Society News

Lecture Meeting addressed by CA. T. P. Ostwal on Budget 2017 and Recent Announcements on Provisions Relating to International Taxation held on 13th February, 2017 at IMC jointly with International Fiscal Association – India Branch and Chambers of Tax Consultants.

The Lecture meeting was addressed by CA. T. P. Ostwal, who gave a presentation discussing the various amendments with regards to International Taxation. This included the insertion of new section 92CE bringing in the concept of secondary adjustments to Indian Transfer Pricing regime. He further discussed on the insertion of new section 94B to introduce Thin capitalisation regime in Indian Taxation context. The meeting also covered a brief overview of various other amendments such as clarification on Indirect Transfer Provisions, changes in Taxation of “Masala Bonds”, and clarifications introduced with respect to interpretation of terms used in Tax Treaties.
The Lecture was very well received by the participants.

Human Development Study Circle Meeting to watch the DVD – Video Talk on “Thought Leadership” held on 14th February, 2017 at BCAS Conference Hall

The discussion was led by CA. Vinod Jain. He gave a small introduction before the DVD was screened. The talk was so absorbing that it was an undisturbed screening of 120 minutes.

The Lessons learnt from this video talk are discussed hereunder:

Good people have to learn to come together and work together, may be from the bad people since bad people are more organised, motivated and have better team spirits.

Though we are not born great, greatness can be achieved. One has to achieve first, self-leadership than external leadership. If you cannot lift yourself, you cannot lift others.

Speed of the train mainly depends upon the speed of the engine. Hence, business cannot grow, if the businessmen at the helm of the business do not continue to grow. In many cases, we ourselves become a bottleneck in our own organisation. Without getting ourselves right, we cannot achieve anything.

The Demand of Our Roles is growing faster than demand of us as an individual. As such one needs to continue to develop ourselves, in this fast changing world. Even method of parenting between two children need to be changed, since the way first child is successfully brought up, same method of parenting would not help in bringing up the second child. 

We should be careful about our thinking. “What you think you become” said Buddha. “Mind in itself can make a heaven of hell or a hell of heaven.” said poet John Milton. “If you think you can or think you can’t, either way you’re right.” – Henry Ford – “Whatever the mind can conceive and believe; the mind can achieve” Napoleon Hill – “God never gives us an idea, without power to achieve it”.

We should be careful about our words and should replace word “Problem” with “Challenge”.  We should drop filthy words from our vocabulary.

We should become an opportunist in thinking. Acid destroys the vessel that contains it. We should not keep bad thoughts about people in our mind. Never hold any blemish close to our eyes.

We should choose to see, what we want to see.  We should focus on the magnificence of beautiful things.

Our mind is divided in 1/8th as conscious and 7/8th as subconscious mind. Subconscious mind does not understand positive emotions and negative emotions. It understands deep emotions and shallow emotions.   Anything positive in your life, speak 5 sentences. Anything negative in your life, speak just in one sentence. Do not miss celebration of positive happening in life. The participants were interested in more such movie screenings for Study Circle Meetings.

Panel Discussion on the Finance Act, 2017 held on 20th February, 2017 at BCAS Hall, Jolly Bhavan, Churchgate

Panel Discussion on Finance Act, 2017 was held by the Taxation Committee of the BCAS at BCAS Gulmohar Hall. The event saw attendance by over 100 participants and more than 300 members viewed it live on BCAS YouTube Channel. President CA.Chetan Shah gave the opening remarks followed by introductory words from the Chairman of the Taxation Committee, CA. Ameet Patel. The distinguished panel consisted of CA. Pinakin Desai, CA. Hitesh Gajaria, CA. Deven Choksey and was moderated by CA. Ameet Patel.

–    CA. Pinakin Desai gave his views with an in-depth analysis on questions related to amendments proposed to Joint Development Agreements, Charitable Institutions, Measures to discourage cash transactions, Long term Capital Gain on non – STT paid shares and many others.
–    CA. Hitesh Gajaria gave his views with statistics on various questions related to change in rates of Income Tax, Thin Capitalisation, Secondary Adjustments and other provisions.
–    CA. Deven Choksey gave his views on the overall impact and reactions of capital markets on the budget. He also talked on the various  amendments with respect to penny stocks and FII/FPIs.

Overall, the Panel Discussion was well received and the participants benefited immensely with the expert analysis of the panel on the proposed amendments in the Finance Bill, 2017.

Budget & Economic Survey 2017 held on 22nd February, 2017 at BCAS Hall, Jolly Bhavan, Churchgate

CA. Harshad Shah and CA. Kapil Sanghvi (Jamnagar) presented finer economic aspects of Budget & Economic Survey 2017 to members at the International Economics Study Group meeting held on 22nd February, 2017.

The refreshing feature was specific commitments by government in terms of values and dates.
The Budget proposals were divided in 10 distinct themes under the overarching agenda of “Transform, Energise and Clean India” (TEC India).

Farmers: To double the income in 5 years; Credit fixed at record level of Rs. 10 lakh Cr.; Model law on contract farming, Agriculture sector is estimated to grow at 4.1% in 2016-17 as opposed to 1.2% in 2015-16; Govt. to set up mini-labs for Soil Health. Rural Population: providing employment and basic infrastructure; Mission Antyodaya to bring Rs. 1 Cr. households out of poverty by 2019, MGNREGA: Rs. 48,000 Cr., Prime Minister Gram Sadak Yojana: Rs. 19,000 Cr. (Rs.27, 000 Cr incl. State Share), PM AwasYojana: Rs. 23,000 Cr, 100% village electrification by May 2018, Rs. 1, 87,223 Cr. allocated for rural programmes (24% Higher). Youth: energising them through education, skills and jobs. Poor and the Underprivileged: strengthening the systems of social security, health care and affordable housing. Infrastructure: for efficiency, productivity and quality of life; Total allocation for infrastructure: Rs. 3.96 lakh Cr.  Financial Sector: Growth and stability through stronger institutions. Digital Economy: for speed, accountability and transparency. Public Service: effective governance and efficient service delivery through people’s participation. Prudent Fiscal Management: to ensure optimal deployment of resources and preserve fiscal stability. Tax Administration: Direct tax collection not commensurate with income/expenditure pattern of India, We are largely a tax non-compliant society.

Economic Survey 2016-2017
This year’s Survey comes in the wake of a set of tumultuous international developments – Brexit, political changes in advanced economies (Germany, France, and Netherland, Italy) – and two radical domestic policy actions: the GST and Demonetisation. Demonetisation has hit India’s growth by 0.25-0.5% of GDP. GDP growth is estimated at 6.75-7.5% next year, well below the “sweet spot” of over 8%, the rupee has strengthened by 8.3-10.4% in the last two years. India’s growth rate is set to accelerate to 8-10% in 2-5 years.Risks to Indian Economy-Oil Prices, Rising Dollar Value, Volatile Commodity Prices.

The Economic Survey brought out 8 Interesting Facts about India

(A)    India on the Move and Churning: About 9 million people, almost double what the 2011 Census suggests are migrating.

(B)    Biases in Perception: China’s credit rating was upgraded from A+ to AA- in December 2010 while India’s has remained unchanged at BBB.

(C)    Income, Health, and Fertility:

(D)    Convergence Puzzles: India does well on life expectancy, not-so-well on infant mortality rate, and strikingly well on fertility rate and India’s low level of expenditures on health (and education) have been the subject of criticism Infrastructure and Connectivity, Redirecting flows to households. Political Democracy but Fiscal Democracy? – India has 7 taxpayers for every 100 voters ranking us 13th amongst 18 of our democratic G-20 peers. Demographic India’s Soon-to-Recede Demographic Dividend. Working age to non-working age population will peak later and at a lower level than that for other countries but last longer. Demography provides potential and is not destiny.  India Trades More Than China and a Lot Within Itself. One Economic India (GST) – Why Does India Trade so Much? Divergence within India, Big Time.

(E)    The ‘Other India’: Two Analytical Narratives (Redistributive and Natural Resources) on States’ Development. (Unconditional Convergence in GDP per capita), Economic Vision for Precocious, Cleavaged India. Absenteeism, corruption, clientism and red tape dominate our system. One consequence is inefficient redistribution to the poor. Hundreds of welfare schemes fail to reach the masses.

(F)    Clothes and Shoes: Can India Reclaim Low Skill Manufacturing. Meeting the challenge of jobs may require paying attention to labour-intensive sectors such as Leather & Textiles.

(G)    Tax Potential Unexploited: Evidence from satellite data indicates that Bengaluru and Jaipur collect only between 5% to 20% of their potential property taxes.

(H)    Demonetisation: To Deify or Demonise? Demonetisation has been a radical, unprecedented step with short term costs and long term benefits and could have particularly profound impact on the real estate sector.

CA. Kapil presented Twin Balance Sheet Problems of Corporate & Banking Sectors, Fiscal Frame work and Universal Basic Income.

Panel Discussion on the Finance Bill, 2017 held on 22nd February, 2017 at HR College, Churchgate.

Discussion on Finance Bill, 2017 was held by BCAS as invited by HR College to talk to their students. The event saw attendance by over 50 students. Chairman of the Taxation Committee, CA. Ameet Patel gave the opening remarks followed by introductory words highlighting the first combined budget presented on 1st February 2017 after the merger of Railway Budget with the Union Budget. A prominence of Union Budget was in the memory of “demonetisation” efforts of the government which provides for growth in a very difficult environment.

The speakers consisted of CA. Ameet Patel, CA. Samir Kapadia (on GST & Other Indirect Taxes) and CA. Siddharth Banwat.

Proposed amendments in Union Budget – Direct taxes and Indirect taxes were covered with most of practical live examples faced by the industry. The following features and key steps initiated by the government which plugged to abuse tax provisions were discussed:

1.    Proposed amendment – Direct Taxes, broader aspects covered
–    Tax rates
–    Capital gains
–    Restrictions on cash transactions
–    Threshold limit under section 44AA – maintenance of books of account
–    Rebate under section 87A of the Act
2.    Indirect taxes – Rationalisation under GST provisions
3.    Abolition of Black money
4.    Prohibition of Benami Transactions
5.    Income disclosure scheme of 2016
6.    Demonetisation of high-value currency notes
7.    Electoral reforms
8.    High level discussion on Investment strategies and tax saving benefits
9.    Digital India
10.    Cashless economy

Various questions were posed to all the three speakers by some students.

–    CA. Ameet Patel gave his views with in-depth analysis on questions related to investment strategies and tax saving benefits.

–    CA. Samir Kapadia gave his views (on GST & Other Indirect Taxes) with statistics and practical examples or issued faced by various industries on classification of products and applicable rates of tax prior to GST. Further, benefits under GST were highlighted.

–    CA. Siddharth Banwat gave his views on the overall impact and reactions on the budget.

Overall, the Budget Discussion was well received and the students benefited immensely with the expert analysis on the proposed amendments in the Finance Bill, 2017.

Leadership Workshop on Chanakya Business Sutra held on 24th & 25th February 2017 at BCAS Hall, Jolly Bhavan, Churchgate
Human Development and Technology Innitiatives Committee organised the 15th Leadership Workshop. In contrast to the residential camps organised in earlier years this year it was a non-residential camp held at BCAS Conference Hall of the Society on Friday & Saturday, 24th and 25th February 2017. About 54 Participants registered for the leadership workshop titled ‘Chanakya Business Sutra’. Mr. Mahendra Garodiya, an avid reader of scriptures including Srimad Bhagavatam, Mahabharat, Ramayan, Bhagavad Geeta and Chanakya’s various commentaries including ArthaShashtra was the trainer. He had also inspiration influence from the life of Mahatma Gandhi, and writings of Stephen Covey, Napolean Hill, Jim Collings and Robert Kiyosaki.

President CA. Chetan Shah welcomed the participants. He described Chanakya  as a great strategist,, kingmaker, and author on the variety of subjects like Economics, Politics, Leadership, Governance, Warfare, military tactics, accounting systems etc. and appreciated his vision for Akhand Bharat, United  India.

Past President and also Past Chairman CA. Pradeep Shah complimented all participants. He motivated them to leave all worries. He also shared the information about leadership camps held in the past. He posed pertinent questions and motivated them to introspect as to what one would do if this was the last year of one’s life.

Past President and Chairman of HDTI Committee CA. Nitin Shingala shared a beautiful definition of a complete professional as the one who implements whatever he/she learns.

CA. Mihir Sheth introduced the speaker and CA. Mukesh Trivedi proposed vote of thanks.

Few of the important points discussed during the workshop were:

–    Entire workshop was based on T.I.M.E. i.e. Thinking, Inking, Mapping and Executing.

–    WHY: Ask as to why you are doing what you are doing. Is it for dharma, artha, Kama, Moksha?
    For the Growth, Life of Contribution or money or Life of Significance.

–    How do we earn money? By Employment 80%,Self Employment 10%, Business 10%. How to earn passively from Investment of your established assets like goodwill, reputation.

–    RAS: Reticular Access syndrome: Clear Cut emotional Goal in Mind.

–    Essential are skill, People, system.

–    Live the life of contribution by generating employment, opportunities etc. constantly introspect as to when you are doing something is it for contribution to the mankind, or nation, or for significance i.e. recognition ? or for personal luxuries or comforts?

–    Know your capability before you start the work.

–    Anything begins with thought or story in mind, followed by words, state, emotion, action and Result.

–    OQP: Only quality people. Always Select  quality people for the right job. The mentors should have promise, thought and action (MVK – Manah, Vachanam, and Karma ) well aligned.
–    Manage the time: Important, urgent, not important and not urgent.

–    Learn what to measure?

–    Seven important aspects of Business: Production, finance, Relationship, Star, Reference Generation and Sales.

–    Use effective communication: OFNR .e. Observation, Feelings, Needs and Request.

–    IDP: Incorporate Individual  Development plans, always maintain humility. Reward the deserving, reprimand underperformer.

All these and many other concepts were discussed interactively with many inspirational videos.

Seminar on GST held on 25th and 26th February 2017 at the Navinbhai Thakkar Auditorium, Vile Parle (E), Mumbai
                                                                                                                                   
Looking at the pace of the developments in the road map to the GST roll out by 1st July, 2017 it was imperative for all to understand the intricacies of the proposed law and its implications on trade and industries. The Indirect Taxation Committee of BCAS designed a comprehensive program spread over two days (25th and 26th February, 2017) at the Navinbhai Thakkar Auditorium.

The program witnessed excellent participation from members, trade and industry. Over 350 people attended the program. Various eminent faculties delivered their expert views on important statutory provisions contained in the model GST law including CA. Sushil Solanki, CA. Sunil Gabhawalla, CA. Parind Mehta, CA. Amitabh Khemka, CA. Rajiv Luthia, CA. Govind Goyal, CA. Udayan Choksi and CA. Jayraj Sheth.

As we draw close to the appointed day, it would be the society’s objective to disseminate maximum knowledge on this reform. In this way, we would surely contribute towards smooth transition of the proposed law which intends to create a single national market.  

Lecture Meeting on “The Road Less Travelled” under auspices of Amita memorial Trust held on 1st March 2017

The annual talk held under the auspices of Amita Memorial Trust jointly with Bombay Chartered Accountants’ Society and Chamber of Tax Consultants was held on 1st March 2017 at Walchand Hirachand Hall, IMC, Churchgate.

Her work is not only difficult but dangerous too, as there are forces which want to continue to exploit these wandering tribes. Smt. Mittal explained that even today these tribes are being treated worse than untouchables, and have no identity, no voting rights, no ration cards, no permanent houses, and no address. She is fighting to get these basic rights for these downtrodden people. The talk aroused compassion in the hearts of the listeners and a desire to join and help in this struggle to get the basic rights for the nomadic tribes.

The inspired talk ended with remembering CA. Amita (Shah) Momaya, a young member of the BCAS family, who also spread the message of Universal Love during her short but inspiring life. She left this world on January 31, 1987 but continues to spread messages of peace and purpose after 30 years of her departure.

The meeting was very useful and inspiring for the participants.

Human Development Study Circle Meeting on “Man Woman Relationships” held on 7th March, 2017 at BCAS Conference Hall

The Study Circle Meeting discussion was led by CA. Deepak Bagla on “Man and Woman relationship and their development”.

CA. Deepak Bagla has studied various scriptures like Ramayan, Mahabharat, Srimad Bhagavatam and Bhagavad Gita. He also practices Meditation for the last two decades. He likes to share his learning as a counsel. He has specialised in mentoring to cope up with challenges on relationship, parenting, employer employee relationship etc.

The story of ‘Ardhanarishvara’ as a symbol of Shiva and Shakti, Purusha and Prakriti is very inspiring, to feel two dimensions of life. Perhaps, the world would not have either been created or nurtured without Man and Woman. Physically, emotionally and genetically, both are different. Their needs, strength and weakness are different.  Men & Women complement each other and together they can create synergy.

This interactive meeting was held to discover and explore the differences between man and woman and their relationship. The topics discussed were as follows:

1)    Understand the major reasons leading to problems in man woman relationship
2)    Understand and appreciate different facets of relationship
3)    Importance of healthy relationship and its impact on children in digital age

There are differences between Man and Women  in the way of thinking, in beliefs, in style of behaviour, etc. and one should appreciate that. One must accept the differences and use each one’s talents for the benefit of the Family Health, peace, progress.

He spoke on a five point development for man and woman:
–    Purpose – in life, we need not prove ourselves and compete with each other with motive to defeat each other. Instead find each one’s purpose and support each other and give each other space.

–    Relationships – within the family, neighbours, relatives, friends, superiors is important. Value Relationships.

–    Interdependance – we are all connected within and outside the family – this needs to be understood. Men or women are not meant to be alone.
–    Dependable – We have to be dependable and responsible.

–    Empathy and exercise are very important. We need to understand others in order that others understand us. Also exercise is important for health.

The participants were very happy to be present and learn simple but unique aspects about Man-Woman relationships.

Indirect Tax Study Circle Meeting held on 8th March 2017 at BCAS Conference Hall

GST is soon to become a reality. Information technology (‘IT’) would be a one of the determining factor for making this reform a success. In view of the relevance of IT in the GST regime a brief demonstration was held by NSDL executives. Members were explained the role of GSP’s and ASP’s in the entire compliance process. The same as appreciated by the members present.

In the second half of the meeting few amendments proposed by the Finance Bill, 2017 relating to Indirect Tax was taken up for discussion.

Felicitation of President and Vice President of ICAI on 9th March 2017.
 
On 9th March 2017, it was a privilege of the BCAS to welcome and felicitate the ICAI President, Mr. Nilesh Vikamsey, also a Core Group member of BCAS. The Society also congratulates ICAI Vice-President Mr. Naveen N. D. Gupta, who could not make it for the felicitation. The President was also accompanied by Central Council Members Mr. Prafulla Chhajed and Mr. Nihar Jambusaria.

GST, the President mentioned, is a God-sent opportunity for the profession and we all should look forward as a potential area of practice.

The developments in the area of GST was discussed and suggested for some joint publication on the topic shortly.

The ICAI President stated that the government appreciated and welcomed the support extended by our professionals for the support extended in the Income Disclosure Scheme. However, post that, there has been not much visibility for the profession.

Thus, we all should collectively highlight the positive aspects of the profession to the government and the Society at large in whatever way possible.

The ICAI President shared the steps taken for drafting the new syllabus for CA students and the way the entry to the CA course will be made slightly difficult.  The course now will be made available post completion of HSC (Std XII). The CA Syllabus is revisited every 8 to 10 years.

The ICAI President suggested that Insolvency law is the upcoming new area which professionals can look as a new area of practice.

The Railways accounting, he said under the leadership of  a member of our profession Mr. Suresh Prabhu  is seeking to change the method of accounting from cash to accrual which was another potential area of practice.

The ICAI President felt that as professionals we should partner with the government in educating the people in the country thereby increasing the tax base.

The Past Presidents of BCAS and other members present welcomed all the suggestions and extended support towards the activities of ICAI.

Central Council members present assured those present that the BCAS members could write to them and seek support or any co-ordination for the benefit of the profession. The Session ended with a warm vote of thanks by CA. Manish Sampat.

The 4th Youth Residential Refresher Course held on 10th March to 12th March 2017 at Fountainhead Leadership Centre, Alibaug

The 4th YRRC was jointly organised by Bombay Chartered Accountants’ Society under the Membership and Public Relations Committee and The Institute of Chartered Accountants of India under the Youth Members Empowerment Group of CCBMP from 10th to 12th March 2017 at Fountainhead Leadership Centre, Alibaug.

“Nostalgia”, the theme of the event was to reconnect the memories from childhood and school days and the participants forged long term bonds and made more memories than they recollected at the event. The participants were grouped in four houses; Zeus, Morpheus, Electra and Poseidon, and a competition for earning points for their house and the Best House trophy began.

As every school has a uniform, this year at the YRRC all the participants turned up in their suits and ties, adding the perfect professional touch at the excellent venue and facility.

A  perfect blend of learning through technical, non-technical sessions and educative extracurricular activities, the YRRC provided a great opportunity to all the participants to polish their personality and knowledge.

The “New Youth Times”, the daily news quotient, kept the participants abreast with the happenings of the YRRC at all times.

Covering a wide range, the YRRC covered topics ranging from Ind-AS, International Tax, Direct Tax to Entrepreneurship, Leadership and even a Mock Stock Market. The speakers shared their professional journey and personal experiences with the participants. The group discussions were very productive and knowledgeable providing insights into various controversies and issues faced today. Not to forget, the chance to earn points did turn the discussions a bit intense and animated to an extent that at some places it flared up to heated arguments.
The content covered and presentations made by all the Speakers were a class apart, delivering their points and ideas with great clarity. None of the speakers returned home without a standing ovation from the enthusiastic crowd.

The participants learned about overcoming challenges individually and as a group from the extra-curricular activities like the Activity Marathon and Open MicEvents.
A true theatrical experience was created while watching the enriching movie “Chale Chalo”, a national award winning inspirational film starring Aamir Khan directed by a lawyer Satyajit Bhatkal.

Today’s youth cannot be defined without some “NachGana”, the youth showcased their talent on the DJ night and also broke the myth that CAs are only studious and boring, during a Flash Mob in middle of a session wherein the surprised speaker couldn’t help but shake a leg along with them.

House Zeus was able to lift the trophy of the best house outperforming in the group discussions, mock stock trading session and activity marathon amid the tough competition put up by the other houses.

The return journey with the ferry dancing on high waves under a full moon turned into a Pre-Holi Bash where spontaneous participants burst into a Karaoke session. An event which was truly “By the Youth, Of the Youth and For the Youth” concluded with the now enriched and happy participants bidding farewell until the next YRRC.

The event wouldn’t have been successful but for CA. Nilesh Vikamsey, President – ICAI, CA. Chetan Shah, President – BCAS, and CA. Mukesh Singh Khuswah, Chairman – CCBMP ICAI. Post the event, the advance enquiries for the next YRRC and the joyous feedback received from the speakers and their sheer experience of the wonderful novelty and energy of the event marked a beautiful end to the 4th YRRC.

The Study Circle Meeting discussion was led by Mrs. Reyna Rupani.

Reyna K. Rupani has a dream – Living a Life with no Medications. This desire got her in touch with SHARAN (Sanctuary for Health & Reconnection to Animals & Nature). She had thought she knew everything about Health until she heard Dr. Nandita Shah speak. Since it all appealed to reason and logic, she decided to give the whole plant-based diet a chance, and there has been no turning back since.

Her severe acidity issues disappeared within 3 days. She lost 17 kilos in eight months, and it has been over two years and she has only put on two kilos! She feels energetic, looks much younger and most of all she has sensed clarity in her thinking.

The whole plant-based diet is the ONLY solution to our Health problems and for the environment too. This truth is exactly what keeps her going. Avoid processed and packaged foods. Keep away from oil and milk.

Deodarants, pesticides, insecticide sprays used in the surroundings can harm our health as it makes us breathe chemicals.

The participants were very happy to be present and learn some frightening realisations on pollution of environment and how health can be improved by taking care of what you consume. We are what we eat.

Participants were glad to be aware of useful tips to improve health.

The participants had an enriching experience as the learned faculties CA. Manoj Jain, CA. Madhav Kulkarni and CA. Kartik Radia who shared their insights and experiences on the allotted topics viz. ‘Audit Planning & COSO framework’, ‘ITGC and Application controls’ and ‘IFC Evaluation & COBIT framework” based on the case study approach.

A dedicated Q&A session after every presentation gave further opportunities to participants to seek replies to their practical challenges in planning and executing assurance engagements in IT environment.