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DELHI | MAHARASHTRA | GUJARAT | BENGALARU | KOLKATA
APRIL 2015
ICBC’s First Annual Gala Dinner 2015On March 13th ICBC held its First Annual Gala Dinner, in association with
the High Commission of Canada, at the official residence of Mr Nadir Patel,
High Commissioner of Canada in India, in New Delhi.
Dr. Mukund Rajan, Group Executive Council Member, Tata brand custodian &
chief ethics officer, Tata Sons & Chairman Tata Global Sustainability Council, was the
keynote speaker for the evening. The Canadian Trade Commissioner Services and
Export Development Canada, top management from corporate houses like TATA
and Aditya Birla Group and ICBC members, pan India, such as Bombardier, McCain,
Air Canada, Bell Helicopter etc. attended the event. Mr. Rana Kapoor, founder of
Yes Bank, was also the special guest at the event. There was also a stand-up comedy
performance by Vasu Primlani who is one of the leading top 3 stand-up comedians
of India at the moment. During the evening ICBC honoured Tata group, Aditya Birla
Group, Bombardier and Mr. Rana Kapoor for playing a major role in the economic
engagement between India & Canada.
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InTouchSponsored by:
Events Roundtables/
Meetings @ ICBC
DELHI REGIONAL COUNCIL
4th March 2015
The High Commission of Canada and
the Indo-Canadian Business Chamber
jointly organized a business roundtable
on 4th March, 2015 at Club Canada, High
Commission of Canada with Canada’s
Parliamentary Secretary to the Minister
of International Trade, the Honourable
Parm Gill. The participating Canadian
companies in India discussed about
India’s evolving business climate, the
opportunities and challenges faced
by them in the Indian market and key
areas where Canada could play a role.
9th March, 2015Indo-Canadian Business Chamber in
association with The High Commission
of Canada jointly organized a
roundtable on 9th March, 2015 at Club
Canada, High Commission of Canada
with the Nepalese business delegation
led by Mr. Suraj Vaidya, Senior Vice
President of SAARC Chamber and
immediate past President of the
FNCCI.
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The delegates, comprising of the
CNBEC members, interacted with ICBC
members on emerging opportunities,
challenges and the role Nepal could
play in driving the bilateral trade
relations between the three countries.
24th March 2015Indo-Canadian Business Chamber in
association with The High Commission
of Canada and KPMG jointly organized
a Post Budget Session on 24th March,
2015 at Club Canada, High Commission
of Canada. Ms. Nitika Mehta, Director,
International Tax & Regulatory and
Mr. Harpreet Singh, Director, Indirect
Tax unravelled the impact analysis of
key highlights of direct and indirect tax
proposals. It was followed by a focused
session on Goods & Services Tax (GST)
legislation, covering current status of
GST, framework, specific impact areas
and next steps for readiness.
BANGALORE REGIONAL COUNCIL
25th March, 2015
The Indo-Canadian Business Chamber,
Bangalore Regional Council in
association with the Consulate General
of Canada, Bangalore and KPMG
organised a Post Budget session
on Wednesday, 25th March, 2015 at
Consulate General of Canada, Bangalore
office. Mr. Srinath S, Senior Advisor, KPMG
and Ms. Kanchan Dinakar, Technical
Director, KPMG, BSR & Co, LLP, discussed
the proposals and the devil in the fine
print with our members and guests.
MAHARASHTRA REGIONAL COUNCIL
3rd March, 2015During ICBC’s “Breakfast at the Bar”
series, the guest speaker, Samir Kanabar,
Partner, E&Y, on 3rd March, 2015 deftly
addressed the various limitations in the
budget from the “taxation” perspective.
He shed light on several facts that
had been missed by most voices in
the media. The Q&A session was quite
animated and had to be curtailed due
to a lack of time.
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Connecting with the High Commission of CanadaThe Canadian Trade Commissioner Service and ICBC jointly organized a workshop
titled “Shaping the South – Emerging Smart City Opportunities in Telangana and
Andhra Pradesh” on 30th March, 2015, Lemon Tree Premier, HITEC City, Hyderabad.
The workshop was well attended by leading Canadian Infrastructure and Clean
technology companies recognized globally for their leadership in project
management and engineering services (construction, architecture and design),
transportation, water management, waste management, and building materials.
The evening concluded with a Reception hosted by Mr. Arun Pandeya, on behalf
of Air Canada. As a result of the productive meetings in Hyderabad, the Chamber
will be signing an MOU with the Government of Andhra Pradesh on 29th April, 2015,
in Vishakhapatnam, in the presence of the Chief Minister, Shri Chandrababu Naidu.
Nitika MehtaDirector, International Tax & Regulatory, KPMG
For more information, contact:[email protected]
Income computation and disclosure standards (ICDS): A new framework for computation of taxable income
What is ICDS
On 31st March 2015, The Indian Ministry of Finance notified ten Income Computation
and Disclosure Standards, operationalising a new framework for computation of
taxable income. ICDS are applicable to taxpayers in India who follow the mercantile
system of accounting for the purpose of calculation of taxable income under
the heads ‘Profit and gains of business or profession’ and ‘Income from other sources’.
This has come into effect from the financial year commencing 1st April 2015.
Its impact
Presently, the extant provisions of the Indian Income-tax Act along with the
prescribed rules are the guiding principles to compute the taxable income under
different heads. With this notification, in addition to such provisions and rules,
appropriate adjustments may be required to be undertaken by taxpayers to the
profit/ loss reflected in their financial statements, to bring inconformity to the notified
ICDS, in certain cases. ICDS will not impact how the books of accounts are prepared.
The ten ICDS notified are in relation to:
• Accounting policies • Valuation of inventories
• Construction contracts • Revenue recognition
• Tangible fixed assets • Effects of changes in foreign exchange rates
• Government grant • Securities
• Borrowing costs • Provisions, contingent liabilities and assets
For example, under construction contracts, ICDS do not permit accounting under
the completed contract method, and mandate that only the percentage of
completion method should be applied for recognition of revenue from rendering
of services or construction contracts. This may result in significant difference in
revenue recognised for financial reporting and the revenue to be offered to tax.
Genesis and key features of ICDS
The notification of ICDS is quite timely and important, considering that the timelines
for adoption of Indian Accounting Standards – Ind-AS (standards converging with
IFRS), have also been notified, which permit voluntary adoption for financial year
2015-16, in relation to Indian financial reporting. The government felt a need to
ensure horizontal equity for smooth implementation of Ind-AS from this year,
given that many companies could report using Ind-AS, while others may continue
reporting using the older AS. It was also seen as an opportunity to address certain
accounting issues that have been a subject matter of tax litigation due to diversity
in accounting policies or divergence in views between tax payers and revenue
authorities.
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To help ensure harmony, ICDS are only meant to supplement the extant tax laws
and will not have an over-riding effect on the tax laws, in case of any conflict.
ICDS have been prepared taking existing AS as the base. ICDS emphasise that an
accounting policy should represent true and fair view of income generated from the
business and treatment along with presentation of transaction should be governed
by their ‘substance’ rather than legal form. Also, ICDS require that change in
accounting policy will not be made without reasonable cause, while AS require that
a policy may be changed if it helps in better presentation of the state of affairs of
the company. Another interesting feature is that ICDS do not consider the concept
of prudence. This could give rise to recognising certain income earlier and deferral in
recognition of expenses/provisions, etc. Additionally, ICDS have provided for various
disclosure requirements, though the prescribed form and manner of reporting has
yet not been notified.
Next steps for taxpayers
ICDS have now become a reality and India Inc. needs to gear up to this change:
• The taxable income may be visibly delinked from the accounting income as
they are expected to be based on different standards and principles. While these
standards are applicable for financial year 2015-16, however, immediate impact of
these standards can be witnessed while computing taxable income for advance
tax computation for the first quarter i.e. June 2015 by corporate taxpayers.
• While ICDS do not mandate maintenance of separate books of accounts, however,
a parallel information system may be required to be put in place in order to
comply with these standards and prepare reconciliations between taxable income
and accounting income, especially for large size corporates. This may require
upgradation/changes in IT processes for extracting financial information relevant
from ICDS’ impact perspective.
• To embrace the new change, stakeholders including the management, finance
and account teams may have to be trained and educated on the new framework
for better appreciation of its impact and aid in decision making for tax positions to
be adopted going forward in conformity to ICDS.
While ICDS may act as a facilitator in making IFRS convergence a reality, through
adoption of Ind-AS and reduce tax litigation in the medium term, its implementation
is expected to pose new challenges. As a first step, it is critical for corporates to carry
out a detailed impact analysis to determine the extent of impact and development of
a support system that may be required for smooth implementation of these standards.
With the evolving tax and regulatory landscape in India, be it IFRS converged Ind-AS,
ICDS or the probable game changer, Goods & Services Tax (GST) legislation knocking
on the doors, there can be a paradigm shift in how businesses are run and Indian
corporates certainly have their hands full to enable smooth implementation of these
changes.
Rahul Gupta Managing Director, Smile Security & Surveillance
Rahul Gupta is Managing Director of Smile Security & Surveillance; and is the Chairman of the SME chapter of MAIT (Manufacturers Association of Information Technology).
He is a recognized national leader and champion of the Indian Small & Medium Enterprise segment. His work, both with private enterprise and with government has been recognized and applauded by the industry, specifically by the Indian IT industry.
Dr. Raghava Rau CEO & CO-Founder Big Data Analytics India Pvt Ltd (BDA)
Dr. Rau has played an important role for developing Operations Research solutions for some of key initiatives that helped Dell’s success as a finalist in Franz Edelman Award in 2013.
Franz Edelman Award is a prestigious award from INFORMS that recognizes organizations who showcase excellence in Analytics and Operations Research that results in major impact on client organizations.
Stephen Mathias Partner, Kochhar & Co. Advocates and Legal Consultants
Stephen is a general commercial lawyer with experience in foreign investment, mergers and acquisitions, joint ventures, technology law, venture capital investment and aviation law. Stephen is the co-chair of the firm’s technology law practice and is rated by Global Counsel 500 as the No. 1 lawyer in India for information technology work. He speaks regularly at conferences around the world on doing business in India and outsourcing to India.
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New Member Updates
Hanuman Sharma Executive Director & Group CFO, Dynamatic Technologies Ltd
Hanuman Sharma is an Executive Director and Group CFO of Dynamatic Technologies Limited.
In his current role, he is responsible for Investor Relations, Corporate Structuring, Mergers & Acquisitions, Capital Management, Risk Management, Treasury & Finance, Performance Management, Tax Strategy and Corporate Governance
Sheryl Slater Chief Financial Officer, HSBC India
Sheryl Slater joined HSBC India in November 2013 as Chief Financial Officer with functional responsibility for Finance for all legal entities in India.Sheryl joined HSBC in London in 2001 in the Regulatory reporting team within the Head Office Finance function and from 2007 – 2010 she was Head of Group Capital Planning until she moved to Hong Kong.
From 2010 - 2013, she was Head of Asset, Liability & Capital Management (‘ALCM’) for the Asia-Pacific region. Prior to joining HSBC, she spent three years working at the Office of the Superintendent of Financial Institutions (‘OSFI’) in Canada. Sheryl has a Bachelor’s degree with Honours in Mathematics from University of Waterloo in Canada.
Vijendra Gairola Founder, InCa Synergy Advisory LLP
A graduate of Schulich School of Business (Toronto), VJ has over 18 years of experience in Banking and Trade Creation in North America, South America and Asia where he held progressively senior positions, shaping and supporting business interests of various organizations. Under VJ’s leadership, EDC grew its Indian portfolio to over USD 2 billion in debt with India becoming third largest revenue contributor to EDC. A well-recognized expert in Canada-India trade and Banking, VJ is a frequent speaker at large gatherings of Canadian businesses organized by the Canadian federal and provincial governments and is often quoted by CBC radio, The Globe and Mail and other trade magazines. VJ also sits on the Board of Indo-Canada Business Chamber as well as on the Advisory Board of Zone Start-up (a start-up accelerator that is a JV between Bombay Stock Exchange and Ryerson of Canada) as well as PE fund run by ZS.
On the Horizon
ICBC’S HEALTHCARE DELEGATION TO CANADA, MAY 18 – 23 MAY, 2015, CANADA
Canada India Foundation (CIF) is organizing a Canada India Healthcare Summit 2015 on May 19-20, 2015, in Toronto, in partnership with Ontario and the Indo-Canadian Business Chamber (ICBC).
Click here for more information
Contact Us DELHI REGIONAL COUNCIL4-7C, DDA Shopping Centre,New Friends Colony,New Delhi 110025Fax: + 91 11 4710 7399Email: [email protected]
GUJARAT REGIONAL COUNCIL 14, Aaryans Corporate Park, Near Shilaj Railway Crossing, Thaltej-Shilaj Road, Thaltej, Ahmedabad 380 059 Tel: +91 98 2467 5954 Email : [email protected]
MAHARASHTRA REGIONAL COUNCIL D-25, Dhanraj Mahal, CSM Road, Apollo Bunder, Mumbai 400001Fax: +91 22 6654 5666 Tel: +91 22 6654 5660 Email: [email protected]
BANGALORE REGIONAL COUNCIL CGI Information Systems and Management Consultants Pvt Ltd,Tower 2. Electronic City Phase I (West), Bangalore 560100Fax: +91 080 6642 1200Tel: +91 080 6642 2222Email: [email protected]
EAST & NORTH EAST REGIONAL COUNCIL‘VISA House’, 4th floor,8/10 Alipore Road,Kolkata 700 027Fax: +91 33 3011 9003Tel: +91 33 3011 9000Email: [email protected]
ICBC TeamNadira Hamid Chief Executive OfficerEmail: [email protected]
Rashmi Mallick Manager, Finance & AdminEmail: [email protected]
Pallavi Saxena Manager, Bangalore Regional CouncilTel: +91 080 6642 2222Email: [email protected]
Pikee Sharma Manager, Coordination & Communication, Delhi Regional CouncilEmail: [email protected]
Ms. Bina Awasthi Executive Director, Gujarat Regional CouncilTel: +91 98 2467 5954Email: [email protected]
Ms. Olinda D’mello Executive Co-ordinator, Maharashtra Regional CouncilTel: +91 22 6654 5660 Email: [email protected]
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