Taxpertindia

Govt. notifies revised India-Cyprus tax reaty and protocol

noreply@blogger.com (Dhaval Desai) — Thu, 12 Jan 2017 05:54:00 +0000

Government of India notifies the revised India-Cyprus tax treaty and the Protocol signed between the two countries on 18 November 2016.

The provisions of the revised India-Cyprus tax treaty and protocol are to come into effect in India from Financial Year 2017-18.

Refer Notification No. 3/2017/F. No. 504/05/2003-FTD-I dated 10 January 2017.

JhanCAr - Togetherness Networking Carnival for Chartered Accountants | 13th & 14th December 2014

noreply@blogger.com (Dhaval Desai) — Sun, 21 Sep 2014 09:03:00 +0000

JhanCAr - 'Togetherness & Networking Carnival' for Chartered Accountants

An Event filled with Fun, Frolic and Networking for Chartered Accountants of all age group

LET’S MAKE THIS EVENT A HUGE SUCCESS – WE AWAIT YOUR ACTIVE PARTICIPATION

BCAS strives to evolve continuously, adapt and remain relevant in changing times that has contributed to the longevity of the organization over the last six decades. As a premier voluntary group of Chartered Accountants, BCAS is acclaimed for conceptualizing and implementing innovative events aimed towards enhancing the suitability of its members in an ever-changing dynamic governance environment. In this constant endeavour BCAS has now firmed up its initiative to organise a first-of-its-kind ‘Togetherness and Networking Carnival’ for Chartered Accountants christened as ‘JhanCAr’.

JhanCAr is modelled and driven by an enthusiastic youth-wing of the BCAS under the mentorship of veteran committee members. The idea of JhanCAr evolved from BCAS’s clear objective of having a non-technical and non-academic festival of, by and for the Chartered Accountants with the two key targets of networking and celebrating togetherness. With simultaneous events happening across multiple venues under the premier carnival location of Jashoda Rangmandir(Next to N.M Collage), Juhu, Vile Parle (West); JhanCAr aims to power-pack the two days of 13^thand 14^th December, 2014 with festivities that would exceed the expectations of participating Chartered Accountants.

Register Now!! Limited Capacity!! First cum First Serve Basis!!

Online Registration and Payments: www.bcasjhancar.com

Offline Registration

Collect forms from BCAS office or Download forms from www.bcasjhancar.com and submit at:

Bombay Chartered Accountants' Society, 7, Jolly Bhavan 2, Ground Floor, New Marine Lines, Mumbai – 400020

Events at JhanCAr 2014

Networking Night: Work coupled with Network can create wonders. Recreate the nostalgia and take home a new network at ‘Ek Sham Dosti Ke Naam’ – Register Now

Competitions Caravan: Compete in interesting individual and group games get the tagline of‘Khelein Hum Jee Jaan Se’. – Register Now

Workshops Wonder: Interesting non-technical workshops and live demonstrations await you at‘Masti Ki Paatshala’.

Corporate Connect: A rare occasions to network and connect with leading and relevant corporatesrecommending their best wares at ‘Corporate Mela’.

Fun-and-Frolic: For your family and in remembrance of good old days, the ‘Hum Bhi AgarBachche Hote’ fair. Book a Stall now

We look forward to meeting you in person to make JhanCAr a memorable beginning.

More at www.bcasjhancar.com

PLEASE FORWARD THIS MESSAGE TO YOUR FRIENDS/COLLEAGUES/ etc. HELP US TO MAKE THIS EVENT GRAND SUCCESS

Team JhanCAr!!

Dedicate to Serve Fun-Filled Memories

Key Contacts

Chirag Doshi Kinjal Shah

9820452332 9892100844

em@bcasonline.org

ICAI clarification on applicability of SA 700 on tax audit reports_44AB of ITA - SA 700 deferred by a year only for the limited purpose of tax audit report (emphasis supplied)

noreply@blogger.com (Dhaval Desai) — Fri, 05 Jul 2013 09:35:00 +0000

ICAI Announcement

Clarification Regarding Applicability of SA 700 on Tax Audit Report under Section 44AB of The Income-Tax Act, 1961. - (05-07-2013)

As the members are aware that all audit reports in respect of audits of financial statements for period beginning on or after 1st April 2012 are to be issued in accordance with the requirements of SA 700(Revised) - Forming an Opinion and Reporting on Financial Statements. In this regard, ICAI has been receiving mails seeking clarification regarding applicability of SA 700 on tax audit reports, i.e. Form No. 3CA/3CB.

Considering the fact that all tax audit reports are now mandatorily required to be filed online and that the format of tax audit report is prescribed by the Central Government, the Council in its 325th meeting held from 1st June to 3rd June, 2013 decided to defer the applicability of SA-700 (Revised) on the tax audit report under section 44AB of the Income-tax Act,1961 by one year i.e. the requirements of SA-700(Revised) are not applicable for tax audit reports filed up to 31st March, 2014.

ICAI is further taking up the matter with the appropriate authorities so that suitable changes can be brought in the forms relating to tax audit.

Source: http://www.icai.org/new_post.html?post_id=9687&c_id=219

Procedure for providing Inspection or Certified Copies of Evaluated Answer Books

noreply@blogger.com (Dhaval Desai) — Sun, 15 Jan 2012 10:22:00 +0000

ICAI has announcd the Procedure for providing Inspection or Certified Copies of Evaluated Answer Books.

Click here to read the full text: Announcement

Announcements - Definition of Relative in Chapter-IV of the Council General Guidelines, 2008 - (29-07-2011)

noreply@blogger.com (Dhaval Desai) — Sat, 06 Aug 2011 15:28:00 +0000

ANNOUNCEMENT

No. ICAI/ESB//2011/02

All the members of the Institute of Chartered Accountants of India (ICAI) are

hereby informed that in terms of its decision taken at the 299th Meeting of the

Council held on 27th – 28th October, 2010, it has been decided that the term

“relative” for the purpose of Chapter-IV of Council General Guidelines, 2008

(Opinion on Financial Statements when there is substantial interest)

will have the same meaning as assigned to it in AS-18..

Accordingly, the Chapter IV of the Council General Guidelines, 2008 as appended

to the ICAI publication titled “The Chartered Accountants Act, 1949 “ is modified

and modified version shall read as under -

“Chapter IV
Opinion on financial statements when there is

substantial interest

4.0 A member of the Institute shall not express his opinion on financial statements

of any business or enterprise in which one or more persons who are his “relatives

” within the meaning of Accounting Standard (AS - 18) has / have, either by themselves

or in conjunction with such member, a substantial interest in the said business

or enterprise.

Explanation: For this purpose and for the purpose of compliance of Clause (4)

of Part I of the Second Schedule to the Chartered Accountants Act, 1949, the expression

“substantial interest” shall have the same meaning as is assigned thereto under

Appendix (9) to the Chartered Accountants Regulations, 1988. “

This decision shall be in force with effect from 28th June, 2011

Announcements - Amendment in Council General Guidelines , 2008 - (29-07-2011)

noreply@blogger.com (Dhaval Desai) — Sat, 06 Aug 2011 15:20:00 +0000

ANNOUNCEMENT

No. ICAI/ESB/2011/01

All the members of Institute of Chartered Accountants of India (ICAI) are hereby informed that in terms of the Council decision taken at its 306th Meeting held on 7th - 8th June, 2011, the Chapter-XII (Minimum Audit Fee in respect of Audit) of the Council General Guidelines, 2008 appended to the ICAI publication titled “ The Chartered Accountants Act, 1949” has been repealed with effect from 7th June, 2011

Announcement of KYC Norms -ICAI

noreply@blogger.com (Dhaval Desai) — Sat, 06 Aug 2011 15:17:00 +0000

No. ICAI/ESB/2011/03

Announcement of KYC Norms

All the members of Institute of Chartered Accountants of India (ICAI), who are in practice, are hereby informed that the Council has formulated the following Know Your Client Norms (KYC norms) at it’s 307 th Meeting held on 13thJuly,2011, which shall be recommendatory in nature, and apply only in case of attest function.

KNOW YOUR CLIENT (KYC) NORMS

The financial services industry globally is required to obtain information of their clients and comply Know Your Client Norms (KYC norms).

Keeping in mind the highest standards of Chartered Accountancy profession in India, the Council of ICAI thought it necessary to recommend such norms to be served by the members of the profession who are in practice.

In light of this background, the Council of ICAI approved the following KYC Norms. However, these norms are recommendatory in nature and every Chartered Accountant carrying out attest function is encouraged to follow them.

1. ENTITY INFORMATION

A. GENERAL INFORMATION

 Name of the Entity

 Type of Entity

 Business Description

B. CORPORATE STRUCTURE

 Name of ultimate parent company

 Name of Parent company Name of Affiliates

C. REGULATORY INFORMATION

 Company PAN No

 Company Identification No

 Directors’ Identification No

 Directors’ Names & Addresses

 Name(s) and Addresses of Companies, in which above

person is director.

D. ENGAGEMENT INFORMATION

 Type of Engagement

2. OTHER INFORMATION

 Entities financial Information

 Name of the ultimate parent Auditor

 Any known violation of any Law/Regulations

This decision shall be in force from 13 th July, 2011

ITAT case:HUF is a “relative” for gifts exemption u/s 56(2)(v), (vi) & (vii)

noreply@blogger.com (Dhaval Desai) — Thu, 30 Jun 2011 19:07:00 +0000

CASE OF: Vineetkumar Raghavjibhai Bhalodia vs. ITO (ITAT Rajkot)

The assessee received a gift of Rs.60 lakhs from his HUF. The AO & CIT(A) held that as HUF was not covered by the definition of “relative”, the gift was chargeable to tax u/s 56(2)(v). The alternate submission that gift was exempt u/s 10(2)was rejected on the basis that s. 10(2) applied only to amounts received “out of income of the estate” on partial or total partition of the HUF. On appeal by the assessee, HELD allowing the appeal:

(i) S. 56(2)(v) exempts gifts from a “relative”. Though the definition of the term “relative” does not specifically include a Hindu Undivided Family, a ‘HUF” constitutes all persons lineally descended from a common ancestor and includes their mothers, wives or widows and unmarried daughters. As all these persons fall in the definition of “relative”, an HUF is ‘a group of relatives’. As a gift from a “relative” is exempt, a gift from a ‘group of relatives’ is also exempt since the singular will include the plural;

(ii) The gift was also exempt u/s 10(2) because the two conditions required to be satisfied for relief viz (1) that the assessee is a member of the HUF and (2) that he receives the sum out of the income of such HUF (may be of an earlier Year) were satisfied.

Registration Of Lawyers For Service Tax Stayed By Madras High Court

noreply@blogger.com (Dhaval Desai) — Thu, 30 Jun 2011 17:53:00 +0000

The Revenue Bar Association, Madras, filed a Writ Petition in the Madras High Court challenging the validity of levy of service-tax on “legal consultancy services”. The Court has passed an order of interim injunction dated 24.06.2011 restraining the Ministry of Finance from compelling the members of the Petitioner from registering themselves with the service tax authorities andcollecting service-tax from them until further orders.

Click here to download Madras HC order dated 24.06.11 staying service-tax on lawyers:
http://dhavaldesaisays.files.wordpress.com/2011/06/service_tax_registration_stay.pdf

Details regarding stay orders passed by other High courts-
AP High Court-Pursuant to a Writ Petition challenging the imposition of service tax on lawyers and the prayer seeking interim relief by way of “restraining the Respondents from giving effect to directly or indirectly or acting upon the impugned provisions or collecting any service tax on the assistance provided as an officer of the Court by an advocate“, the Andhra Pradesh High Court vide order dated 18.5.2011 has ordered “Since it is represented that the other High Courts have already granted stay in similar circumstances, there shall be interim stay, until further orders”

Delhi High Court-The Delhi Bar Association has filed a Writ Petition in the Delhi High Court being WP No. 2792 of 2011 to challenge the levy of service-tax on “Legal Consultancy Services”. The High Court has today (29th April 2011) issued notice on the Writ Petition and stayed the application of the impugned provision till the next date of hearing being 23rd May 2011.

Gauahati High Court-The Bar Association of Gauhati has filed a Writ Petition in the Gauhati High Court to challenge the levy of service-tax on “Legal Consultancy Services”. The High Court has on 29th April 2011 said the matter requires in-depth scrutiny and directed that service-tax would not be recovered till the next date of hearing being 25th May 2011.

New services at NSDL website

noreply@blogger.com (Dhaval Desai) — Thu, 30 Jun 2011 17:34:00 +0000

Two new services started at NSDL website

PAN view - Taxpayer view for TDS/TCS credit (from F. Y. 2005-06 onwards) athttps://onlineservices.tin.nsdl.com/TIN/JSP/form16A/LinkToUnauthorizedPanView.jsp

To know whether your deductor/collector has filed quarterly TDS/TCS statement and provided your PAN, provide details as below.

PAN of the Deductee:
TAN of the Deductor:
Financial Year:

Verification of Forma16A generated by TIN website by Tax Payer athttps://onlineservices.tin.nsdl.com/TIN/JSP/form16A/LinkToUnauthorizedView.jsp

verification of Form 16A generated from TIN website issued by Deductor to the deductee.

Financial Year:
Quarter:
TAN of the Deductor:
PAN of the Deductee:
Certificate Number:
Total Amount Deducted:

Extension in date of Package scheme of incentives-2007 to 31/08/2011

noreply@blogger.com (Dhaval Desai) — Thu, 30 Jun 2011 17:25:00 +0000

Forwarded MSG attached.

Dear Friends

The PCI(Maharashtra) 2007 has extended upto 31/08/2011 the GR is attached

Click here to download the GR passed:http://dhavaldesaisays.files.wordpress.com/2011/06/20110630125414001.pdf

AIR Related scrutiny assessments should be limited to info in AIR

noreply@blogger.com (Dhaval Desai) — Tue, 28 Jun 2011 13:14:00 +0000

FORWARDED MSG ATTACHED OF MR. Hiten Gada

Dear All,

Please go through the letter from CBDT in this behalf addressed to all the
CCITs and DGITs.
The assessment for AY 2009-10 are now taken up for hearing. Please make use
of this letter to convey to officer that scope of inquiry should be
restricted to matter reported in AIR If he is extending the scope in its
questionnaire they send, you may reply against the same asking for a copy of
AIR info and please ask him to restrict his scope.
I believe before submitting details as per lengthy questionnaire, it would
be advisable to obtain the copy of AIR info and submitt only the relevant
details.

To read that letter click here:https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0Bz0INWeiJAEQNWExNmY3YzYtZDExMi00YmQxLTk4M2MtMzY5NWYyMzEwNjFk&hl=en_US

High Court stay for Service tax on bar attached hotels

noreply@blogger.com (Dhaval Desai) — Sat, 18 Jun 2011 18:27:00 +0000

FORWARDED EMAIL IS ATTACHED

It is understood from reliable sources that Kerala High Court has granted stay for two months on service tax on Bar attahced hotels.

Service tax on Air conditioned Restaurent (Bar attached hotel) service was made taxable from 1.5.2011

The order is awaited. will share the copy of the order at the earliest.

This is for your information

With Warm Regards,

CA. TONY.M.P
THRISSUR,KERALA
Mobile: 094470 80631.

Shareholding of promoter / promoter group to be in dematerialized mode

noreply@blogger.com (Dhaval Desai) — Sat, 18 Jun 2011 18:18:00 +0000

CIRCULAR

Cir/ISD/ 3/2011 June 17, 2011

To,
All Stock Exchanges

Dear Sir / Madam,

Sub: Shareholding of promoter / promoter group to be in dematerialized mode

1) SEBI had vide SEBI/Cir/ISD/1/2010 dated September 02, 2010 issued a circular on “trading rules and shareholding in dematerialized mode”. The said circular was issued in order to moderate sharp and destabilizing price movements in shares of companies, to encourage better price discovery and to increase transparency in securities market. The aforesaid circular inter-alia mandated securities of companies to be traded in normal segment, if and only if, the company has achieved atleast 50% non-promoter shareholding in dematerialized form and maintained the same on a continuous basis.

2) In order to further promote dematerialization of securities, encourage orderly development of the securities market and to improve transparency in the dealings of shares by promoters including pledge / usage as collateral, SEBI in consultation with Stock Exchanges, has decided that the securities of companies shall be traded in the normal segment of the exchange if and only if, the company has achieved 100% of promoter’s and promoter group’s shareholding in dematerialized form latest by the quarter ended September 2011 as reported to the stock exchanges.

3) In all cases, wherein the companies do not satisfy the above criteria, the trading in securities of such companies shall take place in trade for trade segment.

4) For the above purpose the exchanges shall take the latest shareholding pattern as required to be submitted by the listed companies with exchanges in pursuance to the Listing agreement as of the preceding quarter or of any subsequent date.

5) The Stock Exchanges are advised to:

a) put in place the adequate systems and issue the necessary guidelines for implementing the above decision.

b) make necessary amendments to the relevant bye-laws, rules and regulations as applicable for the implementation of the above decision immediately.

c) bring the provisions of this circular to the notice of the listed companies/issuers and member brokers of the Exchange and also to disseminate the same on the website.

d) communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report.

6) This circular is issued in exercise of powers conferred by sub-section (1) of Section 11 of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

7) This circular is available on SEBI website at http://www.sebi.gov.in/ under the head ‘legal framework’.

Yours faithfully,

S. Ramann
Officer on Special Duty
Integrated Surveillance Department
022-26441450

CPT Mock Test for June, 2011 Exam---Last date for registration 25th May.

noreply@blogger.com (Dhaval Desai) — Tue, 24 May 2011 14:44:00 +0000

CPT Mock Test for June, 2011 Exam

Day & Date :	Sunday 5th June, 2011
Time :	Morning session – 10.30 am to 12.30 pm Afternoon session – 02.00 pm to 04.00 pm
Fees :	Rs.200/- by cash / Cheque
Mode of Mock Test :	OMR answer Sheet
Last Day for Registration :	25th May, 2011 (upto 05:00pm )
Registration Centres :	1. WIRC Office, ICAI Bhawan, Cuffe Parade, Mumbai 2. WIRC -DADAR Library 3. WIRC – Andheri RVG Hostel 4. WIRC – Mulund Library
Date of Result :	11th June, 2011 (will be hosted at WIRC website)
Chief Co-ordinators :	CA Neel Majithia 9820327660 CA Mangesh Kinare 9869070539
For Registration and information contact 022-3980 2923/22 Cheques should be drawn on in favour of “WIRC OF ICAI” payable at Mumbai. Note: Forms will be available on WIRC Website and should be submitted by 25th May, 2011. Hard Copy of Registration forms will also be available at the above centres.

Download Registration Form:click here:https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0Bz0INWeiJAEQZDc1ZWM4OWMtNWI2NC00Zjc0LTlhZmUtNThiYTIxYmY4YWQw&hl=en_US

NEW DIRECTOR'S RELATIVE (OFFICE OR PLACE OF PROFIT) RULES, 2011

noreply@blogger.com (Dhaval Desai) — Sat, 21 May 2011 08:35:00 +0000

Director's Relative (Office or Place of Profit) Rules, 2011

NOTIFICATION NO. G.S.R. 357(E), DATED 2-5-2011

In exercise of the powers conferred by clause (b) of sub-section (1) of section 642, read with sub-section (1B) of section 314 of the Companies Act, 1956, the Central Government hereby makes the following Rules in supersession of the earlier Notification No. GS.R. 89(E), dated 5-2-2003, namely:—

1. (1) Short Title and Commencement: (1) These rules may be called Director's Relative (Office or Place of Profit) Rules, 2011.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. Applicability : These rules shall apply to all companies registered under the Companies Act, 1956 except as provided in these rules.

3. Approval of the Central Government in case of Appointment of Relatives, etc. of Directors : No appointment for an office, or place of profit in a company shall take effect unless approved by the Central Government on an application, in respect of:—

(a)  Partner of film or relative of a Director or Manager; or
(b)  Firm in which such Director, or Manager of relative of either is a partner; or
  (c) Private Company of which such Director or Manager or relative of either is a Director, or member, which carries a monthly remuneration exceeding, Rs. 2,50,000 p.m.
(d)  An individual who is a relative of a Director, or Manager and is appointed as an Advisor or Consultant and paid remuneration including commission on periodical basis.

4. Selection of Relatives of Directors and Directors to Hold a Place of Office/Profit:—

(a) The selection and appointment of a relative of a Director for holding office or place of profit in the company with a salary exceeding Rs. 2,50,000 per month shall be approved by adopting the same procedure applicable to non-relatives and approved by a Selection Committee.

Explanation : For the purpose of the sub-rule, in the case of listed public companies, the expression "Selection Committee" means a committee, consisting at least three members, the majority of which shall be independent Directors and an outside Expert:

Provided that in case of unlisted companies, independent Directors are not necessary but outside experts should be there in the Selection Committee:

Provided further that in the case of private companies, Selection Committee is not necessary.

5. Procedure for Examination of Application : The application under rule 3 shall be examined with respect to the following, in addition to all other requirements under the Companies Act, 1956:—

(a)  In the case of individual appointee, an undertaking from him that he/she will be in the exclusive employment of the company and will hold a place of profit in any other company.
(b)  The monetary value of all allowances and perquisites and of total remuneration package (monthly/annually proposed to be paid to the appointee and details of the services that will be rendered by him to the company.
  (c) Details of shareholding pattern particularly the shareholding of the directors along with his/her/their relatives, the public holding, institutional holding (each institution separately) and the quantum of dividend paid by the company during the last three preceding financial years.
(d)  Details of the educational qualification/experience, pay scale, allowances and other benefits of similarly placed executives.
  (e) In case of the appointment of a relative, an undertaking from the Director/Company Secretary of the company that the similarly placed employees are getting the comparable salary.
  (f)  List and particulars of the employees who are in receipt of remuneration of Rs. 2,50,000 or more per month.
(g)  The total number of relatives of all the Directors either appointed as Manager/Whole time Director, Manager or in any other position in the company, the total remuneration paid to all of them altogether as a percentage of profit as calculated for the purpose of section 198 of the Companies Act, 1956.

IAASB Seeks Global Views on Enhancing the Value of Auditor Reporting

noreply@blogger.com (Dhaval Desai) — Wed, 18 May 2011 12:58:00 +0000

FOR IMMEDIATE RELEASE

Contact:

Laura E. Wilker

Head of Communications

+1-212-471-8707

(Mobile) +1-914-646-3957

laurawilker@ifac.org

IAASB SEEKS GLOBAL VIEWS ON ENHANCING THE VALUE OF AUDITOR REPORTING

(New York/May 16, 2011) – The International Auditing and Assurance Standards Board (IAASB) today released its consultation paper, Enhancing the Value of Auditor Reporting: Exploring Options for Change, to obtain views on enhancing the quality, relevance and value of auditor reporting on an international basis.

The consultation paper seeks to determine whether there are common views among users of audited financial statements and other stakeholders about the usefulness of auditor reporting. It describes issues with current financial reporting, including a perceived “information gap,” identified by some stakeholders. It then sets out possible options for change and seeks input as to whether such options might be effective in enhancing auditor reporting and the communicative value of the auditor’s report.

“The auditor communicates to financial statement users primarily through the auditor's report,” noted Prof. Arnold Schilder, IAASB Chairman. “Over the past several years, the IAASB has developed International Standards on Auditing addressing auditor communication and reporting with the aim to address the expectations gap and, more recently, to promote international consistency in auditor reporting. The IAASB believes that now is the time for a more fundamental review of auditor reporting to ensure, in the public interest, that it can meet the information needs of financial statement users in a global business environment with increasingly complex financial reporting requirements.”

The IAASB is also seeking information about the potential implications of changes in auditor reporting, as well as about possible implementation challenges. The paper recognizes that not all of the options explored are able to be implemented by the IAASB on its own—some would require collaboration with national standard setters, regulators and/or legislators to develop or implement.

“This consultation is aimed at gathering views from around the world to inform the IAASB about whether there is consensus about the need to enhance auditor reporting and, if so, how an enhanced model might be achieved,” said James Gunn, IAASB Technical Director. “Investors and financial analysts have signalled to us they want additional, and more pertinent, information for their decision making. The IAASB wants to better understand these views as well the views of others, including users of audited financial statements of small- and medium-sized entities and public sector organizations, preparers, auditors and other key participants in the financial reporting process.”

How to Comment
The IAASB invites all stakeholders to respond to its consultation paper. To access the onsultation paper or submit a comment, visit the IAASB’s website atwww.iaasb.org/ExposureDrafts.php. Comments on the Consultation Paper are requested by September 16, 2011.

Puma creates world's first eco-P&L statement

noreply@blogger.com (Dhaval Desai) — Wed, 18 May 2011 12:56:00 +0000

Footwear company Puma is reported to be the world's first company to publish a comprehensive environmental profit-and-loss statement, detailing the economic cost of greenhouse emissions, water consumption and social impact related to its operations. John Elkington, who first proposed the concept of the triple bottom line, said: "This sort of accounting was pretty much what I had in mind when I came up with the triple bottom line 17 years ago. We've taken a while to get there, but the pace is accelerating."

Supreme Court stays Delhi High Court's service tax order on rent

noreply@blogger.com (Dhaval Desai) — Sat, 15 Jan 2011 05:56:00 +0000

January, 13th 2011

The Supreme Court has stayed an order of the Delhi High Court, which stopped the Centre from recovering service tax on renting of immovable property for commercial use, including shops and malls, from some firms.

A Supreme Court bench comprising Justices Mukundakam Sharma and A R Dave stayed the interim order passed by the Delhi High Court on May 18, 2010. The Centre has challenged the order.

"There shall be an interim stay of the operation of the impugned judgement till the next date," said the apex court, directing that the matter be listed for next hearing on January 20.

The High court, allowing the appeal of around 20 firms including Home Solutions Retail, had stayed the amendments made by the government in the Budget, 2010-11.

In the Finance Act, 2010, the government had amended taxing entry of "Renting of Immovable Property service", with retrospective effect, from June 1, 2007

UPLOADED NEW 5 DIGIT ACTIVITY CODES FOR VAT AUDIT PURPOSE.

noreply@blogger.com (Dhaval Desai) — Wed, 29 Dec 2010 18:29:00 +0000

MVAT AUDIT 2009-10-ACTIVITY CODES

AS WE FOUND THAT MANY OF OUR CA FRIENDS AND STP'S ARE NOT HAVING THE NEWLY REQUIRED ACTIVITY CODE 5 DIGIT FILES.
HERE BY WE ARE UPLOADING IT FOR OUR COMMUNITY.

CLICK HERE TO DOWNLOAD (2 LINKS)-- DOWNLOADING TAKES TIME (FILE SIZE 1.31 MB)

http://dhavaldesaisays.files.wordpress.com/2010/12/activitycode1-2-1.pdf

OR

https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0Bz0INWeiJAEQNDFiOTQyODItNmQ2MS00ZDgxLWJjNzctYWRlNzRkYTZjMDM3&hl=en

Case law-Ability to pay demand is no bar for grant of stay on recovery

noreply@blogger.com (Dhaval Desai) — Sun, 26 Dec 2010 07:46:00 +0000

KEC International Limited vs. ACIT (ITAT Mumbai)

The assessee filed a stay application before the Tribunal. The Department opposed by relying on the observations of the Supreme Court in CCE vs. Dunlop India 154 ITR 172 (SC) and contended that as paucity of funds had not been sufficiently demonstrated, for this reason alone stay should not be granted. HELD rejecting the Department’s contention and granting stay while following B. N. Nobis & Co vs. JCIT 71 TTJ 153 (Kol):

(i) While the Supreme Court has decried ‘the practice of granting interim orders merely because assessee is able to show a good prima facie case’, the observations have to be understood in the context of the case which was one of indirect taxation where the burden had already been passed on to the consumer. Also it was a case of a Writ Petition under Article 226 & not that of an appellate jurisdiction. The observations of the Supreme Court in the context of grant of stay in writ proceedings does not have binding force on, or even direct relevance to, the principles governing grant of stay during appellate proceedings though it does provide guidance on principles governing the decision to grant stay;

(ii) The Court has made it clear that though there are no hard and fast rules regarding grant of stay, prudence, discretion and circumspection are called for and stay should not be granted as a matter of course. Considerations about balance of convenience, question of irreparable injury and implications to public interest have to be borne in mind;

(iii) The Supreme Court’s observations in Dunlop cannot be interpreted to mean that the Tribunal is denuded of the powers to grant stay until case for financial stringency is successfully made out by the applicant. There is no conflict in holding this view as also adhering to the settled principles governing grant of stay which lay down thatfinancial constraints of the applicant are important, even if not sole of qualifying, consideration in entertaining a stay application, besides considerations like existence of strong prima facie case, balance of convenience and possibilities of Revenue’s rights of recovery being prejudiced by waiting till the outcome of appeals.

Cash Flow v/s Profit & loss A/c

noreply@blogger.com (Dhaval Desai) — Sat, 18 Dec 2010 18:30:00 +0000

In case of entities like companies which present its financial statements on accrual basis, Cash flow Statements fulfills vital information needs of users?

The Supreme Court in Reliance Energy Ltd Vs. Maharashtra State Road Development Corporation Ltd.

When P&L accounts and balance sheets are prepared on accrual basis, revenues and expenses are recognized on accrual basis

i.e. when events or transaction occurs. However, timing of cash flow is not reckoned in such system of accounting.

Similarly, in cases where accounts are based on accrual system of accounting, recognition of assets & liabilities is not dependent on the actual timing of cash spent on capital Expenditure & Cash inflow on Capital receipts.

Thus, financial statements prepared on accrual basis don not reflect the timing of Cash flow & amount of Cash flow.

The object of the cash flow statement is to assess the company ability to generate the cash flow in future and to assess reason for difference between “NET PROFIT” and “NET CASH FLOW” from operations.

In Fact Cash flow from operations is the regular sources of cash for any enterprise that determines whether or not an enterprise will continue to exist in the long run.

Accrual basis of accounting requires that revenues be recorded when earned and the expenses be recorded when incurred. Earned revenues more often include credit sales that have not been collected in cash & expense incurred that may not have been paid in cash during the accounting period.

Thus, Net Income will not indicate the net cash provided by operating activities or net loss will not indicate the net cash used in operating activities.

In order to calculate the net cash provided by (or used in) operating activities, it is necessary to replace revenues and expenses on accrual basis with actual receipts and actual payments in cash. This is done by eliminating non- cash revenues and non-cash expenses from the given earned revenues & incurred expenses in the profit & loss account.

Profit & Loss account is also debited with purely non-cash items which reduces and increase the profits respectively but do not affect the cash at all. Eg: Depreciation, P/L on sale of fixed assets, amortization of deferred revenue expenses and so on.

Since Cash provide by operations is to be calculated, certain Non-operation item like rent income, interest income, dividend income, refund of tax etc should be adjusted although these items may have recorded on cash basis. Such items are analysed separately in the cash flow statement as operating, financing & investing activities.

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Renting Judgement In Favour of Govt. by P&H High Court - Bad News

noreply@blogger.com (Dhaval Desai) — Tue, 30 Nov 2010 10:00:00 +0000

IN
THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH.

CWP No. 11597 of 2010 (O&M)

M/s Shubh Timb Steels Limited-----Petitioner
Versus
Union of India and another----Respondents

Coram:Mr. Justice Adarsh Kumar Goel and Mr. Justice Ajay Kumar Mittal

Date of Judgment: 22.11.2010

Excerpts : It cannot be held that renting of property did not involve any service as service could only be in
relation to property and not by renting of property. Renting of property for commercial purposes is certainly a service and has value for the service receiver. Even if it is held that transaction of transfer of right in immovable
property did not involve value addition, the provision cannot be held to be void in absence of encroachment on List II.(Para 22)

It is well settled that competent legislature can always clarify or validate a law retrospectively. It cannot be held to be harsh or arbitrary. Object of validating law is to rectify the defect in phraseology or lacuna and to effectuate and to carry out the object for which earlier law was enacted. We do not find any ground to set aside giving of retrospective effect to the amendment from 1.6.2007 on which date levy was initially provided."

FULL TEXT ATTACHED

Click here to download: http://dhavaldesaisays.files.wordpress.com/2010/11/renting.doc

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CA IPCC Group 1 papers with sugested answers.

noreply@blogger.com (Dhaval Desai) — Tue, 25 May 2010 08:39:00 +0000

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Dhaval Desai

Company Audit Important Sections,AS and SA's and revised text of Companies Act 227 (1A)

noreply@blogger.com (Dhaval Desai) — Wed, 05 May 2010 11:57:00 +0000

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