BCAS Newsletter, August 2008 1 President : Anil Sathe, 24367693; Vice-President : Ameet Patel, 66178000; Hon. Secretaries : Pradip Thanawala, 22694248; Mayur Nayak, 26831199; Hon. Treasurer : Deepak Shah : 22420089 P R O G R A M M E S A T A G L A N C E 7, Jolly Bhavan No. 2, New Marine Lines, Mumbai-400020. Tel. Nos. : 66595601 to 05; Fax : 66595606 E-mail : [email protected]; Website : www.bcasonline.org Vice-President’s Communiqué . . ✍ Day & Date : Wednesday, 10th September 2008 Speaker : Gautam Nayak, Chartered Accountant Subject : Issues in Tax Audit Day & Date : Wednesday, 15th October 2008 Speaker : Vispi Patel, Chartered Accountant Subject : Issues in transfer pricing assessments Please note that the lecture meeting scheduled on 20th August 2008 to be addressed by Amarjit Chopra has been postponed. *Fellowship over a cup of tea at 5.45 p.m. Lecture Meetings Venue : 4th floor, IMC, Churchgate, Mumbai-400020. Time : 6.15 p.m. (unless otherwise specified) Half day workshop on CARO reporting issues and Schedule VI compliances ............................. 29-8-2008 ....... BCAS Conference Hall, BCAS ...................... 3 Half day seminar on Recent Developments in the Stamp Act & Amnesty Scheme 2008 ........ 30-8-2008 ....... Gulmohar, BCAS .............................................. 2 A workshop To construct the path of your own destiny ................................................................... 4-10-2008 ....... BCAS Conference Hall ................................... 2 BCAS Study Circles for 2008-2009 ....................................................................................................... 2008-2009 ...... BCAS Conference Hall ................................... 7 BCAS Foundation — Book lending facility for CA Students .................................................................................................................................................................... 8 Harnessing Talent and Providing Quality Service August 2008 Vol. 11 No. 5 Dear Members, “Success in business requires training and discipline and hard work. But if you’re not frightened by these things, the opportunities are just as great today as they ever were” — David Rockefeller “Training is everything. The peach was once a bitter almond; cauliflower is nothing but cabbage with a college education” — Mark Twain Training one’s people will be the key to facing challenges of the future. As human resources get pricier and more and more difficult to source, professional firms would find that training will assume centre stage in their respective firms. An organisation that is able to get the best out of its people will be strategically more competitive and successful. Ironically, this very important aspect of practice management is more often than not either ignored completely or given very little importance by professionals. We at BCAS recognise the fact that for smaller firms it is very difficult to allocate resources of time and trainers for training their staff. With a view to tackling this situation, we are now laying stress on the training aspect while planning our activities. The first step in this direction was taken recently by the Taxation Committee by organising a half-day workshop on ‘How to conduct a tax audit’. The resounding success of this workshop was established by the fact that we had an attendance of more than 300 students from a large number of CA firms. It is obvious that there is a growing need for good training material. BCAS will endeavour to provide this to its members and to their staff. We seek your wholehearted support in doing so. Organisationally, at BCAS, we have made a few additions to our staff strength. We hope that with these additional resources, we will be able to bring about a qualitative change in our administration and in our programmes. If any of you has any grievance of any kind with relation to the functioning of the BCAS, please do not hesitate to bring it to my attention. My contact details are printed in this newsletter. The month of August brings with itself lots of festivities and also our Independence Day. The sports enthusiasts would be having a great time watching the Olympic events unfolding at Beijing. The rain God is also batting on a strong wicket in most parts of the country! I hope that each one of you is enjoying these moments. Yours sincerely, Ameet N. Patel A person who gives a bribe encourages corruption. He has no right to complain about the evils of corruption !
Half day workshop on CARO reporting issues and Schedule VI compliances ............................. 29-8-2008 ....... BCAS Conference Hall, BCAS ...................... 3
Half day seminar on Recent Developments in the Stamp Act & Amnesty Scheme 2008 ........ 30-8-2008 ....... Gulmohar, BCAS .............................................. 2
A workshop To construct the path of your own destiny ................................................................... 4-10-2008 ....... BCAS Conference Hall ................................... 2
BCAS Study Circles for 2008-2009 ....................................................................................................... 2008-2009 ...... BCAS Conference Hall ................................... 7
BCAS Foundation — Book lending facility for CA Students .................................................................................................................................................................... 8
Harnessing Talent and Providing Quality Service August 2008Vol. 11 No. 5
Dear Members,
“Success in business requires training and discipline andhard work. But if you’re not frightened by these things, theopportunities are just as great today as they ever were”
— David Rockefeller
“Training is everything. The peach was once a bitter almond;cauliflower is nothing but cabbage with a college education”
— Mark Twain
Training one’s people will be the key to facing challenges of the future.As human resources get pricier and more and more difficult to source,professional firms would find that training will assume centre stage intheir respective firms. An organisation that is able to get the best outof its people will be strategically more competitive and successful.Ironically, this very important aspect of practice management is moreoften than not either ignored completely or given very little importanceby professionals.
We at BCAS recognise the fact that for smaller firms it is very difficultto allocate resources of time and trainers for training their staff. Witha view to tackling this situation, we are now laying stress on thetraining aspect while planning our activities. The first step in thisdirection was taken recently by the Taxation Committee by organisinga half-day workshop on ‘How to conduct a tax audit’. The resoundingsuccess of this workshop was established by the fact that we hadan attendance of more than 300 students from a large number of CAfirms. It is obvious that there is a growing need for good trainingmaterial. BCAS will endeavour to provide this to its members and totheir staff. We seek your wholehearted support in doing so.
Organisationally, at BCAS, we have made a few additions to our staffstrength. We hope that with these additional resources, we will be ableto bring about a qualitative change in our administration and in ourprogrammes. If any of you has any grievance of any kind with relationto the functioning of the BCAS, please do not hesitate to bring it tomy attention. My contact details are printed in this newsletter.
The month of August brings with itself lots of festivities and also ourIndependence Day. The sports enthusiasts would be having a greattime watching the Olympic events unfolding at Beijing. The rain Godis also batting on a strong wicket in most parts of the country! I hopethat each one of you is enjoying these moments.
Yours sincerely,
Ameet N. Patel
A person who gives a bribe encourages corruption. He has no right to complain about the evils of corruption !
BCAS Newsletter, August 20082
‘Develop Inner Strength and Harmony’
A workshopTo construct the path of your own destinyMr. Murli Mehta, a renowned trainer and advisor will lead a BookDiscussion on the proven techniques to tap the power that lies withinyou.
This book discussion is based on the New York Times’s BestsellerBook “You’ll See It When You Believe It” by Dr. Wayne Dyer.
A copy of the book will be provided. The discussion will throw lightfrom different angles on the salient points which empower us to leadan effective and harmonious life.
It is for you to explore the possibilities to :
➠ Develop a Strong Inner-Faith,
➠ Live with Meaningful Detachment and Forgiveness,
➠ Achieve Harmony in Relationships,
➠ Choose The Life of Abundance,
➠ Do the Things You Love to Do.
Spouses of Members will also find this workshop meaningful anduseful by participation.
Day & Date : Saturday, 4th October 2008
Time : 9.00 a.m. to 5.30 p.m.
Venue : BCAS Conference Hall
Fees : Rs.1420 per person.(for BCAS members and their families only)(Inclusive of cost of breakfast, lunch, tea, the book andcontribution of Rs.20 to BCAS Foundation.)
Enrolment form is printed on page 8.
Chairman : Rajesh MuniConvenors : Manish Sampat
Aliasgar KherodawalaMukesh Trivedi
Half-day seminar onRecent Developments in
the Stamp Act & Amnesty Scheme 2008This half day seminar will provide recent updates and developmentsin the Stamp Duty regime. It will also cover the provisions andregulations of the ongoing amnesty scheme. This programme isintended for professionals to present their queries and interact withthe experienced faculty. We are also privileged to invite the Collectorof Mumbai as the chief guest on this occasion.
Day & Date : Saturday, August 30, 2008
Time : 10 a.m. to 1 p.m.
Venue : Gulmohar, BCAS
Speaker : Kantilal Unadkat, Advocate & Solicitor
*Chief Guest : Sudhir Khanapure, Additional Collector of Stamps,Mumbai.
Fees : Rs.100 per person for BCAS Member (Add Rs.20 forBCAS foundation)
A CD containing data of theBCAJ for the last 8 years viz.from April 2000 to March2008, is now available forsale.
It has advanced andsophisticated search option,using which any information
can be accessed with just a few clicks of the mouse. Thispowerful tool to assist you in your professional practice isavailable at a very nominal cost of Rs.400 to members andjournal subscribers and at Rs.500 to others. Postage chargesfor the same would be Rs.20, extra.
Kind attention : MembersHave you renewed your Membership for the
financial year 2008-09 ?
If not, please do so immediately.
Please send your renewal fees to :
Bombay Chartered Accountants’ Society’s office,between 10.30 a.m. and 5.30 p.m. on Monday to Friday
The next Charitable Trust Clinic will be held on Friday, 5thSeptember 2008, from 5 p.m. to 7 p.m. in the library roomof BCA Society at New Marine Lines.
Chartered Accountants and Trustees interested in having theirqueries solved are requested to call the Society’s office (Mrs.Mistry on extn. 20) and obtain a prior appointment, latest bynoon on the day of the Clinic. Querists are also advised tobring along relevant papers like trust deeds, audited accounts,etc.
The next Accounts & Audit Clinic will be held on Saturday,6th September 2008, from 10.30 a.m. to 11.30 a.m. in thelibrary room of BCA Society at New Marine Lines.
Persons interested in having their queries pertaining toaccounting and auditing issues solved, are requested to sendthe queries by email to [email protected] one week inadvance and call the Society’s office (Mr. Rajaram onextensions 13 & 21) to obtain prior appointment, at least a daybefore the day of the Clinic. Please note that the Panel willnot answer any queries pertaining to tax issues.
Charitable Trust Clinic
Right to Information ClinicBCAS Foundation operates Right to Information (RTI) Clinic on aregular basis. RTI Clinic is operated by Mrs. Hema Sampat, aresearch scholar on the subject of RTI, Mr. A. K. Asher, Advocate& RTI activist and Mr. Narayan Varma, past President, BCAS.
The Clinic provides help and guidance to BCAS members as alsoto non-members, i.e., all citizens, for making applications under theRTI Act and also assists in resolving any related difficulties on thesubject of RTI.
The RTI Clinic operates on every 2nd, 3rd and 4th Saturdayfrom BCAS’s office — 11 a.m. to 1 p.m.
The next RTI Clinic days accordingly are 16th, 23rd August2008 and 13th, 20th and 27th September 2008. Please call theSociety’s office (Ms. Shernaaz) to obtain a prior appointment.
Half-day workshop onCARO reporting issues and
Schedule VI compliancesWith the introduction of CARO (2003), the responsibility of auditorshas increased due to various clauses where more detailed informationand assertions are sought from them. The task of auditors has becometoo onerous and there are various issues which are still intriguing forthem while preparing the auditor’s report.
Schedule VI disclosure requirements are also to be complied with bycompanies preparing audited accounts. However, there are certaindetails, disclosures of which are missed out while preparing theaccounts.
To address the issues faced while preparing auditor’s report and alsoto provide guidance on compliances to be looked into while preparingthe accounts in conformity with Schedule VI requirements, this half-day workshop has been conceived. It will provide participants clarityin the preparation of accounts and reporting on the accounts audited.
Faculty : Vijay Maniar, Chartered Accountant— CARO Reporting Issues
: Eminent Chartered Accountant— Schedule VI compliances
Day and Date : Friday, 29th August 2008.
Time : 2.30 p.m. to 6.30 p.m.
Venue : BCAS Conference Hall
Fees : Rs.400 (including contribution of Rs.20 to BCASFoundation and cost of study material, if any, snacksand tea)
Man’s knowledge of science has clearlyoutstripped his knowledge of man. Our onlyhope of making the atom servant ratherthan master lies in education, in a broadliberal education where each student withinhis capacity can free himself from trammelsof dogmatic prejudice and apply hiseducational accoutrement of besettingsocial and human problems.
— Harry Woodburn Chase
BCAS Newsletter, August 20084
Course fee for TDS module
/4/5
BCAS Newsletter, August 2008 5
BCAS Publications for Sale
(1) Harmful Tax Competition— An Emerging Global Issue 100 25
(2) CD on the discussions conducted at the39th RRC 2006 by various paper writers 100 20
(3) Audit Checklist for CompaniesFor a member 300 50
For a non-member 350 50
(4) Registration of Firms with RoFFor a member 25 20
For a non-member 30 20
(5) Laws & Business— A Compendium (2nd Edition)
For a member 200 60For a non-member 250 60
(6) International Tax & FinanceConference 2007 (Set of 5 Papers)
For a member 400 70For a non-member 500 70
(7) Right to Know − The Right to InformationAct, 2005 (Pack of 10 booklets) 50 15
(8) Service TaxBasic Concepts and Procedures 35 20
Goods Transport Agency Services 30 20Revised and Updated up to June 2008
(9) EPC Contracts — a monograph 200 50
Name of the Publication Price Postage(Rs.) (Rs.)
Books
Name of the Publication Price Postage(Rs.) (Rs.)
Books
Accounting & Auditing
Chairman Hemendra N. Shah
Co-chairman Harish N. Motiwalla
Convenors Abhay R. MehtaKamlesh L. DoshiNarayan R. Pasari
Diamond Jubilee
Chairman K. C. Narang
Co-chairman Narayan Varma
Convenors Pradip ThanawalaRajeev N. Shah
Human Resources
Chairman Rajesh R. Muni
Convenors Aliasgar Z. KherodawalaManish P. SampatMukesh G. Trivedi
Indirect Taxes and Allied Laws
Chairman Pranay H. Marfatia
Convenors Raman H. JokhakarSatish B. KanodiaToral C. Mathuria
Chairmen and Convenors of 0ther Committees for the year 2008-09
Information Technology
Chairman Shariq M. Contractor
Convenors Manish J. UnadkatNikunj S. ShahSamir L. Kapadia
International Taxation
Chairman Pinakin D. Desai
Co-chairman Rajesh S. Kothari
Convenors Dhishat B. MehtaNitin P. ShingalaSushil U. Lakhani
Journal
Chairman Gautam S. Nayak
Co-chairman Sanjeev R. Pandit
Convenors Anup P. ShahGaurang V. Gandhi
Research
Chairman Ashok K. Dhere
Co-chairman Dilip J. Thakkar
Convenors Mayur C. KisnadwalaNandita P. Parekh
Seminar & Public Relations
Chairman Uday V. Sathaye
Convenors Hiten C. ShahRajeev N. ShahYatin K. Desai
Strategic Studies
Chairman Govind G. Goyal
Convenors Bhargava K. VatsarajHimanshu V. VasaManish R. Reshamwala
Taxation
Chairman Kishor B. Karia
Co-chairman Rajesh S. Shah
Convenors Chetan M. ShahKirit R. KamdarSonalee A. Godbole
BCAS Foundation
Chairman Nayan C. Parikh
Convenors Sangeeta S. PanditSaurabh P. Shah
Ex-officio : Anil J. Sathe, Ameet N. Patel
Note : Cheque should be drawn in favour of “Bombay Chartered Accountants’Society”, except in case of sr. no. 7, where it should be drawn infavour of “BCAS Foundation”.
BCAS Newsletter, August 20086
Contributed byGaurang Gandhi
The Reserve Bank of India has issued 5 Circulars and 1 Notification.
A.P. (DIR Series) Circular No. 1, dated July 11, 2008
Security for External Commercial Borrowings — Liberalisation
Presently, RBI permission is required for creation of charge onimmovable assets, financial securities and issue of corporate orpersonal guarantees, on behalf of the borrower in favour of theoverseas lender, to secure the ECB under automatic approval route.
Through this Circular, RBI has delegated, subject to certain terms andconditions, the power to grant ‘no objection’ under FEMA for creationof charge on immovable assets, financial securities and issue ofcorporate or personal guarantees, in favour of the overseas lendersecurity trustee, to secure the ECB to be raised by the borrower.
A.P. (DIR Series) Circular No. 2, dated July 31, 2008
Project Offices — Foreign Currency Accounts in India
Presently, foreign companies having Project Offices in India arepermitted to open only one foreign currency account for each project.
This Circular permits, with immediate effect, each Project Office toopen an additional foreign currency account with the same bank i.e.,Project Offices can now open two foreign currency accounts with thesame bank.
A.P. (DIR Series) Circular No. 3, dated August 04, 2008
Advance Remittance for Import of Rough Diamonds
Presently, an importer (other than a Public Sector Company or aDepartment/Undertaking of the Government of India/State Government/s) is permitted to make advance remittance without any limit andwithout bank guarantee or standby letter of credit for import of roughdiamonds into India from 6 entities.
This Circular has added two more names to this list, taking the totalto 8 entities. The two entrants to the list are :
(i) RIO TINTO, Belgium, and
(ii) BHP Billiton, Belgium.
A.P. (DIR Series) Circular No. 4, dated August 04, 2008
Exchange Earner’s Foreign Currency (EEFC) Account
This Circular provides that from November 1, 2008, all EEFC Accountswill be permitted to be opened and maintained only in the form ofnon-interest bearing current accounts.
A.P. (DIR Series) Circular No. 5, dated August 04, 2008
Guidelines on Trading of Currency Futures in Recognised Stock/New Exchanges
Notification No. FEMA 177/RB-2008, dated August 01, 2008
RBI has introduced currency futures in recognised stock exchangesor new exchanges recognised by the Securities and Exchange Boardof India (SEBI) in the country. The currency futures market wouldfunction subject to the directions, guidelines, instructions issued by theReserve Bank and the SEBI, from time to time.
This Notification permits persons resident in India to participate in thecurrency futures market in India, subject to directions contained in theCurrency Futures (Reserve Bank) Directions, 2008 [Notification No.FED.1/DG(SG)-2008, dated August 6, 2008] (Directions) issued by theRBI. A copy of the directions and the above Notification are annexedto the said Notification.
Forthcoming Study Circle Meetings*Venue : BCAS Conference Hall, BCAS
Date & Day Time Subject Speaker Study Circle/Group Convenors
Monday 6.15 p.m. Stamp Duty Amnesty Scheme Advocate Economic Law Rajesh R. Shah25-8-2008 to 8.00 p.m. Vinod Sampat Study Circle Ashok L. Sharma
Tuesday 6.15 p.m. Discussion on Practical Issues/ Rajesh P. Shah FEMA Satish Kanodia26-8-2008 to 8.00 p.m. Questions/Answers covering all Study Circle Naren Madlani
regulations of FEMA Rajesh P. Shah
Thursday 6.15 p.m. Section 14A, Recent Developments CA Mayur Desai Direct Tax Mayur Kisnadwala28-8-2008 to 8.00 p.m. Study Circle Manesh Gandhi
Chetan Shah
Tuesday, 6.15 p.m. SWOT Analysis for CAs CA Kirit Dedhia HRD Study Circle Gracy Mendes2-9-2008 to 8.00 p.m. Rishi Kapadia
* These meetings are restricted to members of that particular Study Circle only.
BCAS Newsletter, August 2008 7
Enrolment Form
Name : .......................................................................................................
Mobile : ................... Fax : ...................... E-mail : .................................
Cash/Draft/Cheque No. .................. drawn on .............................. Bank,
dated .................. for an amount of Rs. ........................... is enclosed.
Date : ................. Signature
Study Subject TickCircle whereverNo. applicable
I Direct Tax Laws
II Indirect Tax Laws
III Company Law, Auditing and Accounting
IV FEMA
V Economic & Allied Laws
VI Computers
VII Human Resource Development
VIII Internal Audit Studies
Notes :
1. Fees include Rs.20 as contribution to BCAS Foundation.
2. Venue : Generally, all Study Circle meetings would be held at the Confer-ence Rooms at BCAS. In exceptional cases, at other venues.
3. Enrolment to the Study Circles is open to all members.
4. It will be our endeavour to hold 6 to 10 meetings of each Study Circle ina year.
BCAS Study Circles for 2008-2009The concept of Study Circle was initiated by BCAS. It helps participantsto analyse and discuss topics of relevance to professionals. Unlike otherprogrammes, Study Circles are very interactive and enable members toshare their views on the subject. Those of you who have been membersof these Study Circles in the past have experienced the joys and thetreasure of knowledge and invaluable contacts that these Study Circlesbring in into your professional lives.
BCAS announces the formation of Study Circles for the financial year2008-2009.
Members desirous of sharing and gaining knowledge are invited to jointhe Study Circles. The fee for each study circle has been kept at Rs.300for the year. Details of the Study Circles are given in the table alongside.
CUT HERE CUT HERE CUT HERE CUT HERE CUT HERE CUT HERE� � � � � � � �
This scheme started last year, has received encouragingresponse with many members having taken its benefit. Itfacilitates members to receive BCAS publications at theirdoorstep. All members, journal subscribers, students and non-members can take benefit of this scheme. Brief modalities ofthe scheme are as follows :
➠ Rs.2500 to be kept with the Society as an imprest cashin your account. Non-member will have to pay additionalRs.250 for account handling charges.
➠ The base level would be Rs.250 which needs to bereplenished again to Rs.2500 by the person opting forthe scheme.
➠ Publications/Conference papers/CDs costing less thanRs.250 would be sent to you as soon as published/released, along with English Edition of the Budget Pub-lication (a set of 5 books).
For further details of the scheme :
Visit Society’s website at www.bcasonline.org orcontact Society’s office.
Imprest Scheme for Publications
Blessed are they who have the gift of making friends, for it is one of God’s best gifts. It involvesmany things, but above all, the power of going out of one’s self, and appreciating whateveris noble and loving in another.
— Thomas Hughes
BCAS Newsletter, August 20088
Edited, printed & published by Narayan Varma on behalf of Bombay Chartered Accountants’ Society, Mumbai-400020. Printed at Vijay Mudran, Mumbai-400031.
Combined Enrolment Form
Please fill in the above form appropriately and send the same to the Society’s office along with the 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 w.e.f. 1-9-2008 the cash counter timings will be from 10.30 a.m. to 5.30 p.m. on Monday to Friday and 10.30 a.m. to 1 p.m. onSaturday. The lunch time is 1 p.m. to 2 p.m. Members are requested to co-operate in this regard.
Name : ...................................................................................................................................................................................................................................................................
Cash / Draft / Cheque No. .................................. drawn on ..................................................................................................................................................................... Bank,
dated .................................... for an amount of Rs. ............................................................................... is enclosed.
Date : ............................... (Signature)
wherever applicable
CUT HERE CUT HERE CUT HERE CUT HERE CUT HERE CUT HERE
Registered with the Registrar of Newspapers for India under R.N. 68365/98 Regd. No. MH/MR/South-88/2006-08Licensed to post without prepayment : Licence no. South-12/2006-08. Posted at Mumbai Patrika Channel Sorting Office, Mumbai-1.
WORKSHOP :
A workshop To construct the path ofyour own destiny 4-10-2008 Rs.1420 per person ........
Half day workshop on CAROreporting issues and Schedule VIcompliances 29-8-2008 Rs.400 ............................
Enrolment Form for the Book Lending Facility for C.A. Students
Name : ..................................................................................................................................................................................................................................
Mobile : .................... Tel (O) : ....................... Tel. (R) : ...................... E-mail : ............................ Student’s Regn. No. with ICAI : .....................
Member’s Name : ........................................................................................................................ Member’s BCAS Registration No. : .........................
(Student’s Signature)
I the undersigned hereby recommend Mr./Ms. .................................................................................................... for availing book lending facilityof the BCAS foundation. I will ensure that the borrowed books are returned back within the stipulated period.
Date : ....................... Membership no. ....................... (Member’s Signature)
The BCAS Foundation has started an Academic Book LendingFacility for ‘PE II’ & ‘Final Level’ Chartered Accountancy students.This facility is meant to assist all those students who have in themthe capability to achieve great heights but have not been able torealise their dreams due to constraints.
After consulting various experienced faculties and one to oneinteraction with students pursuing the course, a list of academic booksfor both PE II & Final Level students has been formulated.
The scheme is in force from 15th of February 2008.
Kindly note that only students recommended by the members ofBCAS are entitled for this scheme. This facility is available tostudents of Mumbai, Navi Mumbai and Thane District only.
Students can also access the list of books in the Students’ Corneron the BCAS website (www.bcasonline.org).
Desiring students should immediately approach the Librarian Ms.Madhuri Haware at BCAS Office (l [email protected]/[email protected] or call on 66595601/02/03/04/05 Extn no. 24)for further inquiries. The enrolment form is given below.
BCAS FoundationBook lending facility for CA Students
