ICAI - Students' Journal - June 2016

The Institute of Chartered Accountants of India (Set up by an act of Parliament)Your monthly guide to CA news, information and events VOL 20 NO. 1 PAGES 36 JUNE 2016 50 INTERNATIONAL YOGA DAY: JUNE 21 GLIMPSES 02 June 2016 The Chartered Accountant Student CA. Dhiraj Kumar Khandelval, Vice Chairman, Board of Studies along with Central Council Members, CA. Atul Kumar Gupta, CA. Vijay Kumar Gupta, NIRC Chairman, CA. Deepak Garg, Karnal Branch Chairman, CA. Surender Pal Lathar and other dignitaries at the Branch Orientation Programme organized by NIRC of ICAI in Karnal. A group photo taken on the occasion of the Branch Orientation Programme organized by NIRC of ICAI in Karnal. Seen in the picture are CA. Dhiraj Kumar Khandelval, Vice Chairman, Board of Studies, Central Council Members, CA. Vijay Kumar Gupta, CA. Rajesh Sharma, NIRC Chairman, CA. Deepak Garg and other dignitaries. ANNOUNCEMENT United Nations General Assembly has declared 21st of June as International Yoga Day on December 11, 2014. Yoga in India is\ considered to be around 5,000 year old mental, physical and spiritual pr\ actice. Yoga originated in India in ancient time when people were used to meditation to transform their body and mind. Launching a particular da\ te of practicing yoga all across the world and celebrating as Yoga day was initiated by the Indian Prime Minister to the United Nations\ General Assembly. The Board of Studies of ICAI under the aegis of Ministry of Ayurveda, Yo\ ga & Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) to mark the momentum of celebrations of International Yoga Day\ is organizing a “Curtain Raiser” function at Mumbai on June 03, 2016 to spread awareness about the importance of Yoga among \ our members, students and their families. The Union Minister of State, Ministry of AYUSH Shri Shripad Yesso Naik h\ as in principle, accepted our invitation to be the Chief Guest of the function. INTERNATIONAL YOGA DAY: CURTAIN RAISER FUNCTION The Chartered Accountant Student June 2016 03 PRESIDENT’S COMMUNICATION My Dear Students, I hope you all are relieved from the relentless hard work for the examinations. Post examination phase is to be utilised to rejuvenate and gear-up for the future academic and professional responsibilities. Put in your best, perform honestly without any anxiety. Toil competently to precisely adapt subjects. “Inaction breeds doubt and fear. Action breeds confi dence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy” said Dale Carnegie. While awaiting results, use your time pragmatically. Th is is the ideal time for assessment and redefi ne your strategies. Time to introspect on what you have achieved as a student of Chartered Accountancy till date and how far you have advanced towards attaining the goals. Plan out for future. ECONOMIC DEVELOPMENTS Since my last communication with you, two important economic events have taken place. Th ese are Union Budget 2016 and Insolvency and Bankruptcy Code 2016. Recently enacted Union Budget is one of the biggest annual economic events and you should always make a practice to acquaint with such developments. Th ough may not be always relevant to your academics, the practice will indeed help you to become well-versed. Th e time-bound settlement for insolvency and reorganization cases is major concern for the lenders/investors and foreign institutional investors in India. Th e Insolvency and Bankruptcy Code, 2016 assist to resolve concerns in a time-bound manner. ATTAIN KNOWLEDGE AND SKILLS - KEY TO SUCCESS Th e chosen fi eld of Chartered Accountancy profession makes you attain an acumen on matters of up-to- date progressions in the core and allied matters of the profession. Th e importance of the informed knowledge of a professional is being increasingly recognized world over. Until and unless you accept and integrate the knowledge supplementing with up-to-date skills, you will be left behind. Unceasing book learning and creative thinking are the abilities help to thrust forward. Read as much as you can and cultivate the habit of reading. You should not restrict reading to the textbooks alone, in addition read the Journals of the Institute, other journals, business magazines and newspapers. Apart from learning theory, learn life skills as well. As stated in Gita - We are not cabin-dwellers, born to a life cramped and confi ned; we are meant to explore, to seek, to push the limits of our potential as human beings. Th e world of the senses is just a base camp: we are meant to be as much at home in consciousness as in the world of physical reality.” Acquiring right skills is what distinguishes a professional from other. Accounting professionals must have the ability to adapt to diverse circumstances that are frequently fl uctuating. Being a student of Chartered Accountancy course, you may have to confront numerous issues in your day-to-day professional life. You should possess a comprehensive knowledge to resolve the intricate matters. Resolute learnedness is key to success. Engage in diff erent abilities, both academic and other specialized courses to complement wide-ranging talent to derive the best out of you. Resourcefulness plays a very important role in all your endeavours to success. “A winner is someone who recognises their God given talents, works their tail off to develop them into skills and uses these skills to accomplish their goals. - Larry Bird ICAI has strongly supported the foundation of student’s professional growth. Students must avail all the ICAI facilities. ICAI’s solemn assurance is to support its students to build strong communication and presentation skills. Students’ must participate in conventions, conferences and other programmes, to gain knowledge of up-to-date changes. Apart from imparting quality education, such platforms give an opportunity to share your discoveries and the abilities gained with fellow learners, debate and exchange career prospects thus keeping informed yourself. Th e earnest advice is to put forth determined eff orts and leave no stone unturned for attaining distinct success. I conclude with the following excerpts: “What we think or what we know or what we believe is, in the end, of little consequence. Th e only consequence is what we do.” - John Ruskin; and “Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world”. - Albert Einstein. Yours sincerely, CA. M. DEVARAJA REDDYPRESIDENT, THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA One man may read the Bhagavata by the light of a lamp, and another may commit a forgery by that very light; but the lamp is unaff ected. Th e sun sheds its light on the wicked as well as on the virtuous.– Ramakrishna Paramahamsa 04 June 2016 The Chartered Accountant Student VICE PRESIDENT’S COMMUNICATION My Dear Students, M ay 2016 examinations are over and you would be having a sigh of relief. Schedule some time to relax so you can rest and refresh your mind and body. Th is will enable you to study more eff ectively. I am sure you would have all done well and your painstaking eff orts are bound to bear fruit sooner or later. Writing a professional examination is not an easy task. It requires a lot of hard work. Because the CA examination is one amongst the toughest professional examinations, it causes a great level of stress to perform well. It is an appropriate time for the CA students to analyse what diffi culties they have faced during the examination so that they can work on them and start taking suffi cient remedial measures to avoid it in future. In simple terms, Education means the process of gaining knowledge, inculcating forms of proper conduct and acquiring technical competency. It also aims at bringing progress in practical fi elds to enable each educated individual of society to earn a living. Education of the various fi elds produces productive human resources, who can contribute to the creation of wealth for the country. Th us, it lays the foundation for the accomplishment of an individual’s dreams and aspirations. Education and training builds a resourceful individual out of a raw human being. Education and training contributes to the cultivation of a prudent person and paves the way for a feeling of fulfi lment. Th e true purpose of education and training is to bring about profoundness to one’s emotions, to broaden one’s perspectives and to lead to a healthier approach of looking at life. In the context of the Chartered Accountancy course, the purpose of education and training is to help students mould themselves as competent professional accountants capable of making a positive contribution over their lifetime, to the profession and society. Broadly speaking, education and experience (practical training) of professional accountants must provide a foundation of knowledge, skills and professional values that enables them to continue to learn and adapt to change throughout their professional lives. A sustained and intensive programme of professional education and training provides chartered accountant students an opportunity to acquire entry level professional competence. It is necessary to assess periodically the extent and level of professional competence acquired by the chartered accountant students. You can never cross the ocean until you have the courage to lose sight of the shore. ----Christopher Columbus Th e Institute has always been a front runner in evolving and initiating steps for the overall grooming and development of its students. I urge all the students to utilize all the opportunities and amenities that are being extended by the Institute for the enhancement and enrichment of their skills. I have always believed that the participation in Conventions, Conclaves and Conferences enriches students in a way that no books can. Th e Board of Studies is organizing National Conventions in Jaipur on 14th and 15th June 2016 and in Guwahati & Ludhiana on 25th and 26th June 2016. I urge all of you to attend the Conventions and reap the benefi ts. Th e CA course is in distance learning mode. Hence, to narrow down the geographical distance, Students will have rare opportunity of interacting with a galaxy of professionals in the conventions. Apart from giving you the academic inputs, such programmes also provide you the opportunity to share your experiences, knowledge and insights with others and thereby updating yourself. You can also present papers and participate in the debates. Th is will help you to learn, get contemporary knowledge, develop rhetoric skills and remove your stage fright. Wish you all the best Yours sincerely, Just as the fi re is the direct cause for cooking, so without Knowledge no emancipation can be had. Compared with all other forms of discipline Knowledge of the Self is the one direct means for liberation.– Adi Shankara, CA. NILESH SHIVJI VIKAMSEYVICE PRESIDENT ICAI, NEW DELHI CHAIRMAN’S COMMUNICATION The Chartered Accountant Student June 2016 05 My Dear Students, O ur best wishes to all who have appeared for the May 2016 examinations. I am sure that most of you would have fared well and would come out successful. If for any reason, your performance has not been satisfactory or you have any doubt about a positive outcome, it is advisable not to waste time and wait for the results. Better keep in touch with the subjects and continue your preparation by more serious study. Th e time is precious and the pressure would be immense but with consistent hard work you can achieve your targets. As Swami Vivekananda said “Great work requires great and persistent eff ort for a long time. Character has to be established through a thousand stumbles”. Remember, to achieve success in life, you should have a very positive and realistic outlook and willingness to sincere hard work. UNLEASH THE POWER OF KNOWLEDGE Knowledge is power. Knowledge also promotes self- confi dence. Knowledge can be gained through extensive reading not only your subject but about other topics of contemporary relevance. Every aspiring CA student must develop a habit of reading books, magazines and newspapers. You should also keep in touch with the contemporary developments in the subjects. You should regularly read, in addition to this journal and Members’ Journal, at least one fi nancial newspaper and journal of other professional bodies. Th is will not only update you with the latest happenings but also broaden your horizon and increase your awareness. PRACTICE MAKES YOU PERFECT It is a fact that many of the students, knowingly or otherwise, ignore the importance of practical training. It is in fact, a very important part of the CA curriculum and is a blend of theoretical education and practical training. No other professional course in the country gives you hands on training for full three years. Articleship surely gives you the chance of looking at all the areas of practical world from a very close quarter. Th e 36 months that you spend with an audit fi rm as an articled trainee lay the foundation of a successful career ahead. During this period you learn to apply theoretical knowledge to practical situations. It gives you an interface with the industry and gives you an opportunity to develop into well rounded professional. Being exposed to a variety of areas – accounts, taxation, auditing, fi nance etc., you get a broader perspective of the real business world. Moreover, such experience certainly comes handy while answering questions in the CA examinations. Another important CHAIRMAN’S COMMUNICATION advantage of practical training is that it helps you inculcate professional values, ethics and attitudes.Training in ethics and values cannot be taught merely through theoretical instructions but has to be inculcated and imbibed through practical training. NEW CURRICULUM Students are the edifi ce of our profession. Reorienting the students in line with the market demands and challenges is the onerous duty of our Institute. Sensitizing this, we have taken a number of steps in this direction through strengthening our training schemes, leveraging technology as a channel for not only registering but also for virtual learning and evaluation process. Th e Board of Studies of the Institute is working tirelessly to give fi nal shape to the new curriculum under the Revised Scheme of Education and Training, which has already been approved in –principle by the Central Government. Th e revised scheme has already been notifi ed for public comments. Th e stake holders and the students can send in their suggestions and comments on the new scheme to cret@icai.in. Dear Students, you need not worry about the implementation of the new curriculum, there will reasonable transition period and the old and new syllabus will concurrently continue. INTERNATIONAL YOGA DAY “For breath is life, and if you breathe well, you will live long on earth”- Sanskrit Proverb Yoga is native to India and has a very rich and long history. If you just think that Yoga is all about bending, twisting, breathing and performing moves in odd shapes, then it’s time for you to rethink. Yoga is much more comprehensive and extensive, which can only be understood when it is being learnt and practiced in the right way. Th e benefi ts of yoga are yet to be measured completely, but it is a proven technique that gives you strength, mental health, agility, fl exibility and overall well-being. As a humble step to spread the amazing benefi ts of yoga among the CA fraternity, the Institute, in collaboration with the Ministry of AYUSH, Government of India is organizing a “Curtain Raiser” function at Mumbai on June 03, 2016. I would like to exhort all of you to participate in the function and make the event a grand success. Before winding up this message, I extend my best wishes to the students appearing for the CPT examinations in June. You should also attend the Mock Tests being conducted by the respective regional/branch offi ces. Th e popularity and the demand of the Chartered Accountancy Course as well as of the Accountancy Profession have witnessed a paradigm shift. As the opportunity for the students has now become multi-dimensional, the responsibility also has become multi- level and diversifi ed. I am sure that our students will be able to face these challenges and achieve the objectives in their future endeavours. Yours sincerely, Th e great secret of true success, of true happiness, is this: the man or woman who asks for no return, the perfectly unselfi sh person, is the most successful.– Swami Vivekananda CA. BABU ABRAHAM KALLIVAYALIL CHAIRMAN, BOARD OF STUDIES, NEW DELHI CONTENTS 06 June 2016 The Chartered Accountant Student EDITORIAL BOARD Glimpes International Yoga Day President’s Communication Vice-President’s Communication Chairman’s Communication Article : Goods and Services Tax: Moving Towards an Effi cient Indirect Tax Regime Examination : November 2016 Final Examination: Some Essentials for Preparation Academic Update - Final : Accounting02 02 03 04 05 07 16 2023 27 28 29 30 31 35 36 INSIDE DISCLAIMER: The ICAI is not in any way responsible for the result of any action taken on the basis of the advertisement published in the Journal. Cover Image Courtesy: www.shutterstock.comInside image: www.shutterstock.com EDITOR: CA. Babu Abraham Kallivayalil Printed and published by CA. Vandana D. Nagpal, on behalf of The Institute of Chartered Accountants of India, New Delhi. PUBLISHED at the Institute’s Offi ce at Indraprastha Marg, New Delhi and printed at Spenta Multimedia Pvt. Ltd., Plot 15,16 & 21/1, Village Chikhloli, Morivali, MIDC, Ambernath (West), Dist. Thane The views and opinions expressed or implied in THE CHARTERED ACCOUNTANT STUDENT are those of the authors and do not necessarily refl ect those of ICAI. Unsolicited articles and transparencies 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 ICAI. Check your Address: All students should check their mailing address printed on back cover. In case, there is any change or the PIN Code (Postal Index Code) is either missing or is incorrect, kindly inform immediately the concerned Regional Offi ce, giving full particulars of your address alongwith correct PIN Code. This would enable us to ensure regular and prompt delivery of the Journal. ANNUAL SUBSCRIPTION RATES CA Students Members and Others Overseas `200 `500 US $ 100 Total Circulation: 4,74,919 Correspondence with regard to subscription, advertising and writing articles Email: writesj@icai.in Non-receipt of Students’ Journal Email: nosj@icai.in SWACHH BHARAT - A STEP TOWARDS CLEANLINESS President and Editor-in-Chief CA. M. Devaraja Reddy, Hyderabad Vice President CA. Nilesh Shivji Vikamsey, Mumbai Chairman and Editor CA. Babu Abraham Kallivayalil, Kochi Vice-Chairman CA. Dhiraj Kumar Khandelwal, Mumbai Members CA. Atul Kumar Gupta, New Delhi CA. Debashis Mitra, Kolkata CA. Dhinal Shah, Ahmedabad CA. G Sekar, Chennai CA. Jay Chhaira, Surat CA. K Sripriya, Chennai CA. Madhukar Narayan Hiregange, Bangalore CA. M.P. Vijay Kumar, Chennai CA. Mangesh Pandurang Kinare, Mumbai CA. Mukesh Singh Kushwah, Ghaziabad CA. Nandkishore Chidamber Hegde, Mumbai CA. Prafulla Premsukh Chhajed, Mumbai CA. Prakash Sharma, Jaipur CA. Rajesh Sharma, New Delhi CA. Ranjeet K. Agarwal, Kolkata CA. Sanjiv Kumar Chaudhary, New Delhi CA. Shiwaji Bhikaji Zaware, Pune CA. Sushil Kumar Goyal, Kolkata CA. Tarun Jamnadas Ghia, Mumbai CA. Vijay Kumar Gupta, Faridabad Shri Manoj Kumar, New Delhi Shri Chandra Wadhwa, New Delhi Co-opted Members Shri Jobanputra Jayesh CA. Sushil K. Bhageria CA. Deepak R Shah CA. B. Narender Rao CA. Vinod Jain CA. Ittyrah M P CA. Ashwani Kumar Jindal Director- Board of Studies CA. Vandana D. Nagpal Editorial Support K. Sudhakaran, Assistant Director Dr. Ruchi Gupta, Assistant Secretary HEAD OFFICE The Institute of Chartered Accountants of India, ICAI Bhawan, Indraprastha Marg, New Delhi-110 104. Academic Update - Final : Income Tax National Convention for CA Students - Jaipur National Convention for CA Students - Guwahati National Convention for CA Students - Baroda National Convention for CA Students - Kolkata Announcements Announcement, Crossword Solution Crossword ARTICLE The Chartered Accountant Student June 2016 07 Goods and Services Tax: Moving Towards an Effi cient Indirect Tax Regime CA. Smita Mishra As a student of Chartered Accountancy course, you are expected to keep a\ breast of the latest developments in your subject areas. With Goods and Services Tax being the most ambitious\ and path breaking indirect tax reform the country has ever seen, it becomes imperative for you to keep yoursel\ f updated with the ABCs of this new tax in country’s tax landscape. In the ensuing paragraphs, an attempt has\ been made to explain the broad contours of this new tax. Please make a note that the write-up merely seeks to im\ prove your knowledge base and is not relevant from examination perspective. 1. Introduction 1.1 It has now been more than a decade since the idea of national Goods and Services Tax (GST) was mooted by Kelkar Task Force in 2004. Th e Task Force strongly recommended fully integrated ‘GST’ on national basis. Subsequently, the then Union Finance Minister, Shri P. Chidambaram, while presenting the Central Budget (2007-2008), announced that GST would be introduced from April 1, 2010. Since then, GST has missed several deadlines and continues to be shrouded by the clouds of uncertainty. However, in the year 2014, the Government again showed its commitment towards GST by tabling the 122nd Constitutional Amendment Bill on GST in the Parliament on December, 19. Th ough the latest deadline i.e., April 1, 2016, set by the Government for the introduction of GST has again been missed, GST does not seem to be a far-fetched proposition considering the relentless background work being done by the Government for an early implementation of GST. 1.2 France was the fi rst country to implement GST in the year 1954. Within 62 years of its advent, about 160 countries across the world have adopted GST because this tax has the capacity to raise revenue in the most transparent and neutral manner. Most of the countries follow unifi ed GST i.e., a single tax Th e supplier at each stage is permitted to avail credit of GST paid on the purchase of goods and/or services and can set off this credit against the GST payable on the supply of goods and/or services to be made by him. Th us, only the fi nal consumer bears the GST charged by the last supplier in the supply chain, with set-off benefi ts at all the previous stages. applicable throughout the country. However, in federal polities like Brazil and Canada, a dual GST system is prevalent. Under dual system, GST is levied by both the federal and the state governments. India, too, intends to adopt a dual GST. Happiness is your nature. It is not wrong to desire it. What is wrong is seeking it outside when it is inside.– Ramana Maharshi ARTICLE 08 June 2016 The Chartered Accountant Student 2. Concept of GST 2.1 Before we proceed with the fi ner nuances of proposed Indian GST, let us fi rst understand the basic concept of GST. GST is a value added tax levied on manufacture, sale and consumption of goods and services. GST off ers comprehensive and continuous chain of tax credits from the producer’s point/service provider’s point upto the retailer’s level/consumer’s level thereby taxing only the value added at each stage of supply chain. Th e supplier at each stage is permitted to avail credit of GST paid on the purchase of goods and/or services and can set off this credit against the GST payable on the supply of goods and/or services to be made by him. Th us, only the fi nal consumer bears the GST charged by the last supplier in the supply chain, with set- off benefi ts at all the previous stages. Since, only the value added at each stage is taxed under GST, there is no tax on tax or cascading of taxes under GST system. Further, GST does not diff erentiate between goods and services and thus, the two are taxed at a single rate. 3. Need for GST in India 3.1 Understanding the existing indirect tax system in India is a pre-requisite to fi nd the answer to the question as to why India needs GST. Charges levied by the Government on consumption, expenditure, privilege, or right but not on income or property basically constitute indirect taxes. Also called consumption taxes, they are regressive measures because they are not based on the principle of ability to pay. Indirect Tax System in India 3.2 India has a three-tier federal structure, comprising the Union Government, the State Governments and the Urban/Rural Local Bodies. Th e power to levy taxes and duties is distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. Principal indirect taxes levied in India are listed below: Tax Relevant StatuteParticulars Customs Duty Customs Act, 1962 Customs Tariff Act, 1975 A duty imposed by the Central Government on goods imported into India. In case of exports, only very few products are liable to customs duty. Basic General Rate: 10% + Additional duty of customs (CVD) equivalent to the excise duty levied on like goods produced in India @ 12.5% + Special additional duty of customs @ 4%. Education Cess @ 2% and Secondary and Higher Education Cess @ 1% are also leviable on customs duty. Central Value Added Tax (CENVAT)-commonly known as excise duty Central Excise Act, 1944 Central Excise Tariff Act, 1985 A tax on the manufacture or production of goods in India imposed by the Central Government. Basic General rate: 12.5% Service Tax Finance Act, 1994 A tax imposed by the Central Government on the services (except the services covered in the negative list of services) Basic General Rate: 14% Swachh Bharat Cess @ 0.5% is also leviable on the value of taxable service. Further, w.e.f. June 1, 2016, Krishi Kalyan Cess @ 0.5% will also be leviable on the value of taxable service. Central Sales Tax Central Sales Tax Act, 1956 A tax on the inter-State sales of goods imposed by the Central Government but appropriated by the originating State. Rate: 2% (on submission of Form C by buyer) State-Level Value Added Tax VAT Acts of respective State Governments A tax on the Intra-State sales/purchases of goods, imposed by the State Governments. Rate generally at 5% and 12.5% /13.5% Entry Tax State specifi c legislations A tax levied by the State Governments on entry of goods into the State for sale, consumption or use. Rate varies from State to State. Local levies such as octroi or local area taxes Specifi c provisions by State Governments Th ese are levied by municipal or local authorities. Rate varies from authority to authority ARTICLE The Chartered Accountant Student June 2016 09 3.3 Besides these, there are other indirect taxes levied by State Governments like luxury tax, entertainment tax etc. Multiplicity of taxes and high rates of taxation have made the indirect tax structure quite complex in India; adversely aff ecting competitiveness of trade, industry and growth of economy. 3.4 Under the existing indirect tax structure, the various indirect taxes being levied are not necessarily mutually exclusive. To illustrate, when the goods are manufactured and sold both central excise duty (CENVAT) and State-Level VAT are levied. Th ough CENVAT and State-Level VAT are essentially value added taxes, set off of one against the credit of another is not possible as CENVAT is a central levy and State-Level VAT is a State levy. Moreover, CENVAT is applicable only at manufacturing level and not at distribution levels. Th e existing sales tax regime in India is a combination of origin based (Central Sales Tax) and destination based multipoint system of taxation (State-Level VAT). 3.5 Services were taxed for the fi rst time by the Central Government in the year 1994 by introducing the levy of service tax. Service tax is currently leviable on all the services except the services that are covered in the Negative List. Initially, however, the same was charged on select services. Service tax is also a value added tax and the credit across the service tax and the central excise duty is integrated at the central level. 3.6 Defi ciencies in the existing value added taxation: Despite the introduction of the principle of taxation of value added in India - at the Central level in the form of CENVAT and at the State level in the form of State VAT - its application has remained piecemeal and fragmented on account of the following reasons: (a) Double taxation of a transaction as both goods and services as the distinction between goods and services is often blurred, e.g. software is liable to both VAT and service tax. (b) In the existing scheme of CENVAT, the value-added chain in the distribution trade below the manufacturing level does not get captured. (c) Non-inclusion of several State and local levies in State VAT such as luxury tax, entertainment tax, etc. (d) Cascading eff ect of taxes on account of continued imposition of non-VATABLE central sales tax and inclusion of CENVAT in the value of goods taxed under State VAT. (e) Non-integration of VAT on goods with tax on services, at the State level. With service sector being the fastest growing sector in the economy, the exclusion of services from the tax base of the States potentially erodes their tax- buoyancy. 3.7 GST – A cure for ills of existing indirect tax regime: A comprehensive tax structure covering goods and services like Goods and Service Tax (GST) would address these problems. Simultaneous introduction of GST at both Centre and State levels would integrate taxes on goods and services for the purpose of set-off relief and will ensure that both the cascading eff ects of CENVAT and service tax are removed and a continuous chain of set-off from the original producer’s point/service provider’s point upto the retailer’s level/consumer’s level is established. For such a GST, the Constitution of India needs to be amended to empower the States to levy tax on services as at present the power to levy service tax is vested only with the Centre. Similarly, Centre would be empowered to levy tax on intra-State sale of goods which at present is the exclusive power of States. Also, with the introduction of GST, burden of Central Sales Tax (CST) will be removed. 4. GST in India: Journey so far 4.1 Th e Empowered Committee of State Finance Ministers (‘Empowered Committee’) has been working with the Central Government to prepare a roadmap for introduction of GST in India. Dr. Amit Mitra, the Finance Minister of West Bengal, is the current Chairman of the Empowered Committee. After considering the comments of the Government and having detailed deliberations, the Empowered Committee released the First Discussion Paper on GST in November, 2009. Th ereafter, the Task Force appointed by the Th irteenth Finance Commission, Government of India, issued a report on December 15, 2009 giving its recommendations on various issues relating to the design and implementation of the proposed GST in India. Department of Revenue also gave its comments on the First Discussion Paper in January, 2010. The centre would be empowered to levy tax on intra- State sale of goods which at present is the exclusive power of States. Also, with the introduction of GST, burden of Central Sales Tax (CST) will be removed. Why GST?Levy of Central Sales Tax Multiple State Levies Double Taxation as both goods and services Non-integration of VAT and Service taxNo CENVAT after manufacturing stage Cascading of taxes ARTICLE 10 June 2016 The Chartered Accountant Student 4.2 Th e signifi cant documents issued by various authorities with respect to GST are enlisted below: (i) “A Model Roadmap for Goods and Services tax in In di a” by Empowered Committee of State Finance Ministers in April, 2008 (ii) “GST Reforms and Inter-Governmental Considerations in India” by Department of Economic Aff airs, Ministry of Finance, Government of India in March, 2009 (iii) “First Discussion Paper on Good s and Services Tax In In di a” by Empowered Committee of State Finance Ministers in November, 2009 (iv) “Report of Task Force – 13th Finance Commission” by Task force set up by 13th Finance Commission in December, 2009 (v) “Comments of Department of Revenue on First Discussion Paper” by Department of Revenue in January, 2010 (vi) “115th Constitution Amendment (GST) Bill, 2011” by Central Government in March, 2011 (vii) “Report on the 115th Constitution Amendment (GST) Bill, 2011” by Parliamentary Standing Committee on Finance in August, 2013 (viii) “122nd Constitution Amendment (GST) Bill, 2014” by Central Government in December, 2014 (as the earlier bill lapsed) (ix) “Report on the 122nd Constitution Amendment (GST) Bill, 2014” by Select Committee of Rajya Sabha in July, 2015 (x) “Report on the Revenue Neutral Rate and Structure of Rates for the Goods and Services Tax” by Committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on Possible Tax Rates under GST in December, 2015 (xi) Reports of the Joint Committee on Business Process for GST on GST Payment Process, GST Registration, GST Refund and GST Return by Empowered Committee of State Finance Ministers in the year 2015 5. Proposed GST model of India – Dual GST 5.1 India intends to adopt a dual GST which will be imposed concurrently by the Centre and the States. Th e dual model was propounded in the First Discussion Paper released by the Empowered Committee with an objective to do away with the problem of tax cascading and move to a common tax base as also to subsume various Central and State levies on goods and services into Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST). Th e Dual Model GST discussed in the subsequent paragraphs is essentially the one as conceptualized in the First Discussion Paper. 5.2 Concurrent levy of tax by Centre and States: Th is dual levy is a clear departure from the existing scheme of indirect taxation where there is no overlapping of power between the Union and the State Governments with regard to levy of taxes. While Centre taxes manufacture of goods, provision of services, inter- State sales and importation and exportation of goods, States are empowered to levy taxes on intra-State sale. However, under the dual model GST, Centre and States will simultaneously tax goods and services. Centre will get the power to tax intra-State sales & States will be empowered to tax services. 5.3 Central GST (CGST) and State GST (SGST): GST will be a destination based tax applicable on all transactions involving supply of goods and services for a consideration. GST will have a dual rate structure comprising of CGST, which will be levied and collected by Central Government, and SGST, which will be levied and collected by State Governments. All local or intra-State supplies of taxable goods and services will be liable to both CGST and SGST except when the same get excluded on account of turnover thresholds or exemptions. Credit of CGST and SGST will be available throughout the supply chain but cross utilization of credit of CGST and SGST will not be possible. Since GST will be a destination based tax, revenue of SGST will ordinarily accrue to the consuming States. 5.4 For example, if goods are manufactured by A and sold to B which are then again sold to C, D and E before they are fi nally consumed by F (assuming all supplies to be made within the same State) – CGST and SGST will be levied simultaneously by Centre and State on all the transactions i.e., on supply of goods to B, C, D, E, and F. CGST and SGST paid at an earlier stage will be available as credit to be set off against the CGST and SGST payable at the next stage respectively throughout this supply chain. Th us, the tax will fi nally be borne by the consumer. 5.5 Integrated GST (IGST): An Integrated Goods and Service Tax (IGST) model will be used to tax inter-State supply of goods and services. Under this model, IGST - which would be approximately a sum total of CGST and SGST - will be levied by Centre on all inter-State supplies of taxable goods and services. Th e inter-State supplier in the exporting State will be allowed to set off the available credit of IGST, CGST and SGST (in that order) against the GST will have a dual rate structure comprising of CGST, which will be levied and collected by Central Government, and SGST, which will be levied and collected by State Governments. ARTICLE The Chartered Accountant Student June 2016 11 IGST payable on inter-State supply made by him. Th e buyer in the importing State will be allowed to avail the credit of IGST paid on inter-State purchase made by him. Th us, unlike the existing scenario where the credit chain breaks in case of inter-State sales on account of non-VATable CST, under GST regime there will be a seamless credit fl ow in case of inter- State supplies too. 5.6 Since GST will be a destination based tax, the revenue of inter-State sale will not accrue to the exporting State and the exporting State will be required to transfer to the Centre the credit of SGST used in payment of IGST. Th e Centre will transfer to the importing State the credit of IGST used in payment of SGST. Th ere will be a Central Agency to act as a clearing house and verify the claims and inform the respective Governments to transfer the funds. Successful execution of IGST model would require robust and effi cient IT infrastructure. Illustration–Intra-State Supply In case of local supply of goods/ services, the supplier would charge dual GST i.e., CGST and SGST at specifi ed rates on the supply. I. Supply of goods/services by A to B Amount (in ` ) Value charged for supply of goods/ services 10,000 Add: CGST @ 8% 800 Add: SGST @ 8% 800 Total price charged by A from B for local supply of goods/ services 11,600 Th e CGST & SGST charged on B for supply of goods/ services will be remitted by A to the appropriate account of the Central and State Government respectively. A is the fi rst stage supplier of goods/services and hence, does not have credit of CGST, SGST or IGST. II. Supply of goods/services by B to C – Value addition @ 20% B will avail credit of CGST and SGST paid by him on the purchase of goods/ services and will utilise such credit for being set off against the CGST and SGST payable on the supply of goods/services made by him to C. Amount (in ` ) Value charged for supply of goods/ services (` 10,000 x 120%) 12,000 Add: CGST @ 8% 960 Add: SGST @ 8% 960 Total price charged by B from C for local supply of goods/ services 13,920Computation of CGST, SGST payable by B to Government Amount (in ` ) CGST payable 960 Less: Credit of CGST 800 CGST payable to Central Government 160 SGST payable 960 Less: Credit of SGST 800 SGST payable to State Government 160 Note: For the sake of simplicity, rates of CGST and SGST have been assumed to be 8% each. Statement of revenue earned by Central and State Governments Transaction Revenue to Central Government (`) Revenue to State Government (` ) Supply of goods/ services by A to B 800 800 Supply of goods/ services by B to C 160 160 Total 960 960 Illustration – Inter-State Supply In case of inter-State supply of goods/ services, the supplier would charge IGST at specifi ed rates on the supply. I. Supply of goods/services by X of State 1 to A of State 1 Amount (in ` ) Value charged for supply of goods/ services10,000 Add: CGST @ 8% 800 Add: SGST @ 8% 800 Total price charged by X from A for intra-State supply of goods/services 11,600 X is the fi rst stage supplier of goods/services and hence, does not have any credit of CGST, SGST or IGST. II. Supply of goods/services by A of State 1 to B of State 2 – Value addition @ 20% Amount (in ` ) Value charged for supply of goods/ services (` 10,000 x 120%) 12,000 Add: IGST @ 16% 1,920 Total price charged by A from B for inter-State supply of goods/services 13,920 Computation of IGST payable to Government Amount (in ` ) IGST payable 1,920 Less: Credit of CGST 800 Less: Credit of SGST 800 IGST payable to Central Government 320 ARTICLE 12 June 2016 The Chartered Accountant Student Th e IGST charged on B of State 2 for supply of goods/ services will be remitted by A of State 1 to the appropriate account of the Central Government. State 1 (Exporting State) will transfer SGST credit of ` 800 utilised in the payment of IGST to the Central Government. III. Supply of goods/services by B of State 2 to C of State 2 – Value addition @ 20% B will avail credit of IGST paid by him on the purchase of goods/services and will utilise such credit for being set off against the CGST and SGST payable on the local supply of goods/services made by him to C. Amount (in ` ) Value charged for supply of goods/ services (` 12,000 x 120%) 14,400 Add: CGST @ 8% 1,152 Add: SGST @ 8% 1,152 Total price charged by B from C for local supply of goods/ services 16,704 6. Benefi ts of GST 6.1 GST is expected to give a major relief to industry, trade, agriculture and consumers through a comprehensive and wider coverage of input tax set-off (both on goods and services), subsuming of multiple taxes and phasing out of CST. Th e signifi cant benefi ts of GST are discussed hereunder: Mitigation of cascading taxation: Since under the GST regime, credit will be available across the 5.8 As regards the legislative framework, there would be a single legislation for levying Central GST but each State and Union territory will enact its own State GST legislation. Th ough there would be multiple SGST legislations, the basic features of law, such as chargeability, defi nition of taxable event and taxable person, classifi cation and valuation of goods and services, procedure for collection and levy of tax and the like would be uniform in all the SGST legislations, as far as feasible. Th is would be necessary to preserve the essence of dual GST. Computation of CGST, SGST payable to Government Amount (in` ) CGST payable 1,152 Less: Credit of IGST 1,152 CGST payable to Central Government Nil SGST payable 1,152 Less: Credit of IGST (` 1,600 - ` 1,152) 768 SGST payable to State Government 384 Central Government will transfer IGST credit of ` 768 utilised in the payment of SGST to State 2 (Importing State). Note: For the sake of simplicity, rates of CGST, SGST and IGST have been assumed to be 8%, 8% and 16% respectively. Statement of revenue earned by Central and State Governments Transaction Revenue to Central Government (`) Revenue to Government of State 1 (` ) Revenue to Government of State 2 (` ) Supply of goods/services by X to A 800 800 Supply of goods/services by A to B 320 Transfer by State 1 to Centre 800 (800) Supply of goods/services by B to C 384 Transfer by Centre to State 2 (768) 768 Total 1,152Nil 1,152 5.7 Taxes to be subsumed in GST: Th e following indirect taxes will be subsumed in GST: Central Levies State/Local Body Levies Central Excise Duty Value Added Tax/ Sales tax Additional Excise Duties Entertainment Tax (other than the tax levied by local bodies) Service Tax Luxury Tax Excise Duty under Medicinal & Toiletries Preparation Act Tax on lottery, betting and gambling Additional Duty of Customs commonly known as Countervailing Duties (on imports in lieu of excise duty) Octroi Special Additional Duty of Customs (levied on imports in lieu of value added tax or central sales tax) Entry Tax Central Sales Tax Purchase Tax Surcharges and Cesses State surcharges and cesses in so far as they relate to supply of goods and services ARTICLE The Chartered Accountant Student June 2016 13 entire supply chain there will be no cascading of taxes and the issues under the existing system like tax payable on tax (e.g. VAT is payable on excise duty) will be suitably addressed. Th us, in due course of time, GST will lower the prices of goods and benefi t the common man. Elimination of multiple taxes and double taxation: GST will subsume majority of existing indirect tax levies both at Central and State level into one tax i.e., GST which will be leviable uniformly on goods and services. Th is will make doing business easier and will also tackle the highly disputed issues relating to double taxation of a transaction as both goods and services. Creation of unifi ed national market: Th e existing indirect tax structure has disintegrated the Indian market into 29 state markets by creating tax barriers. Such artifi cial fences in the economy hamper effi cient production and supply chain models and curb trade. GST will create unifi ed national market which would facilitate free movement of goods and services across the country. Th is will help in removing economic distortions, promote exports and give a boost to India’s tax-to-gross domestic product (GDP) ratio. According to a Study conducted by the National Council of Applied Economic Research [December 2009] for 13th Finance Commission to assess the impact of GST on India’s Growth and International trade, GST is expected to increase the country’s GDP somewhere within a range of 0.9%-1.7%. Increase in voluntary compliance and tax revenues: As GST will do away with multiplicity of taxes, it will ensure a simpler tax regime with fewer taxes, rates and exemptions. A simplifi ed tax regime coupled with simple, articulate and largely online procedures will lead to improved tax compliances with lesser scope for mistakes. Increased compliances together with a wider tax base will eventually boost the tax revenues. 7. Challenges in implementation of GST 7.1 Integrating all taxes levied on goods and services in a federal country with clear cut distribution of legislative powers, like India, is undoubtedly, a mammoth task. Introduction of GST requires extensive amendments in the Constitution of India and consensus between Central and States Governments on variety of issues like rates, basic threshold, exemptions, administration etc. 7.2 Th e signifi cant challenges in implementation of a harmonized and integrated GST are as follows: (i) Amendment of Constitution: At present, the States do not have the powers to levy tax on supply of services and the Centre does not have the power to levy tax on the intra-State sale of goods. Th e UPA Government introduced the Constitution (115th) Amendment Bill, 2011 for GST on 22.03.2011, but it could not be passed and ultimately lapsed with the dissolution of the 15th Lok Sabha. Th ereafter, the NDA Government presented Constitution (122nd) Amendment Bill, 2014 for GST in Lok Sabha on 19th December, 2014. Th e Lok Sabha has passed the bill in May, 2015. [Th e salient features of the Bill are discussed in para 8 below] . Th e Constitution will be amended when this Bill gets passed by 2/3rd majority in Rajya Sabha too and thereafter gets ratifi ed by at least 50% of the State Legislatures and fi nally gets the assent of the President of India. Once the Constitution is amended, Central GST law will be introduced and passed in Parliament and State GST Laws will be passed in respective States; and then the GST will be implemented in India. (ii) Basic design issues: Th ough the broad design of the GST is fi rmed up, specifi c issues like threshold limits for goods and services, exemptions, defi nition of supply, determining the place of supply of goods and services, transition provisions for existing exemptions etc. need to be carefully identifi ed, analysed and appropriately addressed. (iii) IT Infrastructure: Th e process of tracking inter- State transactions will be extremely complex and will require an infallible IT system. Th e clearing- house mechanism envisaged in the dual model GST will handle humungous data. Designing and developing an IT infrastructure of such a size and complexity will be a herculean task. For this purpose, a Special Purpose Vehicle (SPV) called Benefits of GST Fewer taxes Fewer tax rates and exemptio ns Broaden- ing of Tax base Mitigation of cascading of taxes Improved compliance & revenue collections Efficient use of resources Creation of a common national market Estimated to increase GDP by 0.9% - 1.7% ARTICLE 14 June 2016 The Chartered Accountant Student the Goods and Service Tax Network (GSTN) has been set up by the Government to create enabling environment for smooth introduction of GST. (iv) Tax administration: Th e Central Board of Excise and Customs (CBEC) and the State tax administrations will be responsible for implementing CGST and SGST respectively. For implementing dual GST, a robust and integrated tax administration will be required to effi ciently track fl ow of goods and services across the country as also precisely account for the associated taxes. Any sort of risk management system will give meaningful results only when there will be an effi cient tax administration. An ineffi cient tax administration will not be able to provide the necessary level of deterrence which may ultimately lead to non-compliance and under performance of the tax regime. It may be noted that the Joint Committee on Business Process for GST released four reports on GST Payment Process, GST Registration, GST Refund and GST Return for public comments last year. (v) Revenue Neutral Rate (RNR): At present States are charging VAT @ 0%, 1%, 5%, 12.5%/13.5% and 20% besides other levies. Similarly, Centre is charging central excise duty @ 12.5%, CST @ 2%, service tax @ 14%. RNR rates are a point of debate and will be one of the fi nal issues for consensus between the Empowered Committee and the Centre. Revenue neutral rate (RNR) basically means the rate which preserves revenue at desired (current) levels. World over, the average GST/VAT rate is around 16.4%. Th e average rate in Asia-Pacifi c is 9.88% and Canada and Nigeria have the lowest rate of 5%. Recently, a panel under Chief Economic Adviser, Arvind Subramanian, constituted by the Government to decide on goods and services tax (GST) rates, has recommended a revenue- neutral rate of 15-15.5%, with a standard rate of 17-18% which will be levied on most goods and all services. 8. Constitution (122nd) Amendment Bill, 2014 8.1 Th e Finance Minister Mr. Arun Jaitley presented the 122nd Constitution Amendment Bill, 2014 (‘Bill’) on the introduction of GST before the Lok Sabha on December 19, 2014. Th e Lok Sabha passed the Bill in May, 2015 and referred the same to a Select Committee of Rajya Sabha for examination. 8.2 In line with the proposed dual model of GST, the Bill proposes amendments like giving concurrent powers to both Union and States to legislate on GST, subsuming of various Central and State levies (enlisted in para 5.6) in GST, empowering Centre to levy and collect CGST and States to levy and collect SGST on supplies within a State, empowering Centre to levy and collect IGST on inter-State supply of goods and services. Th e other signifi cant proposals of the Bill are: GST Council: A joint forum of the Centre and States namely, Goods & Services Tax Council is proposed to be created by inserting a new Article 279A in the Constitution. Th e Union Finance Minister will be the Chairman of this Council and Ministers in charge of Finance/Taxation or Minister nominated by each of the States & UTs with Legislatures will be its members. Th e function of the Council will be to make recommendations to the Union and the States on important issues like tax rates, exemptions, threshold limits, dispute resolution etc. Integrated GST (IGST): Centre would levy and collect IGST on inter-State supplies of goods and services and there will be uninterrupted fl ow of credit across the States. Th e tax collected would be apportioned between the Centre and the States in a manner to be provided by Parliament, by law, on the recommendations of the GST Council. Import of goods and services will also be liable to IGST. Th is seems to be in lieu of additional duties of customs (CVD and Special CVD) which is proposed to be subsumed in GST; though CVD and Special CVD is levied only on importation of goods and not on services. Compensation to States: States will be compensated by the Centre for revenue loss on account of implementation of GST. Such compensation will be given for a period upto fi ve years on a tapering basis, i.e., 100% for fi rst three years, 75% in the fourth year and 50% in the fi fth year. Coverage of goods and services in GST: All goods and services will be brought under ARTICLE The Chartered Accountant Student June 2016 15 the purview of GST with an exception of alcoholic liquor for human consumption. However, GST will be payable on petroleum and petroleum products only from a future date to be notifi ed on the recommendation of the GST Council. Till the time such date is notifi ed, existing taxes being levied by the States and the Centre on petroleum and petroleum products i.e., sales Tax/VAT, CST and excise duty will continue to be levied on them. Electricity and real estate have been kept out of GST. Th us, electricity duty, stamp duty and other property taxes will continue in GST regime too. Tobacco products will be liable to both GST and excise duty. Th us, even after the implementation of GST, existing taxes like excise duty, VAT and CST will continue to be in operation though with limited scope and applicability. Rates of GST: Th ere will be uniform GST rates across the Country. However, Centre and States will be given a fl exibility to fi x CGST and SGST rates within a narrow tax band over and above the fl oor rates of CGST and SGST. Th is has been done to give some fi scal autonomy to Centre and States. 1% additional levy: Since GST is a destination based tax, the revenue thereof will accrue to the consuming State which is in stark contrast to the present position where manufacturing States are entitled to the revenue of origin based CST. Keeping in view the concerns of revenue loss of manufacturing States, an origin based additional levy of 1% chargeable on inter-State supply of goods has been proposed in the Bill. Being an origin based tax, the revenue thereof will be assigned to the States from where such supplies originate i.e., the manufacturing State. Th is levy would be non- VATable and would apply only on goods and not on services. Th e Bill proposes that such levy would be in force for a period not exceeding 2 years, or such further period as recommended by the GST Council. Such an origin based tax is against the fundamental principle of GST which is a destination based tax. Further, since this levy is non-VATable, it will lead to tax cascading. Defi nition of service: Th e term “services” is proposed to be exhaustively defi ned as “anything other than goods”. Th e concept of ‘declared goods of special importance’ is proposed to be removed from the Constitution. 8.3 Recommendations of Select Committee on the Constitution 122nd Amendment Bill, 2014: Th e Report of the Select Committee on the Constitution 122nd Amendment Bill, 2014 was presented to Rajya Sabha on July 22, 2015. One of the key recommendations of the Select Committee is to exempt stock transfers from the additional 1% levy. Th e Committee recommended that the 1% levy be restricted to only supplies made for a consideration. Th e Committee also recommended that the term “band” be defi ned in the GST laws as range of GST rates over the fl oor rate within which CGST or SGST may be levied on any specifi ed goods or services or any specifi ed class of goods or services by the Central or a particular State Government. Further, the Committee recommended full compensation to States (not tapered one as proposed in the Bill) for fi ve years. 9. Conclusion Albert Einstein said that “Th e hardest thing in the world to understand is the income tax.” In India, this stands equally true for indirect taxes as well. Th e proposed dual-structure GST, however, seeks to simplify the complex indirect taxation system in India and create a common national market by bringing down fi scal barriers between the States. Its potential introduction though is an incredible challenge considering the issues involving fi scal autonomy of the Center and of the States. Nevertheless, the Government should leave no stone unturned and be committed to usher in this tax, as soon as possible, not only to give a fi llip to the slowing domestic economy but also to keep pace with the changing global indirect tax scenario. Th is write-up has been prepared by compiling and integrating information from various sources, the main sources being: Th e Empowered Committee of State Finance Ministers, New Delhi, November 10, 2009, “First Discussion Paper on Goods and Services Tax in India” 13th Finance Commission, 15th December, 2009, “Report of the Task Force on Goods and Services Tax” Press Release of Central Government on 122nd Constitution Amendment Bill, 2014 Report of the Select Committee of Rajya Sabha on 122nd Constitution Amendment Bill, 2014 Committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on Possible Tax Rates under GST, December, 2015, “Report on the Revenue Neutral Rate and Structure of Rates for the Goods and Services Tax” Th e Institute of Chartered Accountants of India, “GST – A Boon for Indian Economy” The contributor is Deputy Secretary, ICAI EXAMINATION 16 June 2016 The Chartered Accountant Student Paper 7: Direct Tax Laws & Paper 8: Indirect Tax Laws In order to ensure clarity as regards the applicability of provisions of Direct Tax Laws (DTL) and Indirect Tax Laws (IDTL) for November, 2016 examination, as well as the BOS publications relevant for the said examination, the details regarding the same are briefed hereunder: I. Applicability of Finance Act, Assessment Year, Notifi cations/Circulars etc. for November, 2016 Final Examination Publication Edition Objective & Content (1) Study Material on DTL (Modules 1, 2 & 3) (A.Y.2016-17) [As amended by the Finance Act, 2015] (Th oroughly revised and updated) November, 2015 Th is edition of the Study Material is based on the provisions of direct tax laws as amended by the Finance Act, 2015 and applicable for A.Y.2016-17. Study each topic of your syllabus thoroughly for conceptual clarity. Th e aim of the Study Material is to build a strong conceptual base by explaining the complex tax laws in a lucid manner. Do keep the Bare Act i.e., Income-tax Act, 1961, by your side for reference purposes. Th is will facilitate understanding of the language of law and the logical sequence of the sections. You should make it a habit to read the tax provisions along with the relevant sections so that you are able to relate the provisions of law, circulars and notifi cations with the respective sections. Practice Manual on DTL (Th oroughly revised and updated) (Questions adapted/modifi ed and solved on the basis of provisions of law applicable for A.Y.2016-17) December, 2015 Each question contained in this edition of the Practice Manual has been answered/solved on the basis of the provisions of tax laws applicable for A.Y.2016-17. Th e amendments made by the Finance Act, 2015 have been taken into account. Th e Practice Manual has also been grouped chapter-wise and contains a variety of questions and problems in each topic for better understanding and application of the concepts explained in the Study Material. In the Practice Manual, questions set at the past Final examinations of chartered accountancy course have been modifi ed/adapted and answered on the basis of the provisions of law applicable for A.Y.2016-17. After reading each chapter in the Study Material, try to work out the questions in the corresponding chapter of the Practice Manual on your own, and thereafter compare your answers with the answers given therein. Th is would help you to identify your mistakes and also learn from your mistakes. Further, this process would help in revision of the concepts and principles contained in each chapter of the Study Material and application of the same while solving practical questions. Note – After you complete study of the entire syllabus content, solve all the questions in the Practice Manual once again to make sure that there are no grey areas. (2) Study Material on IDTL (Modules 1, 2 & 3) (As amended by the Finance Act, 2015) (Th oroughly revised and updated) November, 2015 Th is edition of the Study Material is based on the provisions of indirect tax laws, as amended by the Finance Act, 2015. Th e objective of the Study Material on IDTL and manner of studying are the same as described for the Study Material on DTL. Practice Manual on IDTL (Th oroughly revised and updated questions adapted/modifi ed and solved on the basis of provisions of Indirect Tax laws as amended by the Finance Act, 2015) December, 2015 Th e questions contained in this edition of the Practice Manual have been adapted/modifi ed and solved on the basis of the provisions of law as amended by the Finance Act, 2015. Th e objective of the Practice Manual on IDTL and the manner of solving the questions are the same as given for the Practice Manual on DTL. (1) Th e amendments made by the Finance Act, 2015 in DTL & IDTL; (2) Th e provisions of direct tax laws as applicable for the assessment year 2016-17; (3) Th e signifi cant notifi cations and circulars issued upto 30th April, 2016 (DTL & IDTL). II. BOS Publications relevant for November, 2016 Final Examination November 2016 Final Examination: Some Essentials for Preparation Be as simple as you can be; you will be astonished to see how uncomplicated and happy your life can become.– Paramahansa Yogananda EXAMINATION The Chartered Accountant Student June 2016 17 PublicationEdition Objective & Content (3) Supplementary Study Paper - 2015 (DTL & IDTL) [A discussion of amendments made by the Finance Act, 2015 in DTL & IDTL] July, 2015 Th is publication explains the amendments made by the Finance Act, 2015 in DTL & IDTL as well as the signifi cant circulars and notifi cations issued between 1.5.2014 and 30.4.2015. It is especially relevant in case you have the earlier edition of the DTL & IDTL Study Materials (i.e., the November 2014 edition), which are based on the provisions of law as amended by the Finance (No.2) Act, 2014. However, even if you have the latest edition, i.e., the November, 2015 edition of the DTL & IDTL Study Materials, you are still advised to read the Supplementary Study Paper-2015 for a better understanding of the statutory amendments. (4) Select Cases in Direct & Indirect Tax Laws – An Essential reading for the Final Course August, 2015 Th is publication is a compilation of signifi cant recent judicial decisions of Supreme Court and High Courts which, when read in conjunction with the DTL & IDTL Study Materials, will enable you to appreciate the signifi cant issues involved in interpretation and application of tax laws. (5) Revision Test Paper (RTP) for November, 2016 Examination [Revision material for self-assessment and updation] In Supplementary Study Paper – 2015, the amendments made by the Finance Act, 2015 and signifi cant notifi cations and circulars issued upto 30.4.2015 have been discussed. However for November, 2016 examination, the circulars and notifi cations issued upto 30.4.2016 are relevant. Th e Annexure to the RTP for November, 2016 examination would, therefore, contain the signifi cant amendments by way of notifi cations and circulars issued after the date up to which they are covered in the Supplementary Study Paper-2015 i.e., the signifi cant amendments by way of notifi cations and circulars issued between 1st May, 2015 and 30th April, 2016. Th e Annexure would also contain recent signifi cant legal decisions in direct and indirect tax laws which are relevant for November, 2016 examination. Th ese legal decisions are in addition to the case laws reported in the August, 2015 edition of the publication “Select Cases in Direct and Indirect Tax Laws”. Th e RTP also helps you self-assess your preparation by solving the questions contained therein independently and comparing the same with the answers given. Note: All the above publications, except Revision Test Paper for November, 2016 examination, are hosted at the BOS Knowledge Portal on the Institute’s website www.icai.org. III. Ideal Study Pattern STEP I - STUDY EACH TOPIC OF YOUR SYLLABUS THOROUGHLY STEP II - KEEP YOURSELF UPDATED ON THE STATUTORY FRONT DTL & IDTL Study Materials, as amended by the Finance Act, 2015 [November, 2015 edition] Supplementary Study Paper – 2015 Read Study Materials thoroughly for conceptual clarity. Do keep the Bare Acts and Relevant Rules by your side for reference purposes. Understand the rationale and impact of amendments by the Finance Act, 2015 and recent signifi cant Notifi cations and Circulars. STEP III - KEEP YOURSELF UPDATED ON THE JUDICIAL FRONT Select Cases in Direct and Indirect Case Laws – 2015: An Essential Reading for the Final Course [August, 2015 Edition] Appreciate the signifi cant issues involved in interpretation and application of tax laws. STEP IV - APPLY THE CONCEPTS LEARNT DTL & IDTL Practice Manuals [December, 2015 edition] Work out questions on your own and thereafter, compare your answers with the given answers to acquire the ability to apply the concepts and principles learnt through the Study Materials. STEP V - UPDATE & REVISE Revision Test Paper (RTP) for November, 2016 examination Update yourself with the latest developments on the legislative and judicial front and self-assess your preparation. STEP VI - TEST YOUR LEVEL OF PREPARATION Mock Test Papers Solve Mock Test Papers within the time frame of three hours and self- assess your level of preparedness for the examination. EXAMINATION 18 June 2016 The Chartered Accountant Student Paper 4 –Taxation: Some Essentials for Preparation November, 2016 Intermediate (IPC) Examination In order to ensure clarity as regards the applicability of provisions of income-tax and indirect taxes for November, 2016 Intermediate (IPC) Examination, as well as the BOS publications relevant for the said examination, the details regarding the same are briefed hereunder: I. Applicability of Finance Act, Assessment Year etc. for November, 2016 Examination Publication Edition Objective & Content (1) Study Material (and Practice Manual) on Paper 4 : Taxation Study Material (Part I: Income-tax) (Modules 1, 2 & 3) (A.Y.2016-17) [Income-tax law as amended by the Finance Act, 2015] (Th oroughly revised and updated) September, 2015 Th e Study Material is based on the provisions of the Income-tax Act, 1961, as amended by the Finance Act, 2015 and applicable for A.Y.2016-17. It is divided into three modules. Study each topic of your syllabus thoroughly for conceptual clarity. Th e aim of the Study Material is to build a strong conceptual base by explaining the complex tax laws in a lucid manner. Practice Manual (Part I: Income-tax) (Th oroughly revised and updated) (Questions adapted/ modifi ed and solved on the basis of the provisions of law applicable for A.Y.2016-17) October, 2015 Each question/problem on income-tax contained in this edition of the Practice Manual has been adapted/modifi ed and solved on the basis of the provisions of law applicable for A.Y.2016-17. Th e amendments made by the Finance Act, 2015 have been taken into account. Th e Practice Manual has also been grouped chapter-wise and contains a variety of questions and problems in each topic for the better understanding and application of the concepts explained in the Study Material. In the Practice Manual, questions set at the past PE- II, PCC, and IPCC level examinations of chartered accountancy course have been modifi ed/adapted and answered on the basis of the provisions of law applicable for A.Y.2016-17. After reading each chapter in the Study Material, try to work out the problems in the corresponding chapter of the Practice Manual on your own, and thereafter compare your answers with the answers given therein. Th is would help you to identify your mistakes and also learn from your mistakes. Further, this process would help in revision of the concepts and principles contained in each chapter of the Study Material and application of the same in problem solving. Note – After you complete study of the entire syllabus content, solve all the questions in the Practice Manual once again to make sure that there are no grey areas. Study Material (Part II: Indirect Taxes) (As amended by the Finance Act, 2015) (Th oroughly revised and updated) September, 2015 Th e Study Material of Part II: Indirect Taxes is based on the indirect tax laws as amended by the Finance Act, 2015. Th e objective of the Study Material on Part II: Indirect Taxes is the same as described for the Study Material on Part I: Income-tax. Practice Manual (Part II: Indirect Taxes) (Th oroughly revised and updated) (Questions adapted/modifi ed and solved/answered on the basis of the provisions of Indirect tax laws as amended by the Finance Act, 2015) September, 2015 All questions/problems of the Practice Manual on Indirect Taxes have been answered/solved on the basis of the provisions of law as amended by the Finance Act, 2015. Th e objective of the Practice Manual on Part II: Indirect Taxes and the manner of solving the questions is the same as given for the Practice Manual on Part I: Income-tax. (2) Supplementary Study Paper - 2015 (Taxation) [A discussion of amendments made by the Finance Act, 2015 in income-tax and indirect taxes] July, 2015 Th is publication explains the amendments made in income-tax and indirect taxes by the Finance Act, 2015 as well as by way of signifi cant circulars and notifi cations issued between 1.5.2014 and 30.4.2015. It is especially relevant in case you have the earlier edition of the Taxation Study Material (i.e., the October 2014 edition), which is based on the provisions of law as amended by the Finance (No.2) Act, 2014. However, even if you have the latest edition (i.e., September, to read the Supplementary Study Paper - 2015 for a better understanding of the statutory amendments. (1) Th e amendments made by the Finance Act, 2015 in income-tax and indirect taxes; (2) Th e provisions of income-tax law as applicable for the assessment year 2016-17; (3) Th e signifi cant notifi cations and circulars issued upto 30th April, 2016 (income-tax and indirect taxes). II. BOS Publications relevant for November, 2016 Examination EXAMINATION The Chartered Accountant Student June 2016 19 PublicationEdition Objective & Content (3) Revision Test Paper (RTP) for November, 2016 Examination [Revision material for self-assessment and updation] In Supplementary Study Paper – 2015, the amendments made by the Finance Act, 2015 and signifi cant notifi cations and circulars issued upto 30.4.2015 have been discussed. However for November, 2016 examination, the circulars and notifi cations issued upto 30.04.2016 are relevant. Th e RTP for November, 2016 examination, therefore, contains the signifi cant notifi cations and circulars in income-tax and indirect taxes issued after the date up to which they are covered in the Supplementary Study Paper-2015 i.e., the signifi cant amendments made by way of notifi cations and circulars issued between 1st May, 2015 and 30th April, 2016. Th e RTP would also help you self-assess your preparation by solving the questions contained therein independently and comparing the same with the answers given. Note: All the publications mentioned above, except Revision Test Paper for November, 2016 examination, are hosted at the BOS Knowledge Portal on the Institute’s website www.icai.org. Steps in Preparation Objective of study Relevant Publication Step I Study each topic of your syllabus thoroughly for conceptual clarity Study Material, as amended by the Finance Act, 2015 [September, 2015 edition] Step II Understand the rationale and impact of amendments made by the Finance Act, 2015 and signifi cant amendments made by way of notifi cations and circulars issued between 1.5.2014 and 30.4.2015 Supplementary Study Paper – 2015 Step III Work out the problems and solve the questions after completing study of each chapter in the Study Material to test your level of understanding of concepts explained in the said chapter. Note – After you complete study of the entire syllabus content, solve all the problems in the Practice Manual once again to make sure there are no grey areas. Practice Manual [October, 2015 edition – Part I: Income-tax & September, 2015 edition – Part II: Indirect Taxes] Step IV Update yourself with the latest developments on the legislative front and self-assess your preparation. Revision Test Paper (RTP) for November, 2016 examination Step V Test your level of preparation by solving the Mock Test Papers hosted on the Institute’s website. Mock Tests are also held at the various regional offi ces and branches of the Institute. Mock Test Papers III. Ideal Study Pattern ANNOUNCEMENT Election to the Managing Committee of NICASA The Annual General Meeting (AGM) of Members of the Northern India Chartered Accountants Students’ Association (NICASA) will be held on Saturday, the 23rd July, 2016 at 10.00 A.M. in the auditorium of the Institute of Chartered Accountants of India, ICAI Bhawan, 52-53-54, Institutional Area, Vishwas Nagar, Shahdara, Near Karkardooma Courts, Delhi – 110 032. Elections to the Managing Committee of the Association for the year 2016-17 would be held from 11.00 am to 4 PM on the same day. For details, students may visit : www.nirc-icai.org ACADEMIC UPDATE - FINAL 20 June 2016 The Chartered Accountant Student 1. Companies (Indian Accounting Standards) (Amendment) Rules, 2016 – 30 March 2016 MCA has issued Companies (Indian Accounting Standards) (Amendment) Rules, 2016 to amend Companies (Indian Accounting Standards) Rules, 2015. Th e amended Rules, inter alia, provide the following: • Roadmap for implementation of Ind AS by Non- Banking Financial Companies; As per the notifi cation, (a) Th e following NBFCs shall comply with the Indian Accounting Standards (Ind AS) for accounting periods beginning on or after the 1st April, 2018, with comparatives for the periods ending on 31st March, 2018, or thereafter— (A) NBFCs having net worth of rupees fi ve hundred crore or more; (B) holding, subsidiary, joint venture or associate companies of companies covered under item (A), (b) Th e following NBFCs shall comply with the Indian Accounting Standards (Ind AS) for accounting periods beginning on or after the 1st April, 2019, with comparatives for the periods ending on 31st March, 2019, or thereafter— (A) NBFCs whose equity or debt securities are listed or in the process of listing on any stock exchange in India or outside India and having net worth less than rupees fi ve hundred crore; (B) NBFCs, that are unlisted companies, having net worth of rupees two-hundred Accounting Name of the standard Para no. As per the Companies (Accounting Standards) Rules, 2006 As per the Companies (Accounting Standards) Amendment Rules, 2016Implication AS 2 4 (an extract) Inventories do not in clude machinery spares which can be used only in connection with an item of fi xed asset and whose use is expected to be irregular; such machinery spares are accounted for in accordance with Accounting Standard (AS) 10, Accounting for Fixed Assets. Inventories do not include spare parts, servicing equipment and standby equipment which meet the defi nition of property, plant and equipment as per AS 10, Property, Plant and Equipment. Such items are accounted for in accordance with Accounting Standard (AS) 10, Property, Plant and Equipment. Now, inventories also do not include servicing equipment and standby equipment other than spare parts if they meet the defi nition of property, plant and equipment as per AS 10, Property, Plant and Equipment. 27 Common classifi cations of inventories are raw materials and components, work in progress, fi nished goods, stores and spares, and loose tools. Common classifi cations of inventories are: (a) Raw materials and components (b) Work-in-progress (c) Finished goods (d) Stock-in-trade (in respect of goods acquired for trading) (e) Stores and spares (f ) Loose tools (g) Others (specify nature)”. Para 27 of AS 2 requires disclosure of inventories under diff erent classifi cations. One residual category has been added to the said paragraph i.e. ‘Others’. and fi fty crore or more but less than rupees fi ve hundred crore; and (C) holding, subsidiary, joint venture or associate companies of companies covered under item (A) or item (B) of sub-clause (b), • Omission of Ind AS 115, ‘Revenue from Contracts with Customers’, and insertion of Ind AS 11, ‘Construction contracts’ and Ind AS 18, ‘Revenue’; • Consequential amendments to other Ind AS. Th ese rules have come into force on the date of their publication in the Offi cial Gazette (ie. 30 March 2016). (Link: http://mca.gov.in/Ministry/pdf/ Notifi cation_30032016_I.pdf) 2. Companies (Accounting Standards) Amendment Rules, 2016 – 30 March 20 16 MCA has issued Companies (Accounting Standards) Amendment Rules, 2016 to amend Companies (Accounting Standards) Rules, 2006 by incorporating the references of the Companies Act, 2013, wherever applicable. Also, the Accounting Standard (AS) 2, AS 4, AS 10, AS 13, AS 14, AS 21 and AS 29 as specifi ed in these Rules will substitute the corresponding Accounting Standards with the same number as specifi ed in Companies (Accounting Standards) Rules, 2006. Following table summarises the changes made by the Companies (Accounting Standards) Amendment Rules, 2016 vis a vis the Companies (Accounting Standards) Rules, 2006 in the following accounting standards: ...But if a mirror ever makes you sad, you should know that it does not know you.– Kabir ACADEMIC UPDATE - FINAL The Chartered Accountant Student June 2016 21 Name of the standardPara no. As per the Companies (Accounting Standards) Rules, 2006 As per the Companies (Accounting Standards) Amendment Rules, 2016Implication AS 4 Footnote to AS 4 Pursuant to AS 29, Provisions, Contingent Liabilities and Contingent Assets, becoming mandatory in respect of accounting periods commencing on or after 1-4-2004, all paragraphs of this Standard that deal with contingencies (viz. paragraphs 1(a), 2, 3.1, 4 (4.1 to 4.4), 5 (5.1 to 5.6), 6, 7 (7.1 to 7.3), 9.1 (relevant portion), 9.2, 10, 11, 12 and 16) stand withdrawn except to the extent they deal with impairment of assets not covered by other Indian Accounting Standards. For example, impairment of receivables (commonly referred to as the provision for bad and doubtful debts), would continue to be covered by AS 4. All paragraphs of this Standard that deal with contingencies are applicable only to the extent not covered by other Accounting Standards prescribed by the Central Government. For example, the impairment of fi nancial assets such as impairment of receivables (commonly known as provision for bad and doubtful debts) is governed by this Standard. Footnote has been modifi ed. 8.5 Th ere are events which, although they take place after the balance sheet date, are sometimes refl ected in the fi nancial statements because of statutory requirements or because of their special nature. Such items include the amount of dividend proposed or declared by the enterprise after the balance sheet date in respect of the period covered by the fi nancial statements. Th ere are events which, although they take place after the balance sheet date, are sometimes refl ected in the fi nancial statements because of statutory requirements or because of their special nature. For example, if dividends are declared after the balance sheet date but before the fi nancial statements are approved for issue, the dividends are not recognised as a liability at the balance sheet date because no obligation exists at that time unless a statute requires otherwise. Such dividends are disclosed in the notes. No liability for proposed dividends has to be created now. Such proposed dividends are to be disclosed in the notes. AS 10 All Fixed Assets Property, Plant and Equipment Entire standard has been revised with the title AS 10: ‘Property, Plant and Equipment’ by replacing the existing AS 6 and AS 10 AS 13 20 Th e cost of any shares in a co-operative society or a company, the holding of which is directly related to the right to hold the investment property, is added to the carrying amount of the investment property. An investment property is accounted for in accordance with cost model as prescribed in Accounting Standard (AS) 10, Property, Plant and Equipment. Th e cost of any shares in a co-operative society or a company, the holding of which is directly related to the right to hold the investment property, is added to the carrying amount of the investment property.Accounting of investment property was not stated in this para but now incorporated i.e. at cost model. 30 An enterprise holding investment properties should account for them as long term investments. An enterprise holding investment properties should account for them in accordance with cost model as prescribed in AS 10, Property, Plant and Equipment.Accounting of investment property shall now be in accordance with AS 10 i.e. at cost model AS 14 3(a) Amalgamation means an amalgamation pursuant to the provisions of the Companies Act, 1956 or any other statute which may be applicable to companies. Amalgamation means an amalgamation pursuant to the provisions of the Companies Act, 2013 or any other statute which may be applicable to companies and includes ‘merger’.Defi nition of Amalgamation has been made broader by specifi cally including ‘merger’. 18 and 39 In such cases the statutory reserves are recorded in the fi nancial statements of the transferee company by a corresponding debit to a suitable account head (e.g., ‘Amalgamation Adjustment Account’) which is disclosed as a part of ‘miscellaneous expenditure’ or other similar category in the balance sheet. When the identity of the statutory reserves is no longer required to be maintained, both the reserves and the aforesaid account are reversed. In such cases the statutory reserves are recorded in the fi nancial statements of the transferee company by a corresponding debit to a suitable account head (e.g., ‘Amalgamation Adjustment Reserve’) which is presented as a separate line item. When the identity of the statutory reserves is no longer required to be maintained, both the reserves and the aforesaid account are reversed. Corresponding debit on account of statutory reserve in case of amalgamation in the nature of purchase is termed as ‘Amalgamation Adjustment Reserve’ and is now to be presented as a separate line item since there is not sub-heading like ‘miscellaneous expenditure’ in Schedule III to the Companies Act, 2013 ACADEMIC UPDATE - FINAL 22 June 2016 The Chartered Accountant Student Name of the standardPara no. As per the Companies (Accounting Standards) Rules, 2006 As per the Companies (Accounting Standards) Amendment Rules, 2016Implication AS 21 9 A parent which presents consolidated fi nancial statements should consolidate all subsidiaries, domestic as well as foreign, other than those referred to in paragraph 11. A parent which presents consolidated fi nancial statements should consolidate all subsidiaries, domestic as well as foreign, other than those referred to in paragraph 11. Where an enterprise does not have a subsidiary but has an associate and/ or a joint venture such an enterprise should also prepare consolidated fi nancial statements in accordance with Accounting Standard (AS) 23, Accounting for Associates in Consolidated Financial Statements, and Accounting Standard (AS) 27, Financial Reporting of Interests in Joint Ventures respectively. Amendment has been made in line with the provisions of the Companies Act, 2013. Illustration (vi)A statement showing the computation of net profi ts in accordance with section 349 of the Companies Act, 1956, with relevant details of the calculation of the commissions payable by way of percentage of such profi ts to the directors (including managing directors) or manager (if any). A statement showing the computation of net profi ts in accordance with section 198 of the Companies Act, 2013, with relevant details of the calculation of the commissions payable by way of percentage of such profi ts to the directors (including managing directors) or manager (if any). Reference to the Companies Act, 2013 has been inserted by removing the reference of the Companies Act, 1956. AS 29 35 (An extract) Th e amount of a provision should not be discounted to its present value. Th e amount of a provision should not be discounted to its present value except in case of decommissioning, restoration and similar liabilities that are recognised as cost of Property, Plant and Equipment. Th e discount rate (or rates) should be a pre-tax rate (or rates) that refl ect(s) current market assessments of the time value of money and the risks specifi c to the liability. Th e discount rate(s) should not refl ect risks for which future cash fl ow estimates have been adjusted. Periodic unwinding of discount should be recognised in the statement of profi t and loss. Now discounting of provision for decommissioning, restoration and similar liabilities has to be done as per the pre-tax discount rate as mentioned therein. 73 Transitional Provisions All the existing provisions for decommissioning, restoration and similar liabilities (see paragraph 35) should be discounted prospectively, with the corresponding eff ect to the related item of property, plant and equipment. Discounting of above existing provisions and similar liabilities should be prospectively, with the corresponding eff ect to the related item of property, plant and equipment. Th ese rules have come into force on the date of their publication in the Offi cial Gazette (ie. 30 March 2016). (Link: http://mca.gov.in/Ministry/pdf/ Notifi cation_30032016.pdf ) 3. Companies (Removal of Diffi culties) Second Order, 2016 – 29 March 2016 MCA has issued Companies (Removal of Diffi culties) Second Order, 2016. It provides that till the constitution of NFRA, the Central Government may prescribe standards of accounting (under Section 133 of the 2013 Act) as recommended by the ICAI in consultation with and after examination of the recommendations made by NACAS. Th e Order will be deemed to have come into force from 01 April 2015. (Link: http://mca.gov.in/Ministry/pdf/ CoOrder_30032016_II.pdf ) ACADEMIC UPDATE - FINAL The Chartered Accountant Student June 2016 23 CBDT’s Clarifi catory Circulars on issues arising out of the provisions of the Income-tax Act, 1967: A signifi cant initiative to minimise litigation One of the key focus areas of the Income Tax Department is to reduce litigation with the taxpayers. Th e Central Board of Direct Taxes (CBDT) has taken several initiatives in the last six months to signifi cantly reduce disputes and provide relief to taxpayers facing long standing litigation. A signifi cant initiative taken by the CBDT in this direction is issuance of Circulars clarifying the department’s view on issues forming the subject matter of litigation. Th e revision of monetary limits for fi ling of appeals by the Department with the objective of reducing litigation is an example of an important initiative taken by the CBDT to minimise litigation. Besides this, the CBDT has issued a number of Circulars clarifying the position of law relating to the subjects detailed hereunder: Income - Tax S. No. Circular No. Date Subject matter/Issue addressed Clarifi cation by CBDT (1) 18/2015 2.11.2015 Whether in the case of banks, expenses relatable to investment in non-SLR securities need to be disallowed under section 57(i), by considering interest on non-SLR securities as “Income from other sources." In CIT v. Nawanshahar Central Cooperative Bank Ltd. [2007] 160 Taxman 48, the Supreme Court held that investments made by a banking concern are part of the business of banking. Th erefore, the income arising from such investments is attributable to the business of banking falling under the head "Profi ts and Gains of Business and Profession Even though the abovementioned decision was in the context of co-operative societies/Banks claiming deduction under section 80P(2)(a)(i), the principle is equally applicable to all banks/ commercial banks, to which Banking Regulation Act, 1949 applies. (2) 21/2015 10.12.2015 Revision of monetary limits for fi ling of appeals by the Department before the ITAT and High Courts and SLP before Supreme Court Appeals/SLP shall not be fi led in cases where tax eff ect does not exceed the monetary limits given hereunder – `10 lakhs, in case of appeal before ITAT; `20 lakhs, in case of appeal before High Court; and `25 lakhs, in case of appeal before Supreme Court. Further, appeal should not be fi led merely because the tax eff ect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. Th e above limits would apply equally to cross objections under section 253(4) and references to High Court under sections 256(1) and (2). (3) 22/2015 17.12.2015 Allowability of employers contribution to welfare funds of employees remitted after due date under the relevant Act but before the due date of fi ling of return under section 139(1) If the assessee deposits any sum payable by it by way of tax, duty, cess or fee by whatever name called under any law for the time being in force, or any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees, on or before the ‘due date’ applicable in his case for furnishing the return of income under section 139(1), no disallowance can be made under section 43B. Th is clarifi cation is based on Supreme Court decision in CIT v. Alom Extrusions Ltd. (2009) 185 Taxman 416. It is further clarifi ed that this Circular does not apply to claim of deduction relating to employee’s contribution to welfare funds which are governed by section 36(1)(va) of the Income-tax Act, 1961. (4) 23/2015 28.12.2015 Whether provisions of section 194A apply to fi xed deposits made in the name of Registrar General of the Court on the directions of the Court during the pendency of proceedings before the Court. Th e CBDT has, following the Delhi High Court judgment in UCO Bank in Writ Petition No. 3563 of 2012, clarifi ed that interest on FDRs made in the name of Registrar General of the Court or the depositor of the fund on the directions of the Court, will not be subject to TDS till the matter is decided by the Court. However, once the Court decides the ownership of the money lying in the fi xed deposit, the provisions of section 194A will apply to the recipient of the income. At every moment where language can’t go, that’s your mind.– Bodhidharma ACADEMIC UPDATE - FINAL 24 June 2016 The Chartered Accountant Student S. No.Circular No. Date Subject matter/Issue addressed Clarifi cation by CBDT (5) 24/2015 31.12.2015 Applicability of Supreme Court guidelines on recording of satisfaction note under section 158BD to proceedings under section 153C for the purpose of assessment of income of a person other than the searched person Th e Supreme Court, in M/s Calcutta Knitwears, in its judgement in Civil Appeal No. 3958 of 2014 dated 12-3-2014, observed that recording of a satisfaction note is a pre-requisite and the satisfaction note must be prepared by the Assessing Offi cer before he transmits the record to the other Assessing Offi cer who has jurisdiction over such other person under section 158BD. Th e Supreme Court observed that the satisfaction note could be prepared at any of the following stages: (a) at the time of or along with the initiation of proceedings against the searched person under section 158BC; or (b) in the course of the assessment proceedings under section 158BC; or (c) immediately after the assessment proceedings are completed under section 158BC of the searched person. Th e provisions of section 153C are substantially similar/ pari- materia to the provisions of section 158BD and therefore, the above guidelines of the Supreme Court, apply to proceedings under section 153C, for the purposes of assessment of income of other than the searched person. Even if the Assessing Offi cer of the searched person and the “other person” is one and the same, then also he is required to record his satisfaction as has been held by the Courts. (6) 4/2016 29.2.2016 Applicability of TDS provisions on payments made by broadcasters/ telecasters to production houses for production of content or programme for broadcasting/ telecasting While applying the relevant provisions of TDS on a contract for content production, a distinction is required to be made between: (i) a payment for production of content/ programme as per the specifi cations of the broadcaster/telecaster; and (ii) a payment for acquisition of broadcasting/ telecasting rights of the content already produced by the production house. In case (i), where the content is produced as per the specifi cations provided by the broadcaster/telecaster and the copyright of the content/ programme also gets transferred to the telecaster/ broadcaster, such contract is covered by the defi nition of the term `work’ in section 194C and, therefore, subject to TDS under that section. However, in case (ii), where the telecaster/broadcaster acquires only the telecasting/ broadcasting rights of the content already produced by the production house, there is no “contract for carrying out any work”, as required in section 194C(1). Th erefore, such payments are not liable for TDS under section 194C. However, payments of this nature may be liable for TDS under other sections of Chapter XVII-B of the Act. (7) 5/2016 29.2.2016 1. Applicability of TDS provisions on payments made by television channels or media houses publishing newspapers or magazines to advertising agencies for procuring and canvassing for advertisements Th ere are two types of payments involved in the advertising business: (i) Payment by client to the advertising agency, and (ii) Payment by advertising agency to the television channel/ newspaper company TDS under section 194C (as work contract) will be applicable on the fi rst type of payment; however, there will be no TDS under section 194C on the second type of payment e.g. payment by advertising agency to the media company. ACADEMIC UPDATE - FINAL The Chartered Accountant Student June 2016 25 S. No.Circular No. Date Subject matter/Issue addressed Clarifi cation by CBDT 2. Whether the fees/ charges taken or retained by advertising companies from media companies for canvassing/booking advertisements is ‘commission’ or ‘discount’, to attract the TDS provisions under section 194H. Th e issue has been examined by the Allahabad High Court in the case of Jagran Prakashan Ltd. and Delhi High Court in the matter of Living Media Limited and it was held in both the cases that the relationship between the media company and the advertising agency is that of a ‘ principal-to-principal’ and, therefore, not liable for TDS under section 194H. Th e SLPs fi led by the Department in the matter of Living Media Ltd. and Jagran Prakashan Ltd have been dismissed by the Supreme Court vide order dated 11- 12-2009 and order dated 5-5-2014, respectively. Th ough these decisions are in respect of print media, the ratio is also applicable to electronic media/ television advertising as the broad nature of the activities involved is similar. (8) 6/2016 29.2.2016 Whether gains on sale of listed shares and other securities would constitute capital gains or business income? a) Where assessee opts to treat such shares and securities as stock-in-trade: Where the assessee itself, irrespective of the period of holding the listed shares and securities, opts to treat them as stock-in-trade, the income arising from transfer of such shares/securities would be treated as its business income, b) Listed shares and securities held for a period of more than 12 months: In respect of listed shares and securities held for a period of more than 12 months immediately preceding the date of its transfer, if the assessee desires to treat the income arising from the transfer thereof as Capital Gain, the same shall not be put to dispute by the Assessing Offi cer. However, this stand, once taken by the assessee in a particular Assessment Year, shall remain applicable in subsequent Assessment Years also and the taxpayers shall not be allowed to adopt a diff erent/ contrary stand in this regard in subsequent years; c) Other cases: In all other cases, the nature of transaction (i.e. whether the same is in the nature of capital gain or business income) shall continue to be decided keeping in view Circular No.4/2007 dated 15.6.2007 issued by the CBDT. Th e above principles have been formulated with the sole objective of reducing litigation and maintaining consistency in approach on the issue of treatment of income derived from transfer of shares and securities. All the relevant provisions of the Act shall continue to apply on the transactions involving transfer of shares and securities. 7/2016 7.3.2016 Does a consortium of contractors formed to implement large infrastructure projects, particularly in Engineering Procurement and Construction ('EPC') contracts and Turnkey Projects, constitute an Association of Persons (AOP) i.e., a separate entity for charging tax? Th is is an issue which has led to tax disputes particularly in those cases where each member of the consortium, although jointly and severally liable to the contractee, has a clear distinction and role in scope of work, responsibilities and liabilities of the consortium members. Th e CBDT has clarifi ed that a consortium arrangement for executing EPC/Turnkey contracts which has the following attributes may not be treated as an AOP: (i) each member is independently responsible for executing its part of work through its own resources and also bears the risk of its scope of work i.e., there is a clear demarcation in the work and costs between the consortium members and each member incurs expenditure only in its specifi ed area of work; (ii) each member earns profi t or incurs losses, based on performance of the contract falling strictly within its scope of work. However, consortium members may share contract price at gross level only to facilitate convenience in billing; (iii) the men and materials used for any area of work are under the risk and control of respective consortium members; (iv) the control and management of the consortium it not unifi ed and common management is only for the inter- se co-ordination between the consortium members for administrative convenience; Th ere may be other additional factors also which may justify that consortium is not an AOP and the same shall depend upon the specifi c facts and circumstances of a particular case, which need to be taken into consideration while taking a view in the matter. Th is Circular shall not be applicable in cases where all or some of the members of the consortium are Associated Enterprises within the meaning of section 92A of the Act. In such cases, the Assessing Offi cer will decide whether an AOP is formed or not keeping in view the relevant provisions of the Act and judicial jurisprudence on this issue. ACADEMIC UPDATE - FINAL 26 June 2016 The Chartered Accountant Student S. No.Circular No. Date Subject matter/Issue addressed Clarifi cation by CBDT 9/2016 26.4.2016 Does the limitation for imposition of penalty under sections 271D and 271E commence at the level of the Assessing Offi cer (below the rank of Joint Commissioner of lncome-tax) or at level of the Range authority i.e., the Joint Commissioner of Income-tax/ Additional Commissioner of lncome-tax. Th e CBDT clarifi es that the Departmental view is refl ected in the judgment of the Kerala High Court, in Grihalaxmi Vision v. Addl. CIT , wherein it was observed that the question to be considered is whether proceedings for levy of penalty are initiated with the passing of the order of assessment by the Assessing Offi cer or whether such proceedings have commenced with the issuance of the notice by the Joint Commissioner. From the statutory provisions, it is clear that the competent authority to levy penalty is the Joint Commissioner. Th erefore, only the Joint Commissioner can initiate proceedings for levy of penalty. Such initiation of proceedings could not have been done by the Assessing Offi cer. If that be so, the initiation of the penalty proceedings is only with the issuance of the notice by the Joint Commissioner to the assessee to which he has fi led his reply. Where any High Court decides this issue contrary to the Departmental View, this Circular shall not be operative in the area falling in the jurisdiction of the relevant High Court. 10/2016 26.4.2016 Period of limitation for imposition of penalty under sections 271D and 271E – whether to be determined under section 275(1)(a) or section 275(1)(c). Th e Delhi High Court has, in CIT v. Worldwide Township Projects Ltd., observed that it is well settled that a penalty under this provision is independent of the assessment. Th e action inviting imposition of penalty is granting of loans above the prescribed limit otherwise than through banking channels and as such infringement of section 269SS is not related to the income that may be assessed or fi nally adjudicated. In this view, section 275(1)(a) would not be applicable and the provisions of section 275(1)(c) would be attracted.” Th e judgment has been accepted by the CBDT. In view of the above, it is a settled position that the period of limitation of penalty proceedings under section 271D and section 271E is governed by the provisions of section 275(1)(c). Th erefore, the limitation period for the imposition of penalty under these provisions would be the expiry of the fi nancial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed, or six months from the end of the month in which action for imposition of penalty is initiated, whichever period expires later. Th e limitation period is not dependent on the pendency of appeal against the assessment or other order referred to in section 275(1)(a). 11/2016 26.4.2016 Eligibility for interest on refund of excess tax deducted at source to a tax deductor Th e Supreme Court, in the case of Tata Chemical Limited 1, Civil Appeal No. 6301 of 2011 vide order dated 26.02.2014 , held that refund due and payable to the assessee is debt-owed and payable by the Revenue. Th ough there is no express statutory provision for payment of interest on the refund of excess amount/ tax collected by the Revenue, the Government cannot shrug off its apparent obligation to reimburse the deductors lawful monies with the accrued interest for the period of undue retention of such monies. Th e State having received the money without right, and having retained and used it, is bound to make the party good, just as an individual would be under like circumstances. Th e obligation to refund money received and retained without right implies and carries with it the right to interest. In view of the above judgment of the Apex Court, it is settled that if a resident deductor is entitled for the refund of tax deposited under section 195, then, it has to be refunded with interest under section 244A from the date of payment of such tax. The Chartered Accountant Student June 2016 27 National Convention for CA Students - Jaipur Organized by: Board of Studies, ICAI Hosted by: Jaipur Branch of CIRC of ICAI & Jaipur Branch of CICASA THEME: CA Profession - Enlighten, Enrich & Excel 14TH & 15TH JUNE, 2016 BIRLA AUDITORIUM, JAIPUR Students are hereby requested to register for the Convention at the earliest as per the following details: DAY-1 9:30 am to 10:30 am Inaugural Session 10.30 am to 11.30 am Interaction and Open House with CA. Babu Abraham Kallivayalil, Chairman, Board of Studies, ICAI CA. Dhiraj Kumar Khandelwal, Vice-Chairman, Board of Studies, ICAI 11.30 am to 1.30 pm Technical Session - 1 : Direct Taxes – Systematic Approach Session Chairman: CA. Girish Ahuja, New Delhi Topics: 1) Business and Profession under IT Act 2) Capital Gains under IT Act 3) Deductions u/s Chapter VI A under IT Act 2.30 pm to 3.00 pm Initiatives taken by Board of Studies, ICAI for Students 3.00 pm to 5.00 pm Technical Session -2 : Company Law – Practical Orientation & Updation Session Chairman: CA. Siddharth Agarwal, Kolkata Topics: 1) CARO 2016 – The Heavy Dose of Law into Audit 2) Board Meetings versus General Meetings 3) Exemption to Government Companies – All in name of public interest DAY - 2 9.30 am to 11.45 am Technical Session -3 : Accounting Standards – An Overview & Grooming Session Chairman: CA. Jay Chhaira, Surat, Central Council Member, ICAI Topics: 1) AS – 11 / 20 2) AS – 22 / 28 3) Altitude – Attitude – Aptitude 11.45 am to 1.45 pm Technical Session - 4 : Personality Development Session Chairman: CA. Shyam Lal Agarwal, Central Council Member, ICAI CA. Manu Agarwal, Central Council Member, ICAI CA. Kemisha Soni, Central Council Member, ICAI CA. Mukesh Singh Kushwah, Central Council Member, ICAI CA. Prakash Sharma, Central Council Member, ICAI Topics: 1) Positive Attitude 2) Importance of Effective Articleship 3) Time Planning 4) Art of presenting yourself 2.45 pm to 5.15 pm Technical Session - 5: Audit – Practical Orientation Session Chairman: CA. Aseem Trivedi, Indore Topics: 1) Risk Based Audit 2) Audit Sampling 3) Fraud Risk Factors Registration fees`500/- Per Student For Accommodation details contact the branch Payment Mode Cash/DD/Cheque to be drawn in favour of “Jaipur Branch of CIRC of ICAI”, payable at Jaipur Link for Online Payment facility : http://www.jaipur-icai.org/Payments/page For registration queries contact:- Mr. Manish Jain, Asst. Education Of fi cer JAIPUR BRANCH OF CIRC OF ICAI ICAI BHAWAN, D-1 INSTITUTIONAL AREA, JHALANA DOONGARI, JAIPUR – 302004 www.jaipur-icai.org ; email: education@jaipur-icai.org ; Jaipur@icai.org ; Jaipur@icai.in Branch Telephone Nos; 0141-3044200 / 3044214 / 3044216 / 9667555065 Students (pursuing Practical Training/Industrial Training) are invited to contribute papers for presentation (1500 to 2000 words) for topics in Technical-Sessions and submit for approval a soft copy of the Paper at education@jaipur-icai.org or jaipur@icai.in by 20th May, 2016 and a hard copy of the same along with Student’s Photograph (with his/her name on the back of the photograph), ICAI Students’ Registration Number, Course pursuing, complete postal address, Mobile, Landline numbers and e-mail ID be also sent to the Jaipur Branch of CIRC of ICAI. Outstation student speakers shall be reimbursed actual travelling expenses equivalent to 2 tier AC and DA @ `1500/- per day for lodging and incidental expenses etc. (It is suggested that the students submitting the papers may tentatively book train tickets pending selection of their papers. This may enable them to have con fi rmed train tickets). CA. Babu Abraham Kallivayalil Convention Chairman & Chairman, Board of Studies, ICAI CA. Dhiraj Kumar Khandelwal Convention Vice-Chairman & Vice-Chairman, Board of Studies, ICAI CA. Shyam Lal Agarwal Central Council Member-ICAI CA. Prakash Sharma Central Council Member-ICAI Convention Conveners CA. Pramod Kumar Boob Vice Chairman CIRC CA. Rohit Ruwatia Agarwal YMEC Chairman CIRC CA. Gautam Sharma Regional Council Member-CIRC Convention Co-Coordinators CA. Dinesh Kumar Jain Convention Coordinator & Chairman, Jaipur Branch of CIRC of ICAI CA. Sanjay Kumar Maheshwari Convention Coordinator & Chairman, Jaipur Branch of Students Association 28 June 2016 The Chartered Accountant Student National Convention for CA Students - Guwahati “Eduvision-16, Quest to Conquer” Organized by: Board of Studies, ICAI Hosted by: Guwahati Branch of EIRC of ICAI & Guwahati Branch of EICASA of ICAI 25th & 26th JUNE, 2016 PRAGJYOTI ITA CENTRE, MACHKHOWA, GUWAHATI Students are hereby requested to register for the Convention at the earliest as per the following details: The Inaugural Session will be on Day – 1 and the Valedictory Session on Day – 2. DAY-1 9:30 am to 10:30 am Inaugural Session Chief Guest: CA. Nilesh S Vikamsey , Vice President, ICAI Guest of Honor: CA. Babu Abraham Kallivayalil, Chairman, Board of Studies, ICAI CA. Dhiraj Kumar Khandelwal, Vice Chairman, Board of Studies, ICAI Central Council Members and Regional Council Members from EIRC of ICAI 10:45 am to 11:15 am Interaction and Open House with CA. Nilesh S Vikamsey, Vice President, ICAI CA. Babu Abraham Kallivayalil, Chairman, Board of Studies, ICAI CA. Dhiraj Kumar Khandelwal, Vice Chairman Board of Studies, ICAI 11:30 am to 01:00 pm First Technical Session – Audit & Financial Reporting Session Chairman: CA. Praveen Sharma , New Delhi Topics: a) Challenges in implementation of noti fi ed Ind AS b) Reporting on Internal Financial Controls system in case of Companies 02:15 pm to 03.15 pm Special Session: Initiatives taken by Board of Studies, ICAI for Students 03:30 pm to 05:00 pm Second Technical Session–Indirect Taxes Session Chairman: CA Manoj Batra, New Delhi Topics: a) Impact of GST on Indian Tax System & Economy b) CENVAT Credit - Recent Developments DAY-2 9:30 A.M. to 11: 00 A.M. Third Technical Session –Corporate & Business Laws Session Chairman: CA (Dr.) Debashis Mitra, Guwahati Topics: a) CARO 2016- A Critical Analysis b) Start Up Companies in India - Way forward for entrepreneurship 11:15 A.M. to 12:45 P.M. Special Motivational Session: “India calling-Are you Ready ?”:- Dr. Suresh Chari, Nagpur 02:00P.M. to 3:30 P.M. Fourth Technical Session –Direct Taxes Session Chairman: CA. Vinod Gupta, New Delhi Topics: a) Income Computation and Disclosure Standards (ICDS) b) Taxation of E-Commerce Business 3:45 P.M. to 5.00 P.M. Fifth Technical Session –Economic Environment & General Awareness Session Chairman: Dr. Shantikam Hazarika, Guwahati Topics: a) Social Media – A Time Killer or an Useful Tool? b) Make in India – A Dream or A Reality? Registration fees `500/- per student ` 1,000/- for others Accommodation (if required) @ `1,500/- per student Payment Mode Cash/DD/Cheque to be drawn in favour of Faridabad Guwahati Branch of EIRC of ICAI payable at Guwahati For registration queries contact: Guwahati Branch of EIRC of ICAI, ICAI Bhawan, 2nd Bye Lane, Manik Nagar, R G Baruah Road, Guwahati-781 005 (Assam) Phone No-:+91-361-2207660 ; Mobile-+91-97070-78491 • Email :icai.guwahati@gmail.com • Website: www. guwahati-icai.org Students (pursuing Practical Training/Industrial Training) are invited to contribute papers for presentation (1500 to 2000 words) for topics in Technical-Sessions and submit for approval a soft copy of the Paper at icai.guwahati@gmail.com by 31st May, 2016 and a hard copy of the same along with Student’s Photograph (with his/her name on the back of the photograph), ICAI Students’ Registration Number, Course pursuing, complete postal address, Mobile, Landline numbers and e-mail ID be also sent to the Guwahati Branch of EIRC of ICAI. Outstation student speakers shall be reimbursed actual travelling expenses equivalent to 2 tier AC and DA @ ` 1500/- per day for lodging and incidental expenses etc. (It is suggested that the students submitting the papers may tentatively book train tickets pending selection of their papers. This may enable them to have con fi rmed train tickets.) Students who are interested to participate in the cultural programme are requested to register before 31 st May, 2016 at icai.guwahati@ gmail.com or Contact CA. Kamal Mour, Chairman, Guwahati Branch of EICASA of the ICAI. CA. Babu Abraham Kallivayalil Convention Chairman & Chairman, Board of Studies, ICAI CA. Dhiraj Kumar Khandelwal Convention Co-Chairman & Vice-Chairman, Board of Studies, ICAI CA. (Dr.) Debashis Mitra CA. Ranjeet Kumar Agarwal CA. Sushil Kumar Goyal Convention Conveners & Members, Board of Studies, ICAI CA. Rakesh Agarwala Convention Coordinator & Chairman, Guwahati Branch of EIRC of ICAI Mobile-+91-98640-20068 CA. Kamal Mour Convention Coordinator & Chairman, Guwahati Branch of EICASA of ICAI Mobile- +91-94355-59587 The Chartered Accountant Student June 2016 29 National Convention for CA Students - Baroda Organized by: Board of Studies, ICAI Hosted by: Baroda Branch of WIRC of ICAI & Baroda Branch of WICASA THEME: … SUCCESS IS BORN OUT OF ACTION 8th & 9th JULY, 2016 SIR SAYAJI RAO NAGAR GRUH, AKOTA, BARODA, GUJARAT Students are hereby requested to register for the Conclave at the earliest as per the following details: *Subject to con fi rmation DAY-1 9:30 am TO 10:30 am Inaugural Session Chief Guest: Miss Bhakti Sharma, First Asian Women Open water Swimmer Guests of Honour: CA. M Devaraja Reddy, President, ICAI* CA. Nilesh S Vikamsey, Vice President, ICAI* Opening Remarks: CA. Babu Abraham Kallivayalil, Chairman, Board of Studies, ICAI Closing Remarks & Vote of Thanks: CA. Dhiraj Kumar Khandelwal, Vice Chairman, Board of Studies, ICAI 10:30 am to 12:00 noon Technical Session I: Corporate Law Session Chairman: CA. Vikas Balia, Jodhpur 1. Independent Director; Defi nition, Remuneration and difference between Non-executive Director and Independent Director 2. Internal Financial Controls on Financial Reporting 3. Structuring of Shareholder’s Agreement 12:15 pm to 1:15 pm Interactive Session with CA. Babu Abraham Kallivayalil, Chairman, Board of Studies, ICAI CA. Dhiraj Kumar Khandelwal, Vice Chairman Board of Studies, ICAI CA. Pradeep K. Agrawal, Chairman, WICASA 2:15 pm to 3:15 pm Special Session: “Success is Born out of Action” Session Chairman: CA. Uttam Prakash Agarwal, Past President of ICAI Session Speaker: Mr. T. S. Madaan, Delhi 3:30 pm to 5:00 pm Technical Session II: Changing Paradigm of Indian Economy Session Chairman: CA. Anil Bhandari, Central Council Member, ICAI 1. Top 5 ways to boost startups in Growing India 2. Tax Reforms – Path to India 2030 3. Intricacies of Taxation of E-Commerce –Domestic & International Transaction 7:00 pm Onwards The Creative Side of CA Student (for the Students, by the Students, of the Students) DAY-2 9:00 am to 11:30 am Panel Discussion by CFO & CA in Practice: The Changing Landscape for Financial Services in India Session Chairman: CA. Jay Chhaira, Central Council Member, ICAI Panel Moderator: CA. Maulik Mehta* , Vadodara Panelist: 1. CA. Rajendra Joshipara, CFO of M/s. Nirma Ltd. 2. CA. P R. Remesh, Hyderabad 11:45 am to 1.15 pm Technical Session III: Accounts & Auditing Session Chairman: CA. Yagnesh Desai, Mumbai 1. Auditor’s Responsibility under Companies Act 2013 2. Ind AS – Flight to Globalization of Indian Accounting 3. Expression of Modifi ed Opinion by the Auditor and usage of EOM/OM Paragraph - Case Studies’ based discussion from the Annual Reports. 2:00 pm to 3:45 pm Technical Session IV: Indirect Taxation Session Chairman: CA. Atul Kumar Gupta, Central Council Member, ICAI 1. Controversies in Export of Service 2. Comparative View of Indirect Tax of Developed v/s Developing Countries 3. Declared Services 4:00 pm to 5:30 pm Special Session & Valedictory Session Chief Guest – Eminent Personality Transform your thinking Speaker: Mr. Saunak Bhattha, Motivational Speaker, Kathmandu, Nepal* Registration fees`900/- before 30th June, thereafter `1100/- Payment Mode Cash/DD/Cheque to be drawn in favor of WICASA, payable at Baroda. Students can enroll themselves online also by visiting on www.baroda-icai.org For registration contact:- Mr. Dhiren Parikh, Secretary Baroda Branch of WIRC of ICAI: +91 93762 11099 Mr. Ayush Goyal, Vice Chairman Baroda WICASA: +91 84604 69220 Ms. Sangeeta Kumari, Secretary Baroda WICASA: +91 8460064320 Students are invited to contribute papers for presentation (1500 to 2000 words) for topics in Technical -Sessions and submit for approval a soft copy of the Paper at wicasa.baroda@gmail.com by 05th June, 2016. The Mail or Hard Copy for selection as a Paper Presenter should consist of 1) MS Word Copy of Presentation (1500- 2000 Words) having Font Siz’ 14 2) Brief Pro fi le of Student 3) Passport Size Photograph 4) 120 Seconds Video Recording of Participants giving speech 5)Power Point Presentation of 10-15 slides along with Student’s Photograph (with his/her name on the back of the photograph), ICAI Students’ Registration Number, Course pursuing, complete postal address, Mobile, Landline numbers and e-mail ID be also sent to Baroda Branch of ICAI. Students can also take part in Debate in a team of 3. Interested Students are requested to submit a soft copy of the Paper / submission for debate (points in favor and against of the topic) at wicasa.baroda@gmail.com Outstation student speakers shall be reimbursed actual travelling expenses of himself/herself only, equivalent to 2 tier AC and DA @ ` 1500/- per day for lodging etc. maximum of 5 days including Journey time. Students who are interested to participate in the cultural programme are requested to register before 30th May, 2016 at Baroda Branch of the ICAI. CA. Babu Abraham Kallivayalil Chairman, Board of Studies, ICAI Convention Chairman CA. Dhiraj Kumar Khandelwal Vice-Chairman, Board of Studies, ICAI Convention Co-Chairman & Convener CA. Shruti Shah Chairperson, WIRC of ICAI Convention Coordinator CA. Pradeep K. Agrawal Chairman WICASA, Convention Coordinator CA. Viral Shah Chairman, Baroda Branch of WIRC of ICAI Convention Coordinator CA. Arpan Dodia Chairman, Baroda Branch of WICASA Convention Coordinator 30 June 2016 The Chartered Accountant Student National Convention for CA Students - Kolkata Organized by: Board of Studies, ICAI Hosted by: EIRC & EICASA THEME: AASHAYEIN : THE GLIMPSE OF BETTER TOMORROW 16TH & 17TH JULY, 2016 CENTENARY HALL,CALCUTTA UNIVERSITY, KOLKATA The Inaugural Session will be on Day – 1 and the Valedictory Session on Day – 2. Students are hereby requested to register for the Convention at the earliest as per the following details: DAY-1 11 am to 12 Noon Interaction and Open House with CA. Babu Abraham Kallivayalil, Chairman, Board of Studies, ICAI CA. Dhiraj Kumar Khandelwal, Vice-Chairman, Board of Studies, ICAI 12.00 pm to 1.30 pm Technical Session I: Corporate Law Session Chairman:- Topics: a) Fraud Reporting under Companies Act 2013 b) Ease of doing business in India: Company Law Reforms c) Companies Amendment Bill 2016: Adieu to unwarranted compliances. 2.30 pm to 3 pm Initiatives taken by Board of Studies, ICAI 3 pm to 4.30 pm Technical Session II: Accounts & Audit Session Chairman:- Topics: a) Implementation of Ind AS – Final step towards IFRS & challenges thereof b) How to manage fi nances in a start up company? c) Forensic Audit: The Future 4.30 pm to 5.30 pm Panel Discussion Topic: 1) Reservation in India should be based on Economic criteria. Topic: 2) Articleship Training- Myth or Reality DAY - 2 10 am to 11.30 am Technical Session III: Taxation Session Chairman:- Topics: a) GST in India: Way Forward b) Taxation of HUF and Family settlements c) Regulation to curb black money 11.30 am to 12.30 pm Special Session: “ Women Leaders – making a mark in Men’s World: Challenges and Success “ 12.30 pm to 2 pm Technical Session IV: Indian Economy, Technology & Current Affairs Session Chairman:- Topics: a) MCLR Interest regime – Its Impact on Economic Growth b) Technology in CA Education: E-learning, Satellite Learning, Social Networking Sites c) Swach Bharat: Role of Student 3 pm – 4 pm Special Session V: Panel discussion on ‘Success Strategies for CA Examinations’ Speakers: Rank Holders Registration fees `500 per student upto 15th June,2016 `600 per student upto 1st July, 2016 `750 per student from 2nd July to 10th July, 2016 Accommodation (if required) @ Rs. 500 per student PER DAY OVER & ABOVE DELEGATE FEES. (Outstation students who wish to join, as delegates are required to register within 25th June 2016 to enable us to make necessary stay arrangements.) Payment Mode Cash/DD/Cheque to be drawn in favour of ICAI- EIRC, payable at Kolkata Or Details for Online Registration (if any): Students may register online at www.eirc-icai.org or write to conventionkolkata@gmail.com For registration queries contact:-Eastern Regional Of fi ce of the ICAI Phone: 033- 30211138 & Email: payal.agarwal@icai.in Website- www.eirc-icai.org Mobile: CA.Payal Agarwal 9903541161 (from 10 am to 5 pm) Students (pursuing Practical Training/Industrial Training) are invited to contribute papers for presentation (1500 to 2000 words) for topics in Technical-Sessions and submit for approval a soft copy of the Paper at jyoti.luharuka@icai.in and payal.agarwal@icai.in by 15th June 2016 along with Student’s scanned Photograph , ICAI Students’ Registration Number, Course pursuing, complete postal address, Mobile, Landline numbers and e-mail ID . One pa per for each topic would be selected. Only selected paperwriters would be informed by email. Outstation student speakers shall be reimbursed actual travelling expenses equivalent to 2 tier AC and DA @ `1500/- per day for lodging and incidental expenses etc. (It is suggested that the students submitting the papers may tentatively book train tickets pending selection of their papers. This may enable them to have con fi rmed train tickets.) CA. Babu Abraham Kallivayalil Convention Chairman & Chairman, Board of Studies, ICAI CA. Dhiraj Kumar Khandelwal Convention Co-Chairman & Vice-Chairman, Board of Studies, ICAI CA Anirban Datta Convention Coordinator & Chairman, EIRC CA Manish Goyal Convention Co- Coordinator, Chairman, EICASA & Vice Chairman, EIRC CA (Dr) Debashis Mitra CA Sushil Kumar Goyal CA Ranjeet Kumar Agarwal Convention Conveners & Member, Board Of Studies, ICAI The Chartered Accountant Student June 2016 31 The Board of Studies has planned the following Conventions/ Conferences for CA students as of May, 2016. For further details, please contact the respective Regional Council/Branch/Decentralised Offi ce. S. N Branch/RC Name of the Programme Region Approved Dates Contact Details 1 Ludhiana National ConventionN 25th-26th June, 2016Ph: 0161-2402425 Email: ludhiana@icai.org 2 Indore National Convention C 2nd-3rd July, 2016Ph: 0731-4298198, 2570052/53 Email: indore@icai.org 3 Nagpur National Convention W 8th-9th July, 2016Ph: 0712-2443968,2441196 Email: nagpur@icai.org 4 Salem National Convention S 15th-16th July,2016Ph: 0427-2318813/2316638 Email: salem@icai.org 5 Lucknow National Convention C 27th-28th Aug, 2016Ph: 0522-2301524 , 3941932 Email: lucknow@icai.org 6 Goa National Conclave G 30th Nov-1st Dec, 2016 Ph: 0832-2438516, 6642216 Email: goa@icai.org 7 Bangalore National Convention S 10th-11th Dec, 2016Ph: 080-22252547 Email: bangalore@icai.org 8 Rajkot National Conclave G 11th-12th Dec, 2016Ph: 0281-2582412/13 Email: rajkot@icai.org 9 Ernakulam All India Conference S 16th-17th Dec, 2016Ph: 0484-2396238/58, 2372953 Email: ernakulam@icai.org 10 Mumbai National Convention W 30th-31st Dec, 2016Ph: 022-39893989, 33671400/1500 Email: wro@icai.org 11 Chennai National Convention S 31st-Dec, 2016- 1st Jan, 2017 Ph: 044-39893989, 30210300 Email: sirc@icai.in 12 Hyderabad International Conference S 07th-8th Jan, 2017 Ph: 040-23317026, 23393182 Email: hyderabaddco@icai.org, coehyd@icai.in ANNOUNCEMENT ANNOUNCEMENT On Line Articles Placement Portal for selection of Articled Assistants by CA Firms The Board of Studies of the ICAI has been providing Online Articles Placement facility for selection of Articled Assistants by CA Firms through its Articles Placement Portal on pan India basis. It provides a platform to the fi rms of Chartered Accountants having vacancies for Articled Assistants to shortlist eligible students for selection of articled assistants, and call them for Interview at their offi ces, as per date and time convenient to them. The eligible candidates who have passed Group-I or both Groups of the Intermediate (Integrate d Professional Competence) Course or have been admitted under the Direct Entry Scheme and are willing to join articled training c an register themselves on the portal. The services to the Online Placement Portal are available free of charge for both CA Firms and students and they can register themselves online through the Portal at http://bosapp.icai.org. The services on the Portal would be available for two months, twice a year, from the date of registration by the fi rms. Similarly the bio data of a student will also be available on the portal for a maximum period of 2 months from student’s registration. The candid ates shortlisted by CA Firms would be informed by e-mails through the Portal, to appear for interview at their respective Offi ces, at the designated date and time. Detailed guidelines are available at the institutes’ website www.icai.org and on the Portal. In case of any further clarifi cation, please contact the Board of Studies, ICAI Bhawan, A-29, Sector-62, Noida-201309, Tel. No. 0120-3045930/931/988; eMail: bosapp@icai.in. Chairman, Board of Studies ANNOUNCEMENT ADDRESS TO REDRESS AN INITIATIVE OF SIRC TOWARDS MEMBERS & STUDENTS SERVICES FIRST MONDAY OF EVERY MONTH 10.00 A.M. – 05.00 P.M. CALL TOLL FREE NUMBERS : 1800 425 4265 / 1800 425 4275 32 June 2016 The Chartered Accountant Student ANNOUNCEMENT 9th May 2016 Invitation for contributions to Question Bank in respect of Information System Audit-(Assessment Test (ISA-AT)(New Syllabus) Information Systems Audit is a post qualifi cation course meant for the members of the Institute. Members who are registered for the course are required to appear and pass ISA-Eligibility Test and those who qualify thereon are required to appear and pass the I SA- Assessment Test(ISA-AT ). ISA-AT is an objective type test, candidates being required to choose the correct answer out of multiple answers provided in the question. The question paper is for 200 marks with 200 questions carrying 1 mark each. The duration of the exam is 4 hours. With a view to develop the Question Bank for the various Modules spread over the Syllabus of the ISA-AT (New Syllabus), it has been decided to invite questions from Chartered Accountants/experts working in various organizations/ institutions. The titles of these Modules prescribed in the New Syllabus are given hereunder: Module No. Module Title 1 Primer on Information Technology, IS Infrastructure and Emerging Technologies 2 Information Systems Assurance Services 3 Governance and Management of Enterprise Information Technology, Risk Management and Compliance 4 Protection of Information Assets 5 Systems Development: Acquisition, Maintenance and Implementation. 6 Business Applications Software Audit 7 Business Continuity Management Details are available at : http://cit.icai.org/ISA_eLearn_2/ISACourse2.0DVD/index.html on www.icai.org The Guidelines in this regard are as follows: 1. The contributor can contribute as many questions as he/she can, but in a lot of minimum of 50 questions on th\ e aforesaid modules in the following manner:- Q. No. Question and Answer Option Answer(for example) 01 Question description A) Option A B) Option B C) Option C D) Option D C 02 ……. 50 2. While framing the questions, the contributors have to prepare the questions for individual modules in separate fi les/documents. 3. The questions should cover all the sub chapters or aspects of the syllabus and be free from any ambiguity, doubt etc. 4. The language of the question should be free from ambiguity and should be such that it conveys exactly the same meaning as is intended by the person who frames it. 5. It is also essential that proper care is taken in framing the questions and options (answers) provided below the questions. The answer key (correct answer) to each option (answer) be given as per the above format. 6. The copyrights of the questions as well as answers so submitted shall vest with the Council of the Institute. 7. The contributor of the questions shall ensure that the questions so submitted to the Institute are not parted with by him/her to any other Body/Person and shall be meant only for the exclusive use by the Council of the Institute. It may please be noted that the questions framed by you should be original and not already published in some books or journals or study material of the Institute or reference/text books available in the market or also from question papers of any other examinations or material distributed by any coaching institution. The requirement is that the questions are original and framed with meticulous care. 8. A honorarium of `500/- per question selected/accepted by the Institute will be paid as honorarium. In addition to honorarium payable towards questions selected, `100/- (fi xed) will be paid as contingent expenses. 9. Interested persons may send their contributions in a sealed envelope superscribing “Question Bank – ISA-AT (New Syllabus)” t o Shri B. Muralidharan, Deputy Secretary (Exams), The Institute of Chartered Accountants of India, “ICAI Bhawan”, Indraprastha Marg, N ew Delhi – 110002 by Speed Post or by e-mail to exam.development@icai.in. Soft copy of the contributions should be in word format for windows. The font should be Times New Roman, size 12. 10. While sending the questions by post/mail, please mention your name, complete postal address, contact details (e-mail ID and mobile phone number), PAN No. , Name of Bank, Bank A/c no. and IFSC code. 11. All correspondence on the subject should be treated as secret. Deputy Secretary (Exams.) ANNOUNCEMENT Sub: Extension of date to complete GMCS-I Course by the students registered for articleship training on or after 1st May, 2012 It has been decided to grant extension to students, who were registered for practical training on or after 1st May, 2012 and completed one year of their practical training but not completed the GMCS-I course, are required to complete GMCS-I Course latest by 31st December, 2016. The above students are advised to register at the online portal www.icaionlineregistration.org or contact the nearest Regional Council/Branch for registration in GMCS-I Course and complete the same at the earliest but not later than 31st December, 2016. Director, Board of Studies The Chartered Accountant Student June 2016 33 ANNOUNCEMENT Online Mentoring on ICAI Cloud Campus - http://cloudcampus.icai.org The ICAI Cloud Campus enables Students to learn anytime and from anywhere using e-Learning, Audio Lectures, Video Lectures and Online Mentoring. Students can even learn through Mobile Enabled e-Learning facility on the Students Learning Management System (LMS) on their Mobile Phones/ Smart Phones/ Tablets.Online Mentoring is one of the major value added features on the Cloud Campus. The schedule of online mentoring sessions for June, 2016 is as follows: Online Mentoring Schedule Date CoursePaper TopicFacultyTime June 8 IIPC Paper-3: Cost Accounting and Financial Management Essentials of preparation of Cost Accounting and Financial Management Dr. N.N. Sengupta and CA. Sanjit Sharma 3 pm - 5 pm June 10 IIPC Paper-4: Taxation How to prepare Taxation – Income Tax and Indirect Taxes CA. Shefali Jain and CA. AparnaChauhan3 pm - 5 pm June 16 IIPC Paper-1: Accounting and Paper-2: Business Laws, Ethics and Communication Preparation of Financial Statements of Companies CA. Seema Gupta and Ms.Nisha Gupta3 pm - 5 pm June 17 Final Paper-7: Direct Tax Laws and Paper-8: Indirect Tax Laws Essentials for preparation in Direct and Indirect Tax Laws, covering statutory updates/judicial updates relevant for November, 2016 examination CA. Priya Subramanian and CA. Smita Mishra 3 pm - 5 pm June 29 Final Paper-1: Financial Reporting and Paper-3: Advanced Auditing and Professional Ethics Accounting Standards CA. ShilpaAgrawal and CA. KarunaBhansali 3 pm - 5 pm June 30 Final Paper-2: Strategic Financial Management and Paper-5: Advanced Management Accounting Essentials of preparation of Advanced Management Accounting and Strategic Financial Management CA. Ashish Gupta and CA. Deepak Kumar Gupta 3 pm - 5 pm Students are advised to register for Online Mentoring Sessions on the ICAI Cloud Campus and provide specifi c questions/ queries that they need to be discussed at least 48 working hours before the session.Links to access the aforementioned Online Mentoring Sessions are also available on the http://cloudcampus.icai.org under Online Mentoring. Director, Board of Studies ANNOUNCEMENT For kind attention of eligible candidates, planning to attend the Campus Placement Programme, meant for newly qualifi ed CAs, scheduled in August-September, 2016. PRECISION IN COMMUNICATION PROVES PROFESSIONAL SOPHISTICATION Communication tests and refl ects the depth and width of one’s true strength. The way you conduct yourself in interview Board truly matters to gain employment opportunities. A persistent honing of soft skill improves presentation potential and enhances chances of being selected. To make such things happen, in the forthcoming Campus Placement Programme to be held in August-September, 2016, we would request you to put special focus on communication and presentation, besides keeping yourself up to date on subject matters, and face the Interview fearlessly. There’s no fear if courage and confi dence complement each other. To know more, besides visiting the CPABI’s sites of ICAI, please do visit other sites and must read the article(s) “5 ways to improve your Business Language Skills” (including all other sites linked with that write-up), “7 tips to improve verbal communication skills” and so on by doing research on the internet. CORRIGENDUM Students may read the words ‘Finance Bill, 2015’ as ‘Finance Bill, 2016’ as appearing on pages 16 and 17 of the April, 2016 issue of the Journal. The Chartered Accountant Student June 2016 35 ANNOUNCEMENT Four Weeks Residential Programme on Professional Skills Development organised by Board of Studies at Centre of Excellence, (CoE), Hyderabad The Board of Studies is pleased to announce the next two batches of ICAI Four Weeks Residential Programme as below: Venue Participant Fees Date Links for Registration Centre of Excellence (CoE), Hyderabad Women ` 40,000/- 27th June, 2016 to 24th July, 2016 http://220.227.161.86/36975bos 26354main.pdf Centre of Excellence (CoE), Hyderabad Men ` 40,000/- 30th July, 2016 to 26th August, 2016. http://220.227.161.86/36975bos 26354main.pdf The programme aims to help the Chartered Accountancy students and newly qualifi ed Chartered Accountants in imbibing the professional skills required for eff ective functioning in business organisations and the profession. The Programme environment focuses on development of communication skills, personal qualities, interpersonal and teamwork skills, problem solving skills and leadership skills. Salient Features of the Programme: Emphasis on Soft Skills, Communication Skills and Personality Development. Exemption from payment of Fees to Top 10 Rank holders. Part of Articleship Training. No need for Separate GMCS/GMCS II Special Session on Group Discussion & Interview. Preparation of Project and Presentation Skills. Building Team Spirit. Students who have passed Chartered Accountancy IPCC/ PCC/ PE- II examination and pursuing last year of article training or completed Articleship training are invited to join the course for this batch. Recently qualifi ed Chartered Accountants are also welcome to join the course. For online registration, further details visit the Board of Studies Announcements under the Students Icon on the Home Page of ICAI website www.icai.org. For upcoming batches, please regularly visit www.icai.org or refer to the Chartered Accountant Student Journal. For any query, you can also call at 0120-3045935. Director, Board of Studies CROSSWORD SOLUTION - MAY 20161D E 2E D 3G4U5I L T 6R O M 7C O S T 8E U 9F U 10T I L E11B U G 12S O L E D13P14U R R 15T R A N 16SM17ISSI O N 18R T T 19NO C20A D B 21A R E 22ON E23G O 24I 25D A S 26BE G27S E N D D N 28TA S K 29D I L 30N 31SI T32I33C O E 34O O Z E35M O 36O T 37L 38O T A39B U S 40D O V E 41T42O43IL S 44W A S 45TI N G46R T I 47D E L 48RO G U E 49D R 50B I N C A R D S 17. One of the punctuation marks. 18. Internationally well accepted concept of........ to be introduced in the Income-tax Act, 1961 for determining the residential status of companies. 19. Condition for equilibrium for a fi rm: MC = __. 20. Contributions to Swachh Bharat Kosh set up for the promotion of sanitation will also be considered as eligible expenditure qualifying fo\ r ____. 21. The time limit for return of capital goods from a job worker is ____ years. 22. Ballots 25. SEBI formulated the SEBI (Share Based Employee Benefi ts) Regulations, 2014 which replaces the SEBI (________) Guidelines, 1999. 27. An unbiased examination and evaluation of the fi nancial statements of an organization. 28. Boy 29. A life insurance which provides coverage at a fi xed rate of payments for a limited period of time. 32. A subject which is proposed to be dropped from the CA Final course as per new proposed scheme of education and training. 33. A social science and a system of rules that are enforced through social institutions to govern behaviour. 34. Compete with 35. Ind AS is applicable to ________ the companies on voluntary basis for fi nancial statements for accounting periods beginning on or after April 1,\ 2015, with the comparatives for the periods ending 31st March, 2015 or thereafter. 36. ____checks how well the eyes, inner ears, and brain help you keep your balance and position. 40. For example, in Latin. Registered: DL-(C)-01/1280/2015-2017, D. NO. MH/MR/TECH-47/3/2016 License To Post Without Prepayment, WPP Licence No.: MR/TECH/WPP-247/DL(C)/2016 Posted at Mumbai Patrika Channel Sorting O\ f fi ce, Mumbai Posting Date: Last three days of advance month & fi rst 04 days of current month, Date of publication: 26th of previous monthRNI NO. 66180/1997 CROSSWORD - JUNE 2016 If undelivered, please return to: The Institute of Chartered Accountants of India, ICAI Bhawan, Indraprastha Marg, New Delhi-110104 36 ACROSS 1. 1. Minimum number of meetings to be conducted by a company in a year. 5. Smell 9. An independent assessment and certifi cation body which provides global assessment and certifi cation services in the fi eld of management system, product certifi cations, etc. 10. The fi rst annual general meeting of the company shall be held within ---------months from the closing of fi rst fi nancial year. 12. Largest company (in terms of assets value) in India. 13. Maximum number of public companies in which a person can be appointed as a director. 14. A grouping of assets, such as mortgages, that serves as a basis for the issuing of securities. 15. Roman numeral for four. 16. An open _____ policy: A communication policy in which a manager encourages openness and transparency with the employees of that company. 17. The speed of a printer is measured in _______. 19. Roman numeral for 1001. 20. Payment of interest on time deposits with ......... banks to be subject to TDS under section 194A with effect from 1st June, 2015. 23. These get special benefi ts from the government. 24. Watchdog of international trade. 26. A short-term memory for your computer to store programs it is using and gets wiped out, when shut down is ___________ 27. The highest adult male singing voice especially in church music. 30. ____ is the popular name in India for withholding tax. 31. One of major trade partners of India. 32. That is, in Latin. 33. Roman numeral for 55. 35. In computer architecture, ___________ bus is a set of wires that connects CPU and RAM and carries the memory addresses. 37. Intelligence exhibited by machines or software. 38. Roman numeral for 51. 39. An organization that owns or controls productions of goods or services in one or more countries other than the home country. 41. ____ tax has been abolished w.e.f. A.Y.2016-17. 42. Tax benefi t under section 80G has been extended for contribution made by domestic donors to Clean ........ Fund. DOWN 1. The scheme of Advance Ruling has been extended to resident ____ in Central Excise and Customs. 2. Persons of Indian origin (of certain categories) who migrated from India and acquired citizenship of a foreign country are eligible to be granted an ___. 3. A ____ is a reference to a resource that specifi es the location of the resource on a computer network and a mechanism for retrieving it. The time limit for taking CENVAT credit on inputs has been enhanced from six months to ____ year . 5. If something happens ___ and off during a period of time, it happens sometimes. 6. A kind of borrowing made by the companies. 7. An intergovernmental organization established 24 October 1945 to promote international co-operation. 8. Ind AS has been notifi ed under the Companies (Indian Accounting Standards) _______, 2015 11. As per the Companies Act, 2013, an intermediate wholly-owned subsidiary company whose immediate parent is a company incorporated in ______ is not required to prepare consolidated fi nancial statements. 13. A telecommunication medium that is used for transmitting and receiving moving images and sound. 15. Organizations that provide services for accessing, using, or participating in the Internet. 1 2 3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 6