(Cont) The Institute of Chartered Accountants of India … Section/Image...Ms. Surbhi Jain (Vice-Chairperson,WICASA) presenting Mementoe to CA. Prafulla Chhajed, (CCM) Mr.Nikash Chandak

EDITORIAL BOARD

Chairman: CA. Ramanand Gupta

Vice- Chairman:

Secretary:

Treasurer:

Committee

Member

WIRC Nominee : CA. Sandeep Jain

9322231113

9869525956

9029877140

9320617447

9320473468

9594196090

9892194382

9820331010

9819788099

CA. Vimal Agrawal

CA. Umesh Mestry

CA. Kanhaiyalal B. Kothari

CA. Kishor Vaishnav

CA. Sumeet Doshi

CA. Preksha Jain

CA. Dayaram Paliwal

:

The Institute of Chartered Accountants of IndiaVASAI BRANCH OF WIRC NEWSLETTER

CA. Ramanand Gupta

CA. Umesh Mestry

CA. Kishor Doshi

CA. Lalit Munoyat

CA. Dushyant Chaudhari

CA. Ashutosh Vidwans

CA. Hemant Shah

CA. Alpesh Shah

CA. Prasad Chitre

CA. Haresh Kenia

CA. Haresh Mehta

CA. Sanjay Paharia

www.vasai-icai.org AUG & SEPT 2013

MANAGING COMMITTEE

VASAI BRANCH OF WIRC

`25/- For Members Only

The Institute of Chartered Accountants of India

NEWSLETTER

HappyGanesh Chaturthi

SUCCESS BY “SHARING THE KNOWLEDGE”

Editor: Published by Vasai Branch of Western IndiaRegional Council of The Institute of Chartered Accountants of India andprinted at Finesse Graphics and Prints Pvt. Ltd., 309, Parvati Ind. Est.,Sun Mill Compound, Lower Parel, Mumbai 400 013. Tel. : 40364600

The views and opinions expressed or implied are those of the authors orcontribution and do not necessarily reflect those of Vasai Branch.Unsolicited articles and transparencies are sent in at the owner's risk and thepublisher accepts no liability for loss or damage. Material in this publicationmay not be reproduced, whether in part or in whole, without the consent ofVasai Branch.

DISCLAIMER: The Vasai branch is not in any way responsible for the resultof any action taken on the basis of the advertisement published in theNewsletter. The members, however, may bear in mind the provision of theCode of Ethics while responding to the advertisements.

CA. Ramanand Gupta

Undelivered please return to :

The Institute of Chartered Accountants of India,

Vasai Branch of WIRCAddress: Amruta Building, Indralok Phase-II,New Golden Nest Road, Bhayandar (East), Thane - 401 105.Telephone: 65568900Email: [email protected]: www.vasai-icai.orgDesigned and Printed by Finesse • +91-22 4036 4600

The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter12| AUG - SEPT

2013

To

Ms. Neha Diwan (Member-WICASA) presentingMementoe to Dr.Mahesh Gour

Mr.Amish Shah (Secretary-WICASA), prsesentingFloral welcome to CA Nihar Jambusaria (CCM)

Mr. Nikash Mehta (Member-WICASA) presentingMementoe to CA Atul Bheda

(Past Chairman-WIRC)

Mr.Amish Shah (Secretary-WICASA) presentingBouquet to CA Unmesh Narvekar

(Past Chairman-Vasai Branch)

Lunched of WICASA E-Newsletter by the gracious hands CA Uttam Prakash Agarwal,CA. Jay Chhaira, CA Taru Ghia, CA Mangesh Kinare & his Team, CA Mahesh Madkholkar

at Student Conference

Mr. Jay Doshi (Treasurer-WICASA) presentingBouquet to CA. Charanjot Singh Nanda (CCM)

Mr. Aman Jain (Member-WICASA) presentingBouquet to CA Sunil Patodia, (RCM)

Ms. Surbhi Jain (Vice-Chairperson,WICASA)presenting Mementoe to CA. Prafulla Chhajed,

(CCM)

Mr.Nikash Chandak (Member-WICASA)presenting Bouquet to CA. Brijmohan Agarwal,


Mr. Deepak Jain taking Best Paper Presenters Award Ms. Piyali Chatterjee (1st Runner up) Ms. Nidhi Kothari (2nd Runner up)

Vasai WICASA Team Participants at the Sub Regional Conference Staff Group Photo taken in the presence of CA Ramanand Gupta,CA Dayaram Paliwal, CA Kishor Vaishnav & CA Preksha Jain

CA D. P. Revawala CA Arjun Saini CA Aniket Padhye CA Ashwin Dedhia CA Narendra Bhamwani CA Lalit Munoyat CA Rajesh Kotak CA Chandrahas Palan

(Cont...) GLIMPSES AT CA Students WIRC Sub-Regional Conference Dated 2nd & 3rd August 2013

Panel of Judges

Paper Presenter Winner at the Conference

GLIMPSES AT

CA Students WIRC Sub-Regional Conference Dated 2nd & 3rd August 2013

Special Session-I addressed by CA Atul Bheda (past Chairman-WIRC)

The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter

PHOTO–GALLERY

| 1102| AUG - SEPT

2013

AUG - SEPT

2013

Glimpses at Inauguration of New Branch Premises & CA Day (Dated on 30th June & 1st July 2013)

(L-R) CA Pramod Dhamankar (Past Chairman-Vasai Branch), CA Preksha Jain (Chairperson Vasai-WICASA), CA Sandeep Jain (WIRCNominee), CA Priti Savla (Treasurer-WIRC),CA Mangesh Kinare (Chairman-WIRC), CA Uttam Prakash Agarwal (Past President-ICAI),

CA Ramanand Gupta (Chairman-Vasai Branch), CA Jay Chhaira (CCM), CA Tarun Ghia (CCM),CA Mahesh Madkholkar (Chairman-WICASA) at Inauguration Session

Group Photo Taken at Inauguration Session

CA Preksha Jain (Chairperson-VasaiWICASA) Presenting Mementoe to

CA Mahesh Madkholkar(Chairman-WICASA)

Technical Session:-I chaired by CA Mahesh Madkholkar on Reverse Mechanisms in Service Tax andLocal Body Tax

Technical Session:-III chaired by CA Prafulla Chhajed on Use of Information Technology in Audit andSAP & ERP Implementation

Special Session-III addressed by CA. Charanjot Singh Nanda(CCM)

Technical Session:-II chaired by CA. Brijmohan Agarwal & CA Sunil Patodia onTransfer Pricing & Advance pricing Agreement and Taxation of Gift under Income Tax Act, 1961

Technical Session:-IV chaired by CA. Nihar Niranjan Jambusaria on Falling Rupee & its effects toIndian Economy and FDI in Retail in India

Special Session-II addressed by Dr. Mahesh Gour

Technical Session:-V chaired by CA Unmesh Narvekar on Overview on AccountingStandards and Forensic Accounting & Audit

CA Vimal Agrawal (Vice-Chairman,Vasai Branch) presenting Mementoe toCA Mangesh Kinare (Chairman-WIRC)

CA Sumeet Doshi(Committee Member-Vasai Branch)

presenting Bouquet toCA Priti Savla (Treasurer-WIRC)

CA. Kishor Vaishnav(Committee Member-Vasai Branch

presenting Bouquet toCA. Sandeep Jain (WIRC-Nominee)

CA Dayaram Paliwal(Committee Member-Vasai Branch)

presenting Mementoe toCA Jay Chhaira (CCM)

CA Kanhaiyalal Kothari(Treasurer-Vasai Branch) presentingBouquet to CA Tarun Ghia (CCM)

Inauguration of New Branch Premises

Seminar on Women Safety Awareness

Accounting Museums

Seminar on Investor Awareness Health Check Up

Felicitation of Senior CA Members

Tree Plantation

Distribution of Books & Sweets

Celebration CA Day - Flag Hoisting

CA Ramanand Gupta(Chairman-Vasai Branch) presenting

Mementoe to CA Uttam PrakashAgarwal (Past President-ICAI)


10|

Dear Professional Colleagues,

All’s well that ends well…

A hard beginning maketh a good ending….

It is good to rub, and polish our brain against that ofothers.

On the Occasion of Chartered Accountants Day, we havesuccessfully completed series of Activities on 30th June &1st July starting with Inauguration New Branch Premisesby the gracious hands of WIRC Chairman CA MangeshKinare. The chain of events comprised of Honoring SeniorCA Members, Investor Awareness Programme, HealthCheck-up at subsidized rates so on and so forth. India is aground for many celebrations and one of them wasChartered Accountants Day where we had a Flag Hoistingceremony at our newly inaugurated premises, followed byTree Plantation campaign at Bhayandar Chowpatty,Women Safety Awareness Programme and Distribution ofBooks & Sweets at a Rural School in Mira Road.

The dream of organizing a CA Students WIRC Sub-Regional Conference came true mainly because of theefforts of CA Subodh Agrawal – President of ICAI,CA. K. Raghu – Vice-President of ICAI, CA Vijay Garg –Chairman of Board of Studies and CA Mangesh Kinare –Chairman of WIRC.

By looking at the keen energetic response received fromour young turks in organizing the conference and makingit a huge success. The grand occasion was inaugurated byCA Uttam Prakash Agrawal – Past President of ICAI , CAMangesh Kinare – Chairman of WIRC, CA Jay Chhaira –Central Council Manager, CA Tarun Ghia – Central CouncilManager, CA Mahesh Madkholkar - WICASA Chairmanand various eminent dignitaries.

I am also thankful to all Technical Chairmen and SpecialSession Chairmen who chaired and enlightened the SubjectKnowledge and motivated the Paperwriter andParticipants. My heart fills with pride in acknowledgingthe efforts, enthusiasms and perseverance of those whowere committed to create their presence and theircontributions in making it a success and a mark ofprofessional triumph. We had also organized a Quiz andElocution Contest, wherein huge number of studentswhole heartily participated and graced the occasion bycontributing their knowledge and understanding. Becauseof the continuous and persistent efforts of all the affiliates,young aspirants, committee members and Vasai WICASAteam, we have been able to mark some successful events inour branch history. Our endeavor would be to continue tocontribute to the CA fraternity in all the means possible.

The onus lies in “Sharing the knowledge” and thus theopening of Training Centre and Library Facilities is just onestep towards it. The inauguration of Training Centre and

FROM CHAIRMAN’S DESK

AUG - SEPT

2013

Library of Vasai Branch was done by the gracious hands ofCA Prafulla Chhajed – Central Council Member. Theinaugural ceremony was followed by a Seminar on TaxAudit and E-filing of Tax Audit Report wherein largenumber of members had knowledge enhancement on thediscussed topics.

-It has indeed been a fantastic event, thememories of which shall be remembered & cherishedthroughout. I would extent my heartiest thanks toCommittee for Capacity Building of CA Firms & Small andMedium Practitioners for giving us the opportunity toorganise this IRRC.

I once again thank all of you for your strong support &neverending enthusiasm shown during this IRRCMauritius.

We have to change with the changing timesby adopting Information Technology to improve efficiencyand effectiveness of our operations (ERP/ CAAT/ GAS/Practice Management Software), and also offer valueadded services (Systems & Process Assurance/ IS Audit,Consultancy, e-governance) which are in increasingdemand. Technology education is now becoming a must!While the need to develop technologically is quite obvious,by looking at that Vasai Branch has commenced PostQualification Course on Information System Audit.

is schedule inOctober month which focus on key area such as Overviewof indirect taxes, value added tax, central excise duty,customs duty, service tax, GST and Foreign Trade Policy,we request you to take advantage of the said course byearly enrolment.

With Warm Regards

Chairman

Sixth IRRC at Bali

ISA Course-

Certificate Course on Indirect Taxes

CA Ramanand Gupta

Forthcoming events…

GLIMPSES AT


CA Uttam PrakashAgarwal

Past President-ICAI

CA BrijmohanAgarwal

Past Chairman-WIRC

CA Sunil KumarPatodia

RCM

CA Tarun GhiaCCM

CA MaheshMadkholkar

Chairman - WICASA

CA Prafulla ChhajedCCM

CA Atul BhedaPast Chairman - WIRC

CA UnmeshNarvekar

Past Chairman-Vasai Br.

Dr. Mahesh GourFaculty

CA Nihar JambusariaCCM

CA Charanjot SinghNandaCCM

CA Jay ChhairaCCM

Mr. Deepak Jain Mr. Chinar Kale Mr. Akhand Pratap Singh Mr. Ajit Kumar MishraMr. Hardik Shah

Ms. Nidhi Kothari Ms. Mamta Tiwari Mr. Swapnil Jain Mr. Sushil MishraMs. Pooja Rajbhar Ms. Piyali chatterjee

Mr. Smit Soni

Mr. PrathameshShenoy

Mr. Pratik Mehta

Mr. Nikhil Chhabra

Mr. K. Vignan

Mr. Guntas Singh Talwar

Mr. Lalit Sharma Mr. Ketan Inani

Session Chairmen

Paper Presenters


04| |09

FORTHCOMING PROGRAMMES

AUG - SEPT

2013

AUG - SEPT

2013

(L-R) Mr. Nikash Mehta,CA D. P. Revawala (Judge), CA Ramanand Gupta

(Chairman-Vasai Branch) & CA PramodDhamanakar (Past Chairman-Vasai Branch)

at Inauguration Session

Group Photo taken at Quiz and Elocution Contest Participants at the EventCA Preksha Jain(Chairperson-Vasai WICASA)

presenting Bouquet to CA D. P. Revawal(Judge of the Event)

1st Winner Team of Quiz Contest(Mr. Vatsal Hemani & Mr. Ashish Tailor)

2nd Winner Team of Quiz Contest(Mr.Sandeep Jaiswal & Mr.Rachit Sariya)

8th Annual GeneralMeeting of VasaiBranch held on27th July 2013

CA R.D. Lukad(Chief Guest), CA Ramanand Gupta(Chairman-Vasai Branch), CA Prafulla Chhajed, (CCM)

at Inauguration Session.

CA Deepak Bansal (Convenor-BhayandarCPE Study Circle) presenting bouquet toCA Rajesh Patil (Speaker) also seen CAUmesh Mestry (Secretary-Vasai Branch)

CA K.B.Kothari (Treasurer-Vasai Branch)presenting Mementoe to CA Rajiv Luthia(Speaker) also seen CA Kishor Vaishnav

(Committee Member)

CA Umesh Mestry(Secretary Vasai Branch)presenting bouquet to CA Saket Patwari(Speaker) also seen CA. Kishor Vaishnav(Committee Member) and CA Pramod

Dhamankar(Past Chairman-Vasai Branch)

Participants at Seminar

CA Ramanand Gupta (Chairman-Vasai Branch)presenting Bouquet to CA Prafulla Chhajed, (CCM)

CA U. C. Garg (Member-Vasai Branch) presentingBouquet to CA R.D. Lukad (Chief Guest)

Glimpses at Inauguration of Training Centre and Library(Dated -11th August, 2013)

Seminar on Tax Audit Dated-11th August, 2013 Seminar on Service Tax Dated-14th July, 2013

Glimpses at Quiz and Elocution Contest held on 10th August, 2013

IRCC at Bali Dated 14th August to 19th August 2013 Janmashtami Utsav Dated -29th August, 2013

Group Photo Taken at Conference Participants at Conference Group Photo taken at Janmashtami Utsav Dahi Handi Celebration

Detailed Programme Schedule

Seminar on Due-Diligence &Professional Opportunity inBank

CPE3

HRS

Post Qualification on InformationSystem Audit Course

The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter

Venue

Date

Timing

Speakers

Fees

Co-ordinators

Vasai Branch of WIRCAmruta Building, Indralok Phase-II,New Golden Nest Road,Bhayandar(East)

24th Aug, to 29th Sep. 2013(for 6 weekends, Every Sat & Sun.)

9.30 am to 5.30 pm

Mr. Jitendra SardesaiMr. N D KunduCA. Ramesh ShettyMr. Avinash GokhaleCA. Mayur ChokshiDr. Onkar Nath

17500/-

CA Dayaram Paliwal9820331010CA Kishor Vaishnav9892194382CA Ravi Gupta9819241018CA Bhanwar Borana8291454999

`

Venue

Date

Timing

Speakers

Fees

Co-ordinators

Ajmal Ramdev Building No.1,A-Wing, First Floor,Near Naresh Steel,Navghar Cross S.V. Road,Bhayander (E),

8th September 2013

9.30 am to 12.30 pm

200/-

CA Vimal Agrawal9320617447CA Sumeet Doshi9869525956CA Santosh Sharma9167966330

`

CA. Sunil Gangwal

FORTHCOMING PROGRAMMES FOR STUDENTS

Date Seminar on Timings Venue Speakers Co-ordinators Fees CPE

5th Sept. Industrial Visit at BSE 12.00 noon Mumbai - CA Preksha Jain Free -2013 9029877140

7th Sept. Seminar on E-filling of 6.00 pm to Branch Premises CA Manish Dedhia CA Preksha Jain Free -2013 Tax Audit 8.00 pm 9029877140

20th to Crash Course for IPCC & 9.30 am to Branch Premises Eminent Speaker CA Preksha Jain 100/- -22nd Sept. Final 5.30 pm 9029877140 Each Subject

October Mock Test for IPCC & 3.00 pm to Branch Premises - CA Preksha Jain 100/- -2013 Final 6.00 pm 9029877140

`

`

FORTHCOMING PROGRAMMES FOR MEMBERS


24th Aug Information System 9.30 am to Vasai Br. of WIRC Mr. Jitendra Sardesai CA Dayaram Paliwal 17,500/-to 29th Sept Audit(ISA) 5.30 pm Indralok Phase-II, Mr. N D Kundu 98203310102013 New Golden CA. Ramesh Shetty CA Kishor Vaishnav(6 weekends) Nest Road, Mr. Avinash Gokhale 9892194382Every Bhayandar (East) CA. Mayur Chokshi CA Ravi GuptaSaturday Dr. Onkar Nath 9819241018& Sunday CA Bhanwar Borana

8291454999

8th Sept. Seminar on Due-Diligence 9.30 am to Ajmal Ramdev CA. Sunil Gangwal CA Vimal Agrawal 200/- 3 Hrs2013 & Professional Opportunity 12.30 pm Bldg. No.1, A-Wing, 9320617447

in Bank 1st Floor,Near CA Summet DoshiNaresh Steel, 9869525956Navghar Cross S.V. CA Santosh SharmaRd. Bhayandar (E) 9167966330

5thOct to WorkshoponAccounting 6.00pmto VasaiBr. ofWIRC EminentSpeakers CAUmeshMestry 2000/-* 24Hrs

30th Oct Standards 9.00pm Indralok Phase-II, 93204734682013 (Every New Golden CA K. B. KothariSat & Wed) Nest Road, 9594196090

Bhayandar(East) CA Haresh Mehta9823137477

6th October Seminar on Investor 10.00 am Iskon Temple, CA. Santosh Sharma CA Dayaram Paliwal Free 2 Hrs2013 Awareness to 1.00 pm Mira Road 9820331010

(East) CA Deepak Bansal9320981019

6th October Seminar on Personality 1.00 pm Iskon Temple, Eminent Speakers CA Dayaram Paliwal Free -2013 Development to 2.00 pm Mira Road 9820331010

(East) CA Santosh Sharma9167966330

`

`

`

�

08| |05

DIRECT TAXES Law Update DETAILED PROGRAMMES SCHEDULE

AUG - SEPT

2013

AUG - SEPT

2013

— Compiled by — Haresh P. Kenia

|e-mail:[email protected]

|9821351838

I. Protocol amending DTAA between India &Bangladesh {216 TAXMANN 272 (ST.)}

II. CBDT INSTRUCTION – Rectification of Mistakes U/S.154 – Procedure to be followed on Receipt & Disposalof Rectification application filed u/s.154 of IncomeTax Act. {216 TAXMANN 275 (ST.)}

III. CBDT INSTRUCTION – Assessment u/s. 143 – General– Identification of unserved Intimation under section143(1) for cases processed prior to 31/03/2010. {216TAXMANN 277 (ST.)}

The Central Government vide Notification No. 50/2013dated 04/07/2013 notifies protocol amending theconvention between Government of the Republic of Indiaand the Government of Peoples Republic of Bangladeshfor the avoidance of double taxation and the prevention offiscal evasion with respect to taxes on Income. It directsthat all the provisions of the protocol shall be given effectto in the Union of India w.e.f. 13/06/2013.

The CBDT vide Instruction No. 3/2013 dated 05/07/2013directs that henceforth all application received u/s. 154 ofthe Income Tax Act by the concerned jurisdictionalauthorities shall be dealt with in the prescribed manner.

• The CBDT has given the direction on how to deal with theapplication u/s. 154 on its receipt at the Office whereAayakar Seva Kendra is a Centralized Dak receipt Centeror the offices where Dak is the received by theJurisdictional Assessing Officer.

• It has directed to maintain “Register of Rectification u/s.154” online.

• It has prescribed the time limit for the disposal of theapplication u/s. 154 and also prescribed the manner inwhich such rectification application should be processed.

• It has also given direction in case rectification applicationunder e-file returns.

• It has direct all CCsIT/DGsIT to insure that the aboveprocedure is strictly followed in their charge withimmediate effect and the maintenance and updating ofonline rectification register is monitored by the concernedsupervisory officers in their respective charges.

The above directions have been issued by the CBDT in viewof the order of the Hon’ble Delhi High Court videJudgment in the case of Court on its Own Motion v/s.UOI in W.P. (C) 2659/2012 dated 14/03/2013 has issuedseveral Mandamuses for necessary action by Income TaxDepartment one of which is regarding maintenance of“Rectification Register” in which details like receipt ofapplications under section 154 of the I.T. Act, theirprocessing and disposal are to be maintained. (Reference :Paras 16 to 18 of the order)

The CBDT vide Instruction No. 04/2013 dated05/07/2013 directed to the assessing authority to strictlyadherto or kept in mind timeline in respect of the matterrelated to the intimation/orders prior to 31/03/2010 asdesired by the Hon’ble Delhi High Court. It has alsodirected to strictly adherto the direction of the High Courtrelating to intimation u/s. 143(1) and disposal of

application u/s. 154 and also passing of order u/s. 245 ofthe Income Tax Act.

The above directions are issued in view of the order of theHon’ble Delhi High Court vide judgment in case of Courton its Own Motion v/s. UOI in W.P. (C) 2659/2012 dated14/03/2013 has issued Seven Mandamus for necessaryaction by Income Tax department one of which isregarding non enforcement of demand where nointimation under section 143(1) of Income Tax Act, 1961was sent by field-authorities in respect of returns whichwere processed prior to 31/03/2010.

The CBDT vide Instruction No. 05/2013 dated08/07/2013 directed that when an assessee approachesthe assessing officer with requisite details and particularsin the form of TDS certificate as an evidence against anymismatched amount, the said Assessing Officer willverify whether or not the deductor has made payment ofthe TDS in the Government Account and if the paymenthas been made, credit of the same would be given to theassessee. However, the Assessing Officer is at liberty toascertain and verify the true and correct position aboutthe TDS with the relevant AO (TDS). The AO may also, ifdeemed necessary, issue a notice to the deductor to compelhim to file correction statement as per the procedure laiddown.

The above directions has been issued by the CBDT in viewof the order of the Delhi High Court vide its judgment inthe case of Court on its Own Motion v UOI [2013]taxmann.com 31 (Delhi) has issued seven mandamusesfor necessary action by Income Tax department, one ofwhich is regarding the issue of non credit of TDS to thetaxpayer due to TDS mismatch despite the assesseefurnishing before the Assessing Officer, TDS Certificateissued by the deductor..

The Central Government vide its Notification No.43/2013 dated 12/06/2013 gives the agreement betweenthe Government of Republic of India and the Governmentof the principality of Monaco for the exchange ofinformation relating to tax matter. It shall be given effectto in the Union of India w.e.f. 27/03/2013.

The CBDT vide Notification No. 41/2010 dated10/06/2013 gives Income Tax (Sixth Amendment) Rules,2013. It has come into force 01/04/2013. It substituteForm 3 CEB being Report from an accountant to befurnished u/s. 92 E relating to international transactionsand specific domestic transactions. It also amends Rule10A, 10AB, 10B, 10C, 10D & 10E so as to cover theprovision relating to specific domestic transaction.

The CBDT vide notification No. 42/2013 dated11/06/2013 gives Income Tax (Seventh Amendment)Rules, 2013. It’s came into effect form 01/04/2013. Itssubstitute ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7.

IV. CBDT INSTRUCTION – Credit for TDS u/s. 199 to anassessee when the tax deducted has been depositedwith the revenue by deductor. {216 TAXMANN 279(ST.)}

V. DTAA Agreement for Exchange of information withrespect to taxes with Foreign Countries – Principalityof Monaco. {216 TAXMANN 3 (ST.)}

VI. SUBSTITUTION OF FORM NO. 3 CEB – Amendment inRules 10A, 10AB, 10B, 10C, 10D & 10E. {216TAXMANN 9 (ST.)}

VII. Amendment in Rule 12 and substitution of Forms ITR2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7. {216 TAXMANN22 (ST.)}

Workshop on AccountingStandards

CPE24

HRS

Seminar on InvestorAwarness

CPE2

HRS


Venue

Date

Timing

Speakers

Fees

Co-ordinators

Iskon TempleMira Road (East)

6th October 2013

10.00 am to 1.00 pm

CA Santosh Sharma

Free for All

CA Dayaram Paliwal9820331010CA Deepak Bansal9320981019

Venue

Date

TimingSpeakersFees

Co-ordinators

Vasai Branch of WIRCAmruta Building, Indralok Phase-II,New Golden Nest Road,Bhayandar(East)5th to 30th October 2013(Every Sat & Wed)6.00 pm to 9.00 pmEminent Speaker

2000/- For Members all 8 Days300/- For each Day250/- For Student each day

CA Umesh Mestry9320473468CA K. B. Kothari9594196090CA Haresh Mehta9823137477

`

`

(Including Course Material & High Tea)

`

Seminar on 12 Days Certificate

Course on Indirect Taxes

CPE70

HRS

Venue

Date

Timing

Fees

Co-ordinators


19th Oct to 1st Dec 2013 (every Sat & Sun)

9.30 am to 5.30 pm

15000/-

CA Umesh Mestry9320473468CA Kishor Vaishnav9892194382CA Haresh Mehta9823137477CA Unmesh Narvekar9821236179CA Pramod Dhamankar9987155522CA Deepak Bansal9320981019

`


S.No.Topics to be covered in the class room session

Common Concepts in Central IDT

Central Excise

Customs

Foreign Trade Policy

VAT Concepts/ CST

Service Tax

GST Road Map

1 Areas of Opportunity – Employment/Practice

2 Overview of Indirect Taxation in India

3 Impact of Indirect Taxes on Products/Services

1 Relevant Aspects of Constitution

2 Relevant Allied Laws vis a vis Indirect Taxes

3 Classification & Exemption

4 CENVAT/Set Off

5 Valuation Principles

6 Provisions for Demand

7 Refunds

8 Self Assessment

1 Excisable Goods

2 Manufacture, Removal

3 Valuation

4 CENVAT – Capital Goods, Inputs, Input Services

5 SSI & Other major Exemptions

6 Job Work

7 Basic Procedures

8 Demands/Penalties

9 Common Errors

10 Audit External/Internal

1 History,Purpose,Levy,Types,taxable event

2 Import Valuation/Import procedure, SEZ and Warehousing

3 Classification of goods under Customs

4 Exemptions from custom duty

5 Export Valuation/Export procedure, Import /Export Valuation

6 Duty drawback and Export Promotion schemes

7 Policy Demand and offences, Refund of customs duty,

8 Penalties and Appeals

1 Provisions relating to Foreign Trade

1 VAT Concepts-levy, Advantages and classification

2 Input tax credit with restrictions and schemes

3 Registration, Documentation under VAT law

4 Deemed Sales/Interstate works contract, Composition schemes

5 Levy of CST/Import and export with relevant statutory forms

6 Demand and penalties

7 Accounts and Audit

1 Levy and Negative List

3 Valuation under Service tax law

4 Composition scheme

5 CENVAT Credit

6 Major Exemptions/Abatements

7 Export Rules/Import Rules/Place of Provision of Service Rules

8 Demand And Appeals under service tax law

9 Basic Procedure - assessee

10 Basic Procedure – department

11 Service tax Rules - Audit

12 Point of Taxation Rules

13 Common Errors

14 Refunds and rebates under service tax law

1 Road Map to GST

2 Constitutional Amendment bill

3 Role of Professionals

|07|07The Institute of Chartered Accountants of India Vasai Branch of WIRC NewsletterAUG - SEPT

201306|

RECENT Case Laws &OTHER DEVELOPMENT/AMENDMENTS


AUG - SEPT

2013

The Appellant appealed against the Order of the Department before thelower Appellate Authority who rejected the appeal and hence the Appellantappealed before the Hon’ble CESTAT.

It was held by the Hon’ble CESTAT that the Appellant is not required to payservice tax again in as much as they have paid service tax to theGovernment albeit under the wrong accounting code.

The Hon’ble CESTAT relied on the Board’s clarification in CircularNo.58/07/2003-CX(ST) dated May 20, 2003 . The Boardhas clarified in the Circular that an assessee shall not be asked to payservice tax again if he has paid service tax under a wrong accounting code.Further, similar decision was made by the Hon’ble Delhi Tribunal in thecase of

wherein it was held on basis of theCircular that the assessee is not liable to pay service tax again if he hasdischarged the service tax liability even though under a wrong accountingcode.

Therefore, relying on the Circular and the above judgment, the Hon’bleMumbai Tribunal rejected the contention of the authorities and decided thecase in favour of the Appellant.

The Finance Ministry has issued a Press Release dated 01/03/2013clarifying that sub-section (5) of section 90 proposed to be inserted by theFinance Bill, 2013 does not mean that the TRC produced by a resident of acontracting state could be questioned by the Income Tax Authorities inIndia. It has been emphasized that the TRC produced by a resident of acontracting state will be accepted as evidence that he is a resident of thatcontracting state and the Income Tax Authorities in India will not gobehind the TRC and question his resident status. It is also clarified that inthe case of Mauritius, Circular No.789 dated 13/04/2000 continues to bein force, pending ongoing discussions between India and Mauritius.

Pursuant to the judgement of the Delhi High Court in352 ITR 273, the CBDT has issued Instruction No.5/2013

F.No.275/03/2013-IT(B), dated 08/07/2013 stating that when anassessee approaches the AO with requisite details and particulars in theform of TDS certificate as evidence against any mismatched amount, theAO will grant credit of TDS to the assessee after ascertaining whether thedeductor has made payment of the TDS to the Government.

The Service Tax Voluntary Compliance Encouragement Scheme 2013 wasintroduced in the Budget 2013-14. The Scheme has since been notifiedw.e.f. 10th May, 2013. The specifics of the Scheme are contained in ChapterVI of the Finance Act, 1994. A detailed Notification No. 10/2013-ST dated13/05/2013 has been issued inter alia prescribing:

1. (a) Form of the Declaration to be made,(b) Form of the Acknowledgement of the Declaration and(c) Form of the Acknowledgement of Discharge.

2. The Board has also clarified certain vital aspects of the said Scheme videCircular No. 169/4/2013-ST dated 13/05/2013.

3. For the benefit of the trade, the said Notification No.10/2013-ST dated13/05/2013 and the above said Circular No.169/4/2013-ST dated1305/2013 can be referred to.

4. For the purpose of this Scheme, following officer is specified as ‘DesignatedAuthority’ within the meaning thereof as contemplated in Section105(1)© of the Finance Act, 1994. All the declarations are required to befiled with him.Assistant/Deputy Commissioner of Service Tax (Technical), Room No. 303,New Central Excise Building,115, Maharshi Karve Road, Churchgate,Mumbai-400020. Tel. No. 022-22034421 and 022-22034425.

5. It is clarified that, in terms of Rule 3 of the Service Tax VoluntaryCompliance Encouragement Scheme Rules, 2013, any person, who wishesto make a declaration shall take registration, if not already registered,before making this declaration, under the Scheme.

6. For any clarification, letter may be sent to Commissioner of Service Tax-Ion same address. Further, if any Trade Association wishes to organize anOpen House meeting, the officers of the Department may also attend toclarify the doubts, if any. Trade Associations may send their request toCommissioner, Service Tax-I, in this regard.

7. All the Trade Associations are requested to bring the contents of this TradeNotice to the notice of their members in particular and the Trade in general.

COMMISSIONER, SERVICE TAX-I, MUMBAI.

(“the Circular”)

3) Finance Ministry Clarification Regarding Tax Residency Certificate(TRC)

4) CBDT Directive regarding grant of TDS credit in mis-matched cases :

Court on Its OwnMotion vs. UOI

5) Appointment of Designated Authority for Service Tax VoluntaryCompliance Encouragement Scheme:

OFFICE OF COMMISSIONER OF SERVICE TAX-I, MUMBAI

5th Floor, New C. Excise Bldg., 115, M. K. Road, Churchgate,Mumbai-400 020.

(SUSHIL SOLANKI) Sd/-27/05/2013

F. No. V/ST-I/Tech-II/Trade Notice/2013-14/827/13.

Pepsico India Holding Pvt. Ltd. vs. Commissioner of Central Excise,Allahabad 2010 (255) ELT 299 (Tri-Del)

Tel. 022-22034425. FAX.022- 22060618, 022-22072942

TRADE NOTICE NO. 04/13-14-ST-I DATED 27/05/2013

— Compiled by

RECENT SUPREME COURT DECISIONS

1) CIT vs. Textool

— CA. Hemant R. Shah |e-mail: [email protected] | 9869011148

Co. Ltd. (Supreme Court)Though section 36(1)(v) requires direct payment to thegratuity trust fund, payment to the LIC Group GratuityScheme is also allowable

(257 ITR 39(Mad)

RECENT HIGH COURT DECISIONS

Shervani Hospitalities Ltd. Vs CIT (Delhi) [ITA No.804/2011, Date ofdecision 28/05/2013]Bonafide claim of assessee for an expenditure to be revenue in naturewhich in itself is debatable, do not attracts provision of section271(1)©:

The assessee set up a gratuity fund which was dulyapproved by the CIT. However, instead of making payment

to the fund directly, the assessee paid an amount of Rs.50 lakhs as initialcontribution and an amount of Rs.5 lakhs as annual premium to the LifeInsurance Corporation (LIC) pursuant to the group Life Assurance Schemeframed by the LIC for the benefit of the employees of the assessee. The AOdisallowed the claim for deduction on the ground that payment towards thegratuity fund was not made to an approved gratuity fund and was notallowable U/s 36(1)(v). The CIT(A), Tribunal and High Court

upheld the assessee’s claim on the basis that the payment to LIC underthe Group Life Assurance Scheme was for the exclusive benefit of the employeesof the assessee under the Policy issued by it and that the conditions stipulated insection 36(1)(v) had not been violated. On appeal by the Department to theSupreme Court, the Apex Court dismissed the appeal on the following ground:While it is true that a fiscal statute has to be construed strictly and nothingshould be added to or subtracted from it, yet a strict construction of a provisiondoes not rule out the application of the principles of reasonable construction togive effect to the purpose and intention of any particular provision of the Act.From a bare reading of section 36(1)(v), it is manifest that the real intentionbehind the provision is that the employer should not have any control over thefunds of the irrevocable trust created exclusively for the benefit of theemployees. On facts, it is evident that the assessee had absolutely no controlover the fund created by the LIC for the benefit of the employees of the assesseeand further all the contribution made by the assessee in the said fund ultimatelycame back to the Textool Employees Gratuity Fund, approved by the CIT. Thus,the conditions stipulated in section 36(1)(v) were satisfied

1)

Issue raised by the assessee was debatable and capable of two views. Theassessee had an arguable case or had taken a bonafide plea. The assesseehad given his explanation and categorically and clearly stated the true andfull facts in the Return itself. He did not try to camouflage or cover up theexpenses claimed. It is not uncommon and unusual for an assessee tobonafidely claim a particular expenditure as a revenue deduction andexpense but not succeed. Every addition or disallowance made does notjustify and mandate levy of penalty for concealment U/s 271(1)(c) of theAct. Levy of penalty is not an automatic consequence when an addition ismade by disallowing an expense and by not accepting the interpretationgiven by the assesse. As stated above, the plea and contention raised by theassessee has to be examined before it is decided whether or not the assesseehas been able to bring his case within the four corners of the Explanation.Explanation 1 clearly stipulates that the penalty can be imposed when thedetails furnished by the assessee are found to be incorrect, erroneous andfalse. Merely making a claim which is held as not sustainable under lawshould not lead to penalization, when the assessee had furnished fulldetails in the Return itself and the claim is a debatable, reasonablyplausible or may well have been accepted. (See

2010 322 ITR 158 (SC),2011 329 ITR 572 (Del.), ITA No. 1190/2011 decided

on 19/07/2012, by this Court).

In (2010) 329 ITR 483 (Del.), it has beenheld that when a question arises, which is debatable but the claim of theassessee is not finally accepted, penalty U/s 271(1)(c) should not beimposed. Divergent views on legal interpretation of tax provisions havebeen subject matter of plethora of decisions. It is not necessary that thereshould be uniformity or consistency of opinion on aspects of law and theassessee must accept interpretation against him, even when a favourableview is credible and tenable. Penalty cannot be imposed because assesseehad taken a particular legal stand unless the assessee had not disclosedfacts before the Department/authorities and is unable to establish hisbonafides on the legal interpretation put forward.

Reference can also be made to 2012348 ITR 339 and ITA No. 67/2012 decided on 11thOctober, 2012 by the Delhi High Court.

In view of the above, the question of law is answered in negative and infavour of the appellant assessee and it is held that penalty U/s 271(1)(c) ofthe Act is not justified and is directed to be deleted.

CIT vs. Reliance Petro

Product Pvt. Ltd. CIT vs. Dharampal Premchand

Ltd. CIT vs. Societex

Devsons Logistics Pvt. Ltd. vs. CIT

CIT vs. Brahmputra Consortium Ltd.

Pramod Mittal vs. CIT

2) Maruti Suzuki India Ltd. Vs. DCIT (Delhi) (Date ofjudgment:13/05/2013)

Assessment

RECENT TRIBUNAL DECISIONS

1) Kunal Surana vs. ITO (ITAT Mumbai)Requirements of a valid affidavit in support of delay condonationapplication set out:

2) Y.P.Trivedi vs. JCIT (ITAT Mumbai)Delay in filing appeal due to CA’s fault is bona fide & must becondoned:

(Mst.Katiji

3) Apollo Tyres Ltd vs. DCIT (ITAT Cochin)No disallowance U/s 40(a)(ia) for default of short-deduction of TDS:

No addition during reassessment of a particular expense which has beenduly examined by the AO during Original Assessment proceedings.Whether notice U/s 148 can be issued for disallowance of a particularexpense which has been duly examined by the AO during theproceedings by asking for specific details but not mentioned in AssessmentOrder.

In this case, the assessee incurred certain losses on account of non-recovery of money and accordingly reduced from the income. The amountso written off was duly examined by the AO and no adjustment was madefor it. Later, a notice U/s 148 was issued stating that the said issue has notbeen examined earlier as not specified in the Assessment Order. TheHon’ble High Court, considering the fact that the issue was examined asquery was raised by AO, a notice for another examination cannot be issued,as it would amount to mere change of opinion and the appeal wasdismissed accordingly.

The assessee filed an appeal before the CIT(A) which was delayed by 4months. The delay was explained to have been caused by the fact that theassistant of the Authorized Representative (AR) kept the papers in a drawerand overlooked them till a penalty notice was received. The CIT(A) declinedto condone the delay and dismissed the appeal. The assessee filed an appealbefore the Tribunal and also filed an affidavit of the AR in support of theapplication for condonation of delay. The Tribunal dismissed theapplication and the appeal on the following grounds:

The affidavit produced by the AR is not a valid affidavit because there is noverification appended on it and there is no mention as to which of the parasare true to the knowledge of the deponent and which of the paras of theaffidavit are true to his belief.The affidavit is also not a duly sworn affidavit as required under Rule 10 ofthe ITAT Rules, 1963 because it has not been properly endorsed by thenotary regarding the oath of affirmation before him by the executant ofthe affidavit.The notary has put his signatures under his name seal but there is nomention whether the oath was administered to the signatory or if done so,when and where it was administered. Even words “Sworn before me” aremissing. If the affidavit does not certify or endorse the fact that oath hasbeen administered, it remains a waste paper.

On merits, the case is one of gross negligence and inaction on the part of theassessee and the AR. The explanation that the AR’s assistant kept thepapers in his drawer and failed to take necessary action is vague andevasive and not sufficient cause for condonation. There is also no generalprinciple saving the party from all mistakes of its counsel. There is alsototal inaction and gross negligence on the part of the assessee for notinquiring the status of the appeal from the AR. Though courts adopt liberalview while condoning delay on the principle that technicalities should notprevail over the cause of justice, litigants should not take the courts forgranted.

The assessee filed an appeal before the Tribunal which was delayed by 496days. In the application for condonation of delay, the assessee claimed thathe had handed over the papers to his Chartered Accountant (CA) and thatthe latter had mixed up the papers with other papers in his office which ledto the delay. The Department opposed the application on the ground thatthere was “gross negligence” on the part of the assessee and that sufficientcause for the delay was not explained. The Hon. Tribunal decided in favourof the assessee on the following grounds:

The facts do not suggest that the assessee has acted in a malafide manner orthat the reasons explained are only a device to cover an ulterior purpose. Itis a settled proposition of law that Courts should take a lenient view on thematter of condonation of delay provided the explanation and the reasonfor delay is bonafide and not merely a device to cover an ulterior purpose oran attempt to save limitation in an underhand way. The Court should beliberal in construing sufficient cause and should lean in favour of suchparty. Whenever substantial Justice and technical considerations areopposed to each other, cause of substantial Justice has to be preferred. Onfacts, the reasons explained by the assessee show that due to bonafidemistake and inadvertence, the appeal could not be filed within the period oflimitation. Accordingly, the delay of 496 days has to be condoned

167 ITR 471(SC) referred).

The assessee made payments to various contractors. Though tax wasdeducted at source, it was at a rate lower than that prescribed under theAct. The AO & CIT(A) held that as there was a default by the assessee, the

expenditure had to be disallowed U/s 40(a)(ia). On appeal by the assesseeto the Tribunal, the Hon. Tribunal allowed the appeal on the followinggrounds:A combined reading of section 201(1A) and section 40(a)(ia) shows thatwhile a case of short-deduction of TDS is covered by section 201(1A), it isnot covered by section 40(a)(ia). There is an obvious omission to includeshort deduction/lesser deduction in section 40(a)(ia). Therefore, in case ofshort/lesser deduction of tax, the entire expenditure whose genuinenesswas not doubted by the Assessing Officer, cannot be disallowed

(Cal HC) & 49 SOT 448 referred.

(I.T.A.No.6393/Del/2012)

Assessing Officer (AO) ignored the very fact that there was a temporarylull in the business of the assessee and it was not a cessation of businessactivity. Therefore, the AO disallowed the expenses incurred by theassessee for continuation of its business which deserve to be allowed.During the argument, the AR has submitted a detail of gross receipts fromA.Y.2004-05 to A.Y.2012-13 which reveals that except assessment yearunder consideration in this appeal i.e. A.Y.2009-10, the gross receipt of theassessee is of high volume during the preceding and subsequent yearswhich clearly reveals that there was a temporary lull in the businessactivity of the assessee during the year under consideration in this appeal.

The detail of gross receipts has not been disputed by the DR which clearlyreflects that during the subsequent years, the business of the assesseeagain continued and the assessee undertook substantial business activitiesduring this period. In this situation, the Tribunal held that there was atemporary lull during the year under consideration in the businessactivity of the assessee and the business activities were again started by theasessee during the subsequent years by receiving huge amounts.

In view of above, it was held that the AO wrongly disallowed the expensesand made addition to the income of the assessee which was rightly deletedby the CIT(A) by passing the impugned Order.

The assessee was engaged as a consultant by Essar Oil Ltd. to provideconsultancy services in connection with sale of its energy business. As theconsultancy required high level technical and industry knowledge, theassessee engaged KPMG LLP, USA & KPMG Consulting LP, Canada forrendering professional services and paid Rs.20 lakhs & Rs.13 lakhsrespectively. The AO held that the said fees constituted “royalty” U/s9(1)(vi) & Article 12 and as there was no TDS, the amount was to bedisallowed U/s 40(a)(i). This was reversed by the CIT(A). On appeal by theDepartment, the Tribunal dismissed the appeal on the following grounds:

The professional services rendered do not fall in the definition of “royalty”in Article 12 of the DTAA. It was purely a

which were rendered outside India and

Thus, there was no liability to deduct TDS and consequentlyno disallowance U/s 40(a)(i) can be made.

The CBDT has issued a Press Release dated Nil stating that CircularNo.2/2013 dated 26/03/2013

has been rescinded and that Circular No.3 dated 26/03/2013

has been amended andreissued with a view to clear all ambiguities in the matter.

Pursuant thereto Circular No.05 /2013 [F. No. 500/139/2012-FTD-I],dated 29/06/2013 has been issued to withdraw Circular No.2/2013 dated26/03/2013 and Circular No.6 dated 29/06/2013 has been issued in placeof Circular No.3 dated 26/03/2013. In the new Circular No.6 dated29/06/2013, the CBDT has laid down guidelines for identifyingDevelopment Centres as a contract R&D service provider withinsignificant risk for transfer pricing purposes.

In an important judgement of the Hon’ble CESTAT, Mumbai in the case of

thefollowing issue was decided:

M/s Arcadia Share & Stock Brokers Pvt. Ltd. wasengaged in rendering stock broker services. However, the Appellantdischarged service tax liability under the wrong accounting code i.e.service tax was remitted under the accounting code for education cess. TheDepartment confirmed demand against the Appellant for non-payment ofservice tax under proper accounting code.

(S.K.Tekriwal Chandabhoy and Jassobhoy

4) ADIT, International Taxation vs. Dolphin Drilling Ltd. (ITAT DELHI)A.Y.2009-10

Expenditure incurred during temporary lull of business should be anallowable expenditure:

5) KPMG India Pvt. Ltd vs. DCIT (ITAT Mumbai)

Rendering of services is not “supply of knowledge or information” tobe “royalty”

professional service forconsultancy not for supply ofscientific, technical, industrial or commercial knowledge orinformation.

OTHER RECENT AMENDMENTS/DEVELOPMENTS

1) CBDT Press Release Withdrawing/Amending Circulars on TransferPricing:

2) No liability to pay service tax again if the assessee has deposited theservice tax under wrong accounting code:

Arcadia Share & Stock Brokers Pvt. Ltd. Vs. Commissioner of CentralExcise & Customs, Goa [2013 (7) TMI 330 - CESTAT MUMBAI]

(“the Appellant”)

(Circular on application of profit splitmethod)(Circular on conditions relevant to identify Development Centres engaged incontract R&D services with insignificant risk)


|07|07The Institute of Chartered Accountants of India Vasai Branch of WIRC NewsletterAUG - SEPT

201306|



AUG - SEPT

2013

The Appellant appealed against the Order of the Department before thelower Appellate Authority who rejected the appeal and hence the Appellantappealed before the Hon’ble CESTAT.

It was held by the Hon’ble CESTAT that the Appellant is not required to payservice tax again in as much as they have paid service tax to theGovernment albeit under the wrong accounting code.

The Hon’ble CESTAT relied on the Board’s clarification in CircularNo.58/07/2003-CX(ST) dated May 20, 2003 . The Boardhas clarified in the Circular that an assessee shall not be asked to payservice tax again if he has paid service tax under a wrong accounting code.Further, similar decision was made by the Hon’ble Delhi Tribunal in thecase of

wherein it was held on basis of theCircular that the assessee is not liable to pay service tax again if he hasdischarged the service tax liability even though under a wrong accountingcode.

Therefore, relying on the Circular and the above judgment, the Hon’bleMumbai Tribunal rejected the contention of the authorities and decided thecase in favour of the Appellant.

The Finance Ministry has issued a Press Release dated 01/03/2013clarifying that sub-section (5) of section 90 proposed to be inserted by theFinance Bill, 2013 does not mean that the TRC produced by a resident of acontracting state could be questioned by the Income Tax Authorities inIndia. It has been emphasized that the TRC produced by a resident of acontracting state will be accepted as evidence that he is a resident of thatcontracting state and the Income Tax Authorities in India will not gobehind the TRC and question his resident status. It is also clarified that inthe case of Mauritius, Circular No.789 dated 13/04/2000 continues to bein force, pending ongoing discussions between India and Mauritius.

Pursuant to the judgement of the Delhi High Court in352 ITR 273, the CBDT has issued Instruction No.5/2013

F.No.275/03/2013-IT(B), dated 08/07/2013 stating that when anassessee approaches the AO with requisite details and particulars in theform of TDS certificate as evidence against any mismatched amount, theAO will grant credit of TDS to the assessee after ascertaining whether thedeductor has made payment of the TDS to the Government.

The Service Tax Voluntary Compliance Encouragement Scheme 2013 wasintroduced in the Budget 2013-14. The Scheme has since been notifiedw.e.f. 10th May, 2013. The specifics of the Scheme are contained in ChapterVI of the Finance Act, 1994. A detailed Notification No. 10/2013-ST dated13/05/2013 has been issued inter alia prescribing:

1. (a) Form of the Declaration to be made,(b) Form of the Acknowledgement of the Declaration and(c) Form of the Acknowledgement of Discharge.

2. The Board has also clarified certain vital aspects of the said Scheme videCircular No. 169/4/2013-ST dated 13/05/2013.

3. For the benefit of the trade, the said Notification No.10/2013-ST dated13/05/2013 and the above said Circular No.169/4/2013-ST dated1305/2013 can be referred to.

4. For the purpose of this Scheme, following officer is specified as ‘DesignatedAuthority’ within the meaning thereof as contemplated in Section105(1)© of the Finance Act, 1994. All the declarations are required to befiled with him.Assistant/Deputy Commissioner of Service Tax (Technical), Room No. 303,New Central Excise Building,115, Maharshi Karve Road, Churchgate,Mumbai-400020. Tel. No. 022-22034421 and 022-22034425.

5. It is clarified that, in terms of Rule 3 of the Service Tax VoluntaryCompliance Encouragement Scheme Rules, 2013, any person, who wishesto make a declaration shall take registration, if not already registered,before making this declaration, under the Scheme.

6. For any clarification, letter may be sent to Commissioner of Service Tax-Ion same address. Further, if any Trade Association wishes to organize anOpen House meeting, the officers of the Department may also attend toclarify the doubts, if any. Trade Associations may send their request toCommissioner, Service Tax-I, in this regard.

7. All the Trade Associations are requested to bring the contents of this TradeNotice to the notice of their members in particular and the Trade in general.

COMMISSIONER, SERVICE TAX-I, MUMBAI.

(“the Circular”)

3) Finance Ministry Clarification Regarding Tax Residency Certificate(TRC)

4) CBDT Directive regarding grant of TDS credit in mis-matched cases :

Court on Its OwnMotion vs. UOI

5) Appointment of Designated Authority for Service Tax VoluntaryCompliance Encouragement Scheme:

OFFICE OF COMMISSIONER OF SERVICE TAX-I, MUMBAI

5th Floor, New C. Excise Bldg., 115, M. K. Road, Churchgate,Mumbai-400 020.

(SUSHIL SOLANKI) Sd/-27/05/2013

F. No. V/ST-I/Tech-II/Trade Notice/2013-14/827/13.

Pepsico India Holding Pvt. Ltd. vs. Commissioner of Central Excise,Allahabad 2010 (255) ELT 299 (Tri-Del)

Tel. 022-22034425. FAX.022- 22060618, 022-22072942

TRADE NOTICE NO. 04/13-14-ST-I DATED 27/05/2013

— Compiled by

RECENT SUPREME COURT DECISIONS

1) CIT vs. Textool

— CA. Hemant R. Shah |e-mail: [email protected] | 9869011148

Co. Ltd. (Supreme Court)Though section 36(1)(v) requires direct payment to thegratuity trust fund, payment to the LIC Group GratuityScheme is also allowable

(257 ITR 39(Mad)

RECENT HIGH COURT DECISIONS

Shervani Hospitalities Ltd. Vs CIT (Delhi) [ITA No.804/2011, Date ofdecision 28/05/2013]Bonafide claim of assessee for an expenditure to be revenue in naturewhich in itself is debatable, do not attracts provision of section271(1)©:

The assessee set up a gratuity fund which was dulyapproved by the CIT. However, instead of making payment

to the fund directly, the assessee paid an amount of Rs.50 lakhs as initialcontribution and an amount of Rs.5 lakhs as annual premium to the LifeInsurance Corporation (LIC) pursuant to the group Life Assurance Schemeframed by the LIC for the benefit of the employees of the assessee. The AOdisallowed the claim for deduction on the ground that payment towards thegratuity fund was not made to an approved gratuity fund and was notallowable U/s 36(1)(v). The CIT(A), Tribunal and High Court

upheld the assessee’s claim on the basis that the payment to LIC underthe Group Life Assurance Scheme was for the exclusive benefit of the employeesof the assessee under the Policy issued by it and that the conditions stipulated insection 36(1)(v) had not been violated. On appeal by the Department to theSupreme Court, the Apex Court dismissed the appeal on the following ground:While it is true that a fiscal statute has to be construed strictly and nothingshould be added to or subtracted from it, yet a strict construction of a provisiondoes not rule out the application of the principles of reasonable construction togive effect to the purpose and intention of any particular provision of the Act.From a bare reading of section 36(1)(v), it is manifest that the real intentionbehind the provision is that the employer should not have any control over thefunds of the irrevocable trust created exclusively for the benefit of theemployees. On facts, it is evident that the assessee had absolutely no controlover the fund created by the LIC for the benefit of the employees of the assesseeand further all the contribution made by the assessee in the said fund ultimatelycame back to the Textool Employees Gratuity Fund, approved by the CIT. Thus,the conditions stipulated in section 36(1)(v) were satisfied

1)

Issue raised by the assessee was debatable and capable of two views. Theassessee had an arguable case or had taken a bonafide plea. The assesseehad given his explanation and categorically and clearly stated the true andfull facts in the Return itself. He did not try to camouflage or cover up theexpenses claimed. It is not uncommon and unusual for an assessee tobonafidely claim a particular expenditure as a revenue deduction andexpense but not succeed. Every addition or disallowance made does notjustify and mandate levy of penalty for concealment U/s 271(1)(c) of theAct. Levy of penalty is not an automatic consequence when an addition ismade by disallowing an expense and by not accepting the interpretationgiven by the assesse. As stated above, the plea and contention raised by theassessee has to be examined before it is decided whether or not the assesseehas been able to bring his case within the four corners of the Explanation.Explanation 1 clearly stipulates that the penalty can be imposed when thedetails furnished by the assessee are found to be incorrect, erroneous andfalse. Merely making a claim which is held as not sustainable under lawshould not lead to penalization, when the assessee had furnished fulldetails in the Return itself and the claim is a debatable, reasonablyplausible or may well have been accepted. (See

2010 322 ITR 158 (SC),2011 329 ITR 572 (Del.), ITA No. 1190/2011 decided

on 19/07/2012, by this Court).

In (2010) 329 ITR 483 (Del.), it has beenheld that when a question arises, which is debatable but the claim of theassessee is not finally accepted, penalty U/s 271(1)(c) should not beimposed. Divergent views on legal interpretation of tax provisions havebeen subject matter of plethora of decisions. It is not necessary that thereshould be uniformity or consistency of opinion on aspects of law and theassessee must accept interpretation against him, even when a favourableview is credible and tenable. Penalty cannot be imposed because assesseehad taken a particular legal stand unless the assessee had not disclosedfacts before the Department/authorities and is unable to establish hisbonafides on the legal interpretation put forward.

Reference can also be made to 2012348 ITR 339 and ITA No. 67/2012 decided on 11thOctober, 2012 by the Delhi High Court.

In view of the above, the question of law is answered in negative and infavour of the appellant assessee and it is held that penalty U/s 271(1)(c) ofthe Act is not justified and is directed to be deleted.

CIT vs. Reliance Petro

Product Pvt. Ltd. CIT vs. Dharampal Premchand

Ltd. CIT vs. Societex

Devsons Logistics Pvt. Ltd. vs. CIT

CIT vs. Brahmputra Consortium Ltd.

Pramod Mittal vs. CIT

2) Maruti Suzuki India Ltd. Vs. DCIT (Delhi) (Date ofjudgment:13/05/2013)

Assessment

RECENT TRIBUNAL DECISIONS

1) Kunal Surana vs. ITO (ITAT Mumbai)Requirements of a valid affidavit in support of delay condonationapplication set out:

2) Y.P.Trivedi vs. JCIT (ITAT Mumbai)Delay in filing appeal due to CA’s fault is bona fide & must becondoned:

(Mst.Katiji

3) Apollo Tyres Ltd vs. DCIT (ITAT Cochin)No disallowance U/s 40(a)(ia) for default of short-deduction of TDS:

No addition during reassessment of a particular expense which has beenduly examined by the AO during Original Assessment proceedings.Whether notice U/s 148 can be issued for disallowance of a particularexpense which has been duly examined by the AO during theproceedings by asking for specific details but not mentioned in AssessmentOrder.

In this case, the assessee incurred certain losses on account of non-recovery of money and accordingly reduced from the income. The amountso written off was duly examined by the AO and no adjustment was madefor it. Later, a notice U/s 148 was issued stating that the said issue has notbeen examined earlier as not specified in the Assessment Order. TheHon’ble High Court, considering the fact that the issue was examined asquery was raised by AO, a notice for another examination cannot be issued,as it would amount to mere change of opinion and the appeal wasdismissed accordingly.

The assessee filed an appeal before the CIT(A) which was delayed by 4months. The delay was explained to have been caused by the fact that theassistant of the Authorized Representative (AR) kept the papers in a drawerand overlooked them till a penalty notice was received. The CIT(A) declinedto condone the delay and dismissed the appeal. The assessee filed an appealbefore the Tribunal and also filed an affidavit of the AR in support of theapplication for condonation of delay. The Tribunal dismissed theapplication and the appeal on the following grounds:

The affidavit produced by the AR is not a valid affidavit because there is noverification appended on it and there is no mention as to which of the parasare true to the knowledge of the deponent and which of the paras of theaffidavit are true to his belief.The affidavit is also not a duly sworn affidavit as required under Rule 10 ofthe ITAT Rules, 1963 because it has not been properly endorsed by thenotary regarding the oath of affirmation before him by the executant ofthe affidavit.The notary has put his signatures under his name seal but there is nomention whether the oath was administered to the signatory or if done so,when and where it was administered. Even words “Sworn before me” aremissing. If the affidavit does not certify or endorse the fact that oath hasbeen administered, it remains a waste paper.

On merits, the case is one of gross negligence and inaction on the part of theassessee and the AR. The explanation that the AR’s assistant kept thepapers in his drawer and failed to take necessary action is vague andevasive and not sufficient cause for condonation. There is also no generalprinciple saving the party from all mistakes of its counsel. There is alsototal inaction and gross negligence on the part of the assessee for notinquiring the status of the appeal from the AR. Though courts adopt liberalview while condoning delay on the principle that technicalities should notprevail over the cause of justice, litigants should not take the courts forgranted.

The assessee filed an appeal before the Tribunal which was delayed by 496days. In the application for condonation of delay, the assessee claimed thathe had handed over the papers to his Chartered Accountant (CA) and thatthe latter had mixed up the papers with other papers in his office which ledto the delay. The Department opposed the application on the ground thatthere was “gross negligence” on the part of the assessee and that sufficientcause for the delay was not explained. The Hon. Tribunal decided in favourof the assessee on the following grounds:

The facts do not suggest that the assessee has acted in a malafide manner orthat the reasons explained are only a device to cover an ulterior purpose. Itis a settled proposition of law that Courts should take a lenient view on thematter of condonation of delay provided the explanation and the reasonfor delay is bonafide and not merely a device to cover an ulterior purpose oran attempt to save limitation in an underhand way. The Court should beliberal in construing sufficient cause and should lean in favour of suchparty. Whenever substantial Justice and technical considerations areopposed to each other, cause of substantial Justice has to be preferred. Onfacts, the reasons explained by the assessee show that due to bonafidemistake and inadvertence, the appeal could not be filed within the period oflimitation. Accordingly, the delay of 496 days has to be condoned

167 ITR 471(SC) referred).

The assessee made payments to various contractors. Though tax wasdeducted at source, it was at a rate lower than that prescribed under theAct. The AO & CIT(A) held that as there was a default by the assessee, the

expenditure had to be disallowed U/s 40(a)(ia). On appeal by the assesseeto the Tribunal, the Hon. Tribunal allowed the appeal on the followinggrounds:A combined reading of section 201(1A) and section 40(a)(ia) shows thatwhile a case of short-deduction of TDS is covered by section 201(1A), it isnot covered by section 40(a)(ia). There is an obvious omission to includeshort deduction/lesser deduction in section 40(a)(ia). Therefore, in case ofshort/lesser deduction of tax, the entire expenditure whose genuinenesswas not doubted by the Assessing Officer, cannot be disallowed

(Cal HC) & 49 SOT 448 referred.

(I.T.A.No.6393/Del/2012)

Assessing Officer (AO) ignored the very fact that there was a temporarylull in the business of the assessee and it was not a cessation of businessactivity. Therefore, the AO disallowed the expenses incurred by theassessee for continuation of its business which deserve to be allowed.During the argument, the AR has submitted a detail of gross receipts fromA.Y.2004-05 to A.Y.2012-13 which reveals that except assessment yearunder consideration in this appeal i.e. A.Y.2009-10, the gross receipt of theassessee is of high volume during the preceding and subsequent yearswhich clearly reveals that there was a temporary lull in the businessactivity of the assessee during the year under consideration in this appeal.

The detail of gross receipts has not been disputed by the DR which clearlyreflects that during the subsequent years, the business of the assesseeagain continued and the assessee undertook substantial business activitiesduring this period. In this situation, the Tribunal held that there was atemporary lull during the year under consideration in the businessactivity of the assessee and the business activities were again started by theasessee during the subsequent years by receiving huge amounts.

In view of above, it was held that the AO wrongly disallowed the expensesand made addition to the income of the assessee which was rightly deletedby the CIT(A) by passing the impugned Order.

The assessee was engaged as a consultant by Essar Oil Ltd. to provideconsultancy services in connection with sale of its energy business. As theconsultancy required high level technical and industry knowledge, theassessee engaged KPMG LLP, USA & KPMG Consulting LP, Canada forrendering professional services and paid Rs.20 lakhs & Rs.13 lakhsrespectively. The AO held that the said fees constituted “royalty” U/s9(1)(vi) & Article 12 and as there was no TDS, the amount was to bedisallowed U/s 40(a)(i). This was reversed by the CIT(A). On appeal by theDepartment, the Tribunal dismissed the appeal on the following grounds:

The professional services rendered do not fall in the definition of “royalty”in Article 12 of the DTAA. It was purely a

which were rendered outside India and

Thus, there was no liability to deduct TDS and consequentlyno disallowance U/s 40(a)(i) can be made.

The CBDT has issued a Press Release dated Nil stating that CircularNo.2/2013 dated 26/03/2013

has been rescinded and that Circular No.3 dated 26/03/2013

has been amended andreissued with a view to clear all ambiguities in the matter.

Pursuant thereto Circular No.05 /2013 [F. No. 500/139/2012-FTD-I],dated 29/06/2013 has been issued to withdraw Circular No.2/2013 dated26/03/2013 and Circular No.6 dated 29/06/2013 has been issued in placeof Circular No.3 dated 26/03/2013. In the new Circular No.6 dated29/06/2013, the CBDT has laid down guidelines for identifyingDevelopment Centres as a contract R&D service provider withinsignificant risk for transfer pricing purposes.

In an important judgement of the Hon’ble CESTAT, Mumbai in the case of

thefollowing issue was decided:

M/s Arcadia Share & Stock Brokers Pvt. Ltd. wasengaged in rendering stock broker services. However, the Appellantdischarged service tax liability under the wrong accounting code i.e.service tax was remitted under the accounting code for education cess. TheDepartment confirmed demand against the Appellant for non-payment ofservice tax under proper accounting code.

(S.K.Tekriwal Chandabhoy and Jassobhoy

4) ADIT, International Taxation vs. Dolphin Drilling Ltd. (ITAT DELHI)A.Y.2009-10

Expenditure incurred during temporary lull of business should be anallowable expenditure:

5) KPMG India Pvt. Ltd vs. DCIT (ITAT Mumbai)

Rendering of services is not “supply of knowledge or information” tobe “royalty”

professional service forconsultancy not for supply ofscientific, technical, industrial or commercial knowledge orinformation.

OTHER RECENT AMENDMENTS/DEVELOPMENTS

1) CBDT Press Release Withdrawing/Amending Circulars on TransferPricing:

2) No liability to pay service tax again if the assessee has deposited theservice tax under wrong accounting code:

Arcadia Share & Stock Brokers Pvt. Ltd. Vs. Commissioner of CentralExcise & Customs, Goa [2013 (7) TMI 330 - CESTAT MUMBAI]

(“the Appellant”)

(Circular on application of profit splitmethod)(Circular on conditions relevant to identify Development Centres engaged incontract R&D services with insignificant risk)


08| |05

DIRECT TAXES Law Update DETAILED PROGRAMMES SCHEDULE

AUG - SEPT

2013

AUG - SEPT

2013

— Compiled by — Haresh P. Kenia

|e-mail:[email protected]

|9821351838

I. Protocol amending DTAA between India &Bangladesh {216 TAXMANN 272 (ST.)}

II. CBDT INSTRUCTION – Rectification of Mistakes U/S.154 – Procedure to be followed on Receipt & Disposalof Rectification application filed u/s.154 of IncomeTax Act. {216 TAXMANN 275 (ST.)}

III. CBDT INSTRUCTION – Assessment u/s. 143 – General– Identification of unserved Intimation under section143(1) for cases processed prior to 31/03/2010. {216TAXMANN 277 (ST.)}

The Central Government vide Notification No. 50/2013dated 04/07/2013 notifies protocol amending theconvention between Government of the Republic of Indiaand the Government of Peoples Republic of Bangladeshfor the avoidance of double taxation and the prevention offiscal evasion with respect to taxes on Income. It directsthat all the provisions of the protocol shall be given effectto in the Union of India w.e.f. 13/06/2013.

The CBDT vide Instruction No. 3/2013 dated 05/07/2013directs that henceforth all application received u/s. 154 ofthe Income Tax Act by the concerned jurisdictionalauthorities shall be dealt with in the prescribed manner.

• The CBDT has given the direction on how to deal with theapplication u/s. 154 on its receipt at the Office whereAayakar Seva Kendra is a Centralized Dak receipt Centeror the offices where Dak is the received by theJurisdictional Assessing Officer.

• It has directed to maintain “Register of Rectification u/s.154” online.

• It has prescribed the time limit for the disposal of theapplication u/s. 154 and also prescribed the manner inwhich such rectification application should be processed.

• It has also given direction in case rectification applicationunder e-file returns.

• It has direct all CCsIT/DGsIT to insure that the aboveprocedure is strictly followed in their charge withimmediate effect and the maintenance and updating ofonline rectification register is monitored by the concernedsupervisory officers in their respective charges.

The above directions have been issued by the CBDT in viewof the order of the Hon’ble Delhi High Court videJudgment in the case of Court on its Own Motion v/s.UOI in W.P. (C) 2659/2012 dated 14/03/2013 has issuedseveral Mandamuses for necessary action by Income TaxDepartment one of which is regarding maintenance of“Rectification Register” in which details like receipt ofapplications under section 154 of the I.T. Act, theirprocessing and disposal are to be maintained. (Reference :Paras 16 to 18 of the order)

The CBDT vide Instruction No. 04/2013 dated05/07/2013 directed to the assessing authority to strictlyadherto or kept in mind timeline in respect of the matterrelated to the intimation/orders prior to 31/03/2010 asdesired by the Hon’ble Delhi High Court. It has alsodirected to strictly adherto the direction of the High Courtrelating to intimation u/s. 143(1) and disposal of

application u/s. 154 and also passing of order u/s. 245 ofthe Income Tax Act.

The above directions are issued in view of the order of theHon’ble Delhi High Court vide judgment in case of Courton its Own Motion v/s. UOI in W.P. (C) 2659/2012 dated14/03/2013 has issued Seven Mandamus for necessaryaction by Income Tax department one of which isregarding non enforcement of demand where nointimation under section 143(1) of Income Tax Act, 1961was sent by field-authorities in respect of returns whichwere processed prior to 31/03/2010.

The CBDT vide Instruction No. 05/2013 dated08/07/2013 directed that when an assessee approachesthe assessing officer with requisite details and particularsin the form of TDS certificate as an evidence against anymismatched amount, the said Assessing Officer willverify whether or not the deductor has made payment ofthe TDS in the Government Account and if the paymenthas been made, credit of the same would be given to theassessee. However, the Assessing Officer is at liberty toascertain and verify the true and correct position aboutthe TDS with the relevant AO (TDS). The AO may also, ifdeemed necessary, issue a notice to the deductor to compelhim to file correction statement as per the procedure laiddown.

The above directions has been issued by the CBDT in viewof the order of the Delhi High Court vide its judgment inthe case of Court on its Own Motion v UOI [2013]taxmann.com 31 (Delhi) has issued seven mandamusesfor necessary action by Income Tax department, one ofwhich is regarding the issue of non credit of TDS to thetaxpayer due to TDS mismatch despite the assesseefurnishing before the Assessing Officer, TDS Certificateissued by the deductor..

The Central Government vide its Notification No.43/2013 dated 12/06/2013 gives the agreement betweenthe Government of Republic of India and the Governmentof the principality of Monaco for the exchange ofinformation relating to tax matter. It shall be given effectto in the Union of India w.e.f. 27/03/2013.

The CBDT vide Notification No. 41/2010 dated10/06/2013 gives Income Tax (Sixth Amendment) Rules,2013. It has come into force 01/04/2013. It substituteForm 3 CEB being Report from an accountant to befurnished u/s. 92 E relating to international transactionsand specific domestic transactions. It also amends Rule10A, 10AB, 10B, 10C, 10D & 10E so as to cover theprovision relating to specific domestic transaction.

The CBDT vide notification No. 42/2013 dated11/06/2013 gives Income Tax (Seventh Amendment)Rules, 2013. It’s came into effect form 01/04/2013. Itssubstitute ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7.

IV. CBDT INSTRUCTION – Credit for TDS u/s. 199 to anassessee when the tax deducted has been depositedwith the revenue by deductor. {216 TAXMANN 279(ST.)}

V. DTAA Agreement for Exchange of information withrespect to taxes with Foreign Countries – Principalityof Monaco. {216 TAXMANN 3 (ST.)}

VI. SUBSTITUTION OF FORM NO. 3 CEB – Amendment inRules 10A, 10AB, 10B, 10C, 10D & 10E. {216TAXMANN 9 (ST.)}

VII. Amendment in Rule 12 and substitution of Forms ITR2, ITR 3, ITR 4, ITR 5, ITR 6 & ITR 7. {216 TAXMANN22 (ST.)}

Workshop on AccountingStandards

CPE24

HRS

Seminar on InvestorAwarness

CPE2

HRS


Venue

Date

Timing

Speakers

Fees

Co-ordinators

Iskon TempleMira Road (East)

6th October 2013

10.00 am to 1.00 pm

CA Santosh Sharma

Free for All

CA Dayaram Paliwal9820331010CA Deepak Bansal9320981019

Venue

Date

TimingSpeakersFees

Co-ordinators

Vasai Branch of WIRCAmruta Building, Indralok Phase-II,New Golden Nest Road,Bhayandar(East)5th to 30th October 2013(Every Sat & Wed)6.00 pm to 9.00 pmEminent Speaker

2000/- For Members all 8 Days300/- For each Day250/- For Student each day

CA Umesh Mestry9320473468CA K. B. Kothari9594196090CA Haresh Mehta9823137477

`

`

(Including Course Material & High Tea)

`

Seminar on 12 Days Certificate

Course on Indirect Taxes

CPE70

HRS

Venue

Date

Timing

Fees

Co-ordinators


19th Oct to 1st Dec 2013 (every Sat & Sun)

9.30 am to 5.30 pm

15000/-

CA Umesh Mestry9320473468CA Kishor Vaishnav9892194382CA Haresh Mehta9823137477CA Unmesh Narvekar9821236179CA Pramod Dhamankar9987155522CA Deepak Bansal9320981019

`


S.No.Topics to be covered in the class room session

Common Concepts in Central IDT

Central Excise

Customs

Foreign Trade Policy

VAT Concepts/ CST

Service Tax

GST Road Map

1 Areas of Opportunity – Employment/Practice

2 Overview of Indirect Taxation in India

3 Impact of Indirect Taxes on Products/Services

1 Relevant Aspects of Constitution

2 Relevant Allied Laws vis a vis Indirect Taxes

3 Classification & Exemption

4 CENVAT/Set Off

5 Valuation Principles

6 Provisions for Demand

7 Refunds

8 Self Assessment

1 Excisable Goods

2 Manufacture, Removal

3 Valuation

4 CENVAT – Capital Goods, Inputs, Input Services

5 SSI & Other major Exemptions

6 Job Work

7 Basic Procedures

8 Demands/Penalties

9 Common Errors

10 Audit External/Internal

1 History,Purpose,Levy,Types,taxable event

2 Import Valuation/Import procedure, SEZ and Warehousing

3 Classification of goods under Customs

4 Exemptions from custom duty

5 Export Valuation/Export procedure, Import /Export Valuation

6 Duty drawback and Export Promotion schemes

7 Policy Demand and offences, Refund of customs duty,

8 Penalties and Appeals

1 Provisions relating to Foreign Trade

1 VAT Concepts-levy, Advantages and classification

2 Input tax credit with restrictions and schemes

3 Registration, Documentation under VAT law

4 Deemed Sales/Interstate works contract, Composition schemes

5 Levy of CST/Import and export with relevant statutory forms

6 Demand and penalties

7 Accounts and Audit

1 Levy and Negative List

3 Valuation under Service tax law

4 Composition scheme

5 CENVAT Credit

6 Major Exemptions/Abatements

7 Export Rules/Import Rules/Place of Provision of Service Rules

8 Demand And Appeals under service tax law

9 Basic Procedure - assessee

10 Basic Procedure – department

11 Service tax Rules - Audit

12 Point of Taxation Rules

13 Common Errors

14 Refunds and rebates under service tax law

1 Road Map to GST

2 Constitutional Amendment bill

3 Role of Professionals

04| |09

FORTHCOMING PROGRAMMES

AUG - SEPT

2013

AUG - SEPT

2013

(L-R) Mr. Nikash Mehta,CA D. P. Revawala (Judge), CA Ramanand Gupta

(Chairman-Vasai Branch) & CA PramodDhamanakar (Past Chairman-Vasai Branch)

at Inauguration Session

Group Photo taken at Quiz and Elocution Contest Participants at the EventCA Preksha Jain(Chairperson-Vasai WICASA)

presenting Bouquet to CA D. P. Revawal(Judge of the Event)

1st Winner Team of Quiz Contest(Mr. Vatsal Hemani & Mr. Ashish Tailor)

2nd Winner Team of Quiz Contest(Mr.Sandeep Jaiswal & Mr.Rachit Sariya)

8th Annual GeneralMeeting of VasaiBranch held on27th July 2013

CA R.D. Lukad(Chief Guest), CA Ramanand Gupta(Chairman-Vasai Branch), CA Prafulla Chhajed, (CCM)

at Inauguration Session.

CA Deepak Bansal (Convenor-BhayandarCPE Study Circle) presenting bouquet toCA Rajesh Patil (Speaker) also seen CAUmesh Mestry (Secretary-Vasai Branch)

CA K.B.Kothari (Treasurer-Vasai Branch)presenting Mementoe to CA Rajiv Luthia(Speaker) also seen CA Kishor Vaishnav

(Committee Member)

CA Umesh Mestry(Secretary Vasai Branch)presenting bouquet to CA Saket Patwari(Speaker) also seen CA. Kishor Vaishnav(Committee Member) and CA Pramod

Dhamankar(Past Chairman-Vasai Branch)

Participants at Seminar

CA Ramanand Gupta (Chairman-Vasai Branch)presenting Bouquet to CA Prafulla Chhajed, (CCM)

CA U. C. Garg (Member-Vasai Branch) presentingBouquet to CA R.D. Lukad (Chief Guest)

Glimpses at Inauguration of Training Centre and Library(Dated -11th August, 2013)

Seminar on Tax Audit Dated-11th August, 2013 Seminar on Service Tax Dated-14th July, 2013

Glimpses at Quiz and Elocution Contest held on 10th August, 2013

IRCC at Bali Dated 14th August to 19th August 2013 Janmashtami Utsav Dated -29th August, 2013

Group Photo Taken at Conference Participants at Conference Group Photo taken at Janmashtami Utsav Dahi Handi Celebration

Detailed Programme Schedule

Seminar on Due-Diligence &Professional Opportunity inBank

CPE3

HRS

Post Qualification on InformationSystem Audit Course


Venue

Date

Timing

Speakers

Fees

Co-ordinators


24th Aug, to 29th Sep. 2013(for 6 weekends, Every Sat & Sun.)

9.30 am to 5.30 pm

Mr. Jitendra SardesaiMr. N D KunduCA. Ramesh ShettyMr. Avinash GokhaleCA. Mayur ChokshiDr. Onkar Nath

17500/-

CA Dayaram Paliwal9820331010CA Kishor Vaishnav9892194382CA Ravi Gupta9819241018CA Bhanwar Borana8291454999

`

Venue

Date

Timing

Speakers

Fees

Co-ordinators

Ajmal Ramdev Building No.1,A-Wing, First Floor,Near Naresh Steel,Navghar Cross S.V. Road,Bhayander (E),

8th September 2013

9.30 am to 12.30 pm

200/-

CA Vimal Agrawal9320617447CA Sumeet Doshi9869525956CA Santosh Sharma9167966330

`

CA. Sunil Gangwal

FORTHCOMING PROGRAMMES FOR STUDENTS


5th Sept. Industrial Visit at BSE 12.00 noon Mumbai - CA Preksha Jain Free -2013 9029877140

7th Sept. Seminar on E-filling of 6.00 pm to Branch Premises CA Manish Dedhia CA Preksha Jain Free -2013 Tax Audit 8.00 pm 9029877140

20th to Crash Course for IPCC & 9.30 am to Branch Premises Eminent Speaker CA Preksha Jain 100/- -22nd Sept. Final 5.30 pm 9029877140 Each Subject

October Mock Test for IPCC & 3.00 pm to Branch Premises - CA Preksha Jain 100/- -2013 Final 6.00 pm 9029877140

`

`

FORTHCOMING PROGRAMMES FOR MEMBERS


24th Aug Information System 9.30 am to Vasai Br. of WIRC Mr. Jitendra Sardesai CA Dayaram Paliwal 17,500/-to 29th Sept Audit(ISA) 5.30 pm Indralok Phase-II, Mr. N D Kundu 98203310102013 New Golden CA. Ramesh Shetty CA Kishor Vaishnav(6 weekends) Nest Road, Mr. Avinash Gokhale 9892194382Every Bhayandar (East) CA. Mayur Chokshi CA Ravi GuptaSaturday Dr. Onkar Nath 9819241018& Sunday CA Bhanwar Borana

8291454999

8th Sept. Seminar on Due-Diligence 9.30 am to Ajmal Ramdev CA. Sunil Gangwal CA Vimal Agrawal 200/- 3 Hrs2013 & Professional Opportunity 12.30 pm Bldg. No.1, A-Wing, 9320617447

in Bank 1st Floor,Near CA Summet DoshiNaresh Steel, 9869525956Navghar Cross S.V. CA Santosh SharmaRd. Bhayandar (E) 9167966330

5thOct to WorkshoponAccounting 6.00pmto VasaiBr. ofWIRC EminentSpeakers CAUmeshMestry 2000/-* 24Hrs

30th Oct Standards 9.00pm Indralok Phase-II, 93204734682013 (Every New Golden CA K. B. KothariSat & Wed) Nest Road, 9594196090

Bhayandar(East) CA Haresh Mehta9823137477

6th October Seminar on Investor 10.00 am Iskon Temple, CA. Santosh Sharma CA Dayaram Paliwal Free 2 Hrs2013 Awareness to 1.00 pm Mira Road 9820331010

(East) CA Deepak Bansal9320981019

6th October Seminar on Personality 1.00 pm Iskon Temple, Eminent Speakers CA Dayaram Paliwal Free -2013 Development to 2.00 pm Mira Road 9820331010

(East) CA Santosh Sharma9167966330

`

`

`

�

10|

Dear Professional Colleagues,

All’s well that ends well…

A hard beginning maketh a good ending….

It is good to rub, and polish our brain against that ofothers.

On the Occasion of Chartered Accountants Day, we havesuccessfully completed series of Activities on 30th June &1st July starting with Inauguration New Branch Premisesby the gracious hands of WIRC Chairman CA MangeshKinare. The chain of events comprised of Honoring SeniorCA Members, Investor Awareness Programme, HealthCheck-up at subsidized rates so on and so forth. India is aground for many celebrations and one of them wasChartered Accountants Day where we had a Flag Hoistingceremony at our newly inaugurated premises, followed byTree Plantation campaign at Bhayandar Chowpatty,Women Safety Awareness Programme and Distribution ofBooks & Sweets at a Rural School in Mira Road.

The dream of organizing a CA Students WIRC Sub-Regional Conference came true mainly because of theefforts of CA Subodh Agrawal – President of ICAI,CA. K. Raghu – Vice-President of ICAI, CA Vijay Garg –Chairman of Board of Studies and CA Mangesh Kinare –Chairman of WIRC.

By looking at the keen energetic response received fromour young turks in organizing the conference and makingit a huge success. The grand occasion was inaugurated byCA Uttam Prakash Agrawal – Past President of ICAI , CAMangesh Kinare – Chairman of WIRC, CA Jay Chhaira –Central Council Manager, CA Tarun Ghia – Central CouncilManager, CA Mahesh Madkholkar - WICASA Chairmanand various eminent dignitaries.

I am also thankful to all Technical Chairmen and SpecialSession Chairmen who chaired and enlightened the SubjectKnowledge and motivated the Paperwriter andParticipants. My heart fills with pride in acknowledgingthe efforts, enthusiasms and perseverance of those whowere committed to create their presence and theircontributions in making it a success and a mark ofprofessional triumph. We had also organized a Quiz andElocution Contest, wherein huge number of studentswhole heartily participated and graced the occasion bycontributing their knowledge and understanding. Becauseof the continuous and persistent efforts of all the affiliates,young aspirants, committee members and Vasai WICASAteam, we have been able to mark some successful events inour branch history. Our endeavor would be to continue tocontribute to the CA fraternity in all the means possible.

The onus lies in “Sharing the knowledge” and thus theopening of Training Centre and Library Facilities is just onestep towards it. The inauguration of Training Centre and

FROM CHAIRMAN’S DESK

AUG - SEPT

2013

Library of Vasai Branch was done by the gracious hands ofCA Prafulla Chhajed – Central Council Member. Theinaugural ceremony was followed by a Seminar on TaxAudit and E-filing of Tax Audit Report wherein largenumber of members had knowledge enhancement on thediscussed topics.

-It has indeed been a fantastic event, thememories of which shall be remembered & cherishedthroughout. I would extent my heartiest thanks toCommittee for Capacity Building of CA Firms & Small andMedium Practitioners for giving us the opportunity toorganise this IRRC.

I once again thank all of you for your strong support &neverending enthusiasm shown during this IRRCMauritius.

We have to change with the changing timesby adopting Information Technology to improve efficiencyand effectiveness of our operations (ERP/ CAAT/ GAS/Practice Management Software), and also offer valueadded services (Systems & Process Assurance/ IS Audit,Consultancy, e-governance) which are in increasingdemand. Technology education is now becoming a must!While the need to develop technologically is quite obvious,by looking at that Vasai Branch has commenced PostQualification Course on Information System Audit.

is schedule inOctober month which focus on key area such as Overviewof indirect taxes, value added tax, central excise duty,customs duty, service tax, GST and Foreign Trade Policy,we request you to take advantage of the said course byearly enrolment.

With Warm Regards

Chairman

Sixth IRRC at Bali

ISA Course-


CA Ramanand Gupta

Forthcoming events…

GLIMPSES AT


CA Uttam PrakashAgarwal

Past President-ICAI

CA BrijmohanAgarwal

Past Chairman-WIRC

CA Sunil KumarPatodia

RCM

CA Tarun GhiaCCM

CA MaheshMadkholkar

Chairman - WICASA

CA Prafulla ChhajedCCM

CA Atul BhedaPast Chairman - WIRC

CA UnmeshNarvekar

Past Chairman-Vasai Br.

Dr. Mahesh GourFaculty

CA Nihar JambusariaCCM

CA Charanjot SinghNandaCCM

CA Jay ChhairaCCM

Mr. Deepak Jain Mr. Chinar Kale Mr. Akhand Pratap Singh Mr. Ajit Kumar MishraMr. Hardik Shah

Ms. Nidhi Kothari Ms. Mamta Tiwari Mr. Swapnil Jain Mr. Sushil MishraMs. Pooja Rajbhar Ms. Piyali chatterjee

Mr. Smit Soni

Mr. PrathameshShenoy

Mr. Pratik Mehta

Mr. Nikhil Chhabra

Mr. K. Vignan

Mr. Guntas Singh Talwar

Mr. Lalit Sharma Mr. Ketan Inani

Session Chairmen

Paper Presenters


GLIMPSES AT


Special Session-I addressed by CA Atul Bheda (past Chairman-WIRC)


PHOTO–GALLERY

| 1102| AUG - SEPT

2013

AUG - SEPT

2013

Glimpses at Inauguration of New Branch Premises & CA Day (Dated on 30th June & 1st July 2013)

(L-R) CA Pramod Dhamankar (Past Chairman-Vasai Branch), CA Preksha Jain (Chairperson Vasai-WICASA), CA Sandeep Jain (WIRCNominee), CA Priti Savla (Treasurer-WIRC),CA Mangesh Kinare (Chairman-WIRC), CA Uttam Prakash Agarwal (Past President-ICAI),

CA Ramanand Gupta (Chairman-Vasai Branch), CA Jay Chhaira (CCM), CA Tarun Ghia (CCM),CA Mahesh Madkholkar (Chairman-WICASA) at Inauguration Session

Group Photo Taken at Inauguration Session

CA Preksha Jain (Chairperson-VasaiWICASA) Presenting Mementoe to

CA Mahesh Madkholkar(Chairman-WICASA)

Technical Session:-I chaired by CA Mahesh Madkholkar on Reverse Mechanisms in Service Tax andLocal Body Tax

Technical Session:-III chaired by CA Prafulla Chhajed on Use of Information Technology in Audit andSAP & ERP Implementation

Special Session-III addressed by CA. Charanjot Singh Nanda(CCM)

Technical Session:-II chaired by CA. Brijmohan Agarwal & CA Sunil Patodia onTransfer Pricing & Advance pricing Agreement and Taxation of Gift under Income Tax Act, 1961

Technical Session:-IV chaired by CA. Nihar Niranjan Jambusaria on Falling Rupee & its effects toIndian Economy and FDI in Retail in India

Special Session-II addressed by Dr. Mahesh Gour

Technical Session:-V chaired by CA Unmesh Narvekar on Overview on AccountingStandards and Forensic Accounting & Audit

CA Vimal Agrawal (Vice-Chairman,Vasai Branch) presenting Mementoe toCA Mangesh Kinare (Chairman-WIRC)

CA Sumeet Doshi(Committee Member-Vasai Branch)

presenting Bouquet toCA Priti Savla (Treasurer-WIRC)

CA. Kishor Vaishnav(Committee Member-Vasai Branch

presenting Bouquet toCA. Sandeep Jain (WIRC-Nominee)

CA Dayaram Paliwal(Committee Member-Vasai Branch)

presenting Mementoe toCA Jay Chhaira (CCM)

CA Kanhaiyalal Kothari(Treasurer-Vasai Branch) presentingBouquet to CA Tarun Ghia (CCM)

Inauguration of New Branch Premises

Seminar on Women Safety Awareness

Accounting Museums

Seminar on Investor Awareness Health Check Up

Felicitation of Senior CA Members

Tree Plantation

Distribution of Books & Sweets

Celebration CA Day - Flag Hoisting

CA Ramanand Gupta(Chairman-Vasai Branch) presenting

Mementoe to CA Uttam PrakashAgarwal (Past President-ICAI)


EDITORIAL BOARD

Chairman: CA. Ramanand Gupta

Vice- Chairman:

Secretary:

Treasurer:

Committee

Member

WIRC Nominee : CA. Sandeep Jain

9322231113

9869525956

9029877140

9320617447

9320473468

9594196090

9892194382

9820331010

9819788099

CA. Vimal Agrawal

CA. Umesh Mestry

CA. Kanhaiyalal B. Kothari

CA. Kishor Vaishnav

CA. Sumeet Doshi

CA. Preksha Jain

CA. Dayaram Paliwal

:

The Institute of Chartered Accountants of IndiaVASAI BRANCH OF WIRC NEWSLETTER

CA. Ramanand Gupta

CA. Umesh Mestry

CA. Kishor Doshi

CA. Lalit Munoyat

CA. Dushyant Chaudhari

CA. Ashutosh Vidwans

CA. Hemant Shah

CA. Alpesh Shah

CA. Prasad Chitre

CA. Haresh Kenia

CA. Haresh Mehta

CA. Sanjay Paharia

www.vasai-icai.org AUG & SEPT 2013

MANAGING COMMITTEE

VASAI BRANCH OF WIRC

`25/- For Members Only

The Institute of Chartered Accountants of India

NEWSLETTER

HappyGanesh Chaturthi

SUCCESS BY “SHARING THE KNOWLEDGE”

Editor: Published by Vasai Branch of Western IndiaRegional Council of The Institute of Chartered Accountants of India andprinted at Finesse Graphics and Prints Pvt. Ltd., 309, Parvati Ind. Est.,Sun Mill Compound, Lower Parel, Mumbai 400 013. Tel. : 40364600

The views and opinions expressed or implied are those of the authors orcontribution and do not necessarily reflect those of Vasai Branch.Unsolicited articles and transparencies are sent in at the owner's risk and thepublisher accepts no liability for loss or damage. Material in this publicationmay not be reproduced, whether in part or in whole, without the consent ofVasai Branch.

DISCLAIMER: The Vasai branch is not in any way responsible for the resultof any action taken on the basis of the advertisement published in theNewsletter. The members, however, may bear in mind the provision of theCode of Ethics while responding to the advertisements.

CA. Ramanand Gupta

Undelivered please return to :

The Institute of Chartered Accountants of India,

Vasai Branch of WIRCAddress: Amruta Building, Indralok Phase-II,New Golden Nest Road, Bhayandar (East), Thane - 401 105.Telephone: 65568900Email: [email protected]: www.vasai-icai.orgDesigned and Printed by Finesse • +91-22 4036 4600

The Institute of Chartered Accountants of India Vasai Branch of WIRC Newsletter12| AUG - SEPT

2013

To

Ms. Neha Diwan (Member-WICASA) presentingMementoe to Dr.Mahesh Gour

Mr.Amish Shah (Secretary-WICASA), prsesentingFloral welcome to CA Nihar Jambusaria (CCM)

Mr. Nikash Mehta (Member-WICASA) presentingMementoe to CA Atul Bheda


Mr.Amish Shah (Secretary-WICASA) presentingBouquet to CA Unmesh Narvekar

(Past Chairman-Vasai Branch)

Lunched of WICASA E-Newsletter by the gracious hands CA Uttam Prakash Agarwal,CA. Jay Chhaira, CA Taru Ghia, CA Mangesh Kinare & his Team, CA Mahesh Madkholkar

at Student Conference

Mr. Jay Doshi (Treasurer-WICASA) presentingBouquet to CA. Charanjot Singh Nanda (CCM)

Mr. Aman Jain (Member-WICASA) presentingBouquet to CA Sunil Patodia, (RCM)

Ms. Surbhi Jain (Vice-Chairperson,WICASA)presenting Mementoe to CA. Prafulla Chhajed,

(CCM)

Mr.Nikash Chandak (Member-WICASA)presenting Bouquet to CA. Brijmohan Agarwal,


Mr. Deepak Jain taking Best Paper Presenters Award Ms. Piyali Chatterjee (1st Runner up) Ms. Nidhi Kothari (2nd Runner up)

Vasai WICASA Team Participants at the Sub Regional Conference Staff Group Photo taken in the presence of CA Ramanand Gupta,CA Dayaram Paliwal, CA Kishor Vaishnav & CA Preksha Jain

CA D. P. Revawala CA Arjun Saini CA Aniket Padhye CA Ashwin Dedhia CA Narendra Bhamwani CA Lalit Munoyat CA Rajesh Kotak CA Chandrahas Palan

(Cont...) GLIMPSES AT CA Students WIRC Sub-Regional Conference Dated 2nd & 3rd August 2013

Panel of Judges

Paper Presenter Winner at the Conference

Documents

(Cont) The Institute of Chartered Accountants of India … Section/Image...Ms. Surbhi Jain (Vice-Chairperson,WICASA) presenting Mementoe to CA. Prafulla Chhajed, (CCM) Mr.Nikash Chandak