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CJ May 2017.Pdf Vol. V No. 8 CONTENTS May – 2017 (GLWRULDOK. Gopal )URPWKH3UHVLGHQWHitesh R. Shah &KDLUPDQ V&RPPXQLFDWLRQVipul Choksi SPECIAL STORY : Vision 2025 – Tax Laws and Administration ,GHDO7D[6\VWHPIRUVW&HQWXU\Y. P. Trivedi &RUUXSWLRQSohrab Erach Dastur 3. Future of Litigation – Indirect Taxes ...............................P. C. Joshi ...............................................19 7D[(YDVLRQDQG7D[$YRLGDQFH ă7D[3ODQQLQJDQG0RUDOLW\Dinesh Vyas 5. Tax Terrorism in India .......................................................Saurabh N. Soparkar ..............................28 *$$5ă7HVWLPRQ\RI7UXVW'HILFLHQF\V. Sridharan & Amar Gahlot 7. Tax litigation in India – Vision 2022 – Platinum Jubilee of India's Independence a – Role of Tax Professionals and Tax Administration in the Era of Technology and Innovation – Road Ahead ......................................................................Dr. K. Shivaram .....................................42 8. Mediation and Conciliation of Tax Disputes .................S. R. Wadhwa .........................................48 5ROHDQG5HVSRQVLELOLWLHVRI3URIHVVLRQDO %RGLHVLQWKH&XUUHQW6FHQDULRP. N. Shah 9LVLRQIRUWKH$FFRXQWLQJ3URIHVVLRQT. N. Manoharan &KDOOHQJHVWRWKH$FFRXQWLQJ 7D[3URIHVVLRQDOVSunil Talati 12. International Tax Disruption – Way Forward ...............T. P. Ostwal & Kush Vatsaraj...............71 *67ă&KDQJLQJ/DQGVFDSHRI,QGLUHFW7D[HVV. Lakshmikumaran *67ă$1HZ(UDRI&RRSHUDWLYH)HGHUDOLVP LQ,QGLDSatya Poddar & Shalini Mathur 15. Technology Disruptions .....................................................Ninad Karpe ............................................91 5LJKWWR,QIRUPDWLRQ ,QFRPH7D[Shailesh Gandhi (OHFWURQLF(YLGHQFHLQ6HDUFKDQG6HL]XUH 3URFHHGLQJVXQGHUWKH,QFRPH7D[$FWNishant Gokhale & Deepak Bhaskar THE CHAMBER NEWSHinesh R. Doshi & Haresh P. Kenia L 3 The Chamber's Journal | 0D\ The Chamber of Tax Consultants 3, Rewa Chambers, Ground Floor, 31, New Marine Lines, Mumbai – 400 020 Phone : 2200 1787 / 2209 0423 • Fax : 2200 2455 EMail: oeonlineor • ebsie : h://wwwonlineor The Chamber's Journal Editor & Journal Committee 2016-17 Managing Council Editorial Board Chairman 2016-17 2016-17 iul Chosi Presiden Ediorial oard ie Chairman iesh R Shah Bhadresh Doshi Chairman ie Presiden V. H. Patil Ex oio Ajay R. Singh Hitesh R. Shah • Ajay R. Singh Edior on Serearies K. Gopal Convenors Hinesh R. Doshi Bhavik Shah • Mandar Telang • Toral Shah Haresh P. Kenia Ass Ediors Pas Presiden e earer on reasurer Heetesh Veera Vipin Batavia Haresh Kenia Manoj Shah Parag S Ved Paras K. Savla Manain Counil Member Imm Pas Presiden Yatin Vyavaharkar Ashok Sharma Avinash B Lalwani Members Members Members A. S. Merchant Anish Thacker Keertiga Sharma Amit Purohit Paras S Savla Keshav Bhujle Atul Bheda Kush Vora Ashok L. Sharma Paresh P Shah Kishor Vanjara Bakul Mody Lakshit Desai Pradip Kapasi C. N. Vaze Mitesh Kotecha Bhavesh R Vora Parimal B. Parikh Vipul Joshi Chintan Gandhi Nikita Badheka Hemant R. Parab Rahul K. Hakani Dharan Gandhi Pankaj Majethia Keshav B. Bhujle Shailesh M. Bandi Chairman Dhaval Talati Paresh Vakharia Ketan L. Vajani Sujal Shah Vipul Choksi Harsh Kapadia R. K. Sinha Kishor Vanjara Vikram Mehta Exio Janak Pandya Rajkamal Shah Mahendra Sanghvi Vipul B. Joshi Hitesh R. Shah Janak Vaghani Rakesh Upadhaya Vipul Choksi Ajay R. Singh Jayant Gokhale Sanjeev Lalan Kalpesh Katira Vinodkumar Jain K. Gopal – Edior DISCLAIMER 2SLQLRQVYLHZVVWDWHPHQWVUHVXOWVUHSOLHVHWFSXEOLVKHGLQWKH-RXUQDODUHRIWKHUHVSHFWLYHDXWKRUVFRQWULEXWRUV 1HLWKHU 7KH &KDPEHU RI 7D[ &RQVXOWDQWV QRU WKH DXWKRUVFRQWULEXWRUV DUH UHVSRQVLEOH LQ DQ\ ZD\ ZKDWVRHYHU IRU DQ\ SHUVRQDO RU SURIHVVLRQDO OLDELOLW\ DULVLQJ RXW RI WKH VDPH 1RQUHFHLSWRIWKH5HYLHZPXVWEHQRWL¿HGZLWKLQRQHPRQWKIURPWKHGDWHRISXEOLFDWLRQZKLFKLVWKRIHYHU\PRQWK 1R SDUW RI WKLV SXEOLFDWLRQ PD\ EH UHSURGXFHG RU WUDQVPLWWHG LQ DQ\ IRUP RU E\ DQ\ PHDQV ZLWKRXW WKH SHUPLVVLRQ LQ ZULWLQJ IURP 7KH &KDPEHU RI 7D[ &RQVXOWDQWV READER'S SUGGESTIONS AND VIEWS :H LQYLWH WKH VXJJHVWLRQV DQG YLHZV IURP UHDGHUV IRU LPSURYHPHQW RI 7KH &KDPEHU V -RXUQDO .LQGO\ VHQG \RXU VXJJHVWLRQV RQ R௻FH#FWFRQOLQHRUJ ADERISEMEN RAES MEMERSIP FEES RNAL SSCRIPIN REISED FEES AND SSCRIPIN FRM 201718 Per Inserion Sr. Membership Type Fees Service Total Fourth Cover Page (Colour) ` 15,000 No. Tax 15% Second & Third Cover Page (Colour) ` 13,500 1. Life Membership 12000 1800 13800 Additional Optional subscription charges for Annual Journal ` 1200 0 1200 Ordinary Full Page (B&W) ` 7,500 ` 15000 Ordinary Half Page (B&W) ` 3,500 2. Ordinary Members Ordinary Quarter Page (B&W) ` 1,750 Entrance Fees ` 500 75 575 Annual Membership Fees, including subscription for 2200 330 2530 (Special discount on bulk inside colour pages) Journal ` 3105 3. Associate Membership DISCN Entrance Fees ` 1000 150 1150 25% for 12 insertions Membership Fees including Subscription for Journal 5000 750 5750 ` 6900 15% for 6 insertions 4. Student Membership 5% for 3 insertions Entrance Fees ` 250 38 288 Journal Subscription 700 0 700 ` 988 Full advertisement charges should be 5. Non-members paid in advance. Journal Subscription ` 2100 0 ` 2100 4 LL The Chamber's Journal | 0D\ Editorial This issue is dedicated to 90th year celebrations. The well-known American Editor of Essence Susan L. Taylor says that “we are made up physically and spiritually of the billions who have passed before us. They gave us life, they gave us our culture, they gave us the world on which we have built our present world. Our values and traditions, our habits of thought are in large measure the wisdom of their experience passed down through the ages. Our breath, the very air we breathe, was once their breath.” In the above spirit, we have requested senior and eminent professionals to contribute to this issue. They have obliged us by doing that. The Income-tax Review of August and September, 1996, was brought out as “Vision 2000”, to commemorate completion of 70 years of The Chamber. The Editorial for that issue was titled “Why even 1% of our population is not paying income tax?” Please recall Hon'ble Finance Minister’s speech while introducing the Finance Bill, 2017, in which he had brought out a very small number of taxpayers. Even after passage of 20 years, the tax base has not expanded as desired. The tax administration is facing many challenges. The uncertainty created by constant flow of case laws from various High Courts and the Apex Court adds to the woes of the taxpayers. The role of professionals becomes very crucial in such a situation. The Chamber of Tax Consultants through the Chamber’s Journal always tries to disseminate knowledge and help professionals to have in-depth knowledge of the tax laws as well as allied laws. The articles in this issue are quite thought provoking and this issue is deſnitely to be preserved. Chinese Philosopher Hong Zicheng says that "what are the blessings left to us by our ancestors? They are the lives we now enjoy, but we should bear in mind that they are the sum of difſculties when they were amassed. What are the blessings we leave our descendants? They are what our lives leave behind, but we should bear in mind how long they can be waylaid and uppended." With this, I express my gratitude to all the contributors of this issue. Thanking you K. GOPAL Editor LLL 5 The Chamber's Journal | 0D\ From the President Dear Members, When I started depicting my thoughts for President Message, I realised that ten months have passed with blink of eyes since I took the charge as President of Chamber and this will be my second last communication with you all. This year we all are witnessing major changes like implementation of GST, IND AS (IFRS) for 2 tier companies, ICDS, etc. Legal Challenge and regulatory compliance will prove to be one of the biggest challenges for India Inc. in the year 2017. In addition to this, recently, Hon’ble Prime Minister Shri Narendra Modi pitched for shifting the fiscal year from the current April to March period to January to December period so as to link it with crucial monsoon period. If indeed this change happens, this will be a major break from a 150-year old colonial practice implemented by English rulers in India way back in 1867. This will be a progressive, convenient transition for the Indian economy as it gets increasingly integrated to the global economy and with more companies from across border engaging in business activities. Business entities are not fully geared up to deal with such changes which involves huge cost in terms of infrastructure and cost of manpower. Compliance costs of business entities will increase manifold and in the times when margins are dropping it will be a big challenge for some of the Business Houses. However the moot question is, whether the Government is geared up for such drastic changes ………….? Already, there is lot of confusion amongst the business entities with the change in the tax system when the GST will be implemented. These changes are for the good and will bring financial discipline. At the same time we need to see the ground reality whether we can absorb all these changes simultaneously. It was reported in newspaper that India spends less than 1% of its GDP on research and development (R&D). The comparable figures for South Korea and Singapore are 4.3% and 2.2% respectively. In India 60% of R&D spend is by Government, 4% by universities, and the remaining by business including R&D by MNC captives in India. Govt. should create a conducive environment for conducting more in-house research and make India a global hub for research activities. Some
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