at the end of the lease term. Freehold land is not From Published Accounts
depreciated. Borrowingcostsrelatingtoacquisition
of PPE which takes substantial period of time to inrespect of Aeroplanes/Helicopters(30 yearswith
get ready for itsintended usearealso included to an estimated residual valueof 5%), in whosecase
theextent they relateto theperiod till such assets the life of the assets has been assessed as under
areready to beput to use. Depreciation on PPE is based on technical advice, taking into account the
providedbasedonuseful livesof theassetsassigned natureof theasset, theestimated usageof theasset,
to each asset in accordancewith ScheduleII to the theoperating conditionsof theasset, past history
Companies Act, 2013 on straight-line method. of replacement, anticipated technological changes,
Fixturesand leasehold improvementsinstalled in manufacturerswarrantiesand maintenancesupport,
leasedbuildingsareamortizedover theinitial period etc. Theestimated useful lifeof thetangibleassets
of lease. and theuseful lifearereviewed at theend of each
financial year andthedepreciationperiodisrevised
K alyan Jeweller sI ndia L imited to reflect thechanged pattern, if any.
Land and buildingsheld for usein theproduction An item of property, plant and equipment is
or supply of goodsor services, or for administrative derecognised upon disposal or when no future
purposes, are stated at cost less accumulated economic benefits are expected to arise from
depreciation and accumulated impairment losses. continued useof theasset.Any gain or lossarising
Freehold land isnot depreciated. on thedisposal or retirement of an itemof property,
plant andequipment isdeterminedasthedifference
Property, plant and equipment are carried at cost between thesalesproceedsand thecarrying amount
less accumulated depreciation and impairment of the asset and is recognised in the statement of
losses, if any. The cost of property, plant and profit and loss.
equipment comprisesitspurchaseprice/ acquisition
cost, net of any trade discounts and rebates, any Star Paper M illsLimited
import duties and other taxes (other than those
subsequently recoverablefrom thetax authorities), Property, plant and equipment arestated at cost of
any directly attributableexpenditureonmakingthe acquisition or deemed cost onthedateof transition
asset ready for its intended use, other incidental except fair value of freehold land on date of
expensesandinterest onborrowingsattributableto transitionconsideredasdeemedcost or construction
acquisition of qual ifying property, plant and and subsequent i mprovements thereto l ess
equipment up to the datethe asset is ready for its accumulated depreciation and impairment losses,
intended use. Machinery spareswhich can beused if any. Cost of an asset comprisesitspurchaseprice
only in connection with an item of Property, plant or itsconstructioncost including import dutiesand
and equipment and whose use is expected to be non-refundable purchase taxes, inward freight,
irregular arecapitalised and depreciated over the dismantling costs, installation expenseswherever
useful lifeof theprincipal itemof therelevant assets. applicableandany cost directly attributabletobring
Subsequent expenditure on property, plant and theasset into thelocation and condition necessary
equipment after i ts purchase / compl etion is for it to be capable of operating in the manner
capitalised only if such expenditure results in an intended by themanagement, after deducting trade
increase in the future benefits from such asset discounts and rebates and recoverable taxes. For
beyond i ts previ ousl y assessed standard of major projects, interest and other costsincurred on
performance. / related to direct borrowingsto financeprojects/
fixed assetsduring construction period and related
Depreciation on Property, plant and equipment pre-operati ve expenses, i f appropri ate, are
(other thanfreeholdland) hasbeenprovided onthe capitalized. Partsof anitemof PPEhavingdifferent
straight-linemethodasper theuseful lifeprescribed useful lives and material value and subsequent
in ScheduleII to theCompaniesAct, 2013 except expenditure on Property, Plant and Equipment
arising on account of capital improvement or other
Ahmedabad Chartered Accountants Journal November, 2022 449
From Published Accounts On transition to IndAS, the Group has elected to
continue with the carrying value for all of its
factorsareaccounted for asseparatecomponents. Property, plant andequipment recognisedasatApril
The cost of replacing part of an item of property, 1, 2015 measured as per the previous GAAP and
plant and equipment isrecognised in thecarrying use that carrying value as the deemed cost of the
amount of theitem if it isprobablethat thefuture Property, plant and equipment.
economic benefits embodied within the part will
flow to theCompany and itscost can bemeasured Capital work in progressincludescost of property,
reliably. The costs of the day-to-day servicing of plant and equipment under installation / under
property, plant andequipment arerecognisedin the development asat thebalancesheet date.
incomestatement when incurred. Capital Work-in-
progress includes preoperative and development Advancespaid towardstheacquisitionof property,
expenses, equipmentsto beinstalled, construction plant and equipment outstanding at each balance
and erection materials, etc. Such properties are sheet dateisclassifiedas“Capital Advances” under
classifiedtotheappropriatecategoriesof PPEwhen other non-current assets. Subsequent expenditures
completed and ready for intended use. relati ng to property, plant and equi pment is
capitalized only when it is probable that future
Depr eci at i on and A mor t i zat i on of economic benefitsassociated with thesewill flow
Expenses:Depreciation on PPE isprovided on the to the group and the cost of the item can be
basisof lifereviewed and assessed by thecompany measured reliably.
at theend of theyear based on technical evaluation
of relevant class of assets, as detailed below: Property, plant and equipment areeliminated from
Buildings 30 Years Plant and Equipments 10-15 consolidatedfinancial statement ondisposal. Gains
Years Furniture and Fixtures 5-10YearsVehicles or losses arising from disposal of property, plant
10YearsComputer 3-5YearsOfficeEquipment 10 and equipment arerecognized in thestatement of
Years. profit and lossin theyear of occurrence.
I magicaaWor ld Enter tainment L imited Theassets’residual values,useful livesandmethods
of depreciation arereviewed at each financial year
Property,plant andequipment represent asignificant end and adjusted prospectively, if appropriate.
proportion of theasset baseof theGroup.
Depreciation ischarged on Straight LineMethod
Property, plant andequipment arestatedat original over the useful life of the assets as specified in
cost net of tax / duty credit availed, lessaccumulated ScheduleII of theCompaniesAct, 2013 or on the
depreciation and accumulated impairment losses, basis of useful lives of the assets as estimated by
if any. Whensignificant partsof property, plant and management, whichever islower. Useful lifeof the
equipment arerequired to bereplaced at intervals, assetsistabulated below.
the Group derecognizes the replaced part and
recognizes the new part with its own associated hhh
useful li fe and it i s depreciated accordingly.
Likewise, when amajor inspection isperformed,
itscost isrecognized in thecarrying amount of the
plant and equi pment as a repl acement if the
recognitioncriteriaaresatisfied.All other repair and
maintenancecostsarerecognized in thestatement
of profit and lossasincurred.
450 Ahmedabad Chartered Accountants Journal November, 2022
From the
Government
CA. Ashwin H. Shah CA. Kunal A. Shah
[email protected] [email protected]
Goodsand Ser viceTax
1) Circular r elating to r efund r elated issues
In order to clarify theissuesand to ensureuniformity in theimplementation of theprovisionsof law
across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the
Central Goodsand ServicesTax Act, 2017 (hereinafter referred to as“CGST Act”),hereby clarifiesthe
issuesasunder:
S. No. Issue Clar ification
1. Whether theformulaprescribed Vide Notification No. 14/2022-Central Tax dated
under sub-rule (5) of rule 89 of the 05.07.2022, amendment hasbeen madein sub-rule
CGST Rules, 2017 for calculation of (5) of rule89 of CGST Rules, 2017, modifying the
refund of unutilised input tax credit formulaprescribed therein. Thesaid amendment is
on account of inverted duty structure, not clarificatory in nature and isapplicabledated
as amended vide Notification No. prospectively with effect from 05.07.2022.
14/2022-Central Tax 05.07.2022, Accordingly, it is clarified that the said amended
will apply only to therefund formulaunder sub-rule(5) of rule89 of theCGST
applicationsfiled on or after Rules, 2017 for calculation of refund of input tax
05.07.2022, or whether thesamewill credit on account of inverted duty structurewould
also apply in respect of therefund beapplicablein respect of refund applicationsfiled
applicationsfiled before05.07.2022 onor after 05.07.2022. Therefund applicationsfiled
and pending with the proper officer before05.07.2022 will bedealt asper theformula
ason 05.07.2022? asit existed beforetheamendment madevide
Notification No. 14/2022-Central Tax dated
05.07.2022.
2. Whether therestriction placed on refund VideNotification No. 09/2022-Central Tax (Rate)
of un-utilised input tax credit on account dated 13.07.2022, under thepowersconferred by
of inverted duty structurein caseof clause(ii) of the first proviso to sub-section (3) of
certain goodsfalling under chapter 15 section 54 of theCGST Act, 2017, certain goods
and 27 videNotification No. 09/2022- falling under chapter 15and 27 havebeen specified
Central Tax (Rate) dated 13.07.2022, in respect of which no refund of un-utilised input
which hasbeen madeeffectivefrom tax credit shall beallowed, wherethecredit has
18.07.2022, would apply to therefund accumulated on account of rateof tax on inputs
applicationspending ason 18.07.2022 beinghigherthantherateof tax ontheoutput supplies
also or whether thesamewill apply only of such specified goods(other thannil rated or fully
to therefund applicationsfiled on or exempt supplies). Thesaidnotificationhascomeinto
after 18.07.2022 or whether thesame forcewith effect from 18.07.2022. Therestriction
will beapplicableonly to refunds imposed videNotification No. 09/2022-Central Tax
Ahmedabad Chartered Accountants Journal November, 2022 451
Fr om the Gover nments
pertaining to prospectivetax periods? (Rate) dated13.07.2022onrefundof unutilisedinput
tax credit on account of inverted duty structure in
caseof specified goodsfalling under chapter 15 and
27 would apply prospectively only. Accordingly, it
is clarified that therestriction imposed by thesaid
notification would be applicable in respect of all
refundapplicationsfiledon or after 18.07.2022, and
would not apply to the refund applications filed
before18.07.2022.
It isrequested that suitable trade notices may be issued to publicize the contents of thisCircular.
Cir cular No 181 dated 10/11/2022
2) Cir cular relatingto Guidelinesfor verifying MODEL-1 Statesand BO portal for MODEL
theTr ansitional Credit in light of theor der 2 States). Further, aself-certified downloaded
of theHon’bleSupr emeCour t in theUnion copy of TRAN-1/TRAN-2filed/revised by the
of I ndia vs. Filco Tr ade Centre Pvt. L td., applicant shall also be made available to the
SL P(C) No. 32709- 32710/2018,or der dated jurisdictional tax officer by thesaid applicant
22.07.2022 & 02.09.2022-r eg. as mentioned in Para 4.5 of Circular 180/12/
2022 dated09.09.2022.
In this referred circular, it is mentioned that
Hon’bleSupremeCourt hasonly allowed filing Theverification of thetransitional credit shall
of TRAN 1/TRAN- 2 or revising theTRAN- beconducted by thejurisdictional tax officer
1/TRAN-2 already filed by theapplicant and who will passan appropriateorder regarding
has not allowed the applicant to file revised theveracity of theclaim filed by theapplicant,
returnsunder theexisting laws. based on all the facts and the provisions of
thelaw. In respect of TRAN-1/TRAN-2 filed/
Referenceisalso invited to theBoard’sCircular revi sed by the appl i cant under the
No. 180/12/2022dated09.09.2022videwhich admi ni strative control of the central tax
guidelineshavebeen issued for theapplicants authorities, such verification and issuanceof
for filing new TRAN-1/TRAN-2 or revising order shall bedoneby thejurisdictional officer
the already filed TRAN-1/TRAN-2 on the of central tax, whereas in respect of TRAN-
common portal. 1/TRAN-2 fil ed/revised by the applicant
under the administrativecontrol of the state
To ensureuniformity in theimplementation of tax authorities, thesameshall bedoneby the
the directionsof the Hon’bleSupreme Court j uri sdi cti onal of fi cer of state tax. The
acrossfield formations, theBoard, in exercise j uri sdi cti onal tax offi cer shal l start the
of its powers conferred by section 168 (1) of veri f i cati on process i mmedi atel y on
theCentral Goodsand ServicesTax Act, 2017 availability of TRAN-1/TRAN-2filed/revised
(hereinafter referred to as “CGST Act”), by theapplicant on theback officesystem or
hereby issuesthe guidelinesfor verifying the on receipt of self-certified downloaded copy
Transitional Credit videthiscircular. of thesamefrom theapplicant, whichever is
earlier. It isneedlessto mention that principles
Ver ification of theTr ansitional Credit of natural justice shall be followed in the
process of passi ng the order rel ati ng to
The jurisdictional tax officers can access the allowanceor disallowanceof theTransitional
TRA N-1/TRA N-2 f i l ed/revi sed by the Credit.
applicant on their back officesystems(which
is the CBIC-AIO portal for the central tax
off i cers, the respecti ve State portal f or
452 Ahmedabad Chartered Accountants Journal November, 2022
Thejurisdictional tax officer shall, onthebasis Fr om the Gover nments
of declaration made by the applicant in the
format specified inAnnexureA toCircular no. also betaken by thejurisdictional state/UT tax
180/12/2022 dated 09.09.2022, and on the officersin caseswheretheapplicant isunder
basisof dataavailableontheback officesystem, thejurisdictionof state/UT tax officer andwhere
shall check whether theapplicant had earlier thetransitional credit claimed hascomponent
filed TRAN-1/ TRAN-2 or not. In caseswhere of central tax also.
TRAN-1/ TRAN-2 had already been filed by
theapplicant earlier,thetax officer shall check Thejurisdictional tax officer shall, in parallel,
whether there is any change from the earlier continue the verification of the remaining
filed TRAN-1/TRAN-2 or not. In case, there portionof thetransitional credit at hisend.
is no change from the earlier filed TRAN-1/
TRAN-2, then such claim of transitional credit Thejurisdictional tax officer andthecounterpart
isliablefor rejection by thetax officer, through tax officer shall verify the transitional credit
areasonedorder,after providingduereasonable claimed under the CGST or the SGST head,
opportunity to theapplicant. as the case may be, by referri ng to the
guidelines detailed in Annexure I to this
In other cases, thejurisdictional tax officer shall circular for transitional credit pertaining to
proceed for verification of claim of transitional central tax and the guidelines issued by the
credit madeby theapplicant in FORM TRAN- relevant state/UT for verificationof transitional
1/TRAN-2. In thi s regard, i n respect of credit pertainingtotheStateTax/Unionterritory
transitional credit pertaining to central tax, he Tax, as applicable. While conducting the
may refer to the gui del i nes detai l ed i n verification, theofficermust alsocheck whether
Annexur e I to this circular. In respect of any adjudication or appeal proceedings in
verification of transitional credit pertaining to TRAN-1/TRAN-2 related matter arepending/
theStateTax/Union territory Tax,thetax officer concludedagainst theapplicant. In suchcases,
may refer to the guidelines issued by the where any adj udi cati on or appel l ate
relevant state/UT, if any. proceedings have been initiated against the
applicant in respect of TRAN-1/TRAN-2, the
There may be cases where the transitional officer should takeanoteof therelevant facts
credit claim filed/revised by theapplicant may in the notice/ order, and the grounds/reasons
havecomponentsof both central tax and state/ for inadmissibility of transitional credit,if any,
UT tax. In such cases, where the applicant is in thesaid notice/ order.
under thejurisdiction of central tax officer and
where the transitional credit claimed has I n respect of veri fi cati on done by the
component of state/Union Territory tax also, counterpart officer, after verification, he will
thejurisdictional central tax officer shall refer prepare a verification report, in the format
thesaid claim for verification of component of detailed in Annexur e-I I of this circular,
state/UT tax to his counterpart state/UT tax specifying the amount of transitional credit
officer. For thispurpose, heshall sharethelist which may be allowed to be credited to the
of GSTINs/ARNswiththecounterpart officer, electroniccredit ledger of theapplicant and the
inrespect of whichverification report isneeded amount whichisliablefor rejection, alongwith
from him, on a weekly basis, along with an detailed reasons/ grounds on which the said
intimation of thesame to thenodal officer of amount is liable to be rejected. Such duly
central tax as well as state/UT tax referred in signed verification report shall besent by the
Par a 6.1 below through hisofficial email ID counterpart officer to the jurisdictional tax
or physically. Similar action, as above, shall officer at theearliest, thoughgenerally not later
than ten days from the date of receipt of the
request from thejurisdictional officer. In case,
wheretheadjudication or appeal proceedings
Ahmedabad Chartered Accountants Journal November, 2022 453
Fr om the Gover nments transitional credit allowed to betransferred to
theelectroniccredit ledger of theapplicant and
in respect of TRAN-1/TRAN-2 related matter upload a pdf copy of the said order, on the
arepending/ concluded against theapplicant, common portal for crediting the amount of
thecounterpart officer shall categorically bring allowed transitional credit to the electronic
out the relevant facts in his/her verification credit ledger of theapplicant. Inany case, such
report al ong with his detai led findi ngs, order shall bepassedwithinaperiodof 90days
admi ssibili ty/ inadmissi bility, reasons of from 01.12.2022 i.e. up to 28.02.2023.
inadmissibility thereof and the copy of the
relevant noticeand/or orders. Where the amount credited to the electronic
credit ledger pursuant to the originally filed
For thepurposeof verification of theclaim of TRAN-1/TRAN-2 exceeds the amount of
the transitional credit, the jurisdictional tax credit admissibleintermsof therevisedTRAN-
officer aswell asthecounterpart tax officer, if 1/TRAN-2filed by theapplicant, such excess
required,may call for relevant recordsincluding credit isliableto bedemanded and recovered
requisite documents/returns/invoices, as the from the applicant, along with interest and
casemay be, from theapplicant. penalty, in accordancewith theprovisionsof
Chapter XV of theAct and therulesmadethere
After receiving theverification report fromthe under.
counterpart officer, thejurisdictional tax officer
shall decideupon theadmissibility of thecredit GSTN will also issue a separate advisory for
cl ai med by the appl i cant. I n case the entering the details on the portal by the tax
j uri sdi cti onal tax of fi cer fi nds that the officers.
transitional credit claimed by theapplicant is
partly or wholl y inadmissibl e as per the I t may be noted that consequent to
provisionsof theAct and therulesthereof, then reorganizationof thestateof Jammu& Kashmir
anoticeshall beissued by thejurisdictional tax and merger of the Union territories of Dadra
officer to the applicant preferably within a and Nagar Haveli & Daman and Diu, the
period of seven daysfrom thereceipt of report taxpayersof UT of Ladakh and theearlier UT
f rom the counterpart offi cer, seeki ng of Daman and Diu have been allotted new
explanation of theapplicant asto why thesaid GSTI Ns. Accordi ngl y, the taxpayers of
credit claimed by him should not be denied Ladakh and Daman and Diu can file/ revise
wholly/partly, asthecasemay be.Theapplicant TRAN-1/ TRAN-2 only through their newly
shall also be provided an opportunity of allotted GSTINs. It is, therefore, advised that
personal hearingby thejurisdictional tax officer theconcernedjurisdictional tax officersshould
in such cases. If required, thejurisdictional tax takeintoconsiderationtransitional credit,if any,
officer may seek commentsof thecounterpart claimedby suchtaxpayersunder their previous
officer on the submissi ons made by the GSTINs.
applicant insofar asthesaidsubmissionrelates
to thetax (central or State) being administered (For full text of cir cular , r efer Cir cular No
by such counterpart officer. 182 dated 10/11/2022)
After consideringthefactsof thecase, including I ncomeTax
verificationreport receivedfromthecounterpart
officer, submissionsmadeby theapplicant and 1) Cir cular r elating to Condonation of delay
thecomments, if any, of thecounterpart officer u/s119(2)(b) of theIncometax Act, 1961 in
on thesame, thejurisdictional tax officer shall filing of For m No. 10A
proceed to pass a reasoned order, preferably
within aperiod of fifteen daysfrom thedateof TheBoardhereby condonesthedelay upto 25/
personal hearing, specifying the amount of 11/2022 in filing form No 10A under sub-
454 Ahmedabad Chartered Accountants Journal November, 2022
clause (i) of clause (ac) of sub-section (1) of 79A Fr om the Gover nments
section12A / clause(i) of first provisiotoclause 80CCD
(23C) of section 10/ clause(i) of first proviso 80DD Noset off of lossesconsequent
to section 5 of section 80G / fifth proviso to to search, requi si ti on and
sub-section 1 of section 35 of theAct, which 80-IAC survey
was required to be made electronically on or 80LA Deducti on i n respect of
before31/3/2022. contri buti on to pension scheme
92CA of Central Government
(Refer Cir cular No 22/2022 dated 01/11/ 94 Deducti on i n respect of
2022) 115BAB maintenancei ncl udi ng medical
115BBD treatment of adependent who
2) Explanator y Notes to the pr ovisions of 115BBH isaperson with disability
financeAct,2022 115BBI Special provisionin respect of
115JC speci f i ed busi ness
Section Par ticulars 115JF Deducti ons i n respect of
115TD certain incomes of Offshore
of Income- 115TE Banki ng Uni ts and
115TF I nternati onal Fi nanci al
tax Act, 1961 119 ServicesCentre
132 Referenceto Transfer Pricing
2 Definitions Officer
10 Incomesnot included in total Avoidance of tax by certain
11 income transactionsin securities
Incomefromproperty heldfor Tax on i ncome of new
12A chari tabl e or rel i gi ous manuf acturi ng domesti c
12AB purposes. companies
13 Conditionsfor applicability of Tax on certai n di vi dends
14A sections11 and 12 recei ved f rom f orei gn
Procedurefor freshregistration companies
17 Section 11 not to apply i n Tax on Income from virtual
certai n cases digital asset
35 Expendi ture i ncurred i n Specified income of certain
37 rel ati on to i ncome not institutions
40 includibleintotal income Special provisionsfor payment
43B “Salary”, “perqui si te” and of tax by certain personsother
50 “profi ts i n l i eu of sal ary” than acompany
defined Interpretation in thisChapter
56 Expendi ture on sci enti fi c (Chapter XII-BA)
68 research Tax on accreted income
79 General I nterest payabl e f or non-
Amountsnot deductible payment of tax by trust or
Certain deductionsto beonly institution
onactual payment When trust or institution is
Special provision for cost of deemed to be assessee i n
acqui si ti on i n case of default
depreciableasset Instructions to subordinate
Incomefromother sources authorities
Cash credits Search and seizure
Carry forward and set off of
l osses i n case of certai n
companies
Ahmedabad Chartered Accountants Journal November, 2022 455
Fr om the Gover nments
132B A ppl i cati on of sei zed or 194-IB Payment of rent by certain
133A requi si ti oned assets i ndi vi dual s or Hi ndu
139 Power of survey 194R undi vi ded fami l y
140B Return of income Deductionof tax onbenefit or
143 Tax on updated return 194S perqui si te i n respect of
144 Assessment 201 businessor profession
144B Best judgment assessment 206AB Payment on transfer of virtual
144C FacelessAssessment digital asset
148 Referencetodisputeresolution 206C Consequences of failure to
148A panel deduct or pay
Issueof noticewhereincome 206CCA Speci al provi si on f or
148B hasescaped assessment deduction of tax at sourcefor
Conductinginquiry, providing 234A non-filersof income-tax return
149 opportunity before issue of 234B Profits and gai ns from the
153 noticeunder section148 239A businessof tradingin alcoholic
Prior approval for assessment, 245MA liquor, forest produce, scrap,
153B reassessment or recomputation 246A etc.
i ncertai n cases. 248 Speci al provi si on f or
155 Timelimit for notice collection of tax at sourcefor
156A Time limit for completion of 253 non-filersof income-tax return
158AA assessment, reassessment and 255 I nterest f or def aul ts i n
recomputation 263 furnishing returnof income
158AB Time limit for completion of 271AAB Interest fordefaultsinpayment
assessment under secti on 271AAC of advancetax
170 153A 271AAD Refundfor denyingliability to
170A Other amendments 271AAE deduct tax in certain cases
Modification and revision of 271C DisputeResolutionCommittee
179 noticeincertain cases. A ppeal abl e orders before
194-IA Procedure when in an appeal Commissioner (Appeals)
by revenue an i denti cal Appeal by a person denying
question of law is pending liability todeduct tax incertain
beforeSupremeCourt cases
Procedurewherean identical A ppeal s to the A ppel l ate
question of law is pending Tribunal
bef ore Hi gh Courts or Procedure of A ppel l ate
SupremeCourt Tribunal
Successi on to busi ness Revision of ordersprejudicial
otherwisethan on death to revenue
Effect of order of tribunal of Penalty wheresearchhasbeen
court in respect of business initiated
reorganisation Penalty in respect of certain
Liability of directorsof private income
company Penalty for falseentry, etc., in
Payment on transfer of certain booksof account
immovableproperty otherthan Benefitstorelated persons.
agricultural land Penalty for failuretodeduct tax
at source
456 Ahmedabad Chartered Accountants Journal November, 2022
Fr om the Gover nments
272A Penalty for failure to answer 278A Punishment for second and
questi ons, sign statements, 278AA subsequent offences
276AB furnish information,returnsor 285B Punishment not tobeimposed
276B statements, allow inspections, incertain cases
276CC etc. Submission of statements by
Failure to comply with the producers of cinematograph
provisionsof sections269UC, films or persons engaged in
269UE and 269UL speci fi ed acti vi ty
Failuretopay tax to thecredit
of Central Government under (For detailed cir cular r efer Cir cular No 23,
Chapter XII-D or XVII-B dated 03/11/2022)
Failure to furnish returns of
income hhh
Continued fr om page 442 Guj RERA Cor ner
(xi) Sometimesland owner istakenasapromoter constructedby theSociety withinthemeaning
on thepremisethat by providing hisland for of section 2(c) of MoFA [The Maharashtra
the proj ect, he causes the project to be OwnershipFlats(Regulationof thePromotion
constructed within the meaning of section of Construction, Sale, Management and
2(zk) of theAct. This isnot correct because Transfer)Act, 1963].Any other interpretation
only a promoter who i s responsibl e for would lead to anomalous consequences,
constructing the project can cause it to be which could never have been contemplated
constructed. In the case of Vaidehi Akash by MOFA. Theownersof landsentering into
Housing Pvt. Ltd. versus New D.N. Nagar agreements f or sal e or devel opment
Co-operativeHousing Society Union Ltd. & agreementswithpromoters/ developerswould
Others, theHon’bleBombay HighCourt,vide beheld asbeing subject [to] all liabilitiesof a
itsorder dated01.12.2014, hassettledtheissue promoter, such as liability of disclosure of
asunder: plansand specifications, outgoingsetc. under
section 3 of MOFA, entering into agreements
TheSociety istheowner of theproperty and i n accordance wi th secti on 4, gi vi ng
has entered i nto an agreement with the possessi on of f l ats and suf f eri ng the
developers, i.e.Vaidehi, for redevelopment of consequences of section 8, forming co-
its property. The redevelopment envisages operative societies of flat purchasers under
construction of the Society’s building to section 10, and so on. Thiswould beplainly
accommodate i ts members and al so inconceivable. Primafacie, thus, thereisno
construction of building/sof flats/premisesto caseto treat theSociety, who ismerely in the
besoldtooutsiders. Theagreement authorizes position of an owner vis-a-visthethird party
or entitles the developers to construct such purchasers, asa‘promoter’within themeaning
building/s and sell flats/premises therein to of MOFA and foist the obligations of a
outsiders. Such authority or entitlement isto promoter on the Society in relation to the
thedevelopers’account andintheir ownright, purchasers.
andasanindependent contractor.If inexercise
of such authority or entitlement, abuilding is hhh
constructed by the developers, it cannot be
said that such bui lding is caused to be
Ahmedabad Chartered Accountants Journal November, 2022 457
IT Corner
Getting theCharteredAccountancy profession CA. Rushabh Shah
futur e-ready [email protected]
TheCharteredAccountantsprofession ischanging. Pr ocessAut omat i on
The worl d around us i s changi ng, and our
profession must adapt. Thisblog post looksat key Automation isaway of reducing human error and
areaswhereaccountantscan focustheir energy to increasingefficiency intheaccountingprocess.This
future-proof their business. can beachieved by integrating automated systems
with existing manual ones or replacing manual
Digital Accounting processeswith digital solutions.
As a Chartered Accountant, you will be at the Automation plays a vital role in the future of
forefront of technology. It would be best if you accounting becauseit allowsyou to increasespeed
masteredthelatest technologiestostay relevant and and accuracy whilereducing costs. It also enables
competitive.Thismeansthat it isimperativefor you youtoscaleupwithout addingmorestaff members,
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embracethechangesthat occur within it. Automated reporting isalso beneficial asit allows
you to work on fewer projects at once and focus
Di gi tal accounti ng combi nes technol ogi cal onhigh-valuetaskslikeanalysingclient datainstead
advancementsand processchanges that can help of being bogged down by mundanemanual tasks
reducecostsassociated with paper-based processes, likedataentry.
such as storing documents or sending invoices
throughpostal mail, whileimprovingaccuracy and Cloud Computing
efficiency by automatingmanual tasks.
Cloud computing is the delivery of computing
Paper lessAccounting servicesover theInternet.
Paperless accounting is a way of storing and Cloud computing isInternet-basedcomputing that
processing accounting dataelectronically. Itsuse providesshared processing resourcesand datato
hasbeen growing recently, with many businesses computers and other devices on demand. By
adopting it to reducecosts, increaseefficiency and contrast, most i nformati on technol ogy (IT)
improve accuracy. While paperless accounting providersoffer aphysical accesstotheir computers
systemsarenot new, they havebecomeincreasingly and software. Theterm “cloud” refersto theInternet
sophisticated sincetheir initial introduction in the or WorldWideWeb, reflecting how cloud storage
2000s. enables users to access files through any web
browser rather than having to install specialised
Modernisedpaperlessaccountingsystemscan help softwareon each computer used in theprocess.
your businessmanageinformationmoreeffectively
thanever beforeby providinginstant accessto real- Althoughit wasinitially deliveredasanon-demand
timedatafrom anywhere- whether at homeor on self-servicehosting model, cloud computing now
thego – enabling you to makeinformed decisions covers a range of deployment models, such as
quickly so that you don’t miss out on critical private clouds behind firewalls, public clouds
financial opportunities. accessibleover theInternet, hybrid cloudswhere
part of the infrastructure is kept on premises,
internal cloudswhereoneorganisationusesanother
company’s infrastructure, multi-tenant systems
458 Ahmedabad Chartered Accountants Journal November, 2022
I T Cor ner
shared by many customers or even community thenumber of auditsrequiredandultimately ensure
cloudsowned by several organisationsin asingle that only thosewho should beaudited areaudited,
geographic area. thereby making it moreefficient for practitioners
and cli ents.
DataValidation & Analysis
Datavalidation istheprocessof ensuring that data Top Areas to Focus on for Future Readiness
isaccurateand consistent. It’soften used to ensure
that theinformationyou’reworkingwithiscorrect. Accountingfirmsthat want to stay competitiveare
For example, you mi ght use data val idati on focusing on thefollowing areas:
techniquestocheck aninvoicenumber against your - Digital accounting: Accounting firms must
customers’invoices database to ensure it hasn’t
al ready been paid. You could al so use these provi de cl i ents wi th a more automated,
techni ques when anal ysi ng sal es fi gures to streaml i ned process f or thei r chartered
investigatefurther anomalies. accountants. Thi s coul d i ncl ude onl i ne
administration of payroll and taxes or direct
On theother hand, dataanalysisinvolveslooking access through an API. Either way, digital
at how different piecesof information relateto one accountingisbecomingmorecritical than ever
another to draw conclusionsor their performance before.
over time. This may include comparing two data - Paperlessaccounting: Clientsdemandthat their
setsor lookingfor trendsamongst multiplevariables chartered accountants use less paper as they
(for instance, analysing salary risesover time). performauditsandother services— whichmeans
paperless technology is essential for staying
M oreFocuson Analytics competitiveintoday’smarket (especially if you
want your firm to beenvironmentally friendly
Analyticsisacrucial tool for improving business and sustainable). For example, when auditing
processes and driving value. Anal ytics helps documentsfromcompaniesthat useSalesforce
businessesin two ways: CRM softwarefor salesmanagement purposes,
- Toidentify insightsthat can beusedtoimprove it’sbest practicefor your teammembersnot only
downloadthesedocumentsbut alsouploadthem
businessprocesses.For example,youmight find back intoSalesforce, sothey’reavailableat any
out that customer servicerepsarespending too timewithnoextrawork requiredby either party
muchtimeonrepetitivetasksor that theaverage involved in thisprocess!
response time for customer queries is much - Pr ocessautomation: Firmscansavetimeand
longer thanexpected.Youcouldusethisdatato money by automatingprocessessuchasinvoice
redesignyour customerserviceprocess,reducing generationor tax filingsubmissions— that way,
employeestressandtimespent onrepetitivetasks they don’t worry about making mistakeswhile
whileincreasingoverall efficiency. performing these tasks manually each week/
- To i denti fy i nsi ghts rel ated to customer month/year.
experience, employee experience and other
aspectsof your businessthat impact thebottom Conclusion
line.You may discover patternsacrossvarious
company departmentsor at certaintimesof year All in all, the future of chartered accountancy is
(e.g., holidays) that indicateopportunitiesfor here, and it looksbright. Therearealot of exciting
improvement (or evenwarningsabout potential developmentsin thefield that you can get started
problems). with today. With digital accounting leading the
charge, paperless accounting following close
Automated Auditing behind andcloudcomputingprovidinganessential
platform for everything else, therehasnever been
Automatedauditingistheprocessof analysingdata abetter timeto makeyour businessmoreefficient
to fi nd anomal ies and errors. The Chartered and profitableby embracing thesetrends.
Accountancy profession needsto focuson thisto
stay relevant in the modern world. Automated hhh
auditingcanimprovetheefficiency of audits, reduce
Ahmedabad Chartered Accountants Journal November, 2022 459
Association
News
CA. Jay B. Parekh CA. Mayur H. Modha
Hon. Secretary Hon. Secretary
1. Upcoming Events.
Time Program Speaker Venue
3rd December, 2022 2nd Brain Trust Meeting on CA Jignesh Parikh ATMA
Auditorium
Saturday Issue under Capital Gain
31st December, 2022 Cricket Match President XI v/s - Sardar Vallabhbhai
Patel Stadium
Saturday Secretary XI (Navrangpura)
3rd January, 2023 52nd Residential Refresher CA Manoj Fadnis, Sheraton Grand
CA Jignesh Shah, Palace, Indore
Tuesday Course on 3rd - 6th January 2023. Eminent Faculty
2. Glimpses of previous events.
Time Program Speaker Venue
5th November, 2022 Diwali Get Together - Ratnamani Farm
Saturday and Party Plot,
Satellite - 380015
3. Picture gallery.
Glimpses of CAA, Ahmedabad participation at an OUTREACH PROGRAMME organised by
Income Tax Department for provisions of FRESH REGISTRATION in FORM 10A under new
regime of registration / approval of Charitable Institution under section 12AB / 80G / 10(23C) /
35 of the Income Tax Act, 1961.
460 Ahmedabad Chartered Accountants Journal November, 2022
Association News
Glimpsesof Diwali Get-together function dated 05-11-2022 at
Ratnamani Far m and Par ty Plot, Satellite.
hhh 461
Ahmedabad Chartered Accountants Journal November, 2022
462 Ahmedabad Chartered Accountants Journal November, 2022
Ahmedabad Chartered Accountants Journal November, 2022 463
ACAJ Crossword Contest - 18
Acr oss Down
1. Thesinglebest problemin ___________isthe
4. It isthe________of thereal estateproject that
illusion that it hastaken place. hastheresponsibility of registering theproject
with RERA Authority.
2. Section 209 of theIncomeTax Act dealswith
thecomputation of _________ tax payable. 5. ______________ ismanual of lifeprescribing
human beingshow to live.
3. If Parliament is temple of democracy then
electionsare_________ of democracy. 6. Deductionsunder incometax areto begranted
only when__________whichgovernthemare
strictly complied with.
Notes: Pr izeCour tesy
1. TheCrossword puzzleisbased on thisissueof
ACA Journal.
2. Two lucky winnerson thebasisof adraw will
beawarded prizes. Winner s of ACAJ Crosswor d Contest – 17
3. The contest is open only for the members of 1. CA. Ashwin Shah
2. CA. Mahavir Shah
Chartered Accountants Association and no
member is allowed to submit more than one
entry. ACAJ Crosswor d Contest 17 - Solution
4. M embers may submi t thei r repl y ei ther Across: Down:
physically at the office of theAssociation or 1. Forty 4. BlockChain
by email at [email protected] on or 2. ExcelSheet 5. Debited
before22-12-2022. 3. Six 6. PathtoPride
5. Thedecisionof Journal Committeeshall befinal
and binding. hhh
464 Ahmedabad Chartered Accountants Journal November, 2022