CORPORATE MEMBERS COMMITTEE Two days training workshop on The Making of a CFO jointly with Indian Merchants’ Chamber held on 11th & 12th October, 2013 at IMC. CA Yatin Desai, President welcoming the Guests & participants. Seen from L to R : CA Paras Savla, Vice President, CTC, CA Vipul Choksi, Chairman, Corporate Members Committee, CTC, Mr. D. D. Rathi, Director, Grasim Industries, Faculty, Ms. Deena Mehta, Chairperson, Capital Market Committee, IMC, Mr. Prabodh Thakkar, Vice President, IMC, Mr. Deepak Doshi, Chairman, SME Committee, IMC. Mr. D. D. Rathi, Director, Grasim Industries inaugurating the workshop by lighting the lamp. Seen from L to R : Mr. Deepak Doshi, Chairman, SME Committee, IMC, Ms. Deena Mehta, Chairperson, Capital Market Committee, IMC, Mr. Prabodh Thakkar, Vice President, IMC, CA Yatin Desai, President, CTC, CA Vipul Choksi, Chairman, Corporate Members Committee, CTC. CA Vipul Choksi, Chairman, Corporate Members Committee, CTC addressing the participants. Seen from L to R : CA Paras Savla, Vice President, CTC, Mr. D. D. Rathi, Director, Grasim Industries, Faculty, Ms. Deena Mehta, Chairperson, Capital Mr. D. D. Rathi, Director, Grasim Market Committee, IMC, Mr. Prabodh Thakkar, Vice President, Industries giving key note address. IMC, Mr. Deepak Doshi, Chairman, SME Committee, IMC. Seen from L to R : CA Paras Savla, Vice President, CTC, CA Vipul Choksi, Chairman, Corporate Members Committee, CTC, CA Yatin Desai, President, CTC, Ms. Deena Mehta, Chairperson, Capital Market Committee, IMC, Mr. Deepak Doshi, Chairman, SME Committee, IMC. Faculties Mr. Paresh Mr. Ajay Thakur, Mr. Anil Rustogi, Mr. B. R. Jaju, CA Amrish Shah, CA Rajeev Pai, Mehta, CFO, Head – SME Sr. President and CFO, Welspun Partner & CFO, Ashoka Buildcon Segment, Deputy CFO of Adhitya Corp. Ltd. National Leader, JSW Steel Ltd. Bombay Stock Birla Group Global Pulp Transaction Tax, Exchange & Fibre Business Ernst & Young Ltd. Mr. Yogesh Dr. V. R. Narasimhan, Mr. Pramod CA M. M. Chitale, Mr. Pradip Shroff, Mr. Sudhir Valia, Dhingra, CFO, Chief of Regulatory Menon, Director Past President, CEO Coach Director, Sun Blue Dart Affairs, National (Finance) JSW ICAI Member CFI Pharma Ltd. Stock Exchange of Energy Ltd. Coaching Network India Limited Vol. II No. 2 C NTENTS November – 2013 (GLWRULDO K. Gopal )URPWKH3UHVLGHQW Yatin Desai $Q,QWURGXFWLRQWRă9HGDQG9HGDQWDV. H. Patil SPECIAL STORY : Estate and Succession Planning (VWDWHDQG6XFFHVVLRQ3ODQQLQJă$Q2YHUYLHZDileep Choksi 2YHUYLHZRIWKH+LQGX6XFFHVVLRQ$FWDQG $SSOLFDELOLW\RIWKH,QGLDQ6XFFHVVLRQ$FWB. V. Jhaveri :KDWFDQEH:LOOHGDQG:KDWFDQQRWEH:LOOHGAditya Bhatt ,QWHVWDWH6XFFHVVLRQAnup P. Shah 5LJKWLQWHVWDPHQWDU\DQGLQWHVWDWHVXFFHVVLRQIRU YDULRXVUHODWLRQVXQGHU+LQGX/DZAjay R. Singh .......................................... 44 0XVOLP/DZYuvraj P. Narvankar /DZUHODWLQJWRVXFFHVVLRQManoj Dedhia (VVHQWLDOIHDWXUHVRI:LOO LQFOXGLQJPDLQFODXVHVLQD :LOODQG0RGHO:LOODQG&RGLFLO Pravin Veera 1RPLQDWLRQ5XOHVLQ,QGLDRohit Das (VWDWHDQG6XFFHVVLRQ)LOLQJRI5HWXUQDQG&RPSOLDQFHVParas K. Savla ,PSRUWDQFHRI)DPLO\&RQVWLWXWLRQDQG)DPLO\028Prof. Parimal Merchant &DVH/DZV,QGH[ DIRECT TAXES Ć 6XSUHPH&RXUWB. V. Jhaveri Ć +LJK&RXUW Ashok Patil, Mandar Vaidya & Priti Shukla Ć 6WDWXWHV&LUFXODUV 1RWLILFDWLRQVSunil K. Jain INTERNATIONAL TAXATION Ć &DVH/DZ8SGDWHTarunkumar Singhal & Sunil Lala INDIRECT TAXES Ć &HQWUDO([FLVHDQG&XVWRPVă&DVH/DZ8SGDWHHasmukh Kamdar Ć 9$78SGDWHJanak Vaghani Ć 6HUYLFH7D[ă6WDWXWHXSGDWHRajkamal Shah & Naresh Sheth Ć 6HUYLFH7D[ă&DVH/DZ8SGDWHBharat Shemlani CORPORATE LAWS Ć &RPSDQ\/DZ8SGDWHJanak C. Pandya BEST OF THE REST Ajay Singh & Suchitra Kamble TAX ARTICLES FOR YOUR REFERENCEKishor Vanjara ECONOMY & FINANCERajaram Ajgaonkar YOUR QUESTIONS & OUR ANSWERSV. H. Patil THE CHAMBER NEWSHitesh R. Shah & Hinesh R. Doshi i | The Chamber's Journal | 1RYHPEHU| 3 ¯ 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 (0DLO RI¿FH#FWFRQOLQHRUJ :HEVLWH KWWSZZZFWFRQOLQHRUJ The Chamber's Journal Editor & Journal Committee Managing Council Editorial 2013-14 2013-14 Board Chairman 3UHVLGHQW 2013-14 Yatin Vyavaharkar Yatin Desai (GLWRU 9LFH &KDLUPDQ VLFH3UHVLGHQW K. Gopal Apurva Shah Paras Savla (GLWRULDO %RDUG ([2I¿FLR Yatin Desai Paras Savla +RQ6HFUHWDULHV Chairman Convenors Hitesh Shah Hinesh Doshi V. H. Patil Toral Shah Bhavik Shah Members 3DVW 3UHVLGHQW 7UHDVXUHU ,PP3DVW3UHVLGHQW Keshav Bhujle Vipin Batavia Avinash Lalwani Manoj Shah Kishor Vanjara 2I¿FH %HDUHU Members Pradip Kapasi Hinesh Doshi S. N. Inamdar Ajay Singh Apurva Shah Subhash Shetty 0J&RXQFLO 0HPEHU Ashit Shah Ashok Sharma Vipul Choksi $VVW (GLWRUV Haresh Kenia Jayant Gokhale Reepal Tralshawala Members Keshav Bhujle Ketan Vajani Atul Bheda Bakul Mody Heetesh Veera Bhadresh Doshi Dhaval Thakkar K. Gopal Kishor Vanjara Chairman Dhiren Dalal Hasmukh Kamdar Mahendra Sanghvi Paresh Shah Yatin Vyavaharkar Ms. Indira Gopal Janak Pandya Parimal Parikh Vijay Bhatt Ketan Jhaveri Mitesh Kotecha ([2I¿FLR Ms. Nikita Badheka Pankaj Majithia Vipul Joshi Vipul Choksi Yatin Desai Rajkamal Shah Shivratan Singrodia Yatin Vyavaharkar Paras Savla Ms.Sonal Desai DISCLAIMER 2SLQLRQVYLHZVVWDWHPHQWVUHVXOWVUHSOLHVHWFSXEOLVKHGLQWKH-RXUQDODUHRIWKHUHVSHFWLYHDXWKRUVFRQWULEXWRUV 1HLWKHU7KH&KDPEHURI7D[&RQVXOWDQWVQRUWKHDXWKRUVFRQWULEXWRUVDUHUHVSRQVLEOHLQDQ\ZD\ZKDWVRHYHU IRUDQ\SHUVRQDORUSURIHVVLRQDOOLDELOLW\DULVLQJRXWRIWKHVDPH 1RQUHFHLSWRIWKH5HYLHZPXVWEHQRWL¿HGZLWKLQRQHPRQWKIURPWKHGDWHRISXEOLFDWLRQZKLFKLVWKRIHYHU\PRQWK 1RSDUWRIWKLVSXEOLFDWLRQPD\EHUHSURGXFHGRUWUDQVPLWWHGLQDQ\IRUPRUE\DQ\PHDQV ZLWKRXWWKHSHUPLVVLRQLQZULWLQJIURP7KH&KDPEHURI7D[&RQVXOWDQWV ADVERTISEMENT RATES 0(0%(56+,3)((6 -2851$/68%6&5,37,21 5(9,6(')((6$1'68%6&5,37,21)520 3HU ,QVHUWLRQ Sr. Membership Type Fees Service Total Fourth Cover Page ` 10,000 No. Tax Second & Third 12.36% Cover Page ` 7,500 1. Life Membership 9500 1174 10674 Ordinary Full Page ` 5,500 Additional Optional subscription charges for Annual Journal ` 550 0 550 ` 11224 Ordinary Half Page ` 2,750 2. Ordinary Members Ordinary Quarter Page ` 1,500 Entrance Fees ` 200 25 225 Annual Membership Fee, including subscription for Journal 1300 161 1461 ` 1686 DISCOUNT 3. Associate Membership Entrance Fees ` 1000 124 1124 25% for 12 insertions. Membership Fees including Subscription for Journal 2000 247 2247 15% for 6 insertions. ` 3371 4. Student Membership Entrance Fees ` 250 31 281 Journal Subscription 700 0 700 ` 981 Full advertisement charges should be paid in advance. 5. Non-members Journal Subscription ` 1000 0 1000 ` 1000 ii ¯4 | The Chamber's Journal | 1RYHPEHU | Editorial Wishing you all a very happy Dipawali and prosperous and peaceful Samvat 2070. The markets had warmed up to welcome the New Year. I am fascinated with the flickering flame of the small earthen lamp which glows without bothering about enormous darkness around it. By the time this issue reaches, you may have forgotten about the vacation you had during the Diwali festival. George H. Hepwork said "my ambition is not to leave behind me a pile of money for my heirs to quarrel about, but to find out what there is of interest in this world before I cross the border and begin to explore the other world". The sentiments expressed about succession maybe correct. But the same can be warded off by putting in place a proper plan of succession. We chose the topic Estate and Succession Planning for the Special Story of the November issue of the Chamber's Journal. Eminent professionals have contributed articles to this month's Special Story. Chamber is grateful for their support. We intend to bring out the December 2013 issue of Chamber's Journal with a Special Story on Private Trusts. I hope these two issues of the Chamber's Journal will provide substantial material and clarity on various issues pertaining to succession planning to the members. I thank all the contributors of this issue for their efforts and specially CA Haresh Chheda for designing the Special Story. K. GOPAL Editor iii | The Chamber's Journal | 1RYHPEHU| 5 ¯ From the President Dear Readers, On behalf of the Managing Council members of Chamber, I wish all of you a very Happy and Prosperous New Year. The Hindu New Year is the day on which Lord Krishna killed demon Narkasura. Also, in most of the Northern parts of India, it is celebrated to mark the return of Lord Rama from exile of fourteen years. I am influenced by that belief as presently I am celebrating Diwali coupled with a brief vacation at Binsar, situated in the Northern India. Binsar is a picturesque, sleepy hamlet, one of the most scenic spot in the Kumaon Himalayas at a height of 5,032 feet above sea level. Pitched at the impressive altitude of 2,420 mtrs, 95 kms from Nainital it offers a majestic view of the snow covered Himalayan Peaks, the mesmerising range of Chaukhmba, Trishul, Nanda Devi, Shivling and Panchachuli. From here on a sunny day, one can have glimpse of the holiest shrines in the Himalaya, Kedarnath, Badrinath and Gangotri. It’s a fascinating spot, encircled by a vast wildlife sanctuary and many rare birds, animals and flowers. I happen to meet some of the locals and was amazed by their simplicity and contentment. One more thing, while conversing with them, I came to know that at least one member of the their family is in Indian Army. I remembered the few lines from the famous patriotic song sung by Lata Mangeshkar and written by poet Pradeep, ȯȯȲȢȢȡȢȪȯ¡ȯȯ¡ȪȢ¡ ȰȯȯȪȲȯȲȪȯ¡ȯȯȪȢ Entire tax paying community and tax