JULY 2013 1 7, Jolly Bhavan #2, New Marine Lines, Mumbai - 400020. Tel : + 91 22 613 77 600 ; F : + 91 22 613 77 666 ; Email: [email protected] ; Website : www.bcasonline.org ; WebTV : www.bcasonline.tv President: Naushad A. Panjwani 98200 59048 | [email protected]Vice-President: Nitin P. Shingala 98200 57694 | [email protected]Hon. Jt. Secretary: Raman H. Jokhakar 98208 77976 | [email protected]Hon. Jt. Secretary: Mukesh G. Trivedi 9820182456 | [email protected]Hon. Treasurer: Chetan M. Shah 98202 23402 | [email protected]Vice-President’s Communiqué Dear Members, Aware of the very rich heritage of the Bombay Chartered Accountants’ Society, I feel humbled and privileged as I assume responsibility as Vice President from the conclusion of the 64th Annual General Meeting on 6th July 2013. The BCAS has greatly inspired, moulded and supported my professional development for which I will ever remain in gratitude to the Society and the seniors. I will do my best to live up to the expectations and keep the BCAS flag flying high. Led by the innovative Naushad Panjwani, our team of office bearers is committed to achieve the Annual Plan presented at the AGM which has added focus on greater use of technology, programmes in the suburbs and several cities and special activities for under-35 members. We look forward to your wholehearted support and participation. This space gives me a fantastic opportunity to communicate and connect with over 9,000 members along with numerous students and other readers. I plan to highlight the progress in achieving the mission and discuss issues pertaining to your interests. The lecture meeting on “Filing of Returns for A. Y. 2013-14 - Amendments & Precautions and special emphasis on new Uploading” by Past President Ameet Patel held on 3rd July at K. C. College evoked overwhelming response. The auditorium, Vol. 16 n No. 4 n July 2013 Harnessing Talent and Providing Quality Service A Monthly Newsletter of the Bombay Chartered Accountants’ Society BCAS Newsletter For Members only. For Private Circulation only. Price: R10 PROGRAMMES AT A GLANCE DATE VENUE PAGE NO. despite its enormous capacity, was overflowing. This shows that programmes on timely topics by good speakers continue to command excellent response. The e-delivery of taxpayer services is part of the Government's National e-Governance Action-Plan. Let us hope that this initiative will be extended to enhance the quality of tax administration by increasing accountability. One measure would be to improve performance evaluation mechanism for tax officers by helping to reduce the number of unreasonable demands ( which in many cases are set aside). This move will boost the national exchequer and eliminate the hardships faces by honest taxpayers. At the Foundation Day Lecture Meeting, eminent speaker Mr. Nasser Munjee guided us on our larger responsibility as Citizens and Professionals on the path of The Nationhood – The I.P.C.C. & Final C.A....................................................................................25-07-2013 to 30-9-2013 ............................. Sydenham College, Churchgate, Mumbai ...................................................... 6 Workshop on ‘How to conduct a Tax Audit’.………. ...................02-08-2013…………………………... ...................... Navinbhai Thakkar Auditorium, Vile Parle, Mumbai………….… ............ …. 3 Tree Plantation Visit to Dharampur.….………………… .....................02-08-2013 & 03-08-2013 .......................................................................................................................................................................... 5 Six Day Internal Audit Studies Foundation Course................. 19-08-2013 to 24-08-2013……. .................. Parle International Hotel, Vile Parle, Mumbai ............................................... 4 Full-day Seminar on Transfer Pricing as Applicable to Specified Domestic Transactions Crash Courses ............. 07-09-2013................................................... Y.B. Chavan Pratishthan, Nariman Point, Mumbai .................................. 3 Seminar on NBFC Regulations .................................................. .11-09-2013 .......................................................... Walchand Hirachand Hall, Churchgate, Mumbai ........................................ 4 Lecture Meeting .......................................................................... 04-09-2013.. ................................................................................................................................................................................... 1 LECTURE MEETING *Fellowship over a cup of tea at 5.15 p.m. Venue : Rama Watumall Auditorium, K.C. College, 124, Dinshaw Vaccha Road, Churchgate, Mumbai-400020 Day, Date & Time: Wednesday, 4th September 2013, 5.30 p.m. to 8.00 p.m.* Speaker : Narendra P. Sarda Subject: Developments in Accounting Standards - In India and Globally. (Continued on page 2)
Aware of the very rich heritage of the Bombay Chartered Accountants’ Society, I feel humbled and privileged as I assume responsibility as Vice President from the conclusion of the 64th Annual General Meeting on 6th July 2013. The BCAS has greatly inspired, moulded and supported my professional development for which I will ever remain in gratitude to the Society and the seniors. I will do my best to live up to the expectations and keep the BCAS flag flying high.
Led by the innovative Naushad Panjwani, our team of office bearers is committed to achieve the Annual Plan presented at the AGM which has added focus on greater use of technology, programmes in the suburbs and several cities and special activities for under-35 members. We look forward to your wholehearted support and participation.
This space gives me a fantastic opportunity to communicate and connect with over 9,000 members along with numerous students and other readers. I plan to highlight the progress in achieving the mission and discuss issues pertaining to your interests.
The lecture meeting on “Filing of Returns for A. Y. 2013-14 - Amendments & Precautions and special emphasis on new Uploading” by Past President Ameet Patel held on 3rd July at K. C. College evoked overwhelming response. The auditorium,
Vol. 16 n No. 4 n July 2013
Harnessing Talent and Providing Quality Service A Monthly Newsletter of the Bombay Chartered Accountants’ Society
BCASNewsletterFor Members only. For Private Circulation only. Price: R10
PROGRAMMES AT A GLANCE DATE VENUE PAGE NO.
despite its enormous capacity, was overflowing. This shows that programmes on timely topics by good speakers continue to command excellent response.
The e-delivery of taxpayer services is part of the Government's National e-Governance Action-Plan. Let us hope that this initiative will be extended to enhance the quality of tax administration by increasing accountability. One measure would be to improve performance evaluation mechanism for tax officers by helping to reduce the number of unreasonable demands ( which in many cases are set aside). This move will boost the national exchequer and eliminate the hardships faces by honest taxpayers.
At the Foundation Day Lecture Meeting, eminent speaker Mr. Nasser Munjee guided us on our larger responsibility as Citizens and Professionals on the path of The Nationhood – The
I.P.C.C. & Final C.A....................................................................................25-07-2013 to 30-9-2013 ............................. Sydenham College, Churchgate, Mumbai ...................................................... 6
Workshop on ‘How to conduct a Tax Audit’.………. ...................02-08-2013…………………………... ...................... Navinbhai Thakkar Auditorium, Vile Parle, Mumbai………….… ............ …. 3
Tree Plantation Visit to Dharampur.….………………… .....................02-08-2013 & 03-08-2013 .......................................................................................................................................................................... 5
Six Day Internal Audit Studies Foundation Course.................19-08-2013 to 24-08-2013……. .................. Parle International Hotel, Vile Parle, Mumbai ............................................... 4
Full-day Seminar on Transfer Pricing as Applicable to Specified Domestic Transactions Crash Courses ............. 07-09-2013 ................................................... Y.B. Chavan Pratishthan, Nariman Point, Mumbai .................................. 3
Day, Date & Time: Wednesday, 4th September 2013, 5.30 p.m. to 8.00 p.m.*
Speaker : Narendra P. Sarda
Subject: Developments in Accounting Standards - In India and Globally.
(Continued on page 2)
BCAS 2
All the three clinics will be held in the Library room of the BCAS office.
BCAS Foundation operates a Right to Information (RTI) Clinic on a regular basis.
The Clinic provides help and guidance to BCAS members as also to non-members, i.e., all citizens, for making applications under the RTI Act and also assists in resolving any related difficulties on the subject of RTI.
The RTI Clinic operates on every 2nd, 3rd and 4th Saturday from 11 a.m. to 1 p.m.
The next RTI Clinic days accordingly are 20th & 27th July and 10th, 17th, 24th & 31st August 2013. Please call to obtain a prior appointment.
RIGHT TO INFORMATION CLINIC
Advisory Panel : Narayan K. Varma, Adv A K Asher, Hema D. SampatClinic Co-ordinator: Vrushali - 6137 7624
Advisory Panel : Ratanshaw J. Damanwala, Shariq M. Contractor, Gautam S. Nayak, Anil J. Sathe, Atul H. ShahClinic Co-ordinator: Vrushali - 6137 7624
ACCOUNTS & AUDIT CLINIC
Advisory Panel : Sanjeev R. Pandit, Himanshu V. Kishnadwala, Jayesh M. GandhiClinic Co-ordinator : Rajaram - 6137 7613
The next Accounts & Audit Clinic
will be held on 3rd August 2013 from
10.30 a.m. to 11.30 a.m.
Persons interested in having their queries
pertaining to accounting and auditing
issues solved are requested to send the
queries by e-mail to asst.em@bcasonline.
org one week in advance and call to obtain
prior appointment, at least a day before
the day of the clinic. Please note that
the panel will not answer any queries
pertaining to tax issues.
Next Steps. The social responsibility of chartered accountants has been well highlighted by late Shri G. P. Kapadia, father of our profession, in the concluding chapter of Vol. I of “History of Accounting Profession in India,” and I quote:
“While service is rendered to the person who engages, the paramount consideration has to be that the approach is ethical and the duties should be so discharged as to merit public appreciation and any malpractices at the hands of the client should not be tolerated and in matters where there is even a semblance of a doubt in his mind about the existence of any malpractice, it should be his bounden duty to stand up against it and to make his comments without fear or favour.”
The BCAS as a principle-centred organization has been a torch bearer of the highest ethical standards and professional integrity and continuously strives towards the same. In search of a better world is a journey where we cannot be passive passengers and have to be active crewmen, helping to guide our destiny. Let us walk together on this path to the Nationhood.
With best wishes,
Nitin P. Shingala
A major source of objection to a free economy is precisely that it … gives people what they want instead of what a particular group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself.
Albert Einstein
““
(Continued from page 1)
JULY 20133
Participants need to send their queries latest by 26th July 2013 for the Brains Trust Session either on the email id [email protected], or a hard copy to the BCAS office before this date.
Enrolment form is printed on page no. 12
Limited seats are reserved for non-members on first-come-first-served basis. Enrolment fees are non-refundable.Enrolment form is printed on page no. 12
TAXATION COMMITTEE INTERNATIONAL TAXATION COMMITTEEChairman : Gautam S. NayakCo-Chairman : Sanjeev R. PanditConvenors : Saurabh P. Shah, Anil D. Doshi and Jagdish T. PunjabiCo-ordinators: Pinky H. Shah and Bhadresh K. Doshi
Chairman : Kishor B. Karia Co-Chairman : Deepak R. Shah Convenors : Suril V. Shah, Dhishat B. Mehta and Gaurang V. Gandhi Co-ordinators: Chetan M. Shah and Natwar G. Thakrar
Workshop on ‘How to conduct a Tax Audit’The audit season is already in full swing and all our offices are
currently completing the statutory audits. Tax Audit is the next
important compliance for most of our clients, and with many new
controversies cropping up in taxation, we at BCAS have organized a
very interesting workshop for articled students, audit staff and fresh
Chartered Accountants.
The eminent faculty will discuss all clauses of Form 3CD, clause by
clause, besides giving an overall perspective of the approach to such
tax audit. This will help participants to understand each clause and
cull out relevant details from the audited accounts.
The unique feature of this very popular workshop is an additional
Brains Trust Session, wherein the participants can send their queries
before the Workshop and a panel of experts would reply to them
during the workshop.
All the participants would immensely benefit from the expert
knowledge of Speakers and members should encourage their staff to
enroll for this workshop.
Programme Details
Day & Date Friday, 2nd August 2013
Time 9.30 a.m. to 5.00 p.m.
Venue Navinbhai Thakkar Auditorium, Shraddanand
Road, Near Shiv Sagar Restaurant, Vile Parle
(East), Mumbai- 400057.
Faculty Himanshu V. Kishnadwala
Anil J. Sathe
Sonalee A. Godbole
Nina P. Kapasi
Fees for members R800 + R 99 (ST) = R899
Fees for non-members
R1,000 + R124 (ST) = R1,124
(Fees include course material, breakfast, lunch, and Rs. 50/- towards contribution to BCAS Foundation)
Full-day Seminar on Transfer Pricing as applicable to Specified Domestic TransactionsTransfer pricing regulations are now applicable to specified domestic transactions between related parties from the assessment year 2013-14. This entails responsibility on taxpayers to apply the most appropriate method for determining the Arm’s length price in respect of such transactions and also to maintain prescribed documents for compliance. This is a long and onerous process similar to the requirements applicable to international transactions. Further, severe penal provisions have also been made applicable for default in compliance. Large number of issues are under debate with regard to applicability as well as for compliance of these provisions.
The taxpayers are also required to furnish accountant’s report in Form No. 3CEB on such transactions by 30 November 2013. This is the first year for establishing the compliance and furnishing such report. First year generally becomes the base for the subsequent years. Considering its importance and the far reaching implications, this Seminar is designed to assist the professionals in appreciating and understanding the practical aspects of analysing and reporting on such domestic transactions.
Topics SpeakersTransfer pricing provisions as applicable to specified domestic transactions
Pinakin D Desai *
Economic, functional and comparability analysis, selection of most appropriate method and analysis and application of methods (CUP and RPM) with practical issues and Case Studies
Vispi T. Patel
Analysis of other methods namely TNNM, PSM, CPM and residuary method with practical issues and Case Studies
T. P. Ostwal
Documentation and Accountant’s report Sudhir N. Nayak
Day & Date Saturday, 7th September 2013
Time 9.00 a.m. to 6.00 p.m.
Venue Y. B. Chavan Pratishthan, Jagannath Bhosale Marg, Near Sachivalaya Gymkhana, Nariman Point, Mumbai – 21
Fees Early Bird till 14th Aug, 2013 After 14th August, 2013
MembersR1,200 + R148 (ST) = R1,348
R1,400 + R173 (ST) = R1,573
Non-members
R1,500 + R186 (ST) = R1,686
R1,700 + R210 (ST) = R1,910
(Fees include course material, breakfast, lunch, and Rs. 50/- towards contribution to BCAS Foundation)
* Early bird offer valid on receipt / entered at BCAS office on or before 14th August 2013
*Confirmation awaited.
BCAS 4
ACCOUNTING & AUDITING COMMITTEE ACCOUNTING & AUDITING COMMITTEEChairman: Harish N. MotiwallaCo-Chairman: Kanu S. ChoksiConvenors: Abhay R. Mehta, Jayesh M. Gandhi and Manish P. SampatCo-ordinators: Himanshu V. Vasa, Atul H. Shah and Preeti S. Cherian
Chairman: Harish N. MotiwallaCo-Chairman: Kanu S. ChoksiConvenors: Abhay R. Mehta, Jayesh M. Gandhi and Manish P. SampatCo-ordinators: Abhay R. Mehta and Manish P. Sampat
Six Day Internal Audit Studies Foundation CourseThe Accounting & Auditing Committee has arranged a Six Day Internal Audit Studies Foundation Course. Details of the Course are as follows:
• 6 days of Intensive Coaching.
• Interactive Full day Sessions from Monday, 19th August, 2013 to Saturday, 24th August, 2013, 9.30 a.m. to 6.30 p.m.
• Coursecontent includes: • InternalAuditOverview,PositioningofInternal Audit in Corporate Framework, Internal Audit Standards, Internal Controls, Risk Management, Internal Audit Methodology, Soft skills and Use of IT tools.
• Fees: Rs 9,500 + Rs. 1,174 (ST) = Rs. 10,674 per participant. Early Bird up to 31st July 2013 : Rs 9,000 + Rs. 1,113/- (ST) = Rs. 10,113
per participant. More than 3 participants from the same firm @ Rs 8,500 + Rs. 1,050 (ST) = Rs. 9,550 per participant until 31st July 2013.The fees include Rs. 50 Contribution to BCAS Foundation, course material, breakfast, tea and lunch on all days.
• Enrolment is restricted to 60 participants on first-come-first-serve basis. Enrolment fees are non-refundable.
• A Certificate will be awarded on completing IAS Foundation course.
• Course will be conducted at Parle International Hotel, B. N. Agarwal Market, Vile Parle (East), Mumbai, 400057
• Eligibility: Should be members of BCAS (or any persons nominated by a member).
INTERNAL AUDIT, a core management function, has assumed great importance in presenting times where the success of organization depends on effective risk management, strong framework of internal controls and optimum utilization of resources. It is therefore essential to have a structures training programme to enable Internal Audit Professional, whether engaged in industry or in professional firms rendering internal audit services, to hone their skills and provide value added services. Internal Audit is as relevant to small and medium sized enterprises as it is to large scale enterprises.This course has been designed to meet the following objectives:
• To equip participants with basic internal audit skills for conducting effective Internal Audits.
• To create awareness about the contemporary thinking in the field of Internal Audit.
• To facilitate quality internal Audit Services.
For Further Details Contact:
Designation Name Telephone Mobile
Co-ordinators Himanshu V. Vasa 66054272 9819221155
Atul H. Shah 66348474 9820187022
Preeti S. Cherian 64577600 9821343354
Seminar on NBFC Regulations (Including Audit Aspects)Recently there has been a significant emphasis on inclusive growth whereby Non-Banking Financial Companies (NBFCs) are playing a vital role in bringing remote areas into the fold of banking sector, by creating awareness of various savings/lending products. They are playing a supplementary role for banking industry, by reaching out to people and areas where normal banking channels have been unable to penetrate. Realising the importance of their role and also to have a systematic and structured growth of the NBFC sector, Reserve Bank of India has made NBFCs highly regulated entities. There are many statutory/reporting compliances to be adhered to, especially if they are accepting deposits from the public. NBFCs perform financial intermediation in a variety of ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc. It is a specialised area of operations and keeping oneself abreast with the domain knowledge of the functions, operations, regulations and statutory compliances of NBFCs is necessary for handling matters relating to NBFCs.BCAS since last four years, with a view to sharpen the skills of participants in this specialised area of NBFCs and also to create awareness amongst the young entrants in the profession of CA regarding the opportunities in NBFC sector, has been organising seminar on NBFCs. Through such programs, BCAS also achieves its vision of being facilitator in imparting knowledge in specialized areas to its members and public at large. The response to the seminar over last four years encourages BCAS this year also to organise a Seminar on NBFC Regulations (including Audit Aspects). The Seminar will be addressed by experts dealing with the subject matter regularly and having in depth knowledge to share. The details of the seminar is as follows:
Session 1 Recent Developments in NBFC Regulations
Mrs. Archana Mangalagiri, GM, RBI, Department of Non-Banking Supervision
Session 2 Public Deposits, RBI Regulations for NBFCs & CIC (Reserve Bank) Directions, 2011
Anup P. Shah
Session 3 Audit procedures and reporting in NBFCs
Viren B. Mehta, (Confirmation Awaited)
(Fees include course material, breakfast, lunch, and Rs. 50/- towards contribution to BCAS Foundation)
HUMAN RESOURCES COMMITTEEChairman : Mayur B. NayakConvenors : Bharatkumar K. Oza, Hemant P. Gandhi and Mihir C. ShethCo-ordinators: Krishna Kumar Jhunjhunwala and Meena H. Shah
Tree Plantation - Visit to DharampurDear Esteemed Friends,
We are back here for all nature lovers & environment conscious friends.
We have decided to contribute towards the conservation of Nature
by being instrumental in plantation of about 25,000 trees in the tribal
areas of Dharampur District, South Gujarat. This huge noble task
will be carried out with the help of the Sarvodaya Parivaar Trust, (A
Gandhiyan philosophy based NGO), who in their endeavor to take care
of the environmental crisis & also promoting the rural development, is
regularly undertaking the activity of tree plantation in order to create the
wonderful “Gramyavan” around Dharampur.
We are also planning to go for few captive plantations on the farmer’s
field which would generate income for them in future.
Here is an opportunity to contribute your bit to conserve Nature & also to
the rural economic development.
The Contribution per tree is of Rs 6/- (Minimum 100 trees). Those who
wish to contribute towards this yagna can send their contribution by
cheque favouring “Sarvodaya Parivaar Trust”.
Those of you who are interested in planting trees by yourself are welcome
to join us for a two day visit to Dharampur and surrounding areas on
2nd & 3rd August 2013, on a self contributory basis.
Other details of the visit are as follows:
Contribution: Rs 1685/- (Including Service Tax) per person to be payable
to BCAS.
Travel and Stay: Travel by train (in a IInd Class compartment) from
Mumbai to Valsad on Friday morning (2nd August 2013) and return on
Sat. evening ( 3rd August 2013)
Stay at Shantidham (Bandhu Triputi’s Ashram) at Valsad, (Expect simple
living and simple food)
Please note that the visit is open to your family and friends. Maximum
15 persons will be enrolled on first come first serve basis. Please
register before 20th July 2013 in order to enable us to make the proper
travel arrangement.
We hope you will not miss this opportunity of repaying your debt to the
society at large.
BCA Referencer 2013-1451 years of BCAS Referencer!
...............................................................................................................................................................Tel. Nos :. ......... . ........................................Office : ....................................................................
Mobile : ………………………………… ................................................................................................... E-mail : ……………...................................................................................………………………. ..........
Cash/Draft/Cheque No :…………..… ................................Drawn on :………………………… ...................................................Bank Dated : ...............................................................................
Referencer Premium Set (in exclusive folder) with CD, Table diary and Pocket diary
950 200
Referencer Premium Set (in exclusive folder) with CD and Pocket diary only
750 150
Referencer Refill Set with CD, Table Diary and Pocket Diary 650 150
Referencer Refill Set with CD, and Pocket Diary only 500 150
Super Saver Edition with CD (Bound Edition with Diary) 500 150
Order Form:
BCAS 6
I.P.C.C. & Final C.A. Students’ Education Crash Courses
(Jointly with Western India Regional Council of The Institute of Chartered Accountants of India) (For November 2013 and May 2014 Examinations)
"We had joined the Revision Course, which has proved very much helpful to us. We cleared both groups in First Attempt "Miss Janhavi Thatte & Miss Komal Jain
HUMAN RESOURCES COMMITTEE
Chairman : Mayur B. Nayak
Convenors : Bharatkumar K. Oza, Hemant P. Gandhi and Mihir C. Sheth
Co-ordinators : Chandrakant Ruparelia and Neel P. Majithia
FEES : Rs. 1,686/- (including Service Tax 12.36%) per student for I.P.C.C or Final (Total, and not per Subject, Including cost of Study Materials)
TIMINGS & VENUE : 6.15 p.m. to 8.30 p.m. on weekdays (Monday to Friday) at Sydenham College, ‘B’ Road, Churchgate.
DURATION : From 25th July to 30th September, 2013.
ENROLMENT FROM : 25th April, 2013.
FACULTY : Eminent personalities possessing rich experience in their respective fields.
For further information kindly contact Mr. Amit Singh or Mr. Rajaram on Phone 61377619 and 61377613 respectively during office hours at Bombay Chartered Accountants’ Society.
COURSES FOR : C.A. I.P.C.C.
•Accounting/AdvancedAccounting
•Business&CompanyLaws
•CostAccounting&F.M.
•Taxation
•Auditing&Assurance
•InformationTechnology&StrategicManagement
COURSES FOR : C.A. FINAL
•FinancialReporting
•StrategicFinancialManagement
•AdvancedAuditing
•Corporates&AlliedLaws
•AdvancedManagementAccountancy
•InformationSystemsControlandAudit—DirectTaxes
•IndirectTaxes
JULY 20137
BCAS PUBLICATIONS/ STUDY MATERIAL FOR SALE
Exploring FEMAPrice R 225Postage R 75
6th Residential Study Course on Service Tax & VAT 2012Price R 600Postage R 100
Study Material DVD on Seminar on NBFC Regulations (Including Audit and Tax Aspects) held on 30th August 2012 Price R 1250Postage R 50
Real Estate LawsPrice R 180Postage R 100
Digest of Full Bench Decisions of Central Information Commission (r2i)Member Price R 120 Non-Member Price R 150Postage R 50
CA Firm of the FutureMember Price R 200 Non-Member Price R 250Postage R 100
RECENT PUBLICATIONS
OTHER PUBLICATIONS
Gita for ProfessionalsPrice R 100Postage R 50
Advance Rulings Law and Procedures - A CompilationPrice R 125Postage R 50
Registration of Firms with Registrar of Firms – Procedure and Frequently faced Problems*Price R 50Postage R 25
Laws & Business – A Compendium (4th Edition)(published under the auspices of Late Shailesh Kapadia Memorial Publication Fund)Member Price R400 Non-Member Price R400Postage R200
Audit Checklist for Companies (CD Free) (Edition 2013) Member Price R400 Non-Member Price R500Postage R200
Right to Know –The Right to Information Act, 2005 Set of 5 Booklets for Rs. 25/- for Members & Non MembersPostage R25 for set of 5 booklets
BCAS 8
A. P. (DIR Series) Circular No. 108 dated June 11, 2013Export of Goods and Services – Realization and Repatriation period for units in Special Economic Zones (SEZ)Presently, there is no time limit for realization and repatriation of export proceeds in respect of exports made by units in SEZ.
This circular provides that exporters in a SEZ must now realize and repatriate within a period of twelve months from the date of export the full value of goods / software / services exported by them. In case they require any extension of time beyond the above stipulated period they have to obtain specific permission of RBI.
A. P. (DIR Series) Circular No. 109 dated June 11, 2013Processing and Settlement of Export related receipts facilitated by Online Payment Gateways – Enhancement of the value of transactionPresently, banks can offer facility to repatriate export related remittances by entering into standing arrangements with Online Payment Gateway Service Providers (OPGSP) for export of goods and services for value not exceeding US $ 3,000 per transaction.
This circular has increased this limit from US $ 3,000 to US $ 10,000 per transaction. Hence, banks can now offer facility to repatriate export related remittances by entering into standing arrangements with Online Payment Gateway Service Providers (OPGSP) for export of goods and services for value not exceeding US $ 10,000 per transaction.
A. P. (DIR Series) Circular No. 110 dated June 12, 2013Foreign Direct Investment – Reporting of issue / transfer of Shares to/by a FVCIPresently, transfer of equity shares / fully and mandatorily convertible debentures / fully and mandatorily convertible preference shares (hereinafter referred to as ‘shares’) of an Indian company, from a non-resident to a person resident in India (resident) or vice versa, has to be reported to RBI, through the bank, within 60 days of the transaction. Also, receipt of consideration for issue of shares of an Indian company, to a non-resident has to be reported to RBI, through a bank, within 30 days from the date of receipt.
This circular has amended Form FC-GPR & Form FC-TRS by inserting the following remarks in para 3(4) and 5(a)(4) of form FC-GPR and para 4(4) and para 5(4) of form FC-TRS: -
‘The investment/s made by SEBI registered FVCI is / are under FDI Scheme, in terms of Schedule 1 to Notification No. FEMA 20 dated May 3, 2000.’
This circular also clarifies that whenever a SEBI registered FVCI acquires shares of an Indian company under FDI Scheme in terms of Schedule 1 of Notification No. FEMA 20 / 2000-RB dated May 3, 2000 such investments have to be reported in form FC-GPR / FC-TRS only. When investment is made in terms of Schedule 6 of the Notification No. FEMA 20 / 2000-RB dated May 3, 2000 no FC-GPR / FC-TRS needs to be filed. Such transactions have to be reported by the custodian bank in the monthly reporting format as prescribed by RBI from time to time.
FROM RBIContributed by : Gaurang V. Gandhi
The Reserve Bank of India has issued the following 14 circulars
Annexed to this circular are the revised forms FC-GPR and FC-TRS.
A. P. (DIR Series) Circular No. 111 dated June 12, 2013Foreign investment in India by SEBI registered Long term investors in Government dated SecuritiesPresently, SEBI registered Foreign Institutional Investors (FII), Qualified Foreign Investors (QFI) and long term investors can purchase, on repatriation basis, Government securities up to US $ 25 billion and non-convertible debentures (NCD) / bonds issued by an Indian company up to US $ 51 billion.
This circular has increased the limit for investment in Government securities by US $ 5 billion from US $ 25 billion to US $ 30 billion. This additional limit of US $ 5 billion is available to long term investors registered with SEBI viz. Sovereign Wealth Funds (SWFs), Multilateral Agencies, Pension/ Insurance/ Endowment Funds, Foreign Central Banks.
A. P. (DIR Series) Circular No. 112 dated June 20, 2013Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSRWith effect from June 5, 2013 the Rupee value of the Special Currency Basket has been fixed at Rs. 75.705663 as against the earlier value of Rs. 73.141761.
A. P. (DIR Series) Circular No. 113 dated June 24, 2013External Commercial Borrowings (ECB) for the low cost affordable housing projectsPresently, Developers / Builders, Housing Finance Companies (HFC) & National Housing Bank (NHB) can avail of ECB for financing low cost affordable housing under the Approval Route.This circular has modified the guidelines as under: -
GeneralThe aggregate limit for ECB under the low cost affordable housing scheme for the financial years 2013-14 and 2014-15 has been fixed at US $ 1 billion per year. This limit will be reviewed thereafter.
Developers / Buildersi. Developers / builders must have at least 3 years’ experience in
undertaking residential projects (as against the earlier requirement of 5 years’ experience) and must also have a good track record in terms of quality and delivery.
ii. The ECB availed of must be swapped into Rupees for the entire maturity on fully hedged basis.
National Housing bank (NHB)NHB must decide the interest rate spread after taking into account cost and other relevant factors. However, NHB has to ensure that interest rate spread for HFC for on-lending to prospective owners’ of individual units under the scheme is reasonable.
Housing Finance Companies (HFC) Henceforth, HFC are required to have minimum Net Owned Funds (NoF) of Rs. 300 crore for the past three financial years only, as the condition requiring a minimum paid-up capital of not less than INR 50 crore, as per the latest audited balance sheet has been withdrawn by this circular. HFC while making the application for ECB must: -i. Submit a certificate from NHB that ECB is being availed for financing
prospective owners of individual units for the low cost affordable housing.
ii. Ensure that the cost of such individual units does not exceed Rs. 30 lakh and loan amount does not exceed Rs. 25 lakh.
iii. Ensure that the units financed have a maximum carpet area of 60 square metres.
JULY 20139
Developers / builders must have at least 3 years’ experience in undertaking residential projects (as against the earlier requirement of 5 years’ experience) and must also have a good track record in terms of quality and delivery.
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A. P. (DIR Series) Circular No. 114 dated June 25, 2013External Commercial Borrowings (ECB) Policy for 3G spectrum allocationPresently, payment for spectrum allocation that has been initially met out of the Rupee resources by the successful bidders can be refinanced by availing long term ECB, under the approval route, within 12 months from the date of payment of the final installment to the Government.
This circular provides that successful bidders of 3G spectrum can avail of ECB up to March 31, 2014 for refinancing rupee loans that are still outstanding in their books of accounts.
A. P. (DIR Series) Circular No. 115 dated June 25, 2013Buyback / prepayment of Foreign Currency Convertible Bonds (FCCBs)This circular has extended the last date of the existing scheme for Buyback / Prepayment of FCCB, under the approval, route to December 31, 2013 from March 31, 2013.
A. P. (DIR Series) Circular No. 116 dated June 25, 2013External Commercial Borrowings (ECB) for Civil Aviation SectorPresently, the Civil Aviation sector could avail of ECB for working capital purposes for within 12 months from the date of issue of the erstwhile circular (i.e. A.P. (DIR Series) Circular No. 113 dated April 24, 2012).
This circular has extended the said period and hence, the Civil Aviation sector can now avail of ECB for working capital purposes up to December 31, 2013.
A. P. (DIR Series) Circular No. 117 dated June 25, 2013External Commercial Borrowings (ECB) in Renminbi (RMB)This circular states that the facility of availing of ECB in Renminbi (RMB) has been discontinued with immediate effect.
A. P. (DIR Series) Circular No. 118 dated June 26, 2013Export of Goods and Services – Project ExportsPresently, exporter undertaking Project Exports and Service contracts abroad are required to submit form DPX1, PEX-1 and TCS-1 to the
Approving Authority (AA) i.e. Bank / Exim Bank / Working Group, within 15 days of entering into contract for grant of post-award approval.
This circular has extended the said period to 30 days from the present 15 days, Hence, exporter undertaking Project Exports and Service contracts abroad can now to submit form DPX1, PEX-1 and TCS-1 to the Approving Authority (AA) i.e. Bank / Exim Bank / Working Group, within 30 days of entering into contract for grant of post-award approval.
A. P. (DIR Series) Circular No. 119 dated June 26, 2013External Commercial Borrowings (ECB) Policy – Import of Services, Technical know-how and License FeesPresently, eligible borrowers can avail of ECB for import of capital goods for new projects / modernization / expansion of existing production units in the real sector, infrastructure sector and service sector.
This circular permits eligible borrowers to avail ECB (under the Automatic Route / Approval Route, as the case may be) for import of services, technical know-how and payment of license fees as part of import of capital goods by the companies for use in the manufacturing and infrastructure sectors as permissible end uses of ECB, subject to the following: -(i) There must be a duly signed agreement between the service provider
and the borrower company.(ii) The original invoice raised by the service provider as per the payment
schedule in the agreement must be duly certified by the borrower company.
(iii) The importer must give a declaration to the effect that the entire expenditure on import of services will be capitalized.
(iv) The importer must give a declaration to the effect that the entire expenditure on import of services forms part of project cost.
(v) Bank has to ensure the bonafides of the transaction.
A. P. (DIR Series) Circular No. 120 dated June 26, 2013External Commercial Borrowings (ECB) Policy – Structured ObligationsPresently, credit enhancement can be provided by multilateral / regional financial institutions, Government owned development financial institutions, direct / indirect foreign equity holder(s), under the automatic route, for domestic debt raised through issue of capital market instruments, such as, Rupee denominated bonds and debentures, by Indian companies engaged exclusively in the development of infrastructure and by Infrastructure Finance Companies (IFC).
This circular states that credit enhancement can be also be provided by eligible non-resident entities to the domestic debt raised through issue of INR bonds / debentures by all borrowers eligible to raise ECB under the automatic route, subject to the following: -1. The minimum average maturity of the underlying debt instruments
must be three years.2. Prepayment and call / put options will not be permissible for these
capital market instruments with an average maturity period of up to 3 years.
A. P. (DIR Series) Circular No. 121 dated June 26, 2013Risk Management and Inter Bank DealingsPresently, a Foreign Institutional Investor (FII) is permitted to hedge the currency risk on the market value of their entire investment in equity and / or debt in India.
This circular clarifies that if a FII wants to hedge the exposure of one of its sub-account holders it must produce a clear mandate from the sub-account holder indicating the latter’s (sub-account holders) intention to enter into the derivative transaction. Banks must also verify the mandate as well as the eligibility of the contract with respect to the market value of the securities held in the concerned sub-account.
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BCAS 10
BCAS FOUNDATION
Uttarakhand Flood Crisis: Donate Generously
The flash floods and landslides in Uttarkhand have taken a heavy toll on life and property. Roads and bridges have been washed away and
all major highways have been shut down or severely damaged. Estimates state that more than 4000 villages are affected by this
massive disaster. Hundreds of houses, schools, farmlands and shops have been completely damaged or swept away.
The magnitude of the disaster in Uttarakhand is immense and it is appealed to all our members that we all join hands along with various
organisations to support relief, rehabilitation and rebuilding efforts.
We request members to please contribute by sending a cheque in favour of “BCAS Foundation”
The Foundation Registration Number: E-20379 (Mumbai) 80G Registration Number: DIT (E) / MC / 80G/ 2345
Your timely support would be of great help to the thousands of flood-affected victims.
JULY 201311
Subscribe Now!!!
Payment can be made by cheque/DD payable at par in Mumbai in favour of ‘Bombay Chartered Accountants’ Society’. You can also pay by cash/credit card at the payment counter of BCAS Office. If you have an Imprest Account, then you can instruct us to adjust the subscription through the imprest Account. For further details log on to www.bcasonline.org
Particulars Subscription Charges + Service Tax
Total Charges
Ordinary, Life and Associates of Corporate Membership R600 + 12.36% R674
Students R600 + 12.36% R674
Journal subscribers R900 + 12.36% R1,011
Non-members R1,200 + 12.36% R1,348
Founding Day Lecture Meeting on Nationhood - The Next Step by Nasser Munjee, held on 6th July 2013 is available on BCAS Web TV
Renewal of BCAS Web TV for 2013-14
BCAS 12
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Edited, printed & published by Narayan Varma on behalf of Bombay Chartered Accountants’ Society, Mumbai-400020. Printed at Spenta Multimedia, Mumbai-400013.
Registered with the Registrar of Newspapers for India under R.N. 68365/98 Regd. No. MH/MR/South-88/2012-14Posted at Mumbai Patrika Channel Sorting Office, Mumbai-1Published on 15th of every month • Posted on 15th & 16th of every month
• Please fill in the above form and send the same to the Society’s office along with requisite payment. • Please mention your name and membership number on the reverse side of the local cheque/at par cheque/Demand Draft. • Kindly note that the cash counter timings are from 10.30 a.m. to 5.30 p.m. on Monday to Friday and 10.30 a.m. to 1 p.m. on Saturday. The lunch time is 1.30 p.m. to 2 p.m. Members are requested to co-operate in this regard. • Cancellation policy: Kindly note that no refund will be given in case of cancellation for any reason and no substitute will be allowed.
Name : .............................................................................................................................................................................................
Choice of food (wherever applicable) .......... Jain Non-Jain Cash/Draft/ Cheque no. .................. Drawn on ................................................................................................................... Bank,
Dated ......................... for an amount of r.......................................................................................... is enclosed.
Date : ................... (Signature)
Workshop Tree Plantation
Seminar
Study Course
Workshop on ‘How to conduct a Tax Audit’ ....02-08-2013 ..r 899 for members .................
..............................................................r 1,124 for non-members ........Visit to Dharampur ............ 02-08-2013 and 03-08-2013 ..r 1,685 per person ..................
Full-day Seminar on Transfer Pricing as applicable to Specified Domestic Transactions’ ...........07-09-2013 ...... Early bird till 14th August 2013 ..... ......r 1,348 for members ........... ........ r 1,686 for non-members ......
SEMINAR ON NBFC Regulations (Including Audit Aspects) .........................................11-09-2013 ...... Early bird till 07th August 2013 ..... ......r 1,910 for members ........... ........ r 2,360 for non-members ......
Six Day Internal Audit Studies Foundation Course .................. 19-08-2013 ...................................Early bird upto 31st July 2013 ....................................... r 10,113 .........................................
More than 3 participants from the same firm, per participant, upto 31st July 2013 ............................... r 9,550 ...........................................
BCAS Study Circles 2013–14Study
Circle No. Subject Fee Tick your choice here
I Direct Tax Laws 449*
II Indirect Tax Laws 449*
III Company Law, Auditing & Accounting 449*
IV FEMA 449*
V Information Technology 449*
Study Circle No. Subject Fee Tick your
choice hereVI Human Resource Development 449*
VII ITF 1,123*
VIII BCAS Suburban Study Circle 674*
IX International Economics 1,123*
X Students Study Circle 224*
* Inclusive of Service Tax of 12.36%
IPCC & FINAL CA STUDENTS CRASH COURSE
Name :...............................................................................................................................................Registration Number Allotted by I.C.A.I. :........................................................................
Course in which admission is desired : I.P.C.C ( ) FINAL ( ) (Please tick appropriately)
Details of Articleship : Date of Joining .................................... Estimated date of Completion ...............................Name of the Principal : .................................................
Name and address of firm where articleship is being done :..................................................................................................Tel. No.:............................ Fax No...............................
Cash/Draft/Cheque No.....................................drawn on .....................................................Bank,dated ............................................ for an amount of R1,686/- is enclosed.
Date : ................................................ Signature ................................................................
Notes : 1. Please send the above form along with cash/cheque/draft drawn in favour of ‘‘BOMBAY CHARTERED ACCOUNTANTS’ SOCIETY’’, to the Society’s office, at the address mentioned above.2. We propose to have multifarious activities like Elocution Competition, Public Speaking, Self Development Education Courses, Orientation Courses, etc. for interested Students.3. Members are requested to keep the proforma of this sheet and send the same duly filled in by new articled trainee after his/her enrolment in their office.
