OFFICE BEARERS

ChairmanCA. Ganesh Nadar99744 77447

Vice ChairmanCA. Fenil Shah89050 30507

SecretaryCA. Harit Dhariwal99789 42299

TreasurerCA. Anjali Choksi98257 73179

CA. Bishan ShahCA. Rahul MaliwalCA. Sunil Sanghvi

CA. Aniket Talati, CCM98255 51448CA. Hitesh Pomal, RCM98240 49402CA. Vikash Jain, RCM93277 15892CA. Chintan Patel, RCM90999 21163

Chairman - CA. Rahul Maliwal Co-Chairman - CA. Hemlata DewnaniConvener - CA. Mohit Tiberwal

CA. Devam ShethCA. Kushal Bhadrikbhai ReshamwalaCA. Mahadev Prasad BirlaCA. Mahavir Prafulchandra ShahCA. Neelo PorwalCA. Pranay MehtaCA. Sagar ChhataniCA. Twinkle S. ShahCA. Vaibhav S. Shah

MEMBERS

EX. OFFICIO MEMBERS

MEMBERS

NEWS LETTER COMMITTEE

Chairman’s Message

e - NEWSLETTERVol. No.: - 06 | Issue No. - 05 | July - 2019

Editorial

ICAI - New DelhiAccounting, Auditing &Company Law Updates

02

03

04

GST UpdateIncome Tax UpdatesIncome Tax Quick Con.International Taxation

05060707

08101112

RERA Quick ConnectFEMA UpdateTechnique of the monthImp. Due Dates

1314

Motivational StoryEvents in Images

What’s?

Inside

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

(Set up by an Act of Parliament)

July Greetings from CA Ganesh Nadar!

“Friends are those rare people who ask how we are and then want to hear the answer” – these words of Ed Cunningham aptly showcase that s e l fl e s s r e l a t i o n s h i p c a l l e d ‘Friendship’ which we shall all becelebrating on 4 August…

Amidst our revelry, let’s pray not only for our farmer community but also for the environment at large that the Monsoon Gods bless us with their bounty.

While the country launched the Chandrayan II Mission and our boys in blue gave a brave fight to the Kiwis in the Queen’s Country; we too proudly rang in the 71 st year of the ICAI Foundation and the second anniversary of the path-breaker GST.

The extension in the deadline (till 31 August) of the New IT Returns System is a welcome breather for us and our clients.

Our ICAI hosted multiple activities in June besides the flagship RRC on GST at Bengaluru. Some of these include - the Certificate Course on Ind-AS; Audit of Info System; Seminar on PMLA and Benami Property; An Industrial Visit to Amul (Anand) for Women CAs along with Budding CAs (their children); Felicitation of our Cricket Team on Winning the Inter Branch Cricket Championship Cup; Meeting of the N e w W I C A S A M a n a g i n g Committee; besides of course celebrating CA Day with a blood donation camp, yoga and health session and a press conference. Then again to enable our community to keep pace with new technologies we had organized a Course on Block-chain Technology for ProfessionalAccountants.

Here’s sharing with you a curtain raiser of this issue – Updates on Accounting, Company Law, GST, FEMA, IT and International Taxation; Quick Connect with IT and RERA; Important Due Dates for Compliance;

02www.icaiahmedabad.com

elcome to the second half of the calendar Wyear- it's JULY.

It is the 71st year of foundation of our Institute. C.A. Day is celebrated across all the offices of the institute on 1st of July. Of course we share this date with other noble professional brother i.e. doctors. These two professions have left no stone unturned to look after physical and financial health of the society. We also celebrated this day with numerous different health, spiritual and cultural activities.

1st July also marks second anniversary of GST. The

introduction of GST was a game changer for Indian economy as it has replaced multi-layered, complex indirect tax structure. However, the implementation of GST has not been without challenges especially in the early months, the C.A. once again proved them self as partners in national building by helping in successful implementation of GST. Again the introduction of New Return System may pose new challenges and may unsettle the current flow.

Editorial

AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

CA. Rahul Maliwal

Chairman, Newsletter Committee

Mission to take our esteemed profession to unparalleled heights!

CA. Ganesh Nadar

Chairman, Ahmedabad Branch

the Modus Operandi for the Auto-reply Function of Google Mail through CannedResponse; and Pearls of Wisdom from Sadhguru Jaggi Vasudev.

August meaning the month of Shraavan, Raksha Bandhan, Independence Day and Janmashtami also heralds in Bakri Eid for our Muslim brethren and Navroze for our Parsi members. In the midst of all these festivities let us take a minute to remember the Hiroshima Casualties on 6 August; and all those innocent people who have succumbed to acts of terrorism and religion-based-violence on 21 August.

August marks a lot of other special days also for instance – National Handloom Day to revive domestic products and production processes; Biofuel Day to promote use of renewable, sustainable and eco-friendly fuel options; Sport Day to commemorate legendary hockey player Dhyan Chand and of course Photography Day for all of us whose android phones have made them amateur photographers!

In sync with our Mission Statement of ‘Celebrating the Past and Inspiring the Future’ let’s all ring in International Youth Day with the bonhomie it

rightfully deserves! ICAI-Delhi communiqués in this issue include - their own Amazon (!) which is the CDS (Central Distribution System) to make sale of all ICAI publications – faster and easier; and Overseas CampusPlacements for CAs and Inter CAs.While we celebrate our 73rd Independence Day let us remember the immortal words of Peter Marshall- “May we think of freedom not as the right to do as we please, but as the opportunity to do what isright”

That’s all from my desk…Keep reading and contributing to YOUR newsletter!

CA. Ganesh Nadar Chairman

03www.icaiahmedabad.com

AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

Professional Updates from from the desk of CA. Aniket Talati

[Central Council Member]

ICAI's very own Amazon!CDS (Central Distribution System), is an initiative from ICAI to make sale of all ICAI publications – faster and easier.ICAI has developed this portal with the intention of providing study material to its Registered Students at their door step and to sell ICAI publications and other artefacts to Students, Members and other stakeholders online and deliver the same at the doorstep of the buyer.It has developed an online store portal for its students, members and for other stakeholders. This portal provides options to purchase all relevant publications and artefacts online. Anyone interested can generate his/her own accounts and place his/her orders on online store. Students, upon successful registration to the course, will be allotted coupon(s) against registration. Foundation Course students will be allotted I coupon, Intermediate and final Course students will be allotted 2 coupons. The Intermediate and Final Course students can choose to use their coupons as per their requirement.https://icai-cds.org/

Overseas Campus Placement for CAs & Inter CAsI am happy to inform that in a bid to provide global opportunities to the Chartered Accountants, Committee for Export of CA Services (of which I am Vice Chairman) is organizing its overseas campus placement on 18th – 21st October 2019 along with CMI&B of ICAI. It is under the Champion Sector initiative of GoI. In a step forward to the ICAI's initiative that started last year, accountants (Inter CAs) have been included in this overseas placement drive. I request all professionals who wish to avail themselves of this opportunity to register for the placement programme, which starts from 16th August, 2019Register https://cmib.icai.org from Aug 16, 2019Interview @ Ahmedabad on 20th / 21st October, 19

Guidelines for the Candidatesџ To register online on by paying https://cmib.icai.org/

non-refundable registration fee of Rs. 1000/- by Chartered Accountants and Rs. 500/- by Chartered Accountancy students who have completed their articleship training.

џ Center once opted cannot be changed.џ Can opt only one center for interview.џ No restriction on number of interviews a candidate

can attend.џ To carry originals of all testimonials with copies at the

time of interview.

џ Selected candidates upon accepting the offer cannot appear for any other interview or accept job from any other employer at the Campus.

џ Candidates to attend interview at their cost.џ Entire process is online https://cmib.icai.org/џ ICAI / Participating organization will not be

responsible for selection / rejection of candidates. џ ICAI shall not be responsible for any dispute between

candidates and participating organisations.џ Once contested. It is mandatory to attend the

interview. Else will be debarred from future events.џ Advised to strictly adhere to the time line for

completing the process.

Approach to upgrade existing Accounting StandardsThe Indian Accounting Standard (Ind AS), as notified by the ministry of corporate Affairs in February 2015, are applicable to the specified class of companies. Accounting Standards notified under Companies (Accounting Standards) Rules, 2006, and those issued by the ICAI are applicable to entities to whom Ind AS are not applicable.However, on the basis of the discussions held at various standard setting forums, such as, the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI), NACAS and the Ministry of Corporate Affairs (MCA), it had been decided to upgrade Accounting Standards to bring them nearer to Ind AS. In this context the ASB and the Council, ICAI, had finalized the Approach Paper for upgradation of exiting Accounting Standards which provides broad approach which may be followed in the upgradation of the AS.In pursuance to the discussions held at 383rd meeting of the Council held on May, 21, 2019, the Hon'ble President, ICAI, has constituted a Group of Central Council Members (CCMs) to review the same. I have been nominated as a part of the group and would be raising genuine concern of small and medium practitioners. I am of the firm belief that the time is right for India to take lead as a global standard setter not simply emulate and import foreign standards. The impact of this exercise would be huge since basic accounting standards that are applicable to firms/ proprietors / non corporate entities would be affected. It will have an impact on the entire accounting landscape.

CA. Aniket S. Talati

aniket@icai.org or 9825551448

04www.icaiahmedabad.com

AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

1. ICAI Publication on Indian Accounting Standards (Ind AS): An Overview (Revised 2019)ICAI has issued fourth edition of publication including the recent amendments to Ind AS notified by the Ministry of Corporate Affairs of India in March 2019, specifically the issuance of new leases standard (Ind AS 116), and other consequential amendments thereto.https://resource.cdn.icai.org/55845indas45234a.pdf2. ICAI Publication on Educational Material on Ind AS 8, Accounting Policies, Change in Accounting Estimates and ErrorsICAI has issued the educational material of Ind AS 8 which addresses all the relevant aspects envisaged in the standard by way of a brief summary of the standard and frequently asked questions (FAQs) which are being/expected to be encountered while implementing the standard.https://resource.cdn.icai.org/55846indas45234b.pdf3. SEBI issues consultative paper on policy proposals with respect to resignation of statutory auditors from listed entitiesIn order to strengthen the disclosures to investors and stakeholders and further to clarify the role of the audit committee, SEBI proposes to issue a circular or amend SEBI (Listing Obligations and Disclosure Requirements) Regulations, specifying the procedure that may be followed in cases where the auditor of a listed entity/material unlisted subsidiary of the listed entity proposes to resign. SEBI has accordingly issued the draft framework for consultation.Comments on the above framework are to be sent by 08 August 2019.h t t p s : / / w w w. s e b i . g o v. i n / r e p o r t s / r e p o r t s / j u l -2019/consultative-paper-on-policy-proposals-with-respect-to-resignation-of-statutory-auditors-from-listed-entities_43604.html4. ICAI Revised Publications on Companies Act 2013 The Corporate Laws and Corporate Governance Committee of the ICAI has revised its following publications:(a) Revised Guidance Note on Division I - Non Ind AS Schedule III to the Companies Act, 2013https://resource.cdn.icai.org/55730clcgc45064a.pdf(b) Revised Guidance Note on Division II - Ind AS Schedule III to the Companies Act, 2013https://resource.cdn.icai.org/55731clcgc45064b.pdf(c) Frequently Asked Questions on the Companies Act, 2013The above publication pertaining to FAQ on the Companies Act, 2013 - July 2019, has been revised keeping in view the number of developments that have taken place, including the passage of Companies (Amendment) Act, 2017.

https://resource.cdn.icai.org/55732clcgc45064faq.pdf 5. Ind AS Technical Facilitation Group (ITFG) Clarification (a) Bulletin 20The ITFG has considered various implementation issues received from members. The ITFG, after due deliberation, issued clarifications on five Ind AS issues through its bulletin 20.https://resource.cdn.icai.org/55591asbicai-itfgcb20.pdf(b) Bulletin 15 (Revised)The ITFG considers various implementation issues received from members. At its 19th meeting held on 11 May 2019, ITFG considered a comment received by it on Issue 7 of ITFG bulletin 15. In order to avoid any potential misinterpretation of the issue under reference, the ITFG has decided to amend the response to Issue 7.https://resource.cdn.icai.org/49554indas39277.pdf6. Clarification on Auditor's Certificate on Return of Deposits pursuant to Rule 16 of the Companies (Acceptance of Deposits) Rules, 2014The ICAI has stated that the Ministry of Company Affairs vide its letter no. File No: P-01/08/2013- CL-V Vol. VI dated June 24, 2019 has clarified on the matter as under:l The Auditor's Certificate is mandatory only in case of

return of deposits.l For filing particulars of transactions not considered as

deposits information contained therein as on 31st March of that year need not be from the duly audited Financial Statement.

l Only in case of Return of Deposit information contained therein as on 31st March of that year should be from duly audited financial statement of the company.

Also in order to provide guidance to members, the Auditing and Assurance Standards Board of ICAI has issued Illustrative Auditor's Certificate on Return of Deposits.https://www.icai.org/new_post.html?post_id=15722&c_id=2197. Amendment to Schedule VII of Companies Act 2013The MCA has amended Schedule VII of the Companies Act, 2013, to add, disaster management, along with relief, rehabilitation and reconstruction activities, to the list of permitted activities that qualify as Corporate Social Responsibility (CSR) activities by Companies.http://www.mca.gov.in/Ministry/pdf/Notification_06062019.pdf

chintan@nareshco.com

Contributed by

CA. Chintan Patel

Accounting & Company Law Updates

05www.icaiahmedabad.com

AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

Some Important AAR

Operation of Gaming Zone in mall at Mubail - Held as "'amusement facilities"

- GST rate @ 28 % w.e.f. 25.1.2018 (BANDAI N A M C O I N D I A P R I VAT E L I M I T E D - MAHARASHTRA AUTHORITY FOR ADVANCE RULING).

Mounting of Bus/ Truck/Ambulance body on the chassis - Bus/ Truck /Ambulance body fabricated by collecting job work charges including inputs required for such fabrication work and in no case the ownership of the chassis transferred by Principal to the job worker will be taxable under SAC 998881 - "Motor vehicle and trailer manufacturing services" and under entry no. 26(ii) as "Manufacturing services on physical inputs (goods) owned by other" it is taxable @18%(9% under CGST and 9% under SGST Act). (M/s.Sanghi Brothers (Indore) Private Limited - AUTHORITY FOR ADVANCE RULING - MADHYA PRADESH)

Offer of extra quantity in addition to normal quantity against same consideration, as a taxable supply to Distributors - Marketing strategy to promote brands - For example, 100 packs for an agreed price of say Rs.5000/-, supplying 110 packs of Cigarettes without recovering any additional cost from the Distributors. - Paying GST and Compensation Cess on Rs. 5000/- at applicable rate. - Held, extra packs of Cigarettes will not be leviable to GST. -The extra packs of cigarettes will not be considered as exempt supplies or free

samples and hence the provisions of 17(2) read with Ride 42 of the CGST Rules, 2017 or clause (h) of Section 17 (5) of the CGST Act, 2017 will not be applicable. (GOLDEN TOBACCO LIMITED - MAHARASHTRA AUTHORITY FOR ADVANCE RULING)

Prohance - D (Chocolate) - Nutritional powder for people with Diabetics - Sold in powder form and is required to be mixed with drinking water and used as a partial meal replacement/Breakfast replacement / Evening snack/healthy bedtime snack or as directed by a Physician/dietician for diabetics. Prohance-D will be known in the market as "diabetic Product" as it is sugar free, low on GI (Glycemic Index) and contains Isomaltulose - a low glycemic carbohydrate that helps minimize blood sugar spikes - Classification of Prohance - D (Chocolate) is under chapter heading 2106 90 50. (Sun Pharmaceutical Industries Ltd. - MAHARASHTRA AUTHORITY FOR ADVANCE RULING).

Honorable Gujarat High Court in case of AAP and Co., Chartered Accountants Vs. UOI and 3 others decided that GSTR-3B is not a return u/s 39 and _hence due date for availment of credit u/s 16(4) will be due date of filling an annual return i.e. 31.08.2019 for FY 2017-18.

GST UpdatesG S T

shahmonish@hotmail.com

Contributed by

CA. Monish S. Shah

G S T

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AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

Income Tax Updates

1. Circular No. 11/2019 dated 19.06.2019 - Clarification regarding non-allow ability of set-off of losses against the deemed income under section 115BBE of the Income-tax Act, 1961 prior to assessment-year 2017-18-reg.With effect from 01.04.2017, sub-section (2) of section 115BBE of the Income-tax Act, 1961 (Act) provides that where total income of an assesse includes any income referred to in section(s) 68/69j69A/69B/69Cj69D of the Act, no deduction in respect of any expenditure or allowance or set off of any loss shall be allowed to the assesse under any provisions of the Act in computing the income referred to in section 115BBE(1) of the Act.Thus keeping the legislative intent behind amendment in section 115BBE(2) vide the Finance Act, 2016 to remove any ambiguity of interpretation, the Board is of the view that since the term 'or set off of any loss' was specifically inserted only vide the Finance Act 2016, w.e.f. 01.04.2017, an assesse is entitled to claim set-off of loss against income determined under section 115BBE of the Act till the assessment year 2016-17.https://incometaxindia.gov.in/communications/circular/circular_11_2019.pdf2. Circular No. 12/2019 dated 19.06.2019 - 'Assessment of Firms'-some of the important issues to be kept under consideration by the Assessing Officers while framing assessment-reg.-C&AG had carried out a Performance Audit regarding 'Assessment of Firms' under the Income Tax Act, 1961 ('Act') and in its Report NO.7 of 2014, has made certain suggestions so that in future, assessments in these cases are handled in a more effective manner by the Assessing Officers (AOs). Various recommendations made by the C&AG in its Report have been duly considered by the Board. In order to improve the quality of assessments being framed in these cases and also to reduce the scope for committing errors, the Board desires that Assessing Officers should duly take into consideration the following issues while making assessments in case of firms. Please refer the below mentioned link.https://incometaxindia.gov.in/communications/circular/circular_12_2019.pdf3. Press Release dated 24.06.2019 – E-filing of Income TaxRecently, in January, 2019, the Government has approved Integrated E-filing & Centralized Processing Centre (CPC) 2.0 Project of the Income Tax Department. The details of the CPC 2.0 Project are:i. CPC 2.0 Project envisages pre-filling of ITRs by the Income-tax Department and its acceptance by the taxpayer so as to improve accuracy of information contained in the Return and drastically reduce the existing

turnaround time taken in processing of Returns and issuance of refunds.ii. CPC 2.0 Project will process ITRs in a consistent, uniform, rule driven, identity blind manner. This would ensure fairness in tax treatment to all taxpayers irrespective of their status.iii. The CPC 2.0 Project would significantly improve transparency and accountability of Income-tax Department as processing of returns and issuance of refunds would take place without any interface with the Department.iv. CPC 2.0 Project would adhere to international best practices and standards. It would keep the taxpayer informed by providing processing status update, speedy communication using mobile app, email, SMS and through website of the Income-tax Department.v. CPC 2.0 Project envisages setting up of integrated contact centres for taxpayer's assistance and undertaking outreach programs involving taxpayers and other stakeholders through digital media in an effective manner.Thus, CPC 2.0 Project besides promoting the Government objective of promoting voluntary tax-compliance culture would also smoothen the process of e-filing and processing of ITRs and will also bring about a significant enhancement in services to the taxpayers.http://www.pib.nic.in/PressReleseDetail.aspx?PRID=15754824. Press Release dated 04.06.2019 - CBDT extends due date for filing of TDS statement in Form 24QThe Central Board of Direct Taxes (CBDT) had earlier notified amended Form 24Q for filing TDS statement by deductors of tax vide Notification No. 36/2019 dated 12th April, 2019. Subsequently, the File Validation Utility (FVU) for online filing of Form 24Q was updated by NSDL on 21st of May, 2019.With a view to redress genuine hardship of deductors in timely filing of TDS statement in Form 24Q on account of revision of its format and consequent updating of the File Validation Utility for its online filing, CBDT has ordered the following:(i) Extended the due date of filing of TDS statement in Form 24Q for financial year 2018-19 from 31st of May, 2019 to 30th of June, 2019 and(ii) Extended the due date for issue of TDS certificate in Form 16 for financial year 2018-19 from 15th of June, 2019 to 10th of July, 2019.http://www.pib.nic.in/PressReleseDetail.aspx?PRID=1573464

Contributed by

tibrewal.mohit@yahoo.in

CA. Mohit Tibrewal

07www.icaiahmedabad.com

AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

Income Tax Quick Connect

kushalreshamwala2910@gmail.com

Contributed by

CA. Kushal Reshamwala

At present there is no liability on an individual or Hindu undivided family (HUF) to deduct tax at source on any payment made to a resident contractor or professional when it is for personal use. Further, if the individual or HUF is carrying on business or profession which is not subjected to audit, there is no obligation to deduct tax at source on such payment to a resident, even if the payment is for the purpose of business or profession. Due to this exemption, substantial amount by way of payments made by individuals or HUFs in respect of contractual work or for professional service is escaping the levy of TDS, leaving a loophole for possible tax evasion. To plug this loophole, it is proposed to insert a new section 194M in the Act to provide for levy of TDS at the rate of five per cent. on the sum, or the aggregate of sums, paid or credited in a year on account of contractual work or professional fees by an individual or a Hindu undivided family, not required to deduct tax at source under and 194J of the Act, if such sum, or section 194Caggregate of such sums, exceeds fifty lakh rupees in a year. However, in order to reduce the compliance burden, it is proposed that such individuals or HUFs shall be able to deposit the tax deducted using their

Permanent Account Number (PAN) and shall not be required to obtain Tax deduction Account Number (TAN).

For this purpose “contract” shall have the meaning assigned to it in clause (iii) of the Explanation to section 194C;

For this purpose “professional services” shall have the meaning assigned to it in clause (a) of the Explanation to section 194J.

TDS shall be deducted at the time of credit of such sum or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.

stThis amendment will be effective from 01 September,

2019.

Ratification by India of the Multilateral Instrument

International Taxation

- The Indian Government ra t ified the Multilateral Convention (MLI) to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) which was signed by Hon'ble Finance Minister at Paris on 7th June 2017 on behalf of India, along with representatives of around 67 countries.

- On 25th June 2019, India has deposited the Instrument of Ratification to Organisation for Economic Co-operation and Development (OECD), Paris along with its Final positions in Covered Tax Agreements(CTAs), Reservations, Options and Notifications under the MLI, as a result of which MLI will enter into force for India on 1st October 2019 and the effective date will depend on when the other

country deposits the ratified copy with the OECD. In context of India, for few of the CTA's depending upon the date of deposit of ratified copy with the OECD, the provisions of MLI will be effective from 1st April 2020. Once the MLI will be effective, the provisions of MLI shall affect the provisions of the relevant tax treaties. Source:https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/770/PressRelease-Ratification_India_Multilateral_Convention_3_7_19.pdf

twinkle.logar@in.ey.com

Contributed by

CA. Twinkle Shah

08www.icaiahmedabad.com

AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

Reporting of Loan and Lenders in Form 3 CA Certificate Under RERA

The Gujarat Real Estate Regulatory Authority has amended the Gujarat Real Estate Regulatory Authority (General) Regulations, 2017 and as per Gujarat Real Estate Regulatory Authority (General) (Amendment) Regulations, 2019 dated 31st May,2019.

As a part of this amendment now, CAs are required to provide Loan and Lenders details to GujRERA as part of reporting encumbrance on the Project.

Following information's are required to be reported in respect of Loan and Lenders: -

1. Lender Name2. Loan Agreement: - Loan agreement to be uploaded3. Mortgage Deed: - Mortgage Deed to be uploaded4. Amount of Loan taken for project as per agreement (INR)5. Loan disbursal received6. Loan repaid7. Balance of Loan (Outstanding)(INR)8. Total Number of Units Mortgaged

With respect to above amendment there was no

celerity on reporting of unsecured loan taken for the project as purpose of this amendment was for reporting of encumbrance on the project so the home buyer will be aware of the encumbrances on project units.

To bring the celerity on the reporting of unsecured loan GujRERA authority has come up with Guidance-1 dated 9th July-2019 on “Disclosure of Project Loan and Lender details & Unit Encumbrance Reporting “

Following are the clarifications are given by guidance-1

1. Any Loan (Secured or Unsecured) against which interest is paid and the same is considered as a part of cost incurred & paid, the same needs to be reported in Form-3.

2. Details of Loan which is taken for project but direct encumbrances is not created on unit, is also required to be reported. (Loan taken by deposit of title deed of land/equitable mortgage).

3. Interest paid on partner capital is not part of cost of project as the same is not borrowed fund so no reporting of partner capital.

Reporting is to be done by considering the following points: -

Real Estate (Regulation and Development) Act, 2016 (RERA,2016)

Quick Connect RERA

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AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

* In form 3 CA Certificate details for number of unit's mortgage will be “0” (Zero) as no units are mortgaged. ** Only when interest is payable on unsecured loan and the same is charged to project cost incurred & Paid*** List containing the Name of Lender along with amount of loan taken to be made with the name “Loan agreement” and the same is to be uploaded in PDF format. Where only land is mortgaged, loan agreement and mortgage deed need to be verified to check whether any charge is created projects units to be constructed in future. 1. Other Relevant provision of RERA Act and GujRERA Rule and Regulation, which clarify that why and how Project Loan and Lender details & Unit Encumbrance Reporting is important.

Ш Declaration by promoter for legal title of land- Section 4(2)(l)(A)Ш Declaration by promoter for that land is free of all encumbrances –Section 4(2)(l)(B)Ш Liability of promoter for payment of all outgoing charges, including mortgage loan and interest on mortgage or other encumbrances –Section 11(4)(g)- whether the physical possession of real estate project is transferred to association of allottee or not

Ш If any charges is created on apartment, plot or building after the execution of agreement to sale , the same will not affect the right and interest of the allottee who has taken or agreed to take such apartment, plot or building.-Section-11 (4)(h)Ш Compensation is payable by the promoter to allottee, if any loss is caused to allottee due defect title of land –Section 18(2)Ш The details of encumbrances on the land on which development is proposed- Rule 3(1)(e) of GujRERA Rules,2017- This information is to be provided for the registration of project. Ш Before revocation of project or project taken by the authority interest of the parties who has financed the project will be taken care- Proviso to Rule 8(2)Ш Terms and condition as per Clause 13(iii) and clause 17 of Model form of agreement.

https://gujrera.gujarat.gov.in/resources/staticpage/attac h m e n t s / G u i d a n c e _ -_1__Form_3__CA_Certificate.pdf

SN Type of property

mortgaged

Reporting

requirement in

Form 3

Documents to be

provided along with

Form-3

Disclosure of Release of Mortgage

A Project Units (all or

partial)

Yes Sanction Letter, Loan

Agreement and

Mortgage deed

When AFS of

individual unit is

made

B Project Units and Land Yes Sanction Letter, Loan

Agreement and

Mortgage deed

When AFS of

individual unit is

made and for land

by the time of

completion of

project or

undertaking to pay

the liability

C Project Land Yes* Sanction Letter, Loan

Agreement and

Mortgage deed

land by the time of

completion of

project or

undertaking to pay

the liability

D Nil

In case of

Unsecured Loan **

Yes* List of Lender along

with amount of Loan

***

NA

md.birla@gmail.com

Contributed by

CA. Mahadev Birla

10www.icaiahmedabad.com

AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

(A) Annual Return on Foreign Liabilities and Assets Reporting by Indian Companies1Under FEMA provisions, Indian resident companies/ LLPs / SEBI registered Alternative Investment Funds (AIFs), Partnership Firms, etc. who have received Foreign Direct Investment (FDI) or made Overseas Direct Investment (ODI) are required to furnish certain financial information vide an Annual Return, known as Annual Return on Foreign Liabilities and Assets (FLA). The said Form FLA was to be filed in excel based format as prescribed by RBI and was required to be submitted through e-mail on or before 15 July following the end of financial year.As the said Form FLA contained financial details, if the accounts of entity required to file Form FLA were not audited on or before the due date of filing of Form FLA, the said form could be submitted based on unaudited (provisional) account. Once the accounts get audited and there are revisions from the provisional information submitted by the company, company can submit the revised FLA return based on

audited accounts.Further, non filing of Form FLA would be treated as contravention of FEMA and is subject to payment of Late Submission Fees (LSF) or compounding, depending upon the period of contravention.RBI has vide notification dated 28 June, 2019 has substituted the existing email-based reporting system for submission of the FLA return by the web-based system online reporting portal namely Foreign Liabilities and Assets Information System (FLAIR) system. The new FLA return contains certain additional information required to be submitted.Further, due to recent changes in reporting platform for submission of Form FLA, RBI has extended the last date for filing the FLA return for financial year 2018-19 to 31 July 2019. Snapshot of key changes made in new FLA return vis-à-vis old FLA return are summarised as under:

FEMA Updates

Additional reporting requirements in updated Form FLA

Sr. Particulars Additional Disclosures

1 Details of merger / amalgamations · Details of merger / amalgamation, number of companies merged and name of merged entity

2 No. of employees on payroll · Total number of employees on payroll for FY 2018-19 and FY 2017-18

3 Any entity which has outstanding investments made under the FDI Scheme in India by Non-resident Direct investors, who were individually holding 10 per cent or more ordinary/equity & preference shares

· No. of foreign direct investors during the year (10% or more Equity participation)

· Month and Year of receiving FDI first time (in your company)

4 Any entity which has made FDI during current year or in prior years.

· Disinvestments in India during the year

5 Any entity where single foreign direct investor holding is more than 50% in total equity (i.e. if reporting Indian company is subsidiary of foreign company)

· Domestic Sales · Exports · Domestic Purchase · Imports

6 Any entity which has made ODI (10% or more equity holding)

· Month and Year of ODI made first time (by reporting company)

7 Any entity which has made ODI during current year or in prior years.

· Disinvestments abroad during the year

saumya@bgss.co.in

Contributed by

CA. Saumya

https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11607&fn=5&Mode=0 | https://flair.rbi.org.in/fla/faces/pages/login.xhtml

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AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

Auto Reply through Canned response

cahemlatadewnani@gmail.com

Contributed by

CA. CS. Hemlata Dewnani

Technique of the month

his feature works by setting up a filter in Gmail Tso that when certain conditions are met (like when a specific person emails you or the email

has specific subject ), a message of your choosing is automatically sent back to that address; these are called canned responses.In our field we can use it for sending the list of documents required for company registration who send us mail with subject registration or Auto reply for job placements , Data or content sharing in the lecture etc. Its like codeword used for data Sharing Go to Settings > Advanced > Select Enable Canned responses (Templates ) > Save changes . Now that ‘Canned Responses’ are enabled, you can create a new email by clicking the ‘Compose’ icon in the upper left hand corner and typing out the message you want to be automatically sent out. Once you’re finished, click on the three dots in the email window to bring up the email options. Select ‘Canned responses’ and then ‘ save draft as Template ' and than ' Save as new Template '. This email will be automatically saved in Drafts .Attaching files: you cannot auto email attachments. So, any text within the canned response will send out but not any attachments; this includes inline images as well. For this if you want to send attachments you can copy the shareable link in the template mail

Go to settings > Filters and blocked Addresses > Create a filter > Define the criteria for the email you'd like to reply automatically in the box that pops up as shown in the below screen. To send Auto reply to certain subject i.e mention the word in subject line that is registration in our case and press create filter (as shown in below image )

We can also create filter with different perspective and options also as shown in picture such as to, sender that is if you want to reply only to the specific person or has the words etcSelect the box to the left of Send Template it to, select the canned response from the drop-down list, and select Create filter. Email matching the criteria you've set will now get Canned response .i.e only mails having word registration in subject line.If you want to stop sending the canned response than there are three optionsA. Delete the Draft mailB. Delete the filter created for specific criteriaC. Disable Canned response from Advanced > Settings Canned responses originate from an address that's still yours, of course, but with a slightly altered email address. For example, if your normal address is xyz@gmail.com, sending out auto emails will change the address to xyz+canned.response@gmail.com.Lets Live check it by sending a mail at my registered mail id cahemlatadewnani@gmail.com with a subject catalyst and you will get the Auto reply from it

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AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

Important Due dates for Compliance

camahavir.shah@gmail.com

Contributed by

CA. Mahavir Shah

Sr. No. Act Compliance Due Date

1 GujRERAIn case of Promoter : Quarterly Return for Project to be filled with 7

days from the end of the Quarter allocated by RERA Authority7th June, 2019

2 GujRERA

In case of Agent : Half Yearly Return to be filled with 7 days from the

end of the Half year allocated by RERA Authority depending on

Registration Date

7th June, 2019

3 Income TaxTax Deducted/Collected (TDS/TCS) during the month of May-19 to be

deposited7th June, 2019

4 GSTGSTR-7 for the month of May-19 for persons required to deduct TDS

under GST10th June, 2019

5 GSTGSTR-8 for the month of May-19 for e-commerce operator required to

collect TCS under GST10th June, 2019

6 GSTGSTR-1 for the month of May-19 for taxpayer having Annual

Aggregate Turnover exceeding Rs.1.50 Crore11th June, 2019

7 GST GSTR-6 for the month of May-19 for Input Service Distributor (ISD) 13th June, 2019

8 Income TaxFurnishing of Challan-cum-Return for Tax Deducted (TDS) u/s 194IA

and 194IB during the month of April-1914th June, 2019

9 Income TaxQuarterly TDS Certificate (other than Form 16 - TDS on Salary) for

Quarter ended on 31st March, 201915th June, 2019

10 Income Tax First Installment of Advance Tax for F.Y. 2019-20 15th June, 2019

11 MCA/ROC Filling of Active INC-22A for Companies 15th June, 2019

12 PF / ESIC Payment of PF / ESIC for the month of May-19 15th June, 2019

13 GST Payment of GST & Filling of GSTR-3B for the month of May-19 20th June, 2019

14 GSTGSTR-5 & 5A by Non-resident taxable person & OIDAR for the month

of May-1920th June, 2019

15 MCA/ROC Filling of Form DPT-3, for Acceptence of Deposits by Companies 29th June, 2019

16 GST GST Annual Returns -GSTR-9 / 9A for F.Y. 2017-18 30th June, 2019

17 GST GST Reconciliation Statement - GSTR-9C for F.Y. 2017-18 30th June, 2019

18 Income TaxFurnishing of Challan-cum-Return for Tax Deducted (TDS) u/s 194IA

and 194IB during the month of May-1930th June, 2019

19 Income TaxFilling of Quarterly TDS Return 24Q for Quarter ended on 31st

March, 201930th June, 2019

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AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

It is unnecessary for each individual to have their own purpose. Life has its own purpose and it’s our business to fulfil it.

If your life is an ‘expression of joy’ then you don’t look what you can do, you look at what is needed to be done and you do that well.

Life is long for miserable people. If you are a joyful human being it’s very brief.

We make up things to identify overself with many things that we are not. We need to start identifying things about ourself.

If you want to function at highest level, you must discover yourself. An individual is in-divisible who can’t be reinvented but has to be rediscover.

The moment you took an identity, your mind works only around what you are identified with but there is something more fundamental which is the individual.Discover the deeper potential in yourself. Never go out to be like somebody else. Be yourself in your full potential.

If you want to know life in its entirety, you need to know other dimensions of intelligence.

Human intellect functions only from the limited data that is gathered. It can’t explore anything entirely new so don’t limit yourself by intellect. Employ your intelligence without the limitation of intellect.

Put your hundred percent efforts. Don’t leave proportion of your energy and capability to luck.

You need to put right kind of effort at right time and right place. Just labour is not going to take you anywhere.

You should constantly look for ways to enhance your perception and intelligence. Do not try to become capable of something and rest will happen anyway.You should not be aspiring for success. It’s a miserable way to structure your life.

If you are consistently concious about your mortality then there is no way you can’t look at deeper dimensions of life.

7 Rules of Success From: SADHGURU JAGGI VASUDEV

1. Be an Individual2. Build the Pride3. Don’t take life seriously4. Don’t wait for Disaster to strike5. Don’t complain6. Fix your inner self7. Success is the ideal

Prime Statements of sadhguru

Motivational Story

cahemlatadewnani@gmail.com

Contributed by

CA. CS. Hemlata Dewnani

Upcoming EventsSR. DATE & DAY Name of the Seminar,

Lecture Meeting, Etc.

FACULTY REGN. FEES CPE

1 Saturday,

17thAugust, 2019

PQC ON INFORMATION SYSTEM AUDIT PRACTICAL TRAINING

(PT) AT AHMEDABAD-17.08.2019 TO 15.09.2019

DECIDED BY DAAB,

ICAI

AS PER INSIDE

CIRCULAR

30

2 Monday,

05thAugust, 2019

INTERNATIONAL STUDY TOUR - NETHERLANDS - GERMANY -

SWITZERLAND - 5TH AUGUST 2019 TO 13TH AUGUST, 2019

AS PER INSIDE

CIRCULAR

AS PER INSIDE

CIRCULAR

12

3 Saturday,

03rdAugust, 2019

CONFERENCE ON GST AND TAX AUDIT AT MARIGOLD

AUDITORIUM, EKA CLUB, KANKARIA, AHMEDABAD ON

03.08.2019

CA. Yash Dhadda,

Jaipur and CA. Aniket

Talati, CCM,

Ahmedabad

Rs. 300 + GST for

Members

3

4 Saturday,

03rdAugust, 2019

LECTURE MEETING ON AUDIT REPORT ON 03.08.2019 CA Rupen Shah and CA

Utsav Hirani

Rs. 200 + GST for

Members

2

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JULY- 2019

Events in Images

2nd WORKSHOP ON GST ANNUAL RETURN AND AUDIT 27.05.2019 TO 06.06.2019

3rd WORKSHOP ON GST ANNUAL RETURN AND AUDIT 05.06.2019 TO 12.06.2019

CERTIFICATE COURSE ON IND AS ON 08.06.2019

INFORMATION SYSTEAM AUDIT ON 08.06.19

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AHMEDABAD BRANCH OF WIRC OF ICAI

JULY- 2019

SEMINAR ON PMLA AND BENAMI PROPERTY TRANSACTION ACT ON 08.06.2019

WOMEN CA INDUSTRIAL VISIT TO AMUL, ANAND ON 08.06.2019

FELICITATION OF OUR CRICKET TEAM ON WINNING INTER BRANCH CRICKET CHAMPIONSHIP CUP ON 14.06.2019

WICASA MANAGING COMMITTEE 2019-20 NEW MCM ON 23.06.2019

ICAI COURSE ON BLOCKCHAIN TECHNOLOGY FOR PROFESSIONAL ACCOUNTANTS ON 26.06.2019

ICAI CA DAY CELEBRATION PRESS CONFERENCE ON 29.06.2019

ICAI CA DAY CELEBRATION ON 30.06.2019

ICAI CA DAY CELEBRATION YOGA & HEALTH SESSION ON 30.06.2019

ICAI CA DAY CELEBRATION BLOOD DONATION ON 30.06.2019

JULY- 201916www.icaiahmedabad.com

AHMEDABAD BRANCH OF WIRC OF ICAI

AHMEDABAD BRANCH OF WIRC OF ICAIICAI Bhawan, 123, Sardar Patel Colony, Nr. Usmanpura Under Bridge, Naranpura, Ahmedabad - 380 014

079-3989 3989, 2768 0946, 2768 0537 | ahmedabad@icai.org | www.icaiahmedabad.orgPh.: E-mail: Web:Disclaimer: The Ahmedabad Branch of WIRC of ICAI is not in any way responsible for the result of any action taken on the basis of the advertisement published in the Newsletter.

The members, however, may bear in mind the provision of the Code of Ethics while responding to the advertisements.