lecture meetings vice-president’s communiqué · 2017-10-17 · convenors: hiten shah manish...

BCAS Newsletter, March 2008 1

President : Rajesh Kothari, 28089956; Vice-President : Anil Sathe, 24367693; Hon. Secretaries : Pradip Thanawala, 22694248; Mayur Nayak, 26831199; Hon. Treasurer : Deepak Shah : 22420089

PROGRAMMES

AT

A

GLANCE

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, 19th March 2008*

Speaker : Sudha Murty

Subject : Do you need compassion in real life ?(Under the auspices of Dilip N. Dalal Oration Fund)

Day & Date : Wednesday, 26th March 2008*

Speaker : Kishor B. Karia, Chartered Accountant

Subject : Conversion of firm into corporate entity andrecent issues on disallowance u/s.40(a)

Day & Date : Wednesday, 9th April 2008*

Speaker : V. Sridharan, Advocate

Subject : Emerging issues on Service Tax includingCenvat credit

Day & Date : Wednesday, 23rd April 2008*

Speaker : N. P. Sarda, Chartered Accountant

Subject : Certain issues on Accounting Standards withspecial emphasis on AS-22 (Deferred Tax) andAS-10 (Fixed Assets) — Revised

Day & Date : Wednesday, 7th May 2008*

Speaker : Pinakin Desai, Chartered Accountant

Subject : Taxation of Royalties and Fees for TechnicalServices in International Trade

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

Lecture MeetingsVenue : 4th floor, IMC, Churchgate, Mumbai-400020.

Time : 6.15 p.m.(unless otherwise specified)

Full-day workshop on Practical Issues in Tax Deduction at Source ............ 29-3-2008 .................... M. C. Ghia Hall, 4th floor, Kala Ghoda, Mumbai. ........ 2

Half-day workshop on TDS from International Transactions .............................. 12-4-2008 .................... Audio Visual Centre, Jai Hind College, Mumbai-400020. 2

Workshop on ‘Being alert and achieving’ ........................................................... 19-4-2008 .................... BCAS Conference Room, Mumbai-400020. ..................... 5

BCAS Foundation — Book lending facility for CA Students .................................................................................................................................................................. 10

BCAS Study Circles for 2008-2009 ..................................................................... 2008-2009 .................... BCAS Conference Room .................................................... 6

Harnessing Talent and Providing Quality Service March 2008Vol. 10 No. 12

Anil Sathe

Dear Members,

The budget for the ensuing year 2008-09 has been presented. As expected,this being a pre-election budget, it has given a number of sops for the tax-payer. The loan write off for small/marginal farmers was the highlight of theFinance Minister’s speech on the floor of the House.

I will leave the debate on the impact of the write off to economists and thediscussion on whether this will benefit the ruling coalition, to the politicalpundits. Every year, as one analyses budget, one realises that on accountof the cash method of accounting that the government follows, the governmentbalance sheet cannot reflect what we accountants call the ‘true and fair’ viewof the state of affairs. Each tax-gatherer is hell bent on collecting the tax beforethe close of the financial year, oblivious of the fact that if collected as aconsequence of irrational assessments, it may have to be refunded in thenext year. Even in the method of accounting that the government follows thereis a need for consistency, which is also absent on many occasions. Toillustrate, the railway minister has made a provision for the impact of the sixthpay commission revision, but there seems to be no provision in the UnionBudget.

The accrual method of accounting, if adopted for preparing financialstatements, gives ‘true and fair’ view of the state of affairs. This method ismandatory for Corporates. Further, companies are required to follow notifiedAccounting Standards. The Institute of Chartered Accountants of India hasalready rolled out a road map of convergence to International FinancialReporting Standards by 2011. With India having emerged as a strong playeron the global economic scene, the time has come that government accountsshould be converted from cash to accrual. I am aware that urban local bodiesin various States are in the process of converting their accounts to doubleentry book keeping system, but the progress is slow. In this area, weaccountants can make a substantial contribution.

As I write this piece, newspapers are replete with articles on Women’s Day.I feel that significant contribution made by the accountants to economic growthneeds to be recognised by celebrating an Accountants’ Day.

BCAS Newsletter, March 20082

Chairman : Kishor KariaConvenors : Dhishat Mehta

Nitin ShingalaSushil Lakhani

Course co-ordinators : Anil Doshi, Tarun Singhal

Half-day workshop onTDS from International Transactions

International Taxation Committee is happy to announce the above half-day workshop. The importance of this subject continues to grow with Indiabecoming integrated with the global markets. In case of any default ofnon-compliance, the assessee faces disallowance u/s.40(a)(i), besidesother penal consequences under the Act. In order to update the membersin practice and in industry, on various issues and controversiessurrounding the subject, this interactive workshop has been planned.

The details of the workshop are as follows :

Day & Date : Saturday, 12th April 2008

Time : 2.00 p.m. to 6.30 p.m.

Venue : Audio Visual Centre, 4th floor, Jai Hind College,‘A’ Road, Churchgate, Mumbai-400020.

Fees : Rs.500 each for MembersRs.700 each for Non-Members (limited seats)(Fees also cover cost towards tea, snacks & studymaterial and Rs.20 as contribution to BCAS Foundation)

Subject Speaker/Trustee

Service and Agency Permanent Establishment Shefali Goradia(including attribution of profit)— Recent Developments & Issues

Brains Trust Session (Questions/Answers) Pinakin DesaiPranav SaytaT. P. Ostwal

Participants are requested to send their queries for the Brains TrustSession to the BCAS office/Convenors before 25th March 2008.

Enrolment is restricted to 100 participants on first-come-first-served basis.Enrolment form is printed on page 10. Enrolment fees are non-refundable.

BCAS Foundation has published a small booklet which provides basicinformation on the Right to Information Act, 2005. We request youto buy these booklets in multiples of 10 and distribute to your friends,relatives, clients, neighbours and so on.

A pack of 10 booklets is priced at Rs.50 (plus Postage Rs.15). Withthat pack, you will get 12 attractive ‘STOP CORRUPTION with RTI’stickers with our compliments for your use. Please send your paymentby Cheque at par/Demand Draft in favour of BCAS Foundation.

Order as many packs of 10 booklets as you like, but please do it fast.

RTI Booklet

Chairman : Pinakin DesaiCo-Chairman : Rajesh ShahConvenors : Ameet Patel

Chetan ShahMayur Desai

Full-day workshop onPractical Issues in Tax Deduction at SourceTaxation Committee is pleased to announce this full-day workshop onPractical Issues in Tax Deduction at Source. The subject hasgained a lot of importance due to the fact that for any default in non-compliance, the assessee faces disallowance u/s.40(a)(ia) of theIncome-tax Act, 1961. This workshop has been organised in order tounderstand various issues and try to solve the same.

The details of the workshop are as follows :

Day & Date : Saturday, 29th March 2008

Time : 9.30 a.m. to 5.00 p.m.

Venue : 4th floor, M. C. Ghia Hall, Kala Ghoda, Mumbai.

Fees : Rs.1,020 per person for membersand Rs.1,270 per person for non-members(Fees also cover cost towards course material, tea &lunch and Rs.20 as contribution to BCAS foundation)

Section Topics to be covered

S. 192 Salary

S. 194A Interest other than ‘Interest on securities’

S. 194C Payments to contractors and subcontractors

S. 194J Fees for professional or technical services

S. 194H Commission or brokerage

S. 194I Rent

Eminent speakers : Dilip Lakhani, Rajan Vora,Milind Mehta and Kirit Kamdar

In view of limited seats, members are requested to register early.Registration will be strictly on first-come-first-served basis. Participantsare requested to send their queries for any of the abovereferred topicsto the BCAS office/convenors before 15th March 2008.

Enrolment form is printed on page 10.

Kind attention : MembersYour Membership Subscription will end on 31st March 2008.

You are requested to renew your subscription now.

Please send your renewal fees toBombay Chartered Accountants’ Society’s Office.


Right to Information Clinic

Accounts & Audit Clinic

Panel of Advisors :

Sanjeev Pandit,Himanshu Kishnadwala and

Jayesh Gandhi

The next Charitable Trust Clinic will be held on Friday, 4thApril 2008, from 5 p.m. to 7 p.m. in the library room ofBCA 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.

Panel of Advisors :

Ratanshaw Damanwala,Shariq Contractor,Gautam Nayak,

Anil Sathe and Atul Shah

The BCAS Clinics

The next Accounts & Audit Clinic will be held on Saturday,5th April 2008, from 10.30 a.m. to 11.30 a.m. in the libraryroom 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 weekin advance and call the Society’s office (Mr. Rajaram onextension 13 or 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

BCAS 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 Saturday fromBCAS office — 11 a.m. to 1 p.m.

The next RTI Clinic days accordingly are 29th March 2008 and12th, 19th, 26th April 2008. Please call the Society’s office (Mrs.Archana) to obtain a prior appointment.

Chairman : Rajesh MuniConvenors : Hiten Shah

Manish SampatAliasgar Kherodawala

Coordinator : Pravin Shinde

Workshop on ‘Being alert and achieving’Do you wish to be well off and achieving ?

One way is to be well, psychologically well. For this, we will have to bealert. To be alert, we should have an idea about ourselves, of our outsideand our inside, especially the latter and also how to work around thatreality. Transactional Analysis psychology helps us to do this in a practicalway. This workshop will give us a headstart in the journey.

The workshop is aimed at understanding ourselves and understandingothers, relating with ourselves and relating with others, motivating oneselfand motivating others, and the power of knowing and exercising options.Learn how to play win-win strategy every time.

Dr. N. H. Atthreya a senior trainer, a resource faculty for a number ofworkshops by international and national leaders on this subject for morethan two decades, will lead the workshop. He is the author/co-author ofover thirty books including two on this subject.

The details of the workshop are as under :

Day and Date : Saturday, 19th April 2008

Time : 9.30 a.m. to 5.00 p.m.

Venue : BCAS Conference Room, 7 Jolly Bhavan No. 2,New Marine Lines, Mumbai-400020.

Fees : Rs.1220 (Fees also cover the cost of a book on thesubject co-authored by the faculty and other necessarymaterial, snacks, lunch, tea, and contribution of Rs.20towards BCAS Foundation).

Enrolment form is printed on page 10.

Formation of Sub-committees for BCAS Foundation

BCAS Foundation is formed with the philanthropic objective of contributing tothe society in whatever manner possible. In the past, the Foundation hasundertaken various projects including Tsunami Relief work. It becameinstrumental in building a school at Pondicherry along with other NGOs/Trusts.It runs RTI Clinic and carries out other RTI related activities on ongoing basis.It has assisted many individuals affected by Mumbai bomb-blast and continuesto assist one brilliant articled student who became disabled by the bomb-blast.

At the Foundation, we believe that it is our duty to repay our debt to societyby creating service centres of assistance. We need to expand our activities andmake an impact in other areas of social, moral and economic development.For this objective in mind, we need more participation of our members.

For this noble cause, the Foundation is contemplating to form sub-committeesto undertake various social projects. We invite members who wish to contributetheir time and mind to rebuild this nation. Members who are interested maywrite to [email protected] or contact BCAS Office.

In this world it is not what we take, but what we give, makes us rich.


Enrolment Form

Name : .......................................................................................................

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

...................................................................................................................

BCAS Memb. No. : .................. Tel. : 1 ................... 2 ........................

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. The details of the Study Circles are given alongside :

Forthcoming Study Circle Meetings*Venue : BCAS Conference Hall, BCAS

Date & Day Time Subject Speaker Study Circle/Group Convenors

17th Mar. 08 6.15 p.m. IPR Laws & their Relevance Pramod Kumar Parida, Economic & Rajesh R. ShahMonday to Accounting Profession Advocate Allied Laws Ashok Sharma

Study Circle

18th Mar. 08 6.15 p.m. Internal Audit, Baiju Gujarathi, C.A. IT Study Circle Kamlesh Doshi, C.A.Tuesday Information Security Perspective Internal Audit Mukesh Trivedi, C.A.

Study Circle Zainab Lakkadghat, C.A.

* These meetings are restricted to members of that particular Study Circle only.

Imprest scheme started last year has received encouraging responsewith many members having taken the benefit of it. This facilitatesmembers to receive BCAS publications at their doorstep. All members,journal subscribers, students and non-members can take benefit of thisscheme.

The brief modalities of the scheme are as follows :

➠ Rs.2500 to be kept with the Society as an Imprest cash in youraccount. Non-member will have to pay additional Rs.250 for accounthandling charges.

➠ The base level would be Rs.250 which needs to be reple-nished again to Rs.2500 by the person opting for the scheme.

➠ Any publication, conference papers or CDs costing less thanRs.250 would be sent to you as soon as they are published/released. This would also include one set of English Editionof the Budget Publication. (a set of 5 books)

For further details of the scheme :Visit the Society’s website at www.bcasonline.orgor contact Society’s office.

Imprest Scheme for Publications

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Contributed byGaurang Gandhi

The Reserve Bank of India has issued 4 Circulars and 1 Notification.

Notification No. FEMA 171/2007-RB, dated December 10, 2007

Foreign Exchange Management (Foreign Currency Account bya Person Resident in India) (Second Amendment) Regulations,2007

This Notification has substituted the proviso to Clause 1 of Regulation9. It provides that EEFC account referred to in Regulation 4 shall beopened, held or maintained in the form of an account in terms of suchdirections as may be issued by RBI from time to time.

A.P. (DIR Series) Circular No. 27, dated February 5, 2008

Exim Bank’s Line of Credit (LOC) of USD 35.20 million to theGovernment of the Kingdom of Cambodia

Exim Bank has, subject to certain terms and conditions, made availablea Line of Credit of US $ 35.20 million to the Government of the Kingdomof Cambodia for financing :

(i) Stung Tasal Development Project (US $ 15 million),

(ii) Purchase of water pumps (US $ 5.20 million), and

(iii) Construction of the electric transmission line between Kratieand the Stung Treng Province (US $ 15 million)

[projects at (i) and (iii) are to be executed by Water and PowerConsultancy Services (I) Limited].

The goods and services including consultancy services to be exportedfrom India under this agreement are those which are eligible for exportunder the Foreign Trade Policy of the Government of India and whosepurchase may be agreed to be financed by the Exim Bank. Out of thetotal credit under this Agreement, goods and services of the value of atleast 85% of the contract price shall be supplied by sellers from Indiaand the balance (other than consultancy services) may be procured bythe seller from outside India.

This credit agreement is effective from January 17, 2008. The terminaldate for opening Letters of Credit and disbursement is 48 months fromscheduled completion dates of contracts in case of project exports andDecember 7, 2013, in case of other supply contracts.


Memorandum of Instructions for Opening and Maintenance ofRupee/Foreign Currency Vostro Accounts of Non-residentExchange Houses

The guidelines for opening of Vostro Accounts have been rationalised.Annexed to this Circular is the updated Memorandum of Instructionscontaining the revised guidelines in respect of the same. These guidelinesprovide that prior approval of RBI is required to be obtained by theAuthorised Dealer Category-I banks for opening and maintaining rupee/foreign currency vostro accounts of non-resident Exchange Houses.


Exim Bank’s Line of Credit (LOC) of USD 122 million to theGovernment of the Federal Democratic Republic of Ethiopia

Exim Bank has, subject to certain terms and conditions, made availablea Line of Credit of US $ 122 million to the Government of the FederalDemocratic Republic of Ethiopia for financing export of eligible goods andservices from India for projects relating to development of sugar industryin Ethiopia. Out of the total credit under this Agreement, goods andservices of the value of at least 85% of the contract price shall be suppliedby sellers from India and the balance (other than consultancy services)may be procured by the seller from outside India.

This credit agreement is effective from January 22, 2008. The terminaldate for opening Letters of Credit and disbursement is 48 months fromscheduled completion dates of contracts in case of project exports and72 months from execution date of this agreement in case of other supplycontracts.


Compilation of Bank-wide consolidated R-Return

This circular provides that all Authorised Dealer Category-I banks will berequired to submit bank-wide R-Return from the first fortnight of January2009.

If you have a Will, we have the Ways !

If you have an academic bend of mind and if you are eager to learnnew things in life while making a decent living at the same time,here is an opportunity of a life time !

Bombay Chartered Accountants’ Society (BCAS), a premier bodyof the Chartered Accountants is looking for a person either on parttime or full time basis to manage wealth of information andknowledge generated by scores of programmes and courses thatBCAS offers to its members/society at large.

The job profile inter-alia would include co-ordination of E-learningProgrammes, Website updations, Journal and Publications,managing matters relating to our library and preparation of coursematerial for various seminars, conferences and study circles.

The candidate should be a post graduate in commerce stream orpreferably a chartered accountant. Commerce graduate withrelevant experience in the field may also apply.

Please apply in confidence with expected salary to Col. Raje,General Manager, by e-mailing him at [email protected] or sendyour CV to him at the Society’s office.


Tuesday, 6th May 2008


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.

Name : ...................................................................................................................................................................................................................................................................

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

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

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

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 :

‘Being alert and achieving’ 19-4-2008 Rs.1220 ..............................................

Full-day workshop on Practical 29-3-2008 Rs.1,020 for member ...........................Issues in Tax Deduction at Source Rs.1,270 for non-member ....................

Rs.700 for non-member .......................

Enrolment Form for the Book Lending Facility for C.A. Students

Name : ..................................................................................................................................................................................................................................

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

..............................................................................................................................................................................................................................................

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.

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.

� � � � � � � �CUT HERE CUT HERE CUT HERE CUT HERE CUT HERE CUT HERE

Half-day workshop on TDS from 12-4-2008 Rs.500 for member ..............................International Transactions

BCAS FoundationBook lending facility for CA Students

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lecture meetings vice-president’s communiqué · 2017-10-17 · convenors: hiten shah manish...

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