FORTHCOMING EVENTS - ctconline.org · march 2018 the ctc news2 www.. international taxation committee 12th residential conference on international taxation, 2018 thursday, 21st june,

1March 2018 • THE CTC NEWS www.ctconline.org

President: Ajay R. Singh (Tel.: 22013242) | Vice President: Hinesh R. Doshi (Tel.: 66008100) | Hon. Jt. Secretaries: Ketan L. Vajani (Tel.: 23740792) | Nishtha M. Pandya (Tel.: 23869235) | Treasurer: Parag S. Ved (Tel.: 26704376)

Vol. V Issue 9 | March 2018 | Total Pages - 12 | Price ` 2/-RNI No. MAHENG/2015/67505 | Postal Reg. No. MCS/210/2016-18

FORTHCOMING EVENTS

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

Sr. No. Date Committee Programme Description Venue Pg. No.

1 3-3-2018 Membership & Public Relations

Seminar on GST Case Studies and Anti-Profiteering in Real Estate & Tourism Sectors

Institute Menezes Braganza Hall, Panaji, Goa

7

2 6-3-2018 International Taxation

FEMA SC on Bitcoins - Tax & Regulatory Implications

CTC Conference Room, New Marine Lines, Mumbai

3

3 7-3-2018 to 14-3-2018

Indirect Taxes Workshop on GST Law (Jointly with AIFTP (WZ), BCAS, GSTPAM, MCTC & WIRC of ICAI)

GSTPAM, Mazgaon Library, Mumbai 6

4 8-3-2018 Direct Taxes Webinar on Taxation of Private Trusts/Family Trusts and Estate Planning with The Help of Private Trusts

— 9

5 8-3-2018, 9-3-2018 & 10-3-2018

Student Student Orientation Course Maharashtra Seva Sangh Hall, Mulund, Mumbai

8

6 10-3-2018 Membership & Public Relations

Indoor Box Cricket Tournament (Jointly with GSTPAM and MCTC)

The Turf Club, Kandivali (E), Mumbai 6

7 13-3-2018 Direct Taxes ISG on Recent Important Decisions under Direct Taxes with special reference to Landmark decisions on Stay of Demand & Prosecution

CTC Conference Room, New Marine Lines, Mumbai

9

8 17-3-2018 Pune Study Group Study Group ELTIS, Pune 3

9 20-3-2018 Study Circle & Study Group

SG on Recent Judgments under Direct Taxes SNDT Committee Room, SNDT College, Churchgate, Mumbai

9

10 22-3-2018 Indirect Taxes IDT SC on Preparedness for GST Audit SNDT Committee Room, SNDT College, Churchgate, Mumbai

6

11 23-3-2018 Direct Taxes Half Day Seminar on Charitable Trusts Jai Hind College, AV Room, Churchgate, Mumbai

8

12 23-3-2018 & 24-3-2018

International Taxation

Two Days Intensive Study Course on Foreign Exchange Management Act (FEMA)

India International Centre, Lecture Room, New Delhi

4

13 6-4-2018, 7-4-2018

Student Committee 45th Sir Jamshedji Kanga and Dr. Y. P. Trivedi National Tax Moot Court Competition

— 7

14 28-4-2018 to 2-5-2018


4th International Study Tour Hotel Le Meridien, Mauritius 3

15 21-6-2018 to 24-6-2018


12th Residential Conference on International Taxation, 2018

The Grand Bhagwati, Indore 2-3

16 — — Unreported Decisions (Direct Taxes) — 10

17 — — Unreported Decisions (Service Tax) — 11

18 — — CTC Publications — 9

19 — — Renewals — 5


INTERNATIONAL TAXATION COMMITTEE

12TH RESIDENTIAL CONFERENCE ON INTERNATIONAL TAXATION, 2018 THURSDAY, 21ST JUNE, 2018 TO SUNDAY, 24TH JUNE, 2018

THE GRAND BHAGWATI, INDORE

Chairman: Rajesh P. Shah Co-Chairman: Rajesh L. Shah Vice-Chairman : Kartik Badiani Convenors : Rakesh Upadhyay, Shreyas Shah, Isha Sekhri, Harshal Bhuta

Co-ordinators : Bhaumik Goda, Kartik Mehta

The International Taxation Committee is pleased to announce its 12th Annual Residential Conference on International Taxation from 21st June 2018 to 24th June 2018 at The Grand Bhagwati (TGB), Indore. The focus is on international taxation and other practical issues related thereto.

The ConferenceThe field of International Taxation has witnessed rapid developments globally in recent past. With various BEPS action plans being implemented by several countries, recently released final guidelines for determining POEM, indirect transfers, secondary adjustments, thin capitalisation, transfer pricing etc., there will be lot to discuss on cross-border taxation issues in the months to come. Coupled with global and domestic development in international taxation are the frequent changes made by the regulator i.e., the Reserve Bank of India (RBI) in the regulatory law, FEMA 1999. Given the changes and its far reaching impact on the day-to-day practice, need for learning through intensive study and analysis has become a continuous process.

The VenueIndore is a city in west-central India. It is known for the 7-Storey Rajwada Palace and the Lal Baug Palace, which date back to Indore’s 19th-century Holkar dynasty. The Holkar rulers are honoured by a cluster of tombs and cenotaphs at Chhatri Baag. The night market Sarafa Bazar sells street food. East is the Indo-Gothic Gandhi Hall and clock tower. The Jain Temple Kanch Mandir has a mirrored mosaic interior.

The Grand Bhagwati Palace is Indore’s finest 5 Star state-of-the-art technology hotel, which serves only vegetarian food, operated and managed to the highest standards set by TGB in Catering all over India & abroad. The hotel is located on 8.62 acres, with its beautiful gardens & banquet halls, its exquisite architecture and splendorous décor.

Kindly block your diaries - Complete details including topics and faculty is given below. Airlines have slashed prices for flights to Indore. So, book early and save more!!

Sr. No.

Topic Speaker

A. Group Discussion Papers1. Recent Developments in International Taxation CA Padamchand Khincha &

Mr. K. K. Chaitanya, Advocate2. Case Studies on MLI & BEPS CA Geeta Jani*3. Foreign Trusts – Tax and Regulatory Implications for resident Indians CA Anup P. Shah B. Presentation Papers1. Tax & Regulatory aspects of Panama/ Paradise/HSBC leaks Chairman: CA Dilip J. Thakkar

Speaker: Mr. Amit Desai, Senior Advocate2. US Tax Reforms – India Impact Chairman: CA Rashmin Sanghvi

Speaker: Mr. Hariharan Gangadharan, Advocate

3. GST Impact on Cross-Border Transactions Mr. K. Vaitheeswaran, AdvocateC. Panel Discussion

Case Studies on International Taxation and Transfer Pricing ChairmanMr. Saurabh Soparkar, Senior Advocate

PanellistsEminent Faculty Eminent Faculty

*Subject to confirmation


Conference FeesUp to 31st March, 2018 After 31st March, 2018` 16,500/- + ` 2,970/- (18% GST) = ` 19,470 /- for members ` 18,000/- + ` 3,240/- (18% GST) = ` 21,240/- for members` 18,000/- + ` 3,240/- (18% GST) = ` 21,240/- for non-member ` 19,500/- + ` 3,510/- (18% GST) = ` 23,010/- for

non-members

Notes:1. Conference will start at 2.30 p.m. on 21st June preceded by lunch from 12.30 p.m. onwards. It will end on 24th June by 2.00 p.m. followed by

lunch. Participants are advisded to book tickets accordingly.2. Indore airport and indore railway station are about 25 mins. from the hotel. Delegates have to make their own travel arrangements from/to

airport / railway station to hotel. Prepaid taxis are available.3. Conference fee is inclusive of 3 nights / 4 days accommodation on double-occupancy basis, including meals for all 4 days, course material,

and use of certain hotel facilities on complementary basis.4. If the participant has identified his room partner, request you to communicate the choice of the room partner while filling up

the form.5. In case of cancellation, no refund request shall be entertained, except under genuine unavoidable circumstances and subject to the discretion

and approval of the International Tax Committee.Interested Members may enroll from The Chamber’s website www.ctconline.org to make online payment. Members can also download the “Form” from The Chamber’s website www.ctconline.org or may collect it from The Chamber’s office and send it along with the Cheque/DD/Pay Order in favour of “The Chamber of Tax Consultants”. Outstation members are requested to make the payment by at par Cheque / Demand Draft only. Debit / Credit Cards accepted.

Co-ordinator : Mr. Hitesh Shah – Manager, CTC. Mobile : 9821889249

4TH INTERNATIONAL STUDY TOUR AT HOTEL LE MERIDIEN, MAURITIUSWe are pleased to inform you that the International Taxation Committee of the Chamber of Tax Consultants is set to hold 4th International Study Tour at Le Meridien, Mauritius on 28th April, 2018 to 2nd May, 2018.The tour details is as under:

HIGHLIGHT: • Visit to Finance Ministry of Mauritius • Presentation on various tax treaties of Mauritius with specific reference to India • Taxation of Mauritius Company

ENROLLMENT CLOSED

FEMA STUDY CIRCLE MEETING JOINTLY WITH INTERNATIONAL TAXATION STUDY CIRCLE, DIRECT TAX STUDY CIRCLE AND

INDIRECT TAX STUDY CIRCLE


Chairman: Rajesh P. Shah Co-Chairman: Rajesh L. Shah Vice-Chairman : Kartik Badiani Convenors : Rakesh Upadhyay, Shreyas Shah, Isha Sekhri, Harshal Bhuta Co-ordinators : Bhaumik Goda, Kartik Mehta

The details of the next meeting of the FEMA Study Circle jointly with International Taxation, Direct Taxes and Indirect Taxes Study Circles are as follows:

Day & Date : Tuesday, 6th March, 2018Group Leaders

: CA Isha Sekhri and CA Bhaumik Goda

Topic : Bitcoins - Tax and Regulatory ImplicationsTime : 6.00 p.m. to 8.00 p.m.Venue : CTC Conference Room, 3, Rewa Chambers, Gr. Floor, 31, New Marine Lines, Mumbai-400 020

PUNE STUDY GROUP COMMITTEE

PUNE STUDY GROUP (FOR PUNE SG MEMBERS ONLY)

Convenors: Sachin Sastakar, Shreedhar Pathak Co-ordinators: Sunil Vaidya, Mehul Shah

Day & Date : Saturday, 17th March, 2018Topic : Discussion on Benami Property LawFees : ` 472 (Inclusive of GST) for Single MeetingSpeaker : CA Sagar TilakVenue : ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road, Next to Atur Centre, Pune-411016. Maharashtra



TWO DAYS INTENSIVE STUDY COURSE ON FOREIGN EXCHANGE MANAGEMENT ACT (FEMA)

JOINTLY WITH DELHI CHAPTER

Chairman: Rajesh P. Shah Co-Chairman: Rajesh L. Shah Vice-Chairman : Kartik Badiani Convenors : Rakesh Upadhyay, Shreyas Shah, Isha Sekhri, Harshal Bhuta

Co-ordinators : Bhaumik Goda, Kartik Mehta

Days & Dates Friday, 23rd March & Saturday, 24th March, 2018Time Registration 9:30 a.m. to 10.00 a.m.

Session : 10.00 a.m. to 5.00 p.m.Venue India International Centre, Lecture Room I/II, Annexe Building, Dr. K.K. Birla Lane, Max Mueller

Marg, Lodhi Estate, New Delhi-110 003

The Chamber of Tax Consultants - Delhi Chapter is pleased to announce the Intensive Study Course on FEMA to understand the subject in detail and handle various day-to-day transactions in practice.

Course is also targeted for the professionals who wish to consider the subject as an aid to the Global Transaction practice as well as for those who want to consider the subject as a New Practice area.

The course is carefully designed to achieve the objectives and spread over two days – 23rd & 24th March 2018, to be addressed by eminent professionals in the field including Case Studies and Brains’ Trust Session where most of the questions will be replied by the eminent and Brains’ Trustees.

Date Session SpeakersFriday, 23rd March, 2018 Guest of Honour: Mr. Ajay Singh, President

• Overview of FEMA, Important definitions, Structure of the Act, Rules and Regulations, Capital and Current Account Transactions; Residential Status

CA Vijay Gupta

• Immovable Properties in India & Outside India CA Rajesh P. Shah• Borrowings and lending in Rupees and Foreign Exchange Mr. Divyanshu Pandey, Advocate• Setting up of Liaison Office, Branch Office, Project Office

and posting Representatives in India by foreign entitiesCA Hinesh Doshi

Saturday, 24th March, 2018 • Outbound Investments CA Amithraj AN• Foreign Inbound Investment - FEMA 20(R)/Schedules 1

(FDI/capital instruments), 4 (Investment on non-repatriation basis) & 6 (Investment in a Limited Liability Partnership)

Mr. Lalit Kumar, Advocate

• Law and Procedure on Compounding of Offences under FEMA

CA Deepender Kumar Agarwal

• Brain’s Trust Session/Panel Discussion/ Case studies CA Paresh P. Shah & CA Anup Shah

Fees : Members: ` 2,712/- + ` 488/- (18% GST) = ` 3,200/-Non-Members: ` 3,390/- + ` 610/- (18% GST) = ` 4,000/-For Students : ` 2,119/- + ` 381/- (18% GST) = ` 2,500

Payment may be made by Cheque in favour of ‘The Chamber of Tax Consultants’, and sent to the Delhi Chapter of The Chamber of Tax Consultants, 1A-D, Vandana Building, 11 Tolstoy Marg, New Delhi-110 001.You can also remit the money online to our account through NEFT, as per bank details provided below.

Saving Bank Account Number 233010100194495Name and address of the bank Axis Bank Ltd.Branch Address: New Marine Lines, Mumbai(MH), Mumbai - 400002Name of Beneficiary The Chamber of Tax ConsultantsNEFT/RTGS Code UTIB0000233

For any query on registration and further detail, please contact Ashwani Kumar (Mob. 9891677316, [email protected]).


Dear Members,SUB. PAYMENT OF ANNUAL MEMBERSHIP FEES FOR 2018-19

1st March, 2018

It’s our privilege to have been of service to you over the years. We truly appreciate and value your association. It’s time to renew annual membership and subscription of The Chamber’s Journal, Study Group and Study Circle Meetings and other subscription of The Chamber of Tax Consultants (“The Chamber”). The renewal fees for Annual Membership, Study Group and Study Circle and other Subscription for the financial year 2018-19 falls due for payment on 1st April, 2018. We thank you for your subscription. Your involvement is important and very much appreciated. We hope you will always continue to support the Chamber in its activities and growth as done in the past.

Thanking You,

For The Chamber of Tax Consultants

CA Parag S. VedHon. Treasurer

Sr. No. Particulars Fees GST @18% Total1 Ordinary Membership Fees 2200 396 25962 Associate Membership Fees 5000 900 59003 Student Membership Fees 250 45 2954 Subscription for The Chamber’s Journal - Monthly (Life) 1200 0 12005 Subscription for The Chamber’s Journal - Monthly (Non) 2100 0 21006 Subscription for The Chamber’s Journal - Monthly (Student) 700 0 7007 Subscription for The International Tax Journal - Quarterly 2000 0 20008 Study Group ( Direct Taxes ) 2200 396 25969 Study Circle (Direct Taxes ) 1750 315 206510 Study Circle (International Taxation) 1500 270 177011 Study Circle (Indirect Taxes ) 2000 360 236012 Study Circle (Allied Laws ) 1500 270 177013 Self Awareness Series 600 108 70814 Intensive Study Group On Direct Tax 1750 315 206515 FEMA Study Circle 1500 270 177016 Intensive Study Group On Ind-AS 3000 540 354017 IT Connect Study Circle 2500 450 295018 Capital Market Study Circle 2500 450 295019 Pune Study Group 3500 630 4130

(Note: 10% Discount applicable for the registration of 3 or more Study Circles from Sr. Nos. 8 to 19) Notes:1. Payments should be made by Account Payee Cheque/Demand Draft in favour of “THE CHAMBER OF TAX CONSULTANTS”. Outstation

members are requested to send payments only by “Demand Draft or At Par Cheque”.2. A consolidated Cheque/Draft may be sent for all payments.3. Please also update your Mobile number & e-mail address to ensure receipt of regular updates on activities of the Chamber.4. Please write your full name on the reverse of Cheque/DD.5. Kindly pay your membership fees by 30th April, 2018 for uninterrupted service of the Chamber’s Journal.6. Subscribers opting to make payment through NEFT, are requested to e-mail the acknowledged copy of payment made together with their

name, mobile numbers to the Chamber’s office, so as to give correct credit to subscribers account.7. Members are requested to download the Renewal Form from Chamber’s website www.ctconline.org.8. Renewal Notices are also sent separately and members are requested to fill up the same and send it to the Chamber’s office along with

the cheque. 9. Renewal Notice contains entire information of Members as per CTC database. In case of any change in information of Member as shown

in form, kindly provide updated information along with the form.The details of NEFT payment are as under:In Favour of : The Chamber of Tax Consultants In Favour of : The Chamber of Tax ConsultantsName of the Bank : Axis Bank, New Marine Lines Branch, Mumbai-400 020 Name of the Bank : IDBI Bank, Nana Chowk Branch, Mumbai-400 007A/c No. : 233010100194495 A/c No. : 0166104000060738IFSC Code : UTIB0000233 IFSC Code : IBKL0000166Account Type : Saving Account Account Type : Saving Account

Members are requested to visit the website www.ctconline.org for online payment.

RENEWAL NOTICE – 2018-19


INDOOR BOX CRICKET TOURNAMENT

MEMBERSHIP & PUBLIC RELATIONS COMMITTEE

Chairman: Paresh Shah Co-Chairman: Sachin Gandhi Vice-Chairman: Lalitchandra Panchal Convenors: Mahesh Madkholkar, Keshaba Palo Advisor: Yatin Desai

Jointly with GSTPAM and MCTCSecond Indoor Box Cricket Tournament (with Tennis Ball) is organised by The Chamber of Tax Consultants jointly with The Goods & Services Tax Practitioners’ Association of Maharashtra and The Malad Chamber of Tax Consultants to enjoy and rejuvenate mind and body for better health for the members.This would provide an opportunity to enhance skills like sportsman spirit, team building, communication and build strong inter personal relationship and social bonding amongst members, which in turn shall lead to Professional Excellence.The brief details of the Tournament are as under:

Day & Date : Saturday, 10th March, 2018Time : 3.30 p.m. to 9.30 p.m.Venue : The Turf Club, Thakur Village, Kandivali (East), Mumbai - 400 101Charges : For Players: ` 750/-(Including GST) per person

For Guests: ` 250/- (Including GST) per person towards Tea/Dinner

The enrolment is restricted to 35 players per association on first-cum-first served basis. Interested members may enroll as a player with the enrollment fees in the following format: General Information

Name Mobile No. E-mail ID Age Membership No. Bowler/Batsman/Both

Let’s make the event memorable!!! We don’t stop playing since we grow old…but we grow old since we stop playing!!! …

For Details Please Contact Chamber’s Office on 22001787 / 22090423

INDIRECT TAXES COMMITTEEChairman: Naresh Sheth Vice-Chairman: Atul Mehta

Convenors: Bharat Oza, Hemang Shah, Sumit Jhunjhunwala Advisor: A. R. Krishnan

Day & Date : Thursday, 22nd March, 2018Time : 5.15 p.m. to 8.30 p.m. (Discussion)

7.00 p.m. to 7.15 p.m. (Snacks)Group Leader : CA Vasant BhattTopic : Preparedness for GST AuditVenue : SNDT Committee Room, SNDT College, Churchgate

STUDY CIRCLE MEETING (FOR SC MEMBERS ONLY)

“WORKSHOP ON GST LAW” ORGANISED JOINTLY WITH AIFTP (WZ), BCAS, GSTPAM, MCTC & WIRC OF ICAI FOR THE YEAR 2017-18

Day & Date Wednesday, 7th March, 2018 to Wednesday, 14th March, 2018

Time Session: 2.00 p.m. to 5.30 p.m.

Venue GSTPAM, Mazgaon Library, 1st Floor, 104, Vikrikar Bhavan, Mazgaon, Mumbai - 400 010

Program Schedule

Date Topics Speakers7/3/2018 Issues in Time & Place of Supply of Services CA Naresh Sheth

Provisions related to inspection, search, seizure and summons Mr. C. B. Thakar, Advocate14/3/2018 Mega Brains’ Trust session CA A. R. Krishnan, CA Sunil Gabhawala

Ms. Nikita Badheka, Advocate & CA Parind Mehta


MEMBERSHIP & PUBLIC RELATIONS COMMITTEE

Chairman: Paresh Shah Co-Chairman: Sachin Gandhi Vice-Chairman: Lalitchandra Panchal Convenors: Mahesh Madkholkar, Keshaba Palo Advisor: Yatin Desai

SEMINAR ON “GST Case Studies and Anti-Profiteering in Real Estate & Tourism Sectors”JOINTLY with ICAI Goa Branch and GCCI

Day & Date : Saturday, 3rd March 2018Time : 9.30 a.m. - 5.30 p.m.Venue : Institute Menezes Braganza Hall - Panaji, Goa

TIME SESSION / SUBJECT FACULTY

9.00 - 9.30 a.m. Registration

9:30 - 1:00 a.m. GST Case studies and anti-profiteering in Tourism Sector with question and answer session

CA Sunil Gabhawala

1:00 - 2:00 p.m. Lunch Break

1:30 - 2:00 p.m. Registration for those only attending full session

2:00 - 5:30 p.m. GST Case Studies and Anti-Profiteering in Real Estate withquestion and answer session

CA Naresh Sheth

Participation fees are as under with option to register for either programmes or both as per your choice and with early bird incentive.

Particulars Fees

Full day – both sessions including tea and lunch ` 1,600

Tourism Sector - 1st half includes only tea ` 850

Real Estate Sector – 2nd half includes only tea ` 850

Those interested are requested to kindly register in advance with GCCI (Ph. 0832 2424252) or e-mail at [email protected]. Register early to avoid disappointment.

STUDENT COMMITTEEChairman : Sanjeev Lalan Vice-Chairperson : Niyati Mankad

Convenors : Ryan Fernandes, Sachin Maher Advisor : Parimal Parikh

Days & Dates : Friday, 6th and Saturday, 7th April, 2018

Sessions : 6th April, 2018 - Preliminary Round7th April, 2018 - Quarter final round, Semi-final round & final round

Who should attend?

: Open to all

The Objective : To give an opportunity to students of various Law Colleges from all over the country to prepare and argue on a case involving Income Tax implications on Bitcoin related transactions before eminent lawyers, Members of the ITAT and Judges of the High Court.

45TH SIR JAMSHEDJI KANGA AND DR. Y. P. TRIVEDI NATIONAL TAX MOOT COURT COMPETITION

Organised by The Chamber of Tax Consultants jointly with Government Law College in association with Sir Jamshedji Kanga Moot and Rotary Club of Bombay


Charitable Trusts derive income from various sources like rent income, income from trading in goods etc. There is a lot of controversy on applicability of GST to charitable trusts. The speakers would cover the main topic of applicability of GST to charitable trusts and precautions to be taken by such trusts.The learned faculty will take up various legal aspects under Maharashtra Public Trusts Act 1950 and issues while drafting deed.From income tax point of view, the learned faculty will take up issues in registration and also approval under the Income-tax Act, apart from taxation of charitable trusts.The seminar would be beneficial to NGO, trustees, accountants of trusts, lawyers, students and tax professionals at large.The relevant details of the workshop are as under:

Day & Date : Friday, 23rd March, 2018 SpeakersTime : 2.30 p.m. to 8.00 p.m.Venue : Jai Hind College, AV Room, 4th Floor, Churchgate, Mumbai-400 020.Topics 1. Issues in GST (Applicability, Credit, Classification, Procedural, etc.) CA Rajiv Luthia

2. Drafting of Trust Deed, Issues in Registration of Trust under various statutes (Is registration with Charity Commissioner necessary in Maharashtra and Gujarat) and post registration compliance under various statutes.

CA Paras Savla

3. Live Issues about registration, charitable purpose, controversies under Section 11(2), assessments etc. under Income-tax Act in relation to Taxation on Charitable Trustes

CA Gautam Nayak

Fees : Members: ` 650/- + ` 117/- (18% GST) = ` 767/-

Non-Members: ` 1,050/- + ` 189/- (18% GST) = ` 1,239/-

Days & Dates : Thursday, 8th, Friday, 9th and Saturday, 10th March, 2018Time Registration – 3.00 p.m. to 3.30 p.m.

1st Session - 3.30 p.m. to 5.30 p.m.

High Tea 5.30 p.m. to 6.00 p.m.

2nd Session - 6.00 p.m. to 8.00 p.m.Sessions 6 Sessions of 2 hours eachWho should attend?

Article Students

The Objective To provide basic knowledge of all the day-to-day activities at office along with understanding of subjects in practical manner.Venue Maharashtra Seva Sangh Hall, Near Apna Bazaar, Jawaharlal Nehru Road, Mulund West, Mumbai-400 080

Sr. No.

Topic Speaker

1 Basics of Income Tax TDS/TCS and Returns CA Rakesh Vora2 Basics of Income Tax and Practical Aspects CA Kalpesh Katira3 Basics of GST Returns and Forms CA Hemang Shah4 Basics of Company Audit, Documentation and Practical Aspects CA Jatin Lodaya5 Office Etiquettes CA Mamta Sheth6 Management Games CA Nisha GalaFees : Student Members: ` 950/- (Inclusive of GST and Student Membership for One Year)

DIRECT TAXES COMMITTEE

STUDENT COMMITTEE

HALF DAY SEMINAR ON CHARITABLE TRUSTS

STUDENT ORIENTATION COURSE

Chairman: Ashok Mehta Vice-Chairman: Abhitan Mehta Convenors: Dinesh Poddar, Neelam Jadhav, Dharan Gandhi Advisor: K. Gopal

Chairman: Sanjeev Lalan Vice-Chairman: Niyati Convenors: Sachin Maher, Ryan Fernandes Advisor: Parimal Parikh


DIRECT TAXES COMMITTEE

WEBINAR ON TAXATION OF PRIVATE TRUSTS/ FAMILY TRUSTS AND ESTATE PLANNING WITH THE HELP OF PRIVATE TRUSTS

INTENSIVE STUDY GROUP MEETING (FOR DT-ISG MEMBERS ONLY)

Chairman: Ashok Mehta Vice-Chairman: Abhitan Mehta Convenors: Dinesh Poddar, Neelam Jadhav, Dharan Gandhi Advisor: K. Gopal

Day & Date : Thursday, 8th March, 2018Time : 6.00 p.m. to 8.00 p.m.Speaker : CA Paresh ShahWho should attend?

: Tax professionals / HNI / Lawyers / NRI resident outside India.

The Objective : 1. To understand the taxation of private trusts 2. To understand use of private trust as a tool to plan succession of property through trust 3. To understand use trust as tax efficient tool to plan affairs of NRI and HNIs

Fees : ` 200/- (inclusive of GST)

Note : The Webinar will have a question and answer session at the end. Members can send their questions in advance by e-mail at:[email protected]. Please enrol at the earliest for the above useful webinar.

Day & Date : Tuesday, 13th March, 2018

Topic : Recent Important Decisions under Direct Taxes with special Reference to Landmark decisions on Stay of Demand & Prosecution

Speaker : CA Devendra Jain

Venue : CTC Conference Room, 3, Rewa Chambers, Gr. Floor, 31, New Marine Lines, Mumbai-400 020

Day & Date : Tuesday, 20th March, 2018

Subject : Recent Judgments under Direct Taxes

Speaker : Mr. Deepak Tralshawala, Advocate

Time : 5.45 p.m. to 6.15 p.m. (Snacks) 6.15 p.m. to 8.00 p.m. (Discussion)

Venue : SNDT Committee Room, SNDT College, Churchgate, Mumbai-400 020

Note : During the Course of the meeting, 5 to 10 minutes will be devoted for discussion on Understanding a Latin Legal Term.” The speaker for the same will be announced later.

STUDY GROUP MEETING (FOR SG MEMBERS ONLY)

Chairman: Ashok Sharma Vice-Chairman: Dilip Sanghvi Convenors: Dinesh Shah, Jitendra Singh, Bhavin K. Shah Advisor : Vipul Joshi

STUDY CIRCLE & STUDY GROUP COMMITTEE

1st, 2nd and 3rd Edition available - ` 600/- per copy.


UNREPORTED DECISIONS (Direct Taxes)By Prakash Kumar Sinha, Chartered Accountant

1. Section -2(47) Transfer of capital assets -when transfer takes place – Mere advance against such transfer, when defacto transfer didn’t take place – Not taxable – Section 145A-valuation of closing stocks - Didn’t follow AS-2. Increased by the tax element without giving corresponding effect on opening stocks – Not allowed.

Where the assessee had received an advance to transfer its equity holdings in a different company, which ultimately couldn’t take place due to dispute, and, the AO levied the Capital Gain tax considering the date of receipt of advance as a transfer of share u/s. 2(47). The assessee contended that there was no de-facto or de-jure transfer of share but just on advance against such proposed transfer, which ultimately could not fructify and there was no contrary finding of revenue .The Tribunal allowing the appeal relied on the argument placed and ruling in the case of Excel Industries ( SC) ( 2014) (13 SCC 459), Shoorji Vallabhdas 46 ITR 144 and held that the tax cannot be levied on the hypothetical income. Further relying on Morvi Industries (1972) 4 SCC 451, the tribunal held that income accrues when there arises a corresponding liability of the other party from whom the income due to pay that amount.

Further as the revenue agitated through cross-appeal, against the order of CIT(A) allowing the appeal of assessee, where the addition was made by AO enhancing the valuation of closing stock to the extent of VAT and Excise duty under Section 145A and without providing corresponding adjustment in the opening stock and purchase , even though assessee had submitted that the effect of such adjustment will be NIL following the AS-2. The Tribunal relying on the ICAI guidelines and Mahavir Aluminum 297 ITR 77 held that if there is any change in the closing stock u/s. 145A, there must be corresponding adjustment in the opening stock and other accounts and accordingly didn’t interfere in the order of CIT (A), accordingly rejected the appeal of revenue and in favour of assessee.

(Supreme Industries vs. DCIT Ghaziabad & cross appeal. ITA NO -431/DEL /2016. AY 2011-12. ITAT Delhi).2. Section 147- Reassessment – reason to believe – Reopening the assessment on the basis of AIR report in mechanical way without application

of mind – Not allowed. Invocation of section 147, where the satisfaction note prepared on the basis of the AIR report of purchase of immovable property of ` 35 lakh and

mechanical approval of Higher Authorities of such satisfaction note, the Tribunal relying on the order of Delhi High Court in the case of N. C. Cables Limited as reported in 98 CCH 0018 dated 11/1/2017 held that where the approving authority has not applied their mind while approving, will be a mechanical approval and thereafter assuming the jurisdiction by AO will be nullity. The Tribunal has further relied on S. Goyana Lime & Chemicals and held that mechanical approval is not a proper approval and thereafter the assumption of jurisdiction u/s. 147 is without the sanction of law and hence quashed the assessment order and allowed the appeal of assessee.

(Mohd Raees vs. ITO Delhi. ITA NO 3763/DEL/2017. AY 2008-09. Delhi ITAT) 3. Section 54 -Relief from tax on reinvestment of proceeds from transfer of long term capital asset- substantial relief- Procedural sub-section(2)

not complied – Relief cannot be denied. On the issue of relief under Section 54, allowing the appeal in the favour of assessee held that sub-Section (1) is the substantial provision which provides

the substantial benefit to the assessee, whereas sub-section (2) is the enabling provision, which cannot abridge or modify the substantive right to the assessee in terms of sub section (1). The assessee after transfer of residential house paid the amount to the builder /developer of the new assets within 2 years however as per the agreement, new assets were to construct within a period of four years. By doing so, she has not parked the fund in the capital gains deposit scheme in terms of sub-section 2 of 54. The AO rejected the claim of Section 54 and CIT(A) upheld the AO order and rejected the assessee appeal.

On the first point wherein the payment has been made within 2 years of transfer but new assets has to be delivered after four years, the ITAT relying on the case of Madhu Kaul (P&H High Court), Bharti Kothari (2000) 160 CTR165 (Kol HC) held that if agreement for purchase of residential flat is made and the entire amount has been paid within three years from the date of sale, the basis requirement of section 54(1) is fulfilled. On the second issue of non-depositing the fund with the deposit account as per sub section (2) of 54, the ITAT relying on K Ramachandra of the Karnataka HC held that the section 54F(4) is pari-materia to 54(2) and held that what matters is the intention of the assessee to purchase/construct the new house. The HC had held that if there is no intention to retain cash but to invest construction /purchase of new assets and if such investment is made within the period stipulated therein, section 54F(2) is not at all attracted.

(Seema Sabharwal Vs ITO Panchkula. ITA No 272 /CHD/ 2017) AY 2013-14 ITAT Chandigarh)4. Section 263 – Power of CIT for revision – Explanation-2, Deemed to be erroneous Payment under Section 40(a)(v) – akin to FBT. Section 115JB

Explanation-2 Income tax does not include FBT unlike section 2(43). On the issue of section 263, allowing the appeal of the assessee, ITAT held that Explanation-2 of Section 263, which creates a deeming fiction that the

order of the AO shall be deemed to be erroneous in so far as it is prejudicial to the interest of the revenue, if in the opinion of the CIT, the order is passed without making any inquiries or verification which should have been made, has twin necessary conditions that have to satisfied first that the order has been passed by AO without making any inquiries or verification and second that very action of AO was prejudicial to the interest of the revenue. These twin condition has to cumulatively satisfied. On Merit it relied on the Vintage Distillers as reported in 130 TTJ 79 and held that definition of section 2(43) defining the term Income-tax cannot be read in the Explanation 2 of Section 115JB as said explanation is a specific explanation does not cover the fringe Benefit tax and consequently employee benefit cost which are akin to the FBT in terms of section 40(a)(v) and are not below the line item , cannot be add back for book profit u/s 115JB. The reliance was also placed in the case of Reliance Industries (ITA No. 5769/M /2013 dated 16/09/2015) wherein it was held that wealth tax does not form part of the Income-tax and cannot be add back to arrive the book profit in terms of 115JB. The assessee has contested the order of CIT u/s. 263 wherein the AO was directed to recompute MAT u/s. 115JB on the allegation that employee benefit expenses being the tax borne by the assessee on the deemed perquisite on the value of accommodation provided to employee and which were not admissible in terms of section 40(a)(v), was omitted to be add back while arriving the book profit u/s. 115JB. The ITAT set aside the order with a conclusion that although the AO has made no inquiry into this matter, but it was not prejudicial to the interest of the revenue because unlike Section 2(43), the Explanation-2 of Section 115 JB does not include the term FBT and further it is not below the line item.

(Rashtriya Chemicals & Fertilizers Limited vs. CIT LTU, ITA 3625/MUM/2017. AY 2012-13. ITAT Mumbai) 5. Section – 147 – Change of opinion – Proper assessment u/s 143(3) and 144C (13) completed. AO invoked Section 147 on the basis of some

ruling of another assessee – Not allowed. Section 147 was invoked based on the reason to believe that the assessee has escaped the tax in the light of order in an another case ONGC vs. Foramer,

France wherein it was held that in given nature of income the Section 44DA will apply and thereafter read with Section 115A the tax rate of 20% will apply, whereas the assessee has applied Section 44BB and tax @ 10% was paid. Allowing the appeal of the assessee against the order u/s. 147, held that where the assessee paid the tax u/s. 44BB and return has been processed u/s. 143(3) and 144C (13), and therefore set aside the reassessment order. The ITAT


relied on the Jurisdictional High court case of B. J. Services company Middle East limited as reported in 339 ITR 169 wherein the court confronted with the similar question, held that where assessment u/s. 143(3) has been completed by applying the section 44BB after making proper inquiries could not have legally reopened on the basis of decision of ONGC Vs Foramer, France. Further it also held that such amendment in 44BB and 44DA is prospective in nature.

(IPR international vs. ADIT, International tax, Dehradun. ITA NO 4408 /DEL/2011) AY 2005-2006. ITAT Delhi 6. TDS u/s 194J or 194C. Payment in the nature of royalty – Covered in the Royalty definition expanded by explanation-6 inserted from Finance

Act 2012 with retrospective effect 1976- Impossibility of performance. The assessee deducted the TDS on the channel placement fees u/s. 194C and paid the tax. AO contended that payment is in the nature of royalty as per

explanation 6 of the section 9(1) (vi) which came through Finance act 2012 with retrospective effect 1976 and accordingly covered u/s 194J and demand was raised for differential tax. The DRP as well ITAT both rejected the revenue contention. Rejecting the revenue appeal u/s 260A, the Bombay HC held where the respondent NGC Network India had paid the Channel placement fees by deducting the TDS @2% u/s 194C and not as royalty applying 194J as contended by the department, upheld the view of both the DRP and ITAT as the matter was related to retrospective amendment. The Honorable court held that assessee cannot be called upon to perform an impossible act i.e. to comply with a provision not in force at the relevant time but introduced later by retrospective amendment. The court applied the principle of legal maxim – Lex non cogit ad impossibilia as discussed in the case of Celloplast as reported in 209 Taxman 617. The amendment of Section 9(1)(VI) by way of Explanation 6 came on 2012 with retrospective effect from 1976 and hence couldn’t have been contemplated by the respondent when he made the payment was subject to 194C only and therefore dismissed the revenue appeal.

(CIT-11 vs. NGC Network India Private limited. ITA NO 397/2015. AY 2009-2010 Bombay HC).

Note : THE WHOLE DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG UNDER KNOWLEDGE CENTRE

UNREPORTED DECISIONS (Service Tax)By Vinay Jain, Chartered Accountant, & Sachin Mishra, Advocate

1. Whether service tax can be demanded on the discount received by the appellant on bulk purchase of CNGs for sale from a CNG manufacturing company?

Facts & Pleadings: M/s. Hindustan Petroleum Corporation Ltd. (hereinafter referred to as “the Appellants”) is a Government owned Public Sector Undertaking engaged in the business of refining and distribution of petroleum products through a network of depots/installations. The appellant entered into contractual arrangement with M/s. Indraprastha Gas Ltd. (hereinafter referred to as ‘IGL’), who are engaged in the manufacture of Compressed Natural Gas (hereinafter referred to as ‘CNG’). The contract envisaged the appellant in buying CNG in bulk from IGL on discount, for sale.

According to the department, the CNG supplied by the IGL continues to be the property of the IGL and there is no sale by the Appellant to the retail customers. The sale of CNG is by IGL itself through the appellant. Thus, as per the Revenue the considerations received by the Appellant from IGL are in the nature of commission for rendering ‘Business auxiliary Service’ in terms of Section 65(19) of the Finance Act, 1994.

The appellants have argued that the amount in dispute, is merely a discount from the price of gas payable by the appellant to the IGL. Such discounts on a sale transaction cannot be subjected to any service tax. The supply of gas by IGL to the appellant is with payment of excise duty. In this regard, The appellant relied on the decision of the Tribunal in Bharat Petroleum Corporation Ltd. – 2014-TIOL-1114-CESTAT-MUM and Indian Oil Corporation Ltd. vide Final Order No. 57596-5757/2017 dated 6.10.2017.

Judgment: The Hon’ble CESTAT agreeing with the contentions of the Appellants has held that as the appellant is buying the CNG from IGL, there cannot be the question of rendering any service to the client for marketing of the goods. Further, by applying the ratio laid down in the decision of Indian Oil Corporation Ltd. case (supra), the Hon’ble Tribunal has held that the transaction between IGL and the appellant are on principal to principal basis. The Hon’ble CESTAT has further observed that the agreement categorically states that the appellant has been prohibited from holding himself as an agent of IGL. Thus, the discount received by the appellant from IGL cannot be considered as ‘commission’ for the purpose of making a demand under ‘Business Auxiliary Service’.

Hindustan Petroleum Corporation Ltd. appellants vs. CCE, Delhi-II, Gurugram, CESTAT, New Delhi decided on 12.02.2018 in Service Tax Appeal Nos. 59270/2013 and 53654/2014.

2. Whether the goods should be produced only using the raw materials supplied by the clients to avail the exemption under Notification No. 8/2005-ST dated 01/03/2005?

Facts & Pleadings: M/s. Perfect Rubber Linings (hereinafter referred to as “Respondent”) is a proprietary firm and is engaged in the work of rubber lining and other parts thereof on job work basis for M/s. Grasim Industries Limited (hereinafter referred to as “GIL”). For the said activity, the semi-finished goods were supplied by GIL. The respondents have not paid service tax by availing the exemption granted under Notification No. 8/2005-ST dated 01/03/2005 when the goods are produced on behalf of the client.

The Department has claimed that the respondent is not entitled to the exemption under Notification No.8/2005-ST dated 01/03/2005 as the respondent has used some of the rubber linings from their own account which was not supplied by GIL. Accordingly, the Department has taken the view that in terms of the proviso clause of the said Notification, since such goods are produced not exclusively using the raw material supplied by the client, the respondent will not be entitled to the benefit of notification exempting service tax.

Judgment: The Hon’ble CESTAT has observed that the proviso clause of the said Notification only states that the benefit has to be available, if the assessee is using the raw materials provided by the client. It does not specify that the goods should be produced only using the raw materials or semi-finished goods supplied by the clients. The Hon’ble CESTAT has held that in the present case, there is no dispute with regards to the fact that GIL is supplying the semi-finished goods to the respondent to carry on the activity of rubber lining. Hence, the respondent is entitled to the exemption under Notification No. 8/2005-ST dated 01/03/2005.

CCE & ST, Indore vs. M/s Perfect Rubber Linings, CESTAT, New Delhi, decided on 31.1.2018 in the Service Tax Appeal No. 50840 of 2014 with C.O. No. 53161 of 2014.

Note : THE WHOLE DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG UNDER KNOWLEDGE CENTRE


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