MARCH 20131

Mastering e-filing compliances under Taxation & Corporate Laws ............................................. 22-03-2013 to 20-04-2013 .............................. H. R. College of Commerce, Churchgate, Mumbai .....................................3

Workshop on Practical Issues in TDS ....................................... 22-03-2013 .............................................................. Navinbhai Thakkar Auditorium, Vile Parle, Mumbai. ................................4

Seminar on EPC Contracts ............................................................. 13-04-2013 .............................................................. J. W. Marriott, Juhu, Vile Parle (W), Mumbai ..................................................5

Workshop on 'empathy' ................................................................... 16-04-2013 .............................................................. Navinbhai Thakkar Auditorium, Vile Parle, Mumbai. ................................4

Release of BCAS Referencer 2013-14 ........................................ 07-06-2013 ............................................................. Navinbhai Thakkar Auditorium, Vile Parle .....................................................6

7th Residential Study Course on Service Tax & VAT ........ 14-06-2013 to 16-06-2013 ............................... Hotel Express Inn, Nashik ......................................................................... 5

Lecture Meetings ................................................................................ 20-03-2013, 03-04-2013, 10-04-2013 ..........................................................................................................................................................1

7, Jolly Bhavan #2, New Marine Lines, Mumbai - 400020. Telephone No. 613 77 600 ; Fax : 613 77 666 ; Email: bca@bcasonline.org ; Website : www.bcasonline.org

President: Deepak R. Shah 98201 48536 | president@bcasonline.org

Vice-President: Naushad A. Panjwani 98200 59048 | vp@bcasonline.org

Hon. Jt. Secretaries: Nitin P. Shingala 98200 57694 | joint.secretary@bcasonline.org

Hon. Jt. Secretaries: Raman H. Jokhakar 98208 77976 | joint.secretary1@bcasonline.org

Hon. Treasurer: Chetan M. Shah 98202 23402 | treasurer@bcasonline.org

Vice-President’s CommuniquéDear Members,

My work takes me to various corners of India. I get the opportunity to see for myself and also hear from others the progress (or the lack of it) all around. There is a massive effort on to build a modern India. I’m filled with pride when I observe states such as Bihar, which had been neglected for decades, seeing development similar to the best states. And then I come home to Mumbai and my heart sinks.

Mumbai is the most populous city of India, and the fourth most populous city of the world. Here are some statistics: presently, Mumbai’s population is approximately 2 crores, while in 1991, it was only slightly more than a crore. Mumbai’s population has almost doubled in the last 20 years. Now, imagine this in comparison to the population of Mumbai pre independence–a mere 3 lakhs, when India’s population was about 35 crores. So while in the six decades since independence India’s population grew by about 3½ times, Mumbai’s population grew by a whopping 70 times!

In comparison to the population, the total area of Mumbai is only 1,176.4 sq. km. Of this, Greater Mumbai spans 603.4 sq. km. from which an area of 437.71 sq. km. is under the administration of the Brihanmumbai Municipal Corporation (BMC). The remaining 165.69 sq. km. belong to institutions such as Defence, Mumbai Port Trust, Atomic Energy Commission, and Borivali National Park, which are not within the jurisdiction of the BMC. Compare this with Delhi that has a population of 1.7 crores on an area of 1,483 sq. km. Interesting to note the size of these modern cities: Pudong SEZ on the outskirts of Shanghai has an area of 1,210 sq. km. Closer home, Gujarat is to get another planned city at Dholera, about 100 kms south of Ahemdabad, which would be about 900 sq. km in size.

We have some successful examples of new areas developed not so long ago in Nariman Point and Cuffe Parade in Mumbai. We also have a failed attempt in Navi Mumbai to learn from. We have cities such as Surat and

Vol. 15 n No. 12 n March 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.

LECTURE MEETiNGS

Venue : Walchand Hirachand Hall, Indian Merchants' Chamber, Churchgate, Mumbai – 400020Day, Date & Time : Wednesday, 20th March, 2013, 6.15 p.m.*Speaker : Radhakrishnan PillaiSubject : Chanakya on Finance and Accounting(Under the auspices of Dilip Dalal Oration Fund)

Venue : Indian Merchants’ Chamber, Churchgate, Mumbai Day, Date & Time : Wednesday, 3rd April 2013, 6.15 p.m.*Speaker : Kamlesh VikamseySubject : Provisions in Companies Bill relating to Auditors

Venue : Walchand Hirachand Hall, Indian Merchants' Chamber, Churchgate, Mumbai – 400020Day, Date & Time : Wednesday, 10th April, 2013, 4.00 p.m. to 7.30 p.m.Speakers : Sanjeev Dutt, Director of Income Tax(Exemption) and Vishwas K. Jadhav, Charity Commissioner Subject : Interactive session on issues relating to Charitable Trust

Thane resurrected. Chandigarh is an example of a planned modern city. People talk of Singapore and Shanghai as examples that Mumbai should emulate.

It is obvious that the city's infrastructure development has not kept pace. I hear enough complaints all around, but sadly, very few offer solutions. All those who have constructive and practical ideas must speak up, demand action and ensure that we rebuild this city. It was refreshing

*Fellowship over a cup of tea at 5.45 p.m.

BCAS 2

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 23rd March 2013, 13th April, 20th April & 27th April 2013. Please call to obtain a prior appointment.

All the three clinics will be held in the Library room of the BCAS office.

The next Charitable Trust Clinic will

be held on 5th April 2013 from 5 p.m.

to 7 p.m.

Chartered Accountants and Trustees

interested in having their queries

solved are requested to send their

queries by email to sp@bcasonline.org

and call to obtain a prior appointment,

latest by noon on the day of the clinic.

Querists are also advised to bring along

relevant papers like trust deeds, audited

accounts, etc.

Accounts & Audit clinic chAritAble trust clinicright to informAtion clinic

Advisory Panel : Narayan Varma, Adv A K Asher, Hema SampatClinic Co-ordinator : Shernaaz -61377600

Advisory Panel : Sanjeev Pandit, Himanshu Kishnadwala, Jayesh GandhiClinic Co-ordinator : Rajaram - 61377613

Advisory Panel : Ratanshaw Damanwala, Shariq Contractor, Gautam Nayak, Anil Sathe, Atul ShahClinic Co-ordinator : Khushboo - 61377620

The next Accounts & Audit Clinic

will be held on 6th April 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.

to hear Pranay Vakil share some innovative thoughts on the topic at the BCAS Real Estate Summit. Similarly, sometime back, McKinsey had released a report which too listed some good ideas. In my opinion, since Manhattan is a peninsula like Mumbai, important lessons can be learnt to see how this city has been developed using tunnels and bridges to connect it to its far-flung suburbs.

So clearly, Mumbai’s problems can be divided into: (a) rising population, (b) apparent lack of space to accommodate this rising population, (c) lack of physical infrastructure, and (d) deteriorating social infrastructure. It’s not too late to arrest this downfall. It is imperative that the government seize the opportunity when it draws up its next Development Plan, which is just around the corner.

If I were to list my suggestions, they would be:in the short term:a. Increase FSI judiciously.b. Government mandated cluster developments such as Dharavi, Bhendi Bazaar, Sikka Nagar, Kannamwar Nagar, and government colonies like MIG Bandra.c. Change tenancy laws to enable development which is a win-win for all.d. Speed up the numerous tenancy cases of old buildings pending in various courts.e. Relocate jails presently in prime locations.f. Free salt pans for development.

g. Shift polluting refineries from the heart of the city to industrial zones on the outskirts.

in the long term:a. Build connectivity Elevated rail corridors. Vertical growth of road networks/bridges/ multi-level bridges. Outer ring roads –sea links and/or coastal roads. Develop waterways as a mode of transport. Sewri–Nhava Sheva bridge.b. More than 55% of the population lives in

slums, or as is now fashionably called, ‘informal housing’. We can’t wish the slums away. 45% of the population cannot decide the fate of the majority of us.

A more quick, bold and logical solution needs to be found. Is making them owners an answer? With a high FSI, the slum tenant becomes an owner of his own permanent home, the government gets dwellings to be sold to its target segment while the private developer gets his profits from the free sale component. Cut the slum lords and other vested interests out. Controversial, but look at the benefits.

But urgently and immediately:a. Reduce the number of permissions required for everything.b. Increase the speed of dispensing the permissions sought.

c. Eliminate corruption.d. Tackle the land mafia.

I love Mumbai. Mumbai meri jaan hai. I want Mumbai to resurrect. I believe all this and more is possible. But it won’t happen by criticising and cribbing. Let’s reach our ideas to the policymakers. If they don’t listen, then let’s elect new policymakers who will listen and act. It is high time that we did something.

This is the time of the year when most of us are giving finishing touches to our business plans for the next year. At BCAS too, we are in the process of freezing our plans. BCAS has always endeavoured to serve all segments of its membership. Have we been successful? Are there any gaps? Has any segment been ignored? Share your thoughts with me and we will discuss these in the next issue.

Here’s wishing everyone happiness and love.

With warm regards,

Naushad Panjwani

MARCH 20133

IndIrect tax and allIed laws commItteeChairman : Govind G. Goyal Convenors : Suhas S. Paranjpe, Sunil B. Gabhawalla, Santosh M. JainCourse Coordinator: Uday V. Sathaye, Amar N. Shukla, Chirag B. Mehta, Mandar U. Telang, Ravi A. Shah, Samir L. Kapadia

Jointly with HR College of Commerce

Mastering e-filing compliances under Taxation & Corporate LawsWith the progressive use of computers, internet, networking and various softwares, even the Government departments are transforming their implementation modules from traditional ‘manual systems’ to IT enabled ‘automatic’ system driven process. Consequently, statutory compliances under various statutes, such as obtaining registration, payment of taxes or fees, submission of various forms or returns etc. are now required to be carried out electronically using IT-oriented methods.

COURSE OBJECTiVE AND METHOD Of TRAiNiNGThis programme will enable users to gain comprehensive working knowledge on practical issues related to e-compliances under various statutes. The sessions would be held in a classroom type of environment. Apart from theoretical aspects, participants will be given practical exposure and hands on training on various aspects of the e-filing and e-compliance process through the operation of computers.

ELiGiBiLiTyThis programme would be suitable for students, staff members working with tax professionals providing tax compliance services, independent tax practitioners, newly qualified CAs looking to start their own tax practice, etc. Basic computer knowledge and theoretical background of statutory compliances is essential.

SyLLABUSTheory: Overview of important compliances of procedures under statutes governing Income Tax, MVAT, Service Tax, Profession Tax and Companies Law.

Practical: Registration, preparing and uploading e–returns under the respective Acts, filing rectification statements, TDS statements, refund claims, various forms, and tracking of compliance status.

Practical training will also cover: How to access, track and use information made available on sites like CPC, ACES, MCA, TRACES, MAHAVAT.

Programme Details

Number & duration of session

15 sessions of approx. 3 hrs each

Dates 22nd, 23rd, 26th, 28th, 30th March 2013 and 2nd, 4th, 6th, 9th, 11th, 13th, 16th, 18th & 20th April 2013.(Sessions will be held generally on Tuesday, Thursday and Saturday)

Time 5.30 pm to 8.30 pm

Venue HR College of Commerce, Churchgate, Mumbai

Fees R6,020 + R743(ST) = R6,763/-

Restricted to 40 persons only. Enrolment on first-come first-served basisFor further details refer BCAS Website or contact BCAS office.

Enrolment form is printed on Page 12.

module topic faculty

Direct tax •Filing of Income tax returns•Filing rectifications applications•Tracking and downloading

information from TRACES

Niren Mehta

Direct tax •Filing of ETDS statements•Tracking defaults•Filing correction statements•Generating reports and TDS certificates

Avinash Rawane

MVAT •Registration under MVAT•Filing of returns•Requisitioning declaration forms•Uploading J1/ J2 annexure•Uploading Form e-704•Refund Applications

Govind Goyal

Profession tax

•Registration under Profession tax Act•Filing of returns

Service tax •Registration under Service tax•Filing of returns•Viewing and tracking information on the ACES site•Refunds

Bhramkstriya (Superintendent – Service tax) / Parag Mehta

Company Law

•Incorporation of companies•Filing of returns and statements•Viewing, tracking and downloading information from MCA site•Refunds

Mr. Hemanshu Kapadia(Company Secretary)

The two things that impressed me most about Bombay – then and now – are the freedom that you see in the city, and

the beautiful nature of the people. Because we get caught up in the day-to-day struggles and pleasures of life in Bombay, we sometimes forget just how much freedom there is in the city, compared to many other more rigidly controlled cities

in the world.

Gregory david roberts, author, Shantaram in an interview to the Platform magazine

BCAS 4

full-day workshop on Practical issues in Tax Deduction at SourceTaxation Committee is pleased to announce a full-day workshop on

“Practical Issues in Tax Deduction at Source (TDS)”. The importance

of TDS provisions cannot be undermined. TDS is a huge source of

revenue for the Government. Non-compliance with TDS provisions may

invite disallowance of expenditure in addition to applicability of penal

provisions. There are constant changes both in the regulatory as well as

the compliance aspects of TDS provisions. This Workshop is intended to

keep you updated with the recent developments in this field. A special

session will be taken by the Commissioner of Income Tax (TDS), Mumbai,

dealing with various developments on TDS.

Centralised Processing Cell (CPC) TDS has recently been set up in

Ghaziabad and has introduced TRACES (TDS Reconciliation Analysis

and Correction Enabling System). It is a web-based application of the

Income Tax Department for providing an interface to all stakeholders

associated with TDS administration. To understand the different roles

and responsibilities of NSDL and CPC (TDS), as well as understand the

functions and facilities available on TRACES, a session will be taken by

officials from NSDL and CPC (TDS) respectively.

Participants may send their queries in advance to the

em@bcasonline.org to enable the speakers to deal with them.

Programme Details:

Day and Date Friday, 22nd March 2013

Time 9.00 a.m. to 5.30 p.m.

Venue Navinbhai Thakkar Auditorium, Shraddanand Road, Near Shiv Sagar Restaurant, Vile Parle (East), Mumbai- 57.

Fees for members R 1,100 + R 136 (ST) = R 1,236

Fees for non-members R 1,500 + R 185 (ST) = R 1,685

The above fee includes contribution of R 50/- to BCAS foundation, cost of study material, breakfast, tea, coffee and lunch.

taxatIon commItteeChairman: Gautam S. Nayak Convenors : Saurabh P. Shah, Anil D. Doshi and Rajeev N. Shah Workshop Co-ordinators: Jagdish T. Punjabi and Saroj V. Maniar

Topics Faculty

Overview of TDS V. K. Pandey CIT(TDS)

Section 192 – Salary including salary paid to expats

Yogesh Thar

Section 194A, Section 194C, Section 194J, Section 194H, Section 194I

N. C. Hegde

Section 195 - Payment to Non-Residents

Naresh Ajwani

TDS Return Filing and Assessments - Tax Credits, Issues and Resolution

Ravi Agarwal, DIT (Systems) CPC, GhaziabadBabina Dinashan, Senior Manager, NSDL

Enrolment form is printed on page no 12.

Half-day training workshop on empathyProgramme Details:

Day and Date Tuesday, 16th April 2013

Time 2.00 p.m. to 8.00 p.m.

Venue Navinbhai Thakkar Auditorium, Shraddhanand Road, Near Shiv Sagar Restaurant Vile Parle (East), Mumbai- 400057

Faculty M.K. Ramanujam

Fees for members registered for the 11th Leadership Camp

Free

Fees for members not registered for 11th Leadership Camp

R1,000 + R123 (ST) = R1,123(Limited to first 10 enrollments)

The above fee includes tea, coffee & light snacks and R50/- towards contribution to BCAS Foundation

Human resources commItteeChairman : Mayur B. Nayak Convenors : Bharatkumar K. Oza, Hemant P. Gandhi, Mihir C. Sheth

Enrolment form is printed on page no 12.

MARCH 20135

it's not so much what you learn about Mumbai, it's what you learn about yourself, really. it's a funny old hippie thing, but it's true as

well. you find out a lot about yourself and your tolerance, and about your inclusiveness.

danny Boyle

InternatIonal taxatIon commItteeChairman : Kishor B. KariaCo Chairman : Rajesh S. Kothari Convenor : Krishna Kumar Jhunjhunwala, Dhishat B. Mehta and Gaurang V. Gandhi

Chairman : Govind G. GoyalConvenors : Suhas S. Paranjpe, Sunil B. Gabhawalla and Santosh M. Jain

Seminar on EPC ContractsIndia has embarked on an ambitious growth trajectory, more particularly in the Infrastructure sector apart from various other sectors of the economy. This necessitates significant activities for construction, engineering, consultancy and related activities for various such projects.

The purpose of the seminar is to understand the various aspects relating to EPC Contracts such as legal and contracting structures, its documentation, efficient planning, direct and indirect taxation, etc. The recent judicial pronouncements and the undercurrent of international practice, which have a bearing on such contracts, will also be discussed.

Programme Details:

Day and Date Saturday, 13th April 2013

Time 9.00 a.m. to 6.00 p.m.

Venue Hotel J W Marriott, Juhu, Vile Parle West.

Fees for members R 2,136 + R 264 (ST) = R 2,400

Fees for non-members R 2,670 + R 330 (ST) = R 3,000 (limited seats)

The above fee includes course material, morning breakfast, tea, coffee & lunch and R 50 towards contribution to BCAS Foundation

Topic Speaker

Introduction and legal aspects Ashish Ahuja

Direct tax aspects Pinakin Desai

Indirect tax aspects Sunil Gabhawalla

Commercial aspects (including funding aspects)

Eminent faculty

Enrolment form is printed on page no 12.

7th Residential Study Course on Service Tax & VATThe Indirect Taxes and Allied laws Committee of BCAS is pleased to invite

your kind attention that the 7th Residential Study Course on Service Tax

and VAT is proposed to be held at Hotel Express Inn, Nashik, from 14th

June to 16th June 2013.

We are planning to have, in all, five papers covering various important

aspects. While the subjects and paper writers are being finalized (these

will be informed through e-mail), this intimation may help you to plan

your schedule to participate in this mega event.

Programme Details:

Day and Date Friday, 14th June to Sunday, 16th June 2013

Venue Hotel Express Inn, Nashik

Fees, Subjects & Paper Writers

(To be announced)

Notes:

1. The Residential Study Course is open only for ordinary and life members of BCAS.2. Enrolment will commence from 3rd April 2013 and will be restricted to 150 members only, on first-come-first-served basis. 3. The course will begin on Friday, 14th June 2013 and will conclude on Sunday, 16th June 2013 after lunch. Delegates can check-in at the hotel from 11.00 a.m. onwards on Friday, 14th June 2013. 4. All participants will be accommodated in earmarked rooms on twin sharing basis. The participants are requested, therefore, to indicate in the enrolment form your preference of room partner, if any.5. The enrolment fees (to be announced) will be inclusive of lodging, boarding, course material and R 50/- being contribution towards BCAS Foundation. The participants shall make their own arrangements for travel to and from Nashik.6. The venue is located near Ambad at Nashik on main Mumbai – Agra Road (Mumbai - Nashik Express Way).7. Arrangements are also being made to visit Shirdi on Saturday 15th June afternoon. 8. For further enquiries, please wait for detailed announcement.

IndIrect taxes and allIed laws commIttee

BCAS 6

memBersHIp & puBlIc relatIons commItteeChairman : Rajesh R. Muni Convenors : Aliasgar Z. Kherodawala, Narayan R. Pasari, Ashish B. fafadia

Come One – Come All for

BCAS Variety Performance Show on the occasion of release of

BCAS Referencer 2013-14 on friday, 7th June 2013

at Navinbhai Thakkar Auditorium, Vile Parle, Mumbai – 400 057 5.00 p.m. to 8.00 p.m.

'BCAS Family' will present their talent in instrumental music, singing (solo and duets),

dance (solo and group), dramatics, mimicry etc. and have a dinner together.

Passes for the event shall be issued from Monday, 20th May 2013 from BCAS Office. Send your information / nominations immediately for participating in the performance.

Practice and technical support will be provided by BCAS. Elimination round will be held on Sunday, 19th May 2013.

BCAS Family includes members, their spouses and children, article students and office staff.

I am keen to participate / nominate the following.BCAS Family Members at BCAS Variety Performance Show

Sponsoring Member's Name :

BCAS Membership No.

Signature

Sr. No Name Relation with Member Talent to be presented / participated Mobile No. / Contact

Email

BCAS 8

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

InfotecH & 4I commIttee & memBersHIp & puBlIc relatIons commIttee

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

Budget Meeting on Direct Tax Provisions of the Finance Bill 2013 by S. E. Dastur, Senior Advocate held on 4th March 2013 is available on BCAS Web TV.

Renewal of BCAS Web TV for 2013-14

BCAS 10

A. P. (DiR Series) Circular No. 82 dated february 11, 2013Opening of NRO accounts by individuals of Bangladesh Nationality

Presently, Nationals of Bangladesh are permitted to open Non-Resident Ordinary (NRO) accounts in India only after obtaining RBI approval.

This circular permits Nationals of Bangladesh who hold a valid visa and a valid residential permit issued by Foreigner Registration Office (FRO) / Foreigner Regional Registration Office (FRRO) concerned to open a NRO account without obtaining RBI permission. However, entities of Bangladeshi ownership will continue to require RBI permission for opening Bank accounts in India.

A. P. (DiR Series) Circular No. 83 dated february 20, 2013foreign Exchange Management Act, 1999 – import of precious and semi precious stones – Clarification

This circular clarifies that, with immediate effect, Suppliers’ and Buyers’ Credit (trade credit) including the usance period of Letters of Credit opened for import of precious stones and semi-precious stones should not exceed 90 days from the date of shipment. A. P. (DiR Series) Circular No. 84 dated february 22, 2013Know your Customer (KyC) norms / Anti-Money Laundering (AML) Standards / Combating the financing of Terrorism (CfT) Standards – Obligation of Authorised Persons under Prevention of Money Laundering Act (PMLA), 2002 as amended by PML (Amendment) Act 2009 Money Changing activities

This circular contains the procedure, as mentioned below, to be followed by authorized dealers and all their agents / franchisees to identify the beneficial owner in money changing transactions in terms of Rule 9(1A) of Prevention of Money Laundering Rules 2005: -

A. Where the client is a person other than an individual or trust, the Authorized Person shall identify the beneficial owners of the client and take reasonable measures to verify the identity of such persons, through the following information:

(i) The identity of the natural person, who, whether acting alone or together, or through one or more juridical person, exercises control through ownership or who ultimately has a controlling ownership interest.

Explanation: Controlling ownership interest means ownership of / entitlement to more than 25% of shares or capital or profits of the juridical person, where the juridical person is a company; ownership of

From rBIContributed by : Gaurang V. Gandhi

The Reserve Bank of India has issued the following 6 circulars

/ entitlement to more than 15% of the capital or profits of the juridical person where the juridical person is a partnership; or, ownership of / entitlement to more than 15% of the property or capital or profits of the juridical person where the juridical person is an unincorporated association or body of individuals.

(ii) In cases where there exists doubt under (i) as to whether the person with the controlling ownership interest is the beneficial owner or where no natural person exerts control through ownership interests, the identity of the natural person exercising control over the juridical person through other means.

Explanation: Control through other means can be exercised through voting rights, agreement, arrangements, etc.

(iii) Where no natural person is identified under (i) or (ii) above, the identity of the relevant natural person who holds the position of senior managing official.

B. Where the client is a trust, the Authorized Person shall identify the beneficial owners of the client and take reasonable measures to verify the identity of such persons, through the identity of the settler of the trust, the trustee, the protector, the beneficiaries with 15% or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership.

C. Where the client or the owner of the controlling interest is a company listed on a stock exchange, or is a majority-owned subsidiary of such a company, it is not necessary to identify and verify the identity of any shareholder or beneficial owner of such companies.

A. P. (DiR Series) Circular No. 85 dated february 28, 2013Memorandum of instructions for Opening and Maintenance of Rupee / foreign Currency Vostro Accounts of Non-resident Exchange Houses

Presently, banks in India can receive cross-border inward remittances under Rupee Drawing Arrangements (RDA) through Exchange Houses situated in Gulf countries, Hong Kong, Singapore. In case of Malaysia, banks in India can receive cross-border inward remittances under Rupee Drawing Arrangements (RDA) through Exchange Houses only under Speed Remittance Procedure.

This circular provides that banks in India can now receive cross-border inward remittances under Rupee Drawing Arrangements (RDA) through Exchange Houses situated in all countries which are FATF compliant under Speed Remittance Procedure.

MARCH 201311

Banks in India can now receive cross-border inward remittances under

Rupee Drawing Arrangements (RDA) through Exchange Houses situated in all

countries which are FATF compliant under Speed Remittance Procedure.

““Items No. 7 and 8 under Part (B) – Permitted Transactions have been

modified, as under, to reflect the above mentioned change: -

7. Payments to medical institutions and hospitals in India, for medical treatment of NRI / their dependents and nationals of all FATF countries.8. Payments to hotels by nationals of all FATF compliant countries / NRI for their stay.

A. P. (DiR Series) Circular No. 86 dated March 1, 2013Risk Management and inter-Bank DealingsAnnexed to this circular are the revised guidelines on calculation of the Foreign Exchange Exposure Limits of the Authorized Dealers.

The revised guidelines have withdrawn the restrictions on open positions limits (both overnight and intra-day) of Authorized Dealers involving Rupee as one of the currencies. However, the following restrictions will continue to apply: -

i. Positions on the exchanges (both Futures and Options) cannot be netted / offset by undertaking positions in the OTC market and vice-versa. Positions initiated on the exchanges must be liquidated / closed in the exchanges only.

ii. Position limit for the trading member bank in the exchanges for trading Currency Futures and Options will be US $ 100 million or 15% of the outstanding open interest, whichever is lower.

A. P. (DiR Series) Circular No. 87 dated March 5, 2013Notification No. fEMA.256/2013-RB dated february 06, 2013, notified vide G.S.R.No.125(E) dated february 26, 2013External Commercial Borrowings (ECB) Policy – Corporates under investigation

Presently, corporates who are under investigation by any law enforcing agency like the Directorate of Enforcement (DoE), etc. can access ECB only under the Approval Route.

This circular permits, with immediate effect, all entities to avail of ECB under the Automatic Route notwithstanding any pending investigations / adjudications / appeals by the law enforcing agencies, and also without prejudice to the outcome of such investigations / adjudications / appeals. Banks / RBI while approving the ECB proposal will have to intimate the concerned agencies by endorsing the copy of the approval letter to them.

Renewal of BCAS Membership / Journal

Subscription

Membership / Journal Subscription is due for

renewal on 31st March 2013

Please renew your membership / subscription

at the earliest

Remit your membership/subscription by cheque / demand draft favouring

‘Bombay Chartered Accountants’ Society’

payable at par in Mumbai or by online payment

(visit www.bcasonline.org)

Please quote your membership number / subscription number

Ensure you receive the BCA Journal without

interruption

BCAS 12

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

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• 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 : .............................................................................................................................................................................................

Address : .........................................................................................................................................................................................

E-mail :............................................... Mobile : ........................................... Tel. : ............................... Fax : .................................

BCAS Memb. No. : .................................. Tel. (O) : .................................... Tel. (R) : .......................... Fax : .................................

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)

Seminars

Mastering e-filing compliances under Taxation & Corporate Laws .................................22-03-2013........... r 6,763 ...........................................................

Seminar on EPC Contracts..................13-04-2013........................... r 2,400 for members ......................................

r 3,000 for non-members................................

Workshops

Workshop on Practical Issues in TDS.............22-03-2013 r 1,236 for members................................................ r 1,685 for non-members.........................................

Workshop on empathy...16-04-2013 r 1,123 (limited to first 10 enrolments for members not registered for 11th Leadership Camp).....................................................................................

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%