the ctc news | september 2019 1€¦ · 19 11-10-2019 direct taxes lecture meeting on “tackling...

www.ctconline.orgTHE CTC NEWS | September 2019 1


FORTHCOMING EVENTS

Interested members may enrol from the Chamber’s website : www.ctconline.org to make online payment. Outstation members are requested to make online payment or send DD/at par Cheque in favour of The Chamber of Tax Consultants. Debit & Credit Card is accepted.

SR. NO. DATE COMMITTEE PROGRAMME DESCRIPTION VENUE PG.

NO.1 04-09-2019 Accounting and

AuditingWebinar on “Issue of Audit Reports and Certificates for Special purposes by Chartered Accountants”

— 11

2 04-09-2019 Study Circle & Study Group

SC Meeting on “Issues in Tax Audit & Reporting in 3 CD with Special Reference to ICDS”

Kilachand Hall, 2nd Floor, IMC, Churchgate 13

3 05-09-2019 Student Workshop on Tax Audit for Students Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate

4

4 05-09-2019 Indirect Taxes IDT SC Meeting on “Issues under GST relating to Real Estate Sector”

AV Room, 4th Floor, Jai Hind College, Churchgate

12

5 06-09-2019 Accounting and Auditing

Webinar on “Tax Audit Reporting issues and MAT complication with companies following IND AS (Including NBFCs)”

— 11

6 07-09-2019 Indirect Taxes Workshop on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019

Walchand Hirachand Hall, 4th Floor, IMC, Churchgate

6

7 07-09-2019 Membership & Public Relations

Half Day Seminar on Audit and FEMA at Nashik The Institute of Engineers Hall, PWD Compound, Near City Centre Mall, Nashik-422002

6


Workshop on Assurances & Compliances Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate

4

9 11-09-2019 International Taxation

International Taxation Study Circle Meeting CTC Conference Room, 3, Rewa Chambers, Gr. Floor, 31, New Marine Lines, Churchgate

15

10 14-09-2019 Commercial & Allied Laws

Full Day Seminar on Charitable Trusts - Critical Aspects (Jointly with BCAS)

BCAS, 7, Jolly Bhavan No. 2, New Marine Lines, Churchgate

8

11 14-09-2019 Direct Taxes Webinar on “Issues and Information in filing New Corporate IT Return (ITR-6)”

— 11

12 14-09-2019 Pune Study Group Pune Study Group Meeting on Practical & Legal Issues in Tax Audit

ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road, Next to Atur Centre, Pune-411 016

14

13 14-09-2019 Delhi Chapter Full Day Workshop on Mergers & Acquisition India International Centre, Lecture Room I, Annexe Building, Dr. K.K. Birla Lane, Max Mueller Marg, Lodhi Estate, New Delhi-110 003

7


Webinar on “IND AS 116: No More Off-Balance Sheet Treatment of Leases”

— 12

15 17-09-2019 Membership & Public Relations

Self Awareness Series on Speed Reading Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate

9

16 18-09-2019 & 10-10-2019

International Taxation

FEMA SC Meeting on “Discussion on Master Direction on ECB Regulations with Case studies”

CTC Conference Room, 3, Rewa Chambers, Gr. Floor, 31, New Marine Lines, Churchgate

15

17 03-10-2019 Indirect Taxes IDT SC Meeting on “Issues in Input Tax Credit under GST”

AV Room, 4th Floor, Jai Hind College, Churchgate

12

18 04, 05, 11, 12-10-2019

International Taxation

MLI Course – Implementation & Beyond and Impact on Indian Treaties

Terrace Hall, Hotel West End, Churchgate 5

19 11-10-2019 Direct Taxes Lecture Meeting on “Tackling the Assessment Proceeding Pertaining to Demonetization”

Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai-400020

14

20 12-10-2019 Pune Study Group Pune Study Group Meeting ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road, Next to Atur Centre, Pune-411 016

14

21 19-10-2019 Direct Taxes Half Day Workshop on Prosecution under the Income Tax Act

Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate

9

22 13, 14 & 15-12-2019

— 22nd National Convention Khadayata Bhuvan & Sahara Star, Vile Parle 10

23 — — Free Enrolments for Webinars to Outstation Members

— 12

24 — — Chamber’s Study Group at Hyderabad - (New Initiative)

— 13

25 — — Renewal Notice 2019-20 — 1626 — — Unreported Decisions — Tribunal — 17-1827 — — Unreported Decisions — Service Tax — 18-19


ACCOUNTING AND AUDITING COMMITTEEChairman: Heneel K. Patel | Vice Chairman: Tejas Parikh Convenors: Arpita Gadhia | Deepak Shah | Advisor: Jayesh Gandhi

Workshop on Assurances & CompliancesVenue: Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020

Day & Date: Saturday, 7th September, 2019

Time: 9.30 a.m. to 6.30 p.m.

Auditing profession has continued to see unprecedented change. The accelerating pace of change in advancing technologies relating to data, process automation, advanced analytics, cognitive and emerging innovations will play a pivotal role. New technologies are important and need to be matched with the people who know how to effectively use these tools. Clients are increasingly expecting the auditor to provide a more forward looking view and insight that can add value to their organisations. Companies Act has finally provided for an independent statutory regulator - ‘NFRA’ for matters relating to accounting and auditing standards. With effect from April 1, 2018, new audit reporting formats are applicable that have completely changed the manner of audit reporting. In view of the comprehensive changes which have been made by ICAI, there is a need to provide guidance to the members so that they can discharge their reporting responsibilities under these standards Effectively.

Accordingly, Accounting and Auditing Committee (A/A) of The Chamber of Tax Consultants is pleased to organize a workshop on Assurances & Compliances where you can interact with subject matter experts and deliberate on the key aspects. The programme would facilitate understanding various recent developments in Companies Act and auditing of the financial statements including the changes in reporting requirement under SA 700, 701 & 720.

WHO SHOULD ATTENDi) Auditors involved in verification of financial statements prepared

under applicable financial reporting framework. ii) Accountants department members involved in the daily operations.

Fees:Member ` 1,250/- + ` 225/- (18% GST) = ` 1,475/-Non-Member ` 1,500/- + ` 270/- (18% GST) = ` 1,770/-Sr.

No. Topics Speakers

1. Recent Amendments under the Companies Act and Auditors Responsibilities CA Hemal Shah2. Audit Approach – Small & Medium Enterprises CA Milan Mody 3. Audit Evidence & Written Representations CA Murtuza Kachwala4. Audit Conclusions

CA Khushroo Panthaky — Forming Opinion & Reporting on Financial Statements — Communicating Key Audit Matters [in the context of small and medium enterprises]— Responsibilities relating to other information

Day & Date: Thursday, 5th September, 2019

Time: 2.30 p.m. to 6.00 p.m.

Sr. No. Topics Speakers1. Basics of Form 3CD, documentation, uploading and filing of Tax Audit Report CA Chintan Gandhi2. Legal & Practical Issues in Tax Audit CA Ashok Mehta

Fees:` 381/- + ` 69/- (18% GST) = ` 450/-

STUDENT COMMITTEEChairperson: Varsha Galvankar | Vice Chairman: Vitang Shah | Vice Chairperson: Niyati Mankad Convenors: Charmi G. Shah | Sachin Maher | Advisor: Ajay R. Singh

In the present scenario for the practicing professional, the responsibility has increased manifold. Cost of negligence is very high. Articled assistants are the initial executors for conducting Tax Audit. • Is your articled assistants equipped to carry tax-audit?

• Is your articled assistants understanding impact of Standard Auditing for carrying out tax Audit?

• Is your articled assistants able to co-relate understanding of income-tax while dealing with tax audit?

• Is the articled assistants cautious about preparing proper working file for tax audit?

For this, Training is the need of the hour. With the object of enhancing students’ knowledge and skills required in the execution of tax audit, the Student Committee of The Chamber of Tax Consultants has organized a Workshop on Tax Audit.

The members are requested to encourage their articled assistants and other staff to participate in the student programs.

Workshop on Tax Audit for StudentsVenue: Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020


INTERNATIONAL TAXATION COMMITTEEChairman: Rajesh L Shah | Vice Chairman: Kirit Dedhia, Harshal Bhuta Convenors: Isha A. Shekhri | Ronak Doshi | Kartik Mehta | Advisor: Dilip J. Thakkar

MLI Course – Implementation & Beyond and Impact on Indian TreatiesVenue: Terrace Hall, Hotel West End, Churchgate, Mumbai-400 020.

Days & Dates: Friday, 4th &

Saturday, 5th October, 2019 Friday, 11th &

Saturday, 12th October, 2019

Time 9.00 a.m. to 5.30 p.m.

Fees EARLY BIRD UP TO 20TH SEPTEMBER 2019 AFTER 20TH SEPTEMBER 2019Member ` 7,500/- + ` 1,350/- (18% GST) = ` 8,850/- ` 8,500/- + ` 1,530/- (18% GST) = ` 10,030/-Non-Member ` 8,250/- + ` 1485/- (18% GST) = ` 9,735/- ` 9,250/- + ` 1,665/- (18% GST) = ` 10,915/-

Sr. No. Topics1 Key Note Address 2 Introduction to BEPS/Multilateral Instruments (MLI) 3 BEPS Motivated Domestic Law Measures [Sec 94B ,CBCR, Global Trends]4 Other anti-avoidance measures [Dual resident entities, PE in third jurisdictions and Jurisdiction’s right to tax its own residents]5 Taxation of Digital Economy [Global Trends (Including Significant Economic Presence)]6 Attribution of profits to PE [OECD and CBDT draft report on Attribution of Profits]7 Transparent entities and elimination of double tax [Articles 3 and 5 of MLI (BEPS Action 2 report]8 Exchange of Information and Tax Transparency [Transparency by Preferential tax regimes (BEPS Action 5 report) and

Exchange of Information under various agreements]9 Prevention of Treaty abuse [Preamble to the DTA, Principal Purpose Test (PPT) Articles 6 and 7 (BEPS Action 6 report),

Interplay between GAAR and PPT, Safeguards for an Indian deductor while granting treaty benefit. Is sec 197 only the safest option? Changes in OECD Model/ Commentary. India’s position: Other countries MLI positions – e.g. USA, Singapore, Mauritius, UK, Luxembourg, Netherland, Japan, Ireland, Sweden and France etc.]

10 Prevention of Treaty abuse [Limitation of Benefits (LOB) Rule, Simplified Limitation on Benefit (SLOB) Article 7 (BEPS Action 6 Report), Interplay between General Anti Avoidance Rule (GAAR), LOB and SLOB, Changes in OECD Model/Commentary and India’s position]

11 Other anti-avoidance measures [Dividend and Capital Gain on immovable property – Articles 8 and 9 of MLI (BEPS Action 6 report), Changes in OECD Model/ Commentary and India’s position]

12 Panel Discussion on Prevention of Treaty Abuse13 Artificial avoidance of PE status [Commissionaire and Agency PE, Amendment in Explanation 2 to Section 9(1)(i) – Analysis

– Articles 12 and 15 of MLI (BEPS Action 7 report), Analysis of treaties which will change and points to be kept in mind while entering into a transaction and while dealing with Section 195.]

14 Artificial avoidance of PE status through specific activity exemptions and anti-fragmentation rules, Preparatory and Auxiliary activity Exemption – Articles 13 and 15 of MLI (BEPS Action 7 report)

15 Splitting of contracts [Construction PE - Articles 14 and 15 of MLI (BEPS Action 7 report), Analysis of treaties which will change and points to be kept in mind while entering into a transaction]

16 Panel Discussion on Artificial Avoidance of PE Status

Eminent Faculties will address the Course

On 12 June 2019, the Indian Government announced its ratification of the Multilateral Instrument (MLI) to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. The MLI will modify provisions of existing Indian tax treaties. The impact of the MLI on India’s tax treaties is significant and requires careful consideration for various transactions, including existing investment structures and business arrangements.

In light of these developments, the International Taxation Committee has considered it prudent to hold a course to provide an overview of the BEPS implications, and also look at how India and other countries will implement BEPS outcomes in their domestic legal and tax systems.

The course will pay significant attention to the MLI, India’s position on the MLI provisions, covered tax treaties, options, notifications and the reservations made by the countries. Impact on Indian treaties will be discussed.

The course will also provide an update on outcome of the BEPS Project and the pending actions points.

Who Should Attend?

The course is suitable for practitioners in tax advisory firms, CFOs and tax heads in industry, and tax revenue officials.


Sr. No. Topics Speakers1. Presentation on “Sabka Vishwas, (Legacy Dispute Resolution) Scheme, 2019” CA Naresh Sheth2. Panel Discussion on “Issues related to Sabka Vishwas, (Legacy Dispute Resolution)

Scheme, 2019”Panellists : CA S. S. GuptaMr. Vipin Jain, AdvocateMr. Harsh Shah, AdvocateModerator: CA A. R. Krishnan

Fees:Member ` 950/- + ` 171/- (18% GST) = ` 1,121Non-Member ` 1,150/- + ` 207/- (18% GST) = ` 1,357/-

INDIRECT TAXES COMMITTEEChairman: Pranav Kapadia | Co-Chairman: Atul Mehta | Vice Chairman: Sumit Jhunjhunwala Convenors: Hemang Shah | Keval Shah | Kush Vora | Advisors: A. R. Krishnan, Rajiv Luthia

Workshop on Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019Venue: Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai-400020


Time: 08.30 a.m. to 09.00 a.m.

(Registration) 09.00 a.m. to 01.30 p.m.

“More than (Rs) 3.75 lakh crore is blocked in litigations in service tax and excise. There is a need to unload this baggage and allow business to move on”.“I, therefore, propose, a Legacy Dispute Resolution Scheme that will allow quick closure of these litigations. I would urge the trade and business to avail this opportunity and be free from legacy litigations,”

- Finance Minister Ms. Nirmala SitharamanThe Finance Bill presented on 05th July 2019 introduces an innovative scheme to resolve all pending disputes in relation to Service Tax, Central Excise and various other Acts.

The scheme not only grants benefit in the form of waiver of penalty and interest but also relief from payment of tax dues. The taxpayers and professionals are anxious to understand the various nuances of the scheme with respect to its applicability to their pending disputes.The Chamber of Tax Consultants (Chamber) is committed to familiarize and update its members to perform the professional duties in efficient and committed manner. In pursuit of this objective, The Chamber is organising half day workshop wherein the experts will provide a detailed analysis of Scheme along with practical case studies to understand the scheme in a easier manner.

Sr. No. Topics Speakers1. Practical & Legal Issues in Tax Audit CA Ashok Mehta2. Revised Audit Report under Companies Act CA Prashant Daftary3. FEMA from the auditor’s perspective CA Rajesh P. Shah

FeesMember ` 636/- + ` 114/- (18% GST) = ` 750/-Non-Member ` 847/- + ` 153/- (18% GST) = ` 1,000/-

Interested members may issue cheque in favour of The Chamber of Tax Consultants or visit website www.ctconline.org for online payment. For Registration at Nashik, kindly contact 1) CA K. M. Birari - 9420694400 2) CA Rohan Kulkarni - 9947549998

MEMBERSHIP & PUBLIC RELATIONS COMMITTEEChairman: Rajesh P. Shah | Co-Chairman: Sachin Gandhi | Vice-Chairman: Kartik Badiani Convenors: Ashita Shah | Premal Gandhi | Advisor: Bhavesh Vora

Half Day Seminar on Audit and FEMA at NashikVenue: The Institute of Engineers Hall, PWD Compound, Near City Centre Mall, Nashik-422002


Time: 10.00 a.m. to 3.00 p.m.

Tax audit is something which is very close to Chartered Accountant as it remains in the exclusive domain of a CA. Form 3CD undergoes constant changes so as to get more and more relevant information for the department. The law keeps on evolving with new judgments cropping up on various issues that are required to be reported in the tax audit report. Also the Reporting Requirement under the Companies Act, 2013 have undergone changes which needs deliberations.

It is also imperative to study FEMA through Financial Statements.With a view to have analysis of Tax audit report, Reporting under the Companies Act, 2013 and FEMA from auditor’s perspective, the Membership & Public Relations Committee has organised a half day Seminar at Nashik.


Full Day Workshop on Mergers & AcquisitionVenue: India International Centre, Lecture Room I, Annexe Building, Dr. K.K. Birla Lane, Max Mueller Marg, Lodhi Estate, New Delhi-110 003

Day & Date: Saturday, 14 September, 2019

Time: 09.30 a.m. to 05.00 p.m. 09.00 a.m. to 09.30 a.m.

(Registration)

DELHI CHAPTER COMMITTEEChairman: Vijay Gupta | Vice-Chairman: Sanjeev Chaudhary | Advisors: V. P. Verma, C. S. Mathur

Sr. No.

Topics Speakers

1. M&A deal negotiation and Documentation● Key consideration in M&A deal negotiation● Negotiation strategies and tactics● Issues to be captured in deal documentation for M&A

Mr. Lalit Kumar, Partner,

J. Sagar Associates

2. Corporate and Capital Restructuring● Corporate restructuring – corporate legal entity and business restructuring● Conversion of partnership/sole proprietorship into company● Modes of capital structuring● Key tax & regulatory considerations – FEMA, SEBI, The Companies Act, 2013, The

Income-tax Act, 1961, Stamp Duty

Mr. Suraj Malik, Partner,

BDO India LLP

3. Key issues under M&A (via IBC) in Distressed Assets● Overview of IBC and CIRP ● Key issues for Resolution Applicants in CIRP● Pitfalls to avoid – learning from recent judicial trends

Mr. Shinoj Koshy, Partner,L&L Partners

4. Due Diligence and Valuation requirements in M&A deals● Forms of Due diligence● Main Elements of due diligence● Strategies for migrating risks● Impact of diligence on valuation

Mr. Varun Dhingra, CEO, Renous Consulting

5. Emerging structures for fund raising● AIF- how to structure, types, tax impacts, benefits● REIT/InVIT - how to structure, types, tax impacts, benefits● FPI/FVCI● ECB

Mr. Amithraj AN, Partner, PwC

Fees:

Member ` 763/- + ` 137/- (18% GST) = ` 900/-

Non-Member ` 932/- + ` 168/- (18% GST) = ` 1,100/-

Students ` 763/- + ` 137/- (18% GST) = ` 900/-

(Fees includes Tea/coffee, Snacks and Lunch)For any query on registration and further detail, please contact – Mukesh Kumar - 9818248115 / [email protected]



Time: 9.00 a.m. to 5.45 p.m.

COMMERCIAL & ALLIED LAWS COMMITTEEChairman: Rahul Hakani | Co-Chairman: Paras S. Savla | Vice Chairman: Ranit Basu Convenors: Abhishek Tilak | Ajinkya Udane | Nihar Mankad Advisor: Pravin Veera | K. K. Ramani

Full Day Seminar on Charitable Trusts - Critical Aspects (Jointly with Bombay Chartered Accountants’ Society)Venue: BCAS, 7, Jolly Bhavan No. 2, New Marine Lines, Mumbai 400 020.

Charitable Organizations are essentially formed to benefit the public at large. Government’s inability to create just and sustainable societies has prompted NGOs to help address a wide variety of social needs through various means and are working in the areas of providing relief and assistance to people at times of need in any part of the world, especially who are the victims of war, natural disaster, catastrophe, hunger, disease, poverty and orphans by supplying them with food, shelter, medical aid and other fundamental needs.

Charities supplement the Government’s efforts to alleviate the problems faced by its citizens. Unfortunately, in India, charitable organisations are highly regulated. Some states (including Maharashtra) also have their own laws governing charitable trusts. Recent amendments in section 11, 12AA, proposed changes in audit report format, section 115TD, etc. have made compliances by NGOs really challenging.

We are also aware of the Government action of cancelling registration of more than 10000 NGOs for violation of FCRA 2010.

NGOs have been facing many issues right from registration under section 12AA to claiming exemptions, and some of the recent amendments in the Income-tax Act have many far-reaching implications on the very functioning of the charitable trusts. They have been grappling with some vexatious issues which include:

• Taxability of anonymous or pseudonymous donations• Application of Accumulated Income• Filing of Online audit report in Form 10B/10BB and Form 10 for

accumulation• Adventurous interpretation of the Law with a view to tax the NGO’s• Denial for exemption in case of non-filing of tax return within the

due dateTo add to the complexities and increase the compliance, a charitable trust has also to consider the provisions of GST, which again has its own set of challenges and difficulties.

Finance Bill 2019 has introduced a new concept of Social Stock Exchanges in India which are already prevalent in other countries like UK, Singapore, Canada, etc. Will they help in the development and institutionalize the NGO sector?

To enable the profession to take on the challenges and to discharge professional responsibilities in a more informed manner, and to apprise the stakeholders of the provisions of the law and compliances, the Committee has organized this one-day Seminar.

FeesMember ` 2,100/- + ` 378/- (18% GST) = ` 2,478/-Non-Member ` 2,500/- + ` 450/- (18% GST) = ` 2,950/-(Fees is inclusive of Course Material, if any, Breakfast, Lunch & Tea)

Sr. No. Topics Speakers1 Presentation on Important Procedural Aspects for Trustees and Professionals

Compliance and Issues under the Maharashtra Public Trusts ActMr. Sanjay Mehare(*)Charity Commissioner (MH)

2 The various Advantages and Disadvantages of Charitable Institutions viz-a-viz Private Trust

Interesting Aspects of the Proposed Social Stock Exchange Issues related to Formation of Minority Status Trust in present times.

CA Gautam Shah

3 Issues on Taxation (including registration) of Charitable Trusts, including recent amendments

Issues on Dissolution of Charitable Trust and Discussion regarding implication of section 115TD of the Income Tax Act.

Recent controversial decisions in direct tax for trust

CA Gautam Nayak

4 Issues under Foreign Contribution and Regulation Act (FCRA), 2010 Registration & Renewal Compliance Accounts & Audit CSR Provisions related to Trusts

CA Anil Sathe

5 Issues under Goods & Services Tax (GST) for the NGO’s CA Sunil Gabhawalla6 Hardships faced in the Office of Charity Commissioner Mr. Rakesh Pandey, Advocate7 Issues of Charitable Institutions from Income Tax Point of View Mr. Satish Sharma(*) CIT (Exemptions) 8 Panel Discussion on various issues relating to NGO’s Mr. Satish Sharma (*) CIT (Exemptions)

CA Gautam Nayak, CA Anil SatheCA Sunil GabhawallaModerator: CA Chetan Shah

(*) Subject to confirmation


DIRECT TAXES COMMITTEEChairman: Devendra Jain | Vice Chairman: Abhitan Mehta | Dinesh Poddar Convenors: Dharan Gandhi | Nimesh Chothani | Viraj Mehta | Advisor: Mahendra Sanghvi

Half Day Workshop on Prosecution under the Income Tax ActVenue: Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400020

Day & Date: Saturday 19th October, 2019

Time: 09.30 a.m. to 02.00 p.m.

Just as invocation of penalty on making a quantum addition was a routine exercise of the Income Tax Department without giving due consideration to the merits of the case. Nowadays, issuing prosecution notice on confirmation of penalty or even without starting penal proceedings as a routine exercise, purely based on monetary thresholds prescribed for launching prosecution. CBDT has also recently revised the guidelines on compounding of offences.

Therefore, it is important to understand the offences which could attract prosecution and also remedies available to tax payer to defend a prosecution notice.

Who should attend the programme?

The programme would benefit the Tax Lawyers, Chartered Accountants and tax practitioners

Sr. No. Topics Speakers1. Ingredients of offences under Income Tax Act Mr. Beni Chatterji,

Senior Advocate2. Procedure & guidelines for Compounding of offence Mr. Mandar Vaidya,

Advocate3. Procedure of trial before magistrate Eminent faculty

Fees:Member ` 800/- + ` 144/- (18% GST) = ` 944/-Non-Member ` 1,000/- + ` 180/- (18% GST) = ` 1,180/-

FeesSAS Members FreeOthers ` 169/- + ` 31/- (18% GST) = ` 200/-

MEMBERSHIP & PUBLIC RELATIONS COMMITTEEChairman: Rajesh P. Shah | Co-Chairman: Sachin Gandhi | Vice-Chairman: Kartik Badiani Convenors: Ashita Shah | Premal Gandhi | Advisor: Bhavesh Vora

Self Awareness Series on Speed ReadingVenue: Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400020

Speaker: CA Sriniwas Vakati (He is a certified Neuro Linguistic Programming Master Practitioner and Memory Trainer)

Day & Date: Tuesday,17th September, 2019

Time: 6.00 p.m. to 8.00 p.m. (Session)

5.45 p.m. to 6.00 p.m. (Registration and Fellowship)

We as professionals carry out lot of activities. With ever changing laws and professional developments, professionals are required to keep themselves updated about the changes and they are also required to unlearn and learn on continuous basis. It is therefore necessary for us to increase and develop the life skill of Speed Reading. To learn new techniques of Speed Reading and to apply it in our life, the Membership & PR Committee of The Chamber of Tax Consultants is pleased to present Life skill workshop on “Speed Reading”.

What will you learn in this workshop?

What is your reading speed? How to calculate your reading speed?

Myths, misconceptions of reading and what are the facts.

Your reading habits – Good and Bad and how to overcome your bad reading habits.

Eyes: How to use your eyes in a right way to increase your reading speed

Practical Techniques to double your Reading Speed.

Biggest mistake every reader makes. This lesson will change the way you look at reading forever.

Right state for reading a book.

Right mindset for reading.

Step-by-Step system to read any book.

Tips for reading on a computer screen and other Electronic Devices.


(Dedicated to Past Presidents of AIFTP, Late Dr. N. M. Ranka, Sr. Advocate & Late Shri S. K. Poddar, Advocate)

Anand Pasari (Dr.) Ashok Saraf Secretary-General, AIFTP National President, AIFTP

Topics and Speakers are as under : —

Session Time Subject Speaker/Panelist Chairman/ Moderator

Day 1 — Saturday, 14th December 20198.00 a.m. to 9.30 a.m. Breakfast, Registration & Fellowship9.30 a.m. to 12.00 noon Inaugural Function

1st Technical Session 12.00 noon to 1.30 p.m. Proposed Income Tax Laws – Chartered of India’s Pioneering Tax Reforms

Shri Mukesh Patel, Advocate, Ahmedabad

Dr. K. Shivaram Sr. Advocate, Mumbai

1.30 p.m. to 2.30 p.m. Lunch Break2nd Technical Session 2.30 p.m. to 4.00 p.m. Issues and Controversies in New GST Returns CA. Umang Talati, Mumbai Shri M. L. Patodi

Advocate, Kota3rd Technical Session 4:00 p.m. to 6.00 p.m. Panel Discussions – 1) Shifting of Burden of

Proof 2) Developing Opportunities for Tax Professionals

Panellists: Shri V. Sridharan, Sr. Advocate, Mumbai and Shri Saurabh Soparkar, Sr. Advocate, Ahmedabad

Moderator: CA. Pradip Kapasi, Mumbai

Day 2 — Sunday, 15th December 20198.00 a.m. to 9.30 a.m. Breakfast and Fellowship

4th Technical Session 9.30 a.m. to 11.00 a.m. Valuation under GST law with reference to treatment of discounts, price variations, incentives and its implications on Input Tax Credit

CA. Sujata Rangnekar, Mumbai Shri P. C. Joshi, Advocate, Mumbai

11.00 a.m. to 11.15 a.m. Tea Break5th Technical Session / Panel Discussion

11.15 a.m. to 12.45 p.m. Direct Taxes: Dilution of Fundamental Taxation Principles (or deeming provisions)

Shri Hiro Rai, Advocate, Mumbai Eminent Faculty

6th Technical Session / Panel Discussion

12.45 p.m. to 2.15 p.m. Power of Arrest and Prosecution under Tax laws Shri Rahul Agarwal, Advocate, Allahabad

Shri Vikram Nankani, Sr. Advocate, Mumbai

2.15 p.m. onward Lunch

REGISTRATION FEES Fees up to 7th September 2019 Fees after 7th September 2019Members (` 4,200+756) = ` 4,956/-* (` 5,200+936) = ` 6,136/-*Outstation Delegate’s Spouse (` 2,500+450) = ` 2,950/-* (` 3,000+540) = ` 3,540/-*Non-Members (` 5,200+936) = ` 6,136/-* (` 6,000+1,316) = ` 7,316/-*

*Including 18% GST (Registration form can be Downloaded, filled up online & Submitted @ [email protected] along with details of payment)

RTGS / NEFT Payment DetailsAccount Name : “AIFTP MUMBAI CONVENTION 2019” Bank Account No. : 919010038002874Bank Type : Saving Bank A/c Bank Name : Axis Bank Ltd.Branch : New Marine Lines, Mumbai 400 020 RTGS / NEFT Code : UTIB0000233

For further enquiries contact :Mrs. Nikita R. Badheka, Conference Chairperson and Dy. President, AIFTP – 9821037885

Mr. Deepak Shah, Conference Co-Chairman & Chairman (WZ)– 9820148536 Mr. Chirag Parekh, Treasurer (WZ) – 9821634128Mr. Bhaskar B. Patel, Vice President (WZ) – 9979733033 Mr. Santosh Gupta, Joint Secretary (WZ) – 9890033480Mr. Pravin Shah, Vice Chairman (WZ) – 9821476817 Mr. Vipul Joshi, NEC Member – 9820045569

or E-mail to [email protected]


Fees ` 169/- + ` 31/- (18% GST) = ` 200/-

All are requested to take benefit of this Webinar.


Webinar on Issue of Audit Reports and Certificates for Special purposes by Chartered AccountantsSpeaker: CA Ashutosh Pednekar

Day & Date: Wednesday, 4th September, 2019

Time: 4.00 p.m. to 6.00 p.m.

The Standards on Auditing issued by the Institute of Chartered Accountants of India (ICAI) provides guidance for issue of audit report for Statutory Audit, Internal Audit, Agreed upon procedures etc. Apart from audit reports, the Chartered Accountants in practice issues various other audit reports and certificates in a day to day practice which are used for special purposes under various laws and regulations. Guidance Note on Reports or Certificates for Special Purposes issued by ICAI provides guidance for issue of audit reports and certificates for special purposes. However, many of the Practitioners are finding it difficult understand and implement this Guidance Note and there is lack of understanding of process to be followed and documentation required for issue of such audit reports

and certificates. Even if the process given under the Guidance Note is followed there is no proper documentation for the audit reports or certificate issued. Further with the mandatory requirement for generation of Unique Document Identification Number (UDIN) from ICAI portal for issue of any auditor report or certificate, the documentation for issue of such audit reports and certificates has become more critical.

In order to guide members to understand the implantation of the Guidance Note on Reports or Certificates for Special Purposes and documentation required thereon, the Chamber has organized a Webinar on Issue of Audit Reports and Certificates for Special Purposes by Chartered Accountants.


Fees ` 169/- + ` 31/- (18% GST) = ` 200/-


Webinar on Tax Audit Reporting issues and MAT complication with companies following IND AS (Including NBFCs)Speaker: CA Sandeep Shah

Day & Date: Friday, 6th September, 2019

Time: 4.00 p.m. to 6.00 p.m.

Over the years there has been a substantial change in the scope of tax audit as well as in the form of the tax audit report. The intention of tax audit was to have a true and fair view of the book of accounts maintained by the assessee for the purpose of computation of income. However, the scope has been expanded with various amendments to the provisions of the Act and amendments to Form 3CD.

Rationalization of provisions of section 115JB is a welcome step taken by Government in bringing long awaited clarity in calculation

of book profits under section 115JB considering the for a company whose financial statements are drawn up in compliance to the Indian Accounting Standards. However, there are various issues which we still face during our Tax audit report and to get clarity of the MAT framework for the computation of book profit for companies required to comply with Ind AS (Including NBFCs) and to equip our members and their staff with adequate knowledge of the changes, we are pleased to present a workshop on the subject.


Webinar on Issues and Information in filing New Corporate IT Return (ITR-6)Speaker: CA Dipesh Vora


Time: 05.00 p.m. to 06.30 p.m.


Fees ` 169/- + ` 31/- (18% GST) = ` 200/-


Webinar on IND AS 116: No More Off-Balance Sheet Treatment of LeasesSpeaker: CA Hemal Shah

Day & Date: Monday, 16th September, 2019

Time: 3.30 p.m. to 5.30 p.m.

Lessees were hitherto required to screen and distinguished each of the lease arrangements as either an operating (off balance sheet) or finance lease (on balance sheet). Ind AS 116 requires lessees to recognise a ‘right-of-use asset’ and a ‘lease liability’ for almost all of the leasing arrangements.

There are optional exemptions for leases of terms less than 12 months and low-value assets. These do not have to be recognised on the balance sheet but can continue to be accounted as an operating

lease similar to today. The new model will gross-up balance sheets, increase leverage, and change the income statement and cash-flow profile. The rent expense will be replaced by depreciation and interest expense in the income statement, similar to finance leases today. The lease liability is measured in subsequent periods using the effective interest rate method and the ROU asset is depreciated, done on a straight-line.



IDT Study Circle Meeting (For IDT SC Members Only)Venue: AV Room, 4th Floor, Jai Hind College, Churchgate, Mumbai-400 020. Topic: Issues under GST relating to Real Estate Sector Group Leader : CA Kush Vora | Chairman : CA Naresh Sheth

Day & Date: Thursday, 5th September, 2019

Time: 5.30 p.m. to 8.30 p.m.

7.00 p.m. to 7.15 p.m. (Snacks)


IDT Study Circle (For IDT SC Members Only)Venue: AV Room, 4th Floor, Jai Hind College, Churchgate, Mumbai-400 020 Subject: Issues in Input Tax Credit under GST Speaker : CA Parth Shah | Chairman : Mr. Bharat Raichandani, Advocate

Day & Date: Thursday, 3rd October, 2019

Time: 5.15 p.m. to 8.30 p.m.

7.00 p.m. to 7.15 p.m (Snacks)

Free Enrolments for Webinars to Outstation MembersThe Chamber of Tax Consultants intend to cater to the needs of its members in various ways. With a view to spread education amongst outstation members at large, the Chamber is pleased to announce free enrolments for outstation members in the webinars conducted by the Chamber on various subjects of professional interest from time to time. In all the webinars conducted by the chamber, first 50 enrolments, on first come first served basis, will be free for outstation members. However, the members will need to register for availing the webinars free.

Members are requested to take the maximum advantage of this and register themselves for the webinars of their choice. Please send email to [email protected] for registering for the webinars. Members can contact office staff for any assistance in this regards.


Chamber’s Study Group at Hyderabad

The Chamber of Tax Consultants is pleased to announce formation of a new Study Group at Hyderabad for the benefit of its members in and around Hyderabad City. The purpose of the Study Group is to enable the members to have discussion based learning on variety of topics including Direct Tax, Indirect Tax, International Tax and also Allied Laws. The Study Group will have at least one meeting in a month and will try to cover the topics as per the suggestions from the members based at Hyderabad. The meeting of the Study Group may have one or more speakers / group leaders depending on the subject involved.

Eminent faculties will be leading the discussion for this group. The discussion at the Study Group will focus on various day-to-day issues being faced by the professionals and will cater to the needs of the professionals as may arise from time to time.

The Chamber firmly believes that the members at Hyderabad will take the maximum advantage of this new Study Group.

Fees from August 2019 to March, 2020 is ` 6,200/- + ` 1,116/- (18% GST) = ` 7,316/-. Interested members can make their payment by DD/Cheque in the favour of “The Chamber of Tax Consultants or visit our website www.ctconline.org for online payment.

The members interested to join the above study group are requested to inform about their willingness to join by sending an e-mail to: [email protected] or message any of the following co-ordinators at Hyderabad:

1) CA Manindar Kakarla (9700734609)

2) CA Neelesh Vithlani (9246344232/9494440232)

3) CA Ram Murthy T. (9848139153)

4) CA Ravi Ladia (9985722713)

5) CA Samba Murthy P. (9490412501)

New Initiative

STUDY CIRCLE MEETING (For SC Members Only)Venue: Kilachand Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020.Group Leader: CA Vyomesh Pathak Subject : Issues in Tax Audit & Reporting in 3 CD with Special Reference to ICDS.

Day & Date: Wednesday,

4th September, 2019

Time 6.00 p.m. to 8.30 p.m.

STUDY CIRCLE & STUDY GROUP COMMITTEEChairman: Ashok Sharma | Co-Chairman: Dilip B. Sanghvi | Vice Chairman: Sanjay Choksi Convenors: Dhaval Shah | Dinesh R. Shah | Dipesh Vora | Advisor: Paras K. Savla


Pune Study Group Meeting on Practical & Legal Issues in Tax AuditVenue: ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road, Next to Atur Centre, Pune-411 016

Pune Study Group MeetingVenue: ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road, Next to Atur Centre, Pune-411 016


Time: 10.00 a.m. to 01.00 p.m.

(09.30 a.m. to 10.00 a.m. – Registration and Fellowship)

Day & Date: Saturday, 12th October, 2019

Time: 10.00 a.m. to 01.00 p.m.

(09.30 a.m. to 10.00 a.m. – Registration and Fellowship)

PUNE STUDY GROUP Convenor: Sachin Sastakar | Shridhar PathakCo-ordinators: Govind Agrawal | Mehul Shah | Sunil Vaidya

Sr. No. Topics Speakers1. Tax Audit - It would cover clause by clause analysis with reporting requirements under clause 1

to 12, 15 to 20 and 22 to 26 and clause 29A, 29B, 30A, 30B, 36A, 42, 43 of Form 3CD, legal issues in applicability of tax audit u/s. 44AB, 44AD and 44ADA, in presumptive taxation cases and calculation of limits, e-filing issues, Tax Audit Documentation, and relevant recent judicial pronouncements dealing with the disclosure requirement of the Tax Audit Report.

CA Rajesh Athawale

2. Tax Audit - It would cover clause by clause analysis with reporting requirements under clause 13 (ICDS), 14, 21 and 27 to 41(Except Clause 30A, 30B, 30C) of Form 3CD, Tax Audit Documentation and relevant recent judicial pronouncements dealing with the disclosure requirement of the Tax Audit Report.

CA Vinod Jain

Fees Free for Pune Study Group MembersNon Study Group Member: ` 500/- (inclusive of GST)Student: ` 100/- (inclusive of GST)

Sr. No. Topic Speaker1. Prosecution under Income Tax, Theory and Practice including new compounding guidelines Mr. Ajay R. Singh,

Advocate

Fees Free for Pune Study Group MembersNon study Group Member: ` 500/- (inclusive of GST)Student: ` 100/- (inclusive of GST)


Lecture Meeting on Tackling the Assessment Proceeding pertaining to demonetization Speaker: CA Jagdish Punjabi Venue: Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai-400020

Day & Date: Friday, 11th October, 2019

Time: 6.15 p.m. to 8.15 p.m.

The Income Tax Department has stepped-up the efforts to tax illegitimate income. This Year the Tax Department will scrutinizing the return filed pertaining to the previous year in which there was demonetization of high value currency notes.

It is important to understand the amendments made relating to

demonetization and also the likely issues that are to arise during the assessment proceedings.

Who should attend the programme?

The programme would benefit the Tax Practitioners, Tax Lawyers and Chartered Accountants.

All are Cordially Invited


INTERNATIONAL TAXATION COMMITTEEChairman: Rajesh L Shah | Vice Chairman: Kirit Dedhia, Harshal Bhuta Convenors: Isha A. Shekhri | Ronak Doshi | Kartik Mehta | Advisor: Dilip J. Thakkar

INTERNATIONAL TAXATION COMMITTEEChairman: Rajesh L. Shah | Vice Chairman: Kirit Dedhia, Harshal Bhuta Convenors: Isha A. Shekhri | Ronak Doshi | Kartik Mehta | Advisor: Dilip J. Thakkar

FEMA Study Circle Meeting (For FEMA SC Members Only)Venue: CTC Conference Room, 3, Rewa Chambers, Gr. Floor, 31, New Marine Lines, Mumbai-400 020Subject: Discussion on Master Direction on ECB Regulations with Case studiesSpeaker: CA Mitali PakleChairman: CA Shabbir Motorwala

INTERNATIONAL TAXATION STUDY CIRCLE MEETING (For INT SC Members Only)Venue: CTC Conference Room, 3, Rewa Chambers, Gr. Floor, 31, New Marine Lines, Mumbai-400 020Group Leader: CA Naresh Ajwani

Days & Dates: Wednesday, 18th September, 2019

Thursday, 10th October, 2019

Time 6.00 p.m. to 8.00 p.m.

Day & Date: Wednesday, 11th September,

2019

Time 6.15 p.m. to 8.00 p.m.

The FEMA Study Circle for this academic year would focus on covering some important Master Directions in detail along with its FAQ and suitable case studies to help built understanding of all/some important practical aspects of the Master Direction.

With this background in mind the first in this series of Master Direction to be elaborately covered would be; Discussion on Master Direction on External Commercial Borrowings, Trade Credit, borrowing and Lending in Foreign Currency by Authorised Dealers

and Persons other than Authorised Dealers updated as on August 08, 2019 including FAQ on ECB and Trade Credits updated as on May 29, 2019 and practical case studies. Please note this topic will be covered in two sessions

With a view to understand revised regulations on ECB and Trade Credit and gain perspective on the entire ECB framework we have arranged this meeting for the benefit of the members.

Kindly ensure to pay annual FEMA study circle fees of ` 1,770/- (inclusive of GST) before attending this meeting. If you have not paid the annual membership fees, you can also attend this session by paying ` 200/- (inclusive of GST) per session on the spot at CTC office.

On 12 June 2019, the Indian Government announced its ratification of the Multilateral Instrument (MLI) to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. On 25th June, 2019, India has deposited the Instrument of Ratification to OECD, Paris along with its Final Position on the MLI. MLI will

enter into force for India on 01st October, 2019 and its provisions will have effect on India’s DTAAs from FY 2020-21 onwards.

It has necessary to have a systematic programme to understand MLI and its implications. For this purpose, we have planned a study circle meeting, with the following agenda:

Sr. No. Topics

1. 1. An overview of Multilateral Instrument (MLI) – India Perspective 2. Brainstorming session on how to study MLI in next 6 months, and chart a course of action.


RENEWAL NOTICE – 2019-20Dear Members,

SUB: PAYMENT OF ANNUAL MEMBERSHIP FEES FOR 2019-201st April, 2019

It’s our privilege to have been of service to you over the years. We truly appreciate and value your association. It’s time to renew annual membership and subscription of The Chamber’s Journal, Study Group and Study Circle Meetings and other subscription of The Chamber of Tax Consultants (“The Chamber”). The renewal fees for Annual Membership, Study Group and Study Circle and other Subscription for the financial year 2019-20 falls due for payment on 1st April, 2019. We thank you for your subscription. Your involvement is important and very much appreciated. We hope you will always continue to support The Chamber in its activities and growth as done in the past.

Thanking You,

For the Chamber of Tax Consultants

CA Ketan L. Vajani Hon. Treasurer

Sr. No.

Particulars Fees GST @18% Total

I MEMBERSHIP FEES (YEARLY - RENEWAL)

1 ORDINARY MEMBERSHIP FEES 2,200 396 2,596

2 ASSOCIATE MEMBERSHIP FEES 5,000 900 5,900

3 STUDENT MEMBERSHIP FEES 250 45 295

II CHAMBER'S JOURNAL SUBSCRIPTION - YEARLY (HARD COPIES)

1 JOURNAL SUBSCRIPTION - LIFE MEMBERS 1,200 0 1,200

2 JOURNAL SUBSCRIPTION - NON MEMBERS 2,100 0 2,100

3 JOURNAL SUBSCRIPTION - STUDENT MEMBERS 700 0 700

III CHAMBER'S E-JOURNAL SUBSCRIPTION (SOFT COPIES)

1 E-JOURNAL SUBSCRIPTION - LIFE MEMBERS (YEARLY) 700 126 826

2 E-JOURNAL SUBSCRIPTION - NON MEMBERS (YEARLY) 1,000 180 1,180

3 E-JOURNAL SUBSCRIPTION - STUDENT MEMBERS (YEARLY) 700 126 826

4 E-JOURNAL SUBSCRIPTION - SINGLE JOURNAL 200 36 236

IV ITJ SUBSCRIPTION

1 INTERNATIONAL TAX JOURNAL SUBSCRIPTION 2,000 0 2,000

V STUDY CIRCLES & STUDY GROUPS (RENEWAL)

1 STUDY GROUP (DIRECT TAXES) 2,200 396 2,596

2 STUDY CIRCLE (DIRECT TAXES) 1,750 315 2,065

3 STUDY CIRCLE (INTERNATIONAL TAXATION) 1,500 270 1,770

4 STUDY CIRCLE (INDIRECT TAXES) 2,000 360 2,360

5 STUDY CIRCLE (ALLIED LAWS) 1,500 270 1,770

6 SELF AWARENESS SERIES 600 108 708

7 INTENSIVE STUDY GROUP ON DIRECT TAX 1,750 315 2,065

8 FEMA STUDY CIRCLE 1,500 270 1,770

9 STUDY GROUP ON ACCOUNTING & AUDITING (Refer Note below) 1,800 324 2,124

10 CAPITAL MARKET STUDY CIRCLE (Refer Note below) 1,800 324 2,124

11 PUNE STUDY GROUP 3,500 630 4,130

12 BENGALURU STUDY GROUP 4,200 756 4,956

(Note: 10% Discount applicable for the registration of 3 or more Study Circles & Study Groups) Notes:1. The Managing Council has decided to extend rollover benefit for one year to the Members of the following Study Circles

a) Intensive Study Group on IND-AS (Renamed as Study Group on Accounting & Auditing)b) Capital Market Study Circle

Accordingly those members who have enrolled for these Study Circles in F.Y. 2018-19 need not renew their subscription for F.Y. 2019-20.

2. Members are requested to visit the website www.ctconline.org for online payment.3. Payments should be made by Account Payee Cheque/Demand Draft in favour of “THE CHAMBER OF TAX CONSULTANTS”. Outstation members are requested to send payments only

by “Demand Draft or At Par Cheque”.4. A consolidated Cheque/Draft may be sent for all payments.5. Please also update your Mobile number & e-mail address to ensure receipt of regular updates on activities of The Chamber.6. Please write your full name on the reverse of Cheque/DD.7. Kindly pay your membership fees by 15th September, 2019 for uninterrupted service of the Chamber’s Journal.8. Members are requested to download the Renewal Form from Chamber’s website www.ctconline.org9. Renewal Notices are also sent separately and members are requested to fill up the same and send it to The Chamber’s office along with the cheque. 10. Renewal Notice contains entire information of Members as per CTC database. In case of any change in information of Member as shown in form, kindly provide updated information along

with the form.


UNREPORTED DECISIONS OF TRIBUNAL By Ajay R. Singh, Advocate

1. SECTION 43 READ WITH SECTION 32 – LIQUIDATED DAMAGES RECEIVED FOR DELAY IN DELIVERY BY THE VENDOR, WHETHER LIABLE TO BE REDUCED FROM COST OF ASSETS - SUCH LIQUIDATED DAMAGES ARE NOT TO BE REDUCED FROM THE COST OF ASSETS –

The assessee for purchase of buses placed order worth ` 654,62,81,543/- with the condition that for delay in delivery, the supplier would be liable for penalty/liquidated damages and on that account the assessee received a sum of ` 120,11,78,279/- from M/s. Ashok Leyland Ltd. According to the assessee, this amount has to be reduced from the purchase of the business to calculate the depreciation. On this premise. AO held that the value of the bus was only ` 534,51,03,270/- and the assessee is entitled for depreciation on this amount only and, therefore, disallowed the balance of depreciation to the tune of ` 18,01,76,741/- and added it to the income of the assessee. The. CIT(A) considered the case of the assessee in the light of the decision of the Hon’ble Gujarat High Court in the light of the decision of the Hon’ble Gujarat High Court in the case of Digvijay Cement Co. Ltd. vs. CIT (1982) 138 ITR 45 (Guj) wherein it was held by the Hon’ble High Court that having regard to the nature of the business of the assessee in the light of the terms of contract in respect of the provision for compensation for a delay in delivery, the sum received through compensation was not made with the intention of reducing the cost of machinery but to compensate the loss of profits which the assessee would suffer on account of delay in delivery of the machinery. Admittedly, the assessee in the case in hand is the transport corporation earning income by plying the buses. In case of delay in delivery the assessee would suffer loss on profits and that is the reason there was a stipulation in the agreement for purchase of buses to the effect that delay in delivery shall result in levy of penalty/liquidated damages . On this account, assessee received a sum of ` 120,11,78,279/- and having regard to the business of the assessee, this compensation received is not to reduce the cost of the buses but to compensate the loss of income/profits the assessee would have earned had the buses been supplied in time. Therefore, the decision of the Gujarat High Court

in the case of Digvijay Cement Co. Ltd. (supra) is applicable to the facts of this case on all fours and the ld. CIT(A) had rightly deleted the addition by following the binding precedent. In the result, appeal of the revenue is dismissed

DCIT vs. Delhi Transport Corporation (ITA No. 6658/D/15) (Dated 16/07/2019)

2. S. 56(2)(viib) - THAT AS PER CLAUSE (b) AND CLAUSE (j) OF RULE 11UA FOR COMPUTING FAIR MARKET VALUE OF THE SHARES THE VALUE OF THE ASSETS AND LIABILITIES AS STATED IN THE AUDITED BALANCE SHEET IMMEDIATELY PRIOR TO THE RECEIPT OF CONSIDERATION SHOULD BE ADOPTED.

A perusal of the Rule 11U(b) as reproduced by CIT(A) at para 5.6 of his order makes it clear that the balance sheet means the balance sheet as drawn up on the balance sheet date which has been audited by the auditor of the company and where the balance sheet on the valuation date has not been drawn up the balance sheet drawn up as on a date immediately preceding the valuation date which has been approved and adopted in the AGM of the shareholders of the company.

We find in the instant case, on the date of receipt of the consideration the balance sheet of the assessee company was not drawn up as the same was drawn up only on 31st July, 2014 which is evident from the audited balance sheet filed. Clause (b) and clause (j) of Rule 11UA makes it clear that for computing fair market value of the shares the value of the assets and liabilities as stated in the audited balance sheet immediately prior to the receipt of consideration should be adopted. If, on the date of receipt of the consideration, the balance sheet was not drawn up, then, the balance sheet drawn up as on a date immediately preceding the valuation date should be adopted i.e., the balance sheet of the immediately preceding year should be adopted. We find, in the instant case, on the valuation date i.e., on 31.03.2004, the balance sheet was not drawn up by the auditor as audited financials were drawn up only on 31st July, 2014 and, therefore, the valuation of assets and liabilities in the balance sheet of the immediately preceding year i.e., 31.03.2013 should have been adopted. Since the valuation done by the assessee was not in accordance with the Rule framed for valuation of


UNREPORTED DECISIONS (SERVICE TAX) By Vinay Jain & Sachin Mishra, Advocates

1. Whether demand of service tax on ‘surrender charges’, which are deducted from the fund value as per policy provisions for pre-mature withdrawal from the ULIP scheme is taxable under the category of ‘Management of Investment under ULIP Service’?

Facts and Pleading: Max Life Insurance Co. India Limited (hereinafter referred to as ‘Appellant’) is in the business of life insurance and provides several products which are broadly classifiable into term plan product, Unit Link Insurance Product (ULIP) etc. Sometimes the policy holder or the insurer opts for pre-mature termination of the policy. In such case, the Appellant levies surrender charges, which is deducted from the fund value or the benefit value accrued in the policy.

For the period 01.10.2008 to 30.06.2010, the department has demanded service tax on surrender charges levied on the surrender of ULIP policy on the count that the surrender charges are nothing but unrecovered expenses as on the date of surrender, which the insurance companies (i.e. the Appellant) had already incurred towards procurement, administration of the ULIP policy and incidental thereto. As regard, the period 01.07.2010 to 30.04.2011, there is no demand. For the period 01.05.2011 to 30.06.2012, the department has demanded service tax on surrender charges under ‘Life Insurance Service’. The department further alleged that surrender charges are similar to pre-closure/fore-closure charges levied by a banker, at the time of fore-closure of loan and hence, taxable.

The Appellant argued that surrender charges do not have any nexus with the provision of service as it is levied on the policyholder for surrender of the ULIP policy. Further, the Appellant submitted that event on which this amount is payable is an act of discontinuance of service and not an act of management of investment under ULIP and hence, not taxable. In this regard, the

Appellant also relied upon Reliance Life Insurance Company Ltd. vs. CST, Mumbai-II-2018-TIOL-1308-CESTAT-MUM and Sriram Life Insurance Company vide Final Order No. A/30187-30189/2019 (Hyderabad) dated 08-02-2019. For the demand for period 2011-12, the Appellant submitted that when there was no change in the coverage of ULIP Management, when surrender charges are related only to ULIP and when surrender charges are accepted to be not taxable under 65(105)(zzzzf) of the Finance Act, 1994, service tax cannot be demanded on surrender charges under ‘Life Insurance Service’. The Appellant submitted that doing so would lead to redundancy of Section 65(105)(zzzzf) of the Finance Act, 1994.

Judgment: The Hon’ble Appellate Tribunal after duly considering the submission of both the sides, held that in view of the Clause (ii) in Explanation to Section 65(105)(zzzzf) of the Finance Act, 1994, service tax is leviable only on the management fee or charges which are either fixed by IRDA or actually levied by the insurer, whichever is higher and hence, service tax is not leviable on surrender charges. The Hon’ble Appellate Tribunal set aside the demand for the period 2011-12 on the count that there was no substantial change in the legislation for the said period and even the department did not demand service tax on surrender charges for the period 2011-12. The Hon’ble Appellate Tribunal further observed that it has also been clarified by the CBEC vide TRU No. 334/1/2010, that the charge pertaining to asset management alone should form the value for taxation in case of ULIP policy. Accordingly, the Hon’ble Appellate Tribunal held that as surrender charges are in the nature of penalty, no service tax can be leviable on the same.

M/s. Max Life Insurance Co. India Limited. Vs. CCE, New Delhi, CESTAT, New Delhi, decided on 21-8-2019 in the Final Order No. 51097/2019.

Note : THE WHOLE DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG UNDER SEMINAR PRESENTATIONS - UNREPORTED DECISIONS

unquoted shares i.e., the assessee has not taken the value of assets before introduction of share capital received through fresh allotment and since the Assessing Officer has correctly determined the valuation of the unquoted equity shares which has been upheld by the CIT(A),

therefore, the same is upheld and the grounds raised by the assessee are dismissed.

Sadhvi Securities P. Ltd vs. ACIT (ITA No.1047/Del/2019) (Dated : 16.07.2019)


Note : THE WHOLE DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG UNDER SEMINAR PRESENTATIONS - UNREPORTED DECISIONS

2. Whether the acquisition of land made by the Appellant for setting up of the Thermal Power Plant by the Joint Venture (JV) Company is to be considered as ‘Renting of Immovable Property Service’ for ‘transfer of surface rights’? Whether the 51% equity stake which has been granted to the Appellant by the Implementation Agreement, in the JV Company, could be treated as “Business Auxiliary Service”? and Whether deployment of officers in the JV Company, would amount to rendition of service under the category of “Business Auxiliary Service”?

Facts and Pleading: Rajasthan State Mines & Minerals Limited (hereinafter referred to as ‘Appellant’) is Government of Rajasthan Undertaking formed under Companies Act, for development and extracting mines and minerals etc. in the State. The Appellant formed a Joint Venture (JV) Company named Barmer Lignite Mining Co. Limited with Raj West Power Limited for carrying out lignite mining in Barmer with 51:49 of equity share respectively. As per the agreement, the Appellant acquired land for setting up of a thermal power plant by the JV Company. The property was initially supposed to be transferred to the JV Company, however, the said transfer was later on withdrawn by the Government. The Appellant also deployed its officers in the JV Company and recovered related expenditure from JV Company on cost to cost basis.

The department alleged that the acquisition of land made by the Appellant for setting up of the Thermal Power Plant by the JV Company is to be considered as ‘Renting of Immovable Property Service’ for ‘transfer of surface rights’. The Department also alleged that the 51% equity stake which has been granted to the Appellant by the Implementation Agreement, in the JV Company, could be treated as “Business Auxiliary Service” (‘BAS’). The Department further alleged that the deployment of officers in the JV Company by the Appellant would amount to rendition of service under the category of BAS on the pretext of giving technical knowledge and other expertise.

The Appellant submitted that acquisition of land made by Appellant for setting up of Thermal Power Plant by JV Company is not renting of immovable property

rather it is assignment of land. Further, the Appellant submitted that ‘transfer of surface right’ is incidental to the mining activity undertaken by the JV Company and hence not taxable under ‘Renting of Immovable Property Service’. The Appellant also submitted that renting of vacant land for mining activity is specifically excluded from the definition of ‘Renting of Immovable Property Service’. The Appellant submitted that the 51% equity stake of the Appellant in the JV could not be treated as BAS, as the Appellant has not provided any promotion, marketing, sale, etc. to JV Company. Further, Appellant submitted that deployment of officers to JV Company by Appellant would not amount to rendition of service under category of BAS as amount recovered by them are on actual basis.

Judgment: The Hon’ble Appellate Tribunal held that ‘surface right’ emerges out from the mining operations as ‘incidental activity’. The main activity remains ‘mining activity’, which is nothing but ‘benefit arising out of land’. Therefore, same cannot be held to be ‘service’ per se. The Hon’ble Appellate Tribunal set aside the demand of service tax on 51% equity stake granted to Appellant in the JV, under BAS on the count that the department failed to specify the exact entry of BAS under which the same was covered. Hon’ble Appellate Tribunal further held that 51% equity share is like ‘royalty’ which cannot be considered as ‘consideration’ for rendering of any service because it is Appellant’s share of revenue arising out of the JV. Reliance was placed on Mormugao Port Trust vs. Commissioner of Cus., C. Ex. & S.T. Goa -2017 (48) STR 69 (Tri. Mumbai) affirmed by Hon’ble Supreme Court in 2018 (19) GSTL J118 (S.C.). The Hon’ble Appellant Tribunal held that the expenses recovered by the Appellant on actual basis from JV Company, towards deputation of their employee and related expenses, cannot be categorized under the category of BAS. The Hon’ble Appellant Tribunal further held that even otherwise the deputation of employees in the JV company cannot be treated as taxable service under BAS. Reliance was placed on Punj Llyod Ltd. Vs. CST, Delhi-2019 (22) GSTL 85 (Tri. Del.).

M/s. Rajasthan State Mines & Minerals Limited v. CCE, CESTAT, New Delhi, decided on 21-8-2019 in the Final Order No. 51098/2019.


Follow us on:

If undelivered, please return to :

Non-receipt of the CTC News must be notified within one month from the date of publication, which is 1st of Every Month.

Printed by Shri Kishor Dwarkadas Vanjara and published by him on behalf of The Chamber of Tax Consultants (owners), 3, Rewa Chambers, Ground Floor, 31, New Marine Lines, Mumbai-400 020 and Printed at The Great Art Printers, 25, S. A. Brelvi Road, Unique House Opp, Apurva Restaurant, Next to Poddar Chambers, Ground Floor, Fort, Mumbai-400 001. and published at The Chamber of Tax Consultants (owners), 3, Rewa Chambers, 31, New Marine Lines, Mumbai 400 020.

Editor : Shri Kishor Dwarkadas Vanjara

To

3, Rewa Chambers, Ground Floor, 31 New Marine Lines, Mumbai 400 020

Tel.: 2200 1787 / 2209 0423 / 2200 2455 E-mail : [email protected] l Visit us at : www.ctconline.org

WhatsApp No.: 9004945579 FB Page: https://www.facebook.com/ctcconnect

THE CHAMBER OF TAX CONSULTANTS

Posted at Mumbai Patrika Channel Sorting Office-Mumbai 400 001.

Date of Publishing 1st of Every Month Date of Posting : 1st & 2nd September, 2019

Registered with Registrar of Newspaper for India under R. NO. MAHENG/2015/67505 Posted at Mumbai Patrika Channel Sorting Office, Mumbai-400 001. Postal Registration No. MCS/210/2019-21 Date of Posting : 1st and 2nd of every month Date of Publishing : 1st of Every Month

the ctc news | september 2019 1€¦ · 19 11-10-2019 direct taxes lecture meeting on “tackling...

Documents