CAA journal july 2019

India-China DTAA amended to incorporate BEPS related provisions

The amendments vide Protocol are largely in be computed to be within any 12-month
line with the India’s positions on MLI and period beginning or ending in the relevant
highlights of the key changes are summarized financial year. Further, the services for
as under: same or connected projects need to be
1.3Key features of the Protocol aggregated now.
Preamble - Specific activity exemption - The
exemption for “delivery” activity has now
The Protocol includes the language in the
been deleted and hence, such activity will
preamble as mandated by MLI as minimum
no longer be eligible for exemption at the
standard. Accordingly, the Protocol now has a
threshold unless same constitutes a
preamble which states that parties intend to
preparatory or ancillary (PoA) activity
eliminate double taxation with respect to taxes
on income without creating opportunities for Business profits
non-taxation or reduced taxation through tax Currently as per the 1995 DTAA, any
evasion or avoidance (including treaty- enterprise (say China) carrying on business in
shopping arrangements aimed at obtaining the other state by way of a PE (say India), the
reliefs provided in the treaty for the indirect income which shall be taxable in India will be
benefit of residents of third States). the extent of profits of such Chinese enterprise
The Protocol also includes the additional which can be regarded as directly or indirectly
preamble language which expresses the desire attributable to the PE in India. Further, the
of India and China to further develop their provision clarifies that it will not apply if the
economic relationship and to enhance their enterprise proves that activities could not be
cooperation in tax matters. undertaken by the PE or have no relation with
the PE.
PPT
The Protocol has replaced the above provision
In line with the minimum standard under MLI,
and is amended now for the same to be taxed
the Protocol includes PPT rule, wherein a
in India only to extent of profits attributable to
benefit under the treaty shall not be granted in
the PE.
respect of an item of income if it is reasonable
to conclude that obtaining treaty benefit was 1.4 Concluding Remarks
one of the principal purposes of any The Protocol is a welcome move and indicates
arrangement or transaction that resulted directly the desire of India and China to further develop
or indirectly in that benefit, unless it is their economic relationship and demonstrates
established that granting that benefit in these their commitment towards combating BEPS.
circumstances would be in accordance with the This is a result of bilateral negotiations between
object and purpose of the relevant provisions India and China and largely covers significant
of the treaty. provisions of MLI. Additionally, the Protocol
Permanent establishment (PE) broadens the scope of provisions on exchange
of information which will enable both the
- Construction, installation, assembly,
countries in fulfilling their respective
supervisory PE - A provision has been
international obligations on enhancing tax
added wherein for computation of the 183
transparency and combating tax evasion.
days threshold, one will need to also
aggregate the time spent on connected The Protocol is effective from 1 April 2020 and
activities on the same project by closely which also matches with MLI related changes
related entities, if exceeds 30 days each. for India’s treaties with major trade partners such
as UK, Japan, Singapore, Australia and France.
- Service PE - Clarification provided
wherein the time threshold of 183 days will i i i

Ahmedabad Chartered Accountants Journal July, 2019 233

FEMA


Updates

CA. Savan Godiawala
[email protected]

11 India’s International Investment declined by US$ 11.6 billion, direct
Position (IIP), March 2019
investment and other investment overseas
(trade credit, loans and currency and
The Reserve Bank released data relating to India’s
deposits) moved up by US$ 12.6 billion and
International Investment Position as at end-March
US$ 6.3 billion, respectively.
2019.
· International financial liabilities increased
Key Features of India’s IIP in March 2019
by US$ 26.2 billion with direct investment
I. Quarterly Variations: and other investment increasing by US$
20.2 billion and US$ 18.1 billion,
· Net claims of non-residents on India respectively, while portfolio investment
increased to US$ 436.4 billion reflecting declined by US$ 12.2 billion.
an increase of US$ 45.2 billion in foreign-
owned assets in India vis-à-vis an increase · Overall, net claims of non-residents on
of US$ 35.7 billion in Indian residents’ India increased by US$ 17.9 billion.
financial assets abroad. III. Ratio of International Financial Assets and
Liabilities to GDP
· The increase in foreign-owned assets in
India was primarily due to portfolio · The ratio of total overseas financial assets
investment, direct investment and other of Indian residents declined to 23.4 per cent
investment, particularly loans. of GDP in March 2019, from 24.1 per cent
a year ago.
· With the dollar-rupee swap conducted by
the Reserve Bank in March, reserve assets · The ratio of total claims of non-residents to
increased sizably during the quarter. GDP declined to 39.2 per cent in March
2019 from 40.0 per cent a year ago.
· Debt and non-debt liabilities owed to non-
· The ratio of net IIP of India to GDP
residents had almost equal shares in total
remained unchanged from a year ago at (-
liabilities.
)15.9 per cent in March 2019.
· The ratio of India’s international financial
Source:India’s International Investment
assets to international financial liabilities
Position (IIP) dated June 28, 2019
stood at 59.5 per cent at end-March 2019
(58.7 per cent in December 2018). For full text refer: https://www.rbi.org.in/
scripts/FS_PressRelease.aspx?prid=47440
II. Annual Variations
&fn=5
· International financial assets of Indian Developments in India’s Balance of Payments
residents increased by US$ 8.4 billion (BoP) during the Fourth Quarter (January-
during 2018-19; while reserve assets March) of 2018-19

234 Ahmedabad Chartered Accountants Journal July, 2019

FEMA Updates

The Reserve Bank released data relating to the · In Q4 of 2018-19, there was an accretion of
developments in India’s Balance of Payment during US$ 14.2 billion to the foreign exchange
the fourth quarter of FY 2019. reserves (on BoP basis) as compared with US$
13.2 billion in Q4 of 2017-18.
Key Features of India’s Balance of Payments in
Q4 of 2018-19 Balance of Payments during 2018-19

· India’s current account deficit (CAD) at US$ · The CAD increased to 2.1 per cent of GDP in
4.6 billion (0.7 per cent of GDP) in Q4 of 2018- 2018-19 from 1.8 per cent in 2017-18 on the
19 narrowed from US$ 13.0 billion (1.8 per back of widening of the trade deficit.
cent of GDP) in Q4 of 2017-18 and US$ 17.7
· India’s trade deficit increased to US$ 180.3
billion (2.7 per cent of GDP) in the preceding
billion in 2018-19 from US$ 160.0 billion in
quarter.
2017-18.
· The contraction of the CAD on a year-on-year
· Net invisible receipts were higher in 2018-19
(y-o-y) basis was primarily on account of a
mainly due to increase in net services earnings
lower trade deficit at US$ 35.2 billion as
and private transfer receipts.
compared with US$ 41.6 billion a year ago.
· Net FDI inflows at US$ 30.7 billion in 2018-
· Net services receipts increased by 5.8 per cent
19 were marginally higher than US$ 30.3
on a y-o-y basis mainly on the back of a rise in
billion in 2017-18.
net earnings from telecommunications,
computer and information services. · Portfolio investment recorded a net outflow of
US$ 2.4 billion in 2018-19 as against an inflow
· Private transfer receipts, mainly representing
of US$ 22.1 billion a year ago.
remittances by Indians employed overseas, at
US$ 17.9 billion declined by 0.9 per cent from · In 2018-19, there was a depletion of US$ 3.3
their level a year ago. billion of the foreign exchange reserves (on a
BoP basis).
· In the financial account, net foreign direct
investment at US$ 6.4 billion in Q4 of 2018- Source: Developments in India’s Balance of
19 remained at the same level as in Q4 of 2017- Payments during the Fourth Quarter (January-
18. March) of 2018-19 dated June 28, 2019

· Foreign portfolio investment recorded net For full text refer: https://www.rbi.org.in/scripts/
inflow of US$ 9.4 billion in Q4 of 2018-19 – FS_PressRelease.aspx?prid=47438&fn=5
as compared with US$ 2.3 billion in Q4 a year
ago – on account of net purchases in both debt
and equity market.

· Net inflow on account of external commercial
borrowings to India increased to US$ 7.2 billion
in Q4 of 2018-19 from US$ 1.0 billion a year
ago.
i i i









Ahmedabad Chartered Accountants Journal July, 2019 235

GST and VAT

Judgments


and Updates CA. Bihari B. Shah CA. Vishrut R. Shah

[email protected] [email protected]

Important Judgments: to take measures in order to protect the interest of
the revenue. At the same time, the petitioner’s
Judgment delivered by Hon. Gujarat High request that the statement recorded during the
Court in case of Gujarat JHM Hotels Ltd. v. search might be declared illegal, obviously could
State of Gujarat: not be granted. It depended on range of factors
which could be provided only during the course of
Issue:
assessment. The court would not grant petitioner’s
During the search proceedings if the department last request for refund of the amount already
has taken the cheque against the proposed liability recovered. The petitioner having issued the cheque
and the assessment proceedings were not and having transferred the money through RTGS
completed, the department can’t ask further cheques in lieu thereof the question of coercive recovery
and the cheque collected during the search might assume some significance. Without going
operation, should be refunded to the assessee. into minute details, the petitioner’s limited request
for not effecting further recoveries needed to be
Facts:
accepted. The petitioner’s remaining prayers were
During the search proceedings carried out by the not granted.
value added tax authorities certain tax evasion by The petitioners have made three prayers viz. (i)
the Petitioner, engaged in hospitality industry, was direct respondent No.2 to return the tax collected
detected. Statement of the representative of the during search proceedings, (ii) refund the amount
Petitioner was recorded and post dated cheques already recovered from the petitioner, (iii) to quash
were collected. On a writ petition with prayers to the statement dated August 4, 2018 of the officer
direct respondent No. 2 to return the tax collected of the petitioner – company recorded by respondent
during search proceedings to refund the amount No.2.
already recovered from the petitioner and to quash
The petitioner is a hospitality industry owning hotels
the statement of the officer of the petitioner recorded
at Surat. The Vat authorities carried out search
by respondent No. 2.
operations during which time, according to the
Held that in the case of the petitioner, the assessment authorities, certain tax evasion was detected.
proceedings were initiated but not completed. Till Statement of the representative of the petitioner
quantification of tax liability, it would not be open company was recorded. Post dated cheques were
for the department to recover the tax. This was not collected. We are informed that against one such
to suggest that the department could not take other cheque, in lieu thereof RTGS payment of Rs. 40
means to protect the interest of the revenue if found Lakhs has already made by the petitioner. Cheques
necessary. There were provisions of the Vat Act within the exceed of the department total to Rs.
giving ample power to the competent authority to 2,52,49,812/- which includes the sum of Rs. 40 lacs
take appropriate steps in appropriate circumstances already recovered, as mentioned above.

236 Ahmedabad Chartered Accountants Journal July, 2019

GST and VAT - Judgements and Updates

Having heard learned counsel for the parties and for not affecting further recoveries needs to be
having perused the materials pm record it emerges accepted.
that pursuant to the search, statements have been
Held:
recorded and documents collected. Assessment
proceedings are initiated but not yet completed. Till Under the circumstances, the respondents are
utilization of tax liability, it would not be open for prevented from depositing remaining cheques of
the department to recover the tax. This is not to the petitioner collected during the search operations
suggest that the Department cannot take other for realization and may be returned to the petitioner.
means to protect the interest of the Revenue, if so, The petitioner’s remaining prayers are not granted.
otherwise found necessary, There are provisions to We have not expressed Any opinion on all rival
the Vat Act giving ample power to the competent contentions particularly with respect to the issues
authority to take appropriate steps in appropriate which may crop up during the pending assessment.
circumstances to take measures in order to protect
In the result, the petition is disposed of.
the interest of Revenue. At the same time, the
petitioner’s request, that the statement recorded Few Major Decisions taken in 35 GST Council
TH
during the search may be declared illegal, obviously Meeting:
cannot be granted. It depends on range of factors
[1] Extension of due date for filing First GST
which can be provided only during the course of
Annual Return & Reconciliation Statement:
assessment. The petitioner’s last request for refund
of the amount already recovered, we are not inclined On account of difficulties faced by taxpayers
to grant. The petitioner having issued the cheque in furnishing the annual returns in Form GSTR-
and in lieu thereof deposit such cheque having the 9, GSTR-9A & Reconciliation Statement in
transferred the money through RTGS the question GSTR-9C, the due date for furnishing these
of coercive recovery may assume some returns/reconciliation statements to be extended
significance. Without going into minute details, we till August 31, 2019.
are of the opinion that petitioners limited request




[2] About GST Return for dealers Turnover upto 5 Crores:

Form of Return July to Sept. 2019 Oct. to Dec. 2019
GST ANX -1 Not necessary to file Mandatory to be filed on a quarterly basis
(Optional) due in Jan. 2020.

GST ANX -2 Not necessary to file -

GSTR-1 and Mandatory Not required to be filed.
GSTR-3B

PMT -08 Not required to be filed Mandatory to be filed.

GST-RET-01 Not required to be filed For the quarter due in Jan. 2020.






Ahmedabad Chartered Accountants Journal July, 2019 237

GST and VAT - Judgements and Updates

[3] GST Returns to be filed for4 the dealers having Turnover of more than 5 Crores:

Form of Return July to Sept. 2019 Oct. to Dec. 2019

GST ANX -1 Not necessary to be filed Mandatory to be filed on a monthly basis.
(Optional)
GST ANX -2 Not necessary to be filed -

GSTR-1 Mandatory Filing Mandatory to be filed on monthly basis (it
shall not be required from Dec. 2019)

GSTR -3B Mandatory Filing Mandatory to be filed on monthly basis (it
shall not be required from Dec. 2019)

PMT – 08 Not required to be filed Mandatory to be filed

GST – RET – 01 Mandatory to be filed in Jan. 2020.




It may be noted that invoices etc. can be [a] Composition Dealers, who have not
uploaded in Form GST ANX-1 on a continuous furnished the return for 2 consecutive tax
basis both by large and small taxpayers from periods; and
Oct. 2019 onwards.
[b] Other tax payers, who have not furnished
[4] Extension to opt for New 6% Presumptive the returns for a consecutive period of 2
Taxation Scheme for Service Providers: months.

A new scheme was introduced [vide [6] Extension to file form GST ITC-04 in
Notification No. 2/2019 – Central Tax (Rate)] respect of goods sent to or received back
for the eligible service providers to opt for from job worker.
presumptive taxation scheme in which they are
To provide sufficient time to the trade and
required to pay GST at the rate of 6%. This
industry to furnish the declaration in form GST
scheme has prescribed that the existing service
ITR-04, relating to the inputs and capital goods
provides have to opt for this scheme by filing
sent to or received from a job worker, the due
Form GST CMP-02 by July 31,2019.
date for furnishing the said form has been
[5] No E-Way Bill from August 21, 2019: extended till August 31, 2019.
Following persons were barred from
generating an e-way bill online, as a supplier
or a recipient.

i i i













238 Ahmedabad Chartered Accountants Journal July, 2019

Corporate


Law Update

CA. Naveen Mandovara
[email protected]

MCA Updates: and on being satisfied that the
company meets the requirements
1. Nidhi (Amendment) Rules, 2019:
under these rules, shall notify the
The MCA has made the following amendments company as a Nidhi in the Official
in the Nidhi Rules, 2014, which shall be Gazette:
effective from 15.08.2019:
Provided that a Nidhi incorporated
Rule No. Effect of amendment under the Act on or after the

Rule 2(d) Following clause has been commencement of the Nidhi
inserted: (Amendment) Rules, 2019 shall
file Form NDH-4 within sixty days
”(d) every company declared as
from the date of expiry of:-
Nidhi or Mutual Benefit
Society under sub-section (1) (a) one year from the date of its
of section 406 of the Act”. incorporation; or

Rule 3(da) Following clause has been (b) the period up to which
inserted: extension of time has been
granted by the Regional
’(da)“Nidhi” means a company
Director under sub-rule (3) of
which has been incorporated
rule 5:
as a Nidhi with the object of
cultivating the habit of thrift Provided further that nothing in the
and savings amongst its first proviso shall prevent a Nidhi
members, receiving deposits from filing Form NDH-4 before
from, and lending to, its the period referred therein:
members only, for their Provided also that that in case a
mutual benefit, and which company does not comply with the
complies with the rules made requirements of this rule, it shall
by the Central Government not be allowed to file Form No.
for regulation of such class of SH-7 (Notice to Registrar of any
companies.’. alteration of share capital) and
Rule 3A Following clause has been Form PAS-3 (Return of
inserted: Allotment).”.

”3A. Declaration of Nidhis.- The Rule 4(1) The words, “to be incorporated
Central Government, on receipt of under the Act” shall be omitted.
application (in Form NDH-4 along Rule 4(5) The words “Company
with fee thereon) of a public incorporated as a” shall be
company for declaring it as Nidhi omitted.



Ahmedabad Chartered Accountants Journal July, 2019 239

Corporate Law Update

Rule 5(1) For the words “from the Rule 23A The following rules shall be
commencement of these rules”, and 23B inserted, namely:-
the words “from the date of its
23A. Compliance with rule 3A
incorporation” shall be
by certain Nidhis:-
substituted.
Every company referred to in
Rule 5(3) Before the Explanation, the
clause (b) of rule 2 and every Nidhi
following proviso shall be inserted,
incorporated under the Act, before
namely:-”Provided that the
the commencement of Nidhi
Regional Director may extend the
(Amendment) Rules, 2019, shall
period up to one year from the
also get itself declared as such in
date of receipt of application.”
accordance with rule 3A within a
Rule 5(4) After the words, brackets and period of one year from the date
figure “contained in sub-rule of its incorporation or within a
(1)”, the words, brackets and period of six months from the date
figures “and gets itself declared of commencement of Nidhi
under sub-section (1) of section (Amendment) Rules, 2019,
406” shall be inserted. whichever is later:
Rule 7(1) After the words “shall issue” the Provided that in case a company
words “fully paid up” shall be does not comply with the
inserted. requirements of this rule, it shall
not be allowed to file Form No.
Rule 12 The following clause shall be
SH-7 (Notice to Registrar of any
(1)(ba) inserted namely:-
alteration of share capital) and
”(ba) The date of declaration or Form PAS- 3 (Return of
notification as Nidhi”. Allotment).
Rule 12 For the words “Registrar of 23B. Companies declared as
(2)(a) Companies”, the words “Bench Nidhis under previous company
of the National Company Law law to file Form NDH-4:-
Tribunal” shall be substituted.
Every company referred in clause
Rule 23(2) (i) For the words “concerned (a) of rule 2 shall file Form NDH-
Regional Director”, the 4 alongwith fees as per the
words, “Central Companies (Registration Offices
Government’’ shall be and Fees) Rules, 2014 for updating
substituted; its status:

(ii) For the words “such Regional Provided that no fees shall be
Director”, the words, charged under this rule for filing
“Central Government’’ shall Form NDH-4, in case it is filed
be substituted; within six month of the
(iii) In the proviso, for the words commencement of Nidhi
“Regional Director”, the (Amendment) Rules, 2019:
words, “Central Provided further that, in case a
Government” shall be company does not comply with the
substituted. requirements of this rule, it shall




240 Ahmedabad Chartered Accountants Journal July, 2019

Corporate Law Update

not be allowed to file Form No. (iii)after the proviso, the following
SH-7 (Notice to Registrar of any provisos shall be inserted,
alteration of share capital) and namely:
Form PAS-3 (Return of
”Provided further that where an
Allotment).
individual who has already
Form After the Form NDH-3, the submitted e-form DlR-3 KYC in
NDH-4 following form shall be inserted, relation to any previous financial
namely:- year, submits web-form DIR-3
KYC-WEB through the web
Form for filing application for
service in relation to any
declaration as Nidhi Company
subsequent financial year it shall
and for updation of status by
be deemed to be compliance of the
Nidhis.
provisions of this rule for the said
[F. No. 1/24/2013-CL-V (Part) dated financial year:
01.07.2019]
Provided also that in case an
2. Companies (Appointment and individual desires to update his
Qualification of Directors) Third personal mobile number or the e-
Amendment Rules, 2019: mail address, as the case may be,

The MCA has made the following he shall update the same by
amendments in the Companies (Appointment submitting e-form DIR-3 KYC
and Qualification of Directors) Rules, 2014, only:
namely: - Provided also that fee for filing e-
Rule No. Effect of amendment form DIR-3 KYC or web-form
DIR-3 KYC-WEB through the
Rule After the letters, words and figure
web service, as the case may be,
11(2) & “e-form DIR-3-KYC” the words,
shall be payable as provided in
(3) letters and figures” or the web
Companies (Registration Offices
service DIR-3-KYC-WEB” as
and Fees) Rules, 2014.”.
the case may be” shall be inserted.
DIR-3 In the said rules, in the Annexure,
Rule 12A (i) For the words “who has been
KYC- after e-form DIR-3 KYC, the
allotted”, the words “who
WEB following web-form shall be
holds” shall be substituted;
inserted, namely:
(ii) For the words, letters and
Form DIR-3 KYC-WEB (KYC of
figures “submit e-form DIR-
Directors)
3-KYC to the Central
Government on or before [F. No. 01/22/2013-CL-V dated 25.07.2019]
th
30 June of immediate next 3. Companies (Registration Offices and Fees)
financial year”, the words, Fourth Amendment Rules, 2019:
letters and figures “submit e-
The MCA has made the following
form DIR-3-KYC for the
amendments in the Companies (Registration
said financial year to the
Offices and Fees) Rules, 2014:
Central Government on or
th
before 30 September of In the Companies (Registration Offices and
immediate next financial Fees) Rules, 2014, in the Annexure, for item
year” shall be substituted; contd. on page no. 251


Ahmedabad Chartered Accountants Journal July, 2019 241

Allied Laws


Corner

Adv. Ankit Talsania
[email protected]

The Prohibition of Benami Property said notices were responded in the same terms.
Transactions Act, 1988 However, the Initiating Officer of the
respondent department made order under
Recently High Court of Rajasthan in the case of
Section 24 (4) of the amended Benami
Niharika Jain.vs. Union of India. reported in
Amendment Act of 2016, continuing the
(2019) 107taxmann.com 272(Rajasthan) held
provisional attachment of the properties
that the Benami Transactions (Prohibition)
involvedherein. Thereafter, further show cause
Amendment Act, 2016 amending Prohibition of
notices were issued by the Adjudicating
Benami Property Transactions Act, 1988 can’t have
Authority under the provisions of the Benami
retrospective effect
Amendment Act of 2016, as to why the order
A. Facts of Case : of provisional attachment of the benami
properties should not be confirmed and the
1. The Income Tax Department conducted search
matters are still pending before the said
and seizure under Section 132 of the Income
authority. The petitioners, aggrieved of
Tax Act, 1961, on various premises belonging
initiation of the proceedings and orders
to the petitioners and in course of search and
aforesaid, for being without jurisdiction, have
seizure, several incriminating documents were
instituted the instant writ petitions before this
found, indicating several benami transactions
court.
in purchase of lands involved herein.
Accordingly, show cause notices were issued B. Findings of the Rajasthan High Court.
under section 24 (1) of the amended Benami
1. Applying the principles deducible from the
Act of 1988, to show cause why action should
opinions of the Apex Court of the land as
not be taken against them under Section 24 (4)
referred to and relied upon by the learned
of the amended Benami Act of 1988, as the
counsel for the parties; it is evident that High
consideration was actually paid by the
Court could interfere in exercise of writ
petitioners but the land was purchased in the
jurisdiction, if, the conditions precedent to the
name and by another person, thus, making it a
exercise of jurisdiction under the statutory
clear case of benami transaction. The
provisions did not exist even at the stage of
respondent department made order of
notice issued. Thus, the High Courts have
provisional attachment under Section 24 (3) of
power in appropriate cases to prohibit executive
the amended Benami Act, in respect of the
authority from acting without jurisdiction.
properties mentioned in the show cause notices.
Moreover, if executive authority exercised the
It is pleaded case of the petitioners that the
power without jurisdiction that would subject
initiating officer has acted without jurisdiction,
an individual to lengthy proceedings and
as the Benami Transaction (Prohibition)
unnecessary harassment. Hence, to prevent
Amendment Act, 2016, came into effect on 01st
such lengthy proceedings and unnecessary
November, 2016 and the alleged benami
harassment, recourse to jurisdiction under
transactions took place prior to that date. The
Article 226 and/or227 of the Constitution is not
242 Ahmedabad Chartered Accountants Journal July, 2019

Allied Laws Corner

prohibited. Further, the legislative drafting is clarificatory nor curative. Moreover, by way
more than an ordinary prose which differs in of amendment penal consequences have been
provenance, features and its import as to the introduced providing for confiscation of the
meaning attached thereto and presumptions as benami property and enhanced punishment.
to intendment of the legislation.
4. In the case of Prakash and Ors. (supra), the
2. By now, it is well settled law that unless a Apex Court of the land while dealing with the
contrary intention is reflected, legislation is very Benami Amendment Act, 2016, held thus:
presumed and intended to be prospective. For
“17. The text of the amendment itself clearly
in the normal course of human behavior, one is
provides that the right conferred on a
entitled to arrange his affairs keeping in view
‘daughter of a coparcener’ is ‘on and from
the laws for the time being in force and such
the commencement of Hindu Succession
arrangement of affairs should not be dislodged
(Amendment) Act, 2005’. Section 6(3)
by retrospective application of law. The
talks of death after the amendment for its
principle of law known as lexprospicit non
applicability. In view of plain language of
prospicit (law looks forward not backward), is
the statute, there is no scope for a different
a well-known and accepted principle. The
interpretation than the one suggested by the
retrospective legislation is contrary to general
text of the amendment. An amendment of
principle for legislation by which the conduct
a substantive provision is always
of mankind is to be regulated when introduced
prospective unless either expressly or by
for the first time to deal with future acts ought
necessary intendment it is retrospective
not to change the character of past transactions
Shyam Sunder v. Ram Kumar (2001) 8
carried out in the faith of the then existing law
SCC 24, Paras 22 to 27. In the present case,
(vide Phillips Vs. Eyre (1870)LR 6 QB 1).
there is neither any express provision for
Thus, the principle against retrospectively is the
giving retrospective effect to the amended
principle of ‘fair play’ and unless there is a clear
provision nor necessary intendment to that
and unambiguous intendment for retrospective
effect. Requirement of partition being
effect to the legislation which affects accrued
registered can have no application to
rights or imposes obligations or castes new
statutory notional partition on opening of
duties or attaches a new disability is to be treated
succession as per unamended provision,
as prospective.
having regard to nature of such partition
3. It is trite law that an explanatory or declaratory which is by operation of law. The intent
Act is intended to supply an obvious omission and effect of the Amendment will be
or is enacted to clear doubts as to the meaning considered a little later. On this finding, the
of the previous Act. While retrospective view of the High Court cannot be
operation is generally intended as to declaratory sustained.
or curative provisions, which is supplied with
18. Contention of the Respondents that the
the ‘language’ “shall be deemed always to have
Amendment should be read as
meant”. Therefore, in absence of clarity
retrospective being a piece of social
amendment being declaratory or curative in the
legislation cannot be accepted. Even a
face of unambiguous or confusion in the pre-
social legislation cannot be given
amended provisions; the same is not required
retrospective effect unless so provided for
to be treated as curative or declaratory
or so intended by the legislature. In the
amendment. Viewed in the light of the settled
present case, the legislature has expressly
legal proposition, as aforesaid, Benami
made the Amendment applicable on and
Amendment Act, 2016, neither appears to be
from its commencement and only if death
Ahmedabad Chartered Accountants Journal July, 2019 243

Allied Laws Corner

of the coparcener in question is after the protected under a statute, in that event
Amendment. Thus, no other interpretation transgration/violation of those rights could only
is possible in view of express language of be by a legislation with retrospective effect.
the statute. The proviso keeping
7. In view of the settled legal proposition that no
dispositions or alienations or partitions
authority, much less, a quasi-judicial authority,
prior to 20th December, 2004 unaffected
can confer jurisdiction on itself by deciding a
can also not lead to the inference that the
jurisdictional fact wrongly; is a question that is
daughter could be a coparcener prior to the
always open for scrutiny by the High Court in
commencement of the Act. The proviso
an application under Article 226/227 of the
only means that the transactions not
Constitution of India. The very question of
covered thereby will not affect the extent
correctness and legality of the issuance of notice
of coparcenary property which may be
can be examined in exercise of writ jurisdiction.
available when the main provision is
applicable. Similarly, Explanation has to 8. In the case of MangathaiAmmal (died) through
be read harmoniously with the substantive L.Rs. &Ors. (supra), the Apex Court of the land
provision of Section 6(5) by being limited while dealing with issue of retrospective effect
to a transaction of partition effected after of the Benami Amendment Act, 2016, in
20th December, 2004. Notional partition, unambiguous terms held that Benami
by its very nature, is not covered either Transaction Act would not be applicable
under proviso or under Subsection 5 or retrospectively. At this juncture, it would be
under the Explanation.” relevant to take note of the text of para 12 of
the said judgment which reads thus:
5. By now, it is well settled law that a substantive
provision unless specifically made retrospective “12. It is required to be noted that the benami
or otherwise intended by the Parliament should transaction came to be amended in the year
always be held to be prospective. The power 2016. As per Section 3 of the Benami
to confiscate and consequent forfeiture of rights Transaction (Prohibition) Act 1988, there
or interests are drastic being penal in nature, was a presumption that the transaction
and therefore, such statutes are to be read very made in the name of the wife and children
strictly. However, there can be no exercise of is for their benefit. By Benami Amendment
powers under such statutes by way of extension Act, 2016, Section 3(2) of the Benami
or implication (vide O.Konavalov (supra). Transaction Act, 1988 the statutory
presumption, which was rebuttable, has
6. In the case of D.L.F. Qutab Enclave Complex
been omitted. It is the case on behalf of the
Educational Charitable Trust (supra), the
Respondents that therefore in view of
Apex Court of the land in no uncertain terms
omission of Section 3(2) of the Benami
observed that extraordinary legislation must be
Transaction Act, the plea of statutory
strictly construed and a penal statute must
transaction that the purchase made in the
receive strict construction. The Supreme Court
name of wife or children is for their benefit
further observed that the mischief of rule, if
would not be available in the present case.
applied, in view of amendment made would
Aforesaid cannot be accepted. As held by
be in infraction to the provisions of Article 20
this Court in the case of Binapani Paul
of the Constitution of India, cannot be given
(Supra) the Benami Transaction
retrospective effect. Similar is the position
(Prohibition) Act would not be applicable
operating in the instant batch of cases at hand.
retrospectively. Even otherwise and as
The rights accrued in favour of any person
observed hereinabove, the Plaintiff has
owing to a transaction in the nature of contract
miserably failed to discharge his onus to
244 Ahmedabad Chartered Accountants Journal July, 2019

Allied Laws Corner

prove that the Sale Deeds executed in that the property was purchased for the
favour of Defendant No. 1 were benami benefit of the wife or unmarried daughter,
transactions and the same properties were as the case may be. Simultaneously,
purchased in the name of Defendant No. Section 4 of the Benami Act contained a
1 by NarayanasamyMudaliar from the prohibition in respect of right to recover
amount received by him from the sale of property held benami. Sub-section (1)
other ancestral properties.” provided that no suit, claim or action to
enforce any right in respect of any property
9. Article 20 of the Constitution of India is
held benami against the person in whose
fundamental right guaranteed under Part-III of
name the property is held, or against any
the Constitution and the penal consequences
other person, shall lie by or on behalf of a
emanating from the Benami Amendment Act,
person claiming to be the real owner of
2016, in infraction to the mandate of
such property. Sub-section (2) made
fundamental rights guaranteed under Article 20
provisions likewise in respect of a defence
of the Constitution; cannot be given
based on a plea of benami transaction. Sub-
retrospective effect in absence of a clear
section (2) provided that no defence based
stipulation by the Parliament on retrospectivity.
on any right in respect of any property held
10. In the case of Joseph Isharat (supra), relying benami, whether against the person in
upon the opinion of the Apex Court of the land whose name the property is held or against
in the case of R. Rajagopal Reddy (Dead) any other person, shall be allowed in any
by L.Rs. and Ors. (supra) while examining suit, claim or action by or on behalf of a
the provisions of amendment introduced by the person claiming to be the real owner of
Legislature through Benami Amendment Act, such property. There was a twofold
2016, made effective from 1st November, 2016, exception to this restriction. First was in
the Bombay High Court observed thus: respect of the person in whose name the
4. Under the Benami Act, as it stood on the property is held being a coparcener in a
date of the suit as well as on the date of Hindu undivided family and the property
filing of written statement and passing of being held for the benefit of the coparceners
the decree by the courts below, provided of the family. The second exception was
for the definition of a “benami transaction” in respect of the person, in whose name
under clause (a) of Section 2. Under that the property was held, being a trustee or
provision, any transaction in which other person standing in a fiduciary
property is transferred to one person for capacity and the property being held for
consideration paid or provided by another the benefit of another person for whom he
came within the definition of “benami was such trustee or towards whom he stood
transaction”. Section 3 of the Benami Act, in such capacity. The present suit was filed
in sub-section (1), provided that no person when these provisions were in operation.
shall enter into any benami transaction. These provisions continued to apply even
Sub-section (2) contained two exceptions when the written statement was filed by
to the prohibition contained in sub-section the Defendant and the suit was heard and
(1). The first exception, contained in clause decreed by both the courts below. The legal
(a) of sub-section (2), was in respect of provisions continued to apply even when
purchase of property by any person in the the second appeal was filed before this
name of his wife or unmarried daughter. court. It is only now during the pendency
In the case of such purchase, it was to be of the second appeal, when it has come up
presumed, unless the contrary was proved, for final hearing, that there is a change in


Ahmedabad Chartered Accountants Journal July, 2019 245

Allied Laws Corner

law. The Benami Act has been amended defined under the Income Tax Act, 1961,
by the Parliament in 2016 with the passing by virtue of sub-section (31) of Section 2
of the Benami Transactions (Prohibition) of the amended Benami Act, the meaning
Amendment Act, 2016. This amendment of the expression will be the one assigned
has come into effect from 01 November to it under the Income Tax Act. The
2016. In the Amended Act the definition definition of daughter under the Income
of “benami transaction” has undergone a Tax Act admits of a step-child within it. It
change. Under the Amended Act “benami is submitted that under the amended
transaction” means (under Section 2(9) of definition of “benami transaction”, thus,
the Act) a transaction or an arrangement there is a clear exception in respect of a
where a property is transferred to, or is held purchase made in the name of a step-
by, a person, and the consideration for such daughter by an individual provided, of
property has been provided, or paid by, course, the consideration has been
another person; and the property is held provided or paid out of known sources of
for the immediate or future benefit, direct the individual.
or indirect, of the person who has provided
7. What is crucial here is, in the first place,
the consideration. There are four exceptions
whether the change effected by the
to this rule. The first is in respect of a karta
legislature in the Benami Act is a matter of
or a member of a Hindu undivided family
procedure or is it a matter of substantial
holding the property for the benefit of the
rights between the parties. If it is merely a
family. The second exception is in respect
procedural law, then, of course, procedure
of a person standing in a fiduciary capacity
applicable as on the date of hearing may
holding the property for the benefit of
be relevant. If, on the other hand, it is a
another person towards whom he stands
matter of substantive rights, then prima
in such capacity. The third exception is in
facie it will only have a prospective
the case of an individual who purchases
application unless the amended law speaks
the property in the name of his spouse or
in a language “which expressly or by clear
child, the consideration being provided or
intention, takes in even pending matters.”.
paid out of the known sources of the
Short of such intendment, the law shall be
individual. The fourth exception is in the
applied prospectively and not
case of purchase of property in the name
retrospectively.
of brother or sister or lineal ascendant or
descendant where the names of such 8. As held by the Supreme Court in the case
brother or sister or lineal ascendant or of R. Rajagopal Reddy v. Padmini
descendant, as the case may be, and the Chandrasekharan (1995) 2 SCC 630,
individual appear as joint owners in any Section 4 of the Benami Act, or for that
document. Sub-section (1) of Section 3 matter, the Benami Act as a whole, creates
contains the very same prohibition as substantive rights in favour of benamidars
under the unamended Act, in that it and destroys substantive rights of real
prohibits all benami transactions. Section owners who are parties to such transaction
4 likewise prohibits suits, claims or actions and for whom new liabilities are created
or defences based on the plea of benami under the Act. Merely because it uses the
as in the case of the unamended Act. The word “it is declared”, the Act is not a piece
submission is that under this scheme of law, of declaratory or curative legislation. If one
step-daughter not having been defined has regard to the substance of the law rather
under the Benami Act, but having been than to its form, it is quite clear, as noted



246 Ahmedabad Chartered Accountants Journal July, 2019

Allied Laws Corner

by the Supreme Court in R. Rajagopal Officer and no question of law was involved
Reddy, that the Benami Act affects therein.
substantive rights and cannot be regarded
14. In the case of Gujarat Ambuja Cement Ltd.
as having a retrospective operation. The
and Ors. (supra), while dealing with scope and
Supreme Court in R. Rajagopal Reddy also
ambit of writ application under Article 226 of
held that since the law nullifies the defences
the Constitution of India, the Supreme Court
available to the real owners in recovering
observed that what is to be ensured before
the properties held benami, the law must
entertaining such an application is that a strong
apply irrespective of the time of the benami
case is made out and there exists no ground to
transaction and that the expression “shall
interfere in extra-ordinary jurisdiction. It was
lie” in Section 4(1) or “shall be allowed”
further observed that where under a statute there
in Section 4(2) are prospective and apply
is an allegation of infringement of fundamental
to the present (future stages) as well as
right or when on the undisputed facts the Taxing
future suits, claims and actions only. These
Authorities are shown to have assumed
observations clearly hold the field even as
jurisdiction which they do not possess, can be
regards the present amendment to the
the grounds for entertaining writ application.
Benami Act. The amendments introduced
To the same effect is opinion of the Supreme
by the Legislature affect substantive rights
Court in the case of HarbanslalSahnia and
of the parties and must be applied
ors.(supra).
prospectively.”
15. For the reason aforesaid and in the backdrop
11. It is also a fact that an SLP instituted against
of the settled legal proposition so also in view
the opinion (supra), has also been declined by
of singular factual matrix of the matters herein;
the Supreme Court on 28th April, 2017 in
this Court has no hesitation to hold that the
Special Leave to Appeal (C) No. 12328/2017.
Benami Amendment Act, 2016, amending the
12. In the case of Mohar Singh (supra), the Apex Principal Benami Act, 1988, enacted w.e.f. 1st
Court of the land dealt with the consequences November, 2016, i.e. the date determined by
of repeal of the Act. The question in the case the Central Government in its wisdom for its
of Zile Singh (supra), was related to enforcement; cannot have retrospective effect.
disqualification from being a member of
16. It is made clear that this Court has neither
Municipal Council (if children were more than
examined nor commented upon merits of the
two). Thus, there was no violation of any
writ applications but has considered only the
fundamental right or penal consequence
larger question of retrospective applicability of
contemplated. Hence, the principles cannot be
the Benami Amendment Act, 2016 amending
applied to the controversy raised in the instant
the original Benami Act of 1988. Thus, the
batch of writ applications. Similarly, in the case
authority concerned would examine each case
of Yogendra Kumar Jaiswal (supra), the
on its own merits keeping in view the fact that
observations made by the Apex Court of the
amended provisions introduced and the
land while dealing with the issue of confiscation
amendments enacted and made enforceable
or attachment of money/property that was
w.e.f. 1st November, 2016; would be
acquired illegally and that too at an interim stage
prospective and not retrospective.
of prosecution.
13. In the case of Titaghur Paper Mills Co. Ltd.
and Ors. (supra), the matter that fell for
consideration of the Supreme Court, was with i i i
regard to ultra vires/jurisdiction of Sales Tax


Ahmedabad Chartered Accountants Journal July, 2019 247

From

Published

Accounts
CA. Pamil H. Shah
[email protected]

On March 30, 2019, MCA notified some Ind AS of low value. Currently, operating lease
and some amendments the effective date of expenses are charged to the statement of Profit
st
implementation of which is 1 of April 2019. I found & Loss. The Standard also contains enhanced
very interesting notes in this company and therefore disclosure requirements for lessees. Ind AS 116
this entire column is focused on this so that readers substantially carries forward the lessor
may be updated with new amendments in Ind As. accounting requirements in Ind AS 17.
Orient Green Power Company Limited The effective date for adoption of Ind AS 116
is accounting periods beginning on or after
Notes forming part of consolidated financial
April 1, 2019. The standard permits two
statements for the year ended 31 March, 2019
possible methods of transition:
2. Applicability of new and revised Ind AS
• Full retrospective – Retrospectively to each
All the Indian Accounting Standards issued and prior period presented applying Ind AS 8
notified by the Ministry of Corporate Affairs Accounting Policies, Changes in
under the Companies (Indian Accounting Accounting Estimates and Errors.
Standards) Rules, 2015 (as amended) till the
• Modified retrospective – Retrospectively,
financial statements are authorized have been
with the cumulative effect of initially applying
considered in preparing these financial
the Standard recognized at the date of initial
statements. There are no other Indian
application. Under modified retrospective
Accounting Standards that have been issued
approach, the lessee records the lease liability
as at 31 March 2019, but were not mandatorily
as the present value of the remaining lease
effective except as stated below:
payments, discounted at the incremental
Recent Indian Accounting Standards Issued borrowing rate and the right of use asset either
but not effective as at 31 March 2019 as:
Ind AS 116, Leases f& Its carrying amount as if the standard had
been applied since the commencement date, but
On March 30, 2019, the Ministry of Corporate
discounted at lessee’s incremental borrowing
affairs notified Ind AS 116, Leases. Ind AS 116
rate at the date of initial application.
will replace the existing leases Standard, Ind
AS 17 Leases, and related Interpretations. The Or
Standard sets out the principles for the
f& An amount equal to the lease liability,
recognition, measurement, presentation and
adjusted by the amount of any prepaid or
disclosure of leases for both parties to a contract
accrued lease payments related to the lease
i.e., the lessee and the lessor. Ind AS 116
recognized under Ind AS 17 immediately before
introduces a single lessee accounting model and
the date of initial application.
requires a lessee to recognize assets and
liabilities for all leases with a term of more than Certain practical expedients are available under
twelve months, unless the underlying asset is both the methods.


248 Ahmedabad Chartered Accountants Journal July, 2019

From Published Accounts

The Group is carrying out the possible impact Amendment to Ind AS 12 – Income taxes
of Ind AS 116 and will adopt the standard from
On March 30, 2019, Ministry of Corporate
April 01, 2019, being its effective date.
Affairs issued amendments to the guidance in
Ind AS 12 Appendix C, Uncertainty over
Ind AS 12, ‘Income Taxes’, in connection with
Income Tax Treatments
accounting for dividend distribution taxes.
On March 30, 2019, Ministry of Corporate
Affairs has notified Ind AS 12 Appendix C, The amendment clarifies that an entity shall
Uncertainty over Income Tax Treatments which recognize the income tax consequences of
is to be applied while performing the dividends in profit or loss, other comprehensive
determination of taxable profit (or loss), tax income or equity according to where the entity
bases, unused tax losses, unused tax credits and originally recognized those past transactions or
tax rates, when there is uncertainty over income events.
tax treatments under Ind AS 12. According to
Effective date for application of this amendment
the appendix, companies need to determine the
is annual period beginning on or after April 1,
probability of the relevant tax authority
2019. The effect of this amendment would be
accepting each tax treatment, or group of tax
insignificant in these consolidated financial
treatments, that the companies have used or plan
statements of the group.
to use in their income tax filing which has to
be considered to compute the most likely Amendment to Ind AS 19 – plan
amount or the expected value of the tax amendment, curtailment or settlement
treatment when determining taxable profit (tax
On March 30, 2019, Ministry of Corporate
loss), tax bases, unused tax losses, unused tax
Affairs issued amendments to Ind AS 19,
credits and tax rates.
‘Employee Benefits’, in connection with
The standard permits two possible methods of
accounting for plan amendments, curtailments
transition - i) Full retrospective approach –
and settlements.
Under this approach, Appendix C will be
applied retrospectively to each prior reporting The amendments require an entity:
period presented in accordance withInd AS 8
• to use updated assumptions to determine
– Accounting Policies, Changes in Accounting
current service cost and net interest for the
Estimates and Errors, without using hindsight
remainder of the period after a plan
and
amendment, curtailment or settlement; and
ii) Retrospectively with cumulative effect of
initially applying Appendix C recognized by • to recognize in profit or loss as part of past
adjusting equity on initial application, without service cost, or a gain or loss on settlement,
adjusting comparatives. any reduction in a surplus, even if that
surplus was not previously recognized
The effective date for adoption of Ind AS 12
because of the impact of the asset ceiling.
Appendix C is annual periods beginning on or
after April 1, 2019. The Company/Group will Effective date for application of this amendment
adopt the standard on April 1, 2019 and has is annual period beginning on or after 1 April
decided to adjust the cumulative effect in equity 2019. The effect of this amendment would be
on the date of initial application i.e. April 1, insignificant in these consolidated financial
2019 without adjusting comparatives. statements of the group.
The effect on adoption of Ind AS 12 Appendix
C would be insignificant in these consolidated i i i
financial statements.

Ahmedabad Chartered Accountants Journal July, 2019 249

From the


Government

CA. Ashwin H. Shah CA. Kunal A. Shah
[email protected] [email protected]

Goods and Service Tax Income Tax :
1) The recommendations of the Council in the 1) Extension of Due Date for filing of Income
th
36 GST Council Meeting are as under:- Tax Returns
The Central Board of Direct Taxes, in exercise
A. GST rate related changes on supply of
of its powers conferred under section 119 of
goods and services :-
the Income-tax Act, 1961 (‘Act’), hereby
i. The GST rate on all electric vehicles extends the ‘due-date’, as prescribed under
be reduced from 12% to 5%. section 139(1) of the Act, for filing income-tax
returns from 31 July, 2019 to 31st August,
st
ii. The GST rate on charger or charging 2019 in cases of all taxpayers who are liable to
stations for Electric vehicles be file their income tax returns by the said ‘due-
reduced from 18% to 5%. date’.
rd
iii. Hiring of electric buses (of carrying (Order dated 23 ,July, 2019)
capacity of more than 12 passengers) 2) Notification relating to exemption to certain
by local authorities be exempted from class of persons from furnishing the return
GST. of income

(These changes shall become effective CBDT hereby exempts the following class of
st
from 1 August, 2019.) persons from the requirement of furnishing a
return of income under sub-section (1) of
B. Changes in GST law: section 139 of the said Act from Assessment
Year 2019-20 onwards, subject to the
1. Last date for filing of intimation,
conditions specified thereinafter:-
in FORM GST CMP-02, for availing
the option of payment of tax under (i) A non-resident, not being a company; or
notification No. 2/2019-Central Tax (ii) A foreign company,
(Rate) dated 07.03.2019 (by exclusive
who have any income chargeable under the said
supplier of services), to be extended
Act during a previous year from any investment
from 31.07.2019 to 30.09.2019.
in an investment fund set up in an International
2. The last date for furnishing statement Financial Services Centre (IFSC) located in
containing the details of the self- India.
assessed tax in FORM GST CMP- The exemption from the requirement of
08 for the quarter April, 2019 to June, furnishing a return of income shall not be
2019 (by taxpayers under composition available to the said class of persons where a
scheme), to be extended from notice under sub-section (1) of section 142 or
31.07.2019 to 31.08.2019. section 148 or section 153A or section 153C
of the said Act has been issued for filing a return

250 Ahmedabad Chartered Accountants Journal July, 2019

From the Government

of income for the assessment year specified b) Conditions :- In case of class of persons
therein. referred to in para above –

Note :- (i) Any income-tax due on income of the
said class of persons has been deducted
a) Investment Fund means any fund
at source and remitted to the Central
established or incorporated in India in the
Government by the investment fund at
form of a trust or a company or a limited
the tax-rate in force as per provisions
liability partnership or a body corporate
of section 194LBB of the said Act; &
which has been granted a certificate of
registration as a Category I or Category II (ii) There is no other income during the
Alternative Investment Fund and is previous year for which the said class
regulated under the Securities and of persons, is otherwise liable to file
Exchange Board of India (Alternative the tax return.
Investment Fund) Regulations, 2012, made
(Notification No. 55/2019, dated 26 th
under the Securities and Exchange Board
July,2019)
of India Act, 1992.
i i i



contd. from page 241 Corporate Law Update

VII, the following item shall be substituted,
namely:- (iii)Fee payable if the Rs.5000/-
individual failed to file
“VII. FEE FOR FILING e-Form DIR-3 KYC
e-form DIR-3 KYC or
or DIR-3 KYC-WEB under rule 12A of the
DIR-3 KYC-WEB
Companies (Appointment and Qualification of
through web service,
Directors) Rules, 2014:
as the case may be,
(i) Subject to serial number ——- for the immediate previous
(iii) below, fee payable financial year
till the 30th September or (in delayed case)
every financial year in
[F. No. 01/16/2013-CL-V (Pt-I) dated
respect of e-form DIR-3
25.07.2019]
KYC or DIR-3 KYC- WEB
through web service, as the
case may be, for the
immediate previous
financial year
(ii) Fee payable Rs. 5000/-
(in delayed case). i i i













Ahmedabad Chartered Accountants Journal July, 2019 251

New Delhi


Times

CA. Aniket Talati
[email protected]

ICAI to open office in Kashmir..! into MoU with Gujarat Forensic Sciences
University in the areas pertaining to Forensic
I am happy to share that in the August Council Science, Technology and Forensic Accounting.
meeting we unanimously resolved to open an office
in Kashmir Valley in line with the government’s ICAI UDIN
decision to integrate the State. The Institute of
UDIN is made mandatory on all audit reports &
Chartered Accountants of India (ICAI) will open a
attest functions with effect from 1st July 2019.
representative office in Srinagar. This will help
Members attesting Corporate / Company Audits
serve the areas of Jammu & Kashmir and Ladakh,
may kindly make note of the same and ensure
both of which were recently declared union
compliance of UDIN in attest services as per the
territories by the government after the abrogation
phases.
of Article 370 and Article 35A, which gave the
formerly unified state of Jammu & Kashmir (which All ‘ITT Centres’ across India upgraded with
included Ladakh) special status. The office will act New PC ’s
as a facilitation centre to spread awareness about
the chartered accountancy course as a tool for social The Council at its 382nd meeting held on March
empowerment and provide much needed 25, 2019 decided to replace old computers of IT
professional employment opportunities to the local centres all across the India with latest Desktops and
youth. in this context, an RFP was released by the Institute.
Members will appreciate that this has happened after
New Computers
a gap of 10 years and the council has moved from
policy paralysis to quick and effective decision
Council has decided to upgrade all IT centres across
making to ensure world class member and student
India with brand New Lenovo Computers.
services. I am confident that in this digital era when

Professional Opportunity technological disruptions are happening our students
will be at the forefront and will not have to suffer
CA’s have been made eligible to appointed as because of lack of infrastructure. These latest
Arbitrators. computers will also allow us to teach them top
quality ERPs such as SAP, Finacle etc in their
GST Survey
training to meet industry expectations !

Results of Survey would be published as research
Lenevo Brand computers qualified for the Bid
paper by Sep, 2019
which was conducted in a fair & transparent manner
by involving top senior officers of ICAI. All top
DAAB of ICAI has given its in principle to enter


252 Ahmedabad Chartered Accountants Journal July, 2019

New Delhi Times

International brands participated in the bid. The ease of doing business, reduced interaction with the
council decided to keep the process extremely swift Government Officials, ease of compliance etc. In
and result oriented without involving any council order to facilitate the Governing Body and other
members and conducting the same in a smooth stakeholders, it has been thought fit to conduct a
manner through senior officials. survey on the entire gamut of GST to find out the
achievement, glitches and area which needs
Chartered Accountants as ‘Arbitrator’ under attention going forward.
the Act
http://idtc.icai.org/cc/apps/survey.php.
I am happy to share that on representation of ICAI
to Law Ministry, “Chartered Accountant” have Simplified and Auto fill enabled MEF : Now
been made eligible to be appointed as “Arbitrator” Hosted online!
under the Arbitration and Conciliation Act, 1996. I
am sure that this will open up a lot of new Professional Development Committee has made
Multipurpose Empanelment Form (MEF) for the
professional opportunities for our members and just
as in the case of Insolvency Professionals, CAs will year 2019-20 live and is available at http://
mef.icai.org/ for all practicing Chartered
also lead the charge in this upcoming and
Accountants.
developing arena !

GST Due Date extension: ICAI makes detailed For the facilitation of members for submission of
Multipurpose Empanelment Form for the year
representation
2019-20, following have been incorporated:
On successful representation by ICAI detailing
1. Applicants registered earlier for MEF 2018-19
various reasons, the last date for furnishing of
have to simply login with MEF 2018-19
annual return in the Form GSTR-9/ Form GSTR-
credentials.
9A and reconciliation statement in the Form
GSTR-9C for the financial year 2017-18 is
2. Most of fields are pre-filled and autopopulated
extended from 31st August, 2019 to 30th
from Institute’s records or last year’s MEF.
November, 2019. Owing to some technology
system concerns and ambiguities in the reporting, The last date for submission of online MEF Form
coupled with other statutory deadlines, this for the year 2019-20 is 4th September, 2019 and
extension was much sought after and should help online Declaration is to be submitted within 10 days
provide quite a breather to businesses and of the filling of MEF but not later than 11th
professionals. September, 2019 FAQ’s hosted at MEF website
on https://meficai.org/index.php/faqs/
Survey on GST Implementation in India

It has been 2 years since implementation of most
ambitious taxation i.e. GST in India. After the initial
hiccup, the industries have started showing signs
i i i
of stabilization. It is said that the GST has facilitated







Ahmedabad Chartered Accountants Journal July, 2019 253

Association

News

CA. Shivang R. Chokshi CA. Ketan G. Mistry
Hon. Secretary Hon. Secretary
Forthcoming Programmes

ND
2 BRAIN TRUST CUM WORKSHOP
Date Day Time Programmes Speakers Venue
21.08.2019 Wednesday 3.30 p.m. Issues on Tax Audit & CA Tejas Mehta ATMA Hall,
Reporting in Form 3CD CA Malay Deliwala Ashram Raod,
(Dhruva Advisors LLP)
Glimpses of events gone by:


















Union Budget Meeting on “Technical Analysis of Finance Bill, 2019” by Shri Saurabh N, Soparkar,
Senior Advocate, on 8th July, 2019





















Study Circle meeting on “Important Clauses of Study Circle meeting on “Valuation of Inventory
Form 3CD” by CA. Anuj Sharedalal on under Income Tax Act (section 145A- ICSD II –
02.08.2019 Live example of Working for adjustment in value
of inventory due to tax impact)”by CA. Jignesh
Shah on 07.08.2019

i i i

254 Ahmedabad Chartered Accountants Journal July, 2019

Ahmedabad Chartered Accountants Journal July, 2019 255

256 Ahmedabad Chartered Accountants Journal July, 2019