Society News

The Chairman, Shri Natwar Thakrar provided his valuable insights on various unresolved issues, controversies and various important notifications/circulars of the Income Tax department. The Chairman elaborated on the concept of shareholder’s activities and duplicative services.

The participants benefited immensely from the interaction and experiences shared by the speaker and the chairman.

Klaus Vogel Study Circle held on 5th August 2015

A meeting of the Group was held on August 5, 2015 to discuss the newly released FAQ on Liberalized Remittance Scheme by RBI. The two Group Leaders were: – CA. Dhishat B. Mehta & CA. Gaurang V. Gandhi. There was interaction amongst the group with regard to most of the FAQs.

Students Study Circle on “Overview of Goods & Services Tax” held on 7th August 2015

The Students Forum of the Society organised a study circle on the topic “Overview of Goods & Service Tax” at the Society’s Office.

The study circle was led by student speaker Shri Sagar Desai under the guidance of the Jt. Secretary of the society and renowned speaker on Indirect Taxation matters, Shri Sunil Gabhawalla.

The motive of organising this study circle was to make the future chartered accountants proactive and aware of the biggest tax reform in the history of Independent India – Goods & Service Tax. The study circle was well attended by 35 students. It was a great learning experience for the student members.

The chairman of the session Shri Sunil Gabhawalla made the session interesting, with his deep knowledge on the subject. The speaker Shri Sagar Desai covered the topic and gave an insight into the proposed tax structure and its benefits to the economy. The roadblocks towards the implementation of Goods & Services Tax were also discussed.

The convenor of the Students Study Circle Shri Viren Doshi encouraged students to participate actively in the activities of the Students Forum and come forward to lead study circles.

Intensive Workshop on “Internal Financial Control” held on 7th and 8th August 2015

In keeping with its title, this was an intensive workshop, covering various components of an Internal Financial Control like Control Environment, Risk Assessment, Control Activities, Information and Communications and Monitoring. A workshop well designed keeping in mind the requirements of the Companies Act, 2013 from the perspective of management compliance and Auditors’ certifications
requirements. The Speaker Ms.Preeti Dani shared her knowledge and
experience over a period of 2 full days, in a most lucid manner. Every
topic was well covered and explained to the participants by way of case
studies and examples well designed to understand the complexities of the
subject.

The workshop held at the Palladium Hotel, Mumbai on August 7th and 8th,
2015, was attended by more than 60 participants from various Industries
and Practice arena and from various locations spread across India. The
speaker covered topics like General Computer controls, Entity level
controls, walkthroughs and testing methodology, sampling, Materiality,
Financial Statement Assertions reporting on internal controls, etc. in
detail. The interactions between the participant and speaker were
commendable and considering the positive feedback received, the Society
has organised a similar workshop in Chennai.

19th International Tax & Finance Conference, 2015 held on 14th to 17th August 2015
The
19th Residential International Tax & Finance Conference organised
by the International Taxation Committee from 14th August, 2015 to 17th
August, 2015 at Aamby Valley, received an overwhelming response from
members, with a record enrolment of 262 participants. The delegates were
from over 20 Indian cities as well as from out of India.

The Keynote Address at the Conference was given by Shri Sunandan
Chaudhari, Senior Economist with ICICI Bank, who addressed the
participants on the recent global events (including the Greek crisis and
Chinese slowdown and devaluation) and their impact on the Indian
economy. His address was laced with informative data charts, analytical
insights and insights about future movement of currency. He held the
participants spellbound for more than an hour.

The papers for group discussion were as under:

1. OVERSEAS FUNDS – TA X AND REGULATORY ASPECTS by Shri Bhavin Shah. He dealt with issues relating to taxation of overseas funds and structures for inbound investment by such funds. He also highlighted issues in respect of capital gains on indirect transfers, treaty residence, GAAR, etc. He also provided insights into normal structures of overseas funds.

2. STRUCTURING OF EPC CONTRACTS – TA X & OTHER ISSUES by Shri H. Padamchand Khincha. He highlighted and exhaustively analysed the controversies and issues relating to taxation of various types of EPC contracts, including splitting up of such contracts, treatment of joint ventures, accrual and classification of income from such contracts.

3. EXPATRIATE S – TAX AND REGULATORY ASPECTS by Shri Nikhil Bhatia. He analysed the various issues relating to taxation of expatriates, including determination of residential status, deductibility of social security contributions, and treatment of tax equalisation, and also discussed other provisions affecting expatriates, such as provident fund contribution, etc. This was supplemented by various Case Studies involving issues such as transfers, tax efficient method for such transfers, Indian Exchange Control Regulations, Tax Credits, etc.

4. PLACE OF EFFECTIVE MANAGEMENT (POEM) by Shri Pinakin Desai, who analysed the meaning of the newly introduced term in the Indian context. He discussed the international perspective and earlier case laws on control and management, and the various factual aspects which would assist in determination of the POEM.

The group discussions were lively, with active participation of the group members.

The Papers for Presentation were:

BASE EROSION AND PROFIT SHIFTING (BEPS) – RECENT DEVELOPMENTS by Shri T. P. Ostwal, who covered issues relating to recent developments internationally, and at the OECD. He explained the progress on each of the 15 action points under the BEPS initiative, and the expected timelines within which further actions were to be taken.

ISSUES UNDER THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015 by Shri Gautam Doshi, who dealt with various issues under this new Act, including issues relating to disclosures under the 3 month window, as well as in respect of valuation under the rules and the FAQs.

The participants benefited immensely from the knowledge and experience shared by the eminent faculty, from the group discussions and from informal interactions. The overall ambience and comfortable stay at the venue was also appreciated by all the participants.

Company Law, Accounting and Auditing Study Circle series on Indian Accounting Standard (IND-AS)

The Company Law, Accounting and Auditing Study Circle announced a series of Study Circle meetings on IND-AS to be held on 20th August, 2015, 7th October, 2015, 15th October, 2015 and 19th October, 2015. After notification of Companies (Indian Accounting Standards) Rules, 2015 comprising of IFRS converged IND-ASs by the Ministry of Corporate Affairs, there is a certainty on implementation of IND-AS. The objective of the series is to understand, discuss and deliberate each IND-AS in detail and understand the process of implementation of IND-AS. The series is organised in such a manner that each IND-AS will be dealt with separately.

The first meeting of this series was held on 20th August, 2015 and the discussion was led by CA. Anand Banka. The following topics were covered in this meeting:

(I)    Overview of IND-AS and roadmap to conversion; and

(II)    Presentation of Financial Statements

CA. Anand Banka briefed the members about the background of IND-AS and took the members through the process of formulation of IFRS and IND-AS. He also discussed about the applicability of IND-AS to various companies. In the second part of the session, he explained IND-AS 1 on “Presentation of Financial Statements” in detail. He discussed various issues including initial implementation and conversion of financial statement and preparation of opening Balance Sheet. The members discussed and deliberated on various issues in a lively interactive session. The members appreciated the initiatives taken by BCAS for organising series on IND-AS.

Interactive Presentation for CA Students: “Success in CA Exams” held on 21st August 2015

Human Development and Technology Initiative Committee of our Society jointly with WICASA of The Institute of Chartered Accountants’ of India had organised the second interactive presentation for the benefit of CA students covering the subject: Success in CA exams.

In the welcome address, the President complimented the students sharing many anecdotes of converting challenges into success. The most remarkable and memorable moment of the programme was when young Mahesh Londhe who recently passed his CA Final exam in his first attempt, braving the most challenging economic and social background was felicitated by Shri Narayan Varma and the President of the Society. All those present in the audience including the students and Mahesh’s parents and relatives were deeply moved by his acceptance speech. His message was loud and clear: Dream big, do not allow your dream to die down by challenges in life. Be grateful to all who contribute to achieve our dream and make us worthy human beings.

In the presentation, both the speakers, Shri Atul Bheda and Shri Mayur Nayak discussed at length, important points and issues which would help students while preparing and appearing for the CA Exams.

In the 1st Session, Shri Atul Bheda advised students to study regularly, with confidence, positivity, discipline and consistency. He emphasised on Focusing, the conceptual clarity in each subject, and judicious use of time . His success mantra was “Study the subjects thoroughly and avoid selective way of study”. He advised to refer to the study material, revision test papers, practical manuals published by the ICAI and regular visit of the website: http://www.icai.org to download reference material freely available on it compiled by the Board of Studies of the ICAI. He further said that students must appreciate that the dates of exams are fixed and are well known from the beginning. These exams are conducted with the highest standard of controls, confidentiality and quality in checking of papers. All precautions are taken to avoid any unforeseen situations.

In the second session, Shri Mayur Nayak shared his experiences. He touched upon all important topic of self-improvement. He explained that for success three important elements are Knowledge, Skill and Attitude. i.e. knowledge of the subject. Improving writing and memorising skill. Developing the analytical mind, and keeping

positive attitude even in the most challenging undesirable situation. He presented many motivating stories of illustrious personalities. He emphasised that the key to success is maintaining physical, mental, emotional fitness in all situation. In the end, he conducted a guided meditation.

The Study Circle Meeting on “Service Tax Investigation and Audit” on 22nd August, 2015 at Direct-I-Plex, Andheri (E)

The Indirect Tax Laws Study circle jointly with the Suburban Study Circle had organised a study circle meeting on the Service Tax Investigations and Audit (with special reference to a recent CBEC circular 185/4/2015 ST Dt. 30/06/2015).

The speaker, Shri Gaurav Sarda explained the provisions of the preliminary scrutiny and the detailed manual scrutiny of the Service Tax Returns Form ST-3. He mentioned that the detailed scrutiny will cover the taxability, valuation, reconciliation, classification, Cenvat credit and other similar aspects of the returns.

He also elaborated on the issues to be considered while providing information on the said areas. The criteria for selection, procedure for scrutiny and formats in which the data is to be prepared for submission was also discussed. The speaker also shared his experience of working as a part of the tax department’s audit team.

The Chairman Shri Sunil Gabhawalla provided his valuable insights on the limited scope of the new provisions of manual scrutiny especially in the light of other existing audit and investigation procedures. He advised members to be careful while replying to the notices and avoid going into details which the department can otherwise derive out of its own databases.

47 participants attended the study circle meeting and gained immensely from the details and experiences shared by the speaker and the chairman.

Lecture Meeting on “Food Smart Cities, Leading a Transition to Health, Sustainability and Fairness” held on 28th Aug 2015 at IMC by Speaker Dr. Vandana Shiva.

President Raman Jokhakar welcomed the speaker, Dr. Vandana Shiva who has dedicated over 30 years in protecting the Indian biodiversity from Corporate Biopiracy including the fight to revoke international patents on our Neem, Basmati and Wheat. Dr Shiva is world renowned for her work in dealing with mindless corporate led globalisation that is causing irreversible social, ecological and economic damage. This lecture meeting was under the auspices of Dilip Dalal Oration Fund.

Dr. Shiva commenced her speech with a brief background about how and why around more than 3 lakh farmers committed suicide since 1995. She went ahead to explain that a farmer actually earns only 1/10th of the Minimum Legal Wage in India compared to other vocations. The plight of our Annadattas today as articulated by her was alarming.

This she mentioned was just the beginning of the entire process. We are what we eat and it is this food that is so contaminated with pesticide that it has led to so many diseases. There is an epidemic of diseases related to our lifestyle and food such as diabetes, cancer, hypertension, infertility and heart attacks. India, she added, has emerged as the epicentre of Diabetes. Cancer has seen a 30% increase in the last 5 years with 180 million people affected in India alone.

To eliminate these problems, she took the audience to a solution within our own reach. The feasible way around getting and leading an organic life away from pesticides, benefitting both the annadattas and the consumers of food supplies.

Dr Shiva suggested the concept of ‘eat fresh, eat local’. She mentioned that eating local food and creating a sustainable and healthy FOODSHED for our city meant reducing food miles and toxics in the food chain. Eating local means relating directly to our farmers and helping them shift to an agriculture that allows them to grow biodiverse, safe, healthy food that we all can have access to.

The lecture concluded with the Smart Cities concept which talked about eat fair and eat healthy. This, Dr. Shiva mentions, can be done by eating local food grown in your own garden. This can be started by concepts of smart cities, she mentioned. This can be done by forming a group of citizens and placing bulk orders from organic farms at Navdanya and starting Anna Swaraj Circles. This could lead to profits passing to the one who grows and not to the reseller which is resulting in deaths and deprivation of Indian Farmers.

Towards the end of the session, the enthralled audience raised several questions, asking for practical tips. The talk concluded with a vote of thanks and a round of applause. This talk is available on You Tube channel of the BCAS which can be viewed freely – https://www.youtube.com/ watch?v=8UCeGV-19MU

Half-Day Seminar on “Foreign Contribution Regulation Act, 2010” on Friday, 4th September 2015

The FCRA 2010 has done away with the Concept of ‘permanent’ registration, restricting the validity of registration to five years. The validity of registration of NPOs under the previous FCRA is valid upto 30th April 2016, subject to renewal. Such application for renewal is required to be submitted at least six months prior to the date of expiry of the validity period, i.e. before 31st October, 2015.

To understand the nitty-gritty of the FCRA and recent developments, the Corporate & Allied Laws Committee of the Society organised this half – day seminar at the office of BCAS.

Shri Chetan Shah, Vice-President of the Society welcomed the audience. Mr. Kanu S. Chokshi, Chairman of the Corporate & Allied Laws Committee of the Society briefly introduced the subject matter and the Speaker of the Seminar.

The Speaker, Mr. Noshir Dadrawala explained the procedure for registration/ renewal of registration and other compliances under FCRA 2010. He also enlightened the participants about the proposed amendments to the FCRA rules whereby the entire process of registration, renewal, applications, filings etc. is proposed to be online, with no

requirement to send the hard copies of the documents to the Ministry of Home Affairs, Delhi. The Seminar was ended with a question & answer session where the learned and experienced speaker satisfactorily addressed the queries of the participants.

The Seminar received overwhelming response. Out of the 104 participants,69 participants were non-members; and 13 were outstation participants. Presentation of the speaker on the subject was provided to the participants.

The Seminar was coordinated by Ms. Preeti Oza and Shri Manish Sampat.

Intensive Workshop on “Internal Financial Control”– Chennai held on 4th and 5th September 2015

A workshop, as it mentions, was an intensive workshop, covering various components of an Internal Financial Control like Control Environment, Risk Assessment, Control Activities, Information and Communications and Monitoring. A workshop well designed keeping in mind the requirements of the New Companies Act, 2013 from the perspective of management compliance and Auditors’ certifications requirements. The program was inaugurated by Padmashri T. N. Manoharan and then Speaker Ms. Preeti Dani shared her knowledge and experience over a period of 2 full days, in the most practical manner. Every topic was well covered and explained to the participants by way of practical case studies and examples well designed to understand the complexities of the Internal Financial control in a simplest way.

The workshop held at the Le Meridian Hotel, Chennai on September 4th and 5th, 2015, was attended by 63 participants from various Industries and Practice arena and from various locations spread across South India. Speaker Ms. Preeti Dani, covered topics like General Computer controls, Entity level controls, walkthroughs and testing methodology, sampling, Materiality, Financial Statement Assertions reporting on internal controls, etc in detail. The interactions between the participant and speaker were commendable and considering the positive feedback received, the future plans for similar workshops in various other cities have already been kicked off.

Lecture Meeting on “Tax & Structuring- The Big Picture” held on 16th September 2015 at IMC by Speaker CA. Ketan Dalal

President Raman Jokhakar introduced Shri Ketan Dalal the speaker for the evening as one having immense knowledge on tax and tax planning aspects. He further added that the discussion will evolve around the speaker’s experiences and thoughts that would stand as a guide for all while advising our clients.

Shri Ketan Dalal started his presentation with his thoughts on addressing the bigger picture which our clients want to see in today’s complex business scenario and increasingly complex tax regulatory scenario. While as tax and legal professionals we all get more and more specialised in our field of expertise and as a fall out, we fail to see the fact that clients are expecting us to understand the business dynamics and expect us to give a holistic advice covering various aspects and not only restrict to tax so that the client can take an informed decision.

It is imperative    for us    professionals to know the regulator’s point of view. Otherwise, there are risks and reputational issues involved. He demonstrated his view with examples of Hero Honda and Maruti’s case. Shri Ketan Dalal mentioned that the client looks at us as a business advisor and not only as a tax advisor. The role of advisors need to undergo a change beyond the technical advice on any issue.

Shri Ketan Dalal concluded his presentation by throwing light on aspects of Transfer Pricing and the complexities involved in Put and Call Options. What the client wants and what the regulators expect from us, both are to be kept in mind while providing the complete picture to the client. Treacherous landscape needs to be recognised while advising on transactions and it’s often better to flag issues at least, even if not within scope. The speaker finally completed his session with an interactive discussion with the audience. The audience asked very practical questions and the speaker very well addressed them.

Finally, Shri Ketan Dalal concluded his session by stating that a holistic view is required in an increasingly specialised world.The session ended with a formal vote of thanks.