AHMEDABAD ICAI-NEWS LETTER MONTH OF OCTOBER-2017

The Institute of Chartered
Accountants of India

(Set up by an Act of Parliament)

AHMEDABAD BRANCH
OF WIRC OF ICAI

e-

MANAGING COMMITTEE

COMMITTEE MEMBERS Chairman’s Message
EX-OFFICIO MEMBERS
Dear Members,
EDITORIAL BOARD
MEMBERS Wishing you Happy Diwali. May the divine light of Diwali shine
with Peace, Prosperity, Happiness and Good Health in your
Life!

Post implementation of GST, there are technical and system
related issues faced by the members. To address this, the branch
has collated the issues faced by members and forwarded the same to Indirect Tax
Committee, ICAI for further representation to CBEC. During the month, special
sessions on GST Impact on Chartered Accountants profession, Reverse Charge
Mechanism, GST Compliance withTally were also organized.

As a Partner in Nation building to support the government in all regulatory and other
economic developments of the country, the branch has organized seminars / open
house jointly with government authorities and other professional/Industry associations.
The open house interaction on Benami Property Transactions was arranged jointly with
GCCI where Principal Chief Commissioner of Income Tax (Gujarat) Shri P. C. Mody
and Shri Amit Jain, Principal DIT (Inv) and other income tax officials were present.

Real Estate Regulation (Regulation and Development) Act, 2016 (RERA) has been
implemented from 1st July, 2017 that brings significant transparency and accountability
in real estate projects. The open house INTERACTIVE SESSION with RERA
AUTHORITIES jointly with other professional bodies was organized on 14.09.2017 at
BHAIKAKA BHAVAN. The Gujarat RERA Chairperson Dr. Manjulaben Subramaniam
alongwith other officials Shri K.L. Bachani - Secretary, Guj. RERA, Shri Ghanshyam
Pathak, Dr. Vatsal Patel were present during the session to response the queries of the
participants.

We are committed to ensure the best infrastructure and other facilities for members
and students. The branch has forwarded the detailed proposal of state of art

insideWhat’s Editorial 2 Income Tax Updates 3 Motivational Corner 4 Accounting & 6 RERA Updates 8
GST Updates 3 International Taxation Company Law Updates Forth Coming Program 9
Photo Gallery 10
4 Quick Connect 5 IT Updates - Lets excel 7

in excel !

AHMEDABAD BRANCH OF WIRC OF ICAI

infrastructure for new Building to Infrastructure Committee, ICAI for perusal. In addition, during the monththe
renovation work is commenced at ground floor, ICAI run coaching classes and other part of the building to provide the
best facilities to the members and students.
The due date of Tax audit report filing has been extended till 31st October 2017, giving sigh of relief for Chartered
Accountants practitioners in the busy compliance season. The seminar on ICDS Reporting in Tax Audit report and
Deduction u/s 80JJAA of Income Tax Act were organised.

The month was ended with prayer to the Goddess of Power and Garba as Navratri Celebration at Navdeep Hall ground
on 30th September, 2017.

The untimely and sudden death of Pallavi, daughter of president of The Institute of Chartered Accountants of India,
NileshVikamsey was a really saddening. Our prayer to God to give the courage to Vikamsey family in this tough
situation.

Revision series for the students was organized for IPCC and Final students. Also Residential Refresher Course (RRC)
for students on Inner Happiness was organized at Abu Road.

May New Year bring many opportunities your way to explore every joy of life! May your resolutions for the days ahead
stay firm turning allyour dreams into reality and all your efforts into great achievements!

Happy To Serve,
CA. Chintan N. Patel
CHAIRMAN

Editorial

Dear Members,
After receiving a wonderful response to the September edition of our Newsletter, it
gives me immense pleasure to share the October edition on the theme of “Diwali” and
“Swachh Bharat Abhiyaan”. Though this year the hectic tax audit & GST season is
extended to October, this month it is also time to sit back and enjoy Diwali with our
family! Also by observing an environment friendly Green Diwali, we as citizens of this
country, can make our little contribution towards the society, the environment as well
as Swachh Bharat Abhiyan. We need to be an active part of the Swachh Bharat
campaign for it to become effective on a nation-wide level. We are the nation and like
Mahatma Gandhi rightly said, we should be the change we wish to see inthe society!

I would like to take this opportunity to sincerely thank all the contributors for sending the updates and sparing their
precious time for the cause of the profession. In order to make the newsletter more resourceful, we need your support
by way of contributionof updates, useful suggestions, etc. I would request you to send your contributions on the topics of
Direct Taxes, GST, Corporate Law, Information technology, Indian & World economy and other interesting topics.
Kindly email your contributions, achievements etc. on [email protected]. The editorial team will publish the best
contribution at its own discretion. I extend my sincere gratitude to the Editorial team for their hard work to publish this
newsletter in time.

I take this opportunity to wish all my colleagues, members, students and their families a very Happy Diwali. May the
festivalof lights fill everyone's lives with happiness, joy, peace and prosperity.

Happy Reading!

CA. Harit Dhariwal
Chairman, Newsletter Committee

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Vol. No. 5 | Issue No. 7 | October 2017

GST Updates namely, reduction is not confined to one of the
aforesaid two sub-clauses and it can occur under
(Contributed by CA. Monish S. Shah) both these provisions. It is rightly pointed out by the
appellant State that these are event based sub-
Important Judgements: clauses and two events are totally different -
Therefore, even if the taxable goods are used as raw
1. In case of SHOLINE V. COMMISIONER OF SERVICE material in the manufacture or in the packing of
TAX (CIVIL APPEAL NO. 10214 OF 2017 DTD 10-08- goods but they are consumed or sold within the State,
2017) Circular for waiver of tax in pending disputes. sub-clause (ii) would not apply. On the other hand,
Benefit not available to person who filed appeal sub-clause (iii) is referable to only fuels which are
subsequent to circular. However, levy of interest and used for manufacture of goods. It is, thus, a totally
penalty can be removed. separate category and the moment fuel is used in the
manufacture of goods, this sub-clause gets attracted
2. In case of State of Gujarat Vs Reliance Industries and it would be immaterial whether the goods are
Limited ( CIVIL APPEAL NO. 13049 OF 2017 DTD 22- sold within the State or outside the Sate - reduction of
09-2017) Gujarat Value Added Tax Act, 2003 – 4% would be applied whenever a case gets covered
Section 11(3) – Input Tax Credit – proportionate by sub-clause (ii) and again when sub-clause (iii) is
reduction in input tax credit in case of sale in course attracted - This, however, would be subject to one
of inter-State and commerce and branch transfer - limitation. In those cases where VAT paid on such raw
Assessing Officer view that in respect of inter-State material is 4%, reduction cannot be more than that -
sale and branch transfer the tax credit is required to Therefore, if some reduction is to be made from the
be reduced at the rate of 4% under sub-clause (ii) and said credit, it cannot be more than the credit given –
again at the rate of 4% under sub-clause (iii) of the High Court order is quashed and the revenue appeals
Section 11(3) – Tribunal and High Court held that the are allowed.
deduction can be at 4% only and there cannot be
double reduction in admissible tax credit -revenue Interpretation: So now if the fuel was more than 8%
appeal against High Court order – HELD - there is no then double deduction of 8% on amount fuel use for
word 'or' used between clauses (ii) and (iii) in the manufacturing goods sent for branch transfer.
Section 11(3) (b). Sub-clause (ii) finishes with the However if the fuel falls under 5% category then only
punctuation mark full stop and then sub-clause (iii) 4% reduction is allowed.
starts. This depicts the intention of the Legislature,

Income Tax Updates B. Draft Notification for creating a mechanismof self

(Contributed by CA. Nirav Choksi) reporting of estimates of income – Rule 39A,

A. TDS on Interest on deposits under Capital Gains Form 28AA – DRAFT NOTIFICATION
Accounts Scheme, 1988 where the depositor has [F.NO.370142/27/2017-TPL], DATED 19-9-2017
deceased – Notification No. 08/2017 dated 13th
September, 2017 A new rule 39A is proposed to be inserted which will
be applicable to companies and tax audit cases,
The Board has issued guideline for deduction of TDS whereby they will have to make a self reporting of
on Interest on deposits under Capital Gains Accounts estimates of current income, tax payments and
Scheme, 1988 where thedepositor has deceased. advance tax liability. The draft is available for
comments of the public.
http://www.incometaxindia.gov.in/communications
/notification/notification8_2017_tds.pdf http://incometaxindia.gov.in/Lists/Latest%20News
/Attachments/188/Draft-Notification-Rule-39A-20-
9-2017.pdf

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AHMEDABAD BRANCH OF WIRC OF ICAI

International Taxation Income Tax Appellate Tribunal also sustained the finding
of the Assessing Officer, rejecting contention of the
(Contributed by CA. Nirzari Shah) assessee that the said income was exempted, having
been received from outside India in foreign currency. The
SMT. SUMANA BANDYOPADHYAY & ANR VS. DDIT basic reasoning of the Revenue for including the
aforesaid sum to income chargeable to tax was that the
[2017] GA 3745 Of 2016 with ITAT 374 of 2016 said sum was received by him in the NRE account directly
from his employers and this constituted receipt of the
[CALCUTTA HIGH COURT] said sum in India.

ISSUE: Aggrieved assessee filed an appeal before Calcutta HC

Whether salary received in NRE account will be taxable HELD:
in India on receipt basis despite services rendered
outside India? Calcutta HC noted that Revenue argued that the salary
was received by the assessee in the NRE account directly
FACTS: from his employers and this constituted receipt of the
said sum in India. Revenue contended this attracted
The assessee was a marine engineer and the subject of Section 5(2)(a).
dispute of this appeal is taxability of a substantial portion
of his income earned during the previous year relevant to HC accepted assessee's reliance on past cases, where it
the assessment year 2010-11. The total sum involved is was held that salary earned by NR for services rendered
Rs.14,79,598/-, and this was earned by the appellant as outside India cannot be said to be deemed to accrue or
salary from two concerns, Great Offshore Limited and arise in India u/s 5(2)(b).
Bibby Ship Management (Singapore) Pte. Ltd. The
appellant in his return had declared total income of HC opines that the interpretation given by the Karnataka
Rs.3,95,099/-. The aforesaid sum was added to his HC to section 5(2)(b) would also apply to Section 5(2)(a).
disclosed income in scrutiny assessment. Admitted The criteria of applying the definition of section 5(2)(b)
position is that during that year, the assessee had the would be such income which is earned in India for the
status of non-resident under Section 6 of the Income Tax services rendered in India and not otherwise.
Act, 1961.
HC relied on CBDT Circular No. 13/2017 issued by
The assessee had received the said sum from his two Ministry of Finance on April 11, 2017 which provides that
employers in a Non-Resident (external) bank account, salary accrued to a non – resident seafarer for services
commonly referred to NRE account. rendered outside India on a foreign going ship shall not
be included in total income merely because such salary
Under Scrutiny assessment, the salary income was was credited to NRE account in India. HC stated that the
added to assessee's income with the reason that the sum Circular was clarificatory in nature and applicable for
was received by him in the NRE account directly from his construing, the provisions for the relevant AY.
employers and this constituted receipt of the said sum in
India. HC thus ruled in assessee's favour.

The appeal of the assessee against the aforesaid order
failed before the Commissioner of Income Tax and the

Motivational Corner ! One day, he felt someone tugging at his jacket. He turned
around and saw a little boy who asked, "If you release a
The story of a balloon seller.... black balloon, would that also fly?" Moved by the boy's
There was a man who made a living selling balloons at a concern, the man replied with empathy, "Son, it is not the
fair. He had all colors of balloons, including red, yellow, color of the balloon, it is what is inside that makes it go
blue, and green. Whenever business was slow, he would up."
release a helium-filled balloon into the air and when the The same thing applies to our lives. It is what is inside that
children saw it go up, they all wanted to buy one. They counts. The thing inside of us that makes us go up is our
would come up to him, buy a balloon, and his sales would ATTITUDE!! So remember - good and positive attitude is
go up again. He continued this process all day. the key to every approach.

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Vol. No. 5 | Issue No. 7 | October 2017

Quick Connect applicable in the State in which the bond is being
furnished.
(Contributed by CA. Rahul Maliwal)
d) Documents for LUT:
Clarification on issues related to furnishing of
Bond/Letter of Undertaking for exports Ø Self-declaration to the effect that the conditions
of LUT have been fulfilled shall be accepted
a) Eligibility to export under LUT: unless there is specific information otherwise.

Ø The facility of export under LUT has been now Ø That is, self-declaration by the exporter to the
extended to all registered persons who intend effect that he has not been prosecuted should
to supply goods or services for export without suffice for the purposes of Notification No.
payment of integrated tax except those who 37/2017- Central Tax dated 4th October, 2017.
have been prosecuted for any offence under Verification, if any, may be done on post-facto
the CGST Act or the Integrated Goods and basis.
Services Tax Act, 2017 or any of the existing
laws and the amount of tax evaded in such e) Time for acceptance of LUT/Bond:.
cases exceeds two hundred and fifty lakh
rupees It is clarified that LUT/bond should be accepted
within a period of three working days of its receipt
Ø Earlier it was available to status holder as along with the self-declaration by the exporter. If the
specified in paragraph 5 of the Foreign Trade LUT / bond is not accepted within a period of three
Policy 2015-2020 or to persons receiving a working days from the date of submission, it shall
minimum foreign inward remittance of 10% of deemed to be accepted.
the export turnover in the preceding financial
year which was not less thanRs. one crore. f) Bank guarantee:

b) Validity of LUT: Since the facility of export under LUT has been
extended to all registered persons, bond will be
The LUT shall be valid for the whole financial year required to be furnished by those persons who
in which it is tendered. have been prosecuted for cases involving an
amount exceeding Rupees two hundred and fifty
c) Form for bond/LUT: lakhs. A bond, in all cases, shall be accompanied
by a bank guarantee of 15% of thebond amount.
Ø Till the time FORM GST RFD-11 is available on
the common portal, the registered person g) Realization of export proceeds in Indian Rupee:
(exporters) may download the FORM GST RFD-
11 from the website of the Central Board of It is clarified that the acceptance of LUT for supplies
Excise and Customs (www.cbec.gov.in) and of goods to Nepal or Bhutan or SEZ developer or SEZ
furnish the duly filled form to the jurisdictional unit will be permissible irrespective of whether the
Deputy/Assistant Commissioner having payments are made in Indian currency or convertible
jurisdiction over their principal place of foreign exchange as long as they are in accordance
business. with the applicable RBI guidelines. It may also be
noted that the supply of services to SEZ developer or
Ø The LUT shall be furnished on the letter head of SEZ unit under LUT will also be permissible on the
the registered person, in duplicate, and it shall same lines. The supply of services, however, to
be executed by the working partner, the Nepal or Bhutan will be deemed to be export of
Managing Director or the Company Secretary or services only if the payment for such services is
the proprietor or by a person duly authorised by received by the supplier in convertible foreign
such working partner or Board of Directors of exchange.
such company or proprietor.

Ø The bond, wherever required, shall be furnished
on non-judicial stamp paper of the value as

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AHMEDABAD BRANCH OF WIRC OF ICAI

Accounting &
Company Law Updates

(Contributed by CA. Chintan Patel)

1. Exposure Draft issued for Comment: 5. Ind AS Publicationsissued by ICAI

The ICAI has issued following two exposure drafts. The ICAI has revised the following publications on
Once finalised, the updated Accounting Standards Indian Accounting Standards:
will apply to companies not covered under Indian
Accounting Standards (Ind AS) applicability. The · Indian Accounting Standards (Ind AS): An
revisions are being done to bring Indian GAAP Overview (Revised 2017)
nearer to Ind AS.
· Educational Material on Indian Accounting
- Exposure draft of Accounting Standard Standard (Ind AS) 18, Revenue (Revised 2017)
23Borrowing Costs
6. Clarification regarding application of Ind AS to
- Exposure draft of Accounting Standard payment banks and small finance banks that are
24Related Party Disclosures subsidiaries of corporates

The drafts are open for comments till 31 October The MCA has clarified that holding company, if
2017. covered under the corporate sector roadmap for
implementation of Ind AS, will follow the corporate
2. Restriction on layers of Subsidiaries notified sector roadmap. If a holding company has a
payment bank or small finance bank as its
The MCA has notified proviso to section 2(87) of the subsidiary company, such payment bank or small
Companies Act 2013 relating to layers of finance bank will follow the banking sector
subsidiaries with effect from 20 September 2017. roadmap prescribed vide the circular on
Implementation of Indian Accounting Standards
http://egazette.nic.in/WriteReadData/2017/179105 read with the circular on Operating Guidelines for
.pdf Payment Banks issued by the Reserve Bank of
India. However, the payment banks or small finance
3. NACAS tenure extended to two years banks will provide Ind AS financial data to its holding
company for consolidation purposes.
The MCA has amended the notification that
constituted the National Advisory Committee on http://www.mca.gov.in/Ministry/pdf/CompaniesIndia
Accounting Standards to extend its tenure from one nAccountingStandardsGSR365E_14092017.pdf
year to two years.
The Central Board of Direct Taxes has issued
http://egazette.nic.in/WriteReadData/2017/179109 Income-tax (22nd Amendment) Rules, 2017. This
.pdf amendment has substituted Form 29B dealing with
the report under section 115JB of the Income-tax Act,
4. Companies (Acceptance of Deposit) Second 1961 for computing book profits of a company. The
Amendment Rules, 2017 amended Form 29B requires specific disclosures
related to the impact of Ind AS and their inclusion for
The MCA has amended rules to allow specified IFSC determining MAT liability. They will come into force
public companies and private companies to accept from the date of their publication in the Official
from their members monies not exceeding 100% of Gazette.
aggregate of the paid-up share capital, free
reserves and securities premium account. The http://www.incometaxindia.gov.in/communications/
rules have also substituted the form to be filed by all notification/notification80_2017.pdf
companies accepting deposits. These rules will
come into force from 19 September 2017.

http://egazette.nic.in/WriteReadData/2017/179095
.pdf

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Vol. No. 5 | Issue No. 7 | October 2017

IT Updates Lets excel in excel !

(Contributed by CA. Hemlata Dewnani)

Concept Bit to Byte to use those functions which do not
have shortcut ,we will use special
Target How to Ease and speed up the work kind of shortcut that is ALT KEY
without use of mouse where we dont have to remember
the shortcuts
objective Use of ALT Key to Access any button or
command on the ribbon 2 The ALT keyboard shortcuts let you
use almost all of the commands
Requirement EXCEL 2010 available on the ribbon. These
shortcuts are also called Access
Problem As we are Aware nowdays daily new keys. It is specially used for that
shortcuts and versions comes which is function which may not have control
difficult to remember. So whats the shortcut.
solution ?
3 Suppose we want to use Home
Solution : 1 keyboard shortcuts can save your >>>> Alignment>>>>>
time but you have to remember the centre
shortcut keys than only you can use So let start press Alt else you can
that such as ctrl +s ,ctrl+o etc but if also use F10 . They show which key to
we don’t want to remember or want press

4 You can see that shortcuts are so we have to press H to move to
coming over there that is alphabets HOMe Screen now.so we can see the
are visible in the previous screen following screen

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AHMEDABAD BRANCH OF WIRC OF ICAI

5 For centre we have to use AC press Alter
So in brief shortcut was Alt + H + AC a To move forward
you don’t require to remember this b To move Backward
shortcut. we have to just look the c To move Down to Commands
screen and use it So now you can
prepare any shortcut like this don’t on the Ribbon,Galleries and menu
need toremember that d To move to Quick

6 If you are searching any command or Access Toolbar Ribbon
lost no need to worry you can back
out by using Escape key but if you And when reach your target press Enter or if you want to
lost out press again escape come out press Escape

7 Alternatively we can also use Arrow To be Continue……………………..
keys

RERA Updates

(Contributed by CA. Sandesh Mundra)

1. Vide Circular No. GujRERA/CIR/81 Date 26/09/2017 3. Vide Order No. 1 dated 19/09/2017, the RERA
- Relaxation has been given to the public authorities authority has stated that the Promoter/Developer
engaged in doing real estate projects which have who do not apply for the registration of their ongoing
their finance departments headed by officers with projects before 1/10/2017 will be required to pay a
differing designations such as Finance Controller, registration fee and a penalty equivalent to the
Finance Officer, Chief Accounts Officer etc. Such registration fee for applications during the period
Finance heads of the government authorities by from 1/10/2017 to 31/10/2017. From 1/11/2017 to
virtue of their designation shall be competent to 30/11/2017, the amount to be paid at the time of
issue certificates as per Form 3 and Form 5 in lieu of registration would be the registration fee plus two
Chartered Accountants for the purpose of regulation times registration fee as a penalty. This would not in
under GujRERA including matters connected any way reduce the element of liability in the event of
therewith and incidentalthereto. other defaults including intentional delay in
registration, false representation etc. For every
2. Vide Circular No. GujRERA/CIR/43 Dated application made on or after 1/10/2017, the
16/09/2017 - Promotors have been adviced to take promoters shall furnish a letter giving the details of
proper precautions while mentioning the project reasons for the delay in the registration based on
completion date. That is the date of completion shall which Authority would be free to take a view on the
take into account the period of completion of liability.
construction, obtaining occupancy certificate from
the authority, conveyance of the apartment and the 4. Application forms for Refund of Registration fees
common areas etc. (paid for projects outside the planning area) and
change of registration forms have been released.

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Vol. No. 5 | Issue No. 7 | October 2017

Forthcoming Events

S. Date NAME OF THE SEMINAR, VENUE Program Details FEES CPE
No. LECTURE MEETING, ETC.

Income Tax L/M on GST

Seminar on Income Tax on 26.09.2017 L/M on GST - Accounting under Tally on 28.09.2017

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AHMEDABAD BRANCH OF WIRC OF ICAI

Convocation

Convocation on 01.09.2017

Teachers Day

Teachers Day Celebration on 05.09.2017

L/M on Practical Issues GST Seminar

L/M on Practical Issues in RCM under GST on 06.09.2017 Impact on Professionals on 08-09-17
Benami Property

Seminar on Benami Property Transactions on 08.09.2017

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Vol. No. 5 | Issue No. 7 | October 2017
MCA

Interactive Seminar with Minister of Corporate Affairs Shri P. P. Chaudhary

RERA

Interactive Session with RERA Authorities on 14.09.2017

Tariff in GST

Lecture Meeting on How to Read Tariff in GST ? on 16.09.2017

Certificate Course

Participant Photo

Certificate Course on IND as at Ahmedabad on 23.09.2017
Workshop Training

Workshop Training on Excel-Making of Excel Champ - 1 on 24.09.2017

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AHMEDABAD BRANCH OF WIRC OF ICAI

Navratri

Swachhta Hi Sewa
Let us take pledge to
ensure CLEAN INDIA.

Rally for River
Let us take the pledge to support

“Rally for Rivers” campaign by
undertaking a pledge.
Kindly give a missed
call to 80009 80009.

Each missed call will count
towards a public

movement that will urge the
decision makers

for a positive River Policy.
Commemorating 75 years of

Quit India Movement

The views and opinions expressed or implied in this E- Newsletter are those of the authors or contributors and do not necessarily reflect those of the
Ahmedabad Branch of WIRC of ICAI. Unsolicited articles and transparencies are sent in at the owner’s risk and the publisher accepts no liability for loss or
damage. Material in this publication may not be reproduced, whetherin part or in whole, without the consent of the Ahmedabad branch.
DISCLAIMER: The Ahmedabad branch of WIRC of ICAI is not in any way responsible for the result of any action taken on the basis of the advertisement
published in theNewsletter. The members, however, may bearin mind the provision of the Code of Ethics whileresponding tothe advertisements.

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