The Institute of Chartered Accountants of India (Setup by ... · The Institute of Chartered Accountants of India (Setup by an Act of Parliament) VOLUME - III 2013l APRIL THE INSTITUTE

The Institute of Chartered Accountants of India(Setup by an Act of Parliament)

VOLUME - III 2013l APRIL

THE INSTITUTE OF CHARTERED

ACCOUNTANTS OF INDIA

Tel. :

E-mail :

Web :

WESTERN INDIA REGIONAL COUNCIL

Tel. :

Email :

Web :

BARODA BRANCH OF WIRC OF ICAI

Telefax :

E-mail:

Web :

ICAI Bhawan, Post Box No. 7100,

Indraprastha Marg, New Delhi - 110002.

+91 (11) 39893989

[email protected]

www.icai.org

ICAI Bhawan, 27, Cuffe Parade,

P O Box No. 6081, Colaba, Mumbai - 400 005.

+91 (22) 39893989

[email protected]

www.wirc-icai.org

“ICAI Bhawan”, Kalali-Tandalja Road,

Atladra, Vadodara - 390 012.

+91 (265) 2681115 / 2680593

[email protected]

www.baroda-icai.org

Chairman's Message

Managing Committee

CA. Ashish Parikh CA. Kejal Pandya

CA. Vishal Doshi CA. Ashok Thakkar

CA. Bimal Bhatt CA. Neena Patel

CA. Tejal Parikh

CA. Ashish Parikh

CA. Nayan Kothari

CA. Pradeep Agrawal

CA. Yash Bhatt

CA. Viral Shah

CA. Abhishek Nagori

98252 31545

98244 33445

98985 60967

99243 88339

98243 62211

94260 75397

CA. Arpan Dodia 98983 83530

CA. Dhiren Parikh 93762 11099

CA. Kejal Pandya 98259 77220

Chairman

Vice Chairman

Immediate Past Chairman

Secretary

Treasurer

Ex-officio

Members

Editorial Team

` 20/- COPY

Index

Chairman and Managing Director of India's largest private

sector company; Chosen as ET Business Leader of the Year 2006; Ranked 42nd among the

World's Most Respected Business Leaders and second among the four Indian CEOs

featured in a survey conducted by PWC, is the face of new emerging

India. From childhood Mukesh was industrious and had a strong urge to become famous

and his indomitable wish to become famous and well known across the world today made

him one of the most successful entrepreneurs of the nation.

Reliance Industries Limited,

Mr. Mukesh Ambani

Baroda Branch of Western India Regional Council of The Institute of Chartered Accountants of India

BARODA BRANCH OF WIRC OF ICAI

Respected Members,

At outset let me wish you all a very Happy Financial Year

2013-14 and may the new financial year bring more

success and achievements for all of us.

On the very first day of the financial year our learned

Finance Minister , P. Chidambaram said that Indian

economy is capable of absorbing $50 billion in foreign direct investment per

year while promoting India as an investment destination. With this positive

avowal and the proposal of the Finance Bill 2013, let’s hope that Indian

economy will boost up and trim down the current account deficiency.

Dear members, it is matter of great pleasure for all of us that the enormous

“ICAI Tower” at Bandra –Kurla Complex, Mumbai , has been inaugurated with

the worthy hands of Sachin Pilot –Union Minister of Corporate Affairs. The

President and the members of the council have cordially invited the Managing

Committee members of the Baroda Branch ,our team remained present and

met ICAI president, Vice –President and the chief guest. It was memorable

event for us.

The month set in motion with the lecture meeting on Analysis of and

teleconferencing on Finance Bill 2013. A full day seminar on Companies Bill

2012 was also organised and the learned faculties shared their views on the

various aspects.

A public awareness program was organised for interacting with Income Tax

department on “Traces-a new website for TDS” which was well attended by 150

+participants. Another public awareness program was organized on “Investor

Awareness“ where the participants took the benefit of listening Mr.

PrakashDiwan, a regular commentator on CNBC and CNBC –awaz, along with

another learned faculty.

Full day seminar on Bank Branchaudit was organized where various faculties

imparted their knowledge alongwith the same, we took the opportunity to

felicitate our WIRC elected council members. On the top of it , there were

programs on practical issues on G-VAT , teleconferencing on Bank audit , works

shops for accountants.

Due to tremendous amendments in the Service tax regime, number of

administrative issues have raised. To smoothen the process and avoid any

administrative bottlenecks, Baroda Branch has made a strong representation

to the Service Tax Department which was welcome by number of members as

well as higher authority of the department.

The colourfull festival of Holi that bridges social gap and renew sweet

relationship wasjoyfully celebrated with singing and dancing along with family

members. The Baroda Branch has taken the initiative to celebrate the Women’s

day where spouses of male CA members and female CA members participated.

In the coming month, branch is planning to oragnise, Real Estate Conclave –

Legal , Accounting and Taxation aspects, in association with builders

association and one lecture meeting on the topic of cybercrime.

Every member of the Baroda Branch has voice and

we are always open to hearing from our members .

So give us your ideas , contribute your thoughts and

dreams to the future of our branch.

With warm regards.

Chairman - 2013CA. Ashish Parikh,

Pg.

Forthcoming Events ... 3

Income Tax Updates ... 4

Service Tax Updates ... 5

MIS from Banking

Software ... 6

Ten Power Tools ... 8

Leaders : Enablers of

and Performance ... 08

Photo Flash ... 11

Talents

Due Date Planner ... 10

Baroda Branch of WIRC of ICAI

“Integrity is doing the right thing, even if nobody is watching.”

2

INTERNATIONAL RESIDENTIAL REFRESHER COURSE (RRC)HONGKONG – -MACAU SHENZHEN@

Hotels Period Names of Hotel

HONGKONG 3 Nights / 3 Days Royal View Hotel or similar 4 Star Hotel

MACAU 2 Nights / 3 Days Venetian Hotel – World’s Best 5 Star Hotel

SHENZHEN 1 Night / 1 Day Century Plaza or similar 4 Star Hotel

Tour cost Amount (Rs.) Inclusions

Adult Per Person Twin Sharing Rs. 87,000/- Economy Class return airfare Ex. Ahmedabad.

Airport Taxes (Any fluctuation in the taxes may

reflect on the Tour Cost)

Hong Kong, Macau & Shenzhen visa are on arrival

without cost

To & Fro : Baroda - A’bad by Bus.

�

�

�

�

Child with bed Rs. 75,000/-

Child no bed Rs. 65,500/-

from 24th May ’13 to 31st May ’13 (Friday to Friday)

*Payments to be made by Cheque / DDs payable at Baroda,

to be drawn on “Baroda Branch of WIRC of ICAI”

CPE 10

TOUR ITINERARY

DAY 1 :

DAY 2 :

DAY 3 :

DAY 4 :

25 MAY - WELCOME TO HONG KONG- CITY

TOUR

26 MAY - HONG KONG - DISNEYLAND TOUR

27 MAY -HONG KONG - OCEAN PARK TOUR

28 MAY - HONGKONG -SHENZHEN - WINDOW

OF THE WORLD

Welcome to Hong Kong, the New York of Asia. Visit Hong

Kong City tour- Repulse Bay, Aberdeen Fishing Village

(Sampan ride optional), and Jewelry Factory & Factory

Outlet. Later visit Top Level Victoria Peak by 1 way tram ride

with Madame Tussauds Museum. Overnight in Hong Kong

hotel.

Visit for discover the world of enjoyment Disneyland - the

fifth Magic Kingdom style park and it is main attraction of

Hong Kong. The journey of fun divided into theme areas

Main Street USA, Fantasyland, Adventure land & tomorrow

land offers a decidedly flat experience. Amazing fireworks

explode to the masterfully choreographed sounds of classic

Disney music. Overnight in Hong Kong hotel.

Visit to Ocean Park tour- ranked seven in 'The World’s Most

Popular Amusement Parks’ by Forbes, Ocean park is mixture

of rides, roller coasters, Giant panda house, a jelly fish and

shark aquarium with more than 2000 fishes. Overnight in

Hong Kong hotel.

Visit for Shenzhen city tour - visit Mr. Deng Xiaoping’s Bronze

statue, souvenir shop & Museum. Later visit Window of the

World and enjoy live performance in window of the world

night show name ‘’the milestone of Square Art in China’. After

tour check in to hotel. Overnight in Shenzhen Hotel.

From Shenzhen to Macau by Ferry. Arrive Macau, transfer to

Hotel. Hotel check in time 1400 hrs. Afternoon depart for -

Macau Night Tour with dragon treasure show, souvenir shop

and Macau Tower. Overnight in Macau Hotel.

Day starts with a night along with casinos and shows and you

will be feeling sparkle in your eyes at the day time also when

you are enjoying Venetian which has something for everyone

like shopping, casinos, entertainment etc. Overnight in

MacauHotel.

Check out from the hotel and take a last glimpse of Macau.

Transfer from Macau to Hong Kongby direct ferry. Arrive

Hong Kong, transfer to Airport, and take a flight back to

home.

29 MAY -SHENZHEN - MACAU

30 MAY -MACAU

31 MAY - MACAU- HONG KONG - BACK HOME

DAY 5 :

DAY 6 :

DAY 7 :

Baroda Branch requests its

Members to register their name in advance as seats

are limited to 40 people. Registration will be based

on basis.

REGISTER YOUR NAME WITH

FOR ANY ENQUIRY CONTACT

Chairman, Baroda Branch

(M) 9825231545

:

“First Come – First Serve”

BARODA BRANCH ON 2680593, 2681115.

CA ASHISH PARIKH,


There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.

3

Forthcoming Events

Real Estate Conclave -

Legal, Accounting & Taxation Aspects

Organized & Hosted by Baroda Branch of WIRC of ICAI

Day & Date :

Time :

Topic Speaker

27.04.2013, Saturday

09.00 am to 06.00 pm

Inaugural Session Shri Saurabh Patel,

Energy & Petroleum

Minister, Government of

Gujarat

Guest of honour-

Shri Anand J Gupta,

Hon. Gen. Secretary,

BIA, Mumbai

Interplay of Legal,

Accounting & Income

Tax aspects including

ICAI new Guildance Notes

Interactive Session Commissioner of Income

Tax, Vadodara

Commissioner of Service

Tax, Vadodara

Commissioner of G-VAT,

Vadodara

Issues in FEMA & FDI CA. Natvar Thakkar,

Mumbai

Service Tax issues for

Builders, Developers,

Contractors including

Resi. Works contract

services

Issues under G-VAT for

Real Estate Vadodara

*(confirmation awaited)

CA. Tarun Ghia, CCM-ICAI,

Mumbai

CA. Pauloma Dalal,

Mumbai

CA. Prakash Thakkar,

Branch Events

Fees :

Venue :

1200/- on or before 15.04.2013,

thereafter 1500/-

Hotel Surya Palace, Sayaji Gunj, Vadodara

`

`

CPE 06

Seminar on Audit of Urban Co-op. BankOrganized & Hosted by Baroda Branch of WIRC of ICAI

Day & Date :

Time :

Topic Speaker


09.00 am to 05.30 pm

Inaugural Session Key Note Address by

Ms. Raxadevi , GM-

Reserve Bank of India

Management of credit –

exposure norms,

appraisal, sanction,

documentation, charge

over securities, monitoring

NPAS recoveries etc –

Observation based on

earlier inspection / audit

reports

Compliance with rules and

regulations applicable to National Institute of

a) Investments Co-operative Management

b) Prevention of Money

– Laundering

c) Banking Regulation Act

d) Audit etc.

Provisions of chapter X-B of

Gujarat Cooperation

Societies Act – regulations

relating to appropriation

of profits, waiver / write off

of bad debts etc, effect

of 97th amendment of the

constitution and the

relative amendment of state

Act

Notes of Accounts,

Accounting standards –

Rules relating to different

types of taxes payable by

UCB

Shri K.V. Lakum, Director,

NICM

Guest Speakers from

Guest Speakers from office

of the Registrar of Coop.

Societies

CA. Samir Parikh, Vadodara

1200/- on or before 15.04.2013,

thereafter 1500/-

Hotel Surya Palace, Sayaji Gunj, Vadodara

Fees :

Venue :

`

`

UBD

CPE 06

11th Batch of ISA Course

Days Date

Saturday & Sunday 13 & 14.04.2013






Fees :

Venue :

Fee for the course is 17500/-

ICAI Bhawan, Vadodara

`

Cricket Match of Senior Citizen Members withAll India Jamdar Association

Day & Date :

Time :

Venue :

07.04.2013, Sunday

10.30 am onwards

SRP Ground, Makarpura, Vadodara

Lecture meeting on Cyber Crime &Cyber SecurityDay & Date :

Time :

Faculty :

Fees :

Venue :


05.00 pm to 07.00 pm

Mr. Manish Gokani, Baroda

200/-

ICAI Bhawan, Vadodara

`

CPE 02


“The strength of a nation derives from the integrity of the home.”

4

Brief Note on Finance Bill 2013Complied by CA. Narendra Hindocha

The Government appears to have learned its lessons from

criticisms following large scale retrospective amendments

and overriding of judicial decisions and restrained itself this

time.

Even provisions stated to have loopholes are to be amended

prospectively.

Estate duty was expected but is not introduced.

As per the Speech of the Finance Minister, provision is to be

made to the effect that transactions in commodity derivatives

are not to be considered speculative but the necessary

provision is not seen in the Finance Bill.

1. Rates of tax

i) In case of individuals and other non-corporate assesses,

including non-residents, surcharge will apply for

Assessment Year 2014-15, at the rate of 10% in case total

income exceeds Rs.1/-crore. Tax including surcharge and

cess will work out to 33.99% which is higher than rate

applicable to corporate for income of Rs.10/-crores.

Rebate of upto Rs.2000/- to be allowed in case of

individuals having income upto Rs.5/- lacs.

ii) In case of Domestic Companies, Surcharge at the rate of

5% of Income-tax is payable in case total income

(including, where applicable, income computed under

section 115JB) exceeds Rs.1/- crore for Assessment Year

2013-14. For Assessment Year 2014-15, the rate of

surcharge will be higher at 10% in case such income

exceeds Rs.10/- crores. Along with Education Cess of 3%,

the effective rate of tax will be as under:

UptoRs.1/- crore 30.90 30.90

Exceeding Rs.1/- crore

but not Rs.10/-crores 32.445 32.445

Exceeding Rs.10/-crores 32.445 33.99

Also rate of Minimum Alternate Tax will now work out to

20.9605 in case of Income exceeding Rs.10/- crores while it

will remain same for income between Rs.1 crore and Rs.10/-

crores at 20.00775% and 19.055 % in case of income upto

Rs.1/- crore.

iii) With effect from 1-4-13, Dividend Distribution Tax will

now be increased by surcharge of 10%. Along with

education cess of 3%, the effective rate will now be

16.995 %.

iv) As regards non-residents, in case of companies other

than domestic companies, the rate of surcharge remains

at 2% for income exceeding Rs.1/- crore and not

exceeding Rs.10/- crores while it will stand increased to

5% for income exceeding Rs.10/- crores from

Assessment year 2014-15. In case of assesses other than

Some important provisions are as under:

Income Assessment

Year 2013-14

Rate (%) Rate (%)

Assessment

Year 2014-15

companies, surcharge of 10% will apply for income

exceeding Rs.1/- crore. Surcharge will apply also for tax

deductible at source and tax collectible at source.

v) The rate for tax under section 115A in respect of

payments of royalty or fees for technical services to non-

residents, shall stand increased from 10% to 25% with

effect from Assessment Year 2014-15. Deduction of

Income-tax at source from such payments, during the

financial year 2013-14, also to be at the increased rate.

Surcharge at new rates to be added in case of all

payments to all non-residents including payments of this

nature. Thereafter, education cess at the rate of 3% to be

added. Surcharge to be added at 2/5% in case of

companies and 10% in case of others in case amount

exceeds Rs.1/- crore/10 crores in case of company and

Rs.1/- crore in case of individual. As a result, total tax

incidence may work out to 25.750% or 26.265 or

27.0375% depending on the amount in case of company

and 28325 in case of others. In case the rate chargeable

under Double Taxation Avoidance Agreement is lower,

the lower rate will apply but this will be subject to the

requirement of obtaining certificate containing

prescribed particulars under section 90(4) as also

requirement to furnish Permanent Account Number

under section 206AA.

vi) New section 194IA will require deduction of tax at source

at 1% from payment for acquiring immovable property,

excluding agricultural land not located in prescribed

urban areas at a cost of Rs.50/- lacs or more after 1-6-13

. This will require even individuals to comply with

requirements relating to tax deductible at source

including obtaining of Tax deduction account number,

filing of returns, issue of certificate etc. Considering that

Permanent Account Number is not quoted in majority of

cases, section 206AA will come into play requiring

deduction at the higher rate of 20%.

vii) In case of other than equity oriented mutual funds, rate

of tax on income distributed to individuals/HUF

increased from 12.5% to 25%. That makes it almost same

as Bank Fixed deposit and in fact worse in case of

taxpayers in lower tax brackets.

Section 32AC to allow deduction of 15% of cost of new

p l a n t a n d m a c h i n e r y ( e x c l u d i n g o f f i c e

machines/vehicles/machines entitled to 100%

deduction) acquired and installed during financial year

2013-14 by a manufacturing company if such cost

exceeds Rs.100/- crores. Similar deduction also

allowable in following Assessment Year 2015-16.

At present, as per section 50C, in case of transfer of

immovables, in case the sale price is less than the value

assessable for the purpose of stamp duty, the value so

assessable is considered to be the sale price for

2. Deduction for investment in plant and machinery

3. Presumption of Value assessable for stamp duty as

Sale/purchase consideration :


Management is doing things right; leadership is doing the right things.

5

computing `Capital gains’. New section 43CA requires

addition on similar basis also in case of properties which

are held as stock in trade with effect from Assessment

Year 2014-15.

In case the buyer is individual or HUF, difference between

the stamp duty value and amount of consideration as per

sale document will be treated as income from other

sources by amendment in section 56.

From Assessment year 2014-15, by amendment in

section 10(10D) it is provided that key man insurance

policies will not be treated as keyman insurance policies

after assignment and will accordingly lose exemption.

4. Keyman Insurance Policies

Union Budget 2013 -Changes in Service TaxComplied by CA M. J. Parsiya

A. Legislative changes

Following changes are being made in the Finance Act,

1994, w.e.f. the date of enactment of the Finance Bill,

2013:

1. There are following changes in relation to the negative

list:

(i) The definition of approved vocational course in section

65B(11) is being proposed to be changed to:

(a) include courses run by an industrial training

institute or an industrial training centre affiliated to

State Council for Vocational Training; and

(b) delete clause (iii) dealing with courses run by an

institute affiliated to the National Skill

Development Corporation.

(ii) The definition of "process amounting to manufacture

or production" in section 65B(40) is being expanded to

include processes under the Medicinal and Toilet

Preparations (Excise Duties) Act, 1955

(iii) The negative list entry in sub-clause (i) of clause (d) of

section 66D is being modified by deleting the word

"seed". This will allow the benefit to all other testing in

relation to "agriculture" or "agricultural produce".

2. The provisions of section 73 are being modified such

that if the grounds for invoking extended period of 5

years are not sustained, the Central Excise officer will be

able to determine the demand for the shorter period of

eighteen months.

3. The penalty under section 77(a) is being restricted to Rs

10,000. Previously, the penal liability for failure to obtain

registration could extend to Rs. 10,000/- or Rs. 200/- for

every day of default, whichever was higher.

4. A new section 78A is also being introduced to impose

penalty up to Rs. 1,00,000/- on directors, manager,

secretary or other officer of the company, who at the

time of such contravention was in charge of, and was

responsible to, the company for the conduct of

business of such company and was knowingly

concerned with specified contraventions.

5. New Sections 90 and 91 are being introduced to

prescribe revised punishments for offences in section

89, make certain offences cognizable and others non-

cognizable and bailable. The Policy wing of the Board

will be issuing detailed instructions in due course.

The following changes are being made in the

exemption notification number 25/2012-ST, dated

20.06.2012 w.e.f 1st April, 2013:

(i) Exemption by way of auxiliary educational services and

renting of immovable property by (and not to) specified

educational institutes under S. No 9 will not be

available;

(ii) The benefit of exemption under S. No 15 of the

notification in relation to copyrights for cinematograph

films will now be available only to films exhibited in a

cinema hall or theatre. This will allow service providers

to pass on input tax credits to taxable end-users;

(iii) Exemption under S. No 19 will now be available only to

non air-conditioned (non-centrally air-heated)

restaurants; condition regarding ‘license to serve

liquor’ is being omitted. The main effect of the change

would be, restaurants in dry state like Gujarat, which

were up to now out of Service Tax net, are now being

covered.

(iv) The exemptions available to transportation of goods by

railway and vessel under S. No 20 and services provided

by a goods transportation agency (GTA) under S. No.21

are being harmonized. Thus exemption to

transportation of petroleum and petroleum products,

postal mails or mail bags and household effects by

railways and vessels will not be available while the

benefit of transportation of agricultural produce,

foodstuffs, relief materials for specified purposes,

chemical fertilizers and oilcakes, registered newspapers

or magazines and defence equipments will be available

to GTAs;

(v) The exemptions under S. No 24 for vehicle parking to

general public and S. No 25 for repair or maintenance of

government aircrafts are being withdrawn; and

(vi) The definition of "charitable activities" is being changed

by deleting the portion listed in sub-clause (v) of clause

(k). Thus the benefit to charities providing services for

advancement of "any other object of general public

utility" up to Rs 25 Lakh will not be available. However

the threshold exemption will continue to be available

up to Rs 10 lakh.

B. Exemptions

C. Abatement (This will come into effect from 1st

March, 2013.)


If your actions inspire others to dream more, learn more, do more and become more, you are a leader.

6

At present taxable portion for service tax purpose is

prescribed as 25% uniformly for constructions where

value of land is included in the amount charged from

the service recipient.

The existing notification no. 26/2013-ST dated

20.06.2012 is being amended by notification no.

2/2013-ST dated 01.03.2013. As per the change, where

the carpet area of residential unit is up to 2000 square

feet or the amount charged is less than one crore

rupees, in the case of 'construction of complex, building

or civil structure, or a part thereof, intended for sale to a

buyer, wholly or partly except where the entire

consideration is received after issuance of completion

certificate by the competent authority', taxable portion

for service tax purpose will remain as 25%. In all other

cases taxable portion for service tax purpose will be

30%.

Meaning thereby abatement in respect of residential

unit having carpet area of more than 2000 square feet

or value of Rs. 1 crore or more is being reduced from

75% to 70% (effective rate of service tax increases from

3.09% to 3.708%).

1. A new scheme is proposed to be introduced to

encourage voluntary compliance with the following

main features:

(I) The scheme can be availed of by non-filers or

stop-filers or persons who have not made a

truthful declaration in their return. However it will

not be applicable to persons against whom any

inquiry or investigation is pending by the issue of

search warrant or summon or by way of audit;

(ii) The defaulter will be required to make a truthful

declaration of all his pending tax dues (from

October1, 2007 to December 31, 2012) and pay at

least half of that before December 31, 2013;

remaining half to be paid by:

(a) June 30, 2014 without interest; or

(b) By December 31, 2014 with interest from July 1,

2014 onwards;

(iii) On compliance with all the requirements the

person will have immunity from interest (as

specified), penalties and other proceedings;

2. The scheme will come into force when the Finance Bill is

enacted. It is clarified that the tax-payers will need to

settle their dues for the period after December 31, 2012

under the present law.

The benefit of Advance Ruling Authority is being

extended to resident public limited companies

D. Voluntary Compliance Encouragement Scheme,

2013 (VCES)

E. Advance Ruling Authority

Some important MIS from theBanking Software- FinacleComplied by CA Aparna Ashtaputre

There is a general impression today that, concurrent Audit in

Bank Branches is tending to become an assignment of a

routine nature, having the same monotonous verifications to

be done. Sometimes the branches may also take a casual

approach towards the entire activity of concurrent audit.

However, if we as auditors want to show that the day to day

verification is indeed helpful for the branch to avoid

unnecessary delays and defaults, we need to conduct an

effective audit, by making the routine verification more

interesting and innovative. One way of doing this is by

exploring all the possible MIS that can be generated from the

system, as an audit tool.

The banking accounting software “Finacle” is used in many

banks. Listed below are some useful menus that would help in

carrying out audit effectively. These menus generate reports

for advances as well as deposit portfolios of the branch.

Most of the reports are generated through the main menu of

BOBMENU, in the ‘reports login’ of Finacle.

Under BOBMENU, there are further classifications such as

Daily Reports, Error/Warning reports, and miscellaneous

reports.

• Excess overdrawn report Accounts which are

overdrawn beyond limit

sanctioned. The report

shows the type of

account and date since

when the account is

overdrawn, date when

t h e a c c o u n t i s

regularised.

• TDA accounts not having Credit

or Repayment account account for interest

payout, so the interest

g e n e r a t e d e i t h e r

quarterly or monthly

does not get credited to

Sundry Accounts.

• FD balance mismatch FD that is opened but

not funded, for any

reason, which needs to

be closed/funded, as the

case may be

• Report of LABOD

1. Menus generated from Finacle Reports Login:

Menu Purpose

Daily reports:

Error/Warning reports:

Useful in putting correct

This report shows


The time is always right to do what is right.

7

Account-security details LABOD accounts under

Scheme Code-LA172

and OD002, for which

the FD that are kept as

s e c u r i t i e s a re n o t

recorded in the register.

This report helps in

monitoring the rate of

interest in the LABOD is

updated as per the FD

rate from time to time.

• Loans where interest on

interest Flag is ‘N’ loans, if the repayment is

delayed, the system

should charge interest

on the interest on the

EMI. If the Flag is ‘N’, this

would not happen.

• Accounts having interest

collection Flag as ‘N’ will not be debited to the

loan account resulting in

income leakage

• RTGS Transaction report This report is important

for reporting inform-

a t i o n a b o u t RTG S

affected in the branch

during the month, both

inward and outward

RTGS.

• Accounts opened in different

schemes, during the month

can be known, from ACS menu

• Accounts closed during a

period are also known from

here.

• Dormant accounts Required for reporting

purpose. Charges in case

of account operated by

POA/mandate, are to be

taken manually, on half

yearly basis.

This report generated

data of bankers’ cheques

and demand draft, which

remain unpaid for a

period of 10 years. These

need to be transferred to

HO.

Foreign Bills outstanding

report.

In case of education

If this Flag is ‘N’, interest

Required for reporting

purpose

Required for reporting

purpose

Miscellaneous downloads

and reports

ACS

BCREPORT

FBBR

GILR

2. Menus under Finacle Login:

KYC

OBCRPT

DCLIABRG

ISRA

CERSAIRP

JOTRPT

TODRPT

ACDREV

Report for guarantees

issued and outstanding

NPA verification: A comparison should be done between

the list of NPAs generated from the separate software for

Advances- Ascrom, and the classification of those

accounts in Finacle, by using the function- ‘Y’ under ‘aci’

menu, in finacle or the report ASSCR. Sometimes, the

status in finacle is not changed as per the classification

under Ascrom.

• The latest upgradation in

Finacle is regarding the

KYC parameters that are

put in it recently. Reports

regarding the same need

to be generated by using

the Finacle Help-desk

• This report gives list of

outstat ion cheques

which are yet to be

closed. The branch

needs to follow up with

the respective branches

to do so.

• Register for guarantees

• This is an important

report for Inventory of

security items like DDs

and Cheque books. This

needs to be reconciled

with physical stock

employee-id –wise

• T h i s r e p o r t g i v e s

mortgage details of loan

entered in CERSAI. From

21.07.2008, all EM loans

are to be entered in this

module. Charges are

also to be taken for the

same.

• The option number 15

under this menu gives a

l i s t o f u n s c a n n e d

signatures in accounts

• This register shows the

adhoc limits sanctioned

a n d t e m p o r a r y

overdrafts given to

parties. In case of Adhoc,

the field for limit level

interest should be ‘Y’

• This report shows all

accounts in a particular

�


The pessimist sees danger in every opportunity; the optimist sees opportunity in every danger.

8

period, that are due for

review.

Fixed ROI is now scrapped. So for all retail loans, ‘interest

pegged’ should be ‘N’. This can be checked in ‘aci’

function- ‘0’ option.

Personal Loans are given for a maximum period of 36

months only from 01.04.2009

Hope these important menus and functions in Finacle

will make it easier to conduct a better verification under

concurrent audit.

�

�

Ten Power ToolsComplied by CA. Bimal R. Bhatt

Ten suggestions for processes and principles that will

increase a leader’s honour and power with others:

Persuasion, which includes sharing reasons and rationale

making a strong case for your position or desire while

maintaining genuine respect for followers’ ideas and

perspective, tell why as well as what; commit to stay in the

communication process until mutually beneficial and

satisfying outcomes are reached.

Patience, with the process and the person. In spite of the

failings, shortcomings and inconveniences created by

followers and your own impatience and anticipation for

achieving your goals, maintain a long-term perspective

and stay committed to your goals in the face of short-term

obstacles and resistance.

Gentleness, not harshness, hardness or forcefulness, when

dealing with vulnerabilities, disclosures and feelings

followers might express.

Teachableness, which means operating with the

assumption that you do not have all the answers, all the

insights and valuing the different viewpoints, judgments

and experiences followers, may have.

Acceptance, withholding judgment, giving the benefit of

the doubt, requiring no evidence or specific performance

as a condition for sustaining high self-worth, making them

your agenda.

Kindness, sensitive, caring, thoughtful, remembering the

little things (which are the big things) in relationships.

Openness, acquiring accurate information and

perspectives about followers as they can become while

being worthy of respect for what they are now, regardless

of what they own, control or do, giving full consideration

to their intentions, desires, values and goals rather than

focusing exclusively on their behavior.

Compassionate Confrontation, acknowledging error,

mistakes and the need for followers to make “course

corrections” in a context of genuine care, concern and

warmth, making it safe for followers to risk.

Consistency, so that your leadership style is not a

manipulative technique that you bring into play when you

do not get your way, are faced with crisis or challenge or

are feeling trapped; rather, this becomes a set of values, a

personal code, a manifestation of your character, a

reflection of who you are and who you are becoming.

Integrity, honestly matching words and feelings with

thoughts and actions, with no desire other than for good

of others, without malice or desire other than for good of

others, without malice or desire to deceive, take

advantage, manipulate or control; consistently reviewing

your intent as you strive for congruence.

(Source: “Principles Centered Leadership” by Stephen R. Covey)

Leaders : Enablers of Talentand PerformanceComplied by CA. Neena Patel

ZigZiglar said, “It is your attitude, not your aptitude, that

determines your ALTITUDE.”Today a leader can truly

empower and enable his employees and help his

organisation scale new heights. Listed below are

14attributes of a True Leader that can help every individual

climb new summits.

Successful leaders are expert decision makers. They

either facilitate the dialogue to empower their

colleagues to reach a strategic conclusion or they do

it themselves. To sustain progress they focus on

“making things happen” at all times. It is said,

“Successful leaders know how to make 30 decisions in

30 minutes.Without this ability, leaders are simply

workers in leadership positions.”

Many times leaders intimidate their colleagues with

their title and power when they walk into a room. Ken

Blanchard says, “In the past a leader was a boss.

Today’s leaders must be partners with their people

and not solely lead due to positional power.”

Successful leaders are experts at making others feel

safe to speak-up and confidently share their

perspectives. They use their executive presence to

create an approachable environmentand they follow

Thomas Fuller’s wisdom, “If you command wisely,

you'll be obeyed cheerfully.”

Successful leaders are great communicators of

“performance expectations.” They remind their

colleagues of the organization’s core values and

mission statement, ensuring that their vision is

properly translated and actionable objectives are

properly executed. Stephen Covey puts it,

1. Leaders Make Decisions

2. Leaders Make Others Feel Safe to Speak-Up

3. Leaders Communicate Expectations


Remember the difference between a boss and a leader. A boss says, Go! A leader says, Let's go!

9

“Management is efficiency in climbing the ladder of

success; leadership determines whether the ladder is

leaning against the right wall.”

4. Leaders Challenge People to Think

The most successful leaders understand their

colleagues’ mindsets, capabilities and areas for

improvement and they excel in keeping their people

on their toes, never allowing them to get comfortable

and enabling them with the tools to grow. A true

leader brings this reminder everyday, “If you are not

thinking, you’re not learning new things. If you’re not

learning, you’re not growing – and over time

becoming irrelevant in your work.”

Leaders lead by example and successful leaders blaze

the path for others to follow.Leaders practice what

they preach and are always mindful of their actions as

people buy into the leader before they buy into the

vision of an organization. Ralph Nader took it one

step forward and stated, “The function of leadership is

to produce more leaders, not more followers.”

Great leaders always have a strong “pulse” on

performance and those people who are the

performance champions. They are active in

acknowledging hard work and efforts and never take

consistent performers for granted. To elevate their

morale, they are mindful of rewarding them. Sam

Walton said, “Outstanding leaders go out of their way

to boost the self-esteem of their personnel. If people

believe in themselves, it's amazing what they can

accomplish.”

Successful leaders always provide feedback and they

welcome reciprocal feedback by creating trustworthy

relationships with their colleagues. They surely know

how to give negative feedback with the philosophy of

Mary Kay Ash, who said, “Sandwich every bit of

criticism between two thick layers of praise.”

“The man who occupies the first place seldom plays

the principal part”, said a Czech philosopher.

Successful leaders know how to delegate to their

talent pool. They are experts at activating the

capabilities of their colleagues and knowing when to

deploy their unique skill sets given the circumstances

at hand.

Successful leaders ask questions and seek counsel all

the time. Bernard Baruch pointed out, “Millions saw

the apple fall, but Newton was the one who asked

5. Leaders Lead by Example

6. Leaders Measure & Reward Performance

7. Leaders Provide Continuous Feedback

8. Leaders Properly Allocate and Deploy Talent

9. Leaders Ask Questions, Seek Counsel

why.” From the outside, they appear to know-it-all –

yet on the inside, they have a deep thirst for

knowledge and constantly are on the look-out to

learn new things without any hesitation. Leaders

know that Leadership and learning are indispensable

to each other.

Successful leaders tackle issues head-on and know

how to discover the heart of the matter at hand. They

don’t procrastinate and thus become incredibly

proficient at problem solving without waiting for

another day. ZigZiglar said, “If you wait until all the

lights are "green" before you leave home, you'll never

get started on your trip to the top.” Getting ahead in

life is about doing the things that most people don’t

like doing.

Successful leaders create a positive and inspiring

workplace culture. They know how to set the tone and

bring an attitude that motivates their colleagues to

take action. Bill Bradley says, “Leaders are likeable,

inspiring and strong willed and their Leadership

unlocks people's potential to become better.”They

don’t allow failures to disrupt momentumbecause

they believe thatWinners never quit and quitters

never win.

Successful leaders never stop teaching when

employees face hurdles. They take the time to mentor

their colleagues and share technical know-how to

enhance their skills. Paul Hawken said, “Good

Leadership is the art of making problems so

interesting and their solutions so constructive that

everyone wants to get to work and deal with them.”

Successful leaders don’t focus on protecting their

domain – instead they expand it by investing in

mutually beneficial relationships. Leaders share the

harvest of their success to help build momentum for

those around them. Henry Ford, a true leader, said,

“Coming together is a beginning; keeping together is

progress; working together is success.”

Successful leaders love being leaders – not for the

sake of power but for the meaningful and purposeful

impact they can create.Harold S. Geneen says,

“Leadership is practiced not so much in words as in

attitude and in actions.”

In the end, successful leaders are true enablers and for

them Leading is a habit. A leader is one who knows

the way, goes the way, and shows the way.

10. L e a d e r s S o l ve P r o b l e m s a n d Avo i d

Procrastination

11. Leaders have Positive Energy & Attitude

12. Leaders are Great Teachers

13. Leaders Invest in Relationships

14. Leaders Genuinely Enjoy Responsibilities


Success without honor is an unseasoned dish; it will satisfy your hunger, but it won't taste good.

10

DATES COMPLIANCE PERIOD

07.04.2013 Submission to the Commissioner of Income Tax of Forms - 15G / H (two copies),

received on 31/03/2013

10.04.2013 Excise Returns - ( Quarterly Return by SSI/ assessees availing SSI concession) Q4 (2012-13)

10.04. 13 VAT / CST E-Return - Monthly (For VAT or CST > Rs. 5,000/-) January 2013

15.04. 13 Payment of Professional Tax / PF March 2013

15.04. 13 Service Tax E-Return – REVISED FORMAT - Extended Date July’12 to Sept.’12

21.04. 13 ESIC Payment March 2013

22.04. 13 VAT / CST Payment / E-payment - Monthly & Quarterly /

ALL Lumpsum Cases Q4 (2012-13)

25.04. 13 PF Return (Monthly) March 2013

29.04. 13 VAT / CST E-Return - Monthly - (For VAT or CST <= Rs. 5,000/-) February' 13

29.04. 13 Submission of 15G / H (two copies with P. A. No. mentioned on it) for Non- Deduction

of TDS, to the payer of Interest etc. in case of Monthly Credit/Payment

30.04. 13 TDS Payment / E-payment (including the TDS for Provisions made on 31/03/2013) March 2013 &

Prov. on 31/03/2013

30.04. 13 PF Annual Return FY. 2012-13

30.04. 13 VAT – Quarterly Return for Regular / Lumpsum tax Payers (For Manual Return)

(with Oct.’12 to March’ 13 Stock Details)

FY. 2012-13

20

20

20

20

20 March 2013,

20

20

20 FY. 2013-14

20

20

20 Q4 (2012-13)

Due Date Planner Compiled by CA. Aparna Ashtaputre

Jasvant RavalMob.: 9925462282

email id : [email protected]

An authorised dealer of Sag Infotech

Our other products are :

Digital Signature of Class-II, Class-IIIb & DGFT

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Company E-filler

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Payroll

VAT, GEN-IT, CMA, E-TDS, SERVICE-TAX, AUDIT REPORT, XD eXCISE

SAI INFOTECHSAI INFOTECH

PAYMENT OPTIONS FOR PROGRAM REGISTRATION

Drop Box at 2-B, Ramkrishna Chambers,

BPC Road, Baroda. Kindly mention your

name, membership number and program

for which registration is sought, on back

side of the Cheque

e-payment

In an era of increasing usage of ‘plastic

money’ & Inernet - with an objective of

better services to members & students,

Baroda Branch is having facilities of

Registrations for seminar & conference by paying through credit/debit card at

ICAI Bhawanorvisitwww.baroda-icai.org foronlinepayment.Members are requested to register themselves in

advance by using above options and avoid spot

registration to help us to serve you better.

Join us on groupFacebook Baroda Branch of WIRC of ICAIExchange views and news. Be updated about forthcomingevents of Baroda Branch


f ethics are poor at the top, that behavior is copied down through the organization.

11

CONGRATULATIONSCA Sanjeev Shah

Heartfelt congratulations for

being nominated as a co-

opted member in the CPE

Committee of ICAI by the

President for the council year

2013-14.

CA Abhishek Nagori

Heartfelt congratulations for

b e i n g C h a i r m a n o f

International Tax Committee

of WIRC of ICAI & Convener

of CPE Committee of WIRC

of ICAI.

CA. Aniruddh Sonpal,Vadodara

CA. Saurabh Soparkar,Ahmedabad Participants

Budget Analyses on 02.03.2013 Study Circle Subsidies available to SMEs

CA. Hitesh Agrawal, Vadodara on 05.03.2013Facilitator for placement of newly qualifiedChartered Accountants

Facilitator for Placement

Womens' Day Celebration on 08.03.2013

CA. Neena Patel,Mumbai

Ms.Darshana Gandhi,Vadodara

Ms. Kausha Patel,Vadodara Faculties of Womens’ Days Celebration Women Participants

Mr. Dimple Mehta Speaker

Awareness Programme on TDS on 23.03.2013

Shri D.R.Sindhal, Chief Commissioner of Income Tax - TDS, Ahmedabad Cross section of Audience

CA. Dhananjay Gokhale,Mumbai

Bank branch audit Seminaron 23.03.2013

CA. Manish Baxi,Vadodara

CA. Rashmi Thakkar,Vadodara

CA. Sandeep Welling,Mumbai Felicitation of WIRC Executive Members

Felicitation of Chairman - WIRC Felicitation of Vice Chairman - WIRC Felicitation of Secretary - WIRC Felicitation of Treasurer - WIRC

Cross section of Audience of Brank Branch Audit on 23.03.2013 Tele Conference Bank Branch Audit on 22.03.2013 Celebration of Holi Milan on 27.03.2013

CA Piyush Indrajit Shah

Authored a book “Full Fledged

Money Changer (FFMC) : A

Practitioner’s Perspective”. It has

been published by ICAI, New Delhi.

This publication focus on the

procedural aspects of “Money

changing Business’.

DISCLAIMER :

[email protected]/[email protected]

The ICAI and the Baroda Branch of WIRC of ICAI is not in any way responsible for the result of any action taken on the basis of the advertisement published in the Newsletter.

The members, however, may bear in mind the provisions of the Code of Ethics while responding to the advertisements. The views and opinion expressed or implied in the Newsletter are

those of the authors / contributors and do not necessarily reflect those of Baroda Branch. Unsolicited matters are sent at the owner's risk and the publisher accepts no liability for loss or

damage. Material in this publication may not be reproduced, whether in part or in whole, without the consent of Baroda Branch. Members are requested to kindly send material of

professional interest to . The same may be published in the newsletter subject to availability of space & editorial editing.

If undelivered, please return to :

Baroda Branch of WIRC of

The Institute of Chartered Accountants of India

www.baroda-icai.org WIRC : www.wirc-icai.org ICAI: www.icai.orgl l

Back Cover (4 color) 15,000 Inside Front/ Cover (4 color)Back 10,000 Full Page (1 Color) 7,500 Half Page (1 Color) 5,000

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advertising agency has been appointed for this purpose.

This Newsletter is circulated without any charges to its members and other important categories of recipients as per ICAI Advisory on Newsletters. Subscription

rate is Rs. 20/- per issue for others.

CA. Ashish Parikh on behalf of Baroda Branch of WIRC of ICAI. “ICAI Bhawan”, Kalali-Tandalja Road, Atladra, Vadodara - 390 012

Multiprints, 30/B, Gandhi Oil Mill Compound, Near BIDC, Gorwa, Vadodara - 390016. Ph.: 0265-2285592Printed at

“ICAI Bhawan”, Kalali-Tandalja Road,Atladra, Vadodara - 390 012.Telefax : +91 265 2681115 / 2680593


Every right implies a responsibility, every opportunity an obligation, every possession a duty.

12

BARODA BRANCH AWARDS 2012 AT WIRC

We are glad to inform that our branch has received the following awards for the year 2012.Best Branch-ICAI Best WICASA-ICAI Best Branch-WIRC Special Award for Unique Program - WIRC Best WICASA-WIRC� � � � �

Congratulations to all members

Documents

The Institute of Chartered Accountants of India (Setup by ... · The Institute of Chartered Accountants of India (Setup by an Act of Parliament) VOLUME - III 2013l APRIL THE INSTITUTE