfer Pricing – Applicability CA. Jiger Saiyato Specified Domestic TransactionsTransfer Pricing – Practical CA. KarishmaChallengesin Documentation, PhatarphekarCertification, Audits & LitigationInternational Taxation – CA. RadhakrishnaAmendments to Section 9, Rawal90, 195 and their implicationsInternational Taxation – Recent CA. Darpan MehtaControversies and Jurisprudence

Full Day Seminar on “PracticalAspects of Revised Schedule-VIvis-à-vis Presentation ofFinancial Statements (IAS-1)& IFRS Conceptual Framework”

CPE HRS06

DAY & DATE SATURDAY, 8TH SEPTEMBER, 2012

TOPICS SPEAKERS

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators


10.00 a.m. to 6.00 p.m.



CA. Parag Raval 9824339200CA. Dilip Apte 9930314856(Regional Council Members)

CA. Milind Joshi 9930033939CA. Surendra Surekha 9327475219CA. Hrishikesh Wandrekar 9892919239CA. Anil Bhomavat 9323243205

“Presentation of Financial Statements CA. Yagnesh Desai(IAS-1) and IFRS Conceptual Framework”

“Practical Aspects of Revised CA. Anand BathiyaSchedule – VI”


CPE HRS06 Seminar on

Management Accounting& Business Finance

DAY & DATE SATURDAY, 11TH AUGUST, 2012

TOPICS SPEAKERS

Venue

Time

Fees

Chief Co-ordinators

Co-ordinators

Hotel Sea Princess, Juhu Tara Road, Juhu

10.00 a.m. to 6.00 p.m.



CA. Vishnu Agarwal 9833310916CA. Neel Majithia 9820327660(Regional Council Members)

CA. Ramesha Shetty 9869504322CA. Vandana Dodhia 9820029281CA. Sudhir Chirania 9322213962CA. Hemant Maliwal 9699240842

Recent Developments in CA. Vinod JainFinancial Management

Role of CFO in an Organization CA. Arvind Agarwal

Time Value of Money Eminent Faculty

Infrastructure Funding: CA. SatishStrength and Weaknesses Maheshwariof Financial InstitutionalFramework

STUDENT SECTIONDAY & DATE SUNDAY, 19TH AUGUST, 2012

TOPIC SPEAKER

Venue

Time

Fees

Chief Co-ordinator

Student

Co-ordinators

J.S. Lodha Auditorium, ICAI Bhawan, WIRC

10.00 a.m. to 6.00 p.m.

` 300/- (inclusive of course material,breakfast & Lunch)

CA. Shruti Shah 9892407988(Regional Council Member)

Mr. Sanat Doshi 9819664790Mr. Chirag Dangi 9920100331Mr. Aman Khandelwal 9892657459

MICS for CA Final Prof. Jignesh Chheda

DAYS & DATES TUESDAY TO THURSDAY

21ST TO 23RD AUGUST, 2012

TOPIC SPEAKER

Venue

Time

Fees

Chief Co-ordinator

Student

Co-ordinators

J.S. Lodha Auditorium, ICAI Bhawan, WIRC

10.00 a.m. to 6.00 p.m.

` 900/- (inclusive of course material,breakfast & Lunch)

CA. Neel Majithia 9820327660(Regional Council Member)

Mr. Aman Khandelwal 9892657459Mr. Sanat Doshi 9819664790Mr. Ankush Kejriwal 9819998931

Forex, Derivatives and Valuation of Prof. Archana KhetanSecurities for CA Final


Note: All Convenors are requested to send their forthcoming programmes only on e-mail Id [email protected] at the end

of the preceding month for the period starting 20th of Next Month.

Date & Day Time Subjects Speaker(s) Venue Organised By / Convenor / Tel. No.

15/07/2012 8.45 a.m. Final Amendments in Service Tax CA. Manish Gadia Kohinoor Continental, J. B. Nagar, J. B. Nagar CPE Study Circle

Sunday Andheri (East) CA Kamlesh Kothari M: 9820083144

15/07/12 9.30 a.m. Latest amendments in IT Act & CA Neel Majithia SIMSR, Vidyavihar Chembur CPE Study Circle

Sunday its effects CA Asha Hariharan M: 9820207586

15/07/2012 Practical Application of Microsoft CA. Amit Kothari Kandivali Recreation Club, Near S.V.P. Malad Goregaon Cpe Study Circle

Sunday Excel in Professional Practice School, Shantilal Modi Marg, CA. Jignesh Savla M: 9820260070Kandivali (West), Mumbai

15/07/2012 9.30 am Recent development in TDS CA. Atul Suraiya Kirti College, Near Catering College, Veer Prabhadevi Dadar CPE Study Circle

Sunday 1.00 pm Savarkar Marg, Dadar (W), Mumbai CA. Harshal Agrawal M: 9833922549

17/07/2012 5:30 p.m. - Preparation of Financial CA. Kuntal P. Shah Ellisbridge CPE Study Circle

Tuesday 8.30 p.m Statements using EXCEL CA. Kartik Dave M: 9427525676

25/07/2012 5:30 p.m. - Practical aspects of Deemed Dividend CA. Satyapal K. Sadhwani Ellisbridge CPE Study Circle

Wednesday 8.30 p.m. u/s. 2(22)(e) of the Income Tax Act CA. Kartik Dave M: 9427525676

29/07/2012 9.30 a.m. Recent Amendments in CA. Rajiv Luthia Kirti College, Near Catering College, Veer Prabhadevi Dadar CPE Study Circle

Sunday Service Tax Law Savarkar Marg, Dadar (W), Mumbai CA. Harshal Agrawal M: 9833922549

3rd to RRC “The Dukes Retreat” at Pune-Mumbai Road, Matunga CPE Study Circle

5/08/2012 Khandala CA Atul Shahade M: 9821116850Friday toSunday

11/08/2012 5.30 p.m. Workshop on Service Tax - Recent Eminent Speaker Sarvodaya Hall,L. T. Road, Opp. Diamond Borivali (Central) CPE Study Circle

Saturday 9.00 p.m. Amendments - Part I Talkies, Borivali (W) CA. Manish Sheth M: 9769536260

12/08/2012 9.30 a.m. Workshop on Service Tax - Eminent Speaker Sarvodaya Hall,L. T. Road, Opp. Diamond Borivali (Central) CPE Study Circle

Sunday 1.30 p.m. Recent Amendments Part II Talkies, Borivali (W) CA. Manish Sheth M: 9769536260

24/08/2012 5.00 p.m. Revised Schedule VI CA. Sanjeev Maheshwari – Thane Mid Town CPE Study Circle

Friday 7.15 p.m. Continued Technical Session By Tally CA. Sarad Beria M: 9820508633

25/08/2012 5.00 p.m. PMSME Listing CA Shailesh Bathiya Kandivali Recreation Club, Shantilal Modi Kandivali CPE Study Circle

Saturday Road, Near S.V.P. School, Kandivali (W), CA Hiren Shah M: 9819091855Mumbai – 400067


FORTHCOMINGBRANCH MEETINGS

FORTHCOMINGSTUDY CIRCLE MEETINGS

BARODA

NAGPUR

GOA

PUNE

21st & 22nd 06.30 p.mFri., July, 2012 09.00 to National Practical Workshop Effective use of MS- Excel CA. Pathik Shah, ICAI Bhawan, Baroda3 Aug. 12 17.00 MS- Excel Ahmedabad

21st-22nd 5.00 pm Concurrent Audit of Banks28th -29th July21st July, 2012 WICASA ICON Award – – –

Distribution & Fun & Food Fete

21st July, 2012 6.15 pm Interactive Meet – Eminent Speakers ICAI Bhavan, Nagpur23rd July, 2012 8.30 am General Management Eminent Speakers ICAI Bhavan, Nagpur

and CommunicationSkills Course (GMCS)

28th July, 2012 3.00 pm Annual General Meeting Branch Premises, Goa

21st July, 2012 8.30 am to 6 pm Seminar on "Internal Audit in – ICAI Bhawan, BibwewadiReal Estate Industry and Recent Developments”

21st July, 2012 7 pm to 9 pm CFO Meet – Hotel Le Meridian, RBMRoad, Pune Station

23rd & 24th Career Counselling Programme –July, 2012 for Students & Parents4th & 5th Aug., 9 am to 6 pm Certificate Course on Audit of – ICAI Bhawan, Bibwewadi2012 Co-operative Banks & Societies4th Aug., 2012 9 am to 6 pm SAP Workshop (Only 40 Seats) – MCCIA, ICC Trade Tower,

S. B. Road, Pune18th Aug., 2012 9 am to 6 pm Seminar on TAX Audits – YASHADA, Baner Road


FORTHCOMINGBRANCH MEETINGS

AHMEDABAD : CA Day Celebration on 1st July 2012 . Seen L-R: CA. SubodhKedia, CA. Jainik Vakil, Branch Chairman, Hon’ble Chief Minister of Gujarat,Shri Narendra Modi, CA. AniketTalati, CA. Dhinal Shah, CCM.

AMRAVATI: Group photograph taken during the Workshop on FinancialReporting Practices held on 22nd June 2012.

GOA:Inauguration of Residential Refresher Conference held from 8th to 10thJune at Goa. L to R: CA. Naveen Daivajna, CA. Anup Borkar, CA. VirendraPrabhudesai, Branch Chairman, CA. Shriniwas Joshi, Past Chairman, WIRC,CA. Kiran Kharangate, CA. Ashish PrabhuVerlekar.

CA. Mahesh P. Sarda, CCM, lighting the traditional Lamp at theJAMNAGAR: Inauguration of Two Days National Tax Convention held on 23rd& 24th June, 2012. L to R: CA. Dhinal Shah, CCM & Vice-Chairman Direct TaxesCommittee, CA. Umesh Ravani, Branch Chairman, CA. Subodh Kumar Agrawal,Honorable Vice-President, ICAI, CA. Mahesh Sarda, CCM and CA. KamleshRathod.

KOLHAPUR: National Workshop on Financial Reporting Practices – 15thJune, 2012. L to R: CA. Lalit Bajaj, Faculty, CA. Imran Mulla, CA. SanjeevMaheshwari CCM, CA. Anil Jadhav, Branch Chairman, CA. Girish Mulye,CA. Sanjay Sane.

NAGPUR:Kewaltani, CA. Sandeep Jotwani, CA. Julfesh Shah, RCM, CA. Satish Sarda,Chairman WICASA, CA. Swapnil Agrawal, Mr. Hitesh Agrawal, Mr. SaurabhRathkantiwar.

Branch Level Quiz Contest-13th June-2012. L to R: Mr. Sunny

NASHIK: Inauguration session of Residential Refresher Course (RRC) atMahabaleshwar. L to R., CA. Sanjeev Mutha, Branch Chairman, CA. DurgeshKabra, Chairman,WIRC, CA Jay Chhaira,Vice Chairman,WIRC CA. Praful Bardiya,CA. C.V. Pawar, RCM, CA.Vikrant Kulkarni.

PIMPRI CHINCHWAD :lamp at MaharashtraTax Convention, 2012 held on 16th & 17th June, 2012.L-R: CA. Sanjay Pawar, Pune Branch Chairman, CA. Baban Danagle, CA.Dinesh Gandhi, Treasurer, WIRC, CA. Shivaji Zaware CCM, CA. SuniielKarbhari, Branch Chairman, CA. Dilip Apte, RCM, CA. Chandrakant PawarRCM, CA.Vinod Inamdar, CA. Chandra Kumar Chhabra.

Mrs. Mohini Tai Lande, Mayor, PCMC lighting the

PUNE: Inauguration of Seminar on "Understanding the Revised Standardson Auditing" held on 23rd June, 2012

THANE : Inauguration of CA Women NRRC held on 23rd June, 2012. CA.Pankaj Parekh, CA. Nina Kapasi, Faculty, CA. Priti Savla, CA. Durgesh Kabra,Chairman, WIRC, Ms. Neelam Bhardwaj, Chief Guest, GM, SEBI, CA. SameerSarngdhar, CA. Shruti Shah, RCM, CA. Jaideep Sahasrabudhe, Branch Chairman,CA. Anand Gharpure, CA Mangesh Kinare, RCM, CA. Rajendra Chaplot.

L-R:


BULLETINBOARD

TOLL FREE HELP LINE:

Campus Placement Programme for Newly Qualified Chartered Accountants

–August-September, 2012

Invitation to Organisations/CA Firms

INITIATIVE FOR PROFESSION

INITIATIVE FOR MEMBERS:

The attention of members and students is drawn to thetoll-free helpline available to them at ICAI Bhawan, Cuffe Parade during officehours from Monday to Friday 1800 22 8009 to solve their queries.

The Committee for Members in Industry of the Institute organizes CampusPlacement Programme for newly qualified Chartered Accountants at variouscentres all over India. The scheme has been evolved to provide an opportunityboth to employing organisations as well as the young professional aspirants to meet and explore the possibility of taking up positions in Industry.

Campus Placement Programme will be organized at various centres viz.Ahmedabad, Bangalore, Baroda, Bhubaneswar, Chandigarh, Chennai,Coimbatore, Ernakulam, Hyderabad, Indore, Jaipur, Kanpur, Kolkata, Mumbai,Nagpur, New Delhi, Pune &Vapi.The schedule of programme is given below.

No. Centre Dates

1. Bengaluru,Chennai, Hyderabad and 13th,14th,16th,Kolkata 17th August, 2012

2. Ahmedabad, Jaipur and Pune 16th,17th,18thAugust, 2012

3. Mumbai, New Delhi 22nd , 23rd, 24th ,25th and 27thAugust, 2012

4. Baroda, Bhubaneswar, Chandigarh, 4th-5th September,Coimbatore, Ernakulam, Indore, 2012Kanpur, Nagpur andVapi

The programme would be organized in the months of August-September, 2012for the candidates who would be passing in the CA Final examination held in May2012 and also for others who are eligible.

Organisations intending to recruit Newly Qualified Chartered Accountantsthrough the scheme given below are requested to get in touch with Dr SurinderPal, Secretary , Committee for Members in Industry, Indraprastha Marg, NewDelhi - 110002, Tel. No. (011) 30110430/549 Email: [email protected] (or) Mr AjeetNath Tiwari, Placement Coordinator at Tel +91(11) 30110450 Email: [email protected](or) Ms Priyanka Sharma, Tel. No. (011) 30110548 Email: [email protected] on to www.cmii.icai.org or http://www.icai.org .

CA. Rajkumar S Adukia

Chairman, CMII

Committee for Members in Industry

Exposure Draft of Proposed SA 610 (Revised) Hosted for Comments: Incontinuation of our efforts towards convergence of Indian auditing standardswith its international counterpart IAASB of IFAC, ICAI has issued for comments anexposure draft of proposed Standard on Auditing (SA) 610 (Revised), Using theWork of Internal Auditors corresponding to the Revised ISA 610 issued by IAASB.Text of the exposure draft is available ICAI website.

Eligibility for PhD in University System: As the members of profession areaware that for pursuing the Doctorate of Philosophy (PhD) programme,Chartered Accountancy qualification was recognised in the University systemlong back by the Association of Indian Universities (AIU) vide the letter EV/II (56-A)/83, dated 20th March, 1984: ...graduates having passed their finalexamination of the Institute of Chartered Accountants of India, New Delhi, betreated to have completed a post graduate degree in Commerce or allieddiscipline for purpose of registration to Ph.D. Recently, the Indian Institute ofManagement (IIM), Shillong, has recognised our members as eligible to pursue their Fellowship Programme, equivalent to PhD. With this, so far 84 universitiesand 6 IIMs have recognised our qualification as eligibility criterion towardspursuance of the PhD programme. Further, the UGC has recently informed usthat the threshold limit of 55% marks in postgraduate examination is notapplicable to our members for enrolment to PhD programme.

Promoting Ethics: As corporate sector evolves in an environment of enhancedtransparency and accountability, the Chartered Accountants are required towork with independence and maintain highest integrity. They need to followlaws and regulations to maintain a very high level of self discipline and workwithin the code of ethics framework. The Code of Ethics calls for members tomaintain a level of self-discipline that goes even beyond the requirements oflaws and regulations. To this effect, in a recent initiative, the Ethical StandardsBoard, has released a brochure - ‘CA. Ethics Plus’ to promote Ethical Standardsamongst members.

ANNOUNCEMENT

4th July, 2012

ELECTIONS TO THE TWENTY SECOND COUNCIL AND TWENTY FIRST

REGIONAL COUNCILS

The next elections to the Council and the Regional Councils of the Institute ofChartered Accountants of India are scheduled to be held on 7th and 8thDecember, 2012 in cities having more than 2500 members and on 8thDecember, 2012 at all other places in terms of the provisions of Rule 21 of theChartered Accountants (Election to the Council) Rules, 2006 specified by theCentral Government. According to the provisions of clause (3) of Schedule 2 toRule 6 of the aforesaid Rules, a notice is required to be published giving thevoters in cities, having more than one polling booth located at differentaddresses, an opportunity to exercise their option to vote at a particular pollingbooth within that city.

Accordingly, an Announcement for Option for a particular Polling booth incities/towns like Mumbai, Kolkata and New Delhi having more than one pollingbooth located at different addresses has been hosted on the Website of theInstitute. For full details kindly visit the Institute’sWebsite www.icai.org.

(T. Karthikeyan)

Secretary and Returning Officer

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Foundation Day Celebrations 2012


7th Mile SurMera Tumhara

Around The World – A Journey



LAW UPDATES this sections have been clarified in order to remove any doubt regarding thereinterpretation.

The Board has clarified and directed that in case the assessment proceedings

have been completed u/s 143(3) of the Act before 1st day of April, 2012 and nonotice for reassessment has been issued prior to that date, then such casesshall not be reopened u/s 147/148 of the Act on account of the abovementioned clarificatory amendment introduced by the Finance Act, 2012.

It is also clarified that the assessment or any other order which stand validateddue to the said clarificatory amendment in the Finance Act 2012 would ofcourse be enforced.

DETERMINATION OF ARM’S LENGTH PRICE – INSERTION OF NEW RULE

10AB {207TAXMANN (ST.) 102}

The CBDT in accordance with power conferred by section 295 of the IncomeTax Act, 1961 vide Notification No.18/2012 dated 23/05/2012 insert the rule10AB and amends rule 10B of the IncomeTax Rule, 1962.

It inserts rule 10AB being other method of determination of Arm’s LengthPrice. It amends rule 10B which is in relation to determination of Arm’s LengthPrice u/s 92C of the IncomeTax Act, 1961. It amends rule 10B by inserting clause(f ) in sub rule (1).

The clause (f ) is as under“(f ) any other method as provided in rule 10AB”.

MVAT Act,2002

Notifications

(a) The Government of Maharashtra has issued Notification dated16.5.2012 under section 9(1) of the MVAT Act,2002 where by entries 5and 10 in Schedule D are amended.

(b) The Government of Maharashtra has issued two Notifications dated16.5.2012 under entries D(5)(a)/D-10(a) of the MVAT Act, whereby theareas for the said entries are notified.

(c) The Government of Maharashtra has issued Notification dated30.5.2012 under section 9(1) of the MVAT Act, whereby the time periodfor entry A-59 (regarding raisins and currants) has been extended upto31.5.2013.

(d) The Government of Maharashtra has issued Notification dated31.5.2012 under section 41(1) whereby the earlier notification dated6.12.2007 in respect of edible oil produced by ghani has beenrescinded.

MVAT Rules,2005

The Government of Maharashtra has issued Notification dated 1.6.2012whereby certain amendments are effected in MVAT Rules,2005. The majorchanges are in relation to Rules regarding returns for unregistered period, taxcollection at source, reduction in set off in relation to purchase of natural gasand preponement of date for filing Audit Report in Form 704 (it is preponed to30th November).

DIN Rules amended [www.mca.gov.in]

The MCA has issued Notification Nos. F. No. 2/1/2011-CLV and GSR-298(E)dated 28.05.2012 and 05.06.2012 respectively amending the Companies(Director Identification Number) Rules, 2006 effective from 29 May 2012 asunder :

• In DIN-1, the declaration / verification is replaced and will now be “(i) Thephotograph and document attached to the Form DIN-1 belongs to me. Ifurther confirm that all required documents have been duly attested byme or duly attested by either Public Notary or a Gazetted Officer of aGovernment and are attached to the Form DIN-1” apart from statementabout residential status as to whether resident of India or not.

• In DIN-4, the requirements now also include requirements/information inrelation to photograph of director/designated partner, residential status,verification as per Annexure-1 of DIN rules, verification as per Annexure- 2of DIN rules and statement about residential status as to whether residentof India or not. Also, the declaration / verification as per previous bullet isalso inserted to this form.

MAHARASHTRA VAT

(Contributed by CA. C. B. Thakar)

CORPORATE LAWS

(Contributed by CA. Jayesh Thakur)

DIRECT TAX

(Contributed by CA. Haresh P. Kenia &

CA. Deepak Lala)

RECONSTITUTION OF ADVISORY GROUP FOR INTERNATIONAL

TRANSACTION & TRANSFER PRICING IN DEPARTMENT OF REVENUE,

MINISTRY OF FINANCE {206TAXMANN (ST.) 156}

The office memorandum (F.No.500/54/2012 FTS-1) dated 03/05/2012 givesthe list of members which would comprise for “the advisory group forinternational taxation and transfer pricing” with the approval of competentauthority.

i. Revenue Secretary to the Government of India-Head of Advisory Group

ii. Chairman, Central Board of DirectTaxes, Department of Revenue-Member

iii. Director General of Income Tax (International Taxation), New Delhi-Member

iv. Joint Secretary (FT&TR-I), Department of Revenue - Member Secretary

v. Joint Secretary (FT&TR-II), Department of Revenue – Member

vi. Joint Secretary (TPL-I), Department of Revenue, Member

vii. Shri Som Mittal, NASSCOM, Member

viii. Shri P.Y Gurav, CII, Member

ix. Shri Dinesh Kanabar, FICCI, Member

x. Mr.Ved Jain, ASSOCHAM, Member

xi. Shri Mahesh P. Sarda, ICAI, Member

xii. ShriT.P. Ostwal, IFA India, Member

xiii. Shri Mukesh Butani, ICC India, Member.

RATE OF INTEREST ON PUBLIC PROVIDENT FUND ACCOUNT {206

TAXMANN (ST.) 159}

The Central Government vide Notification No. S.O.904(E) dated 25/04/2012notifies that the subscription made to the fund on or after 1st April, 2012 & thebalance at the credit of the Subscriber will bear the interest @ 8.8% p.a inpursuance of section 5 of the Public Provident Fund Act, 1968.

FINANCE ACT 2011 {207TAXMANN (ST.) 103}

The CBDT vide Circular No. 02/2012 (F.No.142/01/2012/S.O(TPL)) dated22/05/2012 gives the explanatory notes to the provision of the Finance Act2011 along with amendments at glance. The Finance Act 2011 as passed by theParliament, received the assent of the President on 8th April, 2011 & has beenenacted as Act No. 08 of 2011. This circular explains the substance of theprovision of the Act relating to DirectTaxes.

PROCESSING OF RETURNS OF ASSESSMENT YEAR 2011-12 – Section 143

OF THE INCOME TAX ACT, 1961 – ASSESSMENT – STEPS TO CLEAR

BACKLOG {207TAXMANN (ST.) 102}

The CBDT vide Instruction No.04/2012 (F.No.225/34/2011-ITA. II) dated25/05/2012 has decided to withdraw its earlier Instruction No.01/2012 issuedon 2nd February, 2012 – with immediate effect.

The following decisions has been taken in this regard :-

i. In all returns (ITR-1 to ITR-6), where the difference between the TDS claimand matchingTDS amount reported in AS-26 data does not exceed Rs. FiveThousands, theTDS claim may be accepted without verification.

ii. Where there is Zero TDS matching, TDS credit shall be allowed only afterdue verification.

iii. Where there are TDS claims with invalid TAN, the TDS credit for such claimsis not to be allowed.

iv. In all other casesTDS credit shall be allowed after due verification.

CLARIFICATION REGARDING REOPENING OF COMPLETED ASSESSMENT

{207TAXMANN (ST.) 129}

The CBDT vide Letter (F.No.500/111/2009-FTD-1 (PT)) dated 29/05/2012 hasissued certain clarification in the view of the Finance Act 2012 introducedcertain clarificatory amendments in section 2 clause (14), section 2 clause (47),section 9 and section 195 of the Income Tax Act, 1961 with retrospective effectfrom 01/04/1962 or 01/04/1976 whereby the meaning of various terms used in


Exit Policy for De-recognized/ Non-operational Stock Exchanges

[www.sebi.gov.in]

The SEBI has issued Circular No. CIR/MRD/DSA/14/2012 dtd. 30.05.2012revising the existing guidelines in respect of exit option to stock exchangeswhereby exchanges may seek exit through voluntary surrender of recognitionand where the annual trading turnover on its own platform is less than Rs. 1000crore, stock exchanges can apply to SEBI for voluntary surrender of recognitionand exit at any time before the expiry of two years from the date of issuance ofthis Circular. If the stock exchange is not able to achieve the prescribedturnover of Rs 1000 crore on continuous basis, or does not apply for voluntarysurrender of recognition and exit before the expiry of two years from the dateof this Circular, SEBI shall proceed with compulsory de-recognition and exit ofsuch stock exchanges, in terms of the conditions as may be specified by SEBI.Stock exchanges which are already de-recognised as on date shall make anapplication for exit within two months from the date of this circular. Uponfailure to do so, the de-recognized exchange shall be subject to compulsoryexit process. The guidelines also address matters relating to exit option toshareholders of exclusively listed companies, on stock exchanges seeking de-recognition and/ or exit and de-recognised stock exchanges.

KYC document for proprietary concerns - COP issued by ICAI

[www.rbi.gov.in]

The RBI has issued Circular No. RBI/2011-12/579DNBS(PD).CC. No275/03.10.42/2011-12 dated 29.05.2012 referring to its earlier Master Circular– ‘Know Your Customer’ (KYC) Guidelines – Anti Money Laundering Standards(AML) – ‘Prevention of Money Laundering Act, 2002. By that circular, NBFCswere advised that internal guidelines for customer identification procedure oflegal entities may be framed by them based on their experience of dealing withsuch entities , normal lenders prudence and the legal requirements as perestablished practices. In case of accounts of proprietorship concerns, it hasbeen decided to lay down criteria for the customer identification procedure foraccount opening by proprietary concerns. Apart from following the extantguidelines on customer identification procedure as applicable to theproprietor, NBFCs/RNBCs should call for and verify the following documentsbefore opening of accounts in the name of a proprietary concern :

i) Proof of the name, address and activity of the concern, like registrationcertificate (in the case of a registered concern), certificate/licence issuedby the Municipal authorities under hop & Establishment Act, sales andincome tax returns, CST / VAT certificate, certificate / registrationdocument issued by sales tax / service tax / professional tax authorities,licence issued by the registering authority like Certificate of Practiceissued by Institute of Chartered Accountants of India, Institute of CostAccountants of India, Institute of Company Secretaries of India, IndianMedical Council, Food and Drug Control Authorities, etc.

ii) Any registration / licensing document issued in the name of theproprietary concern by the central government or state governmentauthority / department. NBFCs/RNBCs may also accept IEC (ImporterExporter Code) issued to the proprietary concern by the office of DGFT asan identity document for opening of account.

iii) The complete income tax return (not just the acknowledgement) in thename of the sole proprietor where the firm’s income is reflected, dulyauthenticated/ acknowledged by the IncomeTax Authorities.

iv) Utility bills such as electricity, water, and landline telephone bills in thename of the proprietary concern.

Any two of the above documents would suffice. These documents should be inthe name of the proprietary concern.

Exemption from Mandatory Cost Audit Extended - SEZ/EPZ/FTZ/EOUs

Units [www.mca.gov.in]

The MCA has issued General Circular No. 11/2012 dated 25.05.2012 extendingthe exemption from mandatory cost audit to all units located in the specifiedzones such as Special Economic Zones (SEZs), Export Processing Zones (EPZs)and FreeTrade Zones (FTZs) and also to the 100% Export Oriented Units (EOUs),subject to the following:

• Exemption from mandatory cost audit will be available only to those unitsof a company that are either located in the specified zones or qualify as100% EOUs and not to all other units of the same company.

• There will be no exemption from maintenance of cost accounting recordsand filing of compliance report with the MCA in compliance with theapplicable Cost Accounting Records Rules.

• In case any regulatory body seeks cost data in respect of exempted units ofany industry, then all relevant units of such industry would be subject tocost audit in accordance with the provisions of applicable rules/orders.

LAW UPDATES• The DTA (domestic tariff area) sales in all such exempted units for each year

shall not exceed the permissible limits as per the policy in force. In casetheir DTA sales for any year exceeds the permissible limits, then theexemption from cost audit available to the unit shall stand withdrawn andthe unit would be subject to cost audit in accordance with the provisionsof applicable rules/orders starting with the year in which exemption stoodwithdrawn and for every subsequent year thereafter.

• If any such exempted unit either relocates outside the specified zones orlose 100% EOU status, then the mandatory cost audit would becomeapplicable from the year in which such change has taken place and forevery subsequent year thereafter.

Amendment to Central Government’s General Rules and Forms

[www.mca.gov.in]

The MCA has issued Notification No. F No 17/51/2012- CL V dated 31.05.2012replacing form 23AB (relating to statement containing salient features ofBalance Sheet and Profit and Loss Account as per section 219(1)(b)(iv)) with a new form 23AB.

Time in filing of annual return by LLPs extended [www.mca.gov.in]

The MCA has issued Circular No. 13/2012 dated 06.06.2012 stating that theMinistry has started the process of decentralization of the functions of theRegistrar LLP by authorizing respective ROCs to discharge the functions ofRegistrar LLP also on and from 11.06.2012. Consequently, the LLP system shallremain closed from 31.5.2012 to 10.6.2012. Also, as per the provisions ofsection 35 of the LLP Act, LLPs which do not file Form 11 within a period of sixtydays of the date of closure of their financial year are required to pay additionalfees. In order to avoid payment of additional fees by such LLPs due to closure ofthe system from 31.5.2012 to 10.6.2012, it has been decided to extend the timelimit prescribed under the provisions of section 35 of the LLP Act by 30 days. Inorder to have better understanding of the circular, it is clarified that the timelimit of 60 days shall be read as 90 days for filing of Form 11 by LLPs in respect ofthe Financial Year ending on 31.03.2012. This circular shall be effective from31.5.2012.

LLP Amendment Rules, 2012 [www.mca.gov.in]

The MCA has issued Notification No. F.No. 1/l/2011-CL-V dated 05.06.2012amending the LLP Rules 2009 as under :

• in case of incorporation, the individual who has given consent to act aspartner or designated partner shall file consent in Form-2 along with feeas mentioned in annexure-A to the LLp Rules

• the name of proposed LLP shall be reserved in case the “no objectioncertificate”is granted by the registered LLP or company

• where the name of the proposed LLP includes words like‘bank’, insurance”,and ‘banking’, “venture capital” or ‘mutual fund’ or business activityincludes the words like“bank”, insurance’, and‘banking’. venture capital’or“mutual fund’or such similar names, the approval of regulatory authorityshall be obtained at the time of application for incorporation or change ofname of an existing LLP, as the case may be

• in case of professional firm LLP, the approval of the council governing theprofession shall be obtained at the time of application for incorporationor change of name of an existing LLP, as the case may be.

• The filing fees for filing, registering or recording notice of appointment,cessation, change in name, address, designation of a partner ordesignated partner, intimation of Designated Partner IdentificationNumber and consent to become a partner or designated partner in Form 4would be Rs. 50

• The filing fees for an application for striking off name of defunct LLP underrule 37 would be Rs. 500.

With the above changes the respective forms have been changed accordingly.

SYNOPSIS OF NOTIFICATIONS, CIRCULARS & LETTERS

Hon’ble President of India has given assent to Finance Bill,2012 on 28th

May,2012.

CBEC vide Circular No.158/9/2012-ST dated 8th May,2012 has clarified thatsince the Point of Taxation in respect of 8 specified taxable services rendered

SERVICE TAX

(Contributed by CA. Rajiv Luthia)


LAW UPDATESby individuals/proprietary firms/partnership firms shall be the date of receiptof payment, service tax is required to be paid @12.36% in respect of invoicesraised before 1st April,2012 for which payment is received after 1st April,2012.The service provider may issue Supplementary Invoice to recover thedifferential amount of Service Tax which would be eligible as CENVAT Credit toservice recipient subject to fulfillment of various conditions prescribed underthe CENVAT Credit Rules, 2004.

Similarly, in case of taxable services where tax is required to paid by servicereceiver under Reverse Charge Mechanism, Service Tax would be required tobe paid @12.36% in respect of invoices raised before 1st April,2012 for whichpayment is made after 1st April,2012.

Central Government vide Notification No.16/2012-ST dated 29th

May,2012 has notified Service Tax (Settlement of Cases) Rules, 2012. The

salient provisions of these rules are as under:

The Rules have come into force w.e.f. 29th May,2012.

Application to be made in Form SC (ST)-1 in quintuplicate (5 copies)accompanied by filing fees of Rs.1,000/-.

Application & relevant documents to be verified & signed by specifiedauthorised person.

Additional amount of service tax accepted by the applicant to be depositedalong with Interest.

The Settlement Commission shall forward a copy of the application along withrelevant annexure & other documents while calling for a report U/s.32F (3) ofthe CE Act, 1944 from the jurisdictional CCE/CST.

Where the Settlement Commission orders attachment of property, it shallsend a copy of such order to the jurisdictional CCE/CST of the place where theapplicant owns any movable/immovable property or resides or carries on hisbusiness or has his bank account.

Commissioner, on receipt of such order, may authorise any subordinatedofficer not below the rank of Asst. Commissioner of CE/ST to take steps toattach such property.

The authorised officer shall prepare an inventory of the property attached &specify the description of such immovable property & the place where suchmovable property is lodged/kept and shall hand over a copy of the same to theapplicant/person from whose charge the property is attached.

The authorised officer shall send a copy of inventory to the CCE & SettlementCommission.

Any person making application for inspection of reports U/s.32J of the CE Act,1944 shall pay a fee of Rs.5/- per page for obtaining copy of the reports.

Central Government vide Notification No.17/2012-ST dated 29th

May,2012 has notified Service Tax (Compounding of Offences) Rules,

2012.The salient provisions of these rules are as under:

The Rules have come into force w.e.f. 29th May,2012.

Application for compounding to be made in prescribed Form to the Chief CCE(compounding authority) having jurisdiction of the place where the offencehas been committed. Such application can be made either before or after theinstitution of prosecution.

Where the offence has been committed at more than one place, theapplication to be made to Chief CCE having jurisdiction over such place wherethe service tax evaded is more than the others.

The compounding authority to examine the application after calling for areport from the jurisdictional CCE/CST (reporting authority) with reference tothe particulars furnished in the application.

Reporting authority to furnish such report within a period of 1 month or suchextended period allowed by the compounding authority.

Compounding authority may allow the application indicating thecompounding amount and grant the applicant immunity from prosecution orreject such application.

Compounding authority not to reject any application without mentioninggrounds of such rejection & without giving the applicant an opportunity ofbeing heard.

No application is allowed unless the service tax, penalty & interest are paid forthe case for which application for compounding has been made.

Applicant to pay the compounding amount within 30 days from receipt oforder allowing compounding & furnish the proof of such payment tocompounding authority.

No refund of compounding amount shall be allowed except where the courtrejects the grant of immunity from prosecution.

The applicant shall not claim, as of right, that his offence be compounded.

The prescribed compounding amounts are as follows:

Sr.No. Nature of Offence Compounding Amount

1) Knowingly evasion of payment From 10% to 50% ofof Service Tax (Section 89(1)(a)) Service Tax evaded

2) Availment & utilization of CENVAT From 10% to 50% of CENVATcredit without full or partial actual Credit wrongly availed &receipt of taxable service or utilizedexcisable goods (Section 89(1)(b))

3) Maintenance of false books of Rs. 50,000/- for 1st offenceaccounts or failure to supply to be increased by 100% forrequired information or supplying each subsequent offencefalse information (Section 89(1)(c))

4) Failure to pay any amount collected Upto 25% of the amount ofas service tax within 6 months Service Tax not depositedfrom the date on which such subject to minimum of 2%payment becomes due for each month of failure(Section 89(1)(d))

If a person has committed more than 1 offences and where the amount ofService Tax evasion & utilization of CENVAT Credit is same for all such offences,the compounding amount shall be higher of the amounts prescribed for suchoffences.

T h e c o m p o u n d i n g a u t h o r i t y m a y g r a n t t h e a p p l i c a n tunconditional/conditional immunity from prosecution for any offence if he issatisfied that the applicant has co-operated in the compounding proceedings& has made full & true disclosures of the facts regarding the case.

Such immunity shall stand withdrawn if such person fails to pay any sumspecified in compounding order within the time limit specified in order or failsto comply with any other condition subject to which the immunity wasgranted.

On withdrawal of such immunity, the provisions of the Act shall apply as if nosuch immunity has been granted.

The compounding authority may withdraw the immunity if he is satisfied thatsuch person has concealed any material particulars or had given false evidenceduring the course of compounding proceedings.

On withdrawal of such immunity, the applicant may be tried for the offence forwhich the immunity was granted or for any other offence that appears to havebeen committed by him and the provisions of the Act shall apply as if no suchimmunity has been granted.

Notifications:

Tariff:

Conditions for Mega power/Ultra Mega Power projects relaxed:

Notification No. 12/2012 dated 17.3.2012 provides exemption to variousproducts. Certain items are eligible for conditional exemptions. In case ofMega power projects and Ultra Mega power projects, exemption is availablefor specified products subject to issuance of certificate by specifiedauthorities. And in cases, where such certificate is provisional, security in theform of Fixed Deposit Receipt(FDR) is supposed to be furnished. BY way ofpresent Notification, the condition is relaxed and apart from FDR, even theBank Guarantee will be accepted as Security.

(Notification No. 28/2012-Central Excise dated 27.6.2012)

NonTariff:

Amended conditions for granting refund under Rule 5 of Cenvat Credit

Rules (CCR):

Some of the important conditions include:

• The amount of refund shall be lesser of the amount lying in balance as onthe date of making refund application or on the last date of quarter for whichthe refund has been claimed

CENTRAL EXCISE

(Contributed by CA. Jayesh Gogri)


LAW UPDATES

Revision in format for Annual return on Foreign Liabilities and Assets

reporting by Indian Companies

A.P. (DIR Series) Circular No.133 dated June 20, 2012

RBI had vide A. P. (DIR Series) Circular No.45 dated March 15, 2011 mandated allthe Indian companies which have received FDI and/or made FDI abroad (i.e.overseas investment) in the previous year(s) including the current year tosubmit the annual return on Foreign Liabilities and Assets (FLA) with RBI by July15 of every year.

RBI has not revised the form for this Annual Return on FLA which is nowrequired to be filled-in and validated in soft form (in .xls) and sent by e-mail [email protected] by July 15 every year. The revised form for Annual Return in excelis available at RBI website www.rbi.org.

For detail, refer circular available on RBI website at:

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7287&Mode=0

Reporting Platform for OTC Foreign Exchange and Interest Rate

Derivatives

FMD.MSRG.No.69/02.05.002/2011-12 dated June 22, 2012

RBI vide circular FMD.MSRG.No.67/02.05.002/2011-12 dated March 9, 2012,had advised that all inter-bank OTC foreign exchange derivatives transactionsshould be reported on a platform to be developed by the Clearing Corporationof India Limited (CCIL. The CCIL has since completed development of theplatform for reporting of USD-INR forwards, FX swaps and FCY-INR options andaccordingly it has been decided that the platform should be operationalisedwith effect from July 9, 2012. Refer circular available on RBI website athttp://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7290&Mode=0 forsalient features of the reporting requirement.

Reporting of other inter-bank OTC foreign exchange derivatives and all/selective trades in OTC foreign exchange and interest rate derivativesbetween the AD category–I banks /market makers (banks/PDs) and theirclients on CCIL’s reporting platform will be introduced in a phase-wise mannerto be advised in due course.

External Commercial Borrowings (ECB)

1. Repayment of Rupee loans

A.P. (DIR Series) Circular No. 134 dated June 25, 2012 and Press Release

2011-2012/2057 dated June 25, 2012

RBI has now allowed Indian companies in the manufacturing andinfrastructure sector to avail ECBs for repayment of Rupee loan(s) availed fromthe domestic banking system and / or for fresh Rupee capital expenditure,under the approval route, subject to the following conditions:

(i) Such companies shall be a consistent foreign exchange earner during thepast three financial years;

(ii) Such companies are not in the default list/caution list of the RBI; and

(iii) Such ECBs shall only be utilized for repayment of the Rupee loan(s) availedof for ‘capital expenditure’ incurred earlier and are still outstanding in thebooks of the domestic banking system and / or for fresh Rupee capitalexpenditure.

The overall ceiling for such ECBs shall be USD 10 (ten) billion. The maximumpermissible ECB that can be availed of by an individual company shall belimited to 50% of the average annual export earnings realised during the pastthree financial years. The ECBs shall be allowed to companies based on theforeign exchange earnings and its ability to service the ECB.

Authorised Dealer should ensure that the foreign exchange for repayment ofECB is not accessed from Indian markets and the liability arising out of ECB isextinguished only out of the foreign exchange earnings of the borrowingcompany.

• The amount of refund claim needs to be debited from his Cenvat creditaccount at the time of making refund application. However, if the refund issanctioned of a lesser sum, the difference may be claimed as credit again

(Notification No. 27/2012 CE (NT) dated 18.6.2012)

Fuel-Reduction in ITC

Hon’ble GVAT Tribunal has, recently, in case of Reliance Industries Limited S.A.No. 76/77, vide its judgment order Dt. 26/04/2012, set at rest the controversy asto whether, the reduction in InputTax Credit (ITC) @ 4 %, in respect of use of fuelin manufacture of taxable goods, which are, in turn, sent outside the state byway of Branch Transfer/ Consignment is to be made Once or Twice viz. first as,on account of being fuel & secondly as due to branch transfer / consignment offinished goods. Hon’ble Tribunal has held that the reduction in ITC is to bemade Once only & not twice.

Online Reporting of Overseas Direct Investment (ODI) in Form ODI

A.P. (DIR Series) Circular No.131 dated May 31, 2012

The Online reporting system of ODI is operationalised with effect from March2, 2010. Under the online reporting system, AD Category – I banks cangenerate the Unique Identification Number (UIN) online under the automaticroute. However, reporting of subsequent remittances under the automaticroute as well as the approval route has to be done online in Part II of form ODI,only after receipt of the letter from the RBI confirming the UIN.

RBI has now decided to communicate the UIN in respect of cases under theAutomatic Route to the ADs/Indian Party through an auto generated e-mail tothe email-ID made available by the AD/Indian Party. Accordingly, with effectfrom June 01, 2012, the auto generated e-mail, giving the details of UINallotted to the JV / WOS under the automatic route, shall be treated asconfirmation of allotment of UIN, and no separate letter will be issued by theRBI to the Indian party and AD Category - I bank confirming the allotment ofUIN. The subsequent remittances under the automatic route and remittancesunder the approval route are to be reported online in Part II of form ODI, onlyafter receipt of the e-mail communication/confirmation conveying the UIN.

The applications in form ODI for overseas direct investment under theapproval route would continue to be submitted to the Reserve Bank in physicalform as hitherto, in addition to the online reporting of Part I of the Form ODI.

Implementation of the Application Tracking System by Foreign Exchange

Department of RBI

Press Release 2011-2012/1925 dated June 1, 2012

Foreign Exchange Department, Central Office and its 17 Regional offices haveadopted the Application Tracking System (ATS), to facilitate the customers toapply and track the status of the applications online. The ATS is a major e-Governance initiative of RBI.

Under the ATS, customers can submit applications online and also track thestatus of an already filed / submitted application. The applicant would berequired to login with email ID and password as registered with the RBIwebsite. In respect of those applications, being submitted physically at thecounters of the Foreign Exchange Department, a valid email ID is required tobe indicated in the letter / application. An auto generated information will besent to the email ID given upon receipt of an application and also at the time ofdisposal of an application by the Department. Status of all letters / applications(other than statements and returns) requiring a reply from the ForeignExchange Department can be tracked by accessing the ATS. ATS can easily beaccessed on the homepage of RBI (www.rbi.org.in).

MoneyTransfer Service Scheme (MTSS)

A. P. (DIR Series) Circular No. 132 dated June 8, 2012

In order to promote inward cross-border money transfer activities in India,through tie-up arrangements with Overseas Principals under MTSS, RBI hasdecided to increase the number of remittances from 12 to 30 to be received bya single individual beneficiary in a calendar year. These guidelines would alsobe applicable mutatis mutandis to all Sub Agents of the Indian Agents(Authorised Person - AP) under MTSS and it will be the sole responsibility of theAPs to ensure that their Sub Agents also adhere to these guidelines.

GUJARAT VAT

(Contributed by CA. Kishor R. Gheewala)

FEMA

(Contributed by CA. Manoj Shah, CA. Hinesh

Doshi)

Personal ColumnPersonal Column“C.A. Firm in practice for more than 25 years having gross receiptsin excess of Rs. 25/- lacs is looking for partner for their Bank Audit& Insurnace Survey Practise. Preferably C.A. male/female above40 years should apply. Confidentiality shall be maintained. Pl.apply contact on Mobile No.: 98330 04044 or to email [email protected]."


DIRECT TAX

(Contributed by CA. Paras K. Savla,

CA. Deepak Tikekar)

S. 2(24)(xi), 17(3)(ii), 17(3)(iii) & 56(2)(iv) Assignment of Key-Man

Insurance Policy

On assignment of key-man insurance policy by company to its employee-director against receipt of surrender value from the director, differencebetween premia paid by company to LIC and surrender value paid bydirector to company cannot be taxed as“profits in lieu of salary”in the handsof director. [CIT vs. Rajan Nanda (2012) 249 CTR (Del) 141.]

S. 2(29BA) & 80-IA Production of pullovers amounts to manufacture.

Assessee engaged in production of pullovers by purchasing Flats(pallas)from another concern and subjecting the same to various processes viz.labeling, tailoring, packing, pakki checking, buttons and button holes,linking etc. is carrying out manufacture of an article as a different marketableproduct comes into existence after the Flats are processed and, therefore,assessee is entitled to deduction u/s 80-I in respect of income derived frommanufacture of pullovers. [CIT vs. Oswal Knit India Ltd. (2012) 250 CTR (P&H)179]

S. 2(29BA), 80-IA & Sch.XI, Entry 10 Preparation of voter’s I-cards

amounts to manufacture.

Assessee engaged in preparation of voter’s photo identity cards is engagedin manufacture or production of an article or thing, hence an “industrialundertaking”eligible for deduction u/s 80-IA; manufacture of identity cardscannot be described as photography apparatus and goods within themeaning of Entry 10 of Sch. XI. [CIT vs. Haryana State ElectronicsDevelopment Corporation Ltd. (2012) 250 CTR (P&H) 316]

S. 2(42A), 48 & 49 Computation of Indexed Cost in case of gift.

While computing the capital gains arising on transfer of a capital assetacquired by the assessee under a gift , the indexed cost of acquisition has tobe computed with reference to the year in which the previous owner firstheld the asset and not the year in which the assessee became the owner ofthe asset. [CIT vs. Manjula J. Shah (2012) 249 CTR (Bom) 270]

S. 10A Acquisition on slump basis does not amount to splitting or

reconstruction.

Assessee having acquired a software division of a company which wasestablished in 1994, as a going concern on a slump sale basis, there was nosplitting up or reconstruction of existing business and therefore assesseewas entitled to exemption u/s 10A. [CIT vs. Sonata Software Ltd. (2012) 249CTR (Bom) 441]

S.10B, 70 & 80IA(5) Claim for exemption vs. claim for deduction.

Sec. 10B, as it stands after substitution by Finance Act, 2000 w.e.f 1st April,2001 is not a provision for exemption, but a provision which enables anassessee to claim a deduction; loss which is sustained by an eligible unit canbe set off against the income arising from other units under the same head ofprofits and gains of business or profession. [CIT vs. Galaxy Surfactants Ltd(2012) 249 CTR (Bom) 38]

S. 10(10D) Amount received on maturity of key-man insurance policy

which was assigned is exempt.

Amount received by employee director on maturity of insurance policy,which insurance policy was in the first instance taken by his employercompany as key-man insurance policy and thereafter assigned to him, isexempt u/s 10(10D) in the hands of director. [CIT vs. Rajan Nanda (2012) 249CTR (Del) 141.]

S. 14A : Disallowance applies to partner’s share of profit. Depreciation

is not expenditure.

As the share of profit in partnership firm is exempt u/s 10(2A), section 14Awould apply and any expenditure incurred to earn the share income willhave to be disallowed.

However S. 14A applies only to “expenditure” incurred by the assessee.Depreciation u/s 32 is an“allowance”and not“expenditure”and so cannot bedisallowed u/s 14A. [Vishnu Anant Mahajan vs. ACIT (ITAT – AhmedabadSpecial Bench) ]

S. 14A : No disallowance if there is no tax free income

The assessee, a partner in a firm, borrowed funds and advanced it to the firmon terms that firm would pay interest if it made a profit. In one year firm didnot pay interest since it incurred loss. The assessee claimed interest paid onthe borrowing as deduction u/s 36(1)(iii). Held that no exemption claimedu/s 10(2A) by the assessee and there was no tax free income, S. 14A would notapply. [CIT vs. M/s. Delite Enterprises (Bombay High Court)]

S. 28(va), 45 & 55(2)(a) No compete fees taxable as business income and

not as other income.

Only from 1st April,2003 the consideration received under a non-competition agreement is chargeable to tax under S. 28(va) as profits andgains of business; same could not be charged under S. 55(2)(a).[Commissioner of IT & ANR. vs. K. Chandrakanth Kini. (2012) 249 CTR (Kar)217.]

S. 28(i) Allowability of advances as business loss.

Advances given to the persons who had been employed by the assessee-company if became unrecoverable, it would clearly be treated as businessloss; however, loss of security deposit given for taking the premises on rentcannot be allowed as deduction. [CIT vs.Triveni Engineering & Industries Ltd.(2012) 250 CTR (Del) 277]

S. 32(1)(ii) Depreciation on Intangible Assets.

Intangible assets viz. business claims, business information, businessrecords, contracts, employees and know-how acquired by the assesseeunder slump sale of running business are in the nature of “business orcommercial rights of similar nature” specified in s. 32(1)(ii) and therefore,same are eligible for depreciation. [ArevaT&D India Ltd. vs. Deputy CIT (2012)250 CTR (Del) 151]

S.36(1)(vii) & 36(2) Dues from clients allowable as bad debts even

though not offered to tax in earlier years.

Assessee share broker was entitled to deduction by way of bad debts u/s36(1)(vii) r/w s. 36(2) in respect of the amount which could not be recoveredfrom its clients in respect of transactions effected by him on behalf of hisclients apart from the commission earned by him, as value of the sharestransacted by the assessee as a stock broker on behalf of its client is as much apart of the debt as is the brokerage which is charged by the assessee on thetransaction. [CIT vs. Shreyas S. Morakhia (2012) 249 CTR (Bom) 30]

S. 37(1) Capital vs. Revenue expenditure.

Expenditure incurred for indigenisation of software is revenue expenditure.[CIT vs. Sonata Software Ltd. (2012) 249 CTR (Bom) 443]

S. 40(a)(ia) : Amendment by Finance Act 2010 is retrospective.

For A.Y 2008-2009, the assessee made a deposit of TDS after the due date forpayment but before the due date for filing ROI. Held amendment to 40(a)(ia)by the Finance Act, 2010 w.e.f 01.04.2010, which allows time for deposit ofTDS up-to due date of filing of ROI should be treated as retrospective w.e.f01.04.2005. [ITO vs.Taru Lending Edge (P) Ltd. (ITAT – Delhi)]

S. 40(a)(ia) & 194C Liability forTDS in franchisee agreements.

Agreement between the assessee and franchisees was an agreement forpermitting the payee to utilize the name and copyright of the assessee in thestudy material and in running the coaching centres, and there were mutualrights, duties and obligation and it was not a works contract; provisions of s.194C and consequently s. 40(a)(ia) were not applicable. [CIT vs. CareerLauncher India Ltd. (2012) 250 CTR (Del) 241]

S. 73 Where income assessed as business income Explanation to S 73 not

applicable.

Assessee’s income from service charges (Rs. 2.25 crores) and loss in sharetrading (Rs. 2.23 crores), had to be taken into account in computing theincome under the head of business, both being sources under the samehead, and the assessee having dividend income of Rs. 4.7 lakhs (income fromother sources), the assessee’s case fell within purview of exception carvedout in the Explanation to S.73 and the assessee could not be deemed to becarrying on a speculative business. [CIT vs. Darshan Securities (P) LTD. (2012)249 CTR (BOM) 199.]

S. 80I Where separate unit established deduction allowable even if new

unit dependent on old unit.

Assessee having acquired a separate license, invested huge sum of Rs. 7.5crores for putting up plant and machinery and production capacity alsoincreased almost double, was entitled to deduction u/s 80I; only because to acertain extent the new undertaking is dependent on the existing unit, willnot deprive the new undertaking the status of a separate and distinctidentity. [Gujarat Alkalies & Chemicals Ltd vs. CIT (2012) 249 CTR (Guj) 82]

RECENTJUDGEMENTS


RECENTJUDGEMENTS

S. 80-IB(10) Ownership of land not necessary for claiming deduction.

Terms and conditions of development agreements showed that assesseehad taken full responsibility for execution of the projects and the resultantprofits or loss belonged to the assessee in entirely and all other conditions ofs.80-IB(10) being satisfied, deduction u/s 80-IB(10) could not be disallowedto assessee on the ground that land under development projects was notowned by assessee and in some cases development permission was grantedin the name of original landowners. [CIT vs. Radhe Developers & Ors (2012)249 CTR (Guj) 393]

S. 80-IB(10) & 80-IB(14)(a) Common area to be excluded in calculating

prescribed area.

If the area does not exclusively belong to the owner of the residential unitand if he has to share that common area with the owner of anotherresidential unit, then that common area has to be excluded from the built-uparea; it is not necessary for such exclusion whether that area is shared by allthe owners of the building. [CIT & ANR. Vs. Raghavendra Constructions(2012) 250 CTR (Kar) 285]

S. 115E & 115H Concessional tax available to NOR.

Status of the assessee was “not ordinarily resident” and various deposits inbanks were specified investments as per s. 115E and therefore assessee wasentitled to the benefit of s. 115E and the question of filing of declaration u/s115H did not arise. [CIT vs. N. Sundarraman (2012) 250 CTR (Mad) 212]

S. 127 Recording of reasons for transfer of cases whether mandatory-

Matter referred to larger Bench.

Question whether the decision of three Judge Bench of the Supreme Court inthe case of Ajantha Industries vs. CBDT 1976 CTR (SC) 79 : (1976) 102 ITR 281(SC) so far as it lays down the law that the requirement of recording reasonsu/s 127(1) is a mandatory direction under the law and non-communicationthereof is not saved by showing that the reasons exist in the file although notcommunicated to the assessee is no longer a good law in view of thesubsequent decisions of the Supreme Court in the cases of ManagingDirector, ECIL vs. B.Karunakar AIR 1994 (SC) 1074 and State Bank of Patiala vs.S.K Sharma AIR 1996(SC) 1669 as held in the case of Arti Ship Breaking vs.Director of IT(Inv.) & Ors. (2000) 161 CTR (Guj) 323 : (2000) 244 ITR 333 (Guj) isrecommended to be referred to a larger Bench. [Millennium Houseware &Ors.Vs. CIT & ANR. (2012) 250 CTR (Guj) 123]

S. 143, 151 & 251 No power to CIT-A to change the status of the assessee.

If the status of the assessee is required to be modified, the only optionavailable to the ITO is to assess the income in the appropriate status, ifpermitted by law, by issuing a notice to the assessee in that particular status;CIT(A) was not justified in modifying the status from AOP to BOI. [GuttaAnjaneyulu & Co vs. CIT (2012) 249 CTR (AP) 106]

S. 194H Liability forTDS. Purchase and resale vs. commission.

Sale of milk and milk products by assessee dairy to concessioners/agentswho sold the same from the booths owned by the assessee was on principalto principal basis and therefore, assessee dairy was not liable to deduct tax atsource u/s 194H from the payments made to concessioners. [CIT vs. MotherDairy India Ltd. (2012) 249 CTR (Del) 559]

S. 206AA PAN law read down to not apply to assessee’s without taxable

income

The assessee, whose income was below taxable limit, filed Form 15-G andrequested that no TDS be deducted on interest on fixed deposit. Theassessee was informed that in view of S. 206AA, TDS would have to bededucted in the absence of PAN. Held in writ petition that S. 206AA as beingarbitrary and unconstitutional to the extent that it compelled persons withno taxable income to obtain a PAN. [Kowsalya Bai vs. UOI ( Karnataka HighCourt)]

S.271(1)(c) Bona-fide mistake not liable for penalty.

Amount surrendered by assessee was recorded in books but could not besufficiently explained and partners of the assessee were uneducated nothaving knowledge of accounts and therefore their bona fide act could not betreated as concealment of income within the meaning of s. 271(1)(c). [PunjabRice Mills vs. CIT & ANR. (2012) 250 CTR (All) 201]

S. 271(1)(c) : Penalty not levied for breach of S. 50C

The fact that assessee agreed to additions because of deeming provisions ofS. 50C does not mean that he filed inaccurate particulars of his income. Theassessee’s acceptance of addition on the basis of valuation made by theStamp Valuation Authority is not conclusive proof that sale consideration asper the sale agreement was incorrect and wrong and so penalty u/s 271(1)(c)cannot be levied. [Chimanlal Manilal Patel vs. ACIT (ITAT – Ahmedabad)]

INTERNATIONAL TAXATION

(Contributed by CA. Hinesh Doshi,

CA. Vishal Gada, CA. Dolly Waghela)

DCIT vs. Mohan Balakrishnan Pookulanagara (ITA NOS. 2190 (AHD.)

2009)

Facts:

The taxpayer was employed by a Polish company, Zaklady FarmaceutycznePolpharma S.A (the employer Company) to assist them in establishing arepresentative office of the employer company in India.The agreement betweenthe taxpayer and the employer Company mentioned that the taxpayer wasengaged as a 'Service Provider'.

The taxpayer filed his tax return for the AssessmentYears (AYs) 2005-06 and 2006-07 claiming that the salary received by him from the employer Company was nottaxable in India under Article 17(2) of the India – Poland tax treaty. Article 17 of the tax treaty deals with the taxation of Director's fees and remuneration paid toofficials in 'top level managerial positions' in the Company. The tax treatyprovides that a tax resident of India who is an official in a 'top level managerialposition' in a company that qualifies as a Polish tax resident may be taxed inPoland. In such a case, the income taxed in Poland shall be exempt3 from tax inIndia

The Assessing Officer (AO) observed that the taxpayer had not produced anydocument from the employer Company that indicated that he was at a 'top levelmanagerial position'.

Issues:

Whether the taxpayer qualified as an official in a 'top level managerial position'and is eligible for the exemption from tax in India under the tax treaty?

Held:

The copy of the certificate issued by the employer Company that was producedas additional evidence by the taxpayer before the Tribunal was not taken onrecord since theTribunal noticed several irregularities in the certificate.

Since the term 'top level managerial position' has not been specifically defined inthe tax treaty, the Tribunal examined the meanings provided in variousdictionaries for this term, based on which it interpreted that the highest rankingexecutives, officials with decision-making powers that affect the entireorganisation or personnel who are responsible for controlling and overseeingthe entire organisation could possibly fall within this category.

Accordingly, it held that the function of supporting the establishment of theIndia representative office of the Company can at best be termed as amanagement function but cannot be equated with 'Top Level ManagerialPosition'.

The Tribunal observed that apart from two short visits to Poland, the taxpayerwas functioning from India and hence the salary is deemed to accrue or arise inIndia and is taxable in India.

TheTribunal therefore denied the exemption claimed by the taxpayer.

B4U International Holdings Ltd vs. DDIT (IT) (I.T.A.No. 880 of 2005)

Facts:

The taxpayer, a Mauritius company having the Tax Residency Certificate (TRC), isengaged in the business of telecasting of TV channels such as B4U Music, MCM,etc.

The taxpayer's revenue from India includes collections from time slots given toadvertisers in India. The Indian companies namely B4U Multimedia InternationalLtd and B4U Broadband Ltd (collectively referred as 'B4U India'), were grantedgeneral permission by the Reserve Bank of India (RBI) to act as advertisementcollecting agents of the taxpayer.

The taxpayer claimed that since it does not have PE in India, it is not liable totax under the tax treaty. The Assessing Officer (AO) held that D4U India is aDAPE on the taxpayer in India and further held that the payment of arm'slength remuneration does not extinguish the tax liability of the taxpayer inIndia.

The Commissioner of Income-tax Appeals [CIT (A)] held that the taxpayercarries out its entire activities from Mauritius and all the contracts wereconcluded in Mauritius. The only activity carried out in India is incidental orauxiliary/ preparatory in nature which was carried out in a routine manner as


per the direction of the principals without application of mind andtherefore, it could not be treated as a DAPE in India.

Issues:

Whether B4U India can be treated as DAPE of the taxpayer under the taxtreaty?

Held:

The Tribunal observed that the entire issue as to whether the taxpayer has aPE in India or not, depends on the Agreement entered into between both theparties and the functions performed by them. The term 'has' used underArticle 5(4) of the tax treaty vis-à-vis authority to conclude contract, hasreference to legal existence of such authority in terms of the contractbetween principal and agent. A reading of the agreement shows that suchpower is not conferred on the agent. Similarly, the words 'habituallyexercises' has reference to a systematic course of conduct on part of theagent, as held by the AAR in the case of TVM Ltd. v. CIT (237 ITR 230). In thepresent case, there is neither legal existence of such authority, nor is thereany evidence to prove that the agent has habitually exercised suchauthority. The Tribunal held that when the agent has no authority toconclude contracts, the tax department cannot ask for contrary evidence asnobody can prove the negative. Thus, it was held that Article 5(4) of the taxtreaty is not attracted in the instant case.

The Tribunal further observed that under Article 5(5) of the tax treaty, thewordings 'when the activities of such an agent are devoted exclusively oralmost exclusively on behalf of the enterprises', refer to the activities of anagent and its devotion to the non-resident and not the other way round. Theperspective should be from the angle of the agent and not of the non-resident. This view is contrary to the decision of the Tribunal in the case ofACIT v. DHL Operations B.V. (142 Taxman 1) (Mum) but is in line with thedecision of the AAR in the case of Morgan Stanley & Co. (272 ITR 416). Duringthe year under consideration the income of B4U India from the taxpayerconstituted merely 4.69 percent of its total income. B4U India cannot betreated as dependent agent of the taxpayer.

Accordingly, the Tribunal held that neither Article 5(4) nor Article 5(5) of thetax treaty was attracted in this case. Therefore, the taxpayer has no PE inIndia.

TheTribunal further held that even if it is held that there is a PE of the taxpayerin India, and then also it is to be held that as the rate of commission of 15percent was accepted as arm's length price by the TPO for AY 2002-03 to2004-05, no further profit is attributable to the PE. While holding so, theTribunal relied on the decisions of DIT v. Morgan Stanley & Co. [2007] 292 ITR416 (SC), Set Satellite (Singapore) Pte Ltd. v. DDIT [2008] 307 ITR 205 (Bom)and DIT v. BBCWorldwide Ltd. [2011] 203Taxman 554 (Del).

B4U International Holdings Ltd vs. DCIT (IT) (I.T.A.No. 3326 of 2006)

Facts:

M/s B4U International Holdings Ltd ('the assessee'), a tax resident ofMauritius, had made certain payments to certain parties during the relevantyear without deducting tax at source.

The Assessing Officer ('AO') was of the view that payments made toPanAmsat Limited (USA) and Advance Satellite (UK) towards transponderhiring charges were taxable as royalty in India thus he disallowed thepayments by invoking the provision of section 40(a) (i) of the IncomeTax Act,1961('the IT Act').

On appeal, the Commissioner of Income Tax (A) ('CIT (A)') upheld the viewtaken by the AO. Being aggrieved, the assessee was in further appeal beforetheTribunal.

Issues:

Whether the payments made to the above parties were chargeable to tax inIndia as 'Royalty" in terms of the provisions of IT Act and DTAA?

Whether the AO was correct in disallowing payments under section 40(a) (i)of the IT Act?

Held:

The Tribunal referred to the decision of Asia Satellite TelecommunicationsCo. Ltd. (332 ITR 340) wherein it was held that assessee was the operator ofsatellite and the controls of satellite were not separable from that oftransponder. Thus, the assessee who had merely given access to abroadband available with transponder to particular customers, amount

RECENTJUDGEMENTS

paid to assesse by its customers would not represent income by way of'Royalty' within meaning of section 9(1)(vi) of the IT Act.

As regards the alternative contention of the AO seeking to tax the paymentas FTS, the Tribunal referred to the decision Madras High Court in case of Skycell Communication (251 ITR 53) wherein it was held that mere collection of a'fee' for use of a standard facility provided to all those willing to pay for it didnot amount to the fee having been received for technical services.

Further, it was held that the mere rendering of service was not enough andpayer must be enabled to perform services himself to make availabletechnical knowledge. Accordingly, it was held that payment was not taxableas FTS.

Further, the Tribunal placed reliance on the decision of Delhi Tribunal in caseof Herbellife International 101 ITD 450 (Del) wherein it was held thatprovisions of section 40(a) (i) as it existed prior to its amendment by FinanceAct, 2003, w.e.f. 1st April, 2004 provided for disallowance of payment madeto a nonresident where tax was not deducted at source. A similar payment toa resident did not result in disallowance in the event of non-deduction of taxat source.

Non-Discrimination Clause in India-US DTAA seeks to provide against suchdiscrimination and says that deduction should be allowed on the samecondition as if the payment is made to a resident.

Thus, Non-Discrimination Clause in DTAA neutralizes the rigour of theprovisions of section 40(a) (i). By virtue of the provisions of section 90 (2) thelaw which is beneficial to the assessee to whom the DTAA applies, should befollowed.

The Tribunal relying on the above decision and the decision of Central Bankof India ITA No. 4155/Mum/03 where similar view was taken held thatpayment could not be disallowed under the Non-Discrimination Clause.

Show Cause Notice

Mere mention of wrong section number in the show cause notice does notinvalidate the notice so long as the acts comprising the offence areexplained and they constituted offence within meaning of the correctsection that was in force at time of issue of the notice [CCE vs. AjmerAutomobiles P(Ltd) (2012) 26 STR 19(Tri-Del.)].

Limitation

Where the dispute pertained to the initial period of levy of service tax andinvolved an issue relating to interpretation of law and also where an audithad been conducted in 2004 with lot of correspondence being exchangedwith the department, the SCN issued in July 2006 for the period 1.4.03 –30.9.03, it was held to be barred by limitation. [CCE vs. A.P.S.M Study Centre(2011) 24 STR 717 (Tri.-Del)].

Failure to obtain registration and pay service tax cannot be equated withdeliberate suppression with an intent to evade payment of duty. A positiveact on the part of assessee is imperative to invoke the extended time limit[CCE vs. Global Software Solutions (P). Ltd. (2011) 24 STR 707 (Tri.- Chennai)].

If law does not require certain details to be disclosed in returns etc., thennon-disclosure of the same cannot lead to suppression or misstatement offacts in order to invoke the extended period of limitation [Parekh Plast (India)Pvt. Ltd. v. CCE 2012 (25) STR 46 (Tri-Ahmd)].

In absence of any allegation of fraud, collusion, suppression, etc. in the showcause notice the extended period of limitation cannot be invoked. [CST v.Gowri Computers (P) Ltd. (2012) 25 STR 380 (Tri – Bang)].

Non disclosure of a receipt in the returns (in this case commission) onaccount of bonafide belief that service tax is not payable on the said receiptcannot be considered suppression with an intent to evade tax for which theextended period could be invoked [CCE vs. Ajmer Automobiles P(Ltd) (2012)26 STR 19(Tri-Del.)].

Liability to pay ServiceTax

Where the assessee has billed Rs.1,00,000/- in March, 2004 and disclosed thesame in ST-3 return for the half year ended March'04 but the payment wasrealised in March'05 on which no service tax was paid, the period of 1 year / 5years for issue of SCN needs to be reckoned from date of filing the ST–3 returnpertaining to the period in which short payment occurred i.e. March 2005and not from the date on which information regarding billing is furnished i.e.March, 2004 since service tax is paid when value since service tax is paidwhen value is realised and put when value is billed [Indfos Industries Ltd. vs.CCE (2012) 26 STR 129 (Tri. – Del.)].

SERVICE TAX

(Contributed by CA. A. R. Krishnan,

CA. Girish Raman)


RECENTJUDGEMENTS

Show cause notice

Where the SCN had been issued demanding service tax on money receivedfrom renting out land and open ground under the category of Mandapkeeper's services but had failed to clearly bring out – the nature of use of theimmovable property (i.e. as to whether any official, social or businessfunctions were performed over the immovable property) and whether suchactivity brought the assessee into the fold of law, the Tribunal held thatdemand under the said SCN is not sustainable [CCE vs. Municipal Council(2011) 24 STR 705 (Tri.-Del.)].

If service tax is paid along with interest before the issue of SCN and there is nointent to evade payment of service tax, then a SCN cannot be issued inrespect of the service tax so paid. But, there is no bar on issuance of SCN toimpose penalty. To this extent, the Board's Clarification No. 137/167/2006 –CX - 4 dated 3.10.2007 was held to be incorrect [CST v. Gowri Computers (P) Ltd.(2012) 25 STR 380 (Tri – Bang)].

Adjustment of tax

On facts the Tribunal held that where advance payment of service tax hasbeen made

�There is no question of adjustment of excess tax paid since it is not excesspayment of tax as per the rules;

�No further proceeding need to be initiated.

[Dahej Harbour and Infrastructure Ltd. vs. CCE (2011) 24 STR 676 (Tri.-Ahmd.)]

Penalty

Where the penalty u/s 76 is waived by invoking the provisions of section 80("reasonable cause" ground) penalty u/s 78, which covers the cases ofsuppression, misstatement etc. with an intent to evade the payment of tax,cannot be imposed [Jayadasa Engineering & Exports P. Ltd. v. CST 2012 (25) STR102 (Tri-Che)].

In this case, the Delhi High Court laid down the following propositions:

�Prior to 10.5.2008 (i.e. before the amendment to s. 78), penalties u/s.76 and 78 could simultaneously be levied since section 76 (penaltyfor failure to pay service tax) and 78 (penalty for suppressing value oftaxable service) operated in distinct and separate fields even if theoffences are committed in the course of same transactions or ariseout of the same act.

�Post 10.5.08, with the amendment in s. 78 (insertion of fifthproviso) which provides that penalty u/s. 76 cannot be imposed ifpenalty u/s. 78 is imposed, simultaneous penalties u/s. 76 and 78cannot be levied. This amendment is prospective and notretrospective.

�Section 80 provides for non-imposition of penalties if therewas a "reasonable cause" for the failure. This would mean acause or ground which is not unreasonable. If an assessee can showthat the short/non-payment of service tax was "bonafide" i.e. goodfaith or in absence of fraud or unfair dealing it amounts to"reasonable cause".

�On facts, the High Court waived the penalties u/s. 76 and 78 on the"reasonable cause" ground on the basis that:

(a) the tax was paid much before the issue of SCN on the very nextday of the visit of the department alongwith interest;

(b) the imposition of tax was new and there were many confusionsand misgivings;

(c) the Department itself had launched a scheme for waiver ofpenalties in cases where assessees paid tax in response to thescheme.

[Bajaj Travels Ltd. v. CST (2012) 25 STR 417 (Del.)]

The assessee paid the service tax under reverse charge (but did not pay theinterest) on being pointed out by the department and intimated thedepartment.Thereafter the department issued SCN demanding interest andimposing penalty u/s. 76, 77 and 78. The Tribunal held that as per Section73(3), where the assessee paid tax before the SCN and intimated thedepartment, the department before issue of SCN was required to write aletter demanding interest and as if there was no payment, issue a SCN andthe period of "1 year" is to be reckoned from the date of intimation. Further,the Tribunal held that as no intimation demanding interest was sent by thedepartment and as the assessee paid interest after issuance of SCN, it was afit case for dropping of penalty levied u/s 76 and 77. Further, since theassessee is also entitled to take credit of service tax paid under reversecharge and there was no reason for suppression or mis-declaration by theassessee, penalty u/s 78 was also dropped. [Shree Rama Multi-Tech Ltd. v. CST(2012) 25 STR 596 (Tri. – Ahmd.)].

If proviso to section 73(1) of the Act is not invoked (extended period oflimitation due to fraud, etc.), then penalty u/s 78 is not imposable [CST v.Gowri Computers (P) Ltd. (2012) 25 STR 380 (Tri – Bang)].

Refund

The Bar of Limitation of 1 year reckoned from the date of deposit of tax inrespect of refund claims would not apply to claims for refund of service taxdeposited at the time of investigation under the directions of thedepartment but contested in subsequent proceedings pursuant to which arefund order is passed in favour of the assessee. [Mangalam Cements vs. CCE(2011) 24 STR 699 (Tri-Del)].

Where the assessee provided services only to overseas entities and its entireoutput was exported the Tribunal held that since the assessee was not liableto pay service tax he was not required to take registration u/s. 69. Hencedenial of rebate claim on the ground that the assessee was not registeredwas held incorrect. Secondly, the Tribunal held that condition of filing ofdeclaration (giving quantity, nature and value of input/input services to beused for exports) is to be fulfilled [Notification 12/2005 dated 19.4.2005]before export is necessary and no rebate would be allowed if declaration isnot filed at all or filed after the completion of export. [Wipro BPO SolutionsLtd. v. CST (2012) 25 STR 371 (Tri – Del)].

Where there is no dispute as to intended use of the inputs, then refund claimcannot be denied merely on the ground that goods were not exported underthe Bond/LuT as it is merely a procedural lapse [Well Known Polyesters Ltd. v.CCE (2012) 25 STR 411 (Tri – Ahmd)].

Refund of service tax paid on transportation of empty containers to thefactory premises for stuffing of export goods and on detention charges isadmissible under Notification No. 41/2007-ST dated 6.10.07 since the samewould fall within the expression "in relation to" transportation of goods[InoxIndia Ltd. vs. CCE (2012) 26 STR 120(Tri-Ahmd)].

�The assessee in the present case had mistakenly paid service tax oncertain construction services provided by it which were not liablefor service tax. Accordingly it filed a refund claim though beyond theperiod of limitation prescribed under Section 11B of Central ExciseAct, 1944. The Revenue had not disputed the assessees liability topay service tax. However, it denied the refund claim on the groundthat the same was barred by limitation by virtue of Section 11B of theAct. The issue before the High Court was whether the provision ofSection 11B would be applicable even in cases where the amount oftax has been paid under mistaken notion. The High Court observedas follows.

�Since the assessee was not liable to pay Service Tax on theconstruction services rendered by it, the revenue could not havedemanded payment of such tax from the assessee. Hence it lackedthe authority to levy and collect the said tax amount from theassessee and retain it.

�In absence of the authority, payment made by the assessee asservice tax would not partake the character of service tax liable to bepaid by them. Mere nomenclature will not be an embargo on theright of assessee to demand refund of payment made undermistaken notion.

�Accordingly, the High Court held that provision of Section 11Bwould not be applicable in such circumstances since it is not a dutyas referred to in s. 11B and hence refund was admissible

[CCE. vs. KVR Construction (2012) 26 STR 195(Kar.)].

Revisionary Powers

Where the original authority on being satisfied about the cause shown,exercised its powers under Section 80 of the Act and did not impose penalty,the Commissioner has no jurisdiction to interfere with such discretionaryorders and impose penalty in pursuance of his revisional jurisdiction. [CST vs.Handimann Services Ltd. (2011) 24 STR 641 (Kar.)].

The object of section 84 is only to review orders causing prejudice to theinterest of revenue. It does not confer original jurisdiction on revisionaryauthority. Thus where SCN was issued demanding service tax under thecategory of Management or Repairs service, the revisionary authority has nopower to review the SCN and demand service tax under the category ofCommercial and Industrial Construction services [Brij Mohan Surinder Kumarv. CCE 2012 (25) STR 58 (Tri-Del].

Cenvat Credit

Where the Head office of the assessee company paid for certain inputservices consumed in unit 'A' it was held that the Head Office can validlydistribute the credit on such services even to unit 'B' (which has notconsumed the services) in absence of a specific prohibition in rule 7 of theCenvat Credit Rules, 2004 [CCE vs. ECOF Industries Pvt. Ltd. (2012) 26 STR 100(Kar.)].

Credit of service tax paid on mobile phones listed in the name of the assesseecompany given to its employees for official use cannot be disallowed on theground that the Mobile Phone bills contained the name of the employeesalong with the name of the assessee company [Muscat Polymers Pvt. Ltd. vs.CCE, Rajkot (2012) 26 STR 122 (Tri. - Ahmd) relying on CCE vs. Excel Crop CareLtd. (2008) STR 436 (Guj.)].

Outdoor Catering Service: Cenvat credit of service tax paid onoutdoor catering services availed for providing canteen facilities to thee m p l o y e e s i s a d m i s s i b l e s i n c e t h e s a m e h a s b e e n u t i l i s e ddirectly or indirectly in or in relation to the manufacture of final product [CCE& ST. vs. ACE Designers Ltd. (2012) 26 STR 193(Kar.) relying onCCE vs. Stanzen Toyotetsu India Pvt. Ltd. (2011) 23 STR 444(Kar.)].

�The assessee in the present case had wrongly taken Cenvat Credit intheir cenvat account without the actual receipt of capital goods.However, on being pointed out it accordingly reversed the credit.The revenue sought to recover the interest u/r 14 of the CenvatCredit Rules, 2004 for wrongly taking the Cenvat credit. On appeal,the High Court held that –

�Crediting of excise duty in the Cenvat credit register is onlya book entry. Credit is actually taken only at the timewhen stage for payment of excise duty/ service tax is reached.

Further credit is said to be utilized only when it is adjusted / set off

The Joint Commissioner (JC) in his order dropped the demand of1.66 lakhs but confirmed a demand of Rs. 2.43 lakhs againstwhich the assessee went in appeal and the CCE (A) allowed the appeal.Thereafter the Commissioner reviewed the JC's order insofar as thedemand of Rs. 1.66 lakhs was dropped and raised the said demand ofRs. 1.66 lakhs. It was held, by the Tribunal that the review order was notmaintainable since the JC's order was already set aside by the CCE (A) on thesame subject matter [CCE vs. Ajmer Automobiles P(Ltd) (2012) 26 STR 19(Tri-Del.) ].

Appeal

Appeal against the orders of Tribunal involving questions relatingto rate of duty of excise or value of goods for the purpose of assessment liesbefore the Supreme Court under Section 35L of the Central Excise Act, 1944and not before the High Court [CST. vs. Maini Material Movement Pvt. Ltd.(2012) 26 STR 106 (Kar)].

Appeals – Pre-deposit from Cenvat Credit

Amount debited to Cenvat credit account pursuant to adverseadjudication order is to be considered "pre-deposit" even thoughno stay application was filed alongwith appeal and no order forpre-deposit was made. On success in appeal recredit of pre-depositmade out of cenvat credit account cannot be denied either onthe ground that credit was availed on the basis of the appellateorder which is not a prescribed document for taking credit oron the ground that the appellate order did not contain thewords "consequential relief". [Samtel Electronic Devices vs. CCE (2012)26 STR 125 (Tri. - Del.)].


RECENTJUDGEMENTS

Chartered Accountants Acts & Regulations

Accounting and Auditing

Income Tax and Wealth Tax

Indirect Taxes

Company Law

Other Laws

Chartered Accountants Acts & Regulations

Accounting and Auditing

Income Tax and TT WealthWW TaxTT

Indirect TaxesTT

Ninth Thoroughly Revised And Updated Edition

The WIRC Reference Manual is an easy reference compilation of assorted Laws,Rules, Regulations, Procedures, Pronouncements, Notifications, etc. It coverstopics suitable for all accounting, tax and legal professionals. A comprehensiveyet handy guide, the Manual is a distillation of the expertise of some of the bestminds in our profession.

The Ninth edition of WIRC Reference Manual covers an wide range of subjectsincluding Chartered Accountants Acts & Regulations, Accounting and Auditing,Income Tax and Wealth Tax, Indirect Taxes, Company Law, Other Laws andadditional information deemed important.

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Discount of 10% for Bulk purchase of 50 or more copiesBook Your Copy with [email protected] or contact Mr. Vijay on 3980 2923

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RECENTJUDGEMENTS

against the duty payable by making a debit entry in the Cenvatcredit register. If entry has been reversed in the register beforeutilization, it amounts to not taking credit. Accordingly therewould be no credit taken/ utilized wrongly and hence no interestis payable.

�Interest being compensatory in nature, the same would beimposable only when the assessee by taking credit had notpaid the duty/ tax which is legally due to the government on duedate. If there is no liability to pay duty/ tax, there is no liability topay interest. Further, both section 11AB of the CEA, 1944 andSection 75 of the Finance Act, 1994 do not stipulate payment ofinterest from the date of book entry showing entitlement ofCenvat Credit.

[CCE & ST, vs Bill Forge Pvt Ltd. (2012) 26 STR 204(Kar.)].

Cenvat credit on services availed for Captive Power Plant

The appellants in the present case had entered into an agreementwith Madhya Pradesh State Electricity Board ("MPSEB") wherein theappellant would supply the electricity generated in its wind powergenerators to MPSEB in consideration for which MPSEB would supplyelectricity to the appellant's factories situated at a distant place from thewindmill after deducting wheeling charges. The appellant had availedCenvat Credit on erection, installation, commissioning, repair andmaintenance and insurance services availed in respect of the windmillswhich was sought to be disallowed by the department on the ground thatelectricity generated had not been directly used in the factories ofappellant. On appeal the Tribunal held that credit would be admissiblesince –

�the windmill though situated at a distance from thefactories of the appellant were in the nature of captive powerplant; and

�there was a clear nexus between the electricity generated by windmills of the appellant and that used for running factories of theappellant.

[Rajratan Global Wires Ltd. vs. CCE (2012) 26 STR 117 (Tri. – Del.)].

WORK DISPOSAL POSITIONThe position of disposal of various matters relating to members and students of WIRC

as on 30/06/2012

PARTICULARS DATE

Members Section

Articles Section

Proprietary Firm Registration 21/06/2012Partnership Firm Registration – Constitution 21/06/2012

Reconstitution 21/06/2012Grant of Certificate of Practice 21/06/2012Fellow Admission 22/06/2012Change of Address 27/06/2012New Enrolment 22/06/2012Restoration 21/06/2012Permission for other engagement 27/06/2012

IPCC Registration 01/07/2012Final + Articles Registration 01/07/2012Industrial Training Registrations 01/07/2012Re-registration 01/07/2012Termination 01/07/2012Completion 01/07/2012Permission to study 26/06/2012Supplementary Registration 01/07/2012Change of Address 01/07/2012

Group photo taken on the occasion of Interactive meeting with GoaChamber of Commerce Industry. L to R: Seated CA. Rajkumar Adukia,CCM, Shri Mangirish Prabhuraikar, President GCCI, CA. Mahesh Sarda,CCM, CA. Durgesh Kabra, Chairman, WIRC. CA. Naveen Daivajna, CA.Mangesh Kinare, RCM, CA. Virendra Prabhudesai, Chairman, GoaBranch and other officials.

CA. Shruti Shah, RCM, Shri Justin West, Faculty, CA. Anil Bhandari, Secretary, WIRC,Ms.Vandana Saxena Poria, Faculty.

Lecture Meeting on CA from England and Wales (UK) held on 13th June 2012


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National Workshop on Media & Entertainment held on 1st and 2nd June 2012

Other Speakers

ShriRajeev Surana

ShriAjay Solanki

CA. UtkarshSanghavi

CA. NitinMenon

CA. RajeshShah

CA. Anup Shah CA. Tarun Ghia Ms. RanjanaAdhikari

CA. RomeshSankhe

CA. PratikSinghi

CA. Shriniwas Joshi, Past Chairman, WIRC, CA. Durgesh Kabra, Chairman,WIRC, Mr. Javed Jafari, Chief Guest, CA. Rajkumar Adukia, Chairman, CMII &IASB, CA. Isha Sekhri, Faculty, CA. Shibashish Sarkar, Faculty.

Seminar on Compliance - Related to Capital Market held on 9th June 2012

CA. Shardul Shah, RCM, Shri Deepak Kedia, Faculty, CA. Sushrut Chitale

Other Speakers

Shri Mushir KilledarCA. Bhavesh Khurana CA. Mitesh Thakkar

Direct Tax Refresher Course held on 15th June, 2012

CA. Sunil Patodia, RCM, CA. Pankaj Jain, CCM, CA. Yogesh Thar, Faculty,CA. Neel Majithia, RCM.

CA. Ashok Jain, RCM, CA Sanjeev Lalan, Past Chairman, WIRC, CA. Dinesh Kanabar,Faculty, CA. Dinesh Gandhi,Treasurer,WIRC.

Lecture Meeting on CA to CFO held on 21st June, 2012

CA. Dilip Apte, RCM, CA. Jugal Mantri, Faculty, CA. Shardul Shah, RCM,CA. Ashok Jain, RCM

CA. Durgesh Kabra, Chairman,WIRC presenting memento to Dr. T. Pandian, Official Liquidator


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Direct Tax Refresher Course held on 23rd June, 2012

CA. Vishnu Agarwal, RCM, CA. Gautam Nayak, Faculty, CA. Nilesh Vikamsey,CCM, CA. Dhiraj Khandelwal, RCM

CA. Shruti Shah, RCM, Dr. Rakesh Gupta, Faculty, CA. Shriniwas Joshi, PastChairman,WIRC, CA. Mangesh Kinare, RCM.

Seminar on Assistment & Appellate Proceedings under IT Act held on 30th June, 2012

CA. Shardul Shah, RCM, CA. Dhiraj Khandelwal, RCM, CA. Avinash Rawani,Faculty, CA.VikasVishwasrao

Other Speakers

Shri Tarun GhiaCA. Pradip Kedia CA. Gautam Nayak

Seminar on Important Development

in MVAT held on 23rd June, 2012

CA. Shardul Shah, RCM, CA. Mangesh Kinare, RCM, CA. KiranGarkar, Faculty, CA. Nikesh Sheth

CA. C. B.Thakar

OtherSpeaker

Group Photograph taken during the Interactive Meeting with ROC held on14th June 2012 : (L-R): CA. Shruti Shah, RCM, Shri M. R. Bhat, ROC, Shri S. M. A.Millath, Regional Director, CA. Durgesh Kabra, Chairman, WIRC, CA. AshokJain, RCM and others

Direct Tax Refresher Course held on 30th June, 2012

CA. Ashok Jain, RCM, CA. Rajan Vora, Faculty, CA. Shardul Shah, RCM, CA.Rajkumar Adukia, CCM.

CA. Dilip Apte, RCM, CA. Ameet Patel, Faculty, CA. Sanjeev Maheshwari,CCM, CA. Dhiraj Khandelwal, RCM.

CA. Kamal Dhanuka, CA. Sunil Ptodia, RCM, CS. Suresh Thakurdesai, Faculty,CA Manish Dedhia

Seminar on E-Filing under Various Law held on 23rd June 2012

CA. SomitGoyal

CA. AnshumanChaturvedi

CA. AvinashRawani

CA. JinitShah

Other Speakers

Group Photo graph takenduring the WICASAIndustrial Traning visit.

To

Branches : Ahmedabad • Ahmednagar • Akola • Amravati • Anand • Aurangabad• Baroda • Bharuch • Bhavnagar • Gandhidham • Goa •Jalgaon • Jamnagar• Kolhapur • Latur • Nagpur • Nashik • Navi Mumbai • Pimpri Chinchwad • Pune • Rajkot • Sangli • Solapur • Surat • Thane • Vasai • Vapi

Address : ICAI Bhawan, 27, Cuffe Parade, P.B. No. 6081, Colaba, Mumbai 400 005. WIRC Website : http://www.wirc–icai.org ICAI Website : http://www.icai.org •Phone : 39893989 • Fax : 39802954/39802953 E-Mail : WIRC : [email protected] •• Mumbai : [email protected] • New Delhi : [email protected]

Printed and published by Shri M.A. Razak on behalf of Western India Regional Council of TheInstitute of Chartered Accountants of India and printed at Finesse Graphics & Prints (Pvt) Ltd.,309, Parvati Industrial Estate, Sunmill Compound, Lower Parel, Mumbai – 400 013. andpublished at Western India Regional Council of the Institute of Chartered Accountants of India,ICAI Bhawan, 27, Cuffe Parade, Colaba, Mumbai - 400 005.Editor: CA. Durgesh KabraThe views and opinions expressed or implied in Western Indian Chartered AccountantNewsletter are those of the authors or contribution and do not necessarily reflect those ofWIRC. Unsolicited articles and transparencies are sent in at the owner's risk and the publisheraccepts no liability for loss or damage. Material in this publication may not be reproduced,whether in part or in whole, without the consent of WIRC.DISCLAIMER: The WIRC is not in any way responsible for the result of any action taken on thebasis of the advertisement published in the Newsletter. The members, however, may bear inmind the provision of the Code of Ethics while responding to the advertisements.

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Date of Posting : 16th & 17th July, 2012Date of Publishing 12th of Each Month

Regn. No. MH/MR/South-52/2012-14RNI No.: 22878/1975


Inauguration of Direct Tax Refresher Course beginning from15th June, 2012 by Shri S. D. Srivastava, CCIT(Appeal)

CA. Sunil Patodia, RCM, CA. Dhiraj Kandelwal, RCM, CA. Neel Majithia, RCM, CA. Ashok Jain, RCM, CA. Mangesh Kinare, RCM, CA. Sanjeev Lalan,Past Chairman,WIRC, CA . Jay Chhira,Vice Chairman,WIRC, CA. Durgesh Kabra, Chairman,WIRC, CA. Anil Bhandari, Secretary,WIRC, CA. N.C. Hegde, RCM, CA.Pankaj Jain, CCM, CA.Vishnu Agarwal, RCM and CA. Shriniwas Joshi, Past Chairman,WIRC,

CA. Jaydeep N. Shah, President, ICAI lighting the lamp at the conference along with (L-R) CA. Pradeep Agrawal, Chairman, Baroda Branch, CA. Abhijit Kelkar,Chairman, Nagpur Branch, CA. Prasun Kumar Bhattacharyya, Chairman, EIRC, CA K.Vishwanath, Chairman, SIRC, CA. Rajesh Shah, RCM, CA. Durgesh Kabra,Chairman, WIRC, CA. Anil Bhandari, Secretary, WIRC, CA. Kushuwah Mukesh Singh, Chairman, CIRC, Shri Rameshwarlal Kabra, Chief Guest, CA. DurgadasAgrawal, Chairman, NIRC, CA. Nayan Kothari.

2nd ICAI All Region Conference 2012 held on 8th & 9th June in Baroda

Documents

15/- The Institute of July 2012 Chartered Accountants of ... Online Event Registration & Payment Visit For Seminar registration, enquiry contact 3980 2923 / 2922. Cheques should be