International Taxation On “Digital disruption – a view from Silicon Valley” held on 23rd December, 2015
Mr. Nikunj Sanghvi gave a presentation on “Digital disruption – a view from Silicon Valley”. The presentation talked about how modern technology is fast changing the age old traditional ways in which business and personal lives are conducted. According to the speaker, digital disruption can be described as “Disruption of established intermediaries that used to capture most of the value in the value chain by automated platforms that drive benefits for participants at both ends of the value chain.”
The speaker explained how the present value chains are being turned topsy-turvy by use of technological platforms. For example, earlier, Hotels used to possess properties and brand trust; while reservations would be computerised to some extent. However, with newer business models like the one adopted by AirBnB, property is owned by the people listing on the portal. The brand trust is maintained by AirBnB by specifying the minimum requirements; and guests give reviews based on which further reservations are pulled in.
Similarly, new platforms are removing intermediaries like distributors between suppliers and customers and bringing them in direct contact with each other. The speaker provided examples of digital disruption over various business sectors:
In media: While earlier media offerings like newspapers were edited and customers had no choice in what a newspaper should carry; now all content is available free of charge online; and customers can choose what they want to read. Similarly, while earlier, distribution used to be the hardest problem, now discovery of good content is an issue.
In music and publishing industry: Music producers, publishers,etc. are affected badly because of YouTube, Sound Cloud, Online music stores, Netflix, Blogs and others. Through these applications, people are able to read and listen only to those things in which they are interested. Each song can be separately purchased; while eBooks reduce costs of publishing even allowing self-publication on blogs, etc.
In transportation: Autonomous cars and delivery drones will reduce cost of transportation and increase efficiency. Already, miners have started deploying selfdriven trucks. Drones will have many commercial applications.
In financial services: Online payment systems, Digital currency, Online Lending, P2P insurance will change the way financial services are provided.
Telemedicine, AI Doctors, etc., will revolutionise Health Care; Online education, customised study plans, etc.,willchange the traditional educational system; and IT industry will allow people to recruit from online skill listing platforms; allow work from home, etc.
The speaker also mentioned that technology can bring a lot of change in CA profession too: Software can provide basic solutions on tax matters; while data analytics tools will allow detecting patterns, duplicates, frauds, etc.
The speaker also touched upon the fear of whether Robots will take away jobs in the near future. His view was that Robots and other such technologies will make things cheaper and easier but might decrease employment. But each revolution till now has focused on improving efficiency. In his view, this change will remove the monotonous routine work and will allow people to work on higher skilled practices likes the arts, sports, spirituality, etc. He believes that there is a strong case for optimism provided those affected are provided help during the transition phase. One should welcome the new revolution and find out creative ways to earn from this revolution.
Indirect Tax Study Circle on “Service Tax Implications on Redevelopment of Housing Societies” held on 29th December, 2015
The Indirect Tax Study Circle organised its meeting to analyse implications of service tax liability on re-development of housing societies in light of recent notices being received by the industry. Advocate Shri Badrinarayan chaired the session which was led by CA. Jayesh Gogri. The study meeting was attended by more than 60 members and there was intense discussion based on legal provisions and relevant judicial pronouncements between the members present.
All issues could not be completed in the first session and hence a continuation session is being planned. Advocate Badrinarayan has extended his support and willingness to chair the second session as well.
FEMA Study Circle Meeting on “Outbound Investments – Nuances & Issues & Revised Frameworks on ECB” held on 7th January, 2016 & 21st January, 2016
The Study Circle meeting on “OUTBOUND INVESTMENT – NUANCES AND ISSUES (REVISED FRAME WORKS FOR ECB SESSION –I” was led by CA. Sagar Maru. He discussed the importance of layers in offshore structuring and linked it with the test/concept of POEM and Black Money Act. This was very interactive and the members participated actively in the discussion.
With regard to the “Revised framework for ECB”, he explained the liberalisation brought about in the ECB regulations, specifically for issuance of Rupee Denominated Bonds.
The follow up Study Circle meeting on “Revised Framework for ECB” was also led by CA .Sagar Maru. He continued on the subject and discussed the main principals relating to ECB. Important terms like all-in-cost ceiling, end use, eligible borrowers and lenders were all discussed at great length in the most interactive manner. He also shared his practical insights on the subjects and took us through various case studies.
Human Development and Technology Initiatives Committee – Full Day Workshop on “Power of Focus” held on 9th January, 2016
This workshop was conducted by Presenter Mr. Bhaavin Shah.
This workshop was about how to utilise the power of focus in daily lives, to accomplish our goals in different areas of our life and how to balance between different objectives.
The importance and difference between effectiveness and efficiency was discussed. We have to decide how we can do the right things and at the same time also be efficient.
It was also discussed how we can prioritize the different aspects of our life like Financial, Professional, Social, Personal, Physical, Spiritual and bring harmony and purpose in our life, while we grow as well as be happy all the time. The presenter taught how to overcome distractions in the way of accomplishments and retain the mindset to focus.
This workshop kept the participants interested and the proceedings were very interactive. The participation and interaction and involvement of all brought about consensus and unity to the whole group at the end of the day. There was a determination to implement the learning of the day.
Lecture Meeting on “Crowd funding, New comers IPO & SME Listing” held on 13th January, 2016
This meeting was conceived by the Corporate and Allied Laws Committee of BCAS and was jointly organized with the BSE. Mr. Neeraj Kulshrestha (Chief of Business Operations – BSE) was the Guest of Honour, Mr. Ajay Thakur (Head – BSE SME) was the keynote speaker and Mr. Mahavir Lunawat, (Founder – Pantomath Group) was the speaker for the day. Mr. Kanu Chokshi (Chairman, Corporate & Allied Laws Committee) chaired the meeting. Mr. Raman Jokhakar (President, BCAS) welcomed the participants and highlighted the relevance of the topic in view of the proposed ‘Startup India’ and ‘Standup India’ initiatives, launched by the Government of India. Mr. Kanu Chokshi briefly introduced the speakers and the topic.
Mr. Neeraj Kulshrestha opened the discussion with a brief background about the options available for raising funds in India. Mr. Ajay Thakur, the keynote speaker, enlightened the participants about the new age funding alternatives, and the role played by the BSE in facilitating SMEs. Mr. Mahavir Lunawat, the speaker, made his presentation on the nitty-gritties of current regulatory environment and the key aspects related to SME listing and crowd funding. In the ensuing interaction, the speakers gladly addressed the queries raised by the participants.
Direct Laws Study Circle on “Recent Important Income Tax Judgments” held on 15th January, 2016
The Study Circle meeting on “Recent Important Income Tax Judgments” was led by Adv. Harsh Kothari. He took the participants through recent Supreme Court and High Court judgments on various issues under different sections of the Income-tax Act. He also made special references to earlier judgments on the same issue by various courts and gave his view on what lies in store for days ahead. The Judgments selected by him covered issues revolving around section 14A, Disallowance of Interest on borrowed funds u/s. 36(1) (iii), 40(a) (ia) disallowance, Inclusion of Service Tax under gross receipts for the purpose of computing presumptive income u/s. 44BB, Conditions u/s. 72A(2)(a)(i), Expression ‘not less than 51 percent of voting power’ u/s. 79, Advance paid for the purpose of purchase of an asset towards Utilisation of capital gains u/s. 54G and many others. The participants actively participated and shared their personal experience as well.
Industrial Visit to Reliance Jamnagar Oil Refinery held on 12th January, 2016
January 12, 2016 was a very special day. Twenty six BCAS members had the opportunity to visit the world’s largest refinery at a Single Location – Reliance Jamnagar Refinery plant. After arriving at the site of the gigantic Jamnagar Refinery, the BCAS team was greeted by Team Reliance and then, the Members were served delicious breakfast.
The team was taken to the the main administrative building to a film movie highlighting the making of the Jamnagar refinery. To make it easy for all participants to understand the vastness of the refinery, they gave an analogy of each of the measures and processes. The movie highlighted the futuristic thinking of the promoters – the late Mr. Dhirubhai Ambani, the contribution of the over 1,00,000 workforce and the large size of equipments that were imported during the construction phase. The movie broadened the horizon of all the participants. After viewing the film, the team toured around the refinery area in a bus. Senior persons from the Reliance team guided the team, as they passed through each process area of the refinery. Then the team headed to Hall of Fame where numerous trophies were on display. The trophies were received from a wide range of great institutions. This instilled a feeling of pride among all the participants.
Moving to the product zone, the team saw samples of each product processed out of the refinery, namely Propylene, Naptha, Gassoline, Jet/Aviation Turbine Fuel, Sulphur, Petcock etc. Participants were fortunate to visit control room. The entire refinery is controlled from this area. The control room has earmarked the area for each unit – Fluid catalytic cracking unit (FCCU), clean fuel plant (CFP), Hydrogen manufacturing unit (HMU), Reliance tank farm (RTF ) and so on.
After visiting the marvelous, astonishing and fantastic refinery, the team visited the Green belt. This area has over 70 lakh plantations. The mango orchard, named as Dhirubhai Ambani Lakhibag Amrayee has over 1 lakh mango trees of more than 140 varieties of Mango. Drip irrigation method is applied to water all the plants and thereby conserving precious water.
After a refreshing lunch, the team was taken to the jetty. The team saw the large subsea cables and pipes connected to the jetty, to transfer crude from large crude carrier to jetty and then to the refinery.The jetty has single point mooring (SPM) and tanker berth for exporting its products.
As an individual, it is easy to reach the nearest fuel station and fill the tank with gasoline in a vehicle. But, after touring the refinery, the participants understood the quantum of efforts that goes in processing petroleum products from crude oil.
