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Harnessing TalentBCAS and Providing Quality Service n A MonthlyNewsletter Newsletter of the Bombay Chartered Accountants’ Society Vol. 14 n No. 12 n March 2012 Vice-President’s Communiqué Budget Meetings Dear Member, Venue I Yogi Sabhagruha, Shree Swami Narayan Mandir, Dadar (East), Mumbai – 400014 The recent election results in states like Uttar Pradesh, Punjab, and Goa Day, Date & Time I Tuesday, 20th March, 2012, 6.15 p.m. have shown us that what matters and succeeds in a real democracy is Speaker I S. E. Dastur, Senior Advocate true merit—this vote for performance is a welcome sign. Further, elevation Subject I Direct Tax Provisions of the Finance Bill, 2012 of Mr Akhilesh Yadav as the next Chief Minister of Uttar Pradesh also Venue I Babubhai Chinai Hall, 2nd Floor, IMC, sends the important and positive message that we need to elect people Churchgate, Mumbai – 400020 with clear goals and a clean pair of hands. Let’s hope that the people Day, Date & Time I Thursday, 22nd March, 2012, 6.15 p.m. around him allow him to succeed. Speaker I CA. Bhavna Doshi and Mr. Dadi Engineer, Solicitor & Advocate This year, there are great expectations from the Budget and the Finance I Indirect Tax Provisions of the Finance Bill Bill 2012. Whether these expectations are fulfilled or belied will be known Subject by the time this communication reaches you. We can only hope that (The above budget meeting is conducted jointly with the Forum of Free Enterprise) laws are amended or passed in a manner that avoids undue hardship to taxpayers at large. Albert Einstein had once said, “Nothing is more Venue I Walchand Hirachand Hall, 4th Floor, IMC, destructive of respect for the government and the law of the land than Churchgate, Mumbai – 400020 passing laws which cannot be enforced.” Day, Date & Time I Monday, 26th March, 2012, 6.15 p.m.* Speaker I Vikram Nankani, Advocate To understand the intricate provisions and niceties of the Budget, Subject I Indirect Tax Provisions of Finance Bill, 2012 the Society has planned meetings on Direct Tax provisions by Senior Advocate S. E. Dastur, and on Indirect and Service Tax provisions by *Fellowship over a cup of tea at 5.45 p.m. Advocate Vikram Nankani. The details of both these meetings are given separately in this Newsletter. The booking response received for the Budget booklet that analyses important amendments proposed in the Finance Bill 2012, in English and in Gujarati, has been good. Those who Lecture Meeting have not yet ordered for it may do so at the earliest. Venue I Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai – 400020 As an ongoing attempt to enable our members, to keep pace with I Tuesday, 17th April, 2012, 6.15 p.m.* the latest developments in important areas, the Society has planned Day, Date & Time I CA. Hitesh Gajaria programmes that will help you upgrade your professional skills, as well Speaker I Important Tax Issues encountered in doing as those that will enrich and enhance the quality of human life, like the Subject business in HR Committee’s Leadership Camp (for members), and the Personality Development Workshop (for students). A unique two-day residential (The above lecture meeting is conducted jointly with Indo-American Chamber of Commerce) summit for growth of professional firms dealing with Information *Fellowship over a cup of tea at 5.45 p.m. Technology and Professional Networking has also been planned by (continued on page 2) PROGRAMMES AT A GLANCE Students’ Study Circle...... 06-04-2012...... BCAS Conference Room, 7, Jolly Bhavan No. 2, New Marine Lines, Mumbai...... 4 Full-Day Workshop on Practical Issues in Tax Deduction at Source...... 13-04-2012...... Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai...... 3 Two-Day Workshop on Recent Developments in Accounting & Auditing Standards and Reporting Requirements...... 13 and 14-04-2012...... Hotel Novotel, Balaraj SahaniMarg, Juhu, Mumbai...... 4 10th Annual Residential Camp...... 20 to 22-04-2012...... Moksh, Kadadhe Village, Maval Taluka, ...... 3 The i-Power Summit...... 27 and 28-04-2012...... Rambhau Mhalgi Prabodhini’s Knowledge Excellence Center, off Mumbai...... 6 Half-Day Seminar on Labour Laws...... 28-04-2012...... Gulmohar Hall, BCAS, Jolly Bhavan no. 2, Ground Floor, New Marine Lines, Mumbai.. 2 E-Learning Program on XBRL...... Ongoing Program...... Online Program...... 5 Budget Meetings...... 20, 22 and 26-03-2012...... 1 Lecture Meeting...... 17-04-2012...... 1 7, Jolly Bhavan No. 2, New Marine Lines, Mumbai - 400020. Tel. Nos. : 61377600; Fax: 61377666 Email : [email protected]; Website : www.bcasonline.org President: Pradip Thanawala , 98200 45632; Vice-President: Deepak Shah , Hon. Jt. Secretaries: Nitin Shingala , 98200 57694; Hon. Treasurer: Raman Jokhakar, 98208 77976, [email protected] 98201 48536; [email protected] [email protected] [email protected] Chetan Shah , 98202 23402; [email protected]

BCAS Newsletter I March 2012 1 (continued from page 1) Infotech & 4i Committee—this will take place in the last week of April Right to Information Clinic and has already generated a good response. BCAS Foundation operates a Right to Information (RTI) Clinic on As the Financial Year comes to an end, it’s time to take a closer look at a regular basis. RTI Clinic is operated by Mrs. Hema Sampat, a research scholar on the subject of RTI, Mr. A. K. Asher, the year gone by, make resolutions, and plan for the ensuing year well Adv. & RTI activist and CA. Narayan Varma, Past President, in advance. I hope the new Financial Year will be a rewarding one with BCAS. more joy and less of stress in discharging your professional duties. The Clinic provides help and guidance to BCAS members as also We at BCAS will strive to excel in all activities, and it would be an to non-members, i.e., all citizens, for making applications under endeavour to see that you get more out of your membership in the the RTI Act and also assists in resolving any related difficulties on coming Financial Year. the subject of RTI. The RTI Clinic operates on every 2nd, 3rd and 4th Saturday from I always believe that ‘Punctuality gets you ahead… But to get ahead, BCAS office – 11 a.m. to 1 p.m. always be on time’. The next RTI Clinic days accordingly are 24th March 2012 So friends, to start with, renew your membership with BCAS on time. and 7th April, 21st April and 28th April 2012 Please call the Society’s office (Ms. Shernaaz: 61377600) to obtain a prior With warm regards, appointment. Yours truly,

Charitable Trust Clinic CA. Deepak R. Shah The next Charitable Trust Clinic will be held on 6th April 2012 from 5 p.m. to 7 p.m. in the library room of BCA Society at New Marine Lines.

Chartered Accountants and Trustees interested in having Indirect Taxes And Allied Laws Committee their queries solved are requested to call the Society’s office Chairman : ca. Govind Goyal (Ms. Khushboo: 61377620) and obtain a prior appointment, latest Convenors : CA. Sunil Gabhawalla by noon on the day of the Clinic. Querists are also advised to bring CA. Suhas Paranjpe along relevant papers like trust deeds, audited accounts, etc. CA. Toral Mehta Panel of Advisors: Jointly with Chamber of Tax Consultants CA. Ratanshaw Damanwala CA. Shariq Contractor Half-day seminar on Labour Laws CA. Gautam Nayak With the globalisation of the industries and talk of reforms in Labour CA. Anil Sathe CA. Atul Shah Laws to synchronise ourselves with the fast evolving global scenarios, it has become important to have an in-depth study of the technicalities of the same.

Day and Date Saturday, 28th April, 2012 Accounts & Audit Clinic Time 9.30 a.m. to 1.30 p.m. The next Accounts & Audit Clinic will be held on 7th April 2012 Venue Gulmohar Hall, BCAS, Jolly Bhavan no. 2, from 10.30 a.m. to 11.30 a.m. in the library room of BCA Society Ground Floor, New Marine Lines, Mumbai at New Marine Lines. 400020 Fees R325/- for Members (Life & Ordinary Members) Persons interested in having their queries pertaining to accounting R425/- for Non Members and auditing issues solved, are requested to send the queries Fees includes tea/coffee, snacks & material by e-mail to [email protected] one week in advance and Speaker Mr. Ramesh Soni, Labour Law Consultant call the Society’s office (Mr. Rajaram: 61377613) to obtain prior appointment, at least a day before the day of the Clinic. Please Topics Employees State Insurance Act, 1948 note that the Panel will not answer any queries pertaining to tax issues. The Payment of Bonus Act, 1965 The Employees Provident Fund & Miscellaneous Panel of Advisors: Provisions, 1952 CA. Sanjeev Pandit CA. Himanshu Kishnadwala The Payment of Gratuity Act, 1972 CA. Jayesh Gandhi Labour Welfare Fund, 1953

Enrolment form is printed on page 12.

2 BCAS Newsletter I March 2012 Taxation Committee Human Resources Committee Chairman : CA. Gautam Nayak Chairman : CA. Mayur Nayak Convenors : CA. Saurabh Shah Convenors : CA. Bharatkumar Oza CA. Anil Doshi CA. Aliasgar Kherodawala CA. Kirit Kamdar CA. Ashish Fafadia Full-Day Workshop on 10th Annual Residential Camp Human Resources Committee announces the most eagerly awaited Practical Issues in Tax Deduction at 10th Annual Residential Camp (Retreat) on the theme of “Everyday Source Happiness” (Practical learning for Joy and Well-being) Taxation Committee is pleased to announce a full-day workshop on Everyday Happiness is an invitation to explore how we can bring more Practical Issues in Tax Deduction at Source. The subject has gained presence and purpose into our daily lives. It is a joyful, interactive importance due to the fact that any default in non-compliance, the and highly experiential session designed to deeply re-connect us to assessee faces disallowance u/s. 40(a)(i) and (ia) of the Income Tax ourselves, each other, and our highest purpose as individuals and as Act, 1961. Also, recently with the spate of demand notices for delayed part of our community. payments, non-credit of challans paid, wrong PAN, etc., this workshop will help the participants in reducing such demands and notices from the This course will help the participants to improve their ability to bring more Income Tax Department. A special session is also planned by inviting joy and presence to their daily lives and to relate more meaningfully a senior official from the Income Tax Department as well as from NSDL and compassionately to others. Several practical processes will be who will be dealing with the various issues faced by the assessee with shared that can immediately be applied to enhance joy, meaning and regard to Tax credits and TDS assessments. contribution at work.

The details of the workshop is as follows: The aim is inner healing, deeper relationships and more joy in our professional lives.

Day, Date Friday, 13th April, 2012, 9.00 am to 6.00 pm Program objectives and learning outcomes: and Time In this retreat, participants will Learn Principles of Happiness and Well- Venue Walchand Hirachand Hall, 4th Floor, IMC, being: Churchgate, Mumbai 400020. • Discover the “Myth of Stress” and learn excellent methods to release Fees R1,200/- for members and R1,800/- for non-members inner turmoil (for enrollment up to 31st March 2012). Thereafter • Learn to tap the four highest levels of emotional well being R1,300/- for members and R1,900/- for non-members. • Learn practical methods to live in the present • Deep listening skills (The above fees includes contribution of R50 to BCAS foundation, cost of • Appreciate the importance and depth of listening as a skill in study material, if any, tea, lunch and snacks) personal and professional life • Practice speaking authentically and listening effectively Speakers Topics • Commit themselves to lifelong learning and application of this skill • Enhance dialoguing skills Mr. A. C. Overview of TDS (including TDS assessments and • Discover powerful ways of relating beyond debate and discussion Shukla, credits) • Learn how to access the wisdom of the group CIT(TDS), • Become aware of the role assumptions expectations played in Mumbai decision making and conflicts CA Nikhil Section 192 – Salary including salary paid to expats Bhatia Mr. Nithya Shanti shall guide the participants in the learning who is an internationally respected Spiritual Teacher, Seminar Leader, Writer and CA Yogesh Section 194A - Interest other than “Interest on Educator, committed to sharing practical wisdom teachings for happiness Thar, securities” and enlightenment with people in a joyful and transformational way. Section 194C - Payments to contractors and sub-contractors The camp (retreat) is scheduled on: Section 194J - Fees for professional or technical services Days and Dates : Friday 20th April 2012 to Sunday, 22nd April 2012 Section 194H - Commission or brokerage Venue : At Moksh, Village - Kadadhe, Taluka - Maval, Dist. Section 194I - Rent Pune, Maharashtra Fees CA Hitesh Section 195 - Other Sums (Payment to Gajaria, non-Residents) Members (Single) 6,500 Ms. Babina Tax Credits - Issues and Resolution Member (With Spouse) 12,500 Dinashan Manager Fees include study material, food, stay in non-AC rooms, transportation (TIN Opera- and R50 contribution to BCAS Foundation. Members are encouraged tions) - NSDL to participate in this camp with spouse.

Enrolment form is printed on page 12. Maximum 36 Members will be registered. Enrolment form is printed on page 12.

BCAS Newsletter I March 2012 3 Fees: Accounting & Auditing Committee Amount In Rupees Chairman : CA. Himanshu Kishnadwala Before 31st March 2012 After 31st March 2012 Convenors : CA. Mukesh Trivedi CA. Abhay Mehta Members 4,250 5,250 CA. Suril Shah Non Members 4,750 5,750 (Fees Include Study material, Lunch for both the days and R50 Two-Day Workshop on Recent contribution to BCAS Foundation)

Developments in Accounting & Auditing Enrolment form is printed on page 12. Standards and Reporting Requirements There are several recent developments in accounting and auditing Human Resources Committee standards and reporting requirements. Besides Revised Schedule VI Chairman : CA. Mayur Nayak which was notified in March 2011 which changes the entire format of Convenors : CA. Bharatkumar Oza financial statements, the Ministry of Company Affairs issued notifications CA. Aliasgar Kherodawala in December 2011 amending AS 11 “Accounting for effects of changes CA. Ashish Fafadia in foreign exchange rates”. The ICAI also recently issued important Guidance Notes on Revised Schedule VI, Accounting for Real Estate Transactions, Self-generated CERs and Rate Regulated Activities. Students’ Study Circle Several Standards on Auditing (SAs) are also applicable to audit reports Dear Students, on financial statements for 2011-12. We are pleased to inform you that “BCAS Students’ Study Circle” is back To enable the companies preparing financial statements for the year again! 2011-12 and auditors to discharge their attest functions in a more effective manner, the Accounting and Auditing Committee has organised This time we bring the Students' Study Circle in a new avataar, i.e., “For a 2-day workshop covering all the above areas and other recent changes the students, of the students and by the students”. Topics relevant to applicable for financial statements for the year 2011-12. students will be discussed at this Study Circle. R Who will benefit? Enrolment fee for the Study Circle is 200 covering a period from February 2012 to 31st March 2013. All Chartered Accountants, in practice, industry, directors and all professionals who are responsible for preparation, review and audit of The details of the next meeting is as follows: financial statements for 2011-12.

The details of the programme are given below: Day and Date Friday, 6th April, 2012 Time 6.30 p.m. to 8.00 p.m. Day and Date Friday & Saturday 13th& 14th April 2012 Venue BCAS Conference Room, 7, Jolly Bhavan No. 2, Time 9.30 am to 5.30 on both days New Marine Lines, Mumbai – 400020 Subject Venue Hotel Novotel, Balaraj Sahani Marg, Juhu, Revised Schedule VI under Companies Mumbai 400049 Act,1956 Group Leaders Pooja Shah & Ikshu Shah Speakers Topics for discussion Looking forward to seeing you in large numbers. CA. Mukund Inaugural Address on Overview Recent Chitale, Developments in Accounting & Auditing and Enrolment form is printed on page 12. Chairman, NACAS role of professionals CA. Sudhir Soni Issues related to Revised Schedule VI CA. Khusrhoo Standards on Auditing on Audit conclusions Panthaky and Reporting (SA 700, SA 705, SA 706, SA BCAS Suburban Study Circle 710, SA 800, SA 805, SA 810) Jointly with CA. Ashutosh Issues in AS 11 ‘Accounting for effects of Company Law, Accounting and Auditing Study Circle Pednekar changes in foreign exchange rates’ Day, Date & Time Saturday, 24th March, 2012, 4.00 p.m. to 6.00 p.m. CA. Jayesh Guidance Note (Revised) on Accounting for Gandhi Real Estate Transactions Topic Revised Schedule-VI and Case Studies thereon CA. Akeel Master Guidance Note on accounting for self-generat- Group Leader CA. Gaurav Sarda ed Certified Emission Reduction (CERs) Session Chairman CA. Abhay Mehta Eminent Speaker Guidance note on Accounting for Rate Venue Direct-I-Plex, Old Nagardas Road, Opp. Wilson Pens, Near Regulated Activities Andheri East Subway, Andheri (East) Mumbai – 400069

* In case any participants have any issues to be discussed/covered by Convenors CA. Giriraj Soni, CA. Kinjal Shah, CA. Kunjan Gandhi and any faculty, the same can be sent to BCAS at the time of enrolment or before CA. Suril Shah 10th April 2012 to [email protected]. BCAS will pass on the same to the respective faculty and request them to cover the same in their presentation

4 BCAS Newsletter I March 2012 XBRL Course Module Content Infotech & 4i Committee Module — I Chairman : CA. Ameet Patel Overview of XBRL Convenors : CA. Nandita Parekh • Meaning of XBRL • Advantage of use of XBRL CA. Nikunj Shah • Key concepts of XBRL • Key drivers of XBRL CA. Kinjal Shah E-Learning Modules on XBRL • Components of Business • XBRL adoption around the Reporting Supply Chain world • Technical Terms associated with • XBRL & IFRSs E-Learning program on XBRL XBRL • Applications of XBRL XBRL stands for eXtensible Business Reporting Language. It is one Module — II of the families of "XML" languages which is becoming a standard Taxonomy & Instance documents means of communicating information between businesses and on the Internet. Implementations of XBRL are growing rapidly around • Meaning of XBRL Taxonomy the world. • XBRL Taxonomy Architecture • Linkbases, Tuples, Dimensions, Hypercubes, Axis, Members, etc. In order to foster the understanding of XBRL, the Infotech & 4i • XBRL Taxonomy Extension • XBRL Instance Document Committee of BCAS, XBRL Planet (owned by Mr. Conor O’ Kelly, • Instance Document Building Blocks (facts, contexts, units & Vice-Chairman, XBRL International) & NextGen Knowledge footnotes) Solutions Private Ltd. have teamed up to provide online XBRL • Best Practices training. Our main goal is to transfer knowledge and unique experience of Financial Reporting through XBRL. Module – III Indian GAAP Taxonomy & Business Rules First of its kind e-Learning program on XBRL Over 9 Hours of online training including Q&A session on XBRL • Overview of Indian GAAP • Business Rules Taxonomy • Analysis of Business Rule Course Module : • Analysis of Indian GAAP Taxonomy Course objectives : • To help trainees understand the meaning and nature of XBRL XBRL Implementation Approaches & Indian Regulatory Requirements and the technical terms commonly associated with XBRL. • XBRL Implementation • Indian Regulatory • To help trainees understand the basics of XBRL Taxonomies. Approaches Requirements • To help trainees understand how to use XBRL Tools. • To help trainees understand how to create instance Module — IV documents. XBRL Tool Pre-requisites : • Defining Unit, Context, • Detailed Tagging • Familiarity with accounting system installation and report writing Currency, Decimal • Block Tagging recommended XBRL Report Creation • Participants in this e-Learning Module need not have prior experience of XBRL. • Steps involved in XBRL Report • Validating XBRL Report at MCA Creation Validation Tool Fees : • Editing XBRL Instances • Viewing XBRL Report • The total investment to be made by you for this unique online Training Course shall be R10,000 (Rupees Ten Thousand Module — V Only). XBRL Report Creation • Tagging of Financial Statements • Tagging of Notes to Accounts, e-Learning Materials & Certification : Viz: Balance Sheet, P & L Auditor's Report, Director's • The participants will have access to the training sessions for 30 Account, Cash Flow Statement Report days during which, they will get unlimited access. They will also & Schedules get access to special live Q&A sessions. • At the end of the training, a certificate of participation would be Module — VI issued to the participants who go through the entire module. XBRL Assurance • Global Trends • Indian Regulatory • Current Approaches to XBRL Requirements Assurance • Assurance on XBRL Instance • XBRL Assurance Framework Documents for MCA filings

BCAS Newsletter I March 2012 5 This summit will also create a unique opportunity for firms seeking Infotech & 4i Committee network partners by bringing together practice leaders from select cities Chairman : CA. Ameet Patel and creating an appropriate platform for networking and understanding Convenors : CA. Nandita Parekh each others’ capabilities, strengths and requirements. CA. Kinjal Shah CA. Nikunj Shah The seats are limited…and the Summit is not just empowering, but also i-powering….so, pre-register by sending an e-mail to [email protected] and follow up with your enrolment. The i-Power Summit A 2-day Summit on Practice Management, Capacity When April 27th & 28th, 2012 Building & Networking Where Rambhau Mhalgi Prabhodhini’s Knowledge Excellence Center off Mumbai The Infotech and 4i Committee is pleased to announce a sequel to its unique initiative of 2011 – a 2 day summit where leaders from various Keshav Shrushti, Uttan Village, Essel world professional services firms will get together to share their experiences Road, Bhayander (West), Thane – 401106 on practice management, growth strategies and on their networking initiatives. For Whom For partners and leaders of professional services firms Objective of the Summit: • To explore the concept of networking for consolidation, growth and Investment Double Sharing Triple Sharing capacity building. • To learn from experiences of professional leaders about drafting of BCAS Members Enrolment closed R7,000/- partnership deeds, profit sharing mechanism and the ecstasies and (Life & Ordinary agonies of post-merger years. Members only) • To understand the role of technology in prompting growth and convergence across networks and branches. Members of invitee Enrolment closed R8,000/- • To create a platform for firms to understand each other’s capabilities associations with a view to enabling professional associations and networks • …..in essence, empowering and i-powering the leaders of For others…. Sorry, this one is only for members!! professional services firms to lead their firms in the coming decade, with confidence and conviction. Fees include R50/- towards contribution to BCAS Foundation The Summit will cover: Topics & Contents: Speaker The investment covers accommodation on twin/triple sharing basis and is exclusive of transport for which participants may make their own Keynote address CA T. N Manoharan* arrangements, For outstation delegates, BCAS will offer assistance in “CA Profession – Consolidation through making arrangements. Expansion, Networking and Alliances”

Merger Mechanics and Profit Sharing CA Pradeep S Shah The enrolment would be restricted on a first come first served basis for Structures for the growing firm 75 people only. “The art of crafting a lasting deed” National and International Networks – a cost CA Nilesh Vikamsey center or a huge opportunity? Enrolment Form “Honey, I shrunk the world!” The Post-merger Saga CA Shariq Name: …………………………………………………...... “Yours, mine and ours – adventures in Contractor BCAS Membership No.: (if applicable)……………………...... merger-land and the new signboard on the Organisation’s Name: ..………………………………………………………. street that says ‘LLP’.” Position in Organisation: ...... The Expectations of the Industry CA Sunil Kothare “If we are growing, you must grow…the time Office Address: ...... for consolidation and expansion is NOW” ...... Cloud Computing Mr. Keith Prabhu Age: …….... Tel (O): …...... …………….. Tel (R): ………...... …….. “The paradigm has shifted – cloud is the Mobile: …………………...... …. Email: ……………………...... place to be in today and not merely when you are happy” Room Partner: 1.………….....…………2. ………....……………3. ……...... ………….. Technology, my partner in growth CA Huzeifa Unwala “i-meet, i-train, i-converge, and yet, i-don’t Food Choice: Veg: [ ] Jain Veg [ ] travel” The decision of the committee will be final in case of allotment of room Social Media/Mobile Technology Mr. Hareesh & room partners. “The news paper is history, the e-mail is Tibrewala passé… so, what is in’ ?”

* Subject to confirmation

6 BCAS Newsletter I March 2012 BCAS St u d y Ci r c l e s f o r 2012-13 BCAS announces annual formation of Study Circles for the year 2012-13. The BCAS study circles are well known for the very high quality of deliberations that take place in the presence of and under the guidance of seniors and also for the meticulous planning and organisational capabilities of their convenors.

Your active participation in BCAS Study Circles provides you with the following benefits and add substantial value to your capabilities and personality: • Tremendous opportunities for enhancing and sharing knowledge • Honing your soft skills • Keeping in touch with contemporary developments in law and in practice • Fellowship amongst your professional colleagues • Catalyst for your active involvement in various other activities of BCAS

You are invited to partake in the feast of knowledge in the year ahead, join the study circle(s) of your choice and attend and participate in the meetings regularly to derive maximum benefit.

For further information/queries about the study circles, please feel free to contact us at [email protected]. Annual fee details are provided below. The fees are inclusive of R30 as contribution to BCAS Foundation.

Kindly note: (a) Generally, all study circle meetings are held at the Conference Rooms in the BCAS office. In exceptional cases, we hold the meetings at other venues. The Suburban Study Circles will be conducted at Directi Internet Solutions Pvt. Ltd., Directiplex, Old Nagardas Road, Opp. Wilson Pens, Near Andheri East Subway, Andheri (East), Mumbai – 400069. (b) Any member of the BCAS is welcome to join various study circles. There is no restriction on the number of circles that you can join. (c) It would be our endeavour to hold at least 6 meetings per study circle in the year. However, this would be subject to the availability of group leaders and chairmen, and your active participation. (d) The term of each study circle is from 1-4-2012 to 31-3-2013. ……………………………………………………………………………………………………………………………………………………………………… Enrolment Form

Please select the study circle that you would like to join from the list given below and send in your cheque to us with the enrolment form:

Study Circle No. Subject Fee R Tick your choice here

I Direct Tax Laws 400 II Indirect Tax Laws 400 III Company Law, Auditing & Accounting 400 IV FEMA 400 V Information Technology 400 VI Human Resource Development 400

VII IFRS 1,000 VIII BCAS Suburban Study Circle 600 IX International Economics Study Group 1,000 X Students Study Circle* 200 (February 2012 to March 2013) * Only for students of ICAI

BCAS Membership No/ ICAI Student Membership No.: ……………………………………...... Name: …………………………………………………...... ………………………… Address: ………………………………………………………...... ……………………. ……………………………………………………...... ………...... ………………… Tel. (O): ……………………...... ……… Tel. (R): ………...... ……………………… Fax: ………...... ……………….. Mobile: ………………………...... …………………… E-mail: ……………………...... ………………………… Cash/Draft/Cheque No.: ……………...…………….. drawn on ………...... ……………………………...... …...bank, Dated ………………...……….for an amount of ` …………………………………………..is enclosed.

Date: …………………………

Signature

BCAS Newsletter I March 2012 7 8 BCAS Newsletter I March 2012 Bombay Chartered Accountants' Society

InfoTech & 4i Committee & Membership & Public Relations Committee present BCAS Web TV

Lecture Meeting on Shareholders’/Joint Venture Agreements including validity of Pre-Emptive Rights/Exit Rights by Mr. Nitin Potdar, Advocate held by BCAS on 22nd February 2012 is available on BCAS Web TV. Some of the other videos on the BCAS Web TV are: • Lecture Meeting on Taxation of Charitable Trusts – Recent Issues by CA. Gautam Nayak • Lecture meeting on Recent Developments in AS/IFRS/Ind AS – Global and India by CA P. R. Ramesh • Lecture meeting on Ethical Hacking by Shantanu Gawde, India’s Youngest Ethical Hacker • Lecture Meeting on Practical Issues – Transfer Pricing Documentation and Certification by Rakesh Alshi, Director, Transfer Pricing, Deloitte Haskins & Sells • Lecture Meeting on E-filing of Returns for Assessment Year 2011-12 – Practical Issues by CA. Ameet Patel • Half–day Workshop on “How to Conduct Tax Audit” by CA. Himanshu Kishnadwala and CA. Anil Sathe • Lecture Meeting on Taxation of Shares and Securities – Current Developments by CA. Pradip Kapasi • Lecture Meeting on Taxation of Cross Border Transactions – Recent Trend in India by CA. Pinakin Desai • Lecture Meeting on Overview of XBRL by CA. Atul Bheda • Lecture Meeting on Filing of Income-tax Returns for A. Y. 2011- 12 by CA. Mukesh Trivedi and CA. Vipul Gandhi • Lecture Meeting on Recent Amendments in Schedule VI of the Companies Act, 1956 by C.A. P. R. Ramesh • Lecture Meeting on Direct Tax Provisions of the Finance Bill, 2011 by Senior Advocate Mr. S. E. Dastur • Lecture Meeting on Electronic Tax Payments and Quarterly TDS Returns – Recent updates and issues by Delnaz Mistry • Lecture Meeting on Issues in Bank Audit by Akeel Master • Lecture Meeting on Recent Developments in TDS by Mahendra Sanghvi • Lecture Meeting on FDI Policy plus Industry-Specific Issues (Real Estate, NBFC and Training Sectors) by Anup Shah * Free Video • Lecture Meeting on Nurturing Relationships by Brahma Kumari Shivani • Talk on How to Prepare for and Write CA Exams by Mr. T.N. Manoharan Subscribe Now!!! Subscription Charges: R600 per annum applicable for April 2012 to March 2013. 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 Office. 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 BCAS Newsletter I March 2012 9 A. P. (DIR Series) Circular No. 76 dated February 09, 2012 From RBI Clarification – Establishment of Project Offices in India by Foreign Contributed by : CA. Gaurang Gandhi Entities – General Permission

Presently, general permission has been granted to a foreign entity for setting up a Project office in India, subject to certain conditions.

The Reserve Bank of India has issued the following 12 circulars This circular clarifies that despite the general permission, citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran or China, cannot A. P. (DIR Series) Circular No. 75 dated February 07, 2012 establish in India, a branch office or a liaison office or a project office or External Commercial Borrowings – Simplification of procedure any other place of business by whatever name called, without the prior permission of RBI. Presently, approval of RBI is required for: - a. Reduction in amount of ECB. A. P. (DIR Series) Circular No. 77 dated February 15, 2012 b. Changes in the draw down schedule where the original average Anti-Money Laundering (AML) standards/Combating the Financing of maturity period is not maintained. Terrorism (CFT) Standards - Money changing activities c. Reduction in the all-in-cost of the ECB after obtaining LRN. This circular advises Authorized Persons and their agents and franchisees This circular has granted powers to banks to approve changes in respect to consider the information contained in the Statement issued by the of the above i.e. reduction in all-in-cost, subject to certain conditions Financial Action Task Force on October 28, 2011. However, legitimate and changes in the draw down schedule when original maturity period transactions can be undertaken with the countries and jurisdictions is not maintained. mentioned in the Statement.

a) Reduction in amount of ECB A. P. (DIR Series) Circular No. 78 dated February 15, 2012 Banks can approve reduction in loan amount in respect of ECB availed Anti-Money Laundering (AML) standards/Combating the Financing of under the automatic route, provided:- Terrorism (CFT) Standards - Cross Border Inward Remittance under (i) Consent of the lender for reduction in loan amount has been Money Transfer Service Scheme obtained; (ii) Average maturity period of the ECB is maintained; This circular advises Authorized Persons who are Indian Agents (iii) Monthly ECB-2 returns in respect of the LRN have been submitted under Money Transfer Service Scheme (MTSS) and their sub-agents to the Department of Statistics and Information Management to consider the information contained in the Statement issued by the (DSIM); and Financial Action Task Force on October 28, 2011. However, legitimate (iv) There is no change in the other terms and conditions of the ECB. transactions can be undertaken with the countries and jurisdictions mentioned in the Statement. b) Changes/modifications in the draw down schedule when original average maturity period is not maintained A. P. (DIR Series) Circular No. 79 dated February 15, 2012 Banks can approve requests for changes / modifications in the draw Clarification – Purchase of Immovable Property in India – Reporting down schedule resulting in the original average maturity period requirement undergoing change in respect of ECB availed both under the automatic and approval routes. However, any elongation / rollover in the repayment, Anon-resident who has set-up a branch, office or other place of on expiry of the original maturity, of the ECB, will continue to require the business In India (other than a liaison office), and who has acquired prior approval of RBI. any immovable property in India has to file a declaration in form IPI with RBI within90 days from the date of such acquisition. However, no The approval can be granted provided:- such declaration has to be filed by a NRI or PIO when he acquires any (i) There are no changes / modifications in the repayment schedule of immovable property in India. the ECB; (ii) Average maturity period of the ECB is reduced as against the Form IPI has been modified to reflect this position and the amended original average maturity period stated in the Form 83 at the time of Form IPI is annexed to this circular. obtaining the LRN; (iii) Reduced average maturity period complies with the stipulated A. P. (DIR Series) Circular No. 80 dated February 15, 2012 minimum average maturity period as per the extant ECB Export of Goods and Services – Simplification and Revision of Softex guidelines; Procedure (iv) Change in all-in-cost is only due to the change in the average maturity period and the ECB complies with the extant guidelines; This circular has revised the procedure for submission of SOFTEX Forms and for software exporters having annual turnover of R1,000 crore or who (v) Monthly ECB-2 returns in respect of the LRN have been submitted to file at least 600 SOFTEX forms annually. The new form and revised DSIM. procedure for submitting the same are annexed to this circular.

c) Reduction in the all-in-cost of ECB As per the revised procedure, the eligible software exporter has to: - Banks can approve requests for reduction in all-in-cost, in respect 1. File a statement in excel format giving all particulars along with of ECB availed both under the automatic and approval routes, quadruplicate set of SOFTEX form to the nearest STPI. provided:- 2. STPI will then verify the details and decide on a percentage sample (i) Consent of the lender has been obtained and there are no other check of the documents in details. changes in the terms and conditions of the ECB; and 3. Software companies will have to submit all the documents on (ii) Monthly ECB-2 returns in respect of the LRN have been submitted to demand to STPI within 30 days of their advice or any reasonable/ DSIM. extended time.

10 BCAS Newsletter I March 2012 4. STPI will certify the statement and SOFTEX forms in bulk on the “Top Presently, the maximum tenor of gold loan, as per the Foreign Trade Sheet” regarding the values etc. Policy 2004 – 2009 of the Government of India, is 240 days – 60 days for 5. STPI will forward the first copy of the revised SOFTEX format manufacture and exports +180 days for fixing the price and repayment to the concerned Regional Office of RBI, the duplicate copy of gold loan. along with bulk statement in excel format to Authorized Dealers for negotiation / collection / settlement, the third copy to the The Foreign Trade Policy 2009 – 2014 of the Government of India has exporter and the last copy will be retained by STPI for its own increased the period of completion for export from 60 days to 90 days. record. As a result, the maximum tenor of gold loan is increased from 240 days 6. Exporters, using the revised procedure, will have to provide to 270 days – 90 days for manufacture and exports +180 days for fixing information about all the invoices including the ones lesser than the price and repayment of gold loan. US$25,000, in the bulk statement in excel format. Further, this circular requires banks to see that the: - A. P. (DIR Series) Circular No. 81 dated February 21, 2012 (i) Maximum period of gold loan must be as per the Foreign Trade Export of Goods and Services – Receipt of advance payment for Policy 2009-14 or as notified by the Government of India from time export of goods Involving shipment (manufacture and ship) beyond to time. one year (ii) Tenor of Stand-By Letter of Credit, for import of gold on loan basis, where ever required, must also be in line with the tenor of gold loan. Presently, an exporter is required to obtain prior approval of RBI for receiving advance from the foreign buyer where the export agreement A. P. (DIR Series) Circular No. 84 dated February 29, 2012 permits shipment of goods beyond one year from the date of receipt of Compilation of R-Returns under FETERS advance. This circular contains the following: - This circular has granted powers to Banks to permit exporters to receive (i) Details of the changes that have been effected in reporting of advance from the foreign buyer where the export agreement permits R-Returns in respect of transactions taking place from April 1, shipment of goods beyond one year from the date of receipt of advance, 2012. subject to the following conditions: - (ii) Revised Guidelines for submission of data under FETERS. i) KYC and due diligence exercise has been done by the bank for the overseas buyer. A. P. (DIR Series) Circular No. 85 dated February 29, 2012 ii) Compliance with the Anti-Money Laundering standards has been External Commercial Borrowings (ECB) for Infrastructure facilities ensured. within National Manufacturing investment Zone (NMIZ) iii) Export advance received by the exporter must be utilized to execute export and not for any other purpose i.e., the transaction is a bona- For the purposes of ECB, infrastructure sector includes: -(i) power, (ii) fide transaction. telecommunication, (iii) railways, (iv) road including bridges, (v) sea port iv) Progress payment, if any, must be directly received from the overseas and airport, (vi) industrial parks, (vii) urban infrastructure (water supply, buyer strictly in terms of the contract. sanitation and sewage projects), (viii) mining, refining and exploration v) Rate of interest, if any, payable on the advance payment must not and (ix) cold storage or cold room facility, including for farm level pre- exceed LIBOR + 100 basis points. cooling, for preservation or storage of agricultural and allied produce, vi) Exporter should not have refund an amount exceeding 10% of the marine products and meat. advance payment received in the last three years. vii) Documents covering the shipment must be routed through the same Presently, developers of SEZ are allowed to avail ECB to provide such bank. infrastructure facilities within the SEZ. viii) If the exporter is unable to make the shipment, partly or fully, he will have to obtain prior approval of RBI before remittance towards This circular permits developers of NMIZ also to avail of ECB under refund of unutilized portion of advance or towards interest payment the Approval Route for providing infrastructure facilities within the is made to the foreign buyer. NMIZ. A. P. (DIR Series) Circular No. 82 dated February 21, 2012 A. P. (DIR Series) Circular No. 86 dated February 29, 2012 Release of Foreign Exchange for Imports – Further Liberalization Know Your Customer (KYC) norms/Anti-Money Laundering (AML)standards / Combating the Financing of Terrorism (CFT) Presently, advance towards imports up to US $ 500 or its equivalent can Obligation of Authorised Persons under Prevention of Money be issued for any current account transaction without any documentation Laundering Act, (PMLA), 2002,as amended by Prevention of formalities. Money Laundering (Amendment) Act, 2009 –Money changing activities This circular has increased that limit from US $ 500 or its equivalent to US $ 5,000 or its equivalent. Hence, advance towards imports This circular requires, Authorized Persons to take additional steps can be made up to US $ 5,000 or its equivalent for any current to identify and assess their ML/TF risk for customers, countries and account transaction without submitting any documents except for geographical areas as also for products/ services/ transactions/delivery a simple letter containing basic information such as the name and channels. address of the applicant, name and address of the beneficiary, amount to be remitted and the purpose of remittance and the application is Authorized Persons must have policies, controls and procedures, duly accompanied by a cheque drawn on the applicant’s bank or demand approved by their boards, in place to effectively manage and mitigate draft. their risk adopting a risk-based approach as discussed above. They A. P. (DIR Series) Circular No. 83 dated February 27, 2012 must also design risk parameters according to their activities for risk Import of Gold on Loan Basis – Tenor of Loan and Opening of based transaction monitoring, which will help them in their own risk Stand-By Letter of Credit assessment.

BCAS Newsletter I March 2012 11 Regd. No. MH/MR/South-88/2012-14 Registered with the Registrar of Newspapers for India under R.N. 68365/98 Posted at Mumbai Patrika Channel Sorting Office, Mumbai-1 Published on 8th of every month

Our Contributors Budget Publication (In English and Gujarati) The Trustees of BCAS Foundation acknowledge the following It’s time for the Finance Minister to present the Annual Budget for contributors who have contributed Rs. 5000 or more to the BCAS the year 2012-13 and for the BCAS to bring out its Annual Budget Publication – ‘The Finance Bill, 2012 – An Analysis’. Foundation during the period of December 2011 to February 2012. We are thankful for the support. The publication will highlight the intricacies of the Budget proposals 1. Mr. S.C. Aythora R50,000/- (Corpus Donation) in simple language for the benefit of the members and citizens at 2. Mr. P.N. Shah R25,000/- (Corpus Donation) large. The Budget Publication will be published in 2 languages viz. English and Gujarati. 3. Mr. Paritosh Chandra Basu R10,000/- (Corpus Donation) 4. Mr. C.C. Anandpara R5,000/- (RTI Activity Fund) The publication will be available for delivery and sale at the BCAS office from21st March 2012. The price for one set of 5 booklets of the Budget Publication is R25/-.

Order Form: Language of Quantity Total amount Postage Cost: R25 Total Kind Attention Members/Subscribers Publication of Sets payable @ R25 for Mumbai and amount for a set of 5 suburbs, R35 for payable Your annual membership/subscription will expire on 31st booklets all over India, for each set March 2012. English Gujarati You are requested to renew your subscription now. The hard Total Amount and soft copies of the renewal notice have already been sent to you. Please send your renewal fees to: Bombay Chartered Name: Mr./Mrs./Ms...... BCAS Membership No.: ...... Accountants’ Society Office. Firm’s Name: ...... Office Address: ...... Now you can renew your membership online through the ...... Payment Gateway. Tel. Nos. (Office): …………...... …Mobile: ...... E-mail: ……………...... ……………….….... Cash/Draft/Cheque No.: …………………Drawn on: ...... Kindly log on to www.bcasonline.org for more details on ………………...... …… Bank, Dated: ………....……...... ….....… renewal of membership. Amount r ……………………………..……………......

 CUT HERE  CUT HERE  CUT HERE Combined Enrolment Form WORKSHOP Full-Day Workshop on Practical Issues 13-04-2012...... r1.200 for members......  SEMINAR :  in Tax Deduction at Source...... r1,800 for non members......  Half Day Seminar on Labour Laws 28-04-2012...... r325 for members......  Two-Day Workshop on Recent 13-04-2012...... r4,250 for members......  ...... r425 for non members...... Developments in Accounting & Auditing...... 14-04-2012...... r4,750 for non members......  Standards and Reporting Requirements...... STUDY COURSE : Students’ Study Circle...... 06-04-2012...... r200......  E-Learning program on XBRL...... Ongoing program...... r10,000......  10th Annual Residential Camp...... 20-04-2012...... r6,500 for members......  to ...... 22-04-2012...... r12,500 for member (with spouse)... 

Name : ...... Address : ...... E-mail :...... Mobile : ...... Tel. : ...... Fax : ...... 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 fill in the above form and send the same to the Society’s office along with requisite payment. Please mention your name and membership number on the reverse side of the local cheque/at par cheque/Demand Draft. 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, once the enrolment form is submitted. 12 BCAS Newsletter I March 2012 Edited, printed & published by Narayan Varma on behalf of Bombay Chartered Accountants’ Society, Mumbai-400020. Printed at Spenta Multimedia, Mumbai-400013.