By Sunil B. Gabhawalla, Suhas Paranjpe, Hon.Jt.Secretaries
International Economic Study Group
meeting held on 17th October, 2016
The International Economic Study
Group meeting was held on 17th October, 2016 at BCAS Conference Hall
by International Taxation Committee which was addressed by the Speaker Ms.
Sharmila Ramani. She broadly discussed about the SWOT Analysis i.e. Strengths,
Weaknesses and Prospects of the Indian Economy.
Here is an overview of India’s
strengths, weaknesses and future prospects as addressed by her:-
Strengths
1. Self-sufficiency
in food: India is predominantly an agricultural country particularly with
reference to livelihood opportunities and self-sufficiency in food grains with
abundant resources.
2. Domestic
market: With India’s top companies such
as Tata Steel, L& T, JSW Steel, Grasim Industries etc. turning their
focus back to domestic market on bigger priority, India has captured a robust
growth in the Domestic Market.
3. Renewable
energy: India is ranked number one in terms of solar electricity production
per watt installed. In January 2015, the Government set a target of achieving
100 gigawatts of solar capacity by 2022.
4. Real GDP:
India is World’s 3rd largest country in terms of real GDP on
Purchasing Power Parity basis after the USA and China.
5. IT industry:
India’s IT industry is considered one of the best in the world. This is mainly
due to the availability of a large pool of highly skilled, low cost workforce
with remarkable professional acumen.
6. Science and
technology: India is among the topmost countries in the world in the field
of scientific research, positioned as one of the top five nations in the field
of space exploration. The country has regularly undertaken space missions,
including missions to the moon and famed Polar Satellite Launch Vehicle (PSLV).
7. Tourism:
India, with its diverse and fascinating history, arts, music, culture,
spiritual & social models, has a booming tourism industry attracting good
chunk of foreign exchange reserves to boost economy.
8. Defence:
India is today self-reliant in missile technology. India’s defence equipments
are the best to beat any external threat to the nation.
9. Culture:
India is a multi-ethnic, multi-lingual and multi-religious society with rich
cultural Heritage.
10. Demographic dividend: In four years, India will have the world’s
largest population of working people, about 87 crore. More the working
population, more demographic dividend and hence, economic growth of the
country.
Weaknesses
1. Corruption:
Corruption is the roadblock in the growth of any economy in the world. Amongst measures of curbing corruption and
black money, the recent success of IDS-2016 initiated by the Modi Government
would help to eradicate corruption to a large extent.
2. Poverty: Adequate measures are being
taken by the Government to uproot poverty to achieve better per capita income
thereby reducing the gap between rich and the poor. However, still a lot needs
to be done on the ground in this direction.
3. Illiteracy: A higher literacy rate is an essential
requirement for any nation to bring it at par on a global platform with other
nations. Indian Government is taking concrete steps to eliminate illiteracy, to
put India on the world map from developing to developed country.
4. Healthcare issues: In order to have healthy,
economically self-sufficient citizens, healthcare is essential right from
birth. Healthier the masses, stronger the working class contributing to the
nation building. Government has allocated adequate budget for this sector.
5. Female
infanticide: Indian women contribute about 17% to India’s GDP today.
Stringent laws are a must to stop female infanticide. They can contribute more
significantly if they are allowed the freedom to grow and exploit their true
potential.
India’s
prospects
A developed country offers its
citizens 3 key conveniences:
1) A better life in
terms of infrastructure – food, water, healthcare, roads, amenities, etc.
2) Better job/business
prospects
3) Good education
India has the potential to achieve
all the three basic necessities for resilient economic growth.
The participants enormously
benefitted from the Study Group Meeting.
Seminar Committee of Bombay
Chartered Accountants Society (BCAS) had organised jointly with Ahmedabad
Chartered Accountants Association (ACAA) a two days’ Seminar on 21st and
22nd October, 2016 at Hotel Kohinoor Continental, Andheri.
From Ahmedabad 30 members, and 20
local members attended this seminar. The basic purpose of this seminar was, to
have Interactive Sessions on the various subjects and to provide networking
platform to the members from both the cities.
Day 1
|
CA. Chetan Shah (President)
|
CA. Raju Shah (President ACAA)
|
CA. Chetan Shah President of BCAS,
welcomed the members and highlighted the details of the Seminar. He also
briefed the participants about various activities conducted by BCAS. CA. Raju
Shah, President of ACAA, also welcomed the members and appreciated BCAS for
conducting such Seminar in the interest of the members. The seminar was
inaugurated by CA. Pinakin Desai, Past President of BCAS. He focused on the
need to unlearn old things and to learn /relearn new things with latest
technology. CAs today are required to face new challenges and continuous changes
throughout their career. He touched upon some decisions of the Supreme Court to
convey the importance of learning. He took an overview of the subjects which
were subsequently dealt with in this two days’ seminar.
L
to R – CA. Sonalee Godbole (Speaker), CA .Rajeev Shah and CA. Anil Sathe
The first paper was presented by CA.
Sonalee Godbole on the subject of “Penalties under Income Tax Actâ€. She dealt
with latest penal provisions u/s. 270A and 270AA. She highlighted problems in interpretation
and implementation of these sections. CA. Anil Sathe, Past President of BCAS
who chaired the session, concluded with his observations, giving a masterly
touch to the issues.
L
to R – CA. Anil Sathe, CA. Chetan Shah (President BCAS), CA. Raju Shah (President
ACAA), CA. Pinakin Desai, CA. Mayur Desai and CA .Uday Sathaye
In the second session CA. Mayur
Nayak, Past President of BCAS, presented a paper titled “How to read DTAAâ€.
Some fundamental concepts and important phrases under DTAA were very ably
explained by him. This session was chaired by CA. Gautam Nayak, Past President of BCAS who
supplemented his thoughts and experience on the subject matter.
L
to R – CA. Mayur Nayak (Speaker), CA. Mukesh Khandwala and
CA. Gautam Nayak
In
third session for the day, CA. Vishal Gada analysed various Provisions of
Taxation related to NRIs with practical examples and controversies therein. He
dealt with important case laws and propositions by the judicial forums. This
session was chaired by CA. Ameet Patel, Past President of BCAS highlighting
some important provisions under NRI Taxation.
L to R – CA.
Vishal Gada (Speaker), CA. Narayan Pasari (Vice President, BCAS)
and CA. Ameet Patel
Day 2
CA. Bhadresh Doshi presented his
paper on “Capital Gains relating to Real Estateâ€. He covered important
exemptions under various sections. Readymade compilation of case laws as
provided by him was very much appreciated by the participants. CA. Dilip
Lakhani, Past President of BCAS chaired this session and concluded with his
views based on his vast experience on the subject.
L
to R – CA. Kunal Shah, CA. Dilip Lakhani and CA. Bhadresh Doshi (Speaker)
In the second session, CA. Mandar
Telang presented a paper on “Transitional Provisions in GSTâ€. He explained the
entire gamut of transitional provisions and very nicely explained the
difference between existing provisions of law and GST. CA. Govind Goyal, Past
President of BCAS who chaired this session, concluded the session and
summarised many important aspects of GST, highlighting transitional provisions.
L
to R- CA. Mandar Telang (Speaker), CA. Bharatkumar Oza and CA. Govind Goyal
In the last session
of this seminar,
Adv. Sunil Lala dealt with Sixteen Recent Judicial Pronouncements
covering
International Taxation, Transfer Pricing Laws and Domestic Taxation. He
explained certain provisions laid down by Judicial Forums. This session
was
chaired and concluded by CA. Kishor Karia, Past President of BCAS. He
complemented Adv. Sunil Lala for his command over the subject and also
presented
the concluding remarks.
|
CA.
Uday Sathaye,
Chairman,Seminar
Committee.
|
L to R
– Advocate Sunil Lala (Speaker), CA. Kishor Karia and CA. Ajit Shah
|
Chairman, Seminar Committee of BCAS,
CA. Uday Sathaye thanked the participants and office bearers of both the
associations, Chairmen and paper writers of all the Sessions for their
contribution in making this Seminar a success.
Participants
of Two Days’ Seminar Jointly with Ahmedabad Chartered Accountants Association
Overall, this two days’ seminar was
very successful and particularly with limited number of participants from
Mumbai and Ahmedabad, interaction with the paper writers as well as chairmen of
respective sessions provided extra benefit to the participants.
Company Law, Accounting &
Auditing Study Circle Meeting held on 25th October 2016.
The first Company Law, Accounting
& Auditing Study Circle meeting, as
a part of a series of study circle meetings on Ind AS was held on 25th
October, 2016 at BCAS Conference Hall. During the meeting, Group Leader
CA. Anand Bathiya covered the topics (i)
Ind AS 16 – Property Plant & Equipment, (ii) Ind AS 38 – Intangible Assets
and (iii) Ind AS 40 – Investment Property.
Mr. Bathiya shared his insights on
the subject with the participants and explained the various concepts of
recognition, measurement, presentation and disclosure. He highlighted the
issues concerning valuation models, depreciation based on useful life of the
asset and estimated residual value and key GAAP differences. He also touched
upon effects of preparation of opening Balance Sheet under Ind AS and gave
practical examples of how these standards are being interpreted and implemented
by various companies in India and how it has impacted their financials.
The session was highly interactive
and all the participants benefitted immensely by the vast knowledge and experience
shared by the group leader.
“ITF Study Circleâ€
held on 7th November, 2016
The International Taxation Committee
of BCAS organised “ITF Study Circle†meeting on “Transfer Pricing – Practical
Issuesâ€, on 7th November, 2016 at BCAS Conference Hall addressed by
CA. Darshak Shah. Mr. Shah discussed about the meaning, importance and its
relevance for the professionals at large.
CA. Darshak Shah explained that as
30th November, 2016 is the upcoming due date of the Income-tax Act
for Transfer Pricing Auditable assessees in order to file their Return of
Income, it was a great initiative to have a discussion on the latest practical
difficulties faced by Chartered Accountants in Transfer Pricing.
CA. Darshak Shah, led the discussion
where he elaborately explained the latest Case Laws and Citations regarding
Deemed Associates, International Transactions. There was a detailed discussion
on 5 case studies giving different scenarios where cross holding, and indirect
participation and control of various inter related enterprises was tested for
understanding if they were falling under Associated Enterprises concept.
The participants also deliberated as
to how assessment of Transfer Pricing is a big challenge. The meeting was very
interactive and enlightening for the attendees.
“Direct Tax Laws Study
Circle†held on 9th November,2016
A “Direct Tax Laws Study Circleâ€
meeting was held on 9th November, 2016 at BCAS Conference Hall.
The Group leader, CA. Kiran Gala
under the guidance of the Chairperson, CA. Saroj Maniar explained the purpose
behind introduction of Ind AS by the Ministry of Corporate Affairs and the
timeline set out for its phased implementation by various corporate entities.
Mr. Gala pointed out the key
conceptual differences between Ind AS
and the existing Accounting
Standards and explained the adjustments to be made on account of the adoption
of Ind AS which would be either accounted as ‘Other Comprehensive Income (OCI)’
in the Profit & Loss statement or as ‘Retained Earnings’ in the Balance
Sheet. He also discussed as to whether MAT tax would apply to Net profits
either including or excluding OCI and the suggestions made by the Lohia
Committee Report in this context. Further, the Group leader pointed out to
various notional incomes / expenses such as guarantee commission, loan
processing charges etc to be recorded in P & L on account of adoption of
Ind AS and the resulting tax implications.
Thereafter, several case studies
relating to peculiar adjustments to be made owing to Ind AS such as
retrospective restatements of financial statements, revaluation of plant &
machinery, reclassification of financial instruments, interest free loan to
subsidiary, embedded lease and the consequent tax implications were discussed
at length.
“FEMA Study Circleâ€
meeting held on 10th November,2016
FEMA Study Circle Meeting was held
on 10th November, 2016 at BCAS Conference Hall, on the topic of
“Foreign Direct Investment in India – Issues in selected sectors and Indirect
Foreign Investment Rules.†where CA. Rutvik Sanghvi & CA. Naziya Siddiqui
led the discussion. The session was chaired by CA. Naresh Ajwani and the
audience benefited from his rich experience on the subject.
With India gaining popularity among
other countries as a preferred destination for Investment, this topic is of
immense importance for FEMA practitioners and the learned speakers exceeded the
expectations with their in depth analysis on the subject.
Important aspects of FDI, practical
cases, important sectors, FDI in LLP etc. were covered in this session.
There is a lot more to come like FDI in the Trading segment and E-Commerce and
hence the speakers and members present unanimously agreed to hold another
session on the subject. The members appreciated the hard work put in by the
learned speakers.
Lecture Meeting Transfer Pricing –
Recent Developments and Controversies held on 11th November 2016
International Taxation Committee of
BCAS organised a lecture meeting on Transfer Pricing-Recent Developments and
Controversies on 11th November, 2016 at BCAS Conference Hall.
Speaker CA Waman Kale discussed the following topics related to Transfer
Pricing in detail:
CA.
Waman Kale (Speaker)
1) Latest
developments as per the Finance Act 2016:- Under this topic, CbCR – part of
TP documentation & reporting, CbCR reporting, Advance Pricing Agreements
(APAs) in India – Experiences to Date, Stringent Penalties prescribed, other
Penalty provisions and other TP proposals were discussed.
2) Safe Harbour
Rules:- Under Safe Harbour Rules, the Speaker explained Rule 10 TA
to 10 TG
Safe Harbour Rules, Safe Harbour Margins, Safe Harbour
Rules-Experiences, Action Plans, CbCR Requirements, Masterfile
Requirements,
Local File Requirements etc.
3) Base Erosion
Profit Shifting (BEPS) TP Updates:- He also deliberated Action
Plans-8-10-Intangibles, Action Plans-8-10 Intra Group Services, Action
Plan-13-TP Documentation, CbCR Requirements, Master File Requirements,
Local
File Requirements etc.
4) Advance Pricing
Agreements (APAs) in India – Experiences to Date:-Under this topic, APA
Program in India – Salient Features, APA as an option, Experience with APA
Authorities, Status of APAs etc were deliberated.
5) Challenges and
Acceptability of a FAR:– Mr Waman described the Issues and Challenges
involved in a FAR i.e. Bedrock of a TP analysis, Rights and Obligations – Contractual vs
Actual Conduct, Financial capacity to undertake risks, Impact of BEPS etc.
6) Recent Important
Decisions on Market Intangibles (AMP Expenses) :- Under important
decisions, Market Intangibles (AMP Expenses), AMP Expenses-Litigation Updates
and Corporate Guarantees etc. were discussed.
The meeting was interactive and the
participants benefitted from the rich experience of the Speaker.
Full Day Workshop on
Writing and Drafting Skills†held on 12th November 2016 at
Aurangabad.
BCAS jointly with Aurangabad Branch,
WIRC of ICAI arranged a full day workshop on “Writing and Drafting
Skills”. The event was conducted at ICAI Bhavan, Aurangabad.
The workshop was inaugurated at the
hands of Chairperson, Aurangabad Branch CA. Renuka Deshpande with lightening of
lamp and her opening remarks.
Past Presidents of BCAS, Shri Anil
Sathe and Shri Raman Jokhakar were the speakers. Shri Raman made his
presentation on “Fundamentals of Professional Writing and Communication Skills,
Key considerations in drafting of various Deeds and Documentsâ€. His
presentation was followed by test questions at each level.
Shri Anil Sathe presented his paper
on the subject of “Drafting in Tax Litigation-Submission to Tax Authorities,
Appeals and Opinionsâ€. He answered the
questions raised by the participants.
Both the sessions were interactive
with participation from the members.
Indirect Study Circle
Meeting held on 15th November 2016.
A Study Circle Meeting to discuss
draft GST rules was held on 15th
November 2016 at BCAS Conference Hall. Rules relating to Returns and
Registration were discussed. CA. Yash Parmar lead the study group and CA. Ashit
Shah mentored the session. At the outset Mr. Yash presented the group with a
list of various returns that need to be filed in the GST regime. He also
described the entire process flow of return filing. The group had an interactive
session and discussed various issues like treatment of turnover discounts,
correction of TIN errors in GSTR forms, importance of punching details
exempted, tax free and other non-GST revenues in the GSTR, treatment of
advances, tax on URD purchases and other important aspects relating to the
process of return filing. At end the group discussed the process of migration
to GST as per the draft registration rules.
Company Law,
Accounting & Auditing Study Circle held on 16th November 2016
The second Study Circle meeting on
Ind-AS was held on 16th October, 2016 at BCAS Conference Hall. The
meeting was addressed by CA. Sanjay Chauhan. He led discussions on Ind AS 21 –
The Effects of Changes in Foreign Exchange Rates, Ind AS 23 – Borrowing Costs
and Ind AS 17 – Leases (Along with effects on Preparation of Ind AS Opening
Balance Sheet).
CA. Sanjay Chauhan explained various
new concepts in these Ind ASs and their comparison with present Accounting
Standards. He covered various important elements of these IndASs with the
practical examples and Case Studies. He also discussed the impact of first time
adoption of these standards and covered Ind AS Transition Facilitation Group
(ITFG) Bulletin issued by the Institute of Chartered Accountants of India on
the subjects. The members deliberated on
various issues on implementation of these standards.
Experts Chat @BCAS on
“Issues and Impact of Demonetisation†held on 18th November 2016
An expert discussion on Issues and
impact of Demonetisation was held at BCAS Conference Hall on 18th November,
2016. The event saw an encouraging participation through attendance as well as
through the Live streaming. President CA. Chetan Shah gave the opening remarks
and welcomed the Panel.
The experts on the Panel were :
(i) Mrs. Sucheta Dalal
– Founder-Trustee of Moneylife Foundation and Managing Editor of Moneylife
magazine.
(ii) Mr. Dharmakirti Joshi – Chief Economist at CRISIL
Limited.
(iii) Mr. Ameet Patel–Past President and Chairman of
Taxation Committee of the BCAS.
L to R – Mr. Dharmakirti Joshi, CA
Ameet Patel and Mrs. Sucheta Dalal
The Panel which was moderated by CA.
Ameet Patel deliberated intensely on the
Notification by the Government which was brought to give effect to
Demonetisation.
The Panel touched upon various
facets of Demonetisation such as intention of the Government for taking the
step, practical challenges being faced by the citizens, the likely impact on
the Indian economy, taxation implications of persons depositing the old
currency in their bank accounts as well as various dos and don’ts that can make
life simpler in times to come.
The
discussion was very informative and clarified lot of myths surrounding the
issue. The speakers answered a lot of queries that were received from the
participants. The participants benefitted immensely with the interactive
sessions and detailed discussions.
