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EIRC NEWSLETTERVOL: 40 ISSUE: 3 27TH APRIL 2014 RS. 10/-
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
EASTERN INDIA REGIONAL COUNCIL
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EIRC April 2014 03
CA Subhash Chandra SarafChairman, EIRC
,,Inspire,,Aspireto
My Dear Professional Colleagues,
Wishing you most and more…
I also wish you a successful new financial 2014-15.
I really do not know as to on what to lay more stress on for us professionals – the upcoming elections or the recently enacted Companies Act 2013. Both have rocked our nation.
Whereas in the General Elections, the talk is all about the ‘Ab ki baar Modi sarkar’, which expectedly will deliver a scorcher and in a way it is expected to be really good for the nation, as I personally believe that with him coming into power, DTC, GST& IND AS implementation alsowill catch up the much needed momentum and will be implemented very soon throwing freshchallenges and opportunities for the Chartered Accountant fraternity. The need, therefore, is that we professionals have to remain INSPIRED for the ASPIRING opportunities
Coming to the Companies Act 2013, whether this is a dream or a nightmare is still unascertained. With some of the provisions being branded as draconian and full of profanity, the act does bring in new dynamics and transparency in the way companies operate and report. The ripples are felt more from the private companies that enjoyed lots of exemptions and privileges under the erstwhile act, which have been literally scraped off from them. While the extent of the impact will manifest in time to come, we at our end will have to remain prepared for implementing changes to the clients.Keeping this thought in mind,“Corporate Law Conclave- One” was organized on 18th& 19th April, 2014 and the Second Conclave has been planned for 23rd& 24th May to enlighten professionals of this Gargantuan Act.
I had the privilege of presenting the conceptual and present issues concerning member, students and profession at the All Chairmen’s meet with our President and Vice President at Delhi on 16th April, 2014 and I am happy that all the issues have received proper attention and they will be taken up at proper forum soon by the central council.
Our President met Mr. Sanjay Mitra, Chief Secretary of the West Bengal Government on 25th April, 2014 and submitted him representation where Chartered Accountants can assist the government in better tax compliances, accounting matters, regulatory compliance and funds management of the State government and he assured to look into the matters through his various departments. A copy
of the representation has been hosted on our regional council website.
EIRC have also hosted ‘Directors & CEO conclave’ for the first time to connect with the industry leaders to apprise them of the duties and liabilities of the Directors, CEOs and KMPs covering the relevant portions of the Companies Act 2013 which was well received by the industry leaders who attended.
Indirect taxation has assumed greater proportion of the tax collection of the government kitty and in order to help understand the criticality in the service tax regime, we hosted “Seminar of Service Tax” wherein Sri CM Chandolia -IRS, Commissioner of Service Tax was Chief Guest and he assured that department is ready to help professionals and assesses for better tax compliances and he further assured that any administrative difficulty in the department will be addressed immediately for the benefit of the assesses and professionals once brought to the notice of the department .
In the new era of technological development, wherein even the New Companies Act 2013 has also duly acknowledged the power of technology, I am pleased to announce that a Seminar on ‘Data Analytics & BusinessIntelligence Tools & Techniques’ will be held on 2nd of May 2014. I would appeal to all the members to attend this event as automation is the call of the day and this is the way forward not just for audit but also as a tool to enable us in becoming the valued partners of our clienteles.
With the end of bank audits, come the bigger version of statutory audits, and working on the same keeping in foresight the new Companies Act 2013we should ‘Flow with the flow’ in embracing the change.
I would like to wish all my fellow members sincere wishes and efforts in discharging their attestation functions.
I am with you and for you always...
With Warm Regards
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DAY AND DATE KNOWLEDGE SESSION RESOURCE COORDINATOR VENUE DURATION CPE DELEGATE PERSON HOURS FEES `
EIRC
DAY & DATE PROGRAMME DETAILS VENUE TIMEThursday, 15th May 2014 Rabindra Jayanti Celebration : A Cultural Evening G D Birla Sabhaghar 5.30 pm onwards
Important Dates
Thursday, Domestic Transfer Pricing CA Sachin Agarwal,EY CA Anirban Datta R Singhi Hall, 5:30pm to 3 150 1st May 2014 CA Amit Poddar,EY EIRC Premises 8.30pm
Friday, Data Analytics & Business CA. G.Kalyan Kumar, EIRC R Singhi Hall, 2:30pm to 6 500 2nd May 2014 Intelligence Tools & Techniques Bangalore EIRC Premises 8.30pm Spot 600 Online 450
Tuesday, Financial Due Diligence CA Ananth Kumar Subramanian, CA Sunil Sahoo R Singhi Hall, 5:30pm to 3 150 6th May 2014 KPMG, Mumbai EIRC Premises 8.30pm
Friday, Limited Liability Partnership Mr. D Bandyopadhyay, ROC CA Manish Goyal R Singhi Hall, 5:30pm to 3 150 9th May 2014 CA Shashi Agarwal EIRC Premises 8.30pm
Saturday, Seminar on Direct Taxes Details inside in Page 8 EIRC Park Hotel 9.30am to 6 1000 10th May 2014 5.00pm Spot 1200 Online 900*
Tuesday, Related Party Transactions & CA Manoj Banthia CA Ranjeet R Singhi Hall, 5:30pm to 3 150 13th May 2014 Provision Related to Private Company Kumar Agarwal EIRC Premises 8.30pm Spot 200 under the Companies Act 2013
Tuesday, NBFC Compliances Mr.Kishore Pariyar, DGM,RBI CA Pramad Dayal R Singhi Hall, 5:30pm to 3 150 20th May 2014 CA Manoj Banthia Rungta EIRC Premises 8.30pm Spot 200
Wednesday, Critical Analysis of Sec 263 & CA Manoj Tiwari CA Anirban Datta R Singhi Hall, 5:30pm to 3 150 21st May 2014 Disallowance of Expenditure u/s 40(a)(ia) CA Pawan Agarwal EIRC Premises 8.30pm Spot 200 of the Income Tax Act 1961
Friday, Corporate Law Conclave -Two Details inside in Page 7 EIRC Hotel Lalit 10.00am to 12 2500 23rd May & Great Eastern 5.00pm 1500 Per Day Saturday, Online 2400 24th May 2014 Spot 3000
Tuesday, Whistle Blower Policy & CA Suveer Khanna,KPMG CA Mainsh Goyal R Singhi Hall, 5:30pm to 3 150 27th May 2014 Forensic Audit EIRC Premises 8.30pm Spot 200
Tuesday, Section 185/186/188 of the Dr. (CA) Debasish Mitra CA Sunil Sahoo R Singhi Hall, 5:30pm to 3 150 3rd June2014 Companies Act 2013 Past Chariman, EIRC EIRC Premises 8.30pm Spot 200
Friday, Effective Concurrent Audit of Banks CA K.Kanagaraj CA Ranjeet R Singhi Hall, 5:30pm to 3 150 6th June 2014 Antonysamy, Chennai Kumar Agarwal EIRC Premises 8.30pm Spot 200
Tuesday, Audit, Accounts and NAFRA under CA Krishanu Bhattacharyya CA Pramod R Singhi Hall, 5:30pm to 3 150 10th June 2014 Companies Act 2013 Past Chairman, EIRC Dayal Rungta EIRC Premises 8.30pm Spot 200
*Note : 1. Please note Online registration closes 1 days before the day of the Seminar 2.Spot Registration will be taken subject to availability of seats at the venue.
Forthcoming Programme
Branch Day & Date Programme Speakers Co- ordinator Venue Duration CPE HourSiliguri Saturday Study Circle Meet CA Yogesh Agarwal CA.Sanjay Das ICAI Bhawan 4.00pm to 2 Branch 3rd May 2014 on VAT & CST 9434166701 Teenbatti More 6.00pm [email protected] SiliguriSiliguri Saturday Seminar on Auditing CA.Lalit Kumar,Delhi CA.Vivek Agarwal ICAI Bhawan 10.00am to 6 Branch 17th May 2014 Standards CA.Saubik Sarkar,Kolkata 9800861234 Teenbatti More 1.00pm, 2.00pm (Organised by the Auditing & [email protected] Siliguri to 5.00pm Assurance Standards Board , ICAI )Siliguri Saturday Seminar on Service CA. Atul Kumar Gupta, Delhi CA.Naresh Agarwal ICAI Bhawan 12.00pm to 6 Branch 24th May 2014 Tax Laws (Chairman, Indirect Tax 9832065335 Teenbatti More 6.00pm Committee, ICAI ) [email protected] Siliguri Eminent Speaker
BRANCHES
EIRC April 2014 05
Study Circle Day & Date Programme Speakers Co- ordinator Venue Duration CPE HourVitta Salahkar Friday Issue of Shares & Securities CS.Manoj Banthia CA.Hari Ram Agarwal Barabazar Library 5.00pm to 3 Chartered 2nd May, 2014 by Unlisted companies 098308 68717 98306 30386 Bhawan 10/1/1 8.00pm Accountants under Companies Act 2013 [email protected] [email protected] Syed Salley Lane, Study Circle-EIRC & rules made there under KolkataVitta Salahkar Saturday Impact of Companies Act, CA.Ranjeet Kr. Agarwal CA.Adesh Kr. Jain Barabazar Library 4.00pm to 3 Chartered 3rd May, 2014 2013 on Small and unlisted 09830140211 094333 86939 Bhawan 10/1/1 7.00pm Accountants Study Pvt Cos-Restrictions, Prohibi- [email protected] [email protected] Syed Salley Lane, Circle-EIRC tions, Fines and Prosecutions KolkataACAE CPE Chartered Wednesday Lecture Meeting on Issues CA.Rishi Khator CA Ram Ratan Modi Emami Conference 5.00pm to 3 Accountants Study 7th May 2014 Surrounding Conversion 9830080506 Hall, 6, Lyons Range, 8.00pm Circle-EIRC to LLP [email protected] Kolkata [email protected] Howrah Chartered Saturday, Companies Act & Rules CS Mamta Binani CA Ashok Kumar Samanta Sarat Sadan, 4.00pm to 4 Accountants Study 10th May 2014 2013 CMA Mritunjay 9830455775/ Howrah 8.30pm Circle-EIRC Acharjee 9331015775ACAE CPE Chartered Thursday Lecture Meeting on Latest CA. Barun Kr. Ghosh CA Ram Ratan Modi Emami Conference 5.00pm to 3 Accountants Study 15th May 2014 Important Judicial Pronounce- CA. S S Gupta 9830080506 Hall, 6, Lyons Range, 8.00pm Circle-EIRC ments under the IT Act & [email protected] Kolkata Cash Credit u/s 68 of IT Act [email protected] ACAE CPE Chartered Thursday Lecture Meeting on Audit – CA.Sanjay Agarwal CA Ram Ratan Modi Emami Conference 5.00pm to 3 Accountants Study 22nd May 2014 Auditors and Auditor’s Sr. Manager, 9830080506 Hall, 6, Lyons Range, 8.00pm Circle-EIRC Report S R Batliboi & Co., [email protected] Kolkata Kolkata [email protected]
STUDY CIRCLES
Forthcoming Programme
Guwahati Saturday, Companies Act - 2013 Eminent Speakers CA. Rohit Agarwala ICAI Bhawan 10.00am to 6 Branch 17th May, 2014 9435058514 Manik Nagar, 5.00pm [email protected] GuwahatiGuwahati Saturday, I. T Workshop CA. Anil Kumar Agarwala CA. Rohit Agarwala – 10.00am to 6 Branch 24th May, 2014 Guwahati 9435058514 5.00pm CA. Vivek Jain Guwahati [email protected] Guwahati From 06-06-2014 to Residential Programme at Eminent Speakers CA. Rohit Agarwala ICAI Bhawan – 12 Branch 08-06-2014 Kaziranga, Assam (World 9435058514 Manik Nagar, Heritage Site) [email protected] GuwahatiGuwahati 14/15; 21/22; 28/29 Certificate Corse on Eminent Faculties CA. Rohit Agarwala ICAI Bhawan 10.00am to 36 Branch June 2014 Concurrent Audit 9435058514 Manik Nagar, 5.00pm [email protected] Guwahati (Each Day)Rourkela Saturday Seminar on “Fixed Assets CA MKL Chand CA Rakesh Mohan Bagri 2nd Fl, Unitech 5.30pm to 3 Branch 17th May 2014 AS-10 & Schedule-II to 9437041369 House, Uditnagar, 8.30pm the Companies Act’2013” [email protected] RourkelaRourkela Saturday Seminar on “Penalties & CA B.D Shivhare , CA Rakesh Mohan Bagri 2nd Fl, Unitech 5.30pm to 3 Branch 24th May 2014 prosecution under Income CA Anand Agarwal 9437041369 House, Uditnagar, 8.30pm Tax Act [email protected] RourkelaRourkela Saturday Seminar on “Service Tax” CA Atul Gupta CA Rakesh Mohan Bagri Hotel Mayfair 9.30am to 6 Branch 31st May 2014 9437041369 Rourkela 5.30pm [email protected] Saturday Seminar on Companies Eminent Speakers CA Seshadev Mishra – – 3 Branch 3rd May, 2014 Act,2013 9439041843 [email protected] Saturday Seminar on Companies Eminent Speakers CA Seshadev Mishra Sheela Towers 9.30am 6 Branch 31st May, 2014. Act,2013 9439041843 [email protected] Monday, Seminar on 10 strategies CA. V. Pattabhiram, CA. Partha Sarathi Mishra, ICAI Bhawan, Plot 3 Hrs 3 Branch 5th May , 2014 for wealth creation Chennai 9776044824, No-A/122/1, Nayapalli, [email protected] Bhubaneswar Bhubaneswar Saturday, Workshop on IT (Bank Audit CA. D.S. Premnath CA. Partha Sarathi Mishra, ICAI Bhawan, Plot 6 Hrs 5 Branch 10th May, 2014 under CBS environment- 9776044824, No-A/122/1, Nayapalli, concurrent audit) [email protected] BhubaneswarBhubaneswar Wednesday & Thursday, Two Days Seminar on Eminent Speakers CA. Partha Sarathi Mishra, ICAI Bhawan, Plot 12 Hrs 12 Branch 28th & 29th May, 2014 Service Tax 9776044824, No-A/122/1, Nayapalli, [email protected] BhubaneswarCuttack Friday Seminar On Eminent Speakers CA. Pawan Udaypuria – 4 pm 4 Branch 9th May 2014 Information Technology. 9937166049
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Dear Students,
Conceive, Believe, Achieve!
April is here and I’d like to wish all the students and my peers in the CA Fraternity a Happy New Year! Because our new year starts from 1st April and ends at 31st March. And speaking of beginnings and endings, I’m aware of the pressures that
you students have been going through – completing the books of accounts, uploading returns, going on audits, along with managing your studies. But as they say, it takes pressure and intensity to make a diamond….So remember that you are a DIAMOND in the making!
And to hone your qualities EICASA took few steps towards shaping your future by conducting many events this month like the Seminar on Bank Audit, Crash course on Cost Accountancy, Seminar on How to Pass CA Exam and Crash Course on Accounting Standards. The response that we got from the students was overwhelming and the rapt attention with which they were listening to the speakers was enough to let us know that our efforts had paid off.
Motivated and eagerly anticipating an even greater response from Your side, EICASA has planned even more activities that you can take part in for your benefit and use to your full advantage:
Date Topic
29th April, 2014 Crash Course on Costing (final)
3rd & 4th May, 2014 Crash Course on Accountancy by Mr. S. Prasad Sir.
6th to 10th May, 2014 Crash Course on Direct and Indirect Taxation by Durgesh sir.
11th – 15th June, 2014 Industrial Visit
26th – 27th July, 2014 National Student’s Convention
It is my humble appeal to all the students to participate and enrich yourselves with the knowledge that the speakers are waiting to impart. EICASA goes out of the way to collaborate with the best speakers and these speakers, in turn, give out their pearls of wisdom which made them reach where they are now. By attending their seminars, you will have nothing to lose but have so much to gain, more than you might ever have bargained for.
Industrial visits and Student’s Conventions will help you broaden your perspective and students preparing for their exams can immensely benefit from the Crash Courses. The lessons imparted by the eminent speakers shall surely help you prepare better for your exams. So get yourself enrolled as fast as you can before the seats get filled up as it’s a First Come, First Serve basis.
Before I sign off, I’d like to say – Faith Is Why I’m Here and Faith Is Why I Made It Through. And Faith is what you must have in order to steer past the rocks that Life throws at you. Have Faith in Yourself and Faith in God. Change the way you look at things and the things you look at, Change!
When something seems difficult, dare to do it anyway. When life seems to beat you down, dare to fight back. When you are feeling tired, dare to keep going. When the day has ended, dare to feel as you’ve done your best. Dare to be the best you can. At all times, Dare to be! And at the end of the day, let there be no excuses, no explanations, no regrets. One day, in retrospect, the years of struggle will strike you as the most beautiful.
Don’t be afraid of your fears. They are there to scare you. They’re there to let you know that something is worth it. And never, never give up on your dreams! To further emphasize this, Langston Hughes has beautifully penned these lines,
“Hold fast to dreams,
For if dreams die,
Life is a broken winged bird,
That cannot fly.”
Looking forward to your views and / or suggestions for improvement, correction or modifications in student activities and specially EICASA activities. Suggestions for the betterment and upliftment of the EICASA are also heartily welcome, all of which you may send directly to me at [email protected] while marking a copy to [email protected].
Looking forward to an eventful journey.
With Best Wishes,
CA Pramod Dayal RungtaChairman, EICASA
Vice Chairman, EIRC
EICASA
CA Niraj Harodia conducting Bank Audit Seminar on 28.03.2014
Prof. Dilip Shah conducting seminar on “How to pass CA exam”
CA.Arijit Chakrobarty conducting seminar on “How to pass CA exam”
EIRC April 2014 07
CORPORATE LAW CONCLAVE - TWOOrganised by
Corporate Laws & Corporate Governance Committee, ICAI
Hosted by
Eastern India Regional Council
The Institute of Chartered Accountants of IndiaVenue: Hotel Lalit Great Eastern
Dalhousie Square, Kolkata Time : 10.00 am to 5.00 pm
PROGRAMME
Day –I – Friday 23rd May 2014
Inaugural Session Chief Guest: Dr. Navrang Saini, Regional Director (Eastern Region), Ministry of Corporate Affairs Address By : CA Subodh Kr. Agrawal, Past President, ICAI Address By : CA S. Santhanakrishnan, Chairman, CL & CGC, ICAI Address By : CA Abhijit Bandyopadhyay, Member, CL & CGC, ICAI
Knowledge Session – I
TOPICS SPEAKERS
Accounts, Audit & Auditor’s responsibility – CA Amarjit Chopra, Past President, ICAI Practical perspective
Knowledge Session – II Issues & Challenges for SME / Private CA Ganesh Balakrishnan, Hyderabad
Companies in the new Act
Intricacies & Interpretation of the Rules under the Companies Adv. LVV Iyer, Hyderabad Act 2013 with special insights of the Section 185.
Day –II – Saturday 24th May 2014
Knowledge Session - III
PANEL DISCUSSION PANELIST
‘Perceived Benefit – Challenges & Way CA Khushroo B Panthaky, Mumbai forward with the Companies Act, 2013’ CA Vinod Kothari, Kolkata Adv. LVV Iyer, Hyderabad CA Abhijit Bandyopadhyay, Member, CL & CGC, ICAI
Section 185/186/188 of the new Act: CA. Vinod Kothari, Kolkata Critical Analysis & way for Compliance
Knowledge Session - IV Gearing up for the new Regime – Opportunities & CA P R Ramesh, Mumbai
Challenges for professionals & Corporates
12 CPE
` 2500` 1500 per day` 2400 Online` 3000 Spot
Fees
Announcements
DD/Pay order/Cheque for seminars should be drawn in favour of ‘The Institute of Chartered Accountants of India-EIRC‘. Please mention your name, membership number and contact details at the back of the cheque/demand draft.
Registration on First Come, First Served Basis. For further details & information, please contact:Phone: 30211104, 30211133/34, E-mail: [email protected], Visit: www.eircicai.org
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SEMINAR ON DIRECT TAXESOrganised by : Direct Taxes Committee of ICAI
Hosted by : Eastern India Regional CouncilThe Institute of Chartered Accountants of India
Date: Saturday 10th May 2014 Venue: Park Hotel, Kolkata Time : 10.00 am to 5.00 pm
Inaugural Session Chief Guest : Shri G. N. Pande, IRS, Principal Chief Commissioner (Income Tax), W.B.*
Knowledge Session – I TOPICS SPEAKERS Assessment of Societies, Cooperative Societies, Dr. (CA) Girish Ahuja, Delhi Private & Charitable Trust, Other AOPs & BOI
Knowledge Session – II Section 263: Powers & Implications with special reference to CA K K Chaitanya, Bangalore the Addition under Section 68 towards Share Capital
Knowledge Session - III Search & Seizure – Critical Issues Dr. (CA) Rakesh Gupta, Delhi
Knowledge Session - IV TDS – Recent Developments CA Gautam Nayak, Mumbai*Confirmation Awaited
Announcements
6 CPE` 1000` 900 Online` 1200 Spot
Fees
EIRC April 2014 09
e-Services
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Compiled by CA RAJ SINGHANIA [email protected].
1. CIT vs. Calcutta Knitwears (Supreme Court)
S. 158BC/ 158BD: Law on how & when “satisfaction” has to be recorded by AO to attain jurisdiction over non-searched person explained
A search u/s 132 was carried out in the premises of the Bhatia Group on 05.02.2003 and certain incriminating documents pertaining to the assessee firm were found. The assessment on the Bhatia group was completed on 30.03.2005. Thereafter, on 15.07.2005, the AO recorded his “satisfaction” that the seized papers revealed the undisclosed income of the assessee and the said papers were passed on to the AO of the assessee for making an assessment u/s 158BC read with s. 158BD. The assessee argued that the proceedings initiated again him were invalid as the said “satisfaction note” was prepared after the proceedings in the case of the searched party were completed. The AO and CIT(A) rejected the assessee’s claim though the Tribunal and the High Court upheld it. The Tribunal & High Court held that as the recording of satisfaction by the AO as contemplated u/s 158BD was on a date subsequent to the framing of assessment u/s 158BC in case of the searched person, that is, beyond the period prescribed u/s 158BE(1)(b), the notice issued u/s 158BD was belated and consequently the assumption of jurisdiction by the AO in the block assessment was invalid. On appeal by the department to the Supreme Court, HELD by the Supreme Court allowing the appeal:
(i) While it is true that before initiating proceedings u/s 158BD, the AO who has initiated proceedings for completion of the assessments u/s 158BC should be satisfied, on the basis of cogent and demonstrative material, that the seized documents belong to a person other than the searched person, the said satisfaction note could be prepared by the AO either at the time of initiating proceedings for completion of assessment of a searched person u/s 158BC or during the stage of the assessment proceedings. It does not mean that after completion of the assessment, the AO cannot prepare the satisfaction note to the effect that there exists income tax belonging to any person other than the searched person. The language of the provision is clear and unambiguous. The legislature has not imposed any embargo on the AO in respect of the stage of proceedings during which the satisfaction is to be reached and recorded in respect of the person other than the searched person. Further, s. 158BE(2)(b) only provides for the period of limitation for completion of block assessment u/s 158BD in case of the person other than the searched person as two years from the end of the month in which the notice under this Chapter was served on such other person in respect of search carried on after 01.01.1997. The said section does neither provides for nor imposes any restrictions or conditions on the period of limitation for preparation the satisfaction note u/s 158BD and consequent issuance of notice to the other person;
(ii) The result is that for the purpose of s. 158BD a satisfaction note is sine qua non and must be prepared by the AO before he transmits the records to the other AO who has jurisdiction over such other person. The satisfaction note could be prepared at either of the following stages: (a) at the time of or along with the initiation of proceedings against the searched person u/s 158BC of the Act; (b) along with the assessment proceedings u/s 158BC of the Act; and (c) immediately after the assessment proceedings are completed u/s 158BC of the Act of the searched person.
Comment : Supreme Court clears the ambiguity on the period of limitation for issue of notice u/s 158BD in favour of department.
2. Om Prakash Dhoot vs. UOI (Rajashthan High Court)
S. 234E: High Court issues notice to Government on challenge to notices for levy of fee for failure to file TDS statement. Recovery of fee is subject to outcome of Petition.
S. 234E of the Income-tax Act, 1961 inserted by the Finance Act, 2012 provides for levy of a fee of Rs. 200/- for each day’s delay in filing the statement of Tax Deducted
Recent Judicial Pronouncements- Direct Tax
at Source (TDS) or Tax Collected at Source (TCS). A Writ Petition to challenge the validity of s. 234E has been filed in the Jodhpur Bench of the Rajasthan High Court. Vide an order dated 15.04.2014 the High Court has directed that notice should be issued to the CBDT and the UOI as to why the Petition should not be accepted. It has also been held that in the meanwhile, if any recovery is made from the Petitioner, that shall be subject to the final decision of the Writ Petition.
Comment : Lets wait for the reply from CBDT.
3. CIT vs. M/s Atul Intermediates (Gujarat High Court)
The effect of s. 80-IA(9) is that s. 80-IA deduction has to be reduced for s. 80HHC deduction in all cases and not only when the combined deduction exceeds the profits
The Gujarat High Court had to consider the controversy whether the assessee can claim deduction u/s 80HHC of the Act, ignoring the deduction already claimed and allowed u/s 80IA of the Act, unless and until the combined effect of the deductions flowing from both the sections is to exceed the profit and gain of the eligible business of the undertaking or enterprise. The Special Bench of the Tribunal in Rogini Garments 294 ITR (AT) 15 (Chennai) (SB) & Hindustan Mint and Agro Products 315 ITR 401 (Delhi) (SB) as well as the High Courts in Great Eastern Exports (Del) 332 ITR 14, Olam Exports 332 ITR 40 (Ker) & Broadway Overseas 41 taxmann.com 75 (P&H) decided in favour of the department and held that if an assessee has claimed deduction of profit or gains u/s 80IB, deduction to that extent is not to be allowed u/s 80HHC. However, the High Courts in Associated Capsules 332 ITR 42 (Bom) & Millipore India 341 ITR 219 (Kar) decided in favour of the assessee and held that the effect of s. 80-IA(9) was only to ensure that the aggregate deduction did not exceed the profits of the eligible business. HELD by the High Court deciding in favour of the department:
Sub-section (9) of s. 80IA is aimed at restricting the successive claims of deduction of the same profit or gain under different provisions contained in sub-chapter C of Chapter VI of the Act. This provision, therefore, necessarily impacts other deduction provisions including s. 80HHC of the Act. Nothing contained in s. 80HHC suggests that the deduction provided therein was immune from any outside influence or that the provision was impregnable by any other statute or enactment. Accepting any such theory would lead to incongruous results. Even the assessee concedes that sub-section (9) of s. 80IA would operate as to limiting the combined deductions to a maximum of the profits and gains from an eligible business of the undertaking or enterprise. If s. 80HHC contained a protective shell making it immune from any outside influence, even this effect of sub-section (9) of s. 80IA could not be applied. This would completely render the provisions of sub-section (9) of s. 80IA redundant and meaningless.
Comment : A controversial issue having both favorable and unfavorable judgments by different High Courts.
4. A. T. Kearney India Pvt. Ltd vs. ITO (Delhi High Court)
S. 226: AO warned of contempt action for seeking to overreach ITAT’s stay order
The assessee filed a stay application before the Tribunal and informed the AO about the same. Thereafter, the Tribunal heard the matter on 14.02.2014 and granted stay of the demand. Despite this, the AO attached the assessee’s bank account on 19.02.2014 and withdrew the proceeds. The assessee filed a Writ Petition to challenge the attachment. The AO defended his action on the ground that he was not present during the hearing of the stay application and was not intimated of the stay granted by the Tribunal. HELD by the High Court allowing the Petition:
The income tax authorities were represented by the CIT-DR, before the Tribunal. The order on the stay application was also pronounced in open Court on that date. In these circumstances, the submission of the revenue that the concerned AO was not intimated cannot be accepted. If such an argument was made before this Court, where orders are pronounced in Court in the presence of counsel, it would certainly not be accepted, and in fact would be seriously viewed. In the facts of this case,
EIRC April 2014 11
Recent Judicial Pronouncements- Direct Tax
it clearly amounts to overreach of the interim order of the Tribunal; in a similar situation, this Court itself would possibly be initiating contempt proceedings. In these circumstances, the Court is of the opinion that the respondent should lift the attachment and ensure that the amounts recovered are deposited back in the petitioner’s account within a week from today. A copy of the present order shall be marked to the Central Board of Direct Taxes separately and communicated.
Comment : Despite several such judgments and remarks by Tribunal and Courts, the behavior of AO’s are unlikely to change.
5. Alkaben B. Patel vs. ITO (ITAT Ahmedabad) (Special Bench)
The term “month” in s. 54E, 54EA, 54EB & 54EC does not mean “30 days” but the “calendar month”. So, the expression “within a month” means “before the end of the calendar month”
The assessee sold a flat on 10.06.2008. It made an investment in s. 54EC Bonds on 17.12.2008 and claimed an exemption from the capital gains. The AO held that the investment was not made “within a period of six months from the date of the transfer of the asset”. The assessee contended that the word “month” meant till the end of the month of December 2008. On this, the Special Bench had to consider “whether for the purpose of Section 54EC of IT Act, 1961, the period of investment of six months should be reckoned after the date of transfer or from the end of the month in which transfer of capital asset took place?” HELD by the Special Bench:
Sections 54E, 54EA, 54EB & 54EC require the investment to be made “within a period of six months after the date of such transfer”. The subtle question is that whether the word “month” refers in this section a period of 30 days or it refers to the month only. The term ‘month’ is not defined in the Income-tax Act. Therefore, its meaning has to be understood as per the General Clauses Act, 1897 which defines the word “month” to mean a month reckoned according to the British calendar. In Munnalal Shri Kishan Mainpuri167 ITR 415 (All) it was held in the context of limitation u/s 256(2) that the word ‘month’ refers to a period of 30 days and, therefore, the reference to “six months” in s. 256(2) is to “six calendar months” and not “180 days”. On some occasions, the Legislature had not used the term “Month” but has used the number of days to prescribe a specific period. For example, the First Proviso to s. 254(2A) provides that the Tribunal may pass an order granting stay but for a period not exceeding 180 days. This is an important distinction made in the statute while subscribing the limitation/ period. This distinction thus resolves the present controversy by itself.
Comment : Clarifies the correct standing and meaning, giving relief to assessees.
6. Crompton Greaves Limited vs. DCIT (Bombay High Court)
Write-off of irrecoverable advances is not a “transfer” and the loss cannot be claimed as a capital loss u/s 45
Having regard to the definitions of terms “capital asset” and “transfer” in sections 2(14) and 2(47), in order to be eligible for carry forward of capital loss, the capital asset should be of the nature defined in s. 2(14) and should be transferred in the manner defined in s. 2(47). Equally, it should be subjected to tax as per s. 45(1) of the Income-tax Act. The advances given to the said two parties and written off are not the capital assets nor there is any transfer. Therefore, they were not allowed to be carried forward to subsequent years. It is a capital loss and should be ignored (Ahmed G.H. Ariff 76 ITR 471 (SC) & Minor Bababhai 128 ITR 1 (Guj) distinguished)
Comment : Very justified judgment.
7. CIT vs. Intervet India Pvt.Ltd (Bombay High Court)
S. 194-H TDS does not apply to all sales promotional expenditure. It applies only if relationship between payer & payee is that of principal & agent
The assessee had undertaken sales promotional scheme viz. Product discount scheme and Product campaign under which it offered an incentive on case to case
basis to its stockists / dealers / agents. An amount of Rs.70 lakhs was claimed as a deduction towards expenditure incurred under the said sales promotional scheme. The relationship between the assessee and the distributor / stockists was that of principal to principal and in fact the distributors were the customers of the assessee to whom the sales were effected either directly or through the consignment agent. As the distributor / stockists were the persons to whom the product was sold, no services were offered by the assessee and what was offered by the distributor was a discount under the product distribution scheme or product campaign scheme to buy the assessee’s product. The distributors / stockists were not acting on behalf of the assessee and that most of the credit was by way of goods on meeting of sales target, and hence, it could not be said to be a commission payment within the meaning of Explanation (i) to Section 194H of the Income-tax Act, 1961. The contention of the Revenue in regard to the application of Explanation (i) below Section 194H being applicable to all categories of sales expenditure cannot be accepted. Such reading of Explanation (i) below Section 194H would amount to reading the said provision in abstract. The application of the provision is required to be considered to the relevant facts of every case.
Comment : Good interpretation of Law, which may give relief to many big corporates from deducting tax from target based discounts.
8. CIT vs. Moon Star Developers (Gujarat High Court)
S. 80-IB(10): If developer does not (without just cause) develop to full extent of FSI, a part of the sale proceeds has to treated as being for sale of FSI and denied s. 80-IB(10) deduction
The assessee, engaged in development of housing projects, constructed a residential project. Though total FSI of 15312 sq. meters was available for construction, the assessee utilized only 3573 sq. meters. The residential units were constructed only on the ground floor. The said residential units were sold and the entire surplus was claimed u/s 80-IB(10) as profits derived from activity of developing housing project. The AO and CIT(A) held that a part of the consideration received by the developer was relatable to the unutilized FSI and had to be excluded from the profits eligible for s. 80-IB(10) deduction. However, the Tribunal upheld the assessee’s claim on the basis that the assessee was not compelled to construct upto the maximum FSI and that it had satisfied all the other conditions of s. 80-IB(10). On appeal by the department to the High Court HELD reversing the Tribunal:
(i) For any commercial activity of construction, be it residential or commercial complex maximum utilization of FSI is of great importance to the developer. Ordinarily, therefore, it would be imprudent for a developer to underutilize available FSI. Sale price of constructed properties is decided on the built up area. It can thus be seen that given the rate of constructed area remaining same, non-utilization of available FSI would reduce the profit margin of the developer. When a developer therefore utilizes only say 25% of FSI and sells the unit leaving 75% FSI still available for construction, he obviously works out the sale price bearing in mind this special feature. Thus, therefore, when a developer constructs residential unit occupying a fourth or half of usable FSI and sells it, his profits from the activity of development and construction of residential units and from sale of unused FSI are distinct and separate and rightly segregated by the AO;
(ii) It is true that s. 80IB(10) does not provide that for deduction, the undertaking must utilize 100% of the FSI available. The question however is, can an undertaking utilize only a small portion of the available area for construction, sell the property leaving ample scope for the purchaser to carry on further construction on his own and claim full deduction u/s 80IB(10) on the profit earned on sale of the property? If this concept is accepted, in a given case, an assessee may put up construction of only 100 sq. ft. on the entire area of one acre of plot and sell the same to a single purchaser and claim full deduction on the profit arising out of such sale u/s 80IB(10) of the Act. Surely, this cannot be stated to be development of a housing project qualifying for deduction u/s 80IB(10);
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(iii) This is not to suggest that for claiming deduction u/s 80IB (10), invariably in all cases, the assessee must utilize the full FSI and any shortage in such utilization would invite wrath of the claim u/s 80IB(10), being rejected. The issue has to be seen from case to case basis. Marginal under-utilization of FSI certainly cannot be a ground for rejecting the claim u/s 80IB(10). Even if there has been considerable under-utilization, if the assessee can point out any special grounds why the FSI could not be fully utilized, such as, height restriction because of special zone, passing of high tension electric wires overhead, or any such similar grounds to justify under utilization, the case may stand on a different footing. However, in cases where the utilization of FSI is way short of the permissible area of construction, looking to the scheme of s. 80IB(10) and the purpose of granting deduction on the income from development of housing projects envisaged thereunder, bifurcation of such profits arising out of such activity and that arising out of the net sell of FSI must be resorted to. On facts, none of the assessees have made any special ground for non-utilization of the FSI.
Comment : Deduction u/s 80IB only if optimum utilization of Area is undertaken, no undue advantage of relief to be given.
Compiled and Edited By: CA Ankit Kanodia [email protected]
1. Bombay HC Division Bench upholds service tax on restaurant and hotels- Kerala HC order distinguished: (Indian Hotels and Restaurant Association & Others Vs. Union Of India & Others 2014- TIOL-498-HC-MUM-ST)
A division bench of the Hon’ble Bombay High Court has upheld the parliamentary powers to levy service tax on restaurants and hotels thereby negating the earlier judgement of the Single Member Kerala High Court judgment dated July 3, 2013.
The Bombay HC while negating the submission of the petitioners that each of the aspects which go into sale or purchase of goods has thus been included so that the State can impose a tax envisaged by Entry 54 of List II and, therefore, a separate tax on service cannot be imposed, levied, assessed or recovered by the Parliament, held that “Each of these judgments of the Supreme Court must be seen in the context of the challenge raised and argued before it. The challenge was to several State Acts and particularly levying, assessing and recovering sales tax on the food and meals served in a restaurant. The argument was that this is a service and not a sale of goods and particularly food items or drink. It is in that context and when the Supreme Court rendered the decisions so as not to empower the States to impose such a sales tax, that the Parliament clarified that the food or drink may have been served in the restaurant or hotel, but it is nothing but a sale of goods within the meaning of the Sales Tax Act. Therefore, it will not be possible for the hoteliers or restaurants to say and urge that they do not sell goods, but only provide services.”
It further held that the Parliament cannot be said to have transgressed into leave alone encroached upon the power of the State Legislature to impose a tax on sale or purchase of goods vide Entry 54 of List II. The taxing power of the Parliament and traceable to Article 248 of the Constitution of India r/w Entry 97 of List I of the Seventh Schedule enables it to impose a service tax. To enable it to so impose, the term “taxable service” has been defined. The definition of the term “taxable service” makes the nature of the tax clear and precise..
2. No fee is payable in filing appeals before CESTAT relating to refund of ST, CX & Customs - No error in order of Tribunal: High Court (COMMISSIONER OF CENTRAL EXCISEVsM/s GLYPH INTERNATIONAL LTD2014-TIOL-525-HC-ALL-ST)
The department was in appeal against the Larger Bench decision of the CESTAT in case of 2013-TIOL-1103-CESTAT-DEL-LB, wherein the Tribunal held that no fees is payable on appeals relating to refund/rebate of Service Tax filed under Section 86(6) of the Finance Act, 1994. Revenue felt that the Larger Bench decision deprived them of collecting fee in relation to appeals filed under Section 86(6) of Finance Act, 1994.
The High Court held that:
Section 86(6) refers to the fee which has to accompany an appeal. The fees are respectively 1000 rupees, 5000 rupees and 10,000 rupees based on “the amount of service tax and interest demanded and penalty” levied. Where the service tax and interest demand and penalty levied is rupees five lakhs or less, the fee is one thousand rupees; where the service tax and interest demanded and penalty levied is more than five lakhs but does not exceed rupees fifty lakhs, the fee is five thousand rupees; and where the amount of service tax and interest demanded and penalty levied is more than fifty lakhs, the fee is ten thousand rupees.
Section 86 (6) does not speak of a refund/rebate. As the Tribunal has correctly held, there is no residuary provision in Section 86 (6).
On the contrary, prior to 1 November 2004 when Section 86 (6) came into force, the earlier provision was as follows:
“(6) An appeal to the appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, except in the case of an appeal referred to in sub-section (2) of sub-section (4), be accompanied by a fee of two hundred rupees.”
The earlier provision, therefore, was for the payment of a fee of rupees two hundred in case of every appeal (save for the excepted category). The present provision does not contain an analogous arrangement. In the circumstances, there is no error in the interpretation which has been placed by the Tribunal upon the provisions of 86 (6) of the Finance Act, 1994.
3. Service Tax on outdoor catering services- nomerit in the contention that since the assessee is liable to pay Value Added Tax on thesale involved in the supply of goods at the canteen, it is not liable to the payment ofservice tax- Demand of service tax upheld: (M/s INDIAN COFFEE WORKERS CO-OPERATIVE SOCIETY LTD Vs COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX, ALLAHABAD2014-TIOL- 499-HC-ALL-ST)
The assessee is a Society registered under the Societies Registration Act, and had entered into agreements with National Thermal Power Corporation Limited (NTPC) and LancoInfratechLimited (LANCO). Pursuant to an award of contract of 20 June 2008, NTPC entered into an agreement with the assessee for running and maintenance of an administrative building canteen.The letter of award stipulated that service tax would be paid extra in accordance with the prevailing rates on the submission of relevant documents. Commercial tax/VAT was required to be charged from customers and visitors.A notice to show cause was issued on 5 April 2011 by the office of the Commissioner of
Central Excise, Allahabad requiring the assessee to show cause why service tax in the amountof Rs.10,40,803/- for the period 1 October 2009 to 30 September 2010 should not be imposed on the assessee by treating the activity of the assessee of running restaurants/canteens at the premises of NTPC and LANCO as “outdoor catering services”. The Hon’ble Tribunal held that there is no merit in the contention that since the assessee is liable to pay Value Added Tax on the sale involved in the supply of goods at the canteen, it is not liable to the payment of service tax. The charge of tax in the cases of VAT is distinct from the charge of tax for service tax. The activities of the appellant are covered within the meaning of outdoor caterer as per Section 65(24) and Section 65(76a). The service is taxable under Section 65(105)(zzt) and hence the demand was upheld. However, the Hon’ble Tribunal set aside the penalty under section 78 on grounds of contrary views on the subject matter of dispute.
4. Notification having characterof exemption cannot be forced upon an assessee if it does not suit him: (COMMISSIONER OF CENTRAL EXCISEVsM/s GRAND CARD INDUSTRIES & ORS (2014-TIOL-496-HC-DEL-CX)
The substantial question of law before the Hon’ble High Court was “Whether the option is available to the Assessee either to avail the exemption or to pay duty on the final product by taking modvat credit on inputs in terms of Rule57A of the Central Excise Rules, 1944.”
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The Respondent Assessees were small scale industrial units (hereinafter called the SSI Units) and at the relevant point of time eligible for benefit of the exemption on clearances upto aggregate value of Rs . 30 Lakhs in terms of Notification No.1/93 dated 28.02.1993.The Respondent Assessees instead of claiming benefit under the exemption notification sought to take benefit of the Modvat Credit under section 57A of the Central Excise Rules, 1944 (hereinafter referred to as the Rules) and paid full duty on the inputs used in the manufacture of final products to avail ModvatCredit. The credit was sought to be utilized for payment of duty on the final product.The Commissioner of Central Excise (Appeals) vide his order dated 15.09.1995 denied Modvatcredit to the tune of Rs . 3,16,095/- in the case of Grand Cord Industries and Rs . 9,01,754/- in the case of M/s Jhunsons Chemicals. The authorities held that an Assessee being covered under the said exemption notification had no option and the Modvat credit was not admissible under Rule 57C.The Assessee/Respondents filed appeals before the Customs Excise and Gold (Control) Appellate Tribunal. The Tribunal vide order dated 03.03.1998 following their earlier decisions in the case of Everest Convertors Vs Collector 1995 (80) ELT 91 = (2002-TIOL-129-CESTAT-KOL) and other earlier decisions allowed the appeals and held that the Assessee cannot be denied the benefit of Modvat credit of duty paid on inputs used in the manufacture of final products on which duty was paid, though the final product would be exempt from duty under an exemption notification issued under section 5A(1), since it was for the Assessee to claim the concession.Aggrieved by the decision of the Tribunal the Revenue filed the reference petitions and accordingly vide order dated 16.02.2000 the matter has been referred to the High Court on the question of law referred to above. The High Court held that the stand of the Revenue is not sustainable. The object of the MODVAT Scheme is to reduce cost of final product by taking credit for the duty paid on the inputs. The object of the Exemption notification is to grantbenefit to the SSI Units for clearing goods without payment of duty upto a particular limit.Both the MODVAT scheme and the exemption notifications are beneficial legislation. Thebeneficial notification have to be strictly initially but liberally interpreted.
CorrigendumThe Editorial Board regrets to the readers, a misprint in page 12 (5th paragraph) of the EIRC Newsletter March 2014 issue in regard to Article of “Sharing of Common Expenses by Group Companies – Whether liable to pay Service Tax ?
The correct edition of the paragraph will be read as follows :
“Status w.e.f 01.07.2012(Negative list regime)
Now, let us examine the leviability of the same transaction in the negative list regime which is now existing. As we have seen the present negative list regime defines the term “Service” in Section 65B(44). The definition in short defines service as “any activity carried out by a person for another for consideration”. The very definition of service has kindled a ray of ambiguous thoughts lingering in the minds of the taxpayers as to “What is Service Tax? Is it a tax on “Service” or a tax on “each and every activity””?
In order to answer this query, the definition of service under section 65B(44) of the Act has to be thoroughly analyzed. On analyzing the said definition of service, it can be construed that the under lying principle of value addition as discussed hereinabove still hold good. Tax cannot be levied on any activity without there being any consideration in return for the provision of the same. In the instant case, as already discussed, there is no value addition rather only the common expenses incurred for the group as a whole is being recovered by the flagship company. There is no rendition of any service for exchange of any consideration whatsoever. Therefore, the question of levy of service tax does not arise in any manner whatsoever, as the rendition of service cannot be envisaged in the instant case.”
In this regard ........
INCONVENIENCE CAUSED IS REGRETTED
A. Direct Tax
Compiled by : CA Raj Singhania [email protected]
1. [Notification No. 12/2014/F.No. 503/02/1997-FTD-I] S.O. 663(E).- In exercise of the powers conferred by Section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the Agreement between the Government of Republic of India and the Government of Republic of Latvia signed on 18th Day of September, 2013 for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, as set out in the annexure hereto, shall be given effect to in the Union of India with effect from the 1st Day of April, 2014.
2. [Notification No. 13/2014/F.No. 501/10/1995-FTD-I] S.O. 680(E).- In exercise of the powers conferred by Section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the Agreement between the Government of Republic of India and Romania signed on 8th Day of March, 2013 for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, as set out in the annexure hereto, shall be given effect to in the Union of India with effect from the 16th Day of Decemberl,2013.
3. [Notification No. 15/2014/F. No. 142/33/2013-(TPL)] S.O. 834(E). - In exercise of the powers conferred by clause (iii) of Explanation 2 to clause (e) of the Proviso to clause (5) of section 43 of the Income-tax Act, 1961 (43 of 1961), read with sub-rule (4) of rule 6DDD of the Income-tax Rules, 1962, the Central Government hereby notifies the Ace Derivatives and Commodity Exchange Limited, Ahmedabad as a recognized association for the purposes of clause (e) of the proviso to clause (5) of the said section, with effect from the date publication of this notification in the Official Gazette.
4. [Notification No. 16/2014/F. No. 142/1/2014-TPL ] Dated 20.03.2014 S.O. 878 (E).— In exercise of the powers conferred by Section 295 read with Section 35CCD of the Income Tax Act, 1961,the CBDT Makes the 2nd Amendment Rules 2014 to further amend the Income Tax rules, 1962 amending Rule 6AAH and further inserting a new clause by way of defining “National Skill Development Agency”.
5. [Notification No. 17/2014/F. No. 196/53/2012-(ITA.1)] Dated 20.03.2014 S.O. 861 (E). – In exercise of the powers conferred by Clause (46) of Section 10 of the Income Tax Act, 1961, the central Government hereby notifies for the purpose of the said clause, the Andhra Pradesh State AIDS Control Society, a Society constituted by the Government of Andhra Pradesh in respect of the following specified income arising to that society, namely:-
“ Amounts received in the form of Grants – in – aid from the Government of India”
This notification shall be deemed to apply for a period 01.06.2011 to 31.03.2013 and shall apply with respect to the Financial Years 2013-14, 2014-15 and 2015-16.
The grants received by the said society shall be received and applied in accordance with the prevailing rules and regulations.
6. [Notification No. 18/2014/F. No. 133/3/2014-TPL ] Dated 20.03.2014 S.O. 878 (E).— In exercise of the powers conferred by Section 295 read with Section 35CCC of the Income Tax Act, 1961,the CBDT Makes the 3rd Amendment Rules 2014 to further amend the Income Tax rules, 1962 by substituting Rule 6AAD which reads as “ 6AAD, Guidelines for approval of agricultural extention projects under section 35CCC” For details see-
7. [Notification No. 19/2014/F. No. 178/9/2014-(ITA.1)] Dated 26.03.2014. S.O. 899(E).— Amendment in Notification No. 61( S.O. 2424(E)) dated 08.08.2013,
Notification & Circulars Direct Taxes
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The limits of issuing of tax free bonds is revised to Rs 8853 Crores in case of IRFC Ltd whereas tax free bonds can be issued by IFCI worth Rs. 430 Crores has been added.
8. [Notification No. 20/2014/F. No. 178/91/2006-(ITA.1)] Dated 26.03.2014. S.O. 898(E).— Whereas the Central Government, in exercise of the powers conferred under the Industrial Park Scheme 2002 as notified vide number S. O. 354 (E), dated 01.04.2002, had granted approval to the undertaking being developed and being maintained and operated by M/s Pantheon Infrastructure P. Ltd. Mumbai, as an Industrial Park. And Whereas, subsequently, the Central Government, vide letter No. 15/29/2005 – IP & ID dated 03.02.2014 has withdrawn the said approval granted to the said undertaking under the Scheme.
And Whereas the Central Government, in exercise of the powers conferred under the Clause (iii) of sub section (4) of Section 80 IA of the Income Tax Act, 1961 had notified vide number S. O. 4700, dated 17.11.2006, had notified the undertaking being developed and maintained and operated by M/s Pantheon Infrastructure P. Ltd. Mumbai, as an Industrial Park. And Whereas, subsequently, the Central Government, in exercise of the powers conferred under the Clause (iii) of sub section (4) of Section 80 IA of the Income Tax Act, 1961 read with Section 21 of the General Clauses Act, 1897, hereby rescinds the said Notification.
9. [Notification No. 21/2014/F. No. 178/03/2007-(ITA.1)] Dated 27.03.2014. S.O. 918(E).—Whereas the Central Government, in exercise of the powers conferred under the Industrial Park Scheme 2002 as notified vide number S. O. 354 (E), dated 01.04.2002, had granted approval to the undertaking being developed and being maintained and operated by M/s Finest Promoters P. Ltd. New Delhi, as an Industrial Park. And Whereas, subsequently, the Central Government, vide letter No. 15/29/2006 – IP & ID dated 24.01.2014 has withdrawn the said approval granted to the said undertaking under the Scheme.
And Whereas the Central Government, in exercise of the powers conferred under the Clause (iii) of sub section (4) of Section 80 IA of the Income Tax Act, 1961 had notified vide number S. O. 462, dated 09.02.2007, had notified the undertaking being developed and maintained and operated by M/s Finest Promoters P. Ltd. New Delhi, as an Industrial Park. And Whereas, subsequently, the Central Government, in exercise of the powers conferred under the Clause (iii) of sub section (4) of Section 80 IA of the Income Tax Act, 1961 read with Section 21 of the General Clauses Act, 1897, hereby rescinds the said Notification w.e.f 09.02.2007
10. [Notification No. 23/2014/F. No. 503/8/2005-FTD-II ] Dated 28.03.2014 S.O. 956(E).— In exercise of the powers conferred by Section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that the agreement between the Government of Republic of India and the Government of the Democratic Socialist Republic of Sri Lanka signed on 22.01.2013 for the avoidance of double taxation and the prevention of fiscal evasion shall enter into force on 22.10.2013 in accordance with the Article 30 of the Said DTAA. The Central Government hereby notifies that that the provisions of DTAA annexed hereto shall be given effect to in the Union of India w.e.f 01.04.2014.
11. [Notification No. 24/2014/F. No. 142/2/2014-TPL] Dated 01.04.2014 S. O.997(E).— In exercise of the powers conferred by Section 295 of the Income Tax Act, 1961the CBDT hereby notifies the Income Tax (4th Amendment) Rules, 2014 whereby substituting 2014 for the figure 2013. And 2013 for the figures 2012. For details see –
Circulars:
S. 10(2A): CBDT Issues Important Circular On Taxability Of Firms And Partners. The CBDT has issued Circular No. 08/2014 dated 30.03.2014 to deal with the controversial topic as to whether, if the income of the firm is Nil on account of an exemption under Chapter III or deduction under Chapter VI-A of the Act, the partners will also be entitled to claim exemption u/s 10(2A) of the Act with respect to their share in the
profits of the firm. The CBDT has clarified that the term “total income” in s. 10(2A) includes income which is exempt or deductible under various provisions of the Act. It is stated that the income of a firm is taxable only in the hands of the firm and can under no circumstances be taxed in the hands of the partner. The CBDT has made it clear that the entire income credited to the partners’ account in the firm would be exempt from tax in the hands of the partners, even if the firm is also not chargeable to tax on account of an exemption or deduction.
B. CENTRAL EXCISE Compiled and Edited By: CA Ankit Kanodia
1. Improving the departmental representation in High Court/CESTAT-reg (Instruction no. F.No.275/30/2014-CX.8A, Dated: April 3, 2014).
C. CUSTOMS Compiled and Edited By: CA Ankit Kanodia
1. CBEC seeks to amend Notification No. 96/2008-Customs, dated 13-08-2008 (DFTP scheme for LDCs)(Notification no. 08/2014-Cus. Dated: April 01, 2014).
2. CBEC seeks to amend Notification No. 69/2011-Customs, dated 29th July, 2011 (India-Japan CEPA)(Notification no. 09/2014-Cus. Dated: April 01, 2014).
3. CBEC revises Tariff Value of several commodities (Notification no. 25/2014-Cus. (N.T.) , Dated: March 31, 2014).
4. CBEC notifies new Customs Exchange rates effective from April 04, 2014 (Notification no. 26/2014-Cus. (N.T.), Dated: April 3, 2014).
5. CBEC notifies Aurangabad for export/ import purposes (Notification no.30/2014-Customs (N.T.) Dated : April 7, 2014).
6. CBEC hikes tariff value of gold & silver but reduces for Crude Soya oil and RBD Palmolein (Notification no. 31/2014-Customs (N.T.) Dated : April 15, 2014).
7. CBEC notifies rate of exchange of conversion of each of the foreign currency with effect from 17th April, 2014 (Notification no. 31/2014-Customs (N.T.) Dated : April 15, 2014).
8. Import of Pesticides - Common Order dated 05.09.2013 passed by Hon’ble Gujarat High Court in various Civil Applications –regarding (Circular no. 7/2014-Cus., Dated: April 07, 2014).
9. Manual filing and processing of Bills of Entry / Shipping Bills – stringent checks required to prevent misuse – regarding. (Instruction no.F. No. 401/81/2011-Cus.III, Dated: April 07, 2014).
10. Provisional Anti Dumping Duty on Cast Aluminium Alloy Wheels (Notification no. 15/2014-Cus. (ADD), Dated: April 11, 2014).
D. FEMA & FDI Compiled and Edited By: CA Gautam Sharma
Notification on A.P.D. Series.
1. Foreign Portfolio Investor - investment under Portfolio Investment Scheme, Government and Corporate debt
Reserve Bank of India vide Notification No. RBI/2013-14/ 533 A.P. (DIR Series) Circular No.112, dated 25th March, 2014, have reviewed the extant guidelines for
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EIRC April 2014 15
Portfolio Investment Scheme for Foreign Institutional Investor (FII) and Qualified Foreign Investor (QFI) and it has been decided to put in place a framework for investments under a new scheme called ‘Foreign Portfolio Investment’ scheme. The Salient features relating to ‘Registered Foreign Portfolio Investor (RFPI)’ have also been prescribed in the said circular. Any foreign institutional investor who holds a valid certificate of registration from SEBI shall be deemed to be a registered foreign portfolio investor (RFPI) till the expiry of the block of three years for which fees have been paid as per the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995. A QFI may continue to buy, sell or otherwise deal in securities subject to the SEBI (FPI) Regulations, 2014 for a period of one year from the date of commencement of these regulations, or until he obtains a certificate of registration as foreign portfolio investor, whichever is earlier. However, all investments made by that FII/QFI in accordance with the regulations prior to registration as RFPI shall continue to be valid and taken into account for computation of aggregate limit.
Reserve Bank has since amended the Principal Regulations through the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2014 notified vide Notification No.FEMA.297/2014-RB dated March 13, 2014, c.f. G.S.R. No. 189(E) dated March 19, 2014.
2. External Commercial Borrowings (ECB) for Civil Aviation Sector
Reserve Bank of India vide Notification No. RBI/2013-14/537 A.P. (DIR Series) Circular No.113, dated 26th March, 2014, have decided to extend the scheme of External Commercial Borrowings (ECB) which can be raised by airline companies for working capital as a permissible end-use, under the approval route, subject to the conditions stipulated in Circular No. A.P.(DIR Series) Circular No. 113 dated April 24, 2012, and which was previously extended till 31st December, 2013 vide A.P. (DIR Series) Circular No. 116 dated June 25, 2013, will continue to 31st March, 2015.All other conditions stipulated in aforesaid Circular dated April 24, 2012 shall remain unchanged.
3. Risk Management and Inter Bank Dealings
Reserve Bank of India vide Notification No. RBI/2013-14/540 A.P. (DIR Series) Circular No.114, dated 27th March, 2014, in order to provide greater operational flexibility, it has decided to relax the restriction of paragraph 2(c) Under extant guidelines relating to hedging of currency risk of probable exposures based on past performance by residents which stated “All forward contracts booked under this facility by both exporters and importers are required to be on fully deliverable basis. In case of cancellation, exchange gain, if any, should not be passed on to the customer.” Henceforth, contracts booked up to 75 percent of the eligible limit mentioned at paragraph 2(a) and 2(b) Under extant guidelines relating to hedging of currency risk of probable exposures based on past performance by residents, may be cancelled with the exporter/importer bearing/being entitled to the loss or gain as the case may be. Contracts booked in excess of 75 percent of the eligible limit mentioned at paragraph 2(a) and 2(b) above shall be on a deliverable basis and cannot be cancelled, implying that in the event of cancellation, theexporter/importer shall have to bear the loss but will not be entitled to receive the gain.
4. Merchanting Trade Transactions - Revised guidelines
Reserve Bank of India vide Notification No. RBI/2013-14/545 A.P. (DIR Series) Circular No.115, dated 28th March, 2014, have issued revised guidelines on merchanting trade transactions. It is further stated that the merchanting traders have to be genuine traders of goods and not merefinancial intermediaries. Confirmed orders have to be received by them from the overseas buyers. AD banks should satisfy themselves about the capabilities of the merchanting trader to perform the obligations under the order. The overall merchanting trade should result in reasonable profits to the merchanting trader. It is clarified that the contents of this circular would come into effect in respect of merchanting trade transactions initiated after January 17, 2014.
Notification & Circulars FEMA & FDI
5. Advance Remittance for Import of Rough Diamonds
Reserve Bank of India vide Notification No. RBI/2013-14/548 A.P. (DIR Series) Circular No.116, dated 1st April, 2014, with a view to liberalising the procedure further facilitating the import of rough diamonds, it has now been decided that henceforth Reserve Bank of India will not notify the names of overseas mining companies from whom an importer (other than PSC or Department / Undertaking of Government of India / State Government) may import rough diamonds into India, by way of advance payments, without any limit / bank guarantee/ stand-by letter of Credit. AD category – I banks are, henceforth, permitted to take decision on overseas mining companies to whom an importer (other than PSC or Department / Undertaking of Government of India / State Government) can make advance payments, without any limit / bank guarantee/ stand-by letter of Credit. AD Category - I banks are required to submit a report of all such advance remittances made without a bank guarantee or standby letter of credit, where the amount of advance payment is equivalent to or exceeds USD 5,000,000/- (USD five million only), to the concerned Regional Office of Reserve Bank of India, in the annexed format, within 15 calendar days of the close of each half year.
6. Foreign Exchange Management Act, 1999 (FEMA) - Foreign Exchange (Compounding Proceedings) Rules, 2000 (the Rules) - Compounding of Contraventions under FEMA, 1999
Reserve Bank of India vide Notification No. RBI/2013-14/553 A.P. (DIR Series) Circular No.117, dated 4th April, 2014, has decided to delegate further powers to the Regional Offices of Reserve Bank of India. Accordingly, the powers to compound the following contraventions will now be vested with the Regional Offices:
Sr. FEMA Regulation Brief Description of Contravention No.
1 Paragraph 9(1)(A) of Schedule Delay in reporting inward remittance I to FEMA 20/2000-RB dated received for issue of shares. May 3, 2000
2 Paragraph 9(1)(B) of Schedule Delay in filing form FC(GPR) after I to FEMA 20/2000-RB dated issue of shares. May 3, 2000
3 Paragraph 8 of Schedule Delay in issue of shares/refund of share I to FEMA 20/2000-RB dated application money beyond 180 days, May 3, 2000 mode of receipt of funds, etc.
4 Paragraph 5 of Schedule I to Violation of pricing guidelines for FEMA 20/2000-RB dated issue of shares. May 3, 2000
5 Regulation 2(ii) read with Issue of ineligible instruments such as Regulation 5(1) of FEMA 20/ non-convertible debentures, partly 2000-RB dated May 3, 2000 paid shares, shares with optionality clause, etc.
6 Paragraph 2 or 3 of Schedule Issue of shares without approval of I to FEMA 20/2000-RB dated RBI or FIPB respectively, wherever May 3, 2000 required.
The above contraventions can be compounded by all Regional Offices (except Kochi and Panaji) without any limit on the amount of contravention. Kochi and Panaji Regional offices can compound the above contraventions for amount of contravention below Rupees one hundred lakh (Rs.1,00,00,000/-). The contraventions above Rupees one hundred lakh (Rs.1,00,00,000/-) under the jurisdiction of Panaji and Kochi Regional Offices and all other contraventions of FEMA will continue to be compounded at Cell for Effective Implementation of FEMA (CEFA), Mumbai, as hitherto.
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7. Foreign investment in India in Government Securities
Reserve Bank of India vide Notification No. RBI/2013-14/ 556 A.P. (DIR Series) Circular No.118 dated, 7th April, 2014, on a review, to encourage longer term flows, it has now been decided that foreign investment by all eligible investors including RFPIs shall henceforth be permitted only in Government dated securities having residual maturity of one year and above and existing investments in T-bills and Government dated securities of less than one year residual maturity shall be allowed to taper off on maturity/ sale.
The revised position in respect of the investment limit in Government dated securities is given below:
Instrument/s Limit Eligible Investors Remarks
Government dated USD 30 RFPIs (including existing Existing investment in securities – billion FIIs and QFIs) and Long Tbills and Government Securities having term investors registered dated securities of less residual maturity with SEBI – SWFs, than one year residual of one year and maturity shall be allowed above. Multilateral Agencies, to taper off on maturity/ Pension/ Insurance / sale. Endowment Funds and foreign Central Banks. No fresh investment in Tbills and Government dated securities of less than one year residual maturity allowed.
All other existing conditions for investment in Government securities remain unchanged.
8. Risk Management & Inter-Bank Dealings: Booking of Forward Contracts- Liberalisation
Reserve Bank of India vide Notification No. RBI/2013-14/ 557 A.P. (DIR Series) Circular No. 119, dated 7th April, 2014, with a view to further liberalising the existing facilities, it has now been decided to allow all resident individuals, firms and companies, who have actual or anticipated foreign exchange exposures to book foreign exchange forward contracts up to US$ 250,000 on the basis of a simple declaration without any requirement of further documentation. The existing facilities in terms of the aforementioned circular for Small and Medium Enterprises (SMEs) having direct and/ or indirect exposures to foreign exchange risk permitting them to book/ cancel/ roll over forward contracts without production of underlying documents to manage their exposures effectively subject to conditions specified therein shall remain unchanged. The revised reporting format is provided in Annexes I and II to the said circular. All other conditions including tenor of the contracts as laid down in A.P. (DIR Series) Circular No.15 dated October 29, 2007 will apply mutatis mutandis.
9. Rupee Drawing Arrangement – ‘Direct to Account’ Facility
Reserve Bank of India vide Notification No. RBI/2013-14/560 A.P. (DIR Series) Circular No.120, dated 10th April, 2014, in order to facilitate receipt of foreign inward remittances directly into bank accounts of the beneficiaries, it has been decided to allow foreign inward remittances received under Rupee Drawing Arrangement (RDA) to be transferred to the KYC compliant beneficiary bank accounts through electronic mode, such as, NEFT, IMPS, etc. Foreign inward remittances received by the AD Cat-I Bank (termed as ‘Partner Bank’) having RDA with Non Resident Exchange Houses may be credited directly to the account of the beneficiary held with a bank other than the AD Cat-I Bank (termed as ‘Recipient Bank’) electronically, subject to the conditions as prescribed in the said circular. All other instructions issued vide A. P. (DIR Series) Circular No. 28 [A. P. (FL/RL Series) Circular No. 02] dated February 6, 2008, as amended from time to time, will remain unchanged.
10. External Commercial Borrowing (ECB) Policy – Review of all-in-cost ceiling
Reserve Bank of India vide Notification No. RBI/2013-14/561 A.P. (DIR Series) Circular No.121, dated 10th April, 2014, decided that the all-in-cost ceiling as specified underparagraph 2 of A.P. (DIR Series) Circular No. 99 dated March 30, 2012will continue to be applicable till June 30, 2014 and is subject to review thereafter. All other aspects of ECB policy remain unchanged.
11. Trade Credits for Imports into India– Review of all-in-cost ceiling
Reserve Bank of India vide Notification No. RBI/2013-14/562 A.P. (DIR Series) Circular No.122, dated 10th April, 2014, has decided that the all-in-cost ceiling as specified under paragraph 4 of A.P. (DIR Series) Circular No.28 dated September 11, 2012will continue to be applicable till June 30, 2014 and is subject to review thereafter.
12. Foreign Direct Investment (FDI) in Limited Liability Partnership (LLP)
Reserve Bank of India vide Notification No. RBI/2013-14/566 A.P. (DIR Series) Circular No. 123, dated 16th April, 2014, has decided that Limited Liability Partnership (LLP) formed and registered under the Limited Liability Partnership Act, 2008 shall be eligible to accept Foreign Direct Investment (FDI) subject to the conditions given in Annex I of the said circular. Reserve Bank has since amended the Principal Regulations through the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Third Amendment) Regulations, 2014 notified vide Notification No. FEMA. 298/2014-RB dated March 13, 2014 c.f. G.S.R. No.190(E) dated March 19, 2014.
The instructions issued in this circular shall be effective from May 20, 2011. However, reporting requirement of FDI in LLP shall come into force from the date of issue of instructions by the Reserve Bank in this regard. The LLP which have received foreign investment in terms of FIPB approval between May 20, 2011 to the date of this circular, shall comply with the reporting requirement in respect of FDI within 30 or 60 days, as applicable, from the date of this circular.
Notification & Circulars FEMA & FDI
Office of the Additional Commissioner of Income Tax : Range-10, Kolkata, 3rd Floor, Aayakar Bhavan, P-7, Chowringhee Square,
Kolkata - 69
Phone : 033-2213 6273, Fax : 033-2213 6976
Notice
The Range -10, Kolkata is organizing a grievance redressal fortnight from 21st April, 2014 to 5th May, 2014. Taxpayers having any grievance regarding Rectifications, Multiple Arrear Demands, Refunds, Remand Reports, Order giving effect to the orders of Appellate Authorities and migration are requested to approch their Assessing officers with the grievances. If the grievances are not redressed within three working days, the Additional CIT, Range-10 Kolkata may be intimated/informed about the grievances.
The taxpayers are requested to furnish the necessary documentary evidences in support of the claims.
All the officers are available during the entire Fortnight during the normal office hours at 3rd floor, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata.
Dated : 07-04-2014
(Sujit Kumar) Addin. Commissioner of Income Tax, Range-10, Kolkata
EIRC April 2014 17
EIRC Grievance Cell for Members
For any grievance/ query on any matter, members are
requested to write to [email protected]
Announcements
We pray to the almighty that may their soul rest in peace
CA SWAPAN KUMAR SAHA Membership No. 051336
Passed away on 25th January 2014
CA SHYAMAL KUMAR MITRA Membership No. 009860
Passed away on 2nd February 2014
CA DIPAK KUMAR DEB Membership No. 011104
Passed away on 8th March 2014
EIRC DEEPLY MOURNS THE SAD DEMISE OF
CA Benevolent AwardObjective
The objective for which the fund is established is to provide financial assistance for maintenance, education or any other similar purpose to necessitous persons being:-
(a) persons who are or have been members of the Institute, whether subscribers to the fund or not; or
(b) wives and children of persons who are or have been members of the Institute, whether subscribers to the fund or not.
(c) widows and children of deceased persons who have been members of the Institute whether subscribers to the fund or not.
(d) relatives or others who were dependent for support on a person who has been a member of the Institute, whether subscriber to the fund or not; and who has died without leaving a widow or child.
Procedure for becoming a member of the CABF
There are two categories of members :-
(a) Life Member: A single payment of Rs. 2500/- shall make a person eligible to be admitted as a life member of the fund. Thereafter he shall not be liable to pay any amount on account of subscription and shall be styled as a ‘Life Member’.
(b) Ordinary members: All other members shall be described as ‘Ordinary Members’ and shall have to pay an annual subscription of Rs. 500/-.
Apart from this any member can subscribe for ‘Voluntary Contribution’.
For more Information please visit http://www.icai.org/new_post.html?post_id=6301
Empanelment of “Writers” for Chartered Accountants examinationThe concessions extended by the Institute of Chartered Accountants of India, to differently abled candidates, in CA examinations, inter alia include a) compensatory time and/or b) writer (scribe). Detailed guidelines in this regard are hosted in the students>examination section of www.icai.org
Institute is in the process of building a panel of writers (scribes), in various cities, who can act as “writers” for differently abled candidates in CA examinations and invites applications from eligible persons who are studying in recognized schools, colleges and other educational institutions for empanelment as “Writers” in the following cities: Delhi, Mumbai, Chennai, Kolkata, Kanpur, Jaipur, Ahmedabad, Pune, Bangalore, Hyderabad, Chandigarh, Bhubaneswar, Guwahati, Indore and Ludhiana.
The eligibility for becoming a writer is given below:
Examination Educational Qualification of writer
CPT 10th class/Matriculation passed.
Final/Intermediate [IPC] Under Graduate students. (Registered students of CA/CWA/CS course, passed Final examination and a member of the ICAI, ICWAI, and ICSI are not eligible to act as a writer).
A writer will be eligible for a honorarium of Rs.500/-(Rupees five hundred only) per paper/two sessions of Common Proficiency Test (CPT)Those who are desirous of empanelling themselves may send their handwritten application in the prescribed format (available at the link mentioned above) at the following address, on or before 30th April 2014.
The Additional Secretary (Exams) The Institute of Chartered Accountants of India ‘ICAI Bhawan’ Indraprastha Marg, New Delhi – 110 002
(G. Somasekhar) Additional Secretary (Exams.)
Procedure for Online Registration/Payment through EIRC website1. Log in to www.eircicai.org
2. Create your user id on the EIRC Website by clicking on the tab ‘Register’.
3. On creation of the account please activate your account by clicking on the link sent to your email id.
4. Once your account is created, you can log in your account from the tab ‘sign in’.
5. Under ‘EIRC Upcoming Events’ click on ‘Read more’
6. You can now Register for the seminar of your choice by clicking on ‘Register Now’
7. You will then be directed to the payment gateway to make payment.
For any suggestions/queries regarding EIRC website, write at [email protected]/[email protected]
Time For Completion Of GMCS 1 extended till 30th September, 2014 for students registered for articleship training on or after 1st May, 2012
It has been decided to grant extension to students, who were registered for practical training on or after 1st May, 2012 and completed one year of their practical training but not completed the GMCS-I course are required to complete GMCS-I Course latest by 30thSeptember, 2014.
The above students are advised to register at the portal www.icaionlineregistration.org or contact the nearest Regional Council/Branch for registration in GMCS-I Course and complete the same at the earliest but not later than 30th September, 2014.
INVITATION FOR ARTICLES IN EIRC NEWSLETTERThe Editorial Board invites articles from Members to be published in its forthcoming Newsletters. The articles may be related to Direct Tax, Indirect Tax, Corporate Law or matter related to Finance, Accounting or any others concerning profession.
The article should be restricted to 2500 words. The Editorial Board reserves the right for selection of articles for publication in its Newsletter.
The article may be mailed to [email protected] or may be send to the Office of EIRC at ICAI Bhawan, 7, Russell Street, 4th Floor, Kolkata – 700 071.
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MEMBERS FOR COMMITTEES OF EIRC OF ICAI FOR THE YEAR 2014 - 2015
STANDING COMMITTEE
Executive Professional Public Relations Career Counselling Student Development
Chairman CA Subhash Chandra Saraf CA Manish Goyal CA Pramod Dayal Rungta CA Sunil Kumar Sahoo CA Pramod Dayal Rungta
Vice CA Pramod Dayal Rungta CA Ranjeet Kumar Agarwal CA Sunil Kumar Sahoo CA Ranjeet Kumar Agarwal CA Anirban Datta Chairman
Member- CA Anirban Datta CA Pramod Dayal Rungta CA Ranjeet Kumar Agarwal CA Pramod Dayal Rungta CA Ranjeet Kumar Agarwal Regional CA Manish Goyal CA Anirban Datta CA Subhash Chandra Saraf CA Anirban Datta CA Subhash Chandra Saraf Council CA Subhash Chandra Saraf CA Anirban Datta CA Subhash Chandra Saraf CA Sunil Kumar Sahoo
Member- CA Subodh Kumar Agrawal, CA Abhijit Bandyopadhyay CA Subodh Kumar Agrawal, CA Sumantra Guha CA Subodh Kumar Agrawal, Central Past President, ICAI Past President, ICAI Past President, ICAI Council CA Sumantra Guha
OTHER COMMITTEES
Continuing Members In Industry Editorial Board Information Library Professional Education Technology
Chairman CA Subhash Chandra Saraf CA Anirban Datta CA Subhash Chandra Saraf CA Subhash Chandra Saraf CA Manish Goyal
Vice CA Anirban Datta CA Subhash Chandra Saraf CA Pramod Dayal Rungta CA Sunil Kumar Sahoo CA Anirban Datta Chairman
Member- CA Ranjeet Kumar Agarwal CA Ranjeet Kumar Agarwal CA Anirban Datta CA Pramod Dayal Rungta CA Ranjeet Kumar Agarwal Regional CA Pramod Dayal Rungta CA Pramod Dayal Rungta CA Manish Goyal CA Ranjeet Kumar Agarwal CA Sunil Kumar Sahoo Council CA Sunil Kumar Sahoo CA Manish Goyal CA Manish Goyal CA Pramod Dayal Rungta
Member- CA Abhijit Bandyopadhyay CA Abhijit Bandyopadhyay CA Subodh Kumar Agrawal, CA Subodh Kumar Agrawal, CA Subodh Kumar Agrawal, Central Past President, ICAI Past President, ICAI Past President, ICAI Council CA Sumantra Guha, CA Abhijit Bandyopadhyay
Branch Co-Ordination Study Circle Co-Ordination GMCS Coordination Financial Markets & Member’s Grievance Investor’s Protection
Chairman CA Anirban Datta CA Subhash Chandra Saraf CA Subhash Chandra Saraf CA Manish Goyal CA Anirban Datta
Vice CA Subhash Chandra Saraf CA Pramod Dayal Rungta CA Pramod Dayal Rungta CA Subhash Chandra Saraf CA Ranjeet Kumar Agarwal Chairman
Member- CA Anirban Datta CA Manish Goyal CA Anirban Datta CA Anirban Datta CA Manish Goyal Regional CA Sunil Kumar Sahoo CA Anirban Datta CA Manish Goyal CA Pramod Dayal Rungta CA Subhash Chandra Saraf Council CA Manish Goyal CA Ranjeet Kumar Agarwal CA Ranjeet Kumar Agarwal CA Ranjeet Kumar Agarwal CA Pramod Dayal Rungta
Member- CA Sumantra Guha CA Abhijit Bandyopadhyay CA Sumantra Guha CA Sumantra Guha CA Sumantra Guha Central Council
Capacity Building of Public Finance & Accounting Standards Banking Insurance Exposure Drafts CA Firms & SMEs Government Accounting for Local Bodies & Pension
Chairman CA Pramod Dayal Rungta CA Ranjeet Kumar Agarwal CA Anirban Datta CA Sunil Kumar Sahoo CA Sunil Kumar Sahoo
Vice CA Manish Goyal CA Anirban Datta CA Manish Goyal CA Subhash Chandra Saraf CA Pramod Dayal Rungta Chairman
Member- CA Subhash Chandra Saraf CA Ranjeet Kumar Agarwal CA Ranjeet Kumar Agarwal CA Ranjeet Kumar Agarwal CA Ranjeet Kumar Agarwal Regional CA Pramod Dayal Rungta CA Subhash Chandra Saraf CA Pramod Dayal Rungta CA Pramod Dayal Rungta CA Subhash Chandra Saraf Council CA Anirban Datta CA Pramod Dayal Rungta CA Sunil Kumar Sahoo CA Manish Goyal CA Sunil Kumar Sahoo
Member- CA Sumantra Guha CA Abhijit Bandyopadhyay CA Abhijit Bandyopadhyay CA Abhijit Bandyopadhyay CA Abhijit Bandyopadhyay Central Council
Committees
EIRC April 2014 19
Committees
Direct Taxes Indirect Taxes International Taxation Internal Audit Research
Chairman CA Subhash Chandra Saraf CA Ranjeet Kumar Agarwal CA Pramod Dayal Rungta CA Manish Goyal CA Pramod Dayal Rungta
Vice CA Anirban Datta CA Manish Goyal CA Subhash Chandra Saraf CA Sunil Kumar Sahoo CA Ranjeet Kumar Agarwal Chairman
Member- CA Pramod Dayal Rungta CA Subhash Chandra Saraf CA Anirban Datta CA Ranjeet Kumar Agarwal CA Anirban Datta Regional CA Manish Goyal CA Pramod Dayal Rungta CA Manish Goyal CA Pramod Dayal Rungta CA Manish Goyal Council CA Sunil Kumar Sahoo CA Sunil Kumar Sahoo CA Ranjeet Kumar Agarwal CA Anirban Datta CA Subhash Chandra Saraf
Member- CA Subodh Kumar Agrawal, CA Sumantra Guha CA Sumantra Guha CA Abhijit Bandyopadhyay CA Subodh Kumar Agrawal, Central Past President, ICAI Past President, ICAI Council
Corporate & other Allied Laws & Corporate Governance Management Accounting
Chairman CA Subhash Chandra Saraf CA Ranjeet Kumar Agarwal
Vice CA Manish Goyal CA Manish Goyal Chairman
Member- CA Ranjeet Kumar Agarwal CA Sunil Kumar Sahoo Regional CA Pramod Dayal Rungta CA Subhash Chandra Saraf Council CA Sunil Kumar Sahoo CA Pramod Dayal Rungta
Member- CA Subodh Kumar Agrawal, Past President, ICAI CA Sumantra Guha Central CA Abhijit Bandyopadhyay Council CA Sumantra Guha
EX-OFFICIO MEMBERS OF THE BRANCHES OF EIRC (2014 – 2015)
Siliguri Branch CA Pramod Dayal Rungta
Bhubaneswar & Cuttack Branch CA Anirban Datta
Guwahati, Dibrugarh & Tinsukia Branch CA Manish Goyal
Rourkela & Sambalpur Branch CA Sunil Kumar Sahoo
Asansol, Raniganj and Durgapur Branch CA Ranjeet Kumar Agarwal
Chairman, EICASA CA Pramod Dayal Rungta
Nominated Members to the CA Ranjeet Kumar Agarwal Managing Committee of EICASA CA Sunil Kumar Sahoo
Representative of Regional Council Members in the Study Circle of EIRC
Accountants’ Library, ASOCAS, Bidhan Nagar, South Kolkata, Rishra MII CA Pramod Dayal Rungta ACAE, BBD Bag, DTPA, Views Exchange, VIP Road, VITTA Salahkar, Bhowanipore MII CA Anirban Datta Central Kolkata, South City MII CA Sunil Kumar Sahoo Salt Lake, CA ISA, Camac Street CA Manish Goyal Eight By Two, Howrah, Madhya Kolkata, Salt Lake Sector V, Uttarpara, NTEC MII CA Ranjeet Kumar Agarwal
Representative of Regional Council Members in the CPE Study Chapter of EIRC Representative of Regional Council Members in the Study Group of EIRC
South Orissa CA Anirban Datta Nagoan, Shibsagar CA Pramod Dayal Rungta Jorhat CA Manish Goyal Agartala, Midnapore CA Anirban Datta Balasore CA Sunil Kumar Sahoo KantaBanji, Bargarh CA Sunil Kumar Sahoo Shillong, Gangtok CA Manish Goyal Port Blair, Silchar CA Ranjeet Kumar Agarwal
82nd Batch of Certificate Course of Concurrent Audit of Banks commencing at KolkataDate: 24th & 25th May 2014, 31st May & 1st June 2014, 7th & 8th June 2014 (Total - 06 Classes – Saturdays & Sundays) From: 10.00am to 5.30pm
For Registration: Please Contact – CA Debashis Sen, Mobile: 99034 24014, Email: [email protected] Course Cordinator: CA Subhash Chandra Saraf, Chairman, EIRC, Mobile: 98309 87579, Email: [email protected]
20 EIRC April 2014
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Seminar on Strategic Management on 20th April 2014 – Seen are CA R M Bagri, Chairman, CA Vinay Gupta, Vice Chairman, CA Pawan Agarwal, Secretary, Mr. P C Pattnaik, Speaker
Seminar on Bank Audit on 21st March 2014- CA Prashanta Kumar Bala, Sri S K Pal, AGM & CRM, UBI, Sambalpur Division
Rourkela Sambalpur
National Seminar on Companies Act 13 at Siliguri on 19th April. Inaugurated by CA.V.Murali , Chairman , CPE Committee , ICAI, Also seen are CA Sanjay Goyal, CA DebashisMitra, Past Chairman, EIRC, CA Manish Goyal, Treasurer, EIRC Seminar “ Discourse on Democracy “ by Silguri Branch on 12th April , 2014
Workshop on TDS on 12th April 2014 - L to R: CA. Rohit Agarwal; CA. Ashoke Kr Jalan; CA. K P Sarda, Chairman; CA. Asoke Kr Dey, JCIT (TDS), Kolkata, Speaker; CA. RakeshAgarwala Seminar on Companies Act, 2013 on 20th April 2014. The Speakers were CA MohitBhuteria, CA Anjan Kumar Roy
Seminar on Service Tax on works contract and valuation of services)- CA. Vijaya Batth, Treasurer Bhubaneswar Branch introducing the Guests (L to R) : CA. Manmohan Khemka, New Delhi, CA. Partha Sarathi Mishra, Chairman, Bhubaneswar Branch, Sri S.K. Panda, IRS, Chief Commissioner, Central Excise & Custom, Bhubaneswar and CA. Amit Kumar Agarwalla, Secretary, Bhubaneswar Branch.
Sub Regional conference on 27th April 2014 . Seen are CA Arijit Chakraborty, CA Manoj Sharma, Chairman, Durgapur Br. CA Pramod Dayal Rungta, Vice Chairman, EIRC, CA Anirban Datta, Secretary, EIRC and others
Branch Events
Siliguri
Guwahati
Bhubaneswar
Siliguri
Raniganj
Durgapur
EIRC April 2014 21
L-R : CS Ranjeet Kr.Kanodia,Member,EIRC of ICSI, CA Pramod Dayal Rungta, Vice Chairman, EIRC, CS Deepak Kr.Khaitan,Member,EIRC of ICSI,CS Arun Kr.Khandelia, Chairman, EIRC of ICSI, CA Subhash Chandra Saraf, Chairman, EIRC, CMA Chitra Agarwal, Chairperson, EIRC of ICAI (Cost), CA Anirban Datta, Secretary, EIRC of ICAI, CMA Pallab Bhattacharyya, Vice Chairman, EIRC of ICAI (Cost)
L-R: CA Kuntal P Shah, CA Pramod Dayal Rungta, Vice Chairman, EIRC, CA Subhash Chandra Saraf, Chairman, EIRC, CA Ajay Jain L-R: CA Neha Popat, CA Anirban Datta, Secretary, EIRC
(L-R) CA Radhey Shyam Bansal, Chairman, NIRC, CA Nitish Agarwal, Chairman, CIRC, CA Manoj Fadnis, Vice President, ICAI, CA K Raghu, President, ICAI, CA. P. V. Rajarajeswaran, Chairman, SIRC, CA Subhash Chandra Saraf, Chairman, EIRC, CA. Anil Bhandari, Chairman, WIRC L-R: CA Ranjeet Kumar Agarwal, Past Chairman, EIRC, CA Dhananjay J Gokhake
Seminar on Bank Audit in Computerised Environment / Restructured Advances / LFAR on 29th March 2014
Seminar on Deemed Dividend & Section 14A on 2nd April 2014
All Region Chairmen meet with the President, ICAI on 16th April 2014 at ICAI HQ
ICAI – ICWAI – ICSI Coordination Meeting on 3rd April 2014
Seminar on Concurrent Audit – Advances & Other Aspects on 16th April 2014
L-R: CA Sanjay Agarwal, CA Subhash Chandra Saraf, Chairman, EIRC, CA Amit Lodha, CA Pramod Dayal Rungta, Vice Chairman, EIRC
Seminar on Auditor’s Responsibility & Clarifications u/s 185 of the Companies Act 2013 on 7th April 2014
L – R : Mr.Gopal Mukherjee, DGIT (INV) East, CA Subhash Chandra Saraf, Chairman, EIRCL – R : CA Pramod Dayal Rungta, Vice Chairman, EIRC, Mr. Gopal Mukherjee, DGIT (INV) East, CA Subhash Chandra Saraf, Chairman, EIRC, CA S S Gupta, CA Jinesh Vanzara
Seminar on Search & Seizure & Rights & Obligations of the Assessee during Search & Seizure on 11th April 2014
EIRC Events
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Corporate Law Conclave One – 18th & 19th April 2014 Organised by Corporate Law & Corporate Governance Committee, ICAI & Hosted by EIRC, ICAI
Lighting of the Inaugural lamp: L – R: CA Khushroo B Panthaky, CA Pramod Dayal Rungta, Vice Chairman, EIRC, CA Subhash Chandra Saraf, Chairman, EIRC, CA Sumantra Guha, Council Member, ICAI, CA Nilesh S Vikamsey, Council Member, ICAI, Dr. Navrang Saini, RD, Eastern Region, MCA, CA Anirban Datta, Secretary, EIRC, CA Ranjeet Kumar Agarwal, Past Chairman, EIRC, CA Abhijit Bandyopadhyay, Council Member, ICAI
Third Knowledge Session: L – R: CA Pramod Dayal Rungta, Vice Chairman, EIRC, CA Aniruddh Shankar, CA Subhash Chandra Saraf, Chairman, EIRC, CA Abhijit Bandyopadhyay, Council Member, ICAI
First Knowledge Session: L – R: CA Khushroo B Panthaky, CA Subhash Chandra Saraf, Chairman, EIRC, CA Anirban Datta, Secretary, EIRC
Welcoming the Delegates: L – R : CA Subhash Chandra Saraf, Chairman, EIRC, CA Sumantra Guha, Council Member, ICAI, Dr. Navrang Saini, RD, Eastern Region, MCA, CA Nilesh S Vikamsey, Council Member, ICAI, CA Pramod Dayal Rungta, Vice Chairman, EIRC
Fourth Knowledge Session : L – R: CA K Sairam, CA Subhash Chandra Saraf, Chairman, EIRC, CA Anirban Datta, Secretary, EIRC
Second Knowledge Session: L – R: CA Vinod Kothari, CA Subhash Chandra Saraf, Chairman, EIRC, CA Nilesh S Vikamsey, Council Member, ICAI, CA Ranjeet Kumar Agarwal, Past Chairman, EIRC
Releasing the Official Souvenir: L – R: CA Sumantra Guha, Council Member, ICAI, Dr. Navrang Saini, RD, Eastern Region, MCA, CA Subhash Chandra Saraf, Chairman, EIRC, CA Nilesh S Vikamsey, Council Member, ICAI, CA Pramod Dayal Rungta, Vice Chairman, EIRC, CA Abhijit Bandyopadhyay, Council Member, ICAI
EIRC Events
EIRC April 2014 23
L–R: CA Pramod Dayal Rungta, Vice Chairman, EIRC, Brahmakumari B K Asmita, CA Subhash Chandra Saraf, Chairman, EIRC,
CA Subhash Chandra Saraf, Chairman, EIRC greets CA K Raghu, President, ICAI as CA Manish Goyal, Treasurer, EIRC looks on
L – R: - CA C M Bachhawat, Addl. Chief Secretary, Commerce & Industry, Govt. of West Bengal, CA Sumantra Guha, Council Member, ICAI, CA K Raghu, President, ICAI, Mr. Sanjay Mitra, Chief Secretary, Govt. of West Bengal, CA Subhash Chandra Saraf, Chairman, EIRC
Group photo of the Officers of EIRC with President ICAI CA K Raghu and Chairman EIRC CA Subhash Chandra Saraf
L – R: CA Abhijit Bandyopadhyay, Council Member, ICAI, CA Subhash Chandra Saraf, Chairman, EIRC, CA Sumantra Guha, Council Member, ICAI
L – R : CA Vinod Kothari, CA Anirban Datta, Secretary, EIRC, CA Abhijit Bandyopadhyay, Council Member, ICAI, CA Subhash Chandra Saraf, Chairman, EIRC, CA Sumantra Guha, Council Member, ICAI
The participants along with the Council Members
Seminar on “How to have work life balance for better prosperity and peaceful life” on 23rd April 2014
Welcoming President, ICAI at Eastern India Regional Office on 25th April 2014
Directors & CEO Conclave on 25th April 2014 at Oberoi Grand
Meeting with the Chief Secretary, Govt. of West Bengal on 25th April 2014 at ‘NABANNA’ – WB Govt. HQ
EIRC Events
24 EIRC April 2014
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Registered RN 27144/75 Registered KOL RMS / 227 / 2013-2015
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The Institute does not accept any respondibility for the views expressed in the contributions of advertisements published in the newsletter. Printed & Published by Mr. Atis Basu on behalf of The Institute of Chartered Accountants of India, Eastern India Regional Council Printed at CDC Printers Pvt. Ltd., Tangra Industrial Estate-II (Bengal Pottery), 45, Radhanath Chowdhury Road, Kolkata - 700 015, Tel : 2329 8856, Email : [email protected] and published from The Institute of Chartered Accountants of India, Eastern India Regional Council, 7, Anandilal Poddar Sarani (Russel Street) Kolkata-700 071, Phone : 91-33-30211140/41, Fax : 033-22272317, Website : www.eirc-icai.org, Email : [email protected]
BOOK POSTCA. Subhash Chandra Saraf – EditorCA. Pramod Dayal Rungta – Jt. EditorCA. Anirban Datta – MemberCA. Manish Goyal – MemberCA. Subodh Kumar Agrawal – MemberCA. Sumantra Guha – MemberCA. Abhijit Bandyopadhyay – Member
L -R: CA Manish Goyal, Treasurer, EIRC, CA Subhash Chandra Saraf, Chairman, EIRC, CA Bimal Jain, CA Anirban Datta, Secretary, EIRC
Mr. C M Chandolia, IRS, Commissioner of Service Tax CA Bimal Jain
L - R : CA V Raghuraman , CA Sunil B Gabhawalla, CA Subhash Chandra Saraf, Chairman, EIRC, CA Ranjeet Kumar Agarwal, Past Chairman, EIRC
CA V Raghuraman CA Sunil B Gabhawalla
Lighting the Inaugural Lamp: L – R: CA Manish Goyal, Treasurer, EIRC, CA Pramod Dayal Rungta, Vice Chairman, EIRC, CA Subhash Chandra Saraf, Chairman, EIRC, Mr. C M Chandolia, IRS, Commissioner of Service Tax, CA Anirban Datta, Secretary, EIRC, CA Sushil Kumar Goyal, Past Chairman, EIRC
Inaugural Session : L – R: CA Pramod Dayal Rungta, Vice Chairman, EIRC, Mr. C M Chandolia, IRS, Commissioner of Service Tax, CA Subhash Chandra Saraf, Chairman, EIRC, CA Sushil Kumar Goyal, Past Chairman, EIRC
Seminar on Service Tax on 26th April 2014