Ahmedabad Chartered Accountant Journal August, 2023 317 (C) Product development, testing & engineering activities related to OEM items. - Applicant has further submitted that the materials supplied by HAG are not substantial, viz consumables/capital goods including tools, reference material etc. They have also listed some items which were provided by HAG, which is mentioned in the agreement. They have also stated that the listed materials are imported from HAG to support faster execution, further stating that except for set plate, the rest of the items can be purchased in India - Sub-clause (3) of section covers the following viz l3 of the IGST Rules, 2017, primarily a) Under this sub-clause, services related to goods, which require such goods to be made available to the service provider or a person acting on behalf of the service provider so that the service can be rendered, are covered; b) Under this sub-clause, the goods temporarily come into the physical possession or control of the service provider because without this the service cannot be rendered. c) To fall under this sub-clause, the service involves movable objects or things that can be touched, felt or possessed. - The applicant, as is mentioned supra, provides [a] testing activities related to HAG items, specified in detail by HAG; [b] product development & engineering related to HAG items specified in detail by HAG and [c]product development, testing & engineering activities related to OEMs. In providing this service, it is the applicant’s say that some of the materials are being provided by the recipient, i.e. HAG. Further, the applicant is on record also states that a substantial amount of consumable/goods/capital goods are procured directly from third parties. What is interesting is also that these materials get consumed in the process of the said R&D activity as stated by the applicant. Thus we find that the parameter listed out in sub-clause 3, as mentioned above is not met viz that the prototype is developed by the Advance Ruling under GST applicant and is not supplied by HAG [recipient]. We find that it would not make much of a difference since what is supplied by the applicant is only some materials which go into making of the prototype and not the entire prototype. The question therefore that pops us is whether it would make a mark-able difference if the entire materials is supplied by the recipient (HAG in this case). Would it then put this supply under sub-clause 3 of the Section 13, ibid? We have no hesitation in answering that even in such a situation, since the prototype on which R&D is conducted and whose report is supplied to HAG is not being supplied by HAG, this service would not fall within the ambit of sub-clause 3 of section 13 of IGST Act, 2017 . - The supply of services would therefore fall under section 13(2), we have already concluded that it would not fall within sub-clauses 4 to 13. However, this would apply only in case of the services specified in (B) and (C). - A bare reading of (A) as mentioned prima facie depict that the testing activities related to HAG items - meaning thereby that the R&D service is performed on the goods provided by HAG and hence as far as this portion of the service is concerned, it would fall within the ambit of subclause 3 of section 13 of IGST Act - IGST is levied u/s 5(l) of the IGST Act, 2017 on all inter-state supplies of goods or services or both. Further, under section 7(5) of the IGST Act, 2017, supply of services wherein the supplier is located in India and the place of supply is outside India, will be treated as supply in the course of interstate trade or commerce. Thus IGST is payable unless the supply is ‘export of service’ - Supply of services by a subsidiary/sister concern etc. of a foreign company, which is incorporated in India under the Companies Act, 2013 to establishments of the said foreign company located outside India is not barred by section 2(6) of the IGST Act, supra from being considered as export of services since they are not to be treated as supply between merely establishments of distinct persons under explanation I of section 8 of IGST Act, 2017.
318 Ahmedabad Chartered Accountant Journal August, 2023 - Circular No. 161/17/2021-GST dated 20.9.2021 , wherein it is clarified as follows From the perusal of the definition of “person” under sub-section (81) of section 2 of the CGST Act, 2017 and the definitions of “company” and “.foreign company” under Section 2 of the Companies Act. 2013. It is observed that a company incorporated in India and a foreign company incorporated outside India, ore separate “person” under the provisions of CGST Act and accordingly, are separate legal entities. That, the subsidiary/ sister concern/ group concern of any .foreign company which is incorporated in India, then the said company incorporated in lndia will be considered as a separate “person” unless the provisions of CGST Act and accordingly, Would be considered as a separate legal entity than the foreign company - Therefore supply of services by a subsidiary / sister concern / group concern etc. of a foreigncompany, which is incorporated in India under the Companies Act 2013 (and thus qualifies as company in India as per Companies Act) to the establishments of the said foreign company located outside India (incorporated outside India). Would not be barred by the condition (v) of the sub-section (6) of the section 2 of the IGST Act 2017 for being considered as export of services, as it would not be treated as supply between merely establishments of distinct persons under Explanation 1 of section 8 of IGST Act 2017. Similarly. The supply .from a company incorporated in lndia to its related establishments outside India which are incorporated under the laws outside India would not be treated as supply to merely establishments of distinct persons under Explanation 1 of section 8 of IGST Act 2017. such supplies, therefore, would qualify as ‘export of services’, subject to fulfilment of other conditions as provided under subsection (6) of section 2 of IGST Act - Thus, applicant would fall under ‘export of service’, more so in view of the fact that allthe five conditions as enumerated under section 2(6) of the IGST Act,2017, are met (i) The applicant [being supplier of service] is located in India (ii) The recipient of service [HAG] is located outside India (iii) We have already held that the place of supply is the location of the recipient of service (iv) The applicant on record has stated in the application that the payment of the supply is received in foreign exchange (v) The supplier of service and recipient of service are not merely establishment of a distinct person in accordance with explanation 1 of section 8 Ruling 1) The services provided by the applicant to the entities located outside India is covered under Section 13(2) of the Integrated Goods and Services Tax Act, 2017 in respect of the services mentioned in (B) and (C). This is subject to the condition that the services supplied in respect of goods/prototypes which are required to be made physically available by HAG to the applicant. Further, in respect of the service listed in (A) , it does not merit to be covered under section 13(2), of IGST Act 2) The services provided by the applicant is eligible to be treated as a ‘zero rated supply ‘under Section 16 of the IGST Act, 2017 in respect of the services mentioned in (B) and (C). However service listed in (A) is subject to CGST and SGST. Remarks This is a very important judgment as far as Research Activity being done in India itself. If the physical goods are required and the activity is to be done on physical goods then the same shall not fall under interstate but would qualify as intrastate whereas even if the service of research is done and even if supplied to entity of the same group incorporated outside India then it would be leviable to IGST and also would be treated as Zero Rated Supply and can also be done against LUT. ❉ ❉ ❉ Advance Ruling under GST
Ahmedabad Chartered Accountant Journal August, 2023 319 MCA Updates: 1. Merger of multiple User IDs in V-2 Portal with new User ID in V-3 and Deactivation of old user ID in V-2 Portal: After coming to the notice of MCA about multiple user IDs, the MCA has decided that the members of the Three Institutes i.e., ICAI, ICSI and ICMAI, who have created multiple user IDs, or who are not able to create an ID due to existing ID may approach the respective institutes for any recommendations for merging, creating or deactivating the existing IDs. Necessary changes would be made based on the recommendations forwarded by the president or vice-president of the respective Institutes. [F. No. Egov-04/10/2021-O/o Director (e-Gov)- MCA dated 12.07.2023] SEBI updates: 2. The SEBI (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023: W. e. f. 03.07.2023, the SEBI (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023 have been notified. Vide these regulations, The ‘Dispute Resolution Mechanism’ has been inserted in various SEBI Regulationsby inserting the following: Dispute Resolution All claims, differences or disputes between a merchant banker and its client arising out of or in relation to the activities of the merchant banker in securities market shall be submitted to a dispute resolution mechanism that includes mediation and/ or conciliation and/or arbitration, in accordance with the procedure specified by the Board. CA. Naveen Mandovara [email protected] The above regulation has been inserted as under: Regulation Particulars of various No. Regulation(s) 28B The Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992 15B The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 14A TheSecurities and Exchange Board of India (Debenture Trustees) Regulations, 1993 59B TheSecurities and Exchange Board of India (Mutual Funds) Regulations, 1996 17A TheSecurities and Exchange Board of India (Custodian) Regulations 1996 14A The Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 14A TheSecurities and Exchange Board of India (Collective Investment Schemes)Regulations, 1999 16B The Securities and Exchange Board of India {KYC (Know Your Client) Registration Agency} Regulations, 2011 25 The Securities and Exchange (Substituted) Board of India (Alternative Investment Funds) Regulations, 2012 21(4) The Securities and Exchange (Substituted) Board of India (Investment Advisers) Regulations, 2013 Update
320 Ahmedabad Chartered Accountant Journal August, 2023 Regulation Particulars of various No. Regulation(s) 26A The Securities and Exchange Board of India(Research Analysts) Regulations, 2014 22A The Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 22A The Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 67(5) The Securities and Exchange (Substituted) Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 24A The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 22A The Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020 16A The Securities and Exchange Board of India (Vault Managers) Regulations, 2021 [F.No. ADVT.-III/4/Exty./247/2023-24 dated 03.07.2023] 3. Appointment of Director nominated by the Debenture Trustee on boards of issuers: Regulation 23(6) of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (NCS Regulations) obligates an issuerwhich is an entity registered under the Companies Act, 2013, to ensure that its Articles of Association requiresits Board of Directors to appoint as director, the person nominated by the debenture trustee(s). However, the SEBI has said that issuers coming under the following categories can submit an undertaking to the debenture trustees a nonexecutive / independent director / trustee / member of its governing body shall be designated as nominee director for the purposes of Regulation 23(6) of NCS Regulationsin consultation with the Debenture Trustee(s): 1. Issuers that are incorporated under different statutes / are also under the purview of other regulators have expressedinability to such amendmentsas the composition of their boardsis governed by certain statuteswhich do not provide for appointment of nominee directorsby Trustees. 2. Appointment of any director on the boards of certain issuers which are governed by certain statutes requires prior approval of the President of India. 3. Certain issuers are unable to appoint Nominee Directorson their boards as their principal document / charter does not provide for the same; in a few cases, the absence of a statutory mandate fetters them from amending their principal document. [Circular No. SEBI/HO/DDHS/POD1/P/CIR/2023/ 112 dated 04.07.2023] 4. Master circular for compliance with the provisions of the SEBI (ListingObligations and Disclosure Requirements) Regulations, 2015 by listed entities: The SEBI has prepared this Master Circular in order to enable the users to have access to the provisions of the applicable circulars, issued till June 30, 2023, at one place. The Master Circular provides a chapter-wise framework for compliance with various obligations under the LODR Regulations. For ease of reference, each chapter of this circular contains footnotes corresponding to the respective circulars. For, detailed text, please refer: SEBI | Master circular for compliance with the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 by listed entities [Circular No. SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated 11.07.2023] ❉ ❉ ❉ Corporate Law Update
Ahmedabad Chartered Accountant Journal August, 2023 321 Dispute Resolution under RERA Real Estate sector is one of the most important sectors in Indian context with respect to the demand and supply of the same, it is certain that disputes are bound to distrupt and overhaul the said industry in various facets of the basic institutionalisation of Real Estate business as a whole. To combat such disputes which range from being trifling to being that of much more incidental approach, it is the devoir of utmost importance for legal fraternity to embark upon the certain mechanism to combat such Disputes. In common place, dispute can be defined with utmost brevity as a Disagreement over the existence of a legal duty or right, or over the extent and kind of compensation that may be claimed by the injured party for a breach of such duty or right. One of the most ardent and paramount facet of law as a subject is to ensure social justice and civility amongst the society as a whole, to maintain a peaceful and merrier society it is supremely important for all the three pillars of Justice i.e. legislature, executive and judiciary and to ensure a staunch and effective mechanism for combating against Disputes and related conundrums which can be resolved by Dispute Resolution rather than the archaic method of litigation. Dispute resolution – Pre and Post RERA AFTAB SINGH V. EMAAR M.G.F. LAND LTD. & ANR. Facts of the case: The Petioners in this case were the allottes who had booked residential villas/flats/plots in Projects of the Builder (respondent). The said properties were to be developed in Gurgaon/Mohali and in reference to the same booking the complainants had executed Buyers’ Agreements. The Petioners alleged that the Builder had failed in delivering the possession of aforementioned villas/ flats/plots by the date committed in the Buyers Agreement and hence, they were seeking directions to the Builder for delivery and possession of the villas, etc. and/or, in the alternative, refund of the amounts deposited by them, along with compensation.17 The Respondent on the other side argued that due to the amendment done in Section 8 of the Arbitration Act, 1996 the tribunal grossly lacked jurisdiction in the said matter. This was based on the ground that Section 8 mandated that if primarily a valid arbitration agreement existed then the courts have to refer the parties to the arbitration, which, according to him, in present case was surely a mandate. It was contended by him that the amendment in 2016 was brought in to specifically to get rid of the jurisdiction of the courts and tribunals in such matters and limit the resolution of dispute only through arbitration and hence making it more mainstream. It is also very significant to mention here that the Arbitration Agreement in the present case was a standard form of agreement, which provided that there shall be a sole arbitrator who can be employee or the lawyer of the builder, and the allottee would have to trust into his impartiality and cannot raise doubts about the same. Held: - The Consumer Act is a special social legislation enacted to protect consumer rights, which establishes a level-playing field between unequal players, i.e. consumers and large Corporations, and is quite unlike other legislations that create dispute resolution mechanisms between level players. - By virtue of Section 2(3) thereof, the Arbitration Act itself excludes from its purview certain disputes, which fall within the public law regime and with CA. Manan Doshi [email protected] GujRERA Corner
322 Ahmedabad Chartered Accountant Journal August, 2023 GujRERA Corner respect to which statutory remedies are put into place to sub serve a public policy. Since consumer disputes would fall within the umbrella of the said provision, they were not intended to be covered by the amendment to Section 8 of the Arbitration Act. - The jurisdiction of the Consumer Forums to adjudicate upon consumer disputes is not affected by either Section 8 (as amended) of the Arbitration Act or by any other provision thereof. - To accept the plea of the Builder would be to set at naught the entire purpose and object of the Consumer Act, viz. to ensure speedy, just and expeditious resolution and disposal of consumer disputes. It was also held by the court that the amendment of Section 8 was intended only to curtail the scope of enquiry by courts into issues of existence of arbitration agreement in applications filed under Section 11 and Section 8 of the Arbitration & Conciliation Act. The judgment was further challenged by the respondents in the Supreme Court, where the honourable SC dismissed the appeal of Respondents. Thus as of now, the judgment given by the N.C.D.R.C. stands strong and continues to govern and regulate the matter, in terms of Arbitration, arising out of the consumer contracts. Key objectives of RERA: RERA primary aims are focused upon regulation and promotion of the real estate sector, ensuring transparency in the real estate project transactions in an efficient manner, safeguarding consumer interests and creating a customer-friendly environment along with a promising creation of a system, which provides for adjudicating the timely resolution of conflicts by distinguishing those brought within the authority of the Appellate Tribunal. Despite being at the incipient stage, it is reassuring to note that the decline in some of thetypical grievances, such as delays in delivery, false advertising, and incorrect charges for excess areas etc, can surely be witnessed. Some of the key objectives of RERA are as follows: 1. RERA establishes a centralized Real Estate regulatory authority, a specific adjudicatory authority, and a Central Advisory Council. Furthermore it also directs the States to create guidelines for controlling the real estate industry in compliance with the Act. 2. With the current act, the risk-bearing is transferred from Customers to Developers by including liability of promoters, builders, developers, real estate agents, etc. 3. The Act sets out a process for real-estate transactions in which the maintenance of a separate bank account for each project is compulsory, of which only 30% of the total may be appropriated. The remaining 70% will only be used for the same project. 4. Prior registration with the concerned authority is a must for any sale or advertisement of any real estate project, the same is permitted without Provision of mandatory disclosure of all project details, e.g. from all accounts, audits, and reports, etc., to details of the promoters, developers, agents, engineers, architects and approval authorities, etc., and published on a single website for real estate projects. 5. There is much clarity in reference to the rights, responsibilities and functions of all parties to the project. 6. Considerable decrease of malpractices, penalty provisions and penalties for offenses committed by promoters, real estate agents allotted persons and companies. 7. The Act supersedes all State legislation which is incompatible with the Central Act and also delegates the power to the Member States to draw up their own legislation on real estate in accordance with the Central Act. 8. RERA developed a timely grievance redressal medium. The commission’s regulator/adjudication officer has been empowered to investigate consumer or suo moto concerns regarding infringement of the Act. In addition to this, Real Estate Appellate Tribunal (REAT) is to be formed
Ahmedabad Chartered Accountant Journal August, 2023 323 to deal with appeals more quickly. A period of 60 days is specified for redressals. Instead of consumer forums/courts, where they are clubbed with several other consumer disputes, this would create a concentrated platform for real estate dispute redressal. One of the main goals of passing the Act was to establish a specialised agency to offer quick dispute resolution. This is due to the fact that consumer forums, despite being attentive to the interests of consumers, suffered from the backlog of Indian court cases. A lot of builders have taken advantage of this and devised a strategy of aggravating the consumer until they give up their legal claim or exhausting them to the point where they accept a meagre payment. The process would be lengthy, difficult, and taxing for the buyers because they would have to approach the district forum first, then the state forum, and eventually the National Forum. Most builders, especially those regarded as large conglomerates, recruited specialised legal counsels to design biased contracts, and as a matter of routine, added arbitration clauses to dissuade buyers from filing lawsuits, which served to exacerbate the problem. The Act also establishes rigorous deadlines (sixty days) for the Appellate Tribunal to decide appeals, which guarantees prompt remedy and minimises the wait time experienced before the consumer forums. The process for filing a complaint with the RERA is outlined inRule 34 of the Rules, while the process for filing a complaint with the AO (“Adjudicating Officer”) is outlined inRule 35 of the Rules. Given that Section 72 of the Act specifically outlines the considerations to be considered when determining the compensation, it is puzzling why the legislature would establish two distinct forums for such redress. The creation of several forums for the enforcement of such rights would unduly require addressing questions of jurisdiction and can undermine the law’s core goal, which is to assure swift justice. Overriding Effect of RERA over other Legislations: The provisions the Act states the following: Section 88: Application of other laws not barred.—The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force. Section 89: Act to have overriding effect.—The provisions of this Act shall have an effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force. Section 35 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI”) provides that the provisions under the said Act shall have the effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any suchlaw when ruling on the question of the applicability of RERA while SARFAESI Act is also activated. Section 89 contains a similarly worded provision that gives the RERA Act precedence. As said before, this Section states that the requirements of the aforementioned RERA Act shall be applicable despite any provisions that are conflicting with them in any other laws now in effect. The Maharashtra Real Estate Authority (“MahaRERA”) has decided in the case of Ganesh Lonkar v. DS Kulkarni Developers Ltd. that, despite the existence of an arbitration agreement between the parties, it has the authority to decide disputes that are covered by the arbitration agreement. The decision’s justification is built on two pillars. First off, as the legislature is assumed to be aware of all legislation it has passed, RERA would take precedence over the Arbitration and Conciliation Act of 1996 (“ACA”) because it was passed later. Second, section 89 of the RERA contains a nonobstante language that was explicitly included by the legislature. According to this, the RERA shall be in force despite any inconsistencies with other currently in force laws. Section 8 of the ACA, which requires a judicial authority to refer to arbitration matters that are covered by an arbitration agreement, is thus superseded by the provisions of RERA. As per the RERA Act, properties where the area of land proposed to be developed did not exceed five hundred (500) square meters or the number of apartments proposed to be developed does not exceed eight, the project need not be registered with Continued to page 335 GujRERA Corner
324 Ahmedabad Chartered Accountant Journal August, 2023 Summary: Fitch Ratings downgraded the United States of America’s Long-Term Rating to AA+ from AAA leading to increase in US treasury yields and sell off in US stock markets. There is a small note on credit rating agencies. Indian Indices hit all time high with Nifty 50 gaining 2.88% and Sensex gaining by 2.80%. The market capitalization of BSE-listed firms crossed Rs. 300 lakh Crore as investors continued to be bullish. Key M&A and Private Equity deals include demerger of Reliance industries and Jio Financial services, RIL’s financial services business and PE funds Tiger Global and Accel selling remaining stake in Flipkart to Walmart registering excellent gains. Economic Update: Fitch downgrades US Long term rating to AA from AAA - Fitch Ratings has downgraded the United States of America’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to’AA+’ from ‘AAA’. - While Fitch notes that several structural strengths underpin the United States’ ratings, including its large, advanced, well-diversified and high-income economy, supported by a dynamic business environment. Critically, the U.S. dollar is the world’s preeminent reserve currency, which gives the government extraordinary financing flexibility. - Rating Agency gave following rating drivers for the action. o Erosion of Governance: In Fitch’s view, there has been a steady deterioration in standards of governance as can beseen in repeated debtlimit political standoffs and last-minute resolutions. CA. Karan Vora [email protected] o Rising General Government Deficits: Fitch expects fiscal deterioration over the next three years with thegovernment deficit to rise to 6.3% of GDP in 2023, from 3.7% in 2022, reflecting cyclically weaker federalrevenues, new spending initiatives and a higher interest burden. o General Government Debt to Rise: Lower deficits and high nominal GDP growth has increased the debt-to-GDPratio to 112.9% this year, well above the pre-pandemic 2019 level of 100.1%. The debt-to-GDP ratio is projected torise over the forecast period, reaching to 118.4% by 2025. o Economy to Slip into Recession: Tighter credit conditions, weakening business investment, and a slowdown inconsumption will push the U.S. economy into a mild recession in 4Q23 and 1Q24, according to Fitch projections. o Fed Tightening: The Fed raised interest rates by 25bp in March, May and July 2023. Fitch expects one further hiketo 5.5% to 5.75% by September. Impact: · The Rating downgrade, even though anticipated by market, led to a selloff in the US markets as Dow closed 348 points, or 1%, lower in the next day trading session. The S&P 500 fell 1.4% and the NASDAQ dropped 2.2%. Mortgage ratesrose on the announcement of downgrade and the yield on 10 year US treasuries climbed. · The impact of news on India is unlikely as the macroeconomic picture of India is favorable due to strong growthmomentum, moderating inflation, growing domestic demand and good corporate earnings in recent times.
Ahmedabad Chartered Accountant Journal August, 2023 325 Capital Markets ICRA (Backed byMoody’s), India Ratings (backed by Fitch), CARE, Acuité, Brickwork* and Infomerics. Secondary Market Update: · Indian Indices hit all time high with Nifty 50 gaining 2.88% and Sensex gaining by 2.80% at 19,753.80 and 66,527.67respectively. The market capitalization of BSE-listed firms reached an all-time high of Rs 303.59 lakh Crore as investorscontinued to be bullish. · From the Sensex pack, State Bank of India, Wipro, Reliance Industries, HDFC Bank, Kotak Mahindra Bank, TechMahindra, IndusInd Bank and Asian Paints were the major gainers. · In July 2023, FPIs invested Rs. 47,977 Crores in the Indian market including equities, debt, debtVRR, and hybrid. Even though the FPI investment has been lower than June, they are on the path of recording the fifth monthly buying in the Indian market in a row. This marks the fifth consecutive month of net buying by FPIs in Indian stocks. From Jan, 2023 toJuly 2023, the overall market has seen an inflow of Rs. 141,325.46 Crores from FPIs. · On the other hand, a case is made for increase in India’s current sovereign rating (currently BBB-, lowest in investment grade rating) as India is fastest growing major economy and third largest economy from purchasing power parity. Credit Rating Agencies: · A credit rating agency (CRA) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt bymaking timely principal and interest payments and the likelihood of default. · Ratings play an important role in the borrowing costs of companies as banks and financial institution consider creditratings to determine the interest costs. · The global bond markets rely on credit rating agencies to issue ratings on debts. Big Three creditrating agencies —S&P, Moody’s and Fitch, though non-government, are given special status by the US market regulators. · In India seven rating agencies are recognized by market regulator SEBI: Crisil (backed by S&P), Equity Markets June-23 July-23 % Change BSE Sensex 64,718.56 66,527.67 2.80% Nifty 50 19,201.70 19,753.80 2.88% BSE 500 26,078.65 27,069.01 3.80% BSE Healthcare 25,814.46 27,736.45 7.45% BSE IT 29,876.56 30,276.57 1.34% BSE FMCG 18,690.49 18,986.42 1.58% BSE Metal 20,561.27 22,180.72 7.88%
326 Ahmedabad Chartered Accountant Journal August, 2023 Primary Market Update: There were 6 main board IPO in July, 2023 of Netweb Technologies,Utkarsh Small Finance Bank, Senco Gold, Cyient DLM, IdeaForgeTechnology, and HMA Agro Industries against 1 IPO in June, 2023. Allthe IPOs saw strong oversubscription. There were 6 SME IPOs in July,2023 as against 6 SME IPOs in June. Netweb Technologies Limited: About Netweb, with 20 years of experience, is a provider of servers, storage, back-up and HPC solutions that customizes the right technology blocks customized to the business requirements. Company’s turnover was Rs. 475 Crore in FY23 with profit of Rs. 47 Crore. Funds The proceeds from the offer for sale will Utilization be utilized for Funding the CAPEX of the company, repayments ofoutstanding borrowing of the company and General corporate purposes. IPO The Rs 631 Crore IPO had fixed a price Perfor- band of Rs 475-500 a piece valuing at mance PE of 55. The issue was over subscribed by more than 90.36 times. The company delivered astrong listing of Rs. 910.50, 89.40% over its issue price. Funds Mobilization by Corporates (Rs. In Crore) Particulars May-23 June-23 I. Equity Issues 9,677 5,905 a. IPOs (i+ii) 4,484 1,287 i. Main Board 4,326 607 ii. SME Platform 157 680 b. FPOs 0 0 c. Equity Rights Issues 2,790 192 d. QIPs/IPPs 350 1800 e. Preferential Allotments 2,054 2,627 II. Debt Issues 83,905 96,687 a. Debt Public Issues 0 539 b. Private Placement of Debt 83,905 96,148 Total Funds Mobilized (I+II) 93,583 1,02,592 Mergers and Acquisitions (M&A) and Private Equity (PE) key deals: M&A:Reliance Industries todemerge its financial services business into Reliance Strategic Investments. Transaction: · Jio financial services (JFS), demerged entity of Reliance Industries Ltd. (RIL), is set to be listed on the stock exchanges.The price of JFS’s share was discovered to be Rs. 261.85 in a special trading session on 20th July. · Earlier RIL announced in October 2022 that it would demerge and list its financial services business - Reliance StrategicInvestments - which will be renamed Jio Financial Services. About Reliance Industries Limited: · Reliance is India’s largest private sector company to be featured in Fortune Global 500 with a consolidated revenue ofINR 792,756 Crore ($104.6 billion) and net profit of INR 67,845 Crore ($9.0 billion) for the FY22. · Reliance’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), financial services, retail and digital services. About Jio Financial Services: · Reliance Strategic Investments Limited (RSIL; the resulting entity) is a wholly-owned subsidiary of RIL and an RBI registerednon-banking financial company (NBFC), which post demerger, will be renamed to Jio Financial Services. · The investment of RIL in Reliance Industrial Investments and Holdings Limited (“RIIHL”), which is a part of the financialservices undertaking of RIL, will stand transferred to JFSL. · Purpose of JFS is to provide capital to merchants and consumers (i.e. lending business) and incubate other financialverticals such as asset management, insurance, digital broking, payments etc. Capital Markets
Ahmedabad Chartered Accountant Journal August, 2023 327 Rationale: · Pursuant to scheme, shareholders of RIL will receive 1 equity share of JFL for 1 equity share of RIL. · The discovered price of JFS is the difference between RIL’s closing price of 2841 on July 19th and price of Rs. 2580 on thespecial trading session on July 20, leading to market cap of around Rs. 1.7 lakh Crore at the time of listing. · The price of JFS stock of Rs. 261.85 is much higher than analyst expectation of Rs. 170 to 190 due to investor expectations of future performance of JFS due to RIL Jio’s large consumer base. · JFS will become the third largest NFSC after Bajaj finance and Bajaj Finserve. · JFS and its subsidiaries plan to leverage the technology capability and nationwide presence of RIL’s consumer businesses. · JFS plans to launch consumer and merchant lending business based on proprietary data analytics to complement andsupplement the traditional credit bureau-based underwriting. JFS- Blackrock JV: · Jio Financial Services (JFS) has earlier joined hands with BlackRock to form Jio BlackRock, a 50:50 joint venture thatcombines the respective strengths of BlackRock and JFS to deliver techenabled access to affordable, innovative investment solutions for millions of investors in India. · Together, the partnership will introduce a new player to the Indian market with a combination of scope, scale, andresources. JFS and BlackRock are targeting an initial investment of $150 million each in the joint venture. PE: Walmart buys $1.4 Billion Tiger Global stake in Flipkart Transaction: · Tiger Global and Accel sold a remaining 5% stake in Flipkart to Walmart, as reported by various media outlets. · Flipkart was reportedly valued at $38 billion in the latest transaction, higher than valuation of $35 billion in 2022resulting into a highly profitable exit for both funds. About Flipkart: · Founded in October 2007, Flipkart, an Indian Ecommerce company, was initially focused on online book sales withcountry-wide shipping and slowly grew in prominence. · Flipkart has dominant position in apparel and mobile phone segments built by number of acquisitions like Myntra (US$280 Mn), PhonePe, Jabong (US$70 Mn), eBay.in, Arvind Youth Brands (US$35 million for 27% stake), Cleartrip etc. About Tiger Global: · Established in 2001, Tiger Global is an investment firm focused on public and private companies in the global Internet, software, consumer, and financial technology industries. About Walmart Inc.: · Established in 1962, Walmart Inc. is an American multinational retail giant that operates a chain of hypermarkets, discount department stores, and grocery stores in the US, headquartered in Bentonville, Arkansas. · Walmart’s acquired Flipkart for $16 billion in 2018 for a 77% stake. Rationale: · Flipkart has raised a total of $14.3B in funding over 27 rounds. Their latest funding was raised on Jul 31, 2023 from a Secondary Market round. · The total revenue in FY22 was Rs 43,357 Crore and the losses were reported to be Rs 2,445 Crore. Capital Markets
328 Ahmedabad Chartered Accountant Journal August, 2023 Tiger Global: · Tiger Global was one of the key investors in Flipkart. It had initially invested $8.6 million during Series B round in 2009 at a valuation of $42 million. Between 2010 and 2015, Tiger global invested $1.2 billion, as reported by Bloomberg. · Tiger Global sold part of its Flipkart stake to Softbank Group Corp in 2017 for approx. $1 Billion, followed by a nearly $2.5-billion sale to Walmart in 2018. · Tiger reportedly made total gain of US$3.5 Billion over the years from Flipkart, highest it generated from a single company globally. Capital Markets Accel: · Flipkart completed its first funding round from Accel India receiving US$1 million in funding in 2009. Accel held over 20% stake when they first invested in 2008. However, they gradually reduced their stake to around 6% by 2019. · Accel retained a small 1.1 percent stake after the acquisition by Walmart. Accel’s decision to exit has resulted in cumulative returns of an astonishing $1.5- 2 billion, showcasing a remarkable 25-30X return on their total investment of approximately $60-80 million over the years. Bansal’s: · While Sachin Bansal had already sold his stake to Walmart in 2018, Binny Bansal continued to hold around 2% in the company, which he has sold now. Acknowledgements: RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com) ❉ ❉ ❉ ‘Entrance Fees’ paid by a member of club are capital receipts: Principal CIT v/s. Royal Western India Ture Club Ltd (2023) 453 ITR 460 (SC) Issue: Whether the entrance fees received from a member by a club constituted capital receipts in the hands of club? Held: “When the Tribunal held that entrance fees paid by a member of the assessee club constituted a capital 50 Continued from page 291 From the Courts receipt in its hands, and the High Court dismissing the Department’s appeal, held that the facts and circumstances having been properly analysed and the correct test applied to decide the issue, no question of law arose, on a petition for special leave to appeal to the Supreme Court” The Supreme Court dismissed the petition. Decision of the Bombay High Court in Pr. CIT v/s. Royal Western India Turf Club Ltd. [2023] 450 ITR 707 (Bom) affirmed. ❉ ❉ ❉
Ahmedabad Chartered Accountant Journal August, 2023 329 PROPERTY, PLANT & EQUIPMENT ANNUAL REPORT -2021-2022 Samvardhana Motherson International Limited Property, Plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Capital works in progress are stated at cost, net of accumulated impairment losses, if any. Such cost includes expenditure that is directly attributable to the acquisition of the items and the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. The cost of self-generated assets comprises of raw material, components, direct labour, other direct cost and related production overheads. N R Agarwal Industries Limited The Company had applied for the one time transition exemption of considering the carrying cost on the transition date i.e. April 01, 2016 as the deemed cost under IND AS. Hence regarded thereafter as historical cost. Freehold land is carried at cost. All other items of property, plant and equipment are stated at historical cost, less accumulated depreciation and impairment, if any. Historical cost includes taxes, duties, freight and other incidental expenses related to acquisition and installation. Borrowing cost attributable to acquisition, construction of qualifying assets are capitalized until such time as the assets are substantially ready for their intended use. Indirect expenses during construction period, which are required to bring the asset in the condition for its intended use by the management and are directly attributable to bringing the asset to its position, are also capitalized. Subsequent expenditure on property, plant and equipment after its purchase/completion is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance. Property, plant and equipment acquired and put to use for the project are capitalized and depreciation thereon is included in the project cost till the project is ready for its intended use. All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred. An item of property, plant and equipment and any significant part initially recognized is de-recognized upon disposal or when no future economic benefits are expected from its use or disposal, any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the property, plant and equipment is de-recognized. CA. Pamil H. Shah [email protected] From Published Accounts
330 Ahmedabad Chartered Accountant Journal August, 2023 Capital work-in-progress comprises cost of fixed assets that are not yet ready for their intended use at the year end. The Company depreciates its property, plant and equipment (PPE) over the useful life in the manner prescribed in Schedule II to the Act. Management believes that useful life of assets are same as those prescribed in Schedule II to the Act, except for plant and equipment’s wherein based on technical evaluation, useful life has been estimated to be different from that prescribed in Schedule II of the Act. Useful life considered for calculation of depreciation for various assets class are as follows Building 30-60 Years Plant & Machinery 15-40 Years Furniture & Fixture 10 Years Office Equipment 3-5 Years Computers & Server 3-6 Years Vehicles 8 Years Freehold land is not depreciated. Lease hold land is amortized over the period of lease. Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as Capital Advances under other Non-Current Assets and the cost of assets not put to use before such date are disclosed under ‘Capital Work-in-Progress’. The cost and related accumulated depreciation are eliminated from the Financial Statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss. The method of depreciation, useful lives and residual values are reviewed at each financial year end. Depreciation on additions / deletions is calculated prorata from the month of such addition / deletion, as the case may be. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the Statement of Profit and Loss. From Published Accounts JBM Auto Limited Property, Plant and Equipment (PPE) are stated at cost of acquisition, net of accumulated depreciation and accumulated impairment losses, if any. The cost of tangible asset includes purchase cost (net of rebates and discounts) including any import duties and nonrefundable taxes, and any directly attributable costs on making the asset ready for its intended use. Freehold land is measured at cost and is not depreciated. Interest cost incurred on qualifying asset is capitalized up to the date the asset is ready for its intended use, based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings if no specific borrowings have been incurred for the asset where the funds used to finance a qualifying asset form part of general borrowings. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. The other repairs and maintenance of revenue nature are charged to the Statement of Profit and Loss during the reporting period in which they have incurred. Transition to IND AS On transition to Ind AS, the Company had elected to continue with the carrying value of its property, plant and equipment recognised as at April 01, 2016, measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment. Depreciation methods, estimated useful lives and residual value Depreciation is calculated using the straight-line method on a pro-rata basis from the month in which each asset is ready to use to allocate their cost, net of their residual values, over their estimated useful lives of the assets as prescribed in Schedule II of the Companies Act, 2013 except in respect of the following
Ahmedabad Chartered Accountant Journal August, 2023 331 assets where estimated useful life is determined as per management’s estimate based on technical advice which considered the nature of assets, the usage of asset, expected physical wear & tear: Property, Plant & Useful life based on Equipment technical evaluation Plant & equipment 15 - 20 Years Pallets, tools & dies 8 – 15 Years Furniture & fixture 3 – 10 Years Vehicles 3 – 8 Years Office equipment 3 – 5 Years Leasehold land Over the period of lease (Right of use assets) The assets’ residual values, estimated useful lives and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Gains and losses on disposal are determined by comparing proceeds with carrying amount and are credited / debited to profit or loss. Birla Cable Limited PPE are stated at cost, net of recoverable taxes, discount, government grants/subsidies and rebates, etc. less accumulated depreciation and impairment loss, if any. Such cost includes purchase price, borrowing cost and any cost directly attributable to bringing the assets to its working condition for its intended use. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. Spare parts in the nature of PPE are capitalised and depreciated over their remaining useful lives. Gains or losses arising from de–recognition of PPE is measured as the difference between the net disposable proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised. ❉ ❉ ❉ Continued from page 306 Controversies assets.Depreciation was allowed on the entire block of assets. Summation Decision taken in the case of ITAT Ahmedabad Bench’C’ Inductotherm (India) LTD. V. Deputy Commissioner of Income-Taxhas set the benchmark for key matter of this controversy. It was concluded that in order to claim depreciation, use of individual asset should be examined in the first year of purchase and in subsequent years, only block of asset needs to be considered. Depreciation of a part of a block asset neither can be allowed nor can be disallowed. The decision taken was supported by placing reliance on the decision of Tribunal, Patna Bench reported in the case of Parikh Engg. & Body Bldg. Co. Ltd. v. Asstt. CIT [1999] 69 ITD 207 (Pat). Referring and relying on the cases above, I humbly conclude by giving my opinion that wheresingle asset of a block is not used in the year under consideration depreciation is to be provided on the entire block ❉ ❉ ❉ From Published Accounts
332 Ahmedabad Chartered Accountant Journal August, 2023 CA. Kunal A. Shah [email protected] CA. Ashwin H. Shah [email protected] 2. Inserted a new clause (xiii) in sub – section (2) of section 56 to provide that where any sum is received, including the amount allocated by way of bonus, at any time during a previous year under a life insurance policy, other than the sum,- a. received under a unit linked insurance policy, or b. being the income referred to in clause (iv) of sub-section 2, which is not to be excluded from the total income of the previous year in accordance with the provisions of clause (10D) of section 10, the sum so received as exceeds the aggregate of the premium paid, during the term of such life insurance policy, and not claimed as deduction in any other provision of the Act, computed in the manner as may be prescribed shall be chargeable to income-tax under the head “Income from other sources”; III. Inserted a sub – clause (xviid) in clause (24) of section 2 provide that income shall include any sum referred to in clause (xiii) of sub-section (2) of section 56. (For full text refer Circular No.15 , dated 16/08/ 2023) 2) Notification relating to Amendment in Rule 11UACA - Computation of income chargeable to tax under clause (xiii) of sub-section (2) of section 56 In exercise of the powers conferred by clause (xiii) of sub-section (2) of section 56, read with section 295 of the Income tax Act, 1961 (43 of 1961), the Central Board of Direct taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:- INCOME TAX 1) Circular relating to Guideline under clause (10D) of section 10 of Income Tax Act Clause (10D) of section 10 of the Income-Tax Act, 1961 (the Act) provides for income-tax exemption on any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy subject to certain exclusions. The Finance Act, 2023 (Finance Act), inter-alia,- 1. Amended clause (10D) of section 10 of the Act by substituting the existing sixth proviso with the new sixth, seventh and eighth provisos to, inter-alia, provide that: (i) with effect from assessment year 2024- 25, the sum received under a life insurance policy, other than a unit linked insurance policy, issued on or after the 1st day of April, 2023, shall not be exempt under the said clause if the amount of premium payable for any of the previous year during the term of such policy exceeds Rs.5,00,000 [sixth proviso]; (ii) if premium is payable for more than one life insurance policy, other than a unit linked insurance policy, issued on or after 01.04.2023, the exemption under the said clause shall be available only with respect to such policies where the aggregate premium does not exceed Rs 5,00,000 for any of the previous years during the term of any of any of the policies [seventh proviso]; (iii) the sixth and seventh provisos shall not apply in case of any sum received on the death of a person [eighth proviso] From the Government
Ahmedabad Chartered Accountant Journal August, 2023 333 In the Income-tax Rules, 1962, after rule 11UAC, the following rules shall be inserted, namely;- “11UACA Computation of income chargeable to tax under clause (xiii) of sub-section 56. – for the purpose of clause (xiii) of sub-section (2) of section 56, where any person receive at any time during any previous year any sum under a life insurance policy, then, the income chargeable to tax under the said clause during the previous year in which such is received shall be computed in the following manner, namely:- (i) where the sum is received for the first time under the life insurance policy during the previous year (hereinafter referred to as first previous year), the income chargeable to tax in the first previous year shall be computed in accordance with the formula,- A-B where,- A = the sum or aggregate of sum received under the life insurance policy during the first previous year; and B = the aggregate of the premium paid during the term of the life insurance policy till the date of receipt of the sum in the first previous year that has not been claimed as deduction under any other provision of the Act; (ii) where the sum is received under the life insurance policy during the previous year subsequent to the first previous year (hereinafter referred to as subsequent previous year), the income chargeable to tax in the subsequent previous year shall be computed In accordance to the formula,-C-D where,- C = the sum or aggregate of sum received under the life insurance policy during the subsequent previous year; and D = the aggregate of the premium paid during the term life insurance policy till the date of receipt of the sum in the subsequent previous year not being premium which - (a) has been claimed as deduction under any other provision of the Act; or (b) is included in amount ‘B’ or amount ‘D’ of this rule in any of the previous year or years From the Government Explanation . – For the removal of doubts, it is clarified that the sum received under a life insurance policy would mean any amount, by whatever name called, received under such policy which is not to be excluded from the total income of the previous year in accordance with the provisions of clause (10D) of section 10, other than the sum - (a) received under a unit linked insurance policy; or (b) being the income referred to in clause (iv) of sub-section (2) of section 56.”. (Notification No. 61, dated 16/08/2023) 3) Notification relating to Amendment in Rule 26 – Rate of exchange for the purpose of deduction of tax at source on income payable in foreign currency In exercise of the powers conferred by section 295 of the Income-tax Act 1961 (hereinafter referred to as ‘Act’ ), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely: - Rule 26 - Rate of exchange for the purpose of deduction of tax at source on income payable in foreign currency . - For the purpose of deduction of tax at source on any income payable in foreign currency, the rate of exchange for the calculation of the value in rupees of such income payable - (i) to an assessee outside India; (ii) to a Unit located in an International Financial Services Center; (iii) by a unit located in an International Financial Services Center to an assessee in India, shall be the telegraphic transfer buying rate of such currency as on the date on the tax is required to be deducted at source under the provisions of Chapter XVIIB by the person responsible for paying such income. (For Full text refer Notification no. 64, dated 17/08/2023) ❉ ❉ ❉
334 Ahmedabad Chartered Accountant Journal August, 2023 Move over ChatGPT - know these tools too! More than anything, the last month was exceptional for us as the Information Technology Committee, where we could launch our initiative “Tech-Tuesdays”, encompassing various tools which may help our professional journey. A special mention of this goes to CA Margik Doshi, the pioneer behind this initiative. This month’s IT Corner is a continuation of the same concept, and we shall be discussing some of the best tools available today which may be helpful to us in one way or another. For most of us, the advent of Artificial Intelligence has been the advent of ChatGPT. Moreover, Google announced its competitor, GoogleBard, another known tool for us. But are these the only tools available in the market? Certainly not, and hence, here is a list of some tools you may consider using for yourself (personally and professionally). tl;dv (take meeting notes during online meetings) tl;dv is revolutionising the way you manage calls and meetings using AI, offering powerful features to enhance your experience: 1. Transcription Services: Available for Google Meet and Zoom, tl;dv transcribes your calls with customers, prospects, and your team, ensuring that every word is captured without manual notetaking. 2. Tagging Key Moments: It identifies and tags essential moments within the call, allowing you to quickly reference critical details, decisions, or action items, streamlining your follow-up process. 3. Summarization: Besides transcription, tl;dv provides concise summaries of your calls, CA. Rushabh Shah [email protected] extracting the main takeaways to offer a snapshot of the meeting’s highlights. Integrating these features seamlessly into your existing platforms, tl;dv simplifies the communication process, allowing you to focus on what truly matters in your conversations. Link: https://tldv.io/ Wonderchat (Instantly build ChatGPT-powered chatbots trained on website links or PDF files) Share your site link or upload any PDF file to create a ChatGPT-powered custom chatbot in 5 minutes. 1. Instant Chatbot Creation with ChatGPT: Wonderchat allows you to harness the power of ChatGPT to create customised chatbots instantly. Integrating state-of-the-art AI technology enables intelligent and human-like interactions, enhancing user engagement. 2. Training on Website Links or PDF Files: With Wonderchat, building a chatbot is as simple as sharing a link to your website or uploading a PDF file. The platform extracts relevant information and trains the chatbot to respond to queries based on the content provided, ensuring the responses align with your specific needs and information. 3. Rapid Deployment in 5 Minutes: Time is of the essence, and Wonderchat delivers. You can create a ChatGPT-powered custom chatbot in just 5 minutes, allowing you to quickly implement a responsive and intelligent communication tool on your platform without any technical hassle. Wonderchat represents a significant advancement in chatbot technology, making it accessible and convenient for anyone to implement AI-powered communication tools. Its user-friendly design and robust capabilities provide a streamlined solution for
Ahmedabad Chartered Accountant Journal August, 2023 335 engaging users and delivering personalised, efficient interactions. Link: https://wonderchat.io/ Mighty Travels (Uses AI to find super cheap prices for flights and hotel rooms that could save you a lot of money. It even finds top-class flight seats and hotel room deals that may have pricing mistakes) This is a paid platform where you get the best airfare offers you will not find anywhere else to the best destinations! AI and human intelligence will save you up to 90% on airfare tickets and hotels (including Business Class/ First Class error fares and hotel mistake rates worldwide)! IT Corner Mighty Travel provides your AI-powered travel assistant with thousands of detailed travel itineraries and destination guides. This is a paid platform; hence, after registration, you can immediately access all the fares in the dashboard, and they will send you real-time email alerts anytime a great airfare offer appears. Never miss a great airfare offer again! Link: https://www.mightytravels.com/ The tools above will surely be of some use or the other for a lot of us. ❉ ❉ ❉ Continued from page 323 GujRERA Corner RERA. This was upheld in the case of Geetanjali Aman Construction v. Hrishikesh Ramesh Paranjpe where two homebuyers complained that the developer had not registered the ongoing project with RERA, the construction company filed a petition with the MahaRERA Appellate Tribunal to challenge the decisions made by RERA. According to state RERA regulations, the developer must pay a fine equal to 3% of the project’s cost. Later, the developer requested a review of the order due to issues with the project’s location and the number of apartments. As there were more than eight apartments, the RERA enforced an extra fine until the project was registered. Upon approaching the Tribunal, it invalidated both of the orders, holding that one need not register the housing project with RERA if any of the two criteria is satisfied. According to the SC’s ruling inBooz Allen, rights relating to RERA violations would be regarded as rights in rem because the builder’s breach would have an impact on all buyers and not just one particular buyer. The breach would also fall under the purview of real estate sector regulation and oversight, affecting the general public. On the other hand, the compensation claim under RERA Sections 12, 14, 18, and 19 read with Section 71 would come under the category of rights in personam. As a result, arbitration is not an option for RERA violations, but it is an option for compensation claims. ❉ ❉ ❉
336 Ahmedabad Chartered Accountant Journal August, 2023 CA. Mayur H. Modha Hon. Secretary CA. Prakash B. Nandola Hon. Secretary Association News 1. Glimpses of Previous events. Day & Date Program Speaker Venue Friday, 4th 4th Meeting of Indirect Study Group CA. Yash Shah CAAA Office, August,2023 2023-24 on “Recent Amendments in GST” 201, 2nd Floor Darshak Building Saturday, 5st 2nd Brain Trust on “Audit enlightenment: CA. Kaushik C. Patel ATMA Hall, August,2023 exploring statutory compliances under Ashram Road, Companies Act 2013 & CARO 2020” Ahmedabad Monday, 7th Tree Sapling Plantation Drive Jointly - Parking Plot August,2023 with Ahmedabad Branch of WIRC of ICAI Jodhpur Swimming Pool & Gymnasium, AMC, Jodhpur, Ahmedabad Tuesday, 8th Workshop on automated accounts CA. Rohit Maloo CAAA Office, August,2023 preparation through Tally 201, 2nd Floor Darshak Building Tuesday, 15th Independence Day Celebration Jointly - 123, Sardar Patel August,2023 with Ahmedabad Branch of WIRC of ICAI Colony, ICAI and Ahmedabad Branch of WICASA of ICAI Bhavan Ahmedabad. Wednesday, 23rd Talent Evening - Tagore Hall, August,2023 Paldi, Ahmedabad Friday, 25th Outreach programe by CIT (Exemption), - Aykar Bhavan, August,2023 Ahmedabad Vejalpur, Ahmedababad. Monday, 28th Seminar on Nurturing Mental Wellness for a Ms. Trapati Gandhi 123, Sardar Patel August,2023 Balanced Life Jointly with the Dr. Darshana Thakker Colony, ICAI Ahmedabad Branch of WIRC of ICAI and Bhavan Rotary club Ahmedabad. 2. Forthcoming Event Day & Date Program Speaker Venue 8th January 2024, 54th Residential Refresher To be Announced Hotel Hyatt Regency Monday Course Nepal - The Land of Himalayas. Kathmandu, Nepal Hotel Hyatt Regency Kathmandu, Nepal from 8th January 2024 to 12th January 2024
340 Ahmedabad Chartered Accountant Journal August, 2023 Across 1. The Information Technology Committee of the CA Association has started with a new initiative called _________________. 2. JIO Financial Services has joined hands with ______________ in a joint venture. 3. _____________ means a mark capable of being represented graphically and which is capable of distinguishing the goods or services of one person from those of others and may include shape of goods, their packaging and combination of colors. ACAJ Crossword Contest - 27 ❉ ❉ ❉ Notes: 1. The Crossword puzzle is based on this issue of ACA Journal. 2. Two lucky winners on the basis of a draw will be awarded prizes. 3. The contest is open only for the members of Chartered Accountants Association and no member is allowed to submit more than one entry. 4. Members may submit their reply either physically at the office of the Association or by email at [email protected] on or before 20-09-2023. 5. The decision of Journal Committee shall be final and binding. Prize Courtesy Winners of ACAJ Crossword Contest – 26 1. CA. Prakash Sheth 2. CA. Shailesh Pujara ACAJ Crossword Contest 25 - Solution Across: Down: 1. Proviso 4. Pharmacy 2. Talent Evening 5. Opinions 3. Computer 6. ONDC Down 4. The 54th RRC of CA Association is to be held in ___________________. 5. Updated return cannot be filed in case of _______________. 6. RERA primary aims are focused upon regulation and promotion of ____________ sector. 6 1. 2 4 5 3