Direct Tax Study Circle Meeting on “Analysis of Finance Bill, 2016 – Direct Tax Provisions” held on 17th March 2016
Direct Tax Study Circle meeting was held at IMC on 17th March, 2016.
The
learned speaker, CA. Gautam Nayak commenced the meeting by giving a
holistic view of the Finance Bill, 2016, presented by the Hon’ble
Finance Minister and the initial public sentiments on it. He then
analysed the provisions of the new Chapter VIII ‘Equalisation Levy’
inserted by the Bill. Giving an overview of the provisions, he mentioned
that it may not be possible for an assessee to take tax credit in
respect of this levy. Thereafter, he touched upon the new Income
Declaration Scheme, 2016 inserted vide Chapter IX. The proposed Scheme
is on similar lines of the Scheme introduced last year under ‘The Black
Money (Undisclosed Foreign Income and Assets) and Impositions of Tax
Act, 2015’. He also mentioned that the Government should bring clarity
about the Scheme by issuing simplified Rules. Later, Mr. Nayak mentioned
that the Direct Tax Dispute Scheme Resolution, 2016 is a welcome Scheme
for the assessees. He explained the types of assessees who can avail
the said Scheme. Mr. Nayak also threw light upon the important
amendments in relation to penalty proceedings and taxation of charitable
trusts. In his view, the amendments relating to taxation of charitable
trusts can have far reaching impact and may also hamper the operation of
genuine charitable trusts. Subsequently, the speaker commented upon the
amendments brought about in relation to taxation of dividend income in
the hands of the receiver and various issues relating to the same.
Mr. Nayak also answered various queries raised by the study circle attendees.
Advance FEMA Conference on 18th March 2016
Advance
FEMA Conference was held on 18th March, 2016, jointly with the Chamber
of Tax Consultants. The conference was attended by Senior RBI officials
led by RBI Executive Director, Mr B. P. Kanungo and covered the
important areas of FEMA including those dealing with ODI, FDI, PCD,
NRFAD , EPD, LRS, ECB, CEFA and Trade Transactions. There was an open
discussion where participants raised various queries which was responded
to by eminent senior RBI officials. The summary of the various
questions raised and responses/suggestions
provided is available on our website at the following link:
http://www.bcasonline.org/files1/FEMAQueries18thMarch2016Revised.pdf
International Taxation Study Group Meeting held on 28th March, 2016
Impact of Budget 2016 on Indian Economy
The
meeting was conducted on March 28, 2016 at IMC by International
Economics Study Group of BCAS. CA. Namrata Shah shared her insights of
Impact of Budget 2016 on Indian Economy.
The presentation
covered major Macro Economic Factors affecting the economy based on
Economic Survey 2015-16. The major factors that drive India’s GDP
growth, effects of inflation in the country and forex reserve movements
were discussed. Also, the economic outlook for FY 2016-17 was discussed.
The mid-term fiscal policy and factors acting as constraints in
implementing mid-term policy, like Implementing the 7th Pay Commission
award and increased public expenditure towards infrastructural
development, were discussed during the meeting.
Ms. Shah mentioned that the Budget 2016 has introduced 9 pillars of reforms for the Country. The 9 pillars are
1. Agriculture and Farmers’ Welfare
2. Rural Sector
3. Social Sector including HealthCare
4. Education, Skills & Job Creation
5. Infrastructure & Investment
6. Financial Sector Reforms
7. Governance & Ease of Doing Business
8. Fiscal Discipline
9. Tax Reforms
These
9 pillars were explained, discussed and debated. Future impact of these
9 pillars on India’s economic growth were deliberated and conversed.
This was followed by detailed discussion on 3 sectors that received major impetus during the budget
1. Infrastructure –Roads, Airport & Airlines and Housing
2. Banking & Finance
3. Power
The
presentation also highlighted the current economic state of each of the
above-mentioned sectors. Then, the Budget 2016 policies impact and
various other policies introduced by Government of India during 2015,
that has direct impact on each of the above-mentioned sectors,were
shared with the participants. This was followed by discussion on how
each of these proposed policies would impact India’s growth in FY
2016-2017 and future.
Overall, the session gave out future road map that the Government plans to achieve, if everything moves as planned.
Half Day Seminar on “Labour Laws” held on 2nd April 2016
Corporate
& Allied Laws Commitee organized a Half Day Seminar on Labour Laws
on 2nd April, 2016 jointly with The Chamber of Tax Consultants (CTC), at
BCAS, 7, Jolly Bhavan No 2, New Marine Lines, Mumbai-400020. CA Kanu
Choksi, Chairman Corporate & Allied Laws Committee of the BCAS,
inaugurated the seminar and Mr. Kamal Dhanuka, Chairman Allied Laws
Committee – CTC welcomed the speakers Mr. Ramesh Soni and Mr. Talakshi
Dharod. The following topics were taken up in the seminar:-
A) ESI, Bonus & Gratuity Act, Shop and Establishment Act
B) PF Act, Maternity Benefit Act & Sexual Harassment Act
ESI, Bonus & Gratuity Act, Shop and Establishment Act:-
The Speaker, Mr. Ramesh Soni, enlightened the participants on the key
features of ESI (Employees’ State Insurance Act 1948), Bonus &
Gratuity Act and Shop & Establishment Act. Mr. Kamal Dhanuka, also
contributed to the subject and imparted knowledge to the participants.
The major areas of the Speaker’s presentation were as under:-
ESI ACT 1948:-
Mr. Soni explained that the ESI Act, 1948 provided far reaching
benefits to the employees of Factories and Establishments, in the event
of Sickness, Disablement, Maternity and Medical Emergencies and also
Dependants’ Benefits to the dependants of such employees. He further
elaborated how the Act covers shops, hotels, restaurants, cinemas, road
motor transport undertakings and newspaper establishments covering 20 or
more employees and factories employing 10 or more persons.
BONUS & GRATUITY ACT:- Mr.
Soni deliberated on various aspects of Bonus which are very relevant to
the employee community at large. The subject highlighted the objects of
the Act i.e. sharing the prosperity of the establishment, reflected by
the profits earned by the contributions made by capital, management and
labour. He mentioned the importance of Gratuity Act that offers the
reward to the employees, against their loyalty to the organization for
more than 5 years, with 15 days salary for every completed year of
service but subject to limit of Rs. 10,00,000.00 (Rupees Ten Lakh) for
the duration of the entire service
SHOPS AND ESTABLISHMENT ACT:-
The speaker Mr. Soni also discussed about the applicability of
Maharashtra Shops and Establishment Act, 1948 to shops, commercial
establishments, residential hotels and clubs, restaurants, eating
houses, theatres and other places of public amusement or entertainment.
This Act is also applicable to Factories having total manpower less than
10 with the aid of power & less than 20 without the aid of power.
PF
Act, Maternity Benefit Act & Sexual Harassment Act:- Mr. Talakshi
Dharod, the speaker, highlighted the important characteristics of PF
Act, Maternity Benefit Act & Sexual Harassment Act to the
participants. Mr. Kamal Dhanuka also presented his view point on the
subject and interacted with the participants. The key points of
presentation were as under:-
EMPLOYEES’ PROVIDENT FUNDS &
M.P. ACT, 1952 :- Mr. Dharod elaborated that every establishment/
factory engaged in any industry, in which 20 or more persons are
employed and any Establishment which the Government may specifically
notify, are covered under the Act.
The Act is applicable to all
types of employees i.e. whether they are monthly rated, part-time
employees, daily rated or piece rated employees, casual, temporary,
permanent or contractual employees. They are all entitled to receive
interest on PF accumulation as declared by Central Government from time
to time. The Employees can also take advance from their PF contribution
to meet exigencies/emergencies.
THE MATERNITY BENEFIT ACT, 1961:-
Mr Dharod explained that this Act was brought in force to provide for
maternity benefit to women workers in certain establishments and to
regulate the employment of women workers in such establishments for
certain period before & after child birth. The Act is applicable to
all establishments except any factory or other establishment where a
provision of E.S.I. Act is applicable. It is applicable to all classes
of women whether she is permanent, temporary, casual, daily/monthly
waged, etc.
THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013:-
The
speaker Mr. Dharod also deliberated upon the salient benefits of this
Act to preserve the honour and respect of the women at workplace. The
Act came in to force w.e.f. 22nd April, 2013 with an object to protect a
woman employee against sexual harassment & the right to work with
dignity and is applicable to the whole of India. The Act covers all
classes of women employees whether part time/ full time/daily
wages/contract basis etc. and it is the duty of the employer to protect
the rights and interests of the women and provide them safe working
environment.
Overall, it was a very informative, interactive and participative seminar.
Indirect Tax Study Circle Meeting on “Analysis of Finance Bill, 2016–Indirect Tax Proposals” held on 9th April 2016
Indirect
Tax Study Circle Meeting was held at IMC on 9th April 2016 to discuss
service tax changes proposed by the Finance Bill 2016. The Meeting was
led by CA Vikram Mehta and chaired by Advocate Shailesh Sheth. An
excellent question bank was presented to the members of the Study Circle
which was discussed in detail. Advocate Shailesh Sheth took the group
through various landmark court rulings affecting the analysis of the
proposals.
The following major proposals of the bill were deliberated in the Study Circle:-
1) Whether in view of the amendments to Rule 5, a new levy could be imposed on services which had been already provided.
2)
Discussions on possible contentions that would arise in relation to the
proposed interest provisions u/s. 75 of the Finance Act, where the
reduced interest applied in cases where service tax was not collected.
The moot question was what was meant by the term “collected”?
3) Issues relating to scope of new reverse charge liability on all Government Services.
4)
Whether extended time limit to issue show cause would also apply in
cases where the existing time limit under section 73 had already lapsed,
as on date of enactment of the Bill.
5) Implications of widening of the meaning of exempt service for the purpose of Rule 6.
Lecture Meeting on “Ethical & Environmental Aspects of the Economy” held on 13th April 2016
A
lecture meeting was held on 13 April 2016, at Indian Merchants’
Chamber, Mumbai on “Ethical & Environmental aspects of the Economy”
by Mr. Satish Kumar.
Mr. Satish Kumar, is an 80 years old
activist and Nuclear Disarmament advocate. His most notable
accomplishment was peace walk from Rajghat to the four capitals of
nuclear armed countries i.e Moscow, London, Paris and Washington
covering more than 8000 miles and that too without any money in the
pocket. Late Shri Vinobha Bhave (the Champion of Bhoodan Movement) gave
him two gifts, one was to be penniless wherever they walked and the
other was to be vegetarian. Mr. Kumar has written many books including
No Destination: Autobiography of a pilgrim, Learning from a walk,
Intimate and ultimate Vinoba Bhave, Spiritual compass, three qualities
of life i.e soul, soil, society-a new trinity of our time.
In
his talk, Mr. Kumar reiterated that the whole world is one family
(Vasudhaiva Kutumbkam). Business, Industry and policy makers must focus
on ethics and take care of environment including five elements of
nature, viz. earth, water, air, energy and space. The Global warming and
natural calamities are the result of disrespect of nature and
environment. This has seriously affected this planet. The imbalance of
weather, cutting of forests and mindless exploitation, are leading to
adverse impact on environment causing disasters and devastation. He
advised to pursue spiritual practice without forsaking the regular work.
Ethics and spirituality move together. He advised that nature is a
precious capital of nation. Do your business with different motivation
taking care of the people & nature. He mentioned that all must
respect farmers and engage with soil and one must take care and ensure
that they are appropriately compensated for cultivation. As a nation, we
must focus more on gross national happiness than on Gross Domestic
Product. The lecture meeting was well attended.
Welcoming and introducing the speaker, President shared his view on the ethics and environment.
The talk is available on Web TV.
Report
on 14th Residential Retreat of Human Development & Technology
Initiatives Committee (Leadership Camp 2016) held on 14th, 15th and 16th
April 2016
The 14th Residential retreat of Human
Development and Technology Initiative was held at Moksh Resort near
Pawna Lake, Village Kadadhe, Kamshet, on 14th, 15th and 16th April 2016.
This year, topic of the retreat was `Leading and Co-creating across
Generation’, ‘Art of relationship and Influencing’. The trainers were
Mr. Kiran Gulrajani and Mr. Arjun Som.
About 11 couples, 15 individuals and 3 assistants from Trainer’s office participated. Participants learnt many
concepts including;
Meet each other in silence,
Learn to appreciate with details about special points,
Listen from the heart,
Understand the fine difference between good versus
true,
Compassion,
Engaging with detachment,
Subtle difference between true and false versus right and wrong,
Seven levels of Values at personal, organizational and global level i.e.
1. Survival
2. Relationship
3. Self Esteem
4. Transformation
5. Internal Cohesion
6. Making a difference
7. Service
Value of values as mentioned above.
The
Training venue lent a refreshing experience with green lawns, plants,
trees, beautiful natural surroundings, open space, quiet location and
warm summer afternoons. Cool and breezy evenings set perfect tone for
live music and performances by the participants. During the stay,
participants experienced joy, happiness and satisfaction.
Lecture
Meeting on “Recent Amendments to CENVAT Credit Rules & Reverse
Charge Mechanism in Service Tax” held on 19th April 2016
A
Lecture Meeting on CENVAT Credit Rules & Reverse Charge Mechanism in
Service tax – Recent Amendments was held at IMC, Mumbai on 19th April,
2016.
The
meeting was chaired by our President Mr. Raman Jokhakar who welcomed
the Honourable Guest, Mr. J. K. Mittal-Advocate. Mr. Mittal, a learned
and eminent Speaker, made a presentation on Recent Amendments to CENVAT
Credit Rules & Reverse Charge mechanism in Service Tax. He discussed
the importance and relevance of taxation rules, declared service,
taxable event, Point of Taxation and other important aspects of service
tax law and expressed his expert opinion on the subject. He also talked
about exempted, taxable and common services, cess and interest Income,
referred to the important Judgments, Circulars and Notifications and
enthralled the audience with his wit and humour, citing related examples
and case laws, to answer the questions raised by the participants. He
enlightened the attendees with Procedural Part of Full Reverse Charge
Mechanism and Partial Reverse Charge Mechanism and the impact of the
same on Service Providers and Service Receivers.
It was a very interactive and participative meeting with overwhelming response from the audience.
