2016JANUARY

Pune VOL - V - Issue No. 1

Silence is the strong fence around wisdom, if your foot slips, you can re-gain your balance, but If your tongue slips, you can never re-build your image again.

2News Letter Pune Branch of WIRC of ICAI/January 2016

CA. Preeti Kulkarni, Speaker - Seminar On �reward Scheme And

Deemed Export Benefits Under Foreign Trade Policy�INTER-FIRM ONE ACT PLAY COMPETITION

SEMINAR ON VALUATION UNDER CENTRAL EXCISE, CUSTOMS AND SERVICE TAX

CA. Manoj BehedeSpeaker

CA. Monica JoshiSpeaker

CMA Ashok NawalSpeaker

SEMINAR ON ADOPTING A GOOD CORPORATE GOVERNANCE FRAMEWORK-CHALLENGES AND SOLUTIONS FOR SMES

CA. Vivan PillaiSpeaker

CA. Vijay BhutadaSpeaker

Mr. Vinayak BapatSpeaker

CA. Anil PatwardhanSpeaker

Dear Members,

Warm greeting of the season from Pune Branch!

It's a completion of the cycle of a year and once again we are meeting at the new starting point of the next circle named the calendar year �2016�.

Every new beginning offers new opportunity to start the process of �review & revive� the existing condition and leap over old barriers to have a real step forward to reach for the new heights and broadened horizons. Friends, let's start implementing the process right from the start of 2016, and strive for the excellence both in professional and personal life.

At Branch the last month of the last calendar year maintained the profound flow of the activities & events for members and students.

For Members the seminars/lecture meets covered the variety of topics viz. Reward Scheme & Deemed Export Benefits Under Foreign Trade Policy, Valuation Under Central Excise, Customs & Service Tax, On Adopting A Good Corporate Governance Framework-Challenges & Solutions for SMES Jointly With Symbiosis Institute Of Management Studies (SIMS) & National Foundation For Corporate Governance (NFCG), GST - Indirect Tax Reform-Draft Law & Business Process Reports" Jointly With Pimpri Chinchwad Branch of WIRC of ICAI, �IND AS with case studies� jointly with Pimpri Chinchwad branch of WIRC of ICAI, Grievance Cell Meeting for Members & Students Jointly With WIRC Of ICAI & Pune WICASA, Advanced Management jointly with Nashik Branch of WIRC of ICAI, from Barter to Bitcoin, Awareness Programs jointly with Mahratta Chamber of Commerce Industries & Agriculture, Pune on �CSR� & �Make in India�, Insurance Claims & Act of God. The CA Members & Students displayed their acting skills through the Inter-Firm One Act Play Competition, in the audience packed auditorium.

The Students' activities included various educational and industrial visits, Article Development Programme, Sinhgad Fort Trekking, Youngotsav -The Cultural Carnival, &Swachh Bharat Abhiyan.

The forthcoming major events / activities:

There are many occasions lined-up providing direct interaction with CA members & students:

The annual mega event �National Convention for CA Students�, organized by Board of Studies & to be hosted jointly by Pune Branch of WIRC & Pune Branch of WICASA is scheduled on 30th& 31st January, 2016. The detailed Programme Structure of the convention is given elsewhere in the Newsletter. The theme of the convention this year is

�Explore the Unexplored� which logical continuation of the last convention theme �Ignited Minds�. You are requested to encourage and motivate article trainees / student employees of your firm to register for the convention and benefit from the enriching experience both in terms of knowledge & entertainment.

For the CA students a very constructive initiative taken up by Board of Studies, ICAI is the Online Mentoring, its Schedule for the month of January, 2016 along-with the details of the links is published elsewhere in this Newsletter. The subject specific sessions by Board of Studies' faculty members aim to mentor students on the successful strategies to succeed in their forthcoming examinations and also clear their doubts/ queries. Please do make aware and encourage your articled staff about this useful activity.

We at Pune Branch would look forward to your gracious presence at ICAI Bhawan, Bibwewadi, Pune on 26th January at 8:30 am for flag hoisting on the occasion of Republic day of India.

The schedule of Triennial Branch Managing Committee Election for the term 2016-2019, has been declared by ICAI, HO. The polling date in Pune is Saturday, 6th February, 2016 & the venue is Gokhale Institute of Politics and Economics, 846, Shivaji Nagar, BMCC Road, Deccan Gymkhana, Pune 411004. The Notice for �Special General Meeting� of Pune Branch of WIRC of ICAI, along-with other requisite details & blank nomina t i on f o rm i s up loaded on the B ranch webs i t e www.puneicai.org.

So look forward your participating actively in the forthcoming programs of the Branch.

While concluding this communiqué; once again on behalf of the Pune Branch Managing Committee Members wish you all a Happy and Prosperous New Year and Happy Sankranti !

Thanking you. With best regards�..!

Knowing others is your Intelligence, but managing others is your real strength. Knowing yourself is your true wisdom, but managing yourself is your true power.

Plot No. 8, Parshwanath Nagar, CTS No. 333, Sr. No. 573, Munjeri, Opp. Kale hospital, Near Mahavir Electronics, Bibwewadi, Pune 411 037

Tel: (020) 24212251 / 52Web: www.puneicai.orgEmail: pune@icai.org

PUNE BRANCH OF WIRC OF ICAI

Chairman Communiqué

3News Letter Pune Branch of WIRC of ICAI/January 2016

Do not feel low when someone doubts your caliber. Just be proud of yourself because people always doubt the gold for its purity and not the iron.

NA

4News Letter Pune Branch of WIRC of ICAI/January 2016

23rd to 26th Jan, 2016

INTER FIRM CRICKET TOURNAMENT-2016

Katariya Cricket Ground, Mukundnagar,

Pune � 411037.

9 AM To

11 PMNA

24th Jan, 2016 Convocation Ceremony

Tilak Maharashtra Vidyapeeth Auditorium,

Vidyapeeth Bhavan, Mukund Nagar, Gultekadi, Pune-37

8 AMTo

2 PMNA

26th Jan, 2016

FLAG HOISTING CEREMONY ON THE OCCASION OF "REPUBLIC DAY"

ICAI Bhawan,Bibvewadi, Pune-37 8:30 AM NA

30th & 31st Jan, 2016

Student National Convention 2016

Mahalaxmi Lawns, Rajaram Bridge,

Karvenager, Pune

9.30 AMTo

5.30 PM

Till 15th Jan Rs. 300/- 16th Jan

Onwards Rs. 400/-

NA

NA

NA

Compiled by CA. Amruta Saswadkar, Pune. shivangiamrutaassociates@yahoo.com

COMPLIANCE CALENDAR FOR JANUARY - FEBRUARY, 2016

15th January, 2016 TDS return for quarter ended December , 2015 - Non Govt. deductorsTCS return for quarter ended December, 2015 - ALL deductorsForms 24Q,26Q,27Q,27EQ

Efiling MVAT Audit report for FY 2014-15 - if turnover > 1Cr - Form 704

Maharashtra Labour welfare fund payment - Form A 1 cum Return

STPI QPR Performance report for quarter ended December, 2015

PF epayment of December, 2015

21st January, 2016 ESI payment of December, 2015

MVAT and CST return for month/quarter ended December, 2015 -Form 231-235, CST- 1

MVAT and WCT TDS payment of December, 2015

22nd January, 2016 Issue TDS certificate u/s 194-IA for December, 2015 TDS deducted - Form 16B

30th January, 2016 Issue TDS /TCS certificates for quarter ended December, 2015 -Form 16A, 27D

31st January, 2016 TDS return for quarter ended December, 2015 � Govt. Deductors - Returns 24Q, 26Q, 27EQ, 27Q

Bank's Return for quarter ended December,2015 for interest up to Rs.10,000/- Form 26QAA

Professional tax of December, 2015 - Form IIIB, MTR-6

6th February, 2016 Service tax epayment for ended January,2016 - GAR-7

7th February, 2016 TDS/TCS payment of January, 2016 - ITNS 281

Submitting Forms 15G,15H,27C received in January, 2016 to IT Commissioner

10th February, 2016 Excise return for January, 2016 - ER-1/2/6

STPI MPR Performance report for January, 2016

15th February, 2016 TDS/TCS certificates issue for quarter ended December, 2015- Govt.Deductors � Form 16A,27D

PF epayment of January,2016

DATE PARTICULARS

The most difficult task is to make everybody happy; the simplest task is to be happy with everyone. Purpose is the same.

14A � STORY NEVER ENDING !! CA. Bhupendra Shahbhupendrashahca@hotmail.com

Preamble:- Section 14A read with rule 8D has been become a bone of contention since the time it was introduced in the statute books. Various conflicting orders/judgements have been rendered by different benches of ITAT and or Courts. However one recent case law shall put at rest at least one vital aspect of these provisions. For purpose of section 14A, instead of taking into account total investment, investment attributable to dividend was required to be adopted an thereafter disallowance was to be arrived.

1) The ITAT restored the order of Assessing Officer holding it a true calculation in terms of rule 8D. The Assessing Officer, instead of adopting the average value of investment of which income was not part of the total income, chose to factor in the total investment itself. Even though the Commissioner of Income Tax (A) noticed the exact value of investment yielding taxable income, he did not correct the error but chose to apply his own equity. Therefore, the matter was remitted to AO to decide afresh. ACB India Ltd. v. Asstt. Commissioner of Income Tax[374 ITR108 Delhi] .

2) The question of law urged on behalf of the assessee was whether the decision of the ITAT as to the disallowance under section 14A of the Income Tax Act, is in error of law in the circumstances of the case. For the assessment year 2008-09 the assessee which is mainly engaged in the business of coal preparation, i.e. beneficiation of coal, transportation, loading of coal and related activities, had reported a tax exempt income to the tune of Rs.18,26,360 amongst other heads of income. The assessing officer added back Rs.19,96,242 under section 14A. While doing so, the assessing officer applied Rule 8D by taking into consideration the total quantum of interest other than that invested, under section 14A in terms of Rule 8D, and arrived at the said figure after multiplying it with the result of the average value of investments and over average value of assets derived by him. He thus determined the disallowance of Rs.19,96,242. The Commissioner (Appeals) went into the record and found that the amount of investment attributable to dividend as on 31-3-2008 was Rs.3,53,26,800, which constituted less than 1% of the total scheduled funds. He however accepted the basis of calculation applied by the assessing officer and directed a disallowance of .05% of the amount determined to be average investment. The ITAT to which the revenue appealed, restored the assessing officer's determination holding it to be a true calculation in terms of Rule 8D. It was argued by the assessee that since Commissioner (Appeals) correctly noted the facts as to the value of the investment in tax exempt investment, and at the same time noticed that the ultimate result on an application of .05% disallowance would be same. Counsel for the revenue on the other hand, submitted that given the determination of average value of investment, the assessing officer had no choice but to apply Rule 8D(2) in view of mandate of section 14A which required him to apply the prescribed method of determining disallowance. Facts as disclosed by the assessing officer, who expressed his opinion that the claim of the assessee for no disallowance was warranted since no expenditure was incurred, had to be rejected. Therefore, the first condition for application of section 14A in this case was fulfilled. In such eventuality the assessing officer was required by the mandate of Rule 8D to follow Rule 8D(2). Clauses 1, 2 and 3 detail the methodology to be adopted. Clauses are of importance, they read as

follows :

3) 'Method for determining amount of expenditure in relation to income not includible in total income. 8D.

(1) Where the assessing officer, having regard to the accounts of the assessee of a previous year, is not satisfied with--

(a) The correctness of the claim of expenditure made by the assessee; or

(b) The claim made by the assessee that no expenditure has been incurred, in relation to income which does not form part of the total income under the Act for such previous year, he shall determine the amount of expenditure in relation to such income in accordance with the provisions of sub-rule (2).

(2) The expenditure in relation to income which does not form part of the total income shall be the aggregate of following amounts, namely :--

(i) the amount of expenditure directly relating to income which does not form part of total income;

(ii) in a case where the assessee has incurred expenditure by way of interest during the previous year which is not directly attributable to any particular income or receipt, an amount computed in accordance with the following formula, namely :--

A ' B ' C

Where A = amount of expenditure by way of interest other than the amount of interest included in clause (i) incurred during the previous year;

B = the average of value of investment, income from which does not or shall not form part of the total income, as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year;

C = the average of total assets as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year ;

(iii) an amount equal to one-half per cent of the average of the value of investment, income from which does not or shall not form part of the total income, as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year.

(3) For the purposes of this rule, the 'total assets' shall mean, total assets as appearing in the balance sheet excluding the increase on account of revaluation of assets but including the decrease on account of revaluation of assets.'

4) In view of the above reasoning, the findings of the ITAT and the lower authorities were thereby set aside. The appeal is allowed and the matter was remitted to work out the tax effect to the assessing officer who shall do so after giving.

5News Letter Pune Branch of WIRC of ICAI/January 2016

GST BILL � 10 THINGS YOU MUST KNOW CA. Pritam Mahurecapritam@gmail.com

Yesterday, few of the private tax web portals published the copy of the draft GST law. Though the authenticity of the same is yet to be vetted by the Government officials, meanwhile, in the following paras the author has tried to decipher the proposed GST law.

1. GST applicable on 'supply' In GST regime, all 'supply' such as sale, transfer, barter, lease, import of services etc of goods and/ or services made for a consideration will attract CGST (to be levied by Centre) and SGST (to be levied by State). As GST will be

applicable on 'supply' the erstwhile taxable events such as 'manufacture', 'sale', 'provision of services' etc. will lose their relevance.

Further, certain supplies, even if made without consideration, such as permanent transfer of business assets, self-supply of goods or services, assets retained after deregistration etc will attract GST. Interestingly, even a 'barter' of goods transaction which were hitherto un-taxed in VAT regime, will attract GST.

2. GST payable as per time of supply

When you understand how hard it is to change yourself, then you shall know how difficult it is to change others.

6News Letter Pune Branch of WIRC of ICAI/January 2016

The liability to pay CGST / SGST will arise at the time of supply as determined for goods and services. In this regard, separate provisions prescribe what will time of supply for goods and services. The provisions contemplate payment of GST at the earliest for

a. 'Goods'- Removal of goods or receipt of payment or issuance of invoice or date on which buyer shows receipt of goods

b. 'Service's� Issuance of invoice or receipt of payment or date on which recipient shows receipt of services

It can be observed that there are many parameters in determining 'time' of supply. Thus, determining the 'time' of supply and further maintaining reconciliation between revenue as per financials and as per GST rules could be a major challenge to meet.

3. Determining Place of Supply could be the keyAt present inter-State supply of goods attract Central Sales Tax. Now, its provides that an inter-State supply of goods and/ or services will attract IGST ((i.e. CGST plus SGST). Thus, it would be crucial to determine whether a transaction is a 'intra-State' or 'Inter-State' as taxes will be applicable accordingly. In this regard, the draft GST law provides separate provisions which will help an assessee determine the place of supply for goods and services.

Typically for 'goods' the place of supply would be location where the good are delivered. Whereas for 'services' the place of supply would be location of recipient. However, there are multiple scenarios such as supply of services in relation to immovable property etc wherein this generic principle will not be applicable and specific rule will determine the pace of supply. Thus, the business will have to scroll through all the place of supply provisions before determining the place of supply.

4. Valuation in GSTGST would be payable on the 'transaction value'. Transaction value is the price actually paid or payable for the said supply of goods and/or services between un-related parties. The transaction value is also said to include all expenses in relation to sale such as packing, commission etc. Even subsidies linked to supply will be includable. As regards discounts/incentives, it will form part of 'transaction value' if it is allowed after supply is effected. However, discounts/ incentives given before or at the time of supply will be permissible as deduction from transaction value.

The law also provides for Valuation Rules to help determine value in certain cases. The Valuation Rules appear to be drafted by taking few provisions from current Valuation provisions in vague in Excise (for e.g. concept of 'transaction value'), Service Tax (for e.g. concept of 'pure agent')and Customs (for e.g. concept of 'goods of like kind and quality').

5. Input tax credit in GSTCurrent CENVAT Credit regime disallows CENVAT Credit on various services such as motor vehicle related services, catering services, employee insurance, construction of civil structure etc. Similarly, State VAT laws restrict input tax credit in respect of construction, motor vehicle etc. Current, this denial of credits leads to un-necessary cost burden on assessee.

It was expected that in GST regime, seamless credit will be allowed to business houses without any denial or any restrictions except say goods / services which are availed for personal use than official use (something similar to Unite Kingdom VAT law). However, surprisingly, inter-alia, aforesaid credit would continue to be not available (in respect of both goods or services). Further, credit is proposed to be denied on goods and/or services used for private or personal consumption, to the extent they are so consumed. This continuation of denial will lead to substantial tax cascading (as rate of GST will be higher that the current rate of service tax!). Also, another round of litigation as interpretation issues will crop up while determining eligibility or otherwise of GST paid on personal consumptions such as business lunch with clients.

6. Inter-State supply of goods for consideration to attract additional taxDraft GST law provides that an additional tax upto 1% will be levied by Centre on inter-State supply of goods (and not on services) made for consideration. Thus, effectively inter-State branch transfers will not attract this 1% additional Tax. This additional tax will be assigned to States from where the supply of goods originates. This additional tax will be applicable for a period of two years and could be extended further by GST Council.

The credit of this additional levy will not be available as thus it will be a cost in the supply chain.

7. There would be 33 GST laws in IndiaIn GST regime, there will be one CGST law and 31 SGST law for each of the States including two Union Territories and one IGST law governing inter-State supplies of goods and services.

8. Rate of GST is not yet specified in the draft GST lawThe rate of GST is not specified in draft GST law. However, various News reports suggest that the Revenue Neutral Rate (RNR) as proposed by the Chief Economic Advisor Shri. Arvind Subramanian could be 17%-18%. Further, there could be lower rate (of 12%-14%) for concessional goods and higher rate (upto 40%) for luxury goods (such as luxury cars, tobacco products etc).

9. Time limit for show cause notices (SCN)Time limit for issuance of SCN is generic cases (i.e. other than fraud, suppression etc) would be three years and in fraud, suppression etc cases it would be five years. Its pertinent to note that the time limit prescribed for issuance of SCN for generic cases is much more than the current time limit prescribe in excise law (i.e. 12 months) and service tax legislation (i.e. 18 months). This will give much leeway to the Authorities while issuing SCN and sleepless night to assessees for three years!

10. 'Provision Vapasi' of old provisionsMost of the current provisions such as reverse charge, tax deduction, pre-deposit, prosecution (!), arrest (!) etc have been continued in the proposed draft GST law. So, after 'GharVapasi' and 'Award Vapasi' it seems that there is 'Provision Vapasi' when we refer the proposed draft GST law.

The new GST law seems to be a new wine in old bottle as most of the current in-efficiencies has been continued in the proposed GST law. So, only the time will tell whether the known devil (current indirect tax regime) is better than un-known one (proposed GST regime).

IMPACT OF FDI REFORMS ON REAL ESTATE SECTOR CA. Vinit V. Deo (CMD Posiview Consulting Partners)vinit@posiview.in

The Government of India has announced major reforms in Foreign Direct Investment (FDI) Policy in November. In our view these reforms will have the same far-reaching impact like the opening of the sector to FDI in 2005.

Pune is one of the hotspots for FDI in Real Estate and several thousand crores of FDI has flowed in since the doors opened in 2005. The recent amendment to the FDI Policy has made it possible for even Small and Mid Sized (SME) Developers to get FDI for their projects since the restrictions on area of the project and quantum of investment have been removed. This presents an excellent opportunity for fellow Chartered Accountants to provide end to end advisory services to their Real Estate clients and

support in their business growth.I have focused on the reforms which we believe will have a direct and indirect impact on Real Estate sector under 3 categories:

A. Direct Impact on Real Estate: Relaxations in conditions of Investment

B. Indirect Impact on Real Estate: Boost to FDI in Wholesale and Retail Trade

C. Procedural Simplifications: Selling the Company, investment through LLP etc.

See mistakes just as mistakes, not as yours or mine "My" brings guilt and "Yours" brings anger.

7News Letter Pune Branch of WIRC of ICAI/January 2016

Select Extracts from the Press Note issued by the Department of Industrial Policy and PromotionA. DIRECT IMPACT ON REAL ESTATE INDUSTRYRadical Changes in FDI Regime in Construction Development Sector Following changes have been made in the FDI policy on Construction Development sector:

i) Conditions of area restriction of floor area of 20,000 sq. mtrs in construction development projects and minimum capitalization of US $ 5 million to be brought in within the period of six months of the commencement of business, have been removed.

ii) Each phase of the construction development project would be considered as a separate project for the purposes of FDI policy.

iii) A foreign investor will be permitted to exit and repatriate foreign investment before the completion of project under automatic route, provided that a lock-in-period of three years, calculated with reference to each tranche of foreign investment has been completed. Further, transfer of stake from one non-resident to another non- resident, without repatriation of investment will neither be subject to any lock-in period nor to any government approval. Nonetheless, exit is permitted at any time if project or trunk infrastructure is completed before the lock-in period.

iv) FDI is not permitted in an entity which is engaged or proposes to engage in real estate business, construction of farm houses and trading in transferable development rights (TDRs).

Real Estate Business will mean as 'dealing in land and immovable property with a view to earning profit therefrom and does not include development of townships, construction of residential/ commercial premises, roads or bridges, educational institutions, recreational facilities, city and regional level infrastructure, townships.

Further, earning of rent/ income on lease of the property, not amounting to transfer, will not amount to real estate business. (Note: New line added to the FDI Policy)

v) Condition of lock-in period will not apply to Hotels &Tourist Resorts, Hospitals, Special Economic Zones (SEZs), Educational Institutions, Old Age Homes and investment by NRIs.

vi) 100% FDI under automatic route is permitted in completed projects for operation and management of townships, malls/ shopping complexes and business centres. Consequent to foreign investment, transfer of ownership and/or control of the investee company from residents to non-residents is also permitted. However, there would be a lock-in-period of three years, calculated with reference to each tranche of FDI, and transfer of immovable property or part thereof is not permitted during this period.

vii) "Transfer", in relation to FDI policy on the sector, includes:

(a) The sale, exchange or relinquishment of the asset ; or

(b) The extinguishment of any rights therein ; or

(c) The compulsory acquisition thereof under any law ;

(d) Any transaction involving the allowing of the possession of any immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882) ; or

(e) Any transaction, by acquiring shares in a company or by way of any agreement or any arrangement or in any other manner whatsoever, which has the effect of transferring, or enabling the enjoyment of, any immovable property.

Investment by Companies/Trusts/Partnerships Owned & Controlled by NRIs on Non-Repatriation Basis to be Treated as Domestic Investment

Non-Resident Indians (NRIs) have special dispensation for investment in construction development and civil aviation sector. Further, investment made by Non-Resident

Indians under schedule 4 of FEMA (Transfer or issue of Security by Persons Resident Outside India) Regulations is deemed to be domestic investment at par with the investment made by residents.

In order to attract larger investments, which are possible through incorporated entities only, the special dispensation of NRIs has now been also extended to companies, trusts and partnership firms, which are incorporated outside India and are owned and controlled by NRIs. Henceforth, such entities owned and controlled by NRIs will be treated at par with NRIs for investment in India.

B. INDIRECT IMPACT ON REAL ESTATE INDUSTRYPermitting Manufacturers to Undertake Wholesale and/or Retail, Including Through E-Commerce Without Government Approval

It has been decided that a manufacturer will be permitted to sell its product through wholesale and/or retail, including through e-commerce without Government approval.

Review of FDI Policy Conditionalities for Single Brand Retail Trading (SBRT) and Permitting 100% FDI in Duty Free Shops (i) Extant FDI policy on SBRT mandates that sourcing of 30% of the value of goods purchased would be reckoned from the date of receipt of FDI. It has now been decided that sourcing requirement has to be reckoned from the opening of first store. Further, it is seen that in certain high technology segments, it is not possible for retail entity to comply with the sourcing norms. To provide opportunity to such single brand entities, it has been decided that in case of 'state-of-art' and 'cutting- edge technology' sourcing norms can be relaxed subject to Government approval.

(ii) FDI policy on the SBRT provides that, retail trading, in any form, by means of e- commerce, would not be permissible. It has been decided that an entity which has been granted permission to undertake SBRT will be permitted to undertake e- commerce activities.

(iii) It has been clarified that Indian brands are equally eligible for undertaking SBRT. It has been decided that certain conditions of the FDI policy on the sector namely; products to be sold under the same brand internationally and investment by non- resident entity/ entities as the brand owner or under legally tenable agreement with the brand owner, will not be made applicable in case of FDI in Indian brands.

(iv) An Indian manufacturer is permitted to sell its own branded products in any manner i.e. wholesale, retail, including through e- commerce platforms. For the purposes of FDI Policy Indian manufacturer would be the investee company, which is the owner of the Indian brand and which manufactures in India, in terms of value, at least 70% of its products in house, and sources, at most 30% from Indian manufacturers. Further Indian brands should be owned and control led by resident Indian c i t izens and/or companies, which are owned and controlled by resident Indian citizens.

Opening of Duty Free Shops for 100% FDI under Automatic Route 100% FDI is now permitted under automatic route in Duty Free Shops located and operated in the Customs bonded areas.

100% FDI in LLPs Permitted Under Automatic Route FDI policy on Limited Liability Partnerships (LLP) has been amended to provide that investments in LLPs will not require Government approval. 100% FDI is now permitted under the automatic route in LLPs operating in sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance conditions. Further, the terms 'ownership and 'control' with reference to LLPs have also been defined. Downstream

Well-wishers are like beautiful street lamps. They cannot make the distance shorter, but they can lighten your path and make the journey easier.

8News Letter Pune Branch of WIRC of ICAI/January 2016

Investment, It has been decided that in line with companies, an LLP having foreign investment will be permitted to make downstream investment in another company or LLP in sectors in which 100% FDI is allowed under the automatic route and there are no FDI-linked performance conditions. Further, for the purposes of FDI policy, the term 'internal accruals' has also been defined.

C. PROCEDURAL SIMPLIFICATIONSEstablishment and Transfer of Ownership and Control of Indian Companies

As per the FDI policy establishment and ownership or control of the Indian company in sectors/activities with caps requires Government approval. This provision has now been amended to provide that approval of the Government will be required if the company concerned is operating in sectors/ activities which are under Government approval route rather than capped sectors. Further no approval of the Government is required for investment in automatic route sectors by way of swap of shares.

EXTENSION OF TIME TO COMPLETE GMCS-I COURSE BY THE STUDENTS REGISTERED FOR ARTICLESHIP TRAINING ON OR AFTER 1ST MAY, 2012

It has been decided to grant extension to students, who were registered for practical training on or after 1st May, 2012 and completed one year of their practical training but not completed the GMCS-I course are, required to complete GMCS-I Course latest by

31stDecember, 2016.

The above students are advised to register at the portal www.icaionlineregistration.org or contact the nearest Regional Council/Branch for registration in GMCS-I Course and complete the same at the earliest but not later

than 31st December, 2016.

You are requested to give due publicity to this matter by publishing it in your newsletter/hosting it at your website etc., so that the above category of students who have not completed the GMCS-I within the specified period could avail of this opportunity and

undergo the training timely but not later than 31st December, 2016.

Yours sincerely,(CA. V. Murali)

Chairman, Board of Studies

APPEAL TO MEMBERS FOR POLLINGFOR TRIENNIAL BRANCH MANAGING COMMITTEE ELECTION

FOR THE PERIOD 2016 - 2019Day, Date & Time: Saturday, 6th February 2016

From 8 am to 6:30 pmVenue: Gokhale Institute of Politics and Economics,

846, Shivaji Nagar, BMCC Road, Deccan Gymkhana,Pune 411004.

Do's Don'ts

Bring at Election venue your original Photo ID Proof - ICAI Card / Driving License / Aadhaar Card / PAN Card / Voter ID / Pass Port.

Caution! Don't mix up the Roman and English Numbers in a single ballot paper. Other-wise your vote might not be considered.

Give your preference carefully and correctly as per the instructions on the ballot paper.

Do not write anything or sign on ballot paper.

Ensure that you are in Queue between 8am to 6:30 pm on the day of polling. Do not forget Photo ID at election venue.

Voting System: Single Transferable voting i.e. Preferential Voting SystemEligible Members for voting: All the members enrolled as on 6th August, 2015 as per their address in ICAI records are eligible to vote

One thing I learnt from life is that getting 'UP SET' will never sort out any issue, but getting 'UP' to 'SET' the things right will help a lot in life.

10News Letter Pune Branch of WIRC of ICAI/January 2016

SEMINAR ON "GST INDIRECT TAX REFORM-DRAFT LAW & BUSINESS PROCESS REPORTS"

CA. Preeti KulkarniSpeaker

CA. Manoj MalpaniSpeaker

CA. Monica JoshiSpeaker

CA. Manoj BehedeSpeaker

CA. Kusai GoawalaSpeaker- Seminar On "ind As With Case Studies"

PROGRAMME ON "ADVANCED MANAGEMENT"

CA. Pankaj ThadaniSpeaker

Mr. Shailendra GoswamiSpeaker

Mr. Sandeep GodboleSpeaker

CA. Yashwant KasarSpeaker

CA. Vinayak GovilkarSpeaker - SEMINAR ON "FROM BARTER

TO BITCOIN"

CA. Vinay SanchetiSpeaker - AWARENESS PROGRAM ON

"MAKE IN INDIA"

CS. Vinayak Khanvalkar Speaker - AWARENESS PROGRAM ON

CORPORATE SOCIAL RESPONSIBILITY (CSR)

CA. Bhupendra BhandariSpeaker- SEMINAR ON

"INSURANCE CLAIMS & ACT OF GOD"

If the one button of your shirt is wrongly put, all the rest are surely crooked. So always be careful on your first step, the rest will automatically follow you.

11News Letter Pune Branch of WIRC of ICAI/January 2016

STUDENTS ACTIVITY

CA.Dhruv Doshi & CA. Suchit LoyaSpeaker-two Days Seminar For CA Students

On Article Development Program

SWACHHA BHARAT ABHIYAN

EDUCATIONAL VISIT TO VAIKUNTH MEHTA NATIONAL INSTITUTE OF CO-OPERATIVE

MANAGEMENT

�YOUNGOTSAV -THE CULTURAL CARNIVAL INDUSTRIAL VISIT TO �ELECTRICA INDIA ENGINEERING PVT. LTD.

TWO DAYS STUDENTS RESIDENTIAL REFRESHER CONFERENCE (RRC) 2015 EDUCATIONAL VISIT TO JANAKALYAN RAKTAPEDHI

EDUCATIONAL VISIT FOR STUDENTS TO SKP GROUP

EDUCATIONAL VISIT FOR STUDENTS TO KOTAK MAHINDRA BANK LTD.

Mr.H. M. JorapurSpeaker - Grievance Cell Meeting

For Members & Students