THE CTC NEWS | August 2019 · 2019-08-01 · 1 06-08-2019 Indirect Taxes IDT SC on Issues in Refunds under GST Law (For IDT SC Members Only) AV Room, 4th Floor, Jai Hind College,

www.ctconline.orgTHE CTC NEWS | August 2019 1



FORTHCOMING EVENTS

Interested members may enrol from the Chamber’s website : www.ctconline.org to make the payment online. Outstation members are requested to make the

payment online or send DD/at par Cheque in favour of The Chamber of Tax Consultants. Debit & Credit Cards are accepted.

SR.

NO.

DATE COMMITTEE PROGRAMME DESCRIPTION VENUE PG.

NO.

1 06-08-2019 Indirect Taxes IDT SC on Issues in Refunds under GST Law

(For IDT SC Members Only)

AV Room, 4th Floor, Jai Hind College,

Churchgatge,Mumbai-400 020

5

2 09-08-2019 Study Circle &

Study Group

Study Group on Recent Judgements under

Direct Taxes (For SG Members Only)

Babubhai Chinai Hall, IMC,

Churchgate, Mumbai-400 020

6

3 10-08-2019 Student,

Membership &

Public Relations

5th CTC Football Cup Dr. Antonio Da Silva High School, S.

K. Bole Road, Opp. Kabutarkhana,

Dadar (W),Mumbai-400 028

6

4 13-08-2019 Student Interactive Workshop for Students on GST

Annual Returns and GST Audit

The Mysore Association Auditorium,

Conference Room, 1st Floor,

393, Bhaudaji Road, Matunga,

Mumbai-400019

4

5 13-08-2019 Direct Taxes ISG on Recent Case laws under Direct Tax

Laws (For ISG Members only)

CTC Conference Room, 3 Rewa

Chambers, Ground Floor, 31, New

Marine Lines, Churchgate, Mumbai.-400

020

6

6 17-08-2019 Direct Taxes Half Day Workshop on Practical & Legal

Issues in Tax Audit

Walchand Hirachand Hall, 4th Floor,

IMC, Churchgate, Mumbai-400 020

7

7 20-08-2019 RRC Capital Market SC on Essence of Mutual

Funds

CTC Conference Room, 3 Rewa

Chambers, Ground Floor, 31, New

Marine Lines, Mumbai-400020.

6

8 22-08-2019 Bengaluru Study

Group

Study Group on Case Study on Interplay on

Section 10(38) and MAT Calculation, DTAA

Under Tax Treaties and DTAA and MLI in

context of Splitting up of contract

FKCCI, 3rd Floor, Hall No. 4, K. G.

Road, Bengaluru-560 009

5

9 23-08-2019 Membership &

Public Relations

4th Late Narayan Verma Memorial Lecture

Meeting (Jointly with BCAS Foundation,

Dharam Bharti Mission and Public Concern

for Governance Trust)

Indian Merchants’ Chamber, Walchand

Hirachand Hall, 4th Floor, Churchgate,

Mumbai-400 020

9

10 05-09-2019 Student Workshop on Tax Audit for Students Babubhai Chinai Hall, IMC,

Churchgate, Mumbai- 400 020

4

11 05-09-2019 Indirect Taxes IDT SC on Issues under GST relating to Real

Estate Sector (For IDT SC Members Only)

AV Room, 4th Floor, Jai Hind College,

Churchgatge, Mumbai-400 020

5

12 07-09-2019 Membership &

Public Relations

Half day Seminar on Audit and FEMA at

Nashik

The Institute of Engineers Hall, PWD

compound, Near City Centre Mall,

Nashik-422002

7

13 07-09-2019 Accounting &

Auditing

Workshop on Assurances & Compliances Babubhai Chinai Hall, IMC, Churchgate 9

14 — — Chamber’s Study Group at Hyderabad- New

Initiative

— 5

15 — — Renewal Notice 2019-20 — 8

16 — — Unreported Decisions — Tribunal — 10

17 — — Unreported Decisions — Service Tax — 11


Day & Date:

Tuesday, 13th August, 2019

Time:

1:30 p.m. to 5:30 p.m.

Day & Date:

Thursday, 5th September, 2019

Time:

2.30 p.m. to 6.00 p.m.

Sr. No. Topics Speakers

1. Session I – GST Annual Return

• Basicsof GSTreturnfilingmechanism• Clause by clause analysis of FORM GSTR-9 with practical examples

• Reconciliation of GSTR-3B vs. GSTR-2A – Practical challenges

CA Raj Khona

2. Session II – GST Audit

• Scope of GST audit

• Clause by clause analysis of FORM GSTR-9C

• Critical areas to be seen or audited by the articled assistants

CA Keval Shah


1. Basicsof Form3CD,documentation,uploadingandfilingof TaxAuditReport CA Chintan Gandhi

2. Legal & Practical Issues in Tax Audit CA Ashok Mehta

Fees:

` 381/- + ` 69/- (18% GST) = ` 450/-

Interactive Workshop for Students on GST Annual Returns and

GST AuditVenue: The Mysore Association Auditorium, Conference Room, 1st Floor, 393, Bhaudaji Road,

Matunga, Mumbai-400 019

STUDENT COMMITTEE

Chairperson: Varsha Galvankar | Vice Chairman: Vitang Shah | Vice Chairperson: Niyati Mankad

Convenors: Charmi G. Shah | Sachin Maher | Advisor: Ajay R. Singh

STUDENT COMMITTEE

Chairperson: Varsha Galvankar | Vice Chairman: Vitang Shah | Vice Chairperson: Niyati Mankad

Convenors: Charmi G. Shah | Sachin Maher | Advisor: Ajay R. Singh

Fees:

` 254/- + ` 46/- (18% GST) = ` 300/-

Withtheduedatesof filingof GSTAnnualReturnsandAuditfastapproaching, we are pleased to announce an Interactive Workshop

uniquely designed for the articled assistants. The workshop would

be conducted by eminent GST experts who will explain the entire

FORM GSTR-9/9C clause by clause and would deal with the various

issues / complexities involved by giving practical examples. Also,

key focus areas which articled assistants should keep in mind while

conducting the GST Audit would be explained. The detailed program

structure is provided hereunder.

In the present scenario for the practicing professional, the

responsibility has increased manifold. Cost of negligence is very

high. Articled assistants are the initial executors for conducting Tax

Audit.

• Is your articled assistants equipped to carry tax-audit?

• Is your articled assistants understanding impact of Standard

Auditing for carrying out tax Audit?

• Is your articled assistants able to co-relate understanding of

income-tax while dealing with tax audit?

• Is the articled assistants cautious about preparing proper

workingfilefortaxaudit?

For this, Training is the need of the hour. With the object

of enhancing students’ knowledge and skills required in the

execution of tax audit, the Student Committee of The Chamber

of Tax Consultants has organized a Workshop on Tax Audit on

5th September, 2019.

The members are requested to encourage their articled assistants and

other staff to participate in the student programs.

Workshop on Tax Audit for StudentsVenue: Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020


BENGALURU STUDY GROUP

Convenors: Narendra Jain, Vishnu Bagri

Co-ordinators: Tata Krishna, Hanish S.

Day & Date:

Thursday 22nd August, 2019

Time:

5.00 p.m. to 8.15 p.m.


1. • Case Study on Interplay on section 10(38) and MAT Calculation

• Case Study on DDT under Tax Treaties

• Case Study on DTAA and MLI in the context of Splitting up of contract

CA Shivanand Nayak

CA Bibhuti Ram Krishna

Fees

Member ` 4,200 + ` 756 (18% GST) = ` 4,956 (12 Months)

Member ` 500 + ` 90 (18% GST) = ` 590 (per Month)

Non-Member ` 600 + ` 108 (18% GST) = ` 708 (per Month)

Bengaluru Study Group MeetingVenue: FKCCI, 3rd Floor, Hall No. 4, K. G. Road, Bengaluru-560 009

INDIRECT TAXES COMMITTEE

Chairman: Pranav Kapadia | Co-Chairman: Atul Mehta | Vice Chairman: Sumit Jhunjhunwala

Convenors: Hemang Shah | Keval Shah | Kush Vora | Advisors: A. R. Krishnan, Rajiv Luthia

IDT Study Circle Meeting (For IDT SC Members only)Venue: AV Room, 4th Floor, Jai Hind College, Churchgate

Topic: Issues in Refunds under GST Law

Group Leader : CA Jignesh Kansara | Chairman : CA Samir Kapadia

IDT Study Circle Meeting (For IDT SC Members only)Venue: AV Room, 4th Floor, Jai Hind College, Churchgate

Topic: Issues under GST relating to Real Estate Sector

Group Leader : CA Kush Vora | Chairman : CA Naresh Sheth

Day & Date:

Tuesday 6th August, 2019

Time:

5.30 p.m. to 8.30 p.m.

Day & Date:

Thursday 5th September, 2019

Time:

5.30 p.m. to 8.30 p.m.

Chamber’s Study Group at Hyderabad The Chamber of Tax Consultants is pleased to announce formation of a new Study Group at Hyderabad for

thebenefitof itsmembers inandaroundHyderabadCity.Thepurposeof theStudyGroupistoenablethemembers to have discussion based learning on variety of topics including Direct Tax, Indirect Tax, International

Tax and also Allied Laws. The Study Group will have at least one meeting in a month and will try to cover the

topics as per the suggestions from the members based at Hyderabad. The meeting of the Study Group may have

one or more speakers / group leaders depending on the subject involved.

Eminent faculties will be leading the discussion for this group. The discussion at the Study Group will focus

on various day-to-day issues being faced by the professionals and will cater to the needs of the professionals as

may arise from time to time.

TheChamberfirmlybelievesthatthemembersatHyderabadwilltakethemaximumadvantageof thisnewStudyGroup.

Fees from August 2019 to March, 2020 is ` 6,200/- + ` 1,116/- (18% GST) = ` 7,316/-. Interested members can make their payment

by DD/Cheque in the favour of “The Chamber of Tax Consultants or visit our website www.ctconline.org for online payment.

The members interested to join the above study group are requested to inform about their willingness to join by sending an e-mail

to: [email protected] or message any of the following co-ordinators at Hyderabad:

1) CA Manindar Kakarla (9700734609).

2) CA Neelesh Vithlani (9246344232/9494440232).

3) CA Ram Murthy T. (9848139153).

4) CA Ravi Ladia (9985722713).

5) CA Samba Murthy P. (9490412501).

TheMeetingforthemonthof August2019willbefinalisedsoonandthedetailsforthesamewillbeinformedtothemembersinduecourse.

New

Initiative


DIRECT TAXES COMMITTEE

Chairman: Devendra Jain | Vice Chairman: Abhitan Mehta | Dinesh Poddar

Convenors: Dharan Gandhi | Nimesh Chothani | Viraj Mehta | Advisor: Mahendra Sanghvi

Intensive Study Group Meeting (For ISG Members only)Venue: CTC Conference Room, 3 Rewa Chambers, Ground Floor, 31, New Marine Lines, Churchgate,

Subject : Recent case laws under Direct Tax Laws

Group Leader : CA Shailesh Bandi

Day & Date:


Time:

6.00 p.m. to 8.00 p.m.

STUDY CIRCLE & STUDY GROUP COMMITTEE

Chairman: Ashok Sharma | Co-Chairman: Dilip B. Sanghvi | Vice Chairman: Sanjay Choksi

Convenors: Dhaval Shah | Dinesh R. Shah | Dipesh Vora | Advisor: Paras K. Savla

Study Group Meeting (For SG Members Only)Venue: Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020.

Subject : Recent Judgments under Direct Taxes | Group Leader : Mr. Ajay R. Singh, Advocate

Day & Date:

Friday, 9th August, 2019

Time:

6.15 p.m. to 8.00 p.m.

STUDENT COMMITTEE

Chairperson: Varsha Galvankar | Vice Chairman: Vitang Shah | Vice Chairperson: Niyati Mankad Convenors: Charmi G. Shah | Sachin Maher | Advisor: Ajay R. Singh

MEMBERSHIP & PUBLIC RELATIONS COMMITTEE

Chairman: Rajesh P. Shah | Co-Chairman: Sachin Gandhi | Vice-Chairman: Kartik Badiani Convenors: Ashita Shah | Premal Gandhi | Advisor: Bhavesh Vora

5th CTC Football CupVenue: Dr. Antonio Da Silva High School, S. K. Bole Road, Opp. Kabutarkhana, Dadar (W),

Mumbai-400 028.

Day & Date:

Saturday, 10th August, 2019

Time:

2.30 p.m. to 8.00 p.m.

The Student Committee and Membership & Public Relations Committee has organised the 5th edition

of the CTC Football Cup on special turf, the details of which are as under:

Duration of each match 25 minutes plus 5 minutes half time break

Each Team consist of 7 players plus 2 rolling substitutes

Participants allowed Members of CTC, their friends, family members and Articled/Trainees

Mandatory for players1. To wear T-shirt, shorts & sports shoes during the Tournament. (Stud Shoes shall not be allowed).2. To report at the venue on time.3. Tobephysicallyfit(theCTCororganisersshallbeinnowayresponsibleforanyinjuryorhealthproblemsoccurringtoanymember/

guest.)Prizes will be awarded to the Winning Team, Runner-up Team and for Overall Best Player. Participation Trophy/Certificateswillbegiventoallparticipants.Therulesshallbeintimatedtotheplayersinadvance.Kindly note

1. Players’selection/allocationtoateamforindividualenrolmentsshallbedonebytheorganisers,whichshallbefinal&binding.2. Decisions of CTC, its OfficeBearersandtheMatchRefereewillbefinalandbindingonalltheparticipantsandsupporters.

RRC COMMITTEE

Chairman: Mehul Sheth | Vice Chairman: Bhavik R. Shah | Ankit Sanghvi

Convenors: Darshak Shah | Pratik Doshi | Advisor: Kishor Vanjara

Day & Date:


Time:

6.00 p.m. to 8.00 p.m.

Capital Market Study Circle MeetingVenue: CTC Conference Room, 3 Rewa Chambers, Ground Floor, 31, New Marine Lines, Mumbai

Subject: Essence of Mutual Funds

Speaker: Mr Nikhil Mehta, Consultant Trainer and faculty at NSE,NISM and various reputed institutions,ConductsTrainingprogramsonMutualFunds,Debtandotherfinancialproducts,financialplanning and Investments


DIRECT TAXES COMMITTEE

Chairman: Devendra Jain | Vice Chairman: Abhitan Mehta | Dinesh Poddar

Convenors: Dharan Gandhi | Nimesh Chothani | Viraj Mehta | Advisor: Mahendra Sanghvi

Half Day Workshop on Practical & Legal Issues in Tax AuditVenue: Walchand Hirachand Hall, 4th Floor, IMC, Churchgate

Day & Date:

Saturday, 17th August, 2019

Time:

9.30 a.m. to 1.30 p.m.

Tax audit is something which is very close to a Chartered Accountant (‘CA’)

as it remains in the exclusive domain of a CA. The Income-tax Department

also heavily rely upon the information furnished by the CA in the tax-audit

report. As a result, Form 3CD undergoes constant changes so as to get

more and more relevant information for the Department.

It becomes imperative for a CA to understand the requirement of reporting

under various clauses of the tax audit report in this increasing complex

environment involving ICDS, GST etc. Also, the law keeps on evolving

with new judgments cropping up on various issues that are required to be

reported in the tax audit report.

With a view to have a clause-by-clause analysis of the Tax audit report, the

Direct Tax Committee has organised a Half-day Workshop on the subject.

There shall be two sessions and both the speakers shall be allotted certain

clauses of the tax audit report.


1. Tax Audit - It would cover clause by clause analysis with reporting requirements under clause

1 to 12, 15 to 20 and 22 to 26 and clause 29A, 29B, 30A, 30B, 36A, 42, 43 of Form 3CD, legal

issues in applicability of tax audit u/s. 44AB, 44AD and 44ADA, in presumptive taxation cases

andcalculationof limits,e-filing issues,TaxAuditDocumentation,andrelevantrecent judicialpronouncements dealing with the disclosure requirement of the Tax Audit Report.

CA Anil Sathe

2. Tax Audit - It would cover clause by clause analysis with reporting requirements under

clause 13 (ICDS), 14, 21 and 27 to 41(Except Clause 30A, 30B, 30C) of Form 3CD, Tax

Audit Documentation and relevant recent judicial pronouncements dealing with the disclosure

requirement of the Tax Audit Report.

CA Mahendra Sanghvi

Fees

Member ` 800/- + ` 144 (18% GST) = ` 944/-

Non-Member ` 1,000/- + ` 180 (18% GST) = ` 1,180/-


1. Practical & Legal Issues in Tax Audit Emminent Speaker

2. Revised Audit Report under Companies Act Emminent Speaker

3. FEMA from the auditor’s perspective Emminent Speaker

Fees

Member ` 636 + ` 114/- 18% GST = ` 750/-

Non-Member ` 847 + ` 153/- 18 % GST = ` 1,000/-

Interested members may issue cheque in favour of The Chamber of Tax Consultants or visit website www.ctconline.org for online

payment. For Registration at Nashik, kindly contact 1) CA K. M. Birari (M) 9420694400 2) CA Rohan Kulkarni - (M) 9947549998



Half day Seminar on Audit and FEMA at NashikVenue: The Institute of Engineers Hall, PWD Compound, Near City Centre Mall, Nashik-422002

Day & Date:

Saturday, 7th September, 2019

Time:

10.00 a.m. to 3.00 p.m.

Tax audit is something which is very close to Chartered Accountant

as it remains in the exclusive domain of a CA. Form 3CD undergoes

constant changes so as to get more and more relevant information

for the department. The law keeps on evolving with new judgments

cropping up on various issues that are required to be reported

in the tax audit report. Also the Reporting Requirement under

the Companies Act, 2013 have undergone changes which needs

deliberations.

It is also imperative to study FEMA through Financial Statements.

With a view to have analysis of Tax audit report, Reporting under

the Companies Act, 2013 and FEMA from auditor’s perspective, the

Membership & Public Relations Committee has organised a half day

Seminar at Nashik.

The details are as follows.


RENEWAL NOTICE – 2019-20Dear Members,

SUB: PAYMENT OF ANNUAL MEMBERSHIP FEES FOR 2019-20

1st April, 2019

It’s our privilege to have been of service to you over the years. We truly appreciate and value your association. It’s time to renew annual membership and subscription of The Chamber’s

Journal, Study Group and Study Circle Meetings and other subscription of The Chamber of Tax Consultants (“The Chamber”). The renewal fees for Annual Membership, Study Group

andStudyCircleandotherSubscriptionforthefinancialyear2019-20fallsdueforpaymenton1stApril,2019.Wethankyouforyoursubscription.Yourinvolvementis importantandvery much appreciated. We hope you will always continue to support The Chamber in its activities and growth as done in the past.

ThankingYou,

For the Chamber of Tax Consultants

CA Ketan L. Vajani

Hon. Treasurer

Sr.

No.

Particulars Fees GST @18% Total

I MEMBERSHIP FEES (YEARLY - RENEWAL)

1 ORDINARYMEMBERSHIPFEES 2,200 396 2,596

2 ASSOCIATE MEMBERSHIP FEES 5,000 900 5,900

3 STUDENT MEMBERSHIP FEES 250 45 295

II CHAMBER'S JOURNAL SUBSCRIPTION - YEARLY (HARD COPIES)

1 JOURNAL SUBSCRIPTION - LIFE MEMBERS 1,200 0 1,200

2 JOURNAL SUBSCRIPTION - NON MEMBERS 2,100 0 2,100

3 JOURNAL SUBSCRIPTION - STUDENT MEMBERS 700 0 700

III CHAMBER'S E-JOURNAL SUBSCRIPTION (SOFT COPIES)

1 E-JOURNALSUBSCRIPTION-LIFEMEMBERS(YEARLY) 700 126 826

2 E-JOURNALSUBSCRIPTION-NONMEMBERS(YEARLY) 1,000 180 1,180

3 E-JOURNALSUBSCRIPTION-STUDENTMEMBERS(YEARLY) 700 126 826

4 E-JOURNAL SUBSCRIPTION - SINGLE JOURNAL 200 36 236

IV ITJ SUBSCRIPTION

1 INTERNATIONAL TAX JOURNAL SUBSCRIPTION 2,000 0 2,000

V STUDY CIRCLES & STUDY GROUPS (RENEWAL)

1 STUDYGROUP(DIRECTTAXES) 2,200 396 2,596

2 STUDYCIRCLE(DIRECTTAXES) 1,750 315 2,065

3 STUDYCIRCLE(INTERNATIONALTAXATION) 1,500 270 1,770

4 STUDYCIRCLE(INDIRECTTAXES) 2,000 360 2,360

5 STUDYCIRCLE(ALLIEDLAWS) 1,500 270 1,770

6 SELF AWARENESS SERIES 600 108 708

7 INTENSIVESTUDYGROUPONDIRECTTAX 1,750 315 2,065

8 FEMASTUDYCIRCLE 1,500 270 1,770

9 STUDYGROUPONACCOUNTING&AUDITING(ReferNotebelow) 1,800 324 2,124

10 CAPITALMARKETSTUDYCIRCLE(ReferNotebelow) 1,800 324 2,124

11 PUNESTUDYGROUP 3,500 630 4,130

12 BENGALURUSTUDYGROUP 4,200 756 4,956

(Note: 10% Discount applicable for the registration of 3 or more Study Circles & Study Groups)

Notes:

1. The Managing Council has decided to extend rollover benefit for one year to the Members of the following Study Circlesa) Intensive Study Group on IND-AS (Renamed as Study Group on Accounting & Auditing)

b) Capital Market Study Circle

Accordingly those members who have enrolled for these Study Circles in F.Y. 2018-19 need not renew their subscription for F.Y. 2019-20.

2. Members are requested to visit the website www.ctconline.org for online payment.

3. Payments should be made by Account Payee Cheque/Demand Draft in favour of “THE CHAMBER OF TAX CONSULTANTS”. Outstation members are requested to send payments only

by “Demand Draft or At Par Cheque”.

4. A consolidated Cheque/Draft may be sent for all payments.

5. Please also update your Mobile number & e-mail address to ensure receipt of regular updates on activities of The Chamber.

6. Please write your full name on the reverse of Cheque/DD.

7. Kindly pay your membership fees for uninterrupted service of the Chamber’s Journal.

8. Members are requested to download the Renewal Form from Chamber’s website www.ctconline.org

9. RenewalNoticesarealsosentseparatelyandmembersarerequestedtofillupthesameandsendittoTheChamber’sofficealongwiththecheque.10. Renewal Notice contains entire information of Members as per CTC database. In case of any change in information of Member as shown in form, kindly provide updated information along

with the form.


ACCOUNTING AND AUDITING COMMITTEE

Chairman: Heneel K. Patel | Vice Chairman: Tejas Parikh

Convenors: Arpita Gadhia | Deepak Shah | Advisor: Jayesh Gandhi

Workshop on Assurances & CompliancesVenue: Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020

Day & Date:

Saturday 7th September, 2019

Time:

9.30 a.m. to 6.30 p.m.

ABOUT THE PROGRAMME

Auditing profession has continued to see unprecedented change. The accelerating pace of change in advancing technologies relating to data, process automation, advanced analytics, cognitive and emerging innovations will play a pivotal role. New technologies are important and need to be matched with the people who know how to effectively use these tools. Clients are increasingly expecting the auditor to provide a more forward looking view and insight that can add value to their organisations.

CompaniesActhasfinallyprovidedforan independentstatutoryregulator - ‘NFRA’ for matters relating to accounting and auditing standards. With effect from April 1, 2018, new audit reporting formats are applicable that have completely changed the manner of audit reporting. In view of the comprehensive changes which have been made by ICAI, there is a need to provide guidance to the members so that they can discharge their reporting responsibilities under these standards Effectively.

Accordingly, Accounting and Auditing Committee (A/A) of The Chamber of Tax Consultants is pleased to organize a workshop on Assurances & Compliances where you can interact with subject matter experts and deliberate on the key aspects.

The programme would facilitate understanding various recent developments in Companies Act and auditing of the financial statements including the changes in reporting requirement under SA 700, 701 & 720.

WHO SHOULD ATTEND

i) Auditors involved in verification of financial statements preparedunderapplicablefinancialreportingframework.

ii) Accountants department members involved in the daily

operations.

Fees:

Member ` 1,250/- + ` 225/- (18% GST) = ` 1,475/-

Non-Member ` 1,500/- + ` 270/- (18% GST) = ` 1,770/-

Sr.

No.

Topics Speakers

1. Recent Amendments under the Companies Act and Auditors Responsibilities CA Hemal Shah

2. Audit Approach – Small & Medium Enterprises CA Milan Mody

3. Audit Evidence & Written Representations CA Murtuza Kachwala

4. Audit Conclusions CA Khushroo Panthaky

— Forming Opinion & Reporting on Financial Statements

— Communicating Key Audit Matters [in the context of small and medium enterprises]

— Responsibilities relating to other information

4th Late Narayan Verma Memorial Lecture Meeting -

Accoutability of Auditors (Jointly with BCAS Foundation,

Dharam Bharti Mission and Public Concern for Governance Trust)Venue: Indian Merchants’ Chamber, Walchand Hirachand Hall, 4th Floor, Churchgate, Mumbai-400 020

Speaker: Mr. Yazdi Malegam

Topic: Accountability of Auditors

Day & Date: Friday, August 23, 2019

Time: 5.30 - 6.00 p.m. - Tea and Biscuits

6.00 - 7.30 p.m. Lecture and Awards

Auditors have been in public scrutiny in recent times and the

shareholders expectations of authors’ accountability has undergone

a drastic change. In these dynamic times, it is crucial to come out

with a clear understanding of auditors’ role and the extent of their

accountability.

The Chamber is therefore, pleased to be a part of the 4th Late

Narayan Verma lecture meeting on this topic with BCAS Foundation,

Dharma Bharti Mission and Public Concern for Governance Trust,

whichwillbeaddressedbyShriY.H.Malegam.Asapartof thismeeting, the Narayan Verma Memorial awards will also be presented

to individuals that have done outstanding social work.

All are cordially invited to attend the meeting.




UNREPORTED DECISIONS OF TRIBUNAL

By Ajay R. Singh, Advocate

1. S. 37 – Business expenditure – commission paid to intermediating or Sole Agent for the getting the order and rendered various post sale services - The payment has arisen out of contractual obligation – allowable as business expenditure.

The assessee, a manufacturer of fencing products. During the course of assessment proceedings, the AO noticed that the assessee had claimed commission expenses of ` 1,13,60,951/- and out of it ` 92,56,287/- was paid to only one party M/s. Arab Link Equipment Trading (ALET) which is based in Dubai. On further verification, the AO found that M/s. Consolidated Contractors Co. had given the purchase order directly to ALET, who in turn gave it to the assessee. As per the AO this means that ALET is purchasing goods from the assessee, who is supplying the material to the site which was given in the purchase order and any commission payment should be substantiated by the genuineness of payment and services rendered. The AO after perusing the e-mails filed by the assessee noted that M/s. Consolidated Contractors Co. has appointed ALET as a sole agent of the present assessee. The AOthuscametoafindingthatM/s.ConsolidatedContractorsCo. has appointed ALET as the agent of the assessee and had directed the assessee to pay the difference in amount between the quoted price to ALET and hence the services rendered by ALET in getting the contract to the assessee from M/s. Consolidated Contractors Co. are not proved. As per the AO, it is M/s. Consolidated Contractors Co. who has appointed ALET to be the sole agent of the assessee in UAE. On the basis of above reasons, the AO disallowed the commission expenses of ` 92,56,287/- claimed by the assessee to have been paid to ALET.

The ITAT held that the letter dated 01.04.2009 written by ALET to the assessee for supply of fencing products to M/s. Consolidated Contractors Co. prove the genuineness of services rendered by ALET to the assessee. ALET is the main intermediary company for the sale by the assessee to M/s. Consolidated Contractors Co. This fact is accepted by the AO. Also ALET has procured the order and rendered various post sale services such as customs clearance at Muscat; arrange the transport from the port to the site; arrange goods for inspection; passing of the bills and getting payments released from M/s. Consolidated Contractors Co. The payment has arisen outof contractualobligation.Therefore,theappealfiledbytherevenue is dismissed.

ACIT 24(1) vs. A-1 FENCE PRODUCT CO., ITA NO.: 5346/M/2016, date: 13/05/2019 (Mum.)(Trib.)

2. S. 45: Capital Gains - Gains on sale of FSI/TDR rights received has no cost of acquisition incurred - as these are generated by the plot itself - no capital gains assessable to tax:

The assessee has sold TDR/FSI development rights for ` 6,00,00,000/- which was claimed as exempt from tax. According to the AO the transfer of development rights clearly attracts the capital gain tax as it is a transfer of capital asset. Accordingly, the AO determined the market value of the TDR/FSI rights at ` 8,76,55,000/- which was the value as per stamp duty valuation as against ` 6,00,00,000/- declared from sale of TDR/FSI and accordingly determined the capital gain in the hands of the assessee at ` 3,80,00,000/- as against nil returned by the assessee.

The Ld. CIT(A) has held that the assessee has permitted the builder load FSI/TDR on the plot and construct the new building for which the assessee has received ` 6,00,00,000/-. The Ld. CIT(A) has further held that as the TDR rights have arisen only on account of amendment in DC Regulations 1991 and therefore there is no cost of acquisition and no capital gains tax was attracted. The Ld. CIT(A) also held that since there is no sale of land and building, the provisions of section 50C of the Act were also wrongly invoked by the AO. Finally ld. CIT(A) deleted the addition made by the AO on account of capital gain on sale of TDS/FSI rights by holding that the same is not chargeable to capital gain tax.

The ITAT upheld the order of CIT(A) relying on the Hon’ble Bombay High Court in the case of CIT vs. Sambhaji Nagar Co-op.

Hsg. Society Ltd. (2015) 370 ITR 325 (Bom.) wherein it has been held that in case of sale of FSI/TDR rights by the assessee to the developers which have accrued in favour of the assessee following promulgation of Development Control Rules for Greater Mumbai, 1991 and the said developmental right were generated by the plot itself and there is no cost of acquisition and therefore not liable for any capital gain tax. Therefore, dismissed the appeal of the Revenue.

ACIT-25(2) vs. Dilip R. Shringarpure, ITA No. 6103/Mum/2017, DOH: 26/06/2019 (Mum)(Trib)

3. S. 36(1)(vii) : Bad debts-Law after 1989-Assessee writing off debts in its books of account - Sufficient-Not necessary for assessee to establish debt became irrecoverable.

The assessee is a company engaged in the business of manufacture and sale of gear boxes, couplings etc. and during the relevant year also had an undertaking located at Chennai engaged in development of software i.e., Computer Aided Design (‘CAD’). The assessee maintains separate sets of accounts with respect to its said two businesses. During the course of scrutiny assessment, AO found that the assessee debited an aggregate amount of `80,09,923/-initsprofit&lossa/ctowardsbaddebtswrittenoff. AO declined the claim of bad debts by observing that the assessee was not able to prove as to how the said debts have become ‘bad debt’. Onus was on the assessee to prove the “debts’ had become ‘bad debts’. AO concluded that since the assessee has failed to substantiate its claim with any document whatsoever, it cannotbeallowed.TheCIT(A)confirmedtheactionof theAO.

The Tribunal held that during the course of the assessment proceedings the assessee duly furnished details of the aforesaid amountswrittenoff initsprofit&lossa/c.forthesubjectyearinter alia containing names of the party, amount written off and the particulars of the years in which the debts so written off were considered as income in the books and also furnished necessary explanation in this regard as desired by the A.O. It was explained to the A.O that subsequent to the amendment by the Direct Tax Laws (Amendment) Act, 1987 with effect from 1st April, 1989 the pre-conditions for allowance of a bad debts written off as per section 36(l)(vii) read with section 36(2) namely, (a) the bad debt in question must be written off as irrecoverable in the accounts of the assessee for the relevant previous year; and (b) the amount of bad debt must have been taken into account in computing the income of the assessee at any time prior to its write off in the accounts,havebeensatisfiedinthecaseof theassessee.Thereis no condition of proving that debt has become bad during the relevant assessment year. However, for disallowing the amount,


Note : THE WHOLE DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG

UNDER SEMINAR PRESENTATIONS - UNREPORTED DECISIONS

UNREPORTED DECISIONS (SERVICE TAX)

By Vinay Jain & Sachin Mishra, Advocates

1. Whether manufacturing of beer affixing the Brand name of another entity under a Bottling/Brewing Agreement would be taxable under “Business Auxiliary Services” on the count that it amounts to “in relation to production and processing of goods for or on behalf of the client”? Whether on merger/amalgamation of an undertaking of service provider with the service recipient, ‘Appointed Date’ or ‘Effective Date’ shall be consider to ascertain the taxability of the activity undertaken by such undertaking of service provider to the service recipient?

Facts and Pleading: M/s SAB Miller Breweries Pvt. Ltd (hereinafter referred to as ‘the Appellant’) has been engaged in the business of brewing and bottling of Beer. The Appellant entered into a bottling agreement with M/s SKOL Breweries Ltd. (‘SKOL’), under which the Appellant manufactured beer for SKOL. The Beer was sold after affixing SKOL’s brand name ‘Fosters’. Title, property and ownership of ‘Fosters’ beer manufactured by the Appellant vested solely with the Appellant. The said manufactured beer is sold by Appellant to ‘SKOL’ or buyersnominatedbySKOLforoutrightpricefixedbySKOL.The Appellant duly receives sale price/consideration for beer so sold by Appellant. During the relevant period, the aforesaid undertaking of the Appellant merged with SKOL (Merged entity i.e. SAB Miller India Limited) under a Scheme of Arrangement under Section 391 to 394 of the Companies Act, 1956 with an ‘Appointed Date’ of 31.03.2009 and ‘Effective Date’ of 22.06.2012.

The Department alleged that the Appellant is rendering services in relation to the manufacture or processing of non-excisable goods (Alcohol) for or on behalf of SKOL which is covered underamendeddefinitionof ‘BusinessAuxiliaryService’underSection 65(105) (zzb) read with Section 65(19) of the Finance Act, 1994. The Department further alleged that the Scheme of Arrangement itself indicates that merger becomes effective only upon fulfillment of all the conditions as per Clause 16 of the Scheme of Arrangement. Hence, according to the department, the ‘Effective Date’ should be 22.06.2012 i.e. the date on which letter of incorporation was obtained from Registrar of Companies. Therefore, the Appellant has independently rendered the aforesaid ‘Business Auxiliary Service’ to SKOL.

The Appellant argued that the manufacturing of the said Beer was on account of Appellant and the title, property and ownership of manufactured beer having brand name ‘Fosters’ vested solely with the Appellant. Further, the manufacturing and selling activities were different contracts and the Appellant was not working on behalf of anyone. Accordingly, the aforesaid activities amounted to ‘manufacture’ and ‘outright sale’ of beer and thus, cannot be considered to fall within the scope of the expression “in relation

to production and processing of goods for or on behalf of theclient” i.e.underamendeddefinitionof ‘BusinessAuxiliaryService’ under Section 65(105) (zzb) read with Section 65(19) of the Finance Act, 1994. The Appellant also argued that it is entitled to benefit of Notification No. 39/2009-ST dated 23.9.2009 (Exemption to value of inputs used for providing taxable service during manufacture/processing of alcoholic beverages) read with Circular No. 332/17/09-TRU dated 30.10.2009. The Appellant, while relying upon various judgments including Marshal & Sons & Co India Ltd. vs. ITO, (1997) 2SCC 302, argued that the Appellant had since merged with SKOL during the relevant period, therefore services rendered by the Appellant to self cannot be chargeable to service tax. In this regard, the Appellant submitted that when the court does not alter the ‘Appointed Date’ i.e. 31.3.2009 in the present case, agreed upon by the parties then the same should be considered for all purposes.

Judgment: The Hon’ble Appellate Tribunal decided against the Appellant on merits on the count that the aforesaid activity undertaken by the Appellant is covered within the ambit of “in relation to production and processing of goods for or on behalf of theclient”i.e.underamendeddefinitionof ‘BusinessAuxiliaryService’ under Section 65(105) (zzb) read with Section 65(19) of the Finance Act, 1994. According to the Hon’ble Appellate Tribunal the Appellant is producing and manufacturing beer on behalf of SKOL and the activity of manufacture of alcoholic beverages is non-excisable, hence, covered within the scope of Business Auxiliary Service. However, Hon’ble Appellate Tribunal accepted the submission of Appellant that it is eligible for exemptionunderNotificationNo.39/2009-STdated23.9.2009.Further, the Hon’ble Appellate Tribunal relied on the case of Marshal & Sons & Co India Ltd Vs ITO, (1997) 2 SCC 302 to held that when the Court does not alter the ‘Appointed Date’ in the sanction order, the ‘Appointed Date’ in the scheme should be considered as the date when the scheme becomes effective. Hence, the Hon’ble Appellate Tribunal held that in absence of any date given by the Court in the present case, the ‘Appointed Date’ i.e. 31.03.2009 should be taken into as the date when the merger/amalgamation of the undertaking of the Appellant with SKOL became effective. Consequentially, according to the Hon’ble Appellate Tribunal, the undertaking of the Appellant and SKOL have merged during the relevant period and the said services rendered after 31.03.2009 would be services to self and hence, not be liable to service tax.

M/s. SAB Miller Breweries Pvt. Ltd. vs. Commissioner of Service Tax, Aurangabad, Appeal No. ST/85828/2014 ST/CO/91102/2014, Decided on 11.07.2019, Final Order No. A/86242/2019.

Note : THE WHOLE DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG

UNDER SEMINAR PRESENTATIONS - UNREPORTED DECISIONS

AO has relied on the judicial pronouncements which pertain to the period prior to the amendment. Thus, without appreciating the legal position in this regard, the A.O has disallowed the entire aforesaid amount of ` 80,09,923/- on the allegation that the assessee has not been able to prove how the debts have become ‘bad debt’. Notwithstanding the fact that no such documents were required to be furnished by him, the A.O alleged that the assessee

failed to substantiate its claim with any document whatsoever and it cannot be allowed. The aforesaid action of the A.O in summarily disallowing the entire amount of ` 80,09,923/- is against the position in law. Thus, it directed the AO to delete the disallowance.

M/s. Flender Limited vs. DCIT-8(2)(1), ITA No. 2550/Mum/2018, DOH: 26/06/2019 (Mum)(Trib)


Follow us on:

If undelivered, please return to :

Non-receipt of the CTC News must be notified within one month from the date of publication, which is 1st of Every Month.

Printed by Shri Kishor Dwarkadas Vanjara and published by him on behalf of The Chamber of Tax Consultants (owners), 3, Rewa Chambers, Ground Floor, 31, New Marine Lines, Mumbai-400 020 and Printed at The Great Art Printers, 25, S. A. Brelvi Road, Unique House Opp, Apurva Restaurant, Next to Poddar Chambers, Ground Floor, Fort, Mumbai-400 001. and published at The Chamber of Tax Consultants (owners), 3, Rewa Chambers, 31, New Marine Lines, Mumbai 400 020.

Editor : Shri Kishor Dwarkadas Vanjara

To

3, Rewa Chambers, Ground Floor, 31 New Marine Lines, Mumbai 400 020

Tel.: 2200 1787 / 2209 0423 / 2200 2455 E-mail : [email protected] l Visit us at : www.ctconline.org

WhatsApp No.: 9004945579 FB Page: https://www.facebook.com/ctcconnect

THE CHAMBER OF TAX CONSULTANTS

Posted at Mumbai Patrika Channel Sorting Office-Mumbai 400 001.

Date of Publishing 1st of Every Month Date of Posting : 1st & 2nd August, 2019

Registered with Registrar of Newspaper for India under R. NO. MAHENG/2015/67505 Posted at Mumbai Patrika Channel

Sorting Office, Mumbai-400 001. Postal Registration No. MCS/210/2019-21

Date of Posting : 1st and 2nd of every month Date of Publishing : 1st of Every Month

Documents

THE CTC NEWS | August 2019 · 2019-08-01 · 1 06-08-2019 Indirect Taxes IDT SC on Issues in Refunds under GST Law (For IDT SC Members Only) AV Room, 4th Floor, Jai Hind College,