Chairman Secretary Editor CA. B. Venkata Rao CA. M...

For Private Circulation only

ChairmanCA. B. Venkata Rao

email : [email protected]

Vol # 4 of 2017 April, 2017

website : www.icaivisakhapatnam.org

EditorCA. K. Ramachandra Rao

SecretaryCA. M. Chalapathy Rao

STUDY CIRCLE MEETING ON BASICS OF NRI TAXATION ON 1ST MARCH, 2017

CPE SEMINAR ON TAXATION OF HUF & BENAMI TRANSACTION ACT & LABOUR LAWS ON 4TH MARCH, 2017

CA. T. Ramprasad

CA. E. Phalguna Kumar

Shri S.V. Ramchandra Rao

Distribution of Prizes out of Student Prize funds by CA. C.V. Ramana Rao to Meritorious Students of Nov 2016 Exams

VALIDICTORY OF 150TH BATCH OF ITT ON 8TH MARCH, 2017

Recognising the faculty through the hands of past chairmen who graced the occasion

ITT Coordinator : CA. Pavaniaddressing the students

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Visakhapatnam Branch of SIRC of ICAI

Dear Esteemed Colleagues,

Chairman Writes .......

Dear professional colleagues

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This new financial year is the start of another layer in

the professional life and a new beginning of new hopes,

aspirations and dreams.

India's biggest tax reform took another key step forward

with crucial legislation related to the goods and

services tax being introduced in Parliament ahead of

the government's plan to roll it out across the country

by July 1. Hon'ble Finance Minister Sri Arun Jaitley

introduced four legislations that, among other things,

provide for a peak GST rate of 40% and the setting up

of an authority to protect consumers from profiteering

by businesses. The four Bills-on Central GST, Integrated

GST, Union Territory GST and compensation - were

tabled in the Lok sabha and will be taken up for

discussion by the House on March 29. The passage of

the Bills by Parliament will pave way for states to

introduce state GST (SGST) Bills in their respective

houses.

It is time for profession and industry to gear up and be

updated. We are planning to organise series of

programmes on GST. As an initiative, we are organising

a Three Day - 18 Hour Structured Seminar on GST on

19th, 20th and 21st May 2017 in association with

Indirect Tax Committee of ICAI. The detailed structure

of the program, topics, speakers etc will be informed

to members soon. I request all the members to attend

and take the benefit of listening to experts on GST.

We are organising a Half Day Seminar on 23.04.2017,

on the eve of Branch Formation Day. CA. B Shekikizhar

from Hyderabad will address on Documentation with

reference to Peer Review and Emerging challenges and

opportunities in practice. On that day we are

recognising the services of Past Chairmen as a mark

our gratitude towards their relentless efforts for the

branch. This year we are felicitating three past

chairmen of the branch, CA. P. V. Kali Prasada Rao,

CA. SripadaSadasiva and CA. Poosarla Ramakrishna on

that day. I request all the members to attend the

meeting and make it a grand success.

A Full Day Seminar on Companies Act,2013 is being

scheduled on 29th April 2017. CA. Chinnasami Ganesan

from Chennai, and CS Dr. P. V. S.Jaganmohan Rao are

the resource persons for the seminar.

Details of these two important events are published

separately in this news letter.

During the month of March, we have organised crash

course for IPCC students and the same will conclude

by 4th April 2017. We are initiating steps to conduct

mock tests for both Final and IPCC students from 5th

April onwards for the benefit of students.

For the benefit of CPT Students, Branch is planning to

organise the Live Webcast of Two months CPT Coaching

Classes organised by SIRC of ICAI starting from 6th

April 2017 between 2.15 p.m. and 8.30 p.m. (during

week days) and between 6.30 am and 5.00 pm on

Sundays and Holidays. Tentative details of CPT

Coaching Classes and the time table will be announced

in due course. I request the members to spread this

message to student's among your known circle for the

benefit of students pursuing CPT.

The month of March was as usual an eventful one.

On 4th March we have organised a seminar on Taxation

of HUF and Benami Transaction Prohibition

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Amendment Act 2016, Wages under EPF Act. The

session were taken up by CA. E. Phalguna Kumar and

Sri S V Ramachandra Rao. The detailed deliberation's

on Taxation of HUF were well received by members.

I thank our Ex Officio Member, Past chairman SIRC

CA. E Phalguna kumar for addressing the members.

The overview of Benami Transaction Prohibition

Amendment Act 2016, and practical issues with

reference to Wages under EPF Act, both the topics

were very informative and useful for the members. I

Thank S V Ramachandra Rao for addressing our

members.

In that meeting the meritorious students in recently

held IPCC Nov 16 exams were presented with Prize

money constituted by various Student Prize Fund

donors.

On 8th March 2017, the branch has celebrated

completion of 150th batch of ITT and honoured faculty,

staff and past Chairmen present.

On 8th March 2017 we have organised a half day

seminar for women members on the eve of

International Women's Day. The Seminar was

inaugurated by Chief Guest Dr. Sasiprabha and Guest

of Honor Smt. Soumya Pandey Jain, Assistant

Commissioner of Income Tax. The key note addresses

given by Dr. R. Sashi Prabha and Smt. Soumya Pandey

were amazing and source of inspiration for the

delegates. The branch has also felicitated three senior

women members - CA. C. Padmaja, CA. G. Bhavani and

CA. M. Rukmani. The sessions conducted by the

eminent lady speakers CA. A. V. S.Lalitha Sundari on

GST and CA.Maturi Vindya on Stress Management

were thought provoking and well received.

The focus of the programs at our branch during the

month of March was on bank audit. On 11th March

Seminar on Bank Branch Audit has received an

outstanding response from the fraternity and

participated by nearly 160 members. The Seminar was

inaugurated by Sri R Balasubramanian DGM State

Bank of India.We had an excellent learning on "IRAC

norms, Audit of Advances, Issues in Audit of Profit

and Loss account, Balance Sheet and Audit Report".

CA. Soundar Rajan from Chennai and CA. Niranjan Joshi

from Mumbai made the presentations on these topics

in a very detailed manner for the benefit of all the

members. I thank both the resource persons for their

excellent deliberations on the subject.

The Bank Audit Work Shop on Value Addition to Bank

Audit- Key Issues in Verificationof Advances and Audit

under CBS environment on 18th March lead by

CA. B.V.Rao, CA. V.ChandraSekhar, past chairmen of

the branch and CA. D Premnath from Hyderarad. The

speakers with their numerous years' of experience as

an auditor of banks in various capacities, have covered

the subject in well-conceived manner with simple and

lucid illustrations for easy understanding. Sri C M

Minocha, Deputy General Manager, Union Bank of

India, graced the occasion as a Chief Guest.

The topics that were discussed and shared during this

session were very informative and useful. I thank each

of the resource person for their efforts in compiling

all the practical issues and sharing them with

members.

Members as discussed in my action plan - To organise

Study Circle meeting on every Wednesday with topic

of relevance,in this month we have organised three

study circle meetings

On 1st March we organised a study circle meeting on

Basics on NRI Taxation by CA. T.Ramprasad. The topic

was deliberated in detail with presentation and was

well received by members. I thank CA. T.Ramprasad

for addressing the members

On 15th March, a study circle meeting was held on

Registration- Migration issues under GST by

CA.B. Vinay Gandhi. The meeting was very lively and

there was good sharing of knowledge among the

members in that meeting. I thank CA. B. Vinay Gandhi

for accepting our invitation to share his knowledge

with members

On 22nd March, a study circle meeting on ICDS

organised was addressed by CA. Sunil Vamsi Krishna,

who came all the way from Hyderabad to address the

members. CA. Sunil Vamsi made the presentations

on these topics in a very detailed manner for the

benefit of all the members. Due to time constraint

we hold the session at half way mark, and the second

part of the session will continue in April. I thank CA.

Sunil Vamsi Krishna for his excellent presentation.

I thank our past chairmen CA. P. V. S. P. Kumar and

Prof Y. Goutam Rao for enlightening the students on

How to face CA Examinations Meeting. The program

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was well received by students.

Students and staff of CA firms also need to be geared

up to assist the Chartered Accountants in doing bank

audits and with this view, a seminar was organized.

Excellent response received from the students and staff

members who attended the meeting. I thank

CA. K. Guruprasad and CA. K. Ramachandra Rao past

chairman of the Branch for addressing the students and

staff of CA firms 'On Bank Audit'.

Once again I wish you all happy & prosperous Ugadi,

while wishing you a fruitful financial year 2017-18.

I request each one of you to participate in the

forthcoming programmes and get benefited.

With warm regards

CA. B. VENKATA RAO

Chairman

Editor Column

CA. K. Ramachandra RaoEditor

Respected Professional Colleagues

Financial Supervision by RBI and role of Chartered Accountants in the Banking Industry

The Reserve Bank of India performs this financial supervision function under the guidance of

the Board for Financial Supervision (BFS). Primary objective of BFS is to undertake consolidated

supervision of the financial sector comprising Commercial Banks, Financial Institutions and

Non-banking Finance Companies. One of the initiatives taken by BFS include strengthening of

the role of Statutory Auditors and strengthening of the internal defenses of Supervised Institutions.

The Audit Sub-committee of BFS has reviewed the current system of concurrent audit, norms of empanelment

and appointment of statutory auditors, the quality and coverage of statutory audit reports, and the important issue of

greater transparency and disclosure in the published accounts of supervised institutions. Thus the endeavor of the Reserve

Bank has been to develop a robust, efficient and diversified financial system so as to anchor financial stability and to

facilitate effective Supervision. We as Chartered Accountants are contributing greatly to the task through our dedicated

responsibility. The Business of all Scheduled Banks and all Scheduled Commercial Banks in India as at January 2017 is

Rs.573843.0 billion or 57384300.0 Cr.

Almost all Banks have finalized the allotment of branches. Had it been done a little earlier it would have been

good for the system to execute the audit with in the timeline as expected by the banks. Nevertheless, we are all well

versed with the procedures followed in bank statutory audit and shall be able to do the audit within the framework set by

the RBI and ICAI. Members are aware that the Peer review is now applicable to all the firms and taking steps accordingly

as per SQC-1 for proper working paper documentation. The applicability of ICDS to banks is also appears confirmed

through the recent clarifications by the Income tax department.

Guidance Note on Audit of Banks (2017 edition) will help us in conducting the audit more effectively and efficiently.

All the relevant Master Circulars and other information is available in the Guidance Note.The Guidance note issued by the

ICAI is priced at Rs. 350/- is freely downloadable. The Guidance Note is improved over the years with wide varieties of

issues and guidance especially on Advances. Different study groups like Mumbai study group with 22 members , Jaipur

study group with 16 members, Delhi study group with 13 members, Two Kolkata study groups consisting of 11 and 13

members and Bengaluru study group with 11 members have contributed for the improvement of the Guidance Note with

several CCMs in the AASB Which released the Guidance Note. I am sure that with proper Audit Planning and Training

junior with senior staff in "Finacle", "Bancs" software together with Standards on Auditing, we shall strive forward in line

with the Guidance Note in conducting the Branch Statutory Audit.

MEMBERS DIARY

19-4-2017 ICAI Bhawan Study Circle Meeting ICDS - Part 2

Wednesday 6.00 pm to 8.00 pm CPE: 2 hrs. CA. Sunil Vamsi Krishna

23-4-2017 ICAI Bhawan Hlaf Day Seminar Branch Formation Day

(Sunday) 9.30 am to 1.30 pm CPE : 3 hrs. Seminar on

1. Documentation with reference to

Peer Review

2. Emerging Challenges and

Opportunities in Practice

Followed by Lunch CA. B. Shekkizar, Hyderabad

Felicitation to Senior Past Chairmen

26-4-2017 ICAI Bhawan Study Circle Meeting Will be intimated later

Wednesday 5.30 pm to 8.30 pm CPE : 2 hrs.

29-4-2017 ICAI Bhawan Full Day Seminar Chief Guest

Saturday 9.30 am to 5.00 pm CPE : 6 hrs. Shri. N. Krishnamoorty *

Seminar on Companies Registrar of Companies, Hyderabad

Act. 1. Latest updates on Campanies Act

2013

2. Secretarial compliance for Pvt Ltd

Companies

3. Borrowings and depoists under

Companies Act 2013

4. Role & Responsibility of Board of

Directors related Party Transactions

under Companies Act 2013

Speakers :

CA. Chinna Swami Ganesan, Chennai

CS. Dr. P.V.S. Jaganmohan Rao, Hyderabad

06-5-2017 ICAI Bhawan Full day Seminar Accounting Standards & Auditing Standards

Saturday 9.30 am to 5.00 pm CPE : 6 hrs. CA. S. Ramesh, Chennai

CA. R. Sundrarajan, Chennai

Date & Day Venue & Time CPE Hours Name of the Programme & Speaker

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* Confirmation awaited

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VAT Update CA. Ambati Chinna Gangaiah, [email protected],

Cell : 08801032969

SUPREME COURT

1. Ayyasamy vs. A. Paramasivam AC 8245-8246/16 dt 4.10.16 (2016) 10 SCC 386 - 10. 'Fraud'

is a knowing misrepresentation of the truthor concealment of a material fact to induceanother to act to his detriment. Fraud can

be of different forms and hues. Its ingredientsare an intention to deceive, use of unfairmeans, deliberate concealment of material

facts, or abuse of position of confidence.………. (Ramesh Kumar & Anr. v. Furu Ram &

Anr., (2011) 8 SCC 613.)

2. Syscon Consultants AC 2910/13 dt 19.9.16

(2016) 10 SCC 353-Once, it is found that

justice of the case on facts does not require

interference, this Court, even at the appellate

stage, is well within its discretion to stay its

hands off, as held in Taherakhatoon (D) by

Lrs. v. Salambin Mohammad (1999) 2 SCC 635

3. Imax Corporation AC 34009/13 dt 10.3.17 -

(Cause of action in India and Arbitration in

London) - High Court committed an error in

observing that the seat of arbitration itselfis not a decisive factor to exclude Part-I of

the Arbitration Act.

HIGH COURT

1. Venkateswara Electrical and General StoresWP.24957/16 dt.18-08-16 - the petitioner

admitted non-disclosure of the turnover, and

accepted their liability to pay tax thereon…..there is no justification in denying them thebenef it of input tax credit for the

corresponding purchases made by them.

2. Sri Asta Lakshmi Rice Mill WP 38708/15 dt

30.11.15 - (purchase tax on paddyproportionate to production of husk)

purchase tax levied, under Section 4(4), on

paddy should be deducted from the taxlevied on the sale of rice, as both paddy and

rice are declared goods U/s 14 of the CST

Act.

STAT - AP

Sri Raghavendra Enterprises - TA 255-56/11dt 22.2.17 It is settled law that burden inrevision lies on the revisional authority.

TELANGANA

1. Regal Fitness TA 100/16 dt 11.1.17 articles

and equipment for general physical exerciseare covered under HSN code 9506 as part of

sports equipment. ……. the impugned goods

are sports goods taxableat 4%

2. Signum Fire Protection TA 291/11 and batch

dt 17.1.17 - In the present case also we find

that the goods are brought to the site and

fixed by the appellant and not sold as

chattel……Therefore, we are of the

considered view that the impugned

transactions are Works Contracts only and

not sale.

3. Hyderabad Race Club TA 733-36 dt 18.1.17 -

'cattle' does not include horses and therefore

oats that are fed to the horses would not

come under the term 'cattle feed"

4. S.S.V. Fab Industries TA 161/16 dt 20-1-17 -

H forms can be f iled before appellate

authorities.

5. Shri Roopchaya Colour Studio TA 44/16 dt20.1.17 the work of developing, processingand printing of photographs out of either

negative rolls or in the form of CDs. or datastorage cards, there is an element of sale ofcertain goods which can be taxed under

Section 4(7) of VAT Act.

6. IVRCL TA No. 835,847/08 dt 10.2.17- heldthat the contractor is exempt from payment

of tax only if a sub contractor is a registered

dealer following Yograj Constructions Ltd.,

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in T.A.No.65, dt 5-8-16

7. K. Hanumantha Rao TA 944/08 dt

15.2.17 (following Kakatiya CottonPressing Industries, 50 APSTJ 157)revisional authority ought not to have

exercised revision power second time

ADVANCE RULINGS

AP

Schwing Stetter A.R.Com/33/2016 dt15.3.17 (AR 6/17)self-loading mobile

concrete mixer is a machinery andliable to tax @ 5%

TELANGANA

1. Perfect Distributor A.R.Com/8/2014 dt23.2.17 (AR 3/17) - Cell Phones / Mobile

Phones", and hence are chargeable @

5% w.e.f. 30-07-2016

2. Ipog Industrial Technologies - A.R.Com/

15/2016 dt 15.3.17 (AR 5/17) "twin core

miniature control cable" falls under

Schedule V to the Act liable for the tax

14.5%.

COMMISSIONER'S CIRCULARS

Re f . N o . C C W / C S ( 1 ) / 1 2 8 / 2 0 1 5 ,

dt.17.03.17-instructions issued

Registrations in all acts.

ALLAHABAD

Kalpataru Agro Forest Enterprises -

Trade tax Revision No. 52 of 2016, dt

4-7-16 - 2016 NTN (Vol 61) 143 (All) -Purchase of the bamboo and wood and

subjecting it to process of debarking,

cutting and removing roots does notbring new commercial commodity as

after the process it remains bambooand wood as such it does not amount

to manufacture

KARNATAKA

Cognizant Technology - STRP 386/14

21.9.16 (98 VST 45) - Electronic gadgetsor mobile or drinking water incidentalto manufacture activity.

There are several types of fats, the chief ones being calledtriglycerides, cholesterol esters, and phospholipids. Theycontain fatty acids, which may be saturated, monounsaturatedor polyunsaturated.

Some polyunsaturated fatty acids are essential for humansbecause they cannot be made in our bodies. One group ofessential fatty acids comes from plant sources; these fattyacids are found in considerable quantity in polyunsaturatedmargarine and in vegetable oils. We need about 1 to 2 percent of our energy to come from this type of fatty acid,although a higher intake, up to about 10 per cent of energy,may be protective against coronary heart disease. Therequirements of another type of essential fatty acid have notbeen worked out, but they are obtained mainly from seafoodand, in a different way, seem protective against coronary heartdisease - they reduce the ‘stickiness’ of the blood

. Both kindsof essential fatty acids can lower high levels of blood fats.

Saturated fatty acids come chiefly from ruminant animals,such as sheep and cattle, and from milk and dairy productsof these animals. In the stomachs of ruminants thepolyunsaturated fatty acids that are present in fodder arebroken down to a large extent to saturated fatty acids sothat the fatty tissues of animals such as cattle are mostlysaturated. On the other hand, animals with a single stomach(monogastric) absorb the range of fatty acids, saturated andpolyunsaturated, present in the diet. Pigs and humans aresimilar in this respect.

Saturated fat increases the amount of cholesterol in blood.Monounsaturated fat does not increase the blood cholesterollevel and may decrease it (olive oil and peanut oil providemonounsaturated fat). Polyunsaturated fat decreases it.Traditional cultures that use olive oil in food preparation ora lot of groundnuts (peanuts) have little coronary heartdisease. Cholesterol in food increases the level of cholesterolin blood.

Saturated fat also increases the amount of triglyceride inthe blood. Both blood cholesterol and blood triglyceride,when elevated, increase the risk of hardening of the arteries(atherosclerosis), with consequent coronary heart disease.

Omega-3 foods are believed to help lower the risk for heartdisease due to their inflammation-reducing abilities.

Good source for omega Flaxseeds (Avisa ginjalu) , Walnuts

& Walnut Oil, Soybeans , Spinach, Fish Oil (Salmon).

OUR PERSONAL COLUMN

SATURATED FATS VsUNSATURATED FATS - OMEGA 3

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VISAKHAPATNAM BRANCH OF SIRC OF ICAI

ONE TIME PAYMENT DELEGATE FEE (2017-18)

Registration Form

ToThe secretary,Visakhapatnam Branch of SIRC of ICAI,ICAI Bhawan,VISAKHAPATNAM -530 003

Dear Sir,

I/We have enclosed Cheque No....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . of ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bank dated

.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . for Rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ./- in favour of VISAKHAPATNAM BRANCH OF SIRC OF ICAI,

VISAKHAPATNAM towards my/our ONE TIME DELEGATE FEE PAYMENT for CPE Seminars at Visakhapatnam Branch

for the period from 01.04.2017 to 31.03.2018.

Details of the Member/Members

S.No Name of the Member Date of M. No Mobile No. E-mail ID

Enrolment

Thanking You,

Yours Truly,

Signature

One Time Fee Structure for 2017-18Rs. 4,000 for members enrolled before 31.03.2012

Rs. 3,000 for members enrolled on or after 01.04.2012

Rs. 1,000 for members who qualified on or after May 16

Members desirious of making online payment are

requested to do the same to the following account :

ACCOUNT NAME : VISAKHAPATNAM BRANCH OF SIRC OF ICAI

ACCOUNT NO : 024510011011521

BANK NAME : ANDHRA BANK

BRANCH NAME : PITHAPURAM COLONY

IFSC CODE : ANDB0000245

Please forward the UTR No. , Name and Membership No. to the

following mail ID : [email protected]

APRIL, 2017


History :

Finance act (no.2) 2009 has introduced the

provisions of section 206AA. It provides that the

deductee should furnish his PAN to the person

responsible for deducting the tax else the minimum

rate of TDS applicable would be 20%.

The requirement to obtain PAN is governed by the

provisions of section 139A. The section 206AA starts

with anon-obstante clause "Notwithstanding

anything contained in any other provisions of this

Act". This section also applicable in case the

deductee provides an invalid PAN or PAN not belong

to him.

So, reading together the provisions of section 139A

and 206AA one may conclude that though it is not

mandatory for a person to obtain PAN still the

provisions of higher rate of TDS referred U/S 206AA

would apply.

This section will also apply in case the deductee is

nonresident . However, if any beneficial provisions

exist in DTAA then they will have overriding effect

over the provisions of Income Tax Act, 1961 .

One issue will arise is whether to claim the

concessional rate mentioned DTAA is nonresident

should have PAN so as not to be governed by

provisions of section 206AA?

To answer this f irst look at the Judicial

pronouncements which answered this question. The

Bangalore ITAT has held that the provisions of

section 206AA will apply as it has overriding effect

over other provisions of the Act. Thus, a nonresident

whose income is chargeable to tax in India should

obtain the PAN. However, the Pune ITAT and the

Bangalore Tribunal has held that once the

provisions of DTAA are applicable section 206AA

doesn't apply.

Even the honorable Supreme Court has held that

SECTION 206AA - TWIST AND TRUNSCA. T. Ram Prasad

the provisions of DTAA with respect to the case to

which they apply would operate even if inconsistent

of the provisions of the Income Tax Act. So even

the provisions of section 206AA has overriding effect

over other provisions of the Act still they were

inapplicable in applying the DTAA.

Besides the section 90(2) provides that for granting

relief of tax or as the case maybe, avoidance of

double taxation, then, in relation to the assessee to

whom DTAA applies, the provisions of the Act shall

apply to the extent they are more beneficial to the

assessee.

Relief granted :

The FA 2013 has excluded the interest referred to

in section 194LC from the operation of provisions

of section 206AA with effect from 01-06-2013.

FA 2016 has further amended the provisions of

section 206AA (7) by extending the non-applicability

of this section in relation to any payment subject

to the conditions as may be prescribed .

Rule 37BC provides the relaxation from the

provisions of section 206AA. It mentioned that in

case of non-resident, not being a company, or a

foreign company and not having Permanent

Establishment (PE) the provisions of section 206AA

shall not apply in respect of payments of interest,

royalty, fees for technical services and payment on

transfer of any capital asset, if the deductee

furnishes the specified documents.

Latest Developments :

The Visakhapatnam ITAT held that TDS on salary

payment U/S 192 should be deducted as per

applicable rates in force after allowing basic

exemption limit and deductions towards investment

in savings etc. Unlike any other provisions of the

TDS, tax on salary can't be deducted by applying a

flat rate on gross amount. A careful study of the

APRIL, 2017


provisions of section 206AA made it clear that it is

not automatic that a flat rate of 20 per cent shall be

applied wherever PAN is not furnished. The deductor

shall compute the tax in the manner specified under

section 206AA, by applying the rate specified under

the relevant provision of the act, or at the rate or

rates in force and then, compared to flat rate of 20

per cent to decide whichever is higher.

It further held that it is settled position of law that a

short deduction of tax at source, by itself does not

result in a legally sustainable demand under sections

201(1) and 201(1A). The taxes cannot be recovered

once again from the assessee in a situation where

the recipient of income has already paid the due

taxes on such income.

Unless, the Assessing Officer verified himself that

the recipient of income has not paid the tax on such

income and demonstrate that the rate applied by

him was in accordance with the provisions of section

206AA, the assessee cannot be held as assessee in

default under sections 201(1) and 201(1A)

Note: The CBDT circular 1/2017 dated 02-01-2017

which contains the rate of deduction of income tax

from the payment of income chargeable under the

head "Salaries" during the FY 2016-17 has mandated

the furnishing of PAN by the employee in case of

receipt of any sum or income or amount, on which

tax is deductible. If the employee fails to furnish PAN

to the deductor the provisions of section 206AA shall

apply. It further states that the deductor should

determine the tax amount in all the three conditions

and apply the higher rate of TDS. However, where

the income of the employee computed for TDS u/s

192 is below taxable limit, no tax will be deducted.

But where the income of the employee computed

for TDS u/s 192 is above taxable limit, the deductor

will calculate the average rate of income-tax based

on rates in force as provided in sec 192.

If the tax so calculated is below 20%, deduction of

tax will be made at the rate of 20% and in case the

average rate exceeds 20%, tax is to be deducted at

the average rate. Education cess @ 2% and

Secondary and Higher Education Cess @ 1% is not

to be deducted, in case the tax is deducted at 20%

u/s 206AA of the Act.

This circular has answered the concerns raised by

the Visakhapatnam ITAT (supra) to the extent of

inability of the deductor in comparing the average

rate of tax and rate mentioned in sec 206AA.

The JAIPURITAT held that on perusal of the

provisions of section 206AA, primary onus is on

the person entitled to receive income on which

tax is deductible at source to furnish his PAN and

in case such PAN is invalid or does not belong to

the said person by deeming fiction, it has been

stated that he has not furnished his PAN to the

deductor. In such a scenario, the onus shifts on the

person responsible for deducting the tax that he

shall deduct the tax at the rate specified in the

relevant provisions of the Act or at the rate of 20

per cent whichever is higher.

The BangaloreITAT held that the obligation of

deducting tax at source arises only when there is

a sum chargeable under the Act. Thus, the

provisions of TDS should be read along with the

machinery provisions of computing the tax liability

on the sum in question and there is no scope for

deduction of tax at the rate of 20 per cent as

provided under the provisions of section 206AA

when the benefit of DTAA is available.

CBDT vide notification no. 2/2017 dated 06-01-

2017 has mandated that the person who has an

account (other than time deposit and basic savings

bank deposit account) maintained with banking

company or co-operative bank to which Banking

Regulation Act, 1949 applies and has not quoted

his PAN or furnished Form no. 60 at the time of

opening or subsequently, he shall furnish PAN or

Form no. 60 to a manager or officer of a banking

company or co-operative bank, as the case may be

on or before 28-02-2017.

One question remains is that who will get the

credit of TDS in case tax has been deducted

applying the provisions of section 206AA? (Food

for thought)

APRIL, 2017

THREE DAYS SEMINAR ON GSTOrganized By: Indirect Tax Committee

Hosted By: Visakhapatnam Branch SIRC of ICAI.

Date & Time : 19th, 20th & 21st of May 2017

Venue : ICAI Bhavan, Visakhapatnam


DAY-1 : Friday, 19th May 2017

Timing Topics & Speakers

09.45am-10.45am Inaugural Session

Lighting of the Lamp, Welcome Address and Keynote address by Chief Guest

10.45 to 12.15pm Brief Concept of Model GST Law including Concept of CGST, SGST & IGST

CA. V. Raghuraman, Bengaluru

12.15pm-12.30pm Tea Break

12.30pm-01.30pm Levy & Composition, Exemption from Tax


1.30pm-02.00pm Time of Supply of Goods & Services


02.00pm-02.30pm Lunch

02.30pm-03.30pm Valuation of taxable Supply & Valuation Rules(including related case law

CA. Jatin Christopher, Bengaluru

03.30pm-04.30pm Place of supply of goods and services



04.45pm-05.45pm Tax Credit (Capital goods, Services & input) including Matching Concept


DAY-2 Saturday 20th May 2017


10.00am -11.30am Brief Concept of IGST Act

CA. A. Saiprasad, Bengaluru

11.30am-11.45am Tea Break

11.45am-01.00pm JOB Work, E-Commerce Transaction Under GST

CA. A. Saiprasad, Bengaluru

01.00pm-02.00pm Lunch

02.00pm-03.30pm Important Transitional Provision

CA. S. Venkata Ramani, Bengaluru

03.30pm-04.45pm � Demand and recovery

� Offences and penalties

APRIL, 2017


Members Covered by One time payment scheme Rs.1200/- Rs.1700/-

Members Not covered by one time payment Scheme Rs.2000/- Rs. 2500/-

For Non Members Rs. 3000/- * Rs. 3500/-*

Delegate FeesPayments received

upto 13th May, 2017

Payments received

after 13th May, 2017

(Rs. 500/- Extra)

We request all the members to kindly register well in advance atleast one week before the conference in view

of expected large participation of delegates and to organise the venue, food and background material.

* Service Tax extra

Limited Seats, registration will be on first come-first serve basis for any further information / clarification

please contact : Chairman : CA. B. Venkata Rao, 92466 24286, Sectreaty : CA. M. Chalapathy Rao, 9849609836

� Prosecution and compounding of offences



05.00pm-05.30pm Payments & Refund Process


DAY-3 Sunday 21st May 2017


10.00am -11.30am Registrations: Law & Business Processes

Filing of Returns, matching of Input Tax Credit

CA. Ganesh Prabhu, Chennai

11.30am-11.45am Tea Break

11.45am-01.00pm Audit (Section 142 & 150) & Reconciliation Statement (Section 30)

CA. Ganesh Prabhu, Chennai

01:00 p.m. - 01:45 p.m. Lunch

01.45pm-03.15pm � Assessment, Advance Ruling and Settlement

� Appeals and revision

CA. V. S. Sudhir, Hyderabad

03.15pm-04.15pm Miscellaneous Provision Section 116 to 139



04.30pm-05.15pm Professional Opportunity under GST


Members are requested to do online payment to the following account :

ACCOUNT NAME : VISAKHAPATNAM BRANCH OF SIRC OF ICAI

ACCOUNT NO : 024510011011521 IFSC CODE : ANDB0000245

BANK NAME : ANDHRA BANK BRANCH NAME : PITHAPURAM COLONY

Please forward the UTR No., Name and Membership No. to the following mail ID : [email protected] after making the payment.

APRIL, 2017


PROGRAMME

Visakhapatnam Branch of

Southern India Regional Council of

The Institute of Chartered Accountants of India

Cordially invites you for the

40TH BRANCH FORMATION DAY

On Sunday, 23rd April 2017 at 10.00 am

Organised by Visakhapatnam Branch of SRIC of ICAI

09.40 am-09.55 am Fellowship with Tea and Snacks

10.00 am - 11.00 am Inaugural Session

Lighting of Lamp, Opening Remarks, Keynote Address by Chief Guest

Prof. G. Nageswara Rao, Vice-Chancellor, Andhra Univeristy

11.00am-12.30pm Technical Session- 1

Documentation with reference to Peer Review

CA. B. Sekkizhar, Hyderabad

12.30pm-01.00pm Felicitation to Three Past Chairmen of the Branch

CA. P. V. KALIPRASADA RAO

CA. SRIPADA SADASIVA

CA. P. RAMAKRISHNA

01.00pm-02.00pm Technical Session -2

Emerging Challenges and Opportunities in Practice

CA. B. Sekkizhar, Hyderabad

02.00pm Lunch

CA. B. Venkata RaoChairman

CA. M. Chalapathy RaoSecretary

APRIL, 2017

WE CONGRATULATE

CA. Ramakrishna S

Visakhapatnam

Member, Committee on Indirect Taxes

Standing Committee

Member from our Branch who has been

Coopted to the Committee constituted

by SIRC


Visakhapatnam Branch of SIRC of ICAID. No. 9-36-22/2, Pithapuram Colony, Visakhapatnam -530 003 Ph : 2755019, Cell : 92466 24286

e-mail : [email protected] Website : www.icaivisakhapatnam.org

For further details and registration please contact


invites

all the CPT students to join

Renowned Faculty Members

Conveninent timings to all

2.00 pm to 8.30 pm

Web based

Two Months

CPT Coaching Classes

Organised by SIRC of ICAI

from 6th April 2017

Golden Opportunity to

Students !!

Fee

Rs. 2500/-

IPCC MOCK TEST - MAY 2017FEE : Rs. 100 PER SUBJECT

TIME : 10.00 AM TO 01.00 PM

SR.NO PAPER DATE

1 ACCOUNTS 05.04.17

2 LAW 06.04.17

3 COSTING & FM 07.04.17

4 DT & IDT 08.04.17

5 ADV ACCOUNTS 09.04.17

6 AUDITING 10.04.17

7 IT & SM 11.04.17

FINAL MOCK TEST - MAY 2017FEE : Rs. 100 PER SUBJECT

TIME : 10.00 AM TO 01.00 PM

SR.NO PAPER DATE

1 FIN REPORTING 05.04.17

2 STRATEGIC FIN MANAGEMENT 06.04.17

3 ADV AUDITING & PRO ETHICS 07.04.17

4 CORPORATE AND ALLIED LAWS 08.04.17

5 ADV MANAGEMENT ACCOUNTS 09.04.17

6 ISCA 10.04.17

7 DIRECT TAX 11.04.17

8 INDIRECT TAX 12.04.17

We invite the interested members to give their willingness to value

the Mock Test answer sheets of IPCC and Final Examinations conducted

at the Visakhapatnam Branch. Please refer detailed mail.

APRIL, 2017


1. Members are requested to visit the premises in Krishna Nagar Unit - 2 (Old Pallavi, Manipal Hospital)

to be in fasting from 12 midnight till you reach the Lab.

2. Have breakfast after giving blood sample and attend for other tests immediately thereafter. The

tests may last till noon.

3. Doctor consultation can be had in the evening there by one full day may be earmarked for this

purpose. The Mammography, Pap Smear tests will be done at MyCure Hospitals, Near Jagadamba

Premises Unit - 1.

4. The scheme is negotiated for a period from 23.02.2017 to 25.04.2017.

5. The contact numbers are 9032996139, 0891-3044545. For further details, please contact

Mr. R. Ramachandra Rao of MyCure Hosptials.

Haemogram

Lipid Profile

Liver Function test (LFT)

Renal Function test (RFT)

Blood Grouping and RH typing

X - Ray Chest

ECG

2D echo / (TMT on doctors

advise)

Ultrasound abdomen screening

Complete Urine Examination

Thyroid Profile

HBs Ag

Mammography (above 40 yrs)

Pap Smear

Physician Consultation

Cardiologist Consultation

Audiometry

Ophthalmology

screening

Health Check Plan for CA Family MembersThe Managing Committee is pleased to announce its members of the Branch that Health Check Package was

negotiated with Mycure Hospitals for a discounted price of Rs.2000/- per person covering the following Tests

Only Rs.2000/-

Best Bargain

Address :`

Unit 1: # 18-1-3,

KGH Down, Maharanipet,

Jagadamba Junction,

Visakhapatnam - 530002

Unit 2 : # 15-2-9,

Old Pallavi Hospital,

Gokhle Road,

Maharanipet,

Visakhapatnam - 530002

It is the wish of the Managing Committee that

every member may go for the Health Check

once a year. Lack of exercises, odd working

hours, stress etc., are causing potential health

problems and this health check package helps

in detecting and preempting the onset of a

disease and reassurance. This helps in

increased awareness about healthy life style,

healthy diet and exercises.

Wish you Healthy Life

Managing Committee

APRIL, 2017


SEMINAR ON THE EVE OF INTERNATIONAL WOMEN’S DAY ON 8TH MARCH 2017

Dr. R. Sashi PrabhaChief Guest

Smt. Soumya Pandey Jain, IRS, Asst. Commr. - Range 3Guest of Honor

CA. C. Padmaja

CA. G. Bhavani

CA. M. Rukmani Devi

BANK AUDIT SEMINAR ON 11TH MARCH, 2017

STUDY CIRLCE MEETING - GST ON 15TH MARCH, 2017 STUDY CIRLCE MEETING - ICDS ON 22ND MARCH, 2017

SEMINAR ON BANK BRANCH AUDIT ON 18TH MARCH, 2017

SEMINAR ON HOW TO FACE CA EXAMS ON 4TH MARCH, 2017

Sri C M Minocha

DGM, Union Bank

CA. V. Chandrasekhar CA. D. Premnath

CA. B.V. Rao receiving memento

CA. P.V.S.P. Kumar Prof. Y. Goutam Rao

Published by CA. B. Venkata Rao, Chairman on behalf of Visakhapatnam Branch of SIRC of The Institute of Chartered Accountants of India, Visakhapatnam and

Desgined at Maruthi Printers, D.No.30-5-17, Krishna Gardens, Dabagardens, Visakhapatnam - 20, Cell : 92469 32859, email : [email protected] and

Published for Visakhapatnam Branch of SIRC of ICAI, D.No.9-36-22/2, Pithapuram Colony, Visakhapatnam - 530 003, Ph : 0891-2755019, email :

[email protected] Editor : CA. K. Ramachandra Rao Visakhapatnam Branch of SIRC of ICAI

The Views expressed by contributors in this Newsletter do not necessarily reflect the opinion of the Branch or the Institute

SICASA : SEMINAR ON BANK AUDIT ON 25TH MARCH, 2017

From Left to Right : B. Geetha, Treasurer, SICASA, K. Rama Ahlad,

Vice Chairman, SICASA, CA. K. C.S. Guru Prasad, Resource Person,

CA. V. Ram Prasad, Chairman, SICASA,, CA. K. Ramachandra Rao,

Resource Person, M. Lalitha, Secretary, SICASA

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