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BCASHarnessing Talent and Providing Quality Service ANewsletter Monthly Newsletter of the Bombay Chartered Accountants’ Society Vol. 17  No. 09  December 2014 Vice-President’s Communiqué

Dear Member, LECTURE MEETINGS Greetings! Speaker : Milind S. Kothari, Chartered Accountant As I write this, the morning is much cooler and the rays of the sun Subject : Global Services Transformation - Are Indian CA firms on a winter morning appear more golden. There is a certain calm insulated? that envelopes the city during cooler days. However, the daytime Venue : Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, is still hot and the work in a CA’s life continues unabated, with 400 020 assessments in full swing. Day, Date & Time : Wednesday, 21st January, 2015, 6.15 p.m.** In America, the last Thursday of November is celebrated as the Thanksgiving Day. This day is dedicated to offer thanks for the Speaker : Hiro Rai, Advocate blessing of the harvest and of the preceding year. I particularly Subject : Important Income-tax decisions of 2014 like the idea of offering thanks and especially taking time to Venue : Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, remember all the blessings we have in our life–as people, things, Mumbai 400 020 and events. Even if our life seems challenging, somewhat uphill Day, Date & Time : Thursday, 29th January, 2015, 6.15 p.m.** all the way, there is bound to be some amount of ‘blessing’ we can cull out and be grateful for. Gratitude is such an essential Speaker : Satya Poddar, Ph. D. Goods and Services Tax – Curtain Raiser attribute of life that without it, we can have everything but we Subject : Venue : Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, will remain discontented, empty and small. As accountants, Mumbai 400 020 we can take a moment to ‘count’ our blessings for a change. Day, Date & Time : Wednesday, 4th February, 2015, 6.15 p.m.** This will be a deeper audit ‘assertion’ to make our life true and fair! (Continued on page 2)

Last week, I happened to meet a well-known entrepreneur of his personal wealth for primary education amounting to who converted a traditional family business into a multi $4 billion or R 25,000 crore. His foundation runs programs billion dollar IT Icon. He is one of the top 10 wealthiest Indians. for elementary education which is 90% controlled by local Although most people knew him for that, that was not really governments. In his speech, he mentioned that although the the only mark of that man. The event where I met him was programmes of his charitable foundation did immense work in organised to celebrate the spirit of philanthropy that he seven states, they always gave credit to the State Governments demonstrated in his lifetime. He had pledged/donated 25% for the accomplishments.

(Continued on page 2)

PROGRAMMES AT A GLANCE DATE VENUE PAGE NO. Introductory Seminar on Fraud Investigation and Forensic Audit...... 17.01.2015...... Walchand Hirachand Hall, Churchgate ...... 3 2nd Senior Chartered Accountants’ Meet...... 24.01.2015 to 26.01.2015...... Hotel Courtyard, Marriot, ...... 9 13th Residential Leadership Camp/Spiritual Retreat...... 29.01.2015 to 01.02.2015...... Leslie Sawhny Centre, Deolali, Nasik...... 6 Seminar on Permanent Establishment – Critical Aspects ...... 30.01.2015 ...... Palladium Hotel, Lower Parel ...... 4 Certificate Course for Professional Accountant...... 03.02.2015...... BCAS Off ice and H. R. College...... 5 Action Replay By A Legend! Standard Costing Demystified...... 06.02.2015...... Jai Hind College Auditorium, Churchgate...... 4 Programme on REIT/InvIT...... 07.02.2015...... Babubhai Chinai Hall, Churchgate...... 10 2nd Youth Residential Refresher Course...... 19.02.2015 to 22.02.2015...... Byke Resort, Goa...... 8 5th Residential Study Course on IFRS / Ind AS...... 19.02.2015 to 21.02.2015...... Leadership Development Academy, Lonavla...... 6 Corporate Governance and Independent Directors...... 19.03.2015 to 21.03.2015...... SP Jain Institute, Andehri West ...... 7 Lecture Meetings...... 21.01.2015, 29.01.2015, 04.02.2015, 06.02.2015, 13.02.2015...... 1

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President: Nitin P. Shingala Hon. Jt. Secretary: Narayan R. Pasari Hon. Treasurer: Mukesh G. Trivedi 98200 57694 | [email protected] 98200 38095 | [email protected] 98201 82456 | [email protected] Vice-President: Raman H. Jokhakar Hon. Jt. Secretary: Sunil B. Gabhawalla 98208 77976 | [email protected] 98213 23921 | [email protected]

1 DECEMBER 2014 (Continued from page 1)

These two things really touched me–first was about giving and second about not taking credit for it. So many of us are blessed with LECTURE MEETINGS quite a lot or at least quite a bit, but do we really and truly reach out to those that need it so much more? Moreover, when we give, Speaker: Narendra P. Sarda, Chartered Accountant can we cease to expect any credit for it? This was the blessing of Subject: Standard Costing learning I received last week which I want to share with you all. Venue: Jai Hind College Auditorium, “A” Road, Churchgate, Mumbai – 400 020 Through the BCAS Foundation, we have collected the first target of donation for calamity-hit Kashmir. Although we anticipated a Day, Date & Time: Friday, 6th February 2015, at 5.00 p.m. * longer time to collect the amount, the response was quick and generous! So, here’s a big THANK YOU to those who contributed Speaker: Brahmakumari Shivani so generously. Subject: Anger - The Enemy Within Venue: Jai Hind College Auditorium, “A” Road, Churchgate, The festive spirit of Christmas is already in the air. For some reason, Mumbai – 400 020 these potent words of St. Francis of Assisi come to mind: Day, Date & Time: Friday, 13th February, 2015, 6.15 p.m. ** “O Divine Master, Grant that I may not so much seek (Under the auspices of Amita Memorial Trust and jointly with The To be consoled as to console; Chamber of Tax Consultants) To be understood as to understand; * Fellowship over a cup of tea at 4.30 p.m. To be loved as to love. ** Fellowship over a cup of tea at 5.45 p.m. For it is in giving that we receive; It is in pardoning that we are pardoned; Yours truly, And it is in dying that we are born to eternal life.”

Wishing you love, peace and joy, Merry Christmas and best wishes for a happy 2015! Raman H. Jokhakar

RIGHT TO INFORMATION CLINIC Advisory Panel : Narayan K. Varma, Adv. A. K. Asher, Hema D. Sampat Clinic Co-ordinator: Ms. Bindu Mistry – 61377624 Foundation operates a Right to Information (RTI) Clinic on a regular basis. The Clinic provides help and guidance to BCAS members as also to non-members, i.e., all citizens, for making applications under the RTI Act and also assists in resolving any related diff iculties on the subject of RTI. The RTI Clinic operates on every 2nd, 3rd and 4th Saturday from 11 a.m. to 1 p.m. The next RTI Clinic days accordingly are 20th and 27th December, 2014 and 10th, 17th, 24th and 31st January, 2015. Please call to obtain a prior appointment.

ACCOUNTS & AUDIT CLINIC Advisory Panel : Sanjeev R. Pandit, Himanshu V. Kishnadwala, Jayesh M. Gandhi Clinic Co-ordinator : Ms. Bindu Mistry – 61377624 The next Accounts & Audit Clinic will be held on 3rd January, 2015 from 10.30 a.m. to 11.30 a.m. Persons interested in having their queries pertaining to accounting and auditing issues solved are requested to send the queries by e-mail to [email protected] one week in advance and call to obtain prior appointment, at least a day before the day of the clinic. Please note that the panel will not answer any queries pertaining to tax issues.

CHARITABLE TRUST CLINIC Advisory Panel : Ratanshaw J. Damanwala, Shariq M. Contractor, Gautam S. Nayak, Anil J. Sathe, Atul H. Shah Clinic Co-ordinator: Ms. Bindu Mistry – 61377624 The next Charitable Trust Clinic will be held on 2nd January, 2015 from 5 p.m. to 7 p.m. Chartered Accountants and Trustees interested in having their queries solved are requested to send their queries by email to [email protected] and call to obtain a prior appointment, latest by noon on the day of the clinic. Querists are also advised to bring along relevant papers like trust deeds, audited accounts, etc. ALL THE THREE CLINICS WILL BE HELD IN THE LIBRARY OF THE SOCIETY

BCAS 2 3 DECEMBER 2014 INTERNATIONAL TAXATION COMMITTEE INFOTECH & 4I COMMITTEE Chairman : Gautam S. Nayak Chairman : Ameet N. Patel Co-Chairman : Deepak R. Shah Co - Chairman : Nandita P. Parekh Convenors : Chetan M. Shah, Dhishat B. Mehta & Gaurang V. Gandhi Convenors : Kinjal M. Shah & Pinky H. Shah Co-ordinators : Anil D. Doshi, Mayur B. Desai & Kirit P. Dedhia Action Replay By A Legend! Seminar on Permanent Establishment – Critical Aspects Imagine yourself sitting in the audience in a packed hall And With increased globalization, the Concept of Permanent Establishment Don Bradman driving an exquisite straight drive on the stage OR (PE) has gained significant importance due to its direct impact on the tax Bjorn Borg swinging his strong arms and scoring an Ace with his revenues of the affected countries, both in and in other countries. famous racket on the stage The issue of whether there exists a PE or not, and if yes, how much profit OR should be attributed to it, is becoming an increasingly challenging issue Muhammad Ali floating like a butterfly and stinging like a bee in tax compliance and tax risk management. Expanded and inclusive with his impactful jabs on the stage manner of treating activities to allege the presence of a PE by the OR revenue authorities has created uncertainties and the emergence of Pele scoring a superb goal with a flying kick on the stage! Possible? e-commerce as the preferred method of conducting international trade Most certainly not. These legends will never show us an action replay ever again. has created an acute need to re-look at the very concept as we know it But a legend from our profession has agreed for an Action today. Further, OECD in the process of re-writing the rules of international Replay! At our request. taxation by introducing Base Erosion & Profit Shifting (BEPS) Reports has created a new challenge as well as an opportunity for tax professionals. The Infotech & 4i Committee proudly presents a mesmerizing Action Considering the importance and the far reaching implications of the concept Replay by none other than Mr. Narendra P. Sarda, Past President of ICAI. of PE, this Seminar is specially designed to update members in practice and Thousands of CA students who appeared for the CA exams in the 1970s working in the industry on the various issues connected therewith. and 1980s would most certainly attribute their success in the Costing paper Day & Date Friday, 30th January 2015 to that one memorable lecture by Mr. Sarda in a packed hall. Standard Time 9.30 a.m. to 5.30 p.m. Costing was explained by him in a manner that nobody else has yet been able to replicate till date. His lectures were always attended by hundreds of (Registration and Snacks start at 9.00 a.m.) students. And there was never any doubt in anyone’s mind that Mr. Sarda’s Venue Palladium Hotel, Lower Parel, Mumbai style of teaching was and remains unique. He stopped teaching Standard Fees Costing more than 2 decades ago. And that to our minds, is a great loss for Members the students who have taken up the CA course since then. (Ordinary, Life R 3,500 + R 432 (ST) = R 3,932 However, the exciting and good news is that Mr. Sarda has agreed to & Associate take one lecture – after so many years – again on Standard Costing for Members) students. So, here are the details of this “once in a life time” event: Non – R 4,000 + R 495 (ST) = R 4,495 Subject Standard Costing Demystified Members Speaker Narendra P. Sarda, Chartered Accountant (Fees include course material, breakfast, lunch and contribution of ` 50/- towards BCAS Foundation) Day & Date Friday, 6th February 2015 Time 5.00 p.m. to 8.00 p.m. Topics Speakers (Fellowship over a cup of tea at 4.30 p.m.) Recent Judicial Development on M. P. Lohia, Chartered Accountant various types of PE (with special Venue Jai Hind College Auditorium, “A” Road, Churchgate, emphasis on subsidiaries as a Mumbai – 400 020 PE and Secondment PE) and Entry is free for all. We are sure that many CAs would also love to take Attribution of Profit to the PE advantage of this unique and special opportunity. But we request our members to encourage their students to attend instead. Very few PE in the context of E-commerce Shefali Goradia, Chartered Accountant youngsters from today’s generation would have had the opportunity of (special emphasis on BEPS Report) interacting with Mr. Sarda or knowing about his teaching skills. It would Exclusions from the PE - special Yogesh Thar, Chartered Accountant be a deserving gift from a CA to his/her student. Let us all send as many reference to Liaison Off ice students as possible to listen to Mr. Sarda. Let us utilize this amazing opportunity and introduce our Guru to our Shishyas. Case studies on PE including Sunil Lala, Advocate attribution of profits With a view to ensure discipline and order at the venue, and considering the almost 100% certainty of there being a huge demand Enrolment is restricted to 125 participants. Limited seats are reserved for for this event, despite the entry being free, we would request you to send us the enrolment form duly filled in with the names of the non-members on first-come-first-served basis. students who would be attending. It would be fair and reasonable to Enrolment fees are non-refundable. limit the enrolment to 5 students per member. Enrolment form is printed on page 20. Enrolment form is printed on page 20.

BCAS 4 5 DECEMBER 2014 We recommend members to join this Retreat with spouse. In the past, participants attending with spouse have immensely benefited by this HUMAN RESOURCES COMMITTEE unique programme as they begin to share similar values and vision of life. The Retreat is also open to other close relatives and friends. Chairman : Mayur B. Nayak Convenors : Hemant P. Gandhi, Krishna kumar Jhunjhunwala & Enrolment form is printed on page 20. Mihir C. Sheth Co-ordinator : Krishna kumar Jhunjhunwala

ACCOUNTING & AUDITING COMMITTEE 13th Residential Leadership Camp/ Chairman : Harish N. Motiwalla Spiritual Retreat Co-Chairman : Rajesh R. Muni Convenors : Abhay R. Mehta, Mukesh K. Gilda & Nikhil D. Patel The annual Leadership Camp has evolved into Spiritual Retreat over the past few years. The themes of last three camps have been (i) 2012: Everyday Happiness; (ii) 2013: Living in Harmony and (iii) 2014: Holistic Wellbeing. This year we have selected the theme of: “Body-Mind Balance”. 5th Residential Study Course on Participants who have been regularly attending this annual event have IFRS / Ind AS experienced tremendous personal growth and have kindled desire for spiritual pursuit. Every Retreat brings fresh ideas and rejuvenates body, The International Financial Reporting Standards (IFRS) are fast emerging mind and intellect of the participants. as the globally accepted accounting framework with more than 100 countries having adopted or permitting use of IFRS and several other About this year’s theme of ‘Body – Mind Balance’: countries having announced adoption of IFRS. In India also, the Finance Minister has announced to introduce Ind AS, the new set of accounting “A sound mind in a sound body; is a short, but full description of a happy standards converged with IFRS. It is expected that the Indian companies state in this world”. – John Locke. Healthy mind leads to healthy body. would be permitted to voluntarily follow the Ind AS from F.Y.2015-16 and Our body and mind are so interconnected that wellness or otherwise of may be made mandatory from F.Y.2016-17. Announcements are expected one affects or influences the other. Therefore, balancing or integration for providing the timelines for adoption of Ind AS for the financial services of both these vital instruments of our existence is vital for a meaningful sector as well as insurance companies. With the enactment of Companies and purposeful life. Act, 2013, there are certain sections affecting financial statements which also require study and analysis. During the Retreat, participants will be exposed to various techniques of body-mind balancing through interactive sessions, meditation and Further, with the activities in capital markets and investments in global other activities. markets gaining momentum, the converged accounting standards would certainly increase acceptability of financial statements prepared by the Faculty: Dr. Harish Joshi and Mrs. Kokilaben H. Joshi from Indian Indian companies. This would also have effect on lowering the cost of Spiritual Healing Foundation, Ahmedabad. borrowings and increase in the valuations of the Indian companies. Dr. Harish Joshi is a Neuro-Physician and used to practice medicine before Realising the importance of the journey of convergence with IFRS/Ind giving up worldly pursuits for spiritual growth. He is an ardent follower AS and to be a catalyst in the transition to Ind AS/IFRS implementation, of Sri Sri Mahavatar Babaji and has been blessed with divine knowledge we at BCAS have structured Fifth Residential Study Course to equip the of Spiritual Healing (Parashakti Chikitsa) and other Yogic Practices from professionals with relevant skills and be a part of the smooth transition. Babaji. He had been “Art of Living” Teacher and has conducted number of The 5thResidential Study Course (RSC) is in continuation of the learning courses for the Indian Army. At present he is imparting divine knowledge process of IFRS which started in the year 2009. of Parashakti Chikitsa to seekers. He is being assisted in his mission, by his The 5th Residential Study Course is scheduled on 19th, 20th & 21st wife Smt. Kokila Joshi. February 2015 at L&T, Leadership Development Academy, N.H.4, Programme Details: Lonavla – 410403. The detailed program structure with case study papers/ presentation Days Thursday, Friday, Saturday & Sunday ( Upto Lunch Time) papers along with paper writers/speakers will be announced shortly. In the meanwhile please ensure to block the dates for the learning initiative. Dates 29th, 30th, 31st January & 1st February 2015 Venue Leslie Sawhny Centre, 83, Rest Camp Road, Deolali, Nasik 422 101 Course Fee Early Bird From 16th January 2015 This dilettante notion that the global economy is evil Up to 15 January 2015 because big corporate leaders make too much money... they do make too much money, but the only way we’ve Member ` 7,120 + Rs 880 (ST) = ` 7,565 + ` 935 (ST) = ` 8,500 figured out how to generate wealth in this world is and Family ` 8,000 through the market economy. (Minimum Two Persons) - Joe Klein Single ` 7,565 + ` 935 (ST) = ` 8,010 + ` 990 (ST) = Person ` 8,500 ` 9,000 Fee Includes Transportation (on car pool basis), Study Material, Food, Stay, and contribution of ` 50/- towards BCAS Foundation.

BCAS 6 Programme details are presented hereunder: CORPORATE & SECURITIES LAWS COMMITTEE Day & Date Thursday, 19th March to Saturday, 21st March 2015 Time 10.00 a.m. - 6.00 p.m Chairman : Kanu S. Chokshi Venue SP Jain Institute of Management & Research, Convenors : Jayant M. Thakur, Manish P. Sampat & Sameer L. Kapadia Inside Bhavans College Campus, Munshi Nagar, Dadabhai Co-ordinators: Bhargava Vatsaraj , Kinjal M. Shah, Manish P. Sampat & Road, Andheri (West), Mumbai - 400 058

Shreyas P. Trivedi Fees ` 18,690 + ` 2,310 (ST) = ` 21,000 Fees include Breakfast, Lunch, Tea Coffee, Course Material and certificate award function preferably at star venue Certificate Course on Corporate Enrollment for Limited seats only Governance and Role of Day Topic • Introduction to Concepts and Corporate Social Responsibility Independent Directors with to all stake holders Day 1 • Strategy & overall Role of the Board special focus on Women Director • Audit Committee Objectives, Charter, Meeting Programme and other committees Jointly with • Related Party Transactions SP Jain Institute of Management & Research • Internal Controls • Directors Responsibility Statement with special refernce to Day 2 Regulatory Compliance u/s 134(5) of the Companies Act, 2013 The Companies Act, 2013 has overhauled a lot of Sections and • Financial Statement Oversight provisions relating to the Governance of both Private Limited & • Liabilities of a Director Limited Companies. The Ministry of Corporate Affairs carried out • Whistle blowing corresponding changes to the Clause 49 of the Listing Agreement • Statutory Auditor Relationship which deals with the Independent Directors for the listed companies. A • Internal Audit need for comprehensive and strong legislation relating to Independent Day 3 • Risk Management Directors became vital and eventually led to the overhauling of not only • Board Dynamics & Expectations from Independent Directors • Concluding Session the Companies Act but also the Clause 49 of the Listing Agreement. A lot of responsibility and liabilities are now placed not only on the Enrolment form is printed on page 20. directors of listed companies but more so on the Independent Directors also. The Regulators felt that the roles, duties and liabilities of all the directors needed to be relooked and for making their role effective for Corporate Governance and for meeting the changes in the Companies Act, 2013. Clause 49 has added a new dimension by proposing appointment and presence of Women Directors on Boards. The Act has introduced new committees like the Corporate Social Responsibility Committee to ensure good Corporate Governance apart from the existing committees. With a view to look at all these new provisions, the roles and responsibility of the board, The Bombay Chartered Accountant’s Society along with S.P. Jain Institute of Management and Research (A business school also entrusted with the job of furthering Corporate Governance responsibilities by the Ministry of Corporate Affairs) have again fine tuned one of their most successful programme on Corporate Governance and Independent Directors with a special focus on Women Directors. The programme will be a three day full time programme to be held at the campus of S.P.Jain’s Institute of Management and Research to address the following issues: 1. Overall role of the Board and Independent Directors 2. Strategy, Culture, Planning and Board Dynamics required to be addressed 3. Responsibility to all the Stakeholders 4. Role of various committees with special focus on the Audit Committee dealing with related party transactions, Directors responsibility on Internal Controls, Regulatory Compliances, Nomination, Evaluation and Remunerations 5. Corporate Social Responsibility Committee 6. Liabilities of the Directors 7. Expectation of all the Stakeholders from the Independent Directors.

7 DECEMBER 2014 BCAS 8 9 DECEMBER 2014 BCAS 10 11 DECEMBER 2014

13 DECEMBER 2014 BCAS 14 RECENTLY RELEASED PUBLICATIONS OF BCAS

FAQs on Accounting Standards Taxation of Fees for Technical Services – A Referencer (The 7 authors of the book have tried to simplify the understanding of four In this book, the two authors have mainly basic Accounting Standards - AS2, AS7, focused on cross-border payments AS9 and AS15, which have an important of Fees for Technical Services. It is an applicability in any business entity. attempt by both the authors to compile To make the users of financial various judicial pronouncements on statements as well as preparers of the subject of FTS and classify them financial statements aware about according to various typical cross-border the importance of each accounting services. They have selected important standard, the authors have decision(s) pertaining to each typical disseminated the Accounting Standard service and provided a brief overview of into easy and simple Question and such decision(s). This publication would Answer format so as to have ease in be found useful both by the Taxpayers understanding and demystifying the and the Tax Practitioners/Advisors. accounting standards. Members : R 60/- Members : R 450/- Non-Members : R 75/- Non – Members : R 500/- Postage : R 40/- Postage : R 200/-

Gita for Professionals – 2nd Edition (In English & Gujarati) The CD contains the Paper and Presentation and Case Studies of the Residential Refresher Course held from 27th to 29th June 2014.

The author feels that Conflict is very much a part of life, as experience is. Indeed, it is part and parcel of our existence both at home and elsewhere. In this book the author has elucidated the concepts of ‘duty and ethics’ by means of parables and anecdotes which at times seem autobiographical. In the second revised and enlarged edition, the author has added a new Chapter containing “Thirteen lessons from the Gita for professionals to make this world a better place to live in”, wherein he not only talks about various aspects of one’s personality such as Humility and Non-violence but also throws light on some of the essentially good acts in life such as Giving, R 1,500 for 1 CD Sacrifice, Forgiveness, Goal- setting, Discipline, Cleanliness, Service to Guru etc. for Members and Price : English - R 75/- R 1,800 for 1 CD Gujarati - R 100/- for Non-Members Postage : R 50/- Postage : R 50

15 DECEMBER 2014 OTHER PUBLICATIONS OF BCAS

RTI for ITI – Right to Information for Income Tax Issues FAQ’s on e-TDS This book is an attempt to ease the The 3 authors of the book have tried assessee’s issues in the Income to list and answer the questions based Tax arena by making use of the on their practical experience and those RTI Act and other grievance of their clients. They have however redressal systems. It is aimed at addressed most of the common issues being an easy-to-comprehend faced by tax deductors. This publication guide for tax payers at large. The would therefore be a useful and handy book acts as a handy guide for tool for staff entrusted with the work of procuring much needed information TDS compliance. This book will serve in relation to various usual and not-so-usual Income Tax issues its purpose of helping tax deductors faced frequently by the taxpayers. understand the finer nuances of the Important information is made procedures, and aid them in the process available at your fingertips by way of of TDS compliance. annexures. Member : R 60 Member : R 100 Non-Member : R 75 Non-Member : R 120 Postage : R 30 Postage : R 50

AdvanceA Rulings Law And Laws & Business – A Compendium ProceduresP – Now with a (4th Edition) SupplementS and free CD This edition is quite wide in its coverage BookB - This publication aims to give and as in earlier editions, the book has a broad idea of the law, purpose, been divided into 5 sections. Interesting anda procedure for seeking an highlight of this edition is an extensive advancea ruling from Income Tax coverage of Laws relating to the Real perspective.p It also shares the first Estate and Financial Sectors, which will Supplement & CD hand experience of the Authors in be of immense use and will serve as a representing before the Hon’ble guide to the taxpayers and professionals. Authority and some of the frequently Member / Non-Member : R400 asked questions practically faced by Postage : R200 the Authors. Additionally, a summary of cases wherein the rulings have been pronounced by this Authority Audit Checklist For Companies, in the last three years, has also been Edition 2013 captured. Appreciating the increased statutory Supplement – This supplement is compliance and covering standards updated with the rulings pronounced on auditing, a revised and updated by the Authority for Advance publication on Audit Checklist is made. Rulings, since July 2012. This In 2007, the publication on Audit supplement when read along with Checklist was released. Members had the original Publications, would be an overwhelming request for this a comprehensive reference material publication. The revised and updated for the subject on Authority for edition of this publication extensively Advance Rulings. covers in detail Accounting Standards, Standards on Auditing, Audit Documentations and CD – Free CD contains a soft copy of the Publication and the important material of statutory requirements. Supplement. Member : R 400 Member / Non-Member : R 125 Non-Member : R 500 Postage : R 50 Postage : R 200

BCAS 16 BCAS WEB TV Subscribe Now!!! Lecture Meeting on International & Domestic Transfer Pricing – Recent Developments by CA. T. P. Ostwal, held on 5th November, 2014, is now available on BCAS Web TV.

Particulars Subscription Total Charges + Service Tax Charges from 1st April 2014 to 31st March 2015 Ordinary, Life and Associates of Corporate Membership R 600 + 12.36% R 674 Students R 600 + 12.36% R 674 Journal subscribers R 900 + 12.36% R 1,011 Non-members R 1,200 + 12.36% R 1,348

Payment can be made by cheque/DD payable at par in Mumbai in favour of ‘Bombay Chartered Accountants’ Society.’ You can also pay by cash/credit card at the payment counter of BCAS Off ice. If you have an Imprest Account, then you can instruct us to adjust the subscription through the imprest Account. For further details log on to www.bcasonline.org

17 DECEMBER 2014 A. P. (DIR Series) Circular No. 41 dated November 25, 2014 Routing of funds raised abroad to India FROM RBI This circular states that when funds raised overseas by overseas Contributed by : Gaurang V. Gandhi holding / associate / subsidiary / group companies of Indian Companies are routed back to the Indian companies: - The Reserve Bank of India has issued the following 8 circulars & DIPP 1 Press Note 1. Indian companies / their banks must not issue any direct or indirect guarantee or create any contingent liability or off er any security in A. P. (DIR Series) Circular No. 37 dated November 20, 2014 any form for such borrowings by their overseas holding / associate Export of Goods / Software / Services – Period of Realisation and / subsidiary / group companies except for the purposes explicitly Repatriation of Export Proceeds – For exporters including Units in permitted in the relevant Regulations. SEZs, Status Holder Exporters, EOUs, Units in EHTPs, STPs and BTPs 2. Funds raised abroad by overseas holding / associate / subsidiary / This circular states that all exporters, including Units in SEZ, group companies of Indian companies with support of the Indian Status Holder Exporters, EOU, Units in EHTP, STP & BTP, must companies / their banks, as mentioned above, cannot be used in India uniformly realize and repatriate export proceeds with respect to unless it conforms to the general or specific permission granted under export of goods / services / software within a period of 9 months the relevant Regulations. from the date of export. However, in the case of exports made to warehouses established outside India, the period for realization 3. Indian companies / their banks using or establishing structures which and repatriaton of export proceeds will continue to be 15 months contravene the above will be liable for penal action as prescribed from the date of export. under FEMA, 1999.

A. P. (DIR Series) Circular No. 38 dated November 20, 2014 A. P. (DIR Series) Circular No. 42 dated November 28, 2014 Notification No. FEMA.321/2014-RB dated September 26, 2014 Import of Gold (under 20: 80 Scheme) by Nominated Banks / Agencies Acquisition / Transfer of Immovable property – Payment of taxes / Entities This circular states that the 80 : 20 scheme for import of gold and This circular clarifies that all transactions involving acquisition of all instuctions / restrictions pertaining thereto stand withdrawn with immovable property in India by NRI / PIO / Non-Residents are subject immediate eff ect. to the applicable tax laws in India. A. P. (DIR Series) Circular No. 43 dated December 02, 2014 A. P. (DIR Series) Circular No. 39 dated November 21, 2014 Notification No. FEMA. 324/2014-RB dated October 31, 2014 External Commercial Borrowings (ECB) Policy – Parking of ECB Remittance of Assets – Submission of Auditor’s certificate proceeds This circular reiterates that RBI will not issue any instructions under the Presently, persons who have availed ECB have to immediately bring FEMA, 1999 with respect to submition of certificates on tax payments. into India, for credit to their Rupee accounts with banks in India, ECB Banks will have to comply with the instructions issued by CBDT with proceeds meant for Rupee expenditure in India for permitted end uses. respect to requirements under the tax laws, as applicable.

This circular permits a person who has availed ECB to park ECB A. P. (DIR Series) Circular No. 44 dated December 04, 2014 proceeds (both under the automatic and approval routes) in term Exim Bank’s Line of Credit of USD 25 million to the Government of the deposits with a bank in India for a maximum period of six months, Republic of Niger subject to the under mentioned terms and conditions, pending Exim Bank has made available, subject to certain terms and conditions, utilisation for permitted end uses. to the Government of the Republic of Niger a Line of Credit of US $ 25 i. The applicable guidelines with respect to eligible borrower, million for financing purchase of eligible goods, machinery, equipment recognised lender, average maturity period, all-in-cost, permitted end and services for Potable Water for Semi Urban and Rural Communities uses, etc. have been complied with. in Niger. Eligible goods and services including consultancy services of ii. No charge in any form can be created on such term deposits i.e. the value of at least 75% of the contract price must be supplied by the to say that the term deposits should be kept unencumbered during sellers from India, while the remaining 25% of the goods and services their currency. may be procured by the sellers from outside India. iii. Such term deposits must be exclusively in the name of the borrower. The last date for opening of Letters of Credit and Disbursement for project iv. Such term deposits must be available for liquidation as and exports will be 48 months from the scheduled completion date of the when required. contract and March 13, 2020 in case of supply contracts. Press Note No. 10 (2014 Series) dated December 03, 2014 A. P. (DIR Series) Circular No. 40 dated November 21, 2014 Review of Foreign Direct Investment (FDI) policy on the Construction Release of Foreign Exchange for Haj / Umrah pilgrimage Development Sector – amendment to ‘Consolidated FDI Policy This circular permits persons going on Haj / Umrah pilgrimage to Circular 2014’ carry the entire BTQ entitlement in cash / up to the cash limit specified This Press Note has with immediate eff ect revised paragraph 6.2.11 of by the Haj Committee of India. ‘Consolidated FDI Policy Circular 2014’ as under: -

BCAS 18 Provisions Revised policy pursuant to Press Release Existing Policy Minimum Land Minimum area to be developed under each project would be: Minimum area to be developed under each project Requirements would be as under: (i) Development of serviced plots: No minimum land (i) Development of serviced housing plots: requirement; Minimum land area of 10 hectares; (ii) Construction-development projects: Minimum floor (ii) Construction-development projects: Minimum area of 20,000 sq. meters; built-up area of 50,000 sq. meters; (iii) Combination project: Any of the above two conditions (iii) Combination project: Any of the above two need to be complied with. conditions need to be complied with. Minimum Minimum capitalization of USD 5 million. For wholly owned subsidiary: minimum capitalization of Capitalization USD 10 million; Requirements For joint ventures with Indian partners: minimum capitalization of USD 5 million. Timing of The funds would have to be brought in within 6 months of The funds would have to be brought in within 6 months of investment commencement of the project. ‘commencement of business of the Company’ Commencement of the project’ has been explained to mean ‘date of approval of the building plan / lay out plan by the relevant statutory authority’. Subsequent tranches can be brought in till the earlier of: No such concept of 10 years from commencement of (i) Period of 10 years from the commencement of the project; business earlier. or (ii) The completion of the project. Lock-in The investor is permitted to exit from the investment at (i) 3 years The investor is permitted to exit from the investment from the date of final instalment, subject to development of trunk at expiry of 3 years from the date of completion of infrastructure, or (ii) on the completion of the project. minimum capitalization. ‘Trunk infrastructure’ has not been defined, but is explained For investment in tranches: The investor is permitted to to include roads, water supply, street lighting, drainage and exit from the investment at the later of (a) 3 years from sewerage. the date of receipt of each tranche/ instalment of FDI, or (b) at expiry of 3 years from the date of completion of minimum capitalization. Repatriation of FDI or transfer of stake by a non-resident investor to Prior exit of the investor only with the prior approval of another non-resident investor would require prior FIPB approval. FIPB. Sale of developed Only developed plots are permitted to be sold. Developed plots Sale of undeveloped plots prohibited. Undeveloped plots plots only would mean plots where trunk infrastructure is developed, including would mean plots where roads, water supply, street roads, water supply, street lighting, drainage and sewerage. lighting, drainage and sewerage, and other conveniences, as applicable under prescribed regulations, have not been made available. The requirement of completion certificate has been done away with. The investor was required to provide the completion certificate from the concerned regulatory authority before disposal of serviced housing plots. Minimum No requirement of any such minimum development. At least 50% of the project must be developed within a period development of 5 years from date of obtaining all statutory clearances. Exemption They are no longer exempt from the sale of undeveloped plots. Certain investments were exempt from complying with the following requirements: (i) minimum land area; (ii) minimum capitalization, (iii) lock-in, (iv) 50% development within 5 year requirements and (v) sale of undeveloped plots. Affordable Projects which allocate 30% of the project cost for low cost No such exemption. Housing aff ordable housing are exempt from the minimum land area, and minimum capitalization requirements. Certificate from Investee company required to procure an architect empanelled No such requirement. architect by any authority authorized to sanction building plan to certify that the minimum floor area has been complied. Completed 100% FDI permitted in completed projects for operation and No such provision projects management of townships, malls/ shopping complexes and business centers. Responsibility Investee Company. Investor / Investee company. for obtaining all necessary approvals

19 DECEMBER 2014 Registered with the Registrar of Newspapers for India under R.N. 68365/98 Regd. No. MH/MR/South-88/2012-14 Posted at Mumbai Patrika Channel Sorting Offi ce, Mumbai-1 Published on 15th of every month • Posted on 15th & 16th of every month BCAS Study Circles 2014–15

Study Tick your Study Tick your Circle No. Subject Fee choice here Circle No. Subject Fee choice here I Direct Tax Laws 449* VI Human Resource Development 449* II Indirect Tax Laws 449* VII ITF 1,123* III Company Law, Auditing & Accounting 449* VIII BCAS Suburban Study Circle 674* IV FEMA 449* IX International Economics 1,123* V Information Technology 449* X Students Study Circle 224*

* Inclusive of Service Tax of 12.36%

Seminar Fraud Investigation and Forensic Audit...... 17-01-2015...... R3,371 per member...... ...... R4,045 per non-member......  Permanent Establishment – Critical Aspects...... 30-01-2015...... R 3,932 per member...... ...... R4,495 per non-mber...... 

Action Replay by a Legend Lecture on Standard Costing Demystified...... 06-02-2015...... FFree Entry ...... 

Refresher Course 2nd Youth Residential Refresher Course ...... 19-02-2015 to 22-02-2015...... Till 20.12.2014...... After 20.12.2014 Member...... R 11,235...... ...... R 13,482......  . Non-member...... R 12,358...... ...... R 14,606......  Child (6-12 years)...... R 4,775...... ...... Child Under 6 Years...... 

Camp 13th Residential Leadership Camp/Spiritual Retreat...... 29.01.2015 to 01.02.2015...... Till 15.01.2015...... From 16.01.2015 Member and family ( Minimum 2 persons)...... R 8,000...... ...... R 8,500......  Single person...... R 8,500...... ...... R 9,000...... 

Meet

2nd Senior Chartered Accountants’ Meet...... 24.01.2015 to 26.01.2015...... R 15,0000 per person...... ...... R 28,0000 per couple....

Combined Enrolment Form Certifi cate Course Certificate Course for Professional Accountants...... 03.02.2015 onwards...... R 6,741 per participant...... 

Programme Programme on REIT/Invit...... 07.02.2015...... Before 07.01.2015...... From 07.01.2015 Member...... R 2,022...... ...... R 2,247......  Non-Member...... R 2,528...... ...... R 2,809......  Corporate Governance and Independent Directors...... 19.03.2015 to 21.03.2015...... R 21,000 ...... 

Name : ...... Address : ...... E-mail : ...... Mobile : ...... Tel. : ...... Fax : ...... Age : ...... Gender : ...... (M/F) BCAS Memb. No. : ...... Tel. (O) : ...... Tel. (R) : ...... Fax : ...... Choice of food (wherever applicable) ...... Jain  ...... Non-Jain  Cash/Draft/Cheque no...... Drawn on ...... Bank, Dated ...... for an amount of r...... is enclosed. Date : ...... (Signature) • Please fi ll in the above form and send the same to the Society’s offi ce along with requisite payment. • Please mention your name and membership number on the reverse side of the local cheque/at par cheque/Demand Draft. • The Cheque/DD will be in the name of “Bombay Chartered Accountants’ Society”. Your participation will be confi rmed only after the realization of payment at BCAS, for which a receipt will be provided for your reference. • Kindly note that the cash counter timings are from 10.30 a.m. to 5.30 p.m. on Monday to Friday and 10.30 a.m. to 1 p.m. on Saturday. The lunch time is 1.30 p.m. to 2 p.m. Members are requested to co-operate in this regard. • Cancellation policy: Kindly note that no refund will be given in case of cancellation for any reason and no substitute will be allowed. Edited, printed & published by Narayan Varma on behalf of Bombay Chartered Accountants’ Society, Mumbai-400020. Printed at Spenta Multimedia, Mumbai-400013.

BCAS 20