Baroda Branch of Western India Regional Council of The...

The Institute of Chartered Accountants of India(Setup by an Act of Parliament)

Volume - IX October 2012 l

Baroda Branch of Western India Regional Council ofThe Institute of Chartered Accountants of India

MAHATMAGANDHI

“An error does not become

truth by reason

of multiplied propagation,

nor does truth become

error because

nobody sees it.”

NewsLetter` 20/- Copy

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIAICAI Bhawan, Post Box No. 7100, Indraprastha Marg, New Delhi - 110002. Tel. : +91 (11) 39893989 E-mail : [email protected] Web : www.icai.org

WESTERN INDIA REGIONAL COUNCILICAI Bhawan, 27, Cuffe Parade, Post Box No. 6081, Colaba, Mumbai - 400 005. Tel. : +91 (22) 39893989 Email : [email protected] Web : www.wirc-icai.org

BARODA BRANCH OF WIRC OF ICAI “ICAI Bhawan”, Kalali-Tandalja Road, Atladra, Vadodara - 390 012. Telefax : +91 (265) 2681115 / 2680593 E-mail: [email protected] Web : www.baroda-icai.org

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Dear Professional Colleagues,

By the time this newsletter reaches you, our Nation would have remembered and recalled the great contributions made by our “Father of the Nation “-Mahatma Gandhi on his birthday on 2nd October. An inimitable personality in the history of India; he showed to the whole world the value of dharma, ahinsa, patience, self-reliance and non-violence and lived his life for the

cause of the country. Let us all re-dedicate ourselves to the values left behind by him, in our journey of life.

Friends, since the period of meeting hectic deadlines is over, Baroda Branch resume’s back to normal course of its activities.

In the upcoming programs, we have a Full Day National Seminar for “Small & Medium Practitioner” Jointly with Bhavnagar Branch and the speakers on the topics will share their real life experiences.

We at, branch is always working for the benefit, growth & development of its members, hence looking to the overwhelming response in the earlier conducted certificate courses , we are initiating the 1st batch of certificate course on concurrent audit beginning from 19th October and spreads over six days.

“Financial Prescription for Doctors “is another, one kind of exclusive program for the professionals in medicine. This program is jointly being organized with “Indian Medical Association”. This program will help to create financial awareness thereby we try to accomplish one of the Objective of ICAI- Partners in Nation Building.

The ICAI always tries to involve more and more Members in industry, for this it organizes various Meets. Baroda Branch following the footsteps of its mother ICAI has organized “All Gujarat CFO Meet” on 19th of this month.

Dear friends, as all of you are aware that Central Council and Regional Council are scheduled to be held on 7th & 8th of December 2012. It is requested to keep your diaries open on these dates to come forward and vote to express their choice of representatives from our fraternity on WIRC and Central Council platform.

I conclude this message by taking an opportunity to wish all the members a Happy Navratari and Happy Dusherra.

With regards,

CA Pradeep Agrawal

MANAGING COMMITTEE

CA. Rajesh Shah Ex-officio 98250 41142

CA. Yash Bhatt 99243 88339Treasurer

CA. Pradeep Agrawal

Chairman 93272 4347998985 60967

CA. Ashish Parikh 98252 31545Vice Chairman

CA. Nayan Kothari Secretary 98244 33445

CA. M J Parsiya 98251 10620

Past Chairman

Immediate

CA. Viral Shah 98243 62211Member

CA. Arpan Dodia 98983 83530Member

CA. Hitesh Shah Member 99247 94693

CA. Pradeep Agrawal CA. Hitesh Shah

CA. Vishal Doshi CA. Ashok Thakkar

CA. Abhishek Nagori CA. Narendra Hindocha

CA. Bimal Bhatt CA. Neena Patel

CA. Nidhi Bhatt CA. Rachana Parikh

EDITORIAL TEAM

Index

“I would like to make a special mention of our experience in conducting our Election under the system of polling introduced for the first time since the Institute was formed. As members might be aware, there was considerable Skepticism whether the members, and particularly the seniors, would care to take the trouble of going to the polling booths to cast their votes. The government also hesitated for some time to accept our proposal to change over to the polling system. I am very happy to state however, and I am sure my colleagues here will share my views, that the conduct of the election by Poll has been a great success.”

Late CA. C.P. Mukherjee (1960-1961) 9th President, ICAI, Spoken on 12th Annual Meeting of the Council of ICAI held on 14th and 15th September, 1961)

Forthcoming Events ............................................ 03

Income Tax Updates ........................................... 05

Let's Connect with ICAI ...................................... 06

To My Grandson .................................................. 06

FAQ on IAS - 2 : Inventories (Ind - AS 2) ............. 07

ICAI Updates ....................................................... 08

Appeal for the Financial Assistance ................... 09

Important Due Dates .......................................... 11

Photo Flash ......................................................... 11

BARODA BRANCH OF WIRC OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

NewsLetter

02 OCT 2012VOLUME - IX

22nd Residential Refresher Course (RRC)@ MATHERAN

ON 6-7-8 JANUARY, 2013 (Sunday to Tuesday)

The Byke - A Hotel Retreat, Matheran

Fees : 8,900/person on twin sharing basis upto 15.12.2012 and then after 9,500/- & `. 10,900/person on single sharing basis on or before 15.12.2012 & then after ̀ . 11,500/-`. `.

Rush for Registrations, Registration on 1st come 1st basisFor more details, contact Baroda Branch of WIRC of ICAI (M) 98257 18576


NewsLetter


ForthcomingEventsBRANCH EVENTS

Full Day National Seminar for SMPs

Organised Jointly by CCBCAF & SMP, ICAI & WIRCHosted Jointly Baroda & Bhavnagar Branches of WIRC of ICAI

Day & Date : Saturday, 06.10.2012Time : 09.00 am to 05.00 pmSubjects Faculties

Inaugural Session - Road Map CA Sunil Talati, ahead for SMPs Past President ICAIInternational Avenues – including CA Khusroo Panthaky,Opportunities for Indian CA’s Mumbai

Specialization/ Super CA Yagnesh Desai, Mumbaispecializations in CA Profession?

Challenges in Sustaining Growth CA Rahul Parikh, Barodaof a Firm

Challenges for Capacity Building CA Sunil Sharma, Mumbaifrom SMP’s through Networking,Merger, De-merger, LLP & Corporate Form of Practice

Fees : `. 900/-

Venue : ICAI Bhawan, Baroda

CPEHRS.6

Workshop - Financial Prescription for Doctors

Jointly with Indian Medical Association- Vadodara Branch

Day & Date : Sunday 07.10.2012Time : 10.00 am to 4.00 pm Subjects Faculties

Keynote Address Dr. Vijay Shah, Chairman,Standing Committee, VMSS

Accounting & Forms of Practice CA. Alok Shah, BarodaAxe your Tax CA. Amar Shah, Baroda(Income & Service Taxes)Financial Models as a CA. Milin Mehta, BarodaGrowth Strategy Carving out Financial Retirement CA. Manish Baxi, BarodaPlanningFees : `. 200/- upto 30.09.2012 and `. 300/-

thereafter.

Venue : ICAI Bhawan, Baroda

1st Annual All Gujarat CFO Meet 2012Organized by CMII, ICAI, Hosted by Baroda Branch of WIRC of ICAI

Day & Date : Friday, 19.10.2012Time : 09.00 am to 05.00 pmSubjects Faculties

Introspection: How CFOs can do Panel Moderatorvalue addition & balance client CA. Sunil Vakil, Barodaexpectations Panel Members

- CA. Deepak Narayanan, CFO, Wealth Tree Advisors

Private Ltd, Mumbai

CPEHRS.6

- CA. Bharat V Kanani,CFO & COO, Permionics Membranes Pvt. Ltd., Baroda - CA. Sanjeev Shah, Baroda

Future Prospective: Strategic CA. Ashesh Ghose, Challenges for 2012 and Beyond CEO, Rolls Pack Pvt. Ltd.,

MumbaiRegulatory Aspects: Governance Panel Moderator& Ethics: Managing risk CA. Sanjeev Shah, Baroda

Panel Members - CA Pratik K. Singhi ,CEO, Lakshya Consulting, Mumbai - CA. Bimal R Bhatt, Baroda

Evolving Role of CFO: Newer Panel ModeratorDimensions Newer Challenges: CA. Maulik Mehta, Baroda

Panel Members - CA. Shashidhar Jayaraman,CFO, ASK Pravi Capital Advisors, Mumbai - CA. Rakesh Mistry, CFO, Elitecore Technologies - CA. Smriti Vijay, Executive Board Member & CFO, Indian Subsidiary of the MNE Aker Solutions

Fees : `. 1500/ per person

Venue : Hotel Surya Palace, Sayajigunj, Baroda

1st Batch of Certificate Course on Concurrent Audit of Banks

Day & Date : Friday, 19.10.2012 & onwards (six days)Time : 09.00 am to 05.00 pmFees : `. 12,500/-

Venue : Hotel Surya Palace, Sayajigunj, Baroda

CPEHRS.36

5th Charitable Clinic

Day & Date : Friday, 23.11.2012 Time : 03.00 pm to 05.00 pmFees : Nil

Venue : United Way of Baroda, 9th Floor, Sidcup Tower, Race Course, Baroda

10th Batch of ISA Course

Day & Date : Saturday, 24.11.2012 & onwards (six weekends)

Time : 09.00 am to 05.00 pmFees : `. 17,500/- (Minimum 20 Participants).

6th Charitable Clinic

Day & Date : Friday, 21.12.2012 Time : 03.00 pm to 05.00 pmFees : Nil

Venue : United Way of Baroda, 9th Floor, Sidcup Tower, Race Course, Baroda


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04 OCT 2012VOLUME - XI

Fees : For Members `. 2350/-upto 15.10.2012, then after `.2500/-For Non-members `. 2500/-upto 15.10.2012, then after `.2750/-

Venue : Madhubhan Resorts, Anand.

In an era of increasing usage of ‘plastic

money’ & Inernet - with an objective of better

services to members & students, Baroda

Branch is having facilities of Registrations for

seminar & conference by paying through

credit/debit card at ICAI Bhawan or visit

www.baroda-icai.org for online payment.

PAYMENT OPTIONS FOR PROGRAM REGISTRATION

e-paymentD r o p B o x a t 2 - B , Ramkrishna Chambers, BPC Road, Baroda. Kindly mention your name, membership number and program for which registration is sought, on back side of the Cheque

Join us on group Facebook Baroda Branch of WIRC of ICAIExchange views and news. Be updated about forthcoming events of Baroda Branch

Members are requested to register themselves in advance by

using above options and avoid spot registration to help us to

serve you better.

Two Days All Gujarat Tax & Audit ConclaveJointly

Day & Date : Friday & Saturday, 2 & 3.11.2012Time : 09.00 am to 05.00 pmSubjects Speakers

Inaugural Session CA. N. P. Sarda, Past President, ICAI

Accounting Standards CA. N. P. Sarda, Past(with Special emphasis on SME's) President, ICAI

Qualification & Disclosures in CA. Arpit Patel, Audit Report under Companies Act Ahmedabad

Time Management for Dr. Hemant Antani, AnandProfessionals

NRI Taxation ( Income Tax) CA. Mahesh Sarda,CCM, ICAI

Transfer Pricing CA. Milin Mehta, Baroda(with specific reference to Section 92BA)

Accounting, Audit & Taxation CA. Virendra Parwal, Jaipur(excl. Income Tax of Real Estate)

Service Tax - Reverse Charge CA. Bimal Jain, New Delhi MechanismPenalties under the IT Act CA. Sunil Talati, Past

President, ICAIValedictory Session CA. Sunil Talati, Past

President, ICAI

Organized by Baroda & Anand Branches of WIRC of ICAI

CPEHRS.12


NewsLetter


Income Tax Updates

decision, and threats by investors, the scale appears to be weighing heavier towards the view that the foreign investor was not fairly treated, that India needs foreign investments and also tax on capital gains rightly belongs to the home country of the investor. Now the report of Shome Committee suggests that there should not be any tax on capital gains, whether short term or long term and whether earned by a resident or non-resident and whether the activity constitutes business or not.

I had a passing thought. If a U.S. National bets with another U.S. National, that Mr. Man Mohan Singh will continue to be Prime Minister of India after the elections, and wins a million dollars, will the Indian tax authorities tax the amount on the ground that the winning was entirely dependent on political events occurring in India ?

3. MAT Credit in respect of surcharge

Section 115JAA allows credit in future years in respect of Income-tax paid under section 115JB. There have been issues asto whether the amount of tax for which such credit is allowable includes Surcharge and Education Cess. In this connection, you can observe a change in the Form ITR 6 applicable to companies, for the Assessment Year 2012-13 as compared to Form ITR 6 for Assessment Year 2011-12. In case of the latter, the form required comparison of tax on total income and tax on book profit without considering the Surcharge. However, in the form for A.Y.2012-13, the comparison is between the figures including surcharge and cess. Also in A.Y.2012-13, tax credit is to be reduced after first adding surcharge and cess to the basic tax whereas earlier, the tax credit was to be reduced first and then surcharge and cess were added. You may see effect of above, during the years of reducing surcharge.

4. Expenditure on books

Compiled by CA. Narendra Hindocha

1 Non-existing demands uploaded to CPC

It has been found that in most of the cases, demand uploaded is incorrect and incompleted. Such demands have been uploaded by Assessing Officers without due diligence and verification.

Do not blame me for belittling the Honourable Officers as the above are not my observations but those of M e m b e r, C B DT, M i n i s t r y o f Finance,Government of India in letter dated 3-9-12 addressed to CCITs and DGs.

The problem has reached the right ears. But wait a while before you celebrate. The process for resolving the issue is stated as under:

- Hold 3-9-12 to 14-9-12 as Demand Management Fortnight (Over by the time many of you become aware of it).

- Create Single Window Cell to receive and deal with Grievances for each CCIT charge ( Most would have already filed rectification application with the AO, who are not directed to forward the applications to the Cell or dispose them, and possibly the Cell would deal with only fresh applications received by it)

And the direction that takes the cake is to resolve all arrear demand grievances within 30 days (From which date ?). Remember the King who directed the waves of the ocean to stop ?

2. Vodafone and our tax policy

Looks like Vodafone is dictating our tax policy. At one point of time, Vodafone was painted as a cunning m a n i p u l a t i v e m u l t i n a t i o n a l swallowing tax dues of our poor country. Six months back, the Committee reviewing Direct Tax Code suggested that there should be no exemption for capital gains on sale of shares in companies. After many professional views, Supreme court

We normally do not consider expenditure on books as expenditure of capital nature. However, the fact of the matter is that books are considered ̀ plant’ as per definition in section 43 and the Income-tax rules prescribe the rates of depreciation for books. Now we also have decision of Cochin Bench of ITAT in case of Brilliant Study Centre ( 17 ITR (Trib) 394, holding that the expenditure on books is capital expenditure

5. Allowance of expenditure when source not satisfactorily explained.

As per provisions of section 69C, expenditure, source of which is not satisfactorily explained, is included in total income. I believe that the provision can work rationally only in respect of personal expenditure or capital expenditure which is not allowable in computing total income. However, the provision does not so restrict its operation and adds that such expenditure will not be allowed as deduction under any head of income. So apart from taxing the amount that is, in the opinion of Revenue, unaccounted, the Revenue will further proceed as if your business expenditure is not business expenditure for allowance of deduction under Income-tax Act.

Furtunately the High Court of Kerala, in ITA No. 323 in case of CIT V. Shri P.D.Abrahm so the fallacy in the logic behind the provision and observed that disallowance would not be justified in such a case. The court observed `we do not think excess expendi ture over accounted expenditure in business is covered by Section 69C itself’.

The same decision further holds that when additions are made on the basis of records found during search, the same material cannot be ignored as an evidence of having incurred expenditure, even when the payee refutes the receipt.

6. Cost inflation index

Cost inflation Index for computing capital gains is notified at 852 for the financial year 2012-13


NewsLetter


Perhaps the greatest service that can be rendered by any member to the profession and to the Institute is to help in developing new generation of members.

The future of profession depends on new generation of members and this month, Lets connect with ICAI brings an opportunity to participate in the examination process, which is the system to select new members of the profession.

Examination Department of the Institute would like to avail the services of the members of the Institute (upto 15 years of Experience) to act as Checker, other details are as under:

The Examination Department of the Institute avails the services of resource persons (members of the Institute, academicians, executives, etc.) to act as Examiners to evaluate the answer books of Chartered Accountants Examinations (Final/IPCE/PCE). Each examiner is required to appoint a person as his checker to inter-alia perform the following functions besides assisting him in the preparation of Award List.

The services of the checkers are required at individual examiner level to check the following:

1. To ensure that the marks awarded to the sub parts of a question entered in the marks grid on the cover page of the answer book has been totaled correctly.

2. To ensure that the total marks written in numerals in the marks grid on the cover page of the answer book tallies with what is written in words therein below.

3. To ensure that total marks in the grid is carried forward correctly in numerals in the OMR portion on the right hand bottom corner of the cover page of the answer book.

4. To ensure that the darkening of the

Invitation to become Checker for Chartered Accountants Examinations

Role of Checkers

Let's Connectwith ICAI

Compiled by CA. Neena Patel

corresponding OMR circles on the cover page is done as per the numerals written in the box there above.

5. To ensure that the total marks on the cover page of the answer book is carried forward correctly in the award list against the respective code number.

6. To ensure that the totals of the marks entered in each column of the award list is correct.

7. To ensure that the grand total of each award list is correct.

8. To ensure that the total number of answer books is entered correctly in the relevant box in the award list.

9. To ensure that darkening of circles in the award list is in accordance with the marks written in numerals against the respective code number of the answer book.

10. To ensure that the page wise totals of marks awarded on the award list is carried forward correctly to the summary sheet.

11. To ensure that totaling of marks of all the candidates carried forward to the is correct.

12. To ensure that darkening of OMR circles is done completely in Cover page of the answer books as well as OMR Award List.

Over all scheme for members of the Institute to become checkers:

1. Members who would like to associate with the Examination Department to act as Checker have to fill up an online form available at-

http://www.icai.org/app_forms/empanelment.html.

The Examination Department will not entertain any other mode of empanelment application form.

2. Based on the assignment given to individual examiners, reference of such examiners to whom the services of empanelled checkers are required would be provided to the empanelled checkers in due course.

3. Though the empanelment is open to

How to apply

members having upto 15 years of experience, first preference will be given to members having upto 5 y e a r s o f p o s t m e m b e r s h i p experience. Similarly second preference will be given to members with upto 10 years of post membership experience and so on.

4. The empanelled checkers have to visit the examiners at their residence or official address for providing the services as aforesaid.

5. A token honorarium of Rs. 25 per full paper or Rs. 15 per half paper would be paid to the checkers.

6. It is anticipated that the number of visit of checker to the examiners’ o f f i c e / r e s i d e n c e w o u l d b e maximum 3 to complete the assignment for which a conveyance expenditure reimbursement of Rs. 1000 for A class cities or 500 Rs. for B class cities (per occasion) will be paid. Additional visits by the checkers to examiners, if found necessary may, also be eligible for reimbursement of the conveyance expenditure subject to necessary approvals.

(Source: www.icai.org; The Chartered Accountant- ICAI Journal)

Compiled by CA. Bimal R. Bhatt

When did I write to you last? I have trouble even remembering! In today’s fast-paced world we have become so addicted to instant communication that we prefer to use a telephone. But speaking on the telephone only gives us an immediate but fleeting joy. Writing is different. Writing – even if it is a letter – not only conveys our present concerns and views of the events taking place around us but it becomes a possession that can be treasured and re-read over the years, with great, abiding pleasure.

What is contained in the chapters (The Book : I TOO HAD A DREAM) that follow is, of course, more than a letter. You may not wish to read it all right away but, perhaps, a couple of decades or more from now, you will pick up these jottings of mine again and they will give you a deeper

To My Grandson


NewsLetter

07 OCT 2012VOLUME - XI

understanding of what I have done, and the reasons I pursued a life of services to our nation’s farmers. You will then discover in them valuable reminder of the days just before the world entered the twenty-first century. And you may want to share my memories with those of your generation, or even younger, provide them glimpse of the world your grandparents lived in and knew.

I started my working life soon after our country became independent. The noblest task in those days was to contribute in whatever way we could towards building an India of our dreams – a nation where our people would not only hold their heads high in freedom but would be free from hunger and poverty. A nation where our people could live with equal respect and love for one another. A nation that would eventually be counted among the foremost nations of the world. It was then that I realized, in all humility, that choosing to lead one kind of life means putting aside the desire to pursue other options. This transformation took place within me fifty years ago, when I agreed to work for a small cooperative of dairy farmers who were trying to gain control over their lives.

To be quite honest, service to our nation’s farmers was not the career I had envisioned for myself. But somehow, a series of events swept me along and put me in a certain place at a certain time when I had to choose between one option or another. I was faced with a choice that would transform my life. I could have pursued a career in metallurgy and perhaps become the chief executive of a large company. Or, I could have opted for a commission in the Indian Army and maybe retired as a general. Or, I could have left for the US and gone on to become a highly successful NRI. Yet I chose none of these because somewhere, deep down, I knew I could make a more meaningfu l contribution by working here in Anand, Gujarat.

Your grandmother too made an important choice. She knew, in those early days, life in Anand could not offer even the simple comforts that we take for granted today. However, she ardently supported my choice to live and work in Anand. That

choice of your grandmother to stand by me has given me an everlasting strength, always ensuring that I shouldered my responsibilities with poise.

Whenever I have received any recognition for my contributions towards the progress of our country, I have always emphasized that it is recognition of the achievements of many people with whom I had the privilege to be associated with. I would like to stress even more strongly that my contributions have been possible only because I have consistently adhered to certain core values. Values that I inherited from my parents and other family elders; values that I saw in my mentor and supporter here in Anand – Tribhuvandas Patel. I have often spoken of integrity as the most important of these values, realizing that integrity – and personal integrity, at that – is being honest to yourself. If you are always honest to yourself, it does not take much effort in always being honest with others.

I have also learnt what I am sure you, too, will find out some day. Life is a privilege and to waste it would wrong. In living this privilege called ‘Life’. You must accept responsibility for yourself, always use your talents to the best of your ability and contribute somehow to the common good. That common good will present itself to you in many forms everyday. If you just look around you, you will find there is a lot waiting to be done: your friend may need some help, your teacher could be looking for a volunteer, or the community you live in will need you to make a contribution. I hope that you, too, will discover, as I did, that failure is not about not succeeding. Rather, it is about not putting in you best effort and not contributing, however modestly, to the common good.

In life you, too, will discover, as I did, that anything can go wrong at any time and mostly does. Yet, there is little correlation between the circumstances of people’s lives and how happy they are. Most of us compare ourselves with someone we think is happier – a relative, an acquaintance, or often, someone we barely know. But when we start looking closely we realize that what we saw were only images of perfection. And that will

help us understand and cherish what we have, rather than what we don’t have.

D o y o u r e m e m b e r w h e n y o u accompanied me to the magnificent ceremony in Delhi in which our President awarded me the Padma Vibhushan in 1999? With great pride, you slipped the medal around your neck, looked at it in awe and asked me very innocently if you could keep it. Do you remember the answer your grandmother and I gave you? We told you that of course, this medal was yours as much as it is mine but that you should not be satisfied in merely keeping my awards – the challenge before you was to earn your own rewards for the work that you did in you life time.

And in the end, if we are brave enough to love, strong enough to rejoice in another’s happiness and wise enough to know that there is enough to go around for all, then we would have lived our lives to the fullest.Contents of a letter addressed by Late Dr. Verghese Kurien (appeared in his autobiography)

Compiled by CA. Prashant Upadhyay

FAQs on IAS – 2 : Inventories (Ind–AS 2)

to be continued from last issue ....

8. Should we include interest and borrowing costs in the cost of inventory if it takes substantial period (Say more than One year) to be converted to sale?

Ans: Yes, See IAS 2 & para 17 of IAS 23 (Borrowing Cost), interest and borrowing costs will normally not be considered while computing the cost of inventories except limited circumstances like conversion of inventory into sale take substantial period.

9. Does Pledged Inventory requires special disclosure under IAS-2 ?

Ans: Yes, Inventory pledged as security for liabilities requires separate disclosure.

10. Does valuation of inventories include with Exchange Rate differences under IAS-2?

Ans: As stated in IAS-2, Exchange rate


NewsLetter


differences are not included in inventory valuation.

11. Under which circumstances “retail method” is used as a tool of measurement of cost?

Ans: The retail method is often used in the retail industry for measuring inventories of large numbers of rapidly changing items with similar margins for which it is impracticable to use other costing methods. The cost of the inventory is determined by reducing the sales value of the inventory by the appropriate percentage gross margin. The percentage used takes into consideration inventory that has been marked down to below its original selling price. An average p e rc e nta ge fo r e a c h reta i l department is often used.

12. How are reversals to written down inventories been valued and disclosed in financial statements?

Ans: In such a situation the previous write down is reversed subject to original reversal and the inventory is valued at lower of cost or revised net realizable value. Reversals are automatically reflected through lower figure of ‘raw materials consumed’ or ‘cost of goods sold’. Separate disclosure of reversals can be given by way of notes. There is no need to give separate credit on the face of statements of income(Para 36(f)).

Compiled by CA. Ashok Thakkar

ICAI Updates

1 Study Group to streamline and render more services by practising Chartered Accountants engaged as l e c t u r e r s i n c o l l e g e s a n d institutions.

The President, in terms of the authority given to him by the Council at its 314th meeting held from 10th to 12th February, 2012, has constituted a Study Group comprising of the fol lowing members, to streamline and render more services by practis ing

Chartered Accountants engaged as lecturers in colleges and institutions at Graduate and Post Graduate levels all over the country: (Council Affairs/M-626/2012)

Shri Vijay Kapur, Director, Board of Studies would act as Secretary to the aforesaid Group. CA. Namrata Khandelwal, Secretary, Professional Development Committee will assist the Secretary to the said Study Group.

The terms of the reference of the said Study Group are as under:-

• To identify the members who are engaged as Full-time / Part-time teaching faculty in Colleges / Institutions.

• To find out ways and means to streamline and render more services by practicing Chartered Accountants engaged as lecturers in colleges and institutions for practical subjects like Accounting, Auditing, Taxation etc. as Expert Faculties, which is expected to reduce the gap between theory and practice and make commerce education more meaningful, practical and effective.

• To study the Rules and Regulations of University Grants Commission (UGC) and all India Council for Technical Education (AICTE) as regards the appointment of CAs as teaching faculty.

• To submit Report with findings and recommendations to the President, ICAI.

For more details members can contact Dr. Vi jay Kapur, on [email protected] (Source – www.icai.org)

2. Chartered Accountants – Entry to Civil Service

1 I am directed to refer to your letter dated 10th June, 1992. Addressed to s e c re ta r y, U n i o n P u b l i c Service Commission on the subject

(Ref : Letter no F.20/1/92-E.I(B), Dt. 29-Jun-1992- by Kum B K Teja, D y . S e c . U P S C , http://220.227.161.86/27160ICAI-UPSC.pdf)

mentioned above and to say that as per existing rules for the Civil S e r v i c e s E x a m i n a t i o n , t h e prescribed basic educational qualification for admission to this Examination is degree of a recognized University or an equivalent qualification. Candidates Possessing professional and technical qualifications which have b e e n r e c o g n i z e d b y t h e Government as equivalent to a professional /technical degree are also eligible for examination. As per orders issued by government of India, a pass in the final examination for Membership Of the Institute of Chartered Accountants of India has been recognized for recruitment to superior Services/Posts under the government. Accordingly, the c a n d i d a te s p o s s e s s i n g t h i s qualification are eligible for admiss ion to c iv i l serv ice Examination , which is conducted by the commission for recruitment to IAS , IPS and other group ‘A’/ group ’B’ Central Services/Posts.

2. The scheme for the Civil Service Examination comprises of two successive stages

a) C iv i l Ser v ices (Pre l iminar y) Examination And

b) Civil Service (Main) Examination.

In Civil Service (Preliminary) Examination, a candidate is required to choose one optional subject From among the 22 listed Optional S u b j e c t s w h i c h i n c l u d e s ‘Commerce’ as one of the Subjects. In so far as the Civil Service (Main) Examination is concerned a candidate is required to choose Two Optional subjects from a listed of 47 optional subject among which ‘commerce and Accountancy ‘ is one of the optional subjects.

A copy of the commission’s Notice for the Civil Services Examination, 1992 which inter- Alia includes eligibility conditions, scheme and syllabi for the Examination is enclosed for your Reference .

Source www.icai.org


NewsLetter


Appeal for the

Financial AssistanceScheme for CA StudentsDear Members,

The Baroda Branch of WIRC of ICAI has a strong tradition of providing CA Students of Baroda, the best tools and support in achieving their goal of becoming Chartered Accountants. With the active help of its Members, the Baroda Branch of WIRC of ICAI has been since past few years providing needy CA Students with financial assistance so as to enable them to meet a part of their estimated education costs.

• Financial Assistance would be available to eligible Students at all levels as under:

oCPT Students : Rs. 3,000/- oIPCC Students : Rs. 10,000/- oFinal Students : Rs. 10,000/-

The above financial assistance has been computed with an aim of e n a b l i n g s t u d e n t s t o m e e t approximately 50% of their fees through such financial assistance.

The Branch seeks its Members’ active support in successful continuation of the above Scheme. Members who would l ike to contr ibute towards the Earmarked Funds for financial assistance to CA Students or Members who would like to provide direct financial assistance to IPCC Students & Final Students may kindly contact CA Pradeep Agrawal, Chairman (9327243479). The Branch shall be maintaining a list of such members and on receipt of request of financial assistance from students, after evaluating their eligibility, the Branch shall refer such student to the Member, who then shall provide direct financial assistance to such student under intimation to Branch.

Again, I seek your valued support and

Sr. Names Amt. `

1 CA. A.R.MANNAN 10000

2 CA. ASHOK THAKKAR 10000

3 CA. BHARAT PARIKH 10000

4 CA. DARSHAN BHUTWALA 10000

5 CA. DHRUV AGRAWAL 10000

6 CA. DIVYESH MEHTA 10000

7 CA. JAYESH MEHTA 10000

8 CA. JYOTENDRA PATEL 20000

9 LATE CA. K.N. MEHTA 10000

10 CA. MANISH BAXI 20000

11 CA. MAYUR SWADIA 20000

12 CA. NEENA PATEL 52000

13 CA. RAHUL PARIKH 10000

14 CA. S.R. PARIKH 20000

15 CA. VINOD J KANSARA 9000

Worthy

Contributors - 2012

request you to contribute generously to this noble initiative.

CHOME

Loan provided : Construction & purchase of house/flat. And Takeover of housing loans form other banks & Institutions.

Eligibility : Individuals aged 18 - 60 yrs

Loan Amount : Max Rs.5 Crore in Metro, Rs.50 lakh in urban centers & Rs.25 lakh in semi urban / rural centers.

CVEHI

Loan for : Brand new 4 & 2 wheelers for personal & professional use

Eligibility : Annual net income of Rs.1.2 lakh for 4 wheelers & Rs. 50,000 for 2 wheelers

Loan Amount : Up to Rs.1 lakh for 2 wheelers & Rs.1 cr for 4 wheelers & Rs.5cr for water transport/heavy vehicles

Margin : 25% for 2 wheelers & 15-20% for other vehicles

Experience the Difference with India's Most Customer Friendly Bank

For any Query please feel free to contact:

• Sakshi Jain Marketing Officer (Zonal Office Vadodara) – 0265 – 2343654

• Shalini Ambastha Marketing Officer (Zonal Office Vadodara) – 0265 -2343655

• U Sripathi (AGM) Alkapuri Branch – 0265-2343034/2337319

• Ashok Mahapatra (SM) Old Padra Road Branch– 0265- 2350165/2350936

• K Chandrashekar (SM) Dandia Bazar Branch - 0265- 2411908/2431998

• RadhaKrishnan (BM) Manjalpur Branch – 0265- 2634526/263283

Corp Home Scheme

Up to 30 years

Up to Rs.50 lakhs

Rs. 50 to Rs.1 crore

Above Rs.1 crore

10.50% 10.75% 11.00%

Floating Interest Rate

Up to 3 years

3-5 years

5-7 years

11.25%

Corp Vehicle Scheme

11.75%

Interest


NewsLetter



NewsLetter


PHOTO FLASH

“The chartered Accountants by virtue of their qualification, experience and training can render valuable services in these difficult times in areas which are vital to economics and industrial growth. It should be the duty of the members of the profession in the present context to approach the problems in an objective and pragmatic manner. Apart from examining accuracy of transactions, the modern auditor should also look into the propriety of such transactions… the profession has to develop uniform accounting principles, standard terminologies and precise definitions of various accounting concepts.

This was desirable from the point of view of providing reliable information in financial statement for the benefit of the intending investors, members of the public, government agencies and financial Institutions. This will enable individuals and organization to form a fairly accurate judgment of the financial positions by a study of the audited financial statement of companies.”

(Inauguration of first ever Commonwealth Conference of Accountants held in New Delhi from 6 to 8.02.1975)

Shri Fakhruddin Ali Ahmed, President Of India, 1975

Compiled by CA. Abhijit J. KotechaIMPORTANT DUE DATES OCTOBER 2012

DATES COMPLIANCE PERIOD

05.10.2012 Payment of Service Tax - Monthly & Quarterly Cases / Excise Duty (for NON SSI) Sept.'12, Q2 (F. Y.: 2012-13)

06.10.2012 E-Payment of Service Tax - Monthly & Quarterly Cases / Excise Duty (for NON SSI) Sept.'12, Q2 (F. Y.: 2012-13)

07.10.2012 TDS payment / E-Payment Sept.'12

09.10.2012 VAT / CST E-Return - Monthly (For VAT or CST > ` 5,000/-) July'12

15.10.2012 TDS Return / E-return - Quarterly Q2 (F. Y.: 2012-13)

15.10.2012 Payment of Professional Tax / PF / Excise Duty (for SSI) Sept.' 12

16.10.2012 Excise Duty E-Payment (for SSI) Sept.'12

22.10.2012 VAT / CST payment / E-payment - Monthly & Quarterly Cases Sept.'12, Q2 (F. Y.: 2012-13)

25.10.2012 Service Tax Return / E-return (for Other than Input Service Distributors) / April'12 - Sept.'12; Sept.'12PF Return (Monthly)

29.10.2012 Filing Balance Sheet and Profit & Loss A/c. of Companies with ROC Fin. Yr.: 2011-12

30.10.2012 VAT / CST E-Return - Monthly (For VAT or CST <= ` 5,000/-) August' 12

30.10.2012 VAT - Quarterly Return for Regular / Lumpsum tax payers (For Manual Return) Q2 (F. Y.: 2012-13)

30.10.2012 TDS Certificate issuance - Form 16A (for other than Salary cases) Q2 (F. Y.: 2012-13)

30.10.2012 Service Tax E-return April ’12 to Sept.‘12

Lacture Meeting on 01.09.2012 by Shri Yashodar Thakar, Baroda Campus Placement on 04.09.2012

Inter School Branch Level Debate Competition on 28.09.2012

WICASA EVENT


NewsLetter


If undelivered, please return to :

Baroda Branch of WIRC of The Institute of Chartered Accountants of India

www.baroda-icai.org WIRC : www.wirc-icai.org ICAI: www.icai.orgl l

DISCLAIMER : The ICAI and the Baroda Branch of WIRC of ICAI is not in any way responsible for the result of any action taken on the basis of the advertisement published in the Newsletter. The members, however, may bear in mind the provisions of the Code of Ethics while responding to the advertisements. The views and opinion expressed or implied in the Newsletter are those of the authors / contributors and do not necessarily reflect those of Baroda Branch. Unsolicited matters are sent at the owner's risk and the publisher accepts no liability for loss or damage. Material in this publication may not be reproduced, whether in part or in whole, without the consent of Baroda Branch. Members are requested to kindly send material of professional interest to [email protected]/[email protected]. The same may be published in the newsletter subject to availability of space & editorial editing.

Back Cover (4 color) 10,000 Inside Front/ Cover (4 color)Back 7,500 Full Page (1 Color) 5,000 Half Page (1 Color) 3,000

ADVERTISEMENT TARIFF : * Discount - 3 to 6 issue of 10%, 7 to 12 issue 15% * Circulated to more than 1800 Chartered Accountants

ADVERTISEMENTS : The tariff for advertising given below are duly approved by the Managing Committee of the Baroda Branch. Advertisements are received directly by the Branch and no advertising agency has been appointed for this purpose.

SUBSCRIPTION RATES : This Newsletter is circulated without any charges to its members and other important categories of recipients as per ICAI Advisory on Newsletters. Subscription rate is Rs. 20/- per issue for others.

PRINTED AND PUBLISHED BY : CA. Pradeep Agrawal on behalf of Baroda Branch of WIRC of ICAI. Published at “ICAI Bhawan”, Kalali-Tandalja Road, Atladra, Vadodara - 390 012

Printed at Multiprints, 30/B, Gandhi Oil Mill Compound, Near BIDC, Gorwa, Vadodara - 390016. Ph.: 0265-2285592

“ICAI Bhawan”, Kalali-Tandalja Road, Atladra, Vadodara - 390 012.

Telefax : +91 265 2681115 / 2680593 E-mail: [email protected]

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