AHMEDABD ICAI NEWS LETTER FOR THE MONTH OF FEBRUARY-2019

The Institute of Chartered Accountants of India

(Set up by an Act of Parliament)

AHMEDABAD BRANCH OF WIRC OF ICAI

OFFICE BEARERS Vol. No. 5 l Issue No. 12 | February, 2019

CHAIRMAN Chairman Message
CA. Nirav Choksi
98254 91291 Dear Members,
VICE CHAIRMAN
CA. Ganesh Nadar As I sit down to pen my last Chairman communication with the
99744 77447 members of Ahmedabad Branch, I am having mixed emotions.
SECRETARY One is absolute satisfaction from the task I have done in the last
CA. Fenil Shah one year and one is of the gap which this completion of tenure
89050 30507 will create in my life. But as the saying goes, all beautiful things
TREASURER have to eventually come to an end. The term of the present
CA. Bishan Shah managing committee 2016-2019 will come to an end. The new
98250 23573 committee will take charge from 26th February 2019.

MEMBERS In the past three years and specifically the last one year, I have
gained immensely as a professional and as an individual. Lots and lots of experiences, sweet
CA. Chintan Patel and sour, though less sour and more sweet experiences. The way the activities and the
CA. Vikash Jain members have enriched me in the last year, will always be useful to me in my entire life. The
CA. Harit Dhariwal mammoth task of managing a mega branch like Ahmedabad having around 10,000 CA
CA. Rajiv Ravani members and around 28,000 CA students is an experience in itself. The daily challenges and
issues keep you on your toes. However at the same time, these things teach you a lot which you
EX. OFFICIO MEMBERS can replicate in your life.

CA. Dhinal Shah, CCM I acknowledge the commitment with which I have been aptly supported by CA Ganesh Nadar
98250 29950 (Vice Chairman), CA Fenil Shah (Secretary), CA Bishan Shah (Treasurer), Newly Elected
CA. Priyam R. Shah Regional Council Members CA Vikash Jain & CA Chintan Patel and Managing Committee
Vice-Chairman, WIRC of ICAI Member CA Rajeev Ravani. The support and guidance of Central Council Member CA Aniket
98240 96112 Talati and Past Regional Council Members CA Purushottam Khandelwal and CA Priyam Shah
CA. Purushottam Khandelwal, and past Central Council Member CA Dhinal Shah has been next to phenomenal.
Secretary, WIRC of ICAI
98250 20844 Apart from the elected members, I had the privilege to seek and get the blessings and guidance
CA. Aniket Talati, RCM from Past President ICAI, CA Sunil Talati. His zeal and commitment for the activities of our
98255 51448 profession, even after having reached the highest level of the profession, is simply remarkable
and unmatched. I see the same zeal and commitment in the newly elected CCM CA Aniket
MEMBERS Talati.

CA. Shaleen Patni I will fail in my duty, if I do not acknowledge the contribution of all the subcommittee members
CA. Aneri Sheth of the various committees of the Ahmedabad branch. They are the one who are the backbone of
CA. Darshit Khetani all the committees of the branch and ensure the perfect execution of all the events, start to the
CA. Hashmat Aswani end. Lots and lots of people to be thanked specially for their efforts, but naming a few, I will not
CA. Hemlata Dewnani undermine the efforts of others who are not named.
CA. Krunal Gandhi
CA. Mohit Tibrewal I must not forget the contribution of the entire staff of the Ahmedabad Branch. They have stood
CA. Neelo Porwal with all the committee members of the Branch in the best and the worst times. They have not
CA. Nimesh Bhavsar only completed their basic duties but have also gone outside of their purview to see to it that the
CA. Nimesh Hariya
CA. Rohit Maloo
CA. Rushabh Shah
CA. Sonu Dhing
CA. Zalak Jintanwala

insideWhat’s Editorial 2 GST Updates 4 Quick Connect - RERA 10 Congratulations 13
3 FEMA Updates 6 Photo Gallery 14
Accounting, Auditing & Lets Excel in Excel 12
Company Law Updates

Vol. No. 5 | Issue No. 12 | February 2019

elected members can hold their head high during the entire tenure of three years. My heartfelt thanks to these
unsung heroes of the Ahmedabad branch.
My best wishes to newly elected Managing Committee Members of Ahmedabad branch for the year 2019-2022. The
new team comprises of CA Ganesh Nadar, CA Fenil Shah, CA Harit Dhariwal, CA Bishan Shah, CA Anjali Choksi, CA
Rahul Maliwal and CA Sunil Sanghvi. All have been elected by the members of the Ahmedabad Branch at the
elections conducted on 02/02/2019. I am sure that they will contribute immensely to the CA Profession and to
Ahmedabad Branch. This entire committee is a beautiful blend in appropriate proportion of young and experienced
professionals and therefore it has all the qualities to be a great team for the next three years.
The students of the CA fraternity will be preparing for the next examination and I hereby convey my best wishes to
them for their exams and entire professional career.
With the deepest sense of satisfaction and a vow to serve the profession whenever needed, I sign off as Chairman of
Ahmedabad Branch of WIRC of ICAI.
Regards
Thanking You.
CA. Nirav R Choksi
Chairman

Editorial

Dear Members,
After receiving a wonderful response to the January edition of our Newsletter, it gives me
immense pleasure to share the February edition. This being the last newsletter of this
committee, I would like to thank you all for your honest feedback and suggestions given
throughout the year which has helped us in coming up with newer and more resourceful
newsletters every month.
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 contribution of updates, useful suggestions, etc. I
would request you to send your contributions on the topics of Direct Taxes, GST, Corporate Law, Information
technology, FEMA, RERA, 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.
Happy Reading!
CA. HaritDhariwal
Chairman, Newsletter Committee

02

AHMEDABAD BRANCH OF WIRC OF ICAI

Accounting, Auditing & Company Law Updates

(Contributed by CA. Chintan Patel)

1. Companies (Significant Beneficial Ownership) highly useful in the audit process and will
Amendment Rules, 2019 strengthen the audit opinion. Accordingly, the
following guidance is being issued for the benefit of
The MCA has amended Companies (Significant the members.
Beneficial Ownership) Rules, 2018. Among other
matters, the amendment seeks to define https://resource.cdn.icai.org/54062aasb43402.pdf
“significant beneficial owner” and “significant
influence”. The rules now also specify the duty of 5. Compendium of ITFG Clarifications Bulletins
the reporting company, declarations of significant
beneficial ownership and return of significant Ind AS Transition Facilitation Group (ITFG) issues
beneficial owners in shares to be filled by the clarification bulletins addressing implementation
reporting company. issues from time to time. Till date, the ITFG has
issued clarifications on 132 issues through its 17
http://www.mca.gov.in/Ministry/pdf/CompaniesO clarification bulletins. For the ease of reference of
wnersAmendmentRules_08020219.pdf members and other stakeholders, a publication
containing compilation of all 132 issues clarified till
2. Ind AS Technical Facilitation Group (ITFG) date through these 17 ITFG clarifications bulletins
Clarification Bulletin 18 along with its standard-wise indexation has been
published.
The ITFG has considered various implementation
issues received from members. The ITFG, after https://resource.cdn.icai.org/53744compendium
due deliberations, issued clarifications on five Ind -itfg-icai-n.pdf
AS issues through its bulletin 18
6. UDIN mandatory w.e.f. 1 February 2019 for all
https://resource.cdn.icai.org/54022indas43379.pdf certificates

3. Educational Material on Indian Accounting To curb the malpractices, the Institute of
Standard (Ind AS) 111, Joint Arrangements Chartered Accountants of India (ICAI) vide its
earlier announcements has introduced the
This Educational Material contains summary of Ind concept of UDIN i.e., Unique Document
AS 111 discussing the key requirements of the Identification Number to secure certificates/
standards and the Frequently Asked Questions documents attested/certified by practicing
(FAQs) and illustrations covering the issues, which chartered accountants (CA). The Professional
are expected to be encountered frequently while Development Committee of ICAI has implemented
implementing this standard. the concept of UDIN in a phased manner. All
certificates are being made mandatory with effect
https://www.icai.org/new_post.html?post_id=154 from 1 February 2019 as per the council decision
28&c_id=240 taken at its 379th meeting held on 17th – 18th
December 2018.
4. Using Information Available at Information
Utility (IU) Platform for External Confirmations https://www.icai.org/new_post.html?post_id=153
71&c_id=240
The Auditing and Assurance Standards Board
(Board) of ICAI at its 193rd meeting held on 25 7. S p e c i f i e d C o m p a n i e s ( F u r n i s h i n g o f
January 2019 considered the communication (as
more detailed in the announcement) received from information about payment to micro and small
NFRA. The Board was of the view that the
information available at IU platform would be enterprise suppliers) Order, 2019.

Central government has vide notification number
5.O.5622 (E), dated the 2 November 2018 directed

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that all companies, who get supplies of goods or Vol. No. 5 | Issue No. 12 | February 2019
services from micro and small enterprises and
whose payments to micro and small enterprise for the period from October to March.
suppliers exceed 45 days from the date of
acceptance or the date of deemed acceptance of http://www.mca.gov.in/Ministry/pdf/MSMESpecifi
the goods or services as per the provisions of edCompanies_22012019.pdf
section 9 of The Micro, Small and Medium
Enterprises Development Act, 2006, shall submit a 8. C o m p a n i e s ( A c c e p t a n c e o f D e p o s i t s )
half yearly return to the Ministry of Corporate Amendment Rules, 2019
Affairs stating the following:
The MCA has amended the Companies
(a) the amount of payment due; and (Acceptance of Deposits) Rules 2014 to exempt real
estate investment trusts from the definition of
(b) the reasons of the delay; deposits.

Every specified company shall file in MSME Form I Additionally, every company other than a
the details of all outstanding dues to micro or small government company shall file a one-time return
enterprises suppliers existing on the date of of outstanding receipt of money or loan by a
notification of this order within 30 days from the company but not considered as deposits, in terms
date of publication of this notification of clause (c) of sub-rule 1 of rule 2 from the 1 April
2014 to the date of publication of this notification in
Every specified company shall file a return as per the Official Gazette, as specified in Form DPT-3
MSME Form I annexed to this order, by 31 October within 90 days from the date of publication of this
(pls specify the year or if it is a rule every year, pls notification along with fee as provided in the
mention “of every year”) for the period from April to Companies (Registration Offices and Fees) Rules,
September and by 30 April (pls specify the year or if 2014.
it is a rule every year, pls mention “of every year”)
http://www.mca.gov.in/Ministry/pdf/AcceptanceD
epositsAmendmentRule_22012019.pdf

GST Updates unutilized ITC, explains that ITC available in the
credit ledger account of proprietorship firm shall
(Contributed by CA. Monish S. Shah) be transferred to the respective credit ledger
account of private limited company consequent
1. AAR: 'Merger of firm with Company' not upon merger subject to provisions of Section
18(3)of CGST/HGST act 2017 and Rule 41of
'Supply', un-utilized ITC balance transferrable. CGST/HGST Act: Clarifies that said provisions are
applicable to transfer of un-utilised ITC and are not
Haryana AAR holds that the applicant on merger of applicable to un-utilized balance lying in electronic
its proprietorship firm as a going concern with a cash ledger : Haryana AAR
private limited company is not liable to pay tax on
the fixed/current asset including stocks of raw 2 AAR: Preparation/Serving food to children under
material, semi-finished and finished goods; Finds Govt. sponsored mid-day/Anganwadi meal
force in applicant's plea that in terms of Para 4(c) of program, constitutes 'supply’
Schedule II to CGST/HGST Act 2017, transfer of
business as a 'going concern' is not treated as Rajasthan AAR holds that activity of preparing and
'supply', thus the same stands excluded from the serving food to children of government schools
scope of supply of goods; Also states that, under mid-day meal programme (MDM) of
Notification 12/2007 -CT (rate), exempts intra state
supply of services of transfer of a going concern as
a whole or an independent part thereof under
section 9(1) of CGST Act; Further in relation to

04

AHMEDABAD BRANCH OF WIRC OF ICAI

Government and under Government Sponsored 4. The activity of supply, design, installation,
Anganwadi meals program (AMP) is covered commissioning and testing of reverse osmosis
under the scope of 'Supply' as per section 7 of CGST plant (R.O. Plant) and O &M work is a Works
Act/ RGST Act 2017; Observes that not all activities Contract of Composite Supply. This composite
provided by Trust registered u/s 12AA of Income supply is a mixed of goods and services and
Tax Act are termed as charitable activity, only those predominant supply is supply of services. The
activities covered under Notification 12/2017- supply is proposed to be undertaken for a
Central Tax (Rate) are termed as charitable activity Government Department, hence the rate of tax
and exempt from GST; Holds that the applicant's applicable on given service (as it is a works contract
activity is not covered under definition of 'charitable service) shall fall under Entry 3(iii) with HSN Code
activities', however, activities undertaken under 99544 and it should be IGST@12%(CGST@6%,
MDM is taxed at NIL rate by virtue of said SGST@6%). (Mr.Kailash Chandra - M/s Mali
Notification; States that, for preparation and Construction - RAJASTHAN AUTHORITY FOR
serving of food under AMP, applicant receives ADVANCE RULING)
reimbursement from Government of Rajasthan @
Rs. 5.40 per pregnant women/lactating & nursing 5. AAR : Denies ITC of GST charged by contractor
mothers/adolescent girls and Rs. 5.25 per child
per day, therefore such activity is against for hiring of buses/cars for transportation of
consideration, covered under term 'Supply';
Further elucidates that activity of transfer of employees
goods/capital equipment's exclusively used for
MDM and AMP between different kitchens of Haryana AAR holds that applicant is not eligible to
applicant which are 'Distinct persons' as per GST take ITC on GST charged by the Contractor for
law is covered under scope of 'Supply'; Also, adds hiring of buses/cars for transportation of
that the scrap items generated during course of employees in view of restriction contained u/s
the activity of MDM in form of empty oil, pies & iron 17(5)(b)(iii) of CGST Act, 2017; Rejects applicant's
etc. sold from time to time for a consideration is contention that buses which can carry large
also an activity of sale for a consideration falling number of passengers would not qualify under
under definition of 'supply': Rajasthan AAR M/s The “rent-a-cab” observing that any commercial
AkshayaPatra Foundation - RAJASTHAN vehicle hired for passenger transportation is
AUTHORITY covered by such phrase; States that works 'rent'
and 'hire' being synonyms, services of applicant
3. Registration in the State of Rajasthan - Procures qualify as 'rent-a-cab' services; Observes that
services from other State (i.e. Haryana) and the nothing has been brought on record to suggest that
supplier normally charges of CGST & SGST of that the service is not a service which is obligatory for an
(Haryana) state, due to the reason of place of employer to provide to its employees under any law
supply being in the state of supplier. - Held, Input for the time being in force, or that such inward
tax credit of Central Tax paid in Haryana is not supply of services is used by the applicant for
available to the applicant who is registered in state making an outward taxable supply of the same
of Raiasthan. (IMF Cognitive Technology Private category of services or as a part of taxable
Limited - RAJASTHAN AUTHORITY FOR ADVANCE composite or mixed supply : Haryana AAR
RULING)

05

FEMA Updates Regulations, 2018 dated 17 December 2018 ('New
ECB Regulations'). Further, RBI has also issued
(Contributed by CA. Saumya Sheth) A.P. (DIR Series) Circular No. 17 dated 16 January
2019 ('Circular 17') providing for new ECB
Revised External Commercial Borrowing (ECB) framework.
Regulations
Earlier there were following three regulations
A. Revised ECB Regulations governing borrowing / lending by person resident
in India with persons resident outside India:
RBI has revised existing regulations relating to
External Commercial Borrowings, Trade credits &
Borrowing and lending in INR ('ECB') by issuing a
revised Notification No. 3(R) /2018-RB - Foreign
Exchange Management (Borrowing and Lending)

Sr. Name of regulation Relevant Notification No. Scope of regulation

No. FEMA 3 /2000-RB dated i) Borrowing in foreign currency
3rd May 2000 by AD
1 Foreign Exchange Management
(Borrowing or Lending in Foreign ii) Borrowing in foreign currency by
Exchange) Regulations, 2000 persons other than AD
('Old ECB Regulations')
iii) Borrowing in Indian currency by
2 Foreign Exchange Management FEMA 4 /2000-RB dated Company
(Borrowing and Lending in Rupees) 3rd May 2000
Regulations, 2000 ('INR iv) Trade credits
Borrowing Regulations')
i) Borrowing in Indian currency by
3 Para 21 of Foreign Exchange FEMA 120/ RB-2004 Indian Company through
Management (Transfer or Issue of dated July 7, 2004 issuance of NCDs;

Any Foreign Security) (Amendment) ii) Borrowing in Indian currency by
persons other than company

i) Lending in foreign currency by
Indian company to its overseas
subsidiary/ JV

Regulations, 2004
('ODI Regulations')

RBI has now consolidated all above Regulations Some of the key aspects of changes effected in the
relating to borrowing and lending in foreign currency new ECB framework notified by RBI are given
and Indian currency and issued Revised FEMA 3/2019 below:
('New ECB Regulations') dealing with foreign currency
and Indian currency borrowing / lending by Indian 1) Change in definition of Eligible Borrower:
residents. Further, certain aspects of ECB have also
been clarified by RBI through issuing Circular 17. Under new ECB regulations, all entities, including
Earlier there four-tier structure of ECB which have now companies and LLP which are eligible to receive
been rationalised as under: FDI under FEMA 20 can raise ECB irrespective of
the sector in which they operate.
I) Track I & Track II have been merged as Foreign
Currency denominated ECB; and Accordingly, under New ECB regulations even
service sector companies like companies engaged
ii) Track III & Rupee denominated bonds have been in ITES activities etc can also raise finance via ECB
merged as Rupee denominated ECB. route. Further ECB route is open even for sectors
which are subject to sectorial cap or FDI is

AHMEDABAD BRANCH OF WIRC OF ICAI

permitted subject to performance linked b. Investment in capital market;
conditions.
c. Equity investment;
Further, companies which are under IBC can also
raise ECB if specifically permitted under the Following end-use restriction would also apply
resolution plan. unless ECB is raised from direct or indirect
equity holder or from Group company having
2) Change in definition of Eligible Lender: MAM of 5 years:

Under the new ECB regulations, any person can be d. Working capital purposes;
eligible lender provided they are resident of FATF
or IOSCO compliant country. However, Individuals e. General corporate purposes;
as lenders can only be permitted if they are foreign
equity holders or for subscription to bonds/ f. Repayment of Rupee loans;
debentures listed abroad.
g. On-lending to entities for the above activities
However, Financial institutions located in from (a) to (f);
International Financial Services Centres in India
are not specifically included in definition of h. Payment of interest / charges for ECB.
recognised lender which were included in the old
ECB regulations. Real estate activity specifically excludes purchase /
long term leasing of industrial land as part of new
3) Minimum average maturity period: project / modernisation or expansion of existing
unit. Hence, going forward ECB can be utilised
Minimum average maturity period (MAMP) for ECB towards purchase of industrial land for expansion
will be 3 years. However, manufacturing sector of existing unit or setting up of new unit.
companies may raise ECBs with MAMP of 1 year for
ECB up to USD 50 million or its equivalent per Further, resolution applicants under the Corporate
financial year. Insolvency Resolution Process (CIRP) are now
allowed to raise ECBs from the recognised
Further, if the ECB is raised from foreign equity lenders, except the branches/ overseas
holder and utilised for working capital purposes, subsidiaries of Indian banks, for repayment of
general corporate purposes or repayment of Rupee term loans of the target company under the
Rupee loans, MAMP will be 5 years. approval route.

The call and put option, if any, shall not be 6) Individual Limits of borrowing:
exercisable prior to completion of minimum
average maturity. All eligible borrowers (excluding startups) can now
raise ECB up to USD 750 million or equivalent per
4) All-in-cost ceiling: financial year under auto route. Rest of the
conditions, including ECB equity ratio of 7:1 in case
There is no change in all-in-cost ceiling for raising of borrowings from foreign equity holder
ECBs and continue to remain at 450 basis points exceeding USD 5 million would remain the same.
over 6 month LIBOR for foreign currency ECB and
450 points over prevailing yield of Government of 7) Reporting:
India securities for INR ECB.
ECB can be drawn down only after obtaining Loan
5) Permitted end-use of ECB (Negative list): registration number (LRN). Name of form for
obtaining LRN from RBI has changed from old
The negative list for which ECB proceeds cannot be Form 83 to new Form ECB. Hence, wherever Form
utilized is largely similar as erstwhile ECB 83 was required to be filed, going forward Form
regulations, i.e. as under: ECB would be required to be filed. However,
contents of the form are same. Further, ECB 2
a. Real estate activities; filing continues to remain as before. Additionally, in

07

Vol. No. 5 | Issue No. 12 | February 2019

part D of Form ECB 2 details with respect to delay in non-compliances relating to ECB
proceeds of ECB parked domestically is also regulations.
required to be stated.
Hence, going forward any borrower, who is
8) Late submission fees otherwise in compliance of ECB guidelines, can
regularize the delay in reporting of drawdown of
In line with FDI regulations contained in FEMA ECB proceeds before obtaining LRN or delay in
20(R), new ECB regulations also provides for submission of Form ECB 2 returns, by payment of
payment of late submission fees for regularising late submission fees (LSF) as given below:

No. Type of Return/Form Period of delay Applicable LSF
1 Form ECB 2 INR 5,000
Up to 30 calendar days from due date of
2 Form ECB 2/Form ECB submission INR 50,000 per year

3 Form ECB 2/Form ECB Up to 3 years from due date of submission/ INR 100,000 per year
date of drawdown

Beyond 3 years from due date of submission/
date of drawdown

9) ECB for untraceable entities 10) Parking of ECB proceeds, Exchange Rate and
Hedging requirements
Entire new standard operating procedure has been There is no change in new ECB regulations for
laid down for AD Banks in case of untraceable above parameters as compared to earlier ECB
entities who are found to be in contravention of regulations
reporting provisions for ECBs by failing to submit
prescribed return(s) under the ECB framework, B. Key changes in Regulations governing Trade
either physically or electronically, for past eight Credits:
quarters or more. Key changes between old ECB regulations and new
ECB regulations relating to trade credits are
highlighted as under:

Particulars Old ECB Regulations New ECB Regulations Comments
Amount of
borrowing USD 20 million per import USD 50 million per Increase in limit of trade credit
Period transaction import transaction

Trade credit Import of capital goods – Import of non-capital Trade credit period for import of
beyond
permitted goods – capital goods has been reduced
period 5 years from date of shipment 1 year from date of from 5 years to 3 years
Import of non-capital goods – shipment

1 year from date of shipment Import of capital goods –
or operating cycle, whichever 3 years from date of
is less shipment or operating

cycle, whichever is less

No specific provision in respect Specifically provides trade There have been several

of trade credit extending credit beyond 3 years instances wherein RBI has

beyond above specified period period to be ECB compounded non compliances

relating to trade credit extending

beyond specified period by

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AHMEDABAD BRANCH OF WIRC OF ICAI

viewing it as ECB. The same has

now been specifically included in
new ECB regulations.

Recognised Overseas suppliers, banks, Lenders to also include Recognised lenders list expanded
lenders financial institutions,
foreign equity holders to include foreign equity holders
Cost All-in-cost ceiling for raising and financial institutions and financial institutions in IFC.
trade credit was 350 basis
points over 6 month LIBOR in IFC Hence, they can also give trade

credits

All-in-cost ceiling for Reduction in all in cost ceiling for
raising trade credit raising trade credits
reduced to 250 basis

points over 6 month LIBOR

C. Key changes in Regulations governing The Department of Industrial Policy and Promotion
borrowings in INR by Indian residents: (DIPP) of the Ministry of Commerce and Industry,
Government of India has issued Press Note No 2
Borrowing by Indian companies (2018 Series) on 26 December 2018 (PN 2 of 2018).

Under the erstwhile ECB regulations, investment With effect from 1 February 2019, PN 2 of 2018 has
in Non-convertible debentures (NCD) issued by amended paragraph 5.2.15.2 of the current
Indian companies to Registered Foreign Portfolio 'Consolidated FDI Policy' which deals with foreign
Investors was not covered under the ECB direct investment (FDI) up to 100% under the
framework. The said position continues even automatic route for entities engaged in the
under the new ECB regulations. marketplace model of e-commerce, subject to
compliance with certain conditions. However, FDI
Further, under INR Borrowing Regulations, Indian in entities engaged in the inventory-based model of
companies could borrow in rupees from NRIs / e-commerce was expressly prohibited, and this
PIOs by issuing NCDs and subject to fulfilment of continues to be the case as on date.
conditions laid down therein. However, under New
ECB regulations, there is no specific regulations Some of the important changes made by PN 2 of
governing issuance of NCDs by Indian companies 2018 are highlighted below:
to NRI / PIOs. Accordingly, we would need to wait
for further clarity on this issue. Ownership and control over inventory

Borrowing by Indian individuals E-commerce entity providing a marketplace will
not exercise ownership or control over the
Under the erstwhile INR Borrowing regulations, inventory i.e. goods purported to be sold. Such an
person resident in India (other than an Indian ownership or control over the inventory will render
company) could borrow in rupees from any NRI / the business into inventory based model. Inventory
PIO on non-repatriation basis subject to fulfilment of a vendor will be deemed to be controlled by e-
of certain conditions. Under the New ECB commerce marketplace entity if more than 25% of
Regulations, person resident in India (other than purchases of such vendor are from the
an Indian company) can borrow in Indian Rupees marketplace entity or its group companies.
from NRI / Relatives who are holding OCI Card
subject to terms and conditions as would be Restriction on group company sellers to
specified by RBI in this behalf. participate on e-commerce platform

DIPP Press Note No. 2 (2018 Series) – Changes in An entity having equity participation by e-
FDI Policy relating to e-commerce entities commerce marketplace entity or its group

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companies, or having control on its inventory by e- Vol. No. 5 | Issue No. 12 | February 2019
commerce marketplace entity or its group
companies, will not be permitted to sell its vendors on the platform at arm's length and in a
products on the platform run by such marketplace fair and non-discriminatory manner. Such services
entity. will include but not limited to fulfilment, logistics,
warehousing, advertisement/marketing,
No exclusivity payments, financing etc. Cash back provided by
group companies of marketplace entity to buyers
E-commerce marketplace entity will not mandate shall be fair and non-discriminatory. For the
any seller to sell any product exclusively on its purposes of this clause, provision of services to any
platform only. vendor on such terms which are not made available
to other vendors in similar circumstances will be
Level playing field deemed unfair and discriminatory.

E-commerce entities providing marketplace will Report to RBI
not directly or indirectly influence the sale price of
goods or services and shall maintain level playing E-commerce marketplace entity will be required
field. Services should be provided by e-commerce to furnish a certificate along with a report of
marketplace entity or other entities win which e- statutory auditor to Reserve Bank of India,
commerce marketplace entity has direct or confirming compliance of above guidelines, by 30th
indirect equity participation or common control, to of September of every year for the preceding
financial year.

Quick Connect RERA 3. For the purpose of renovation or repair or re-
development which does not involve marketing
(Contributed by CA. Pooja Shah) advertising, selling or new allotment of any
apartment, plot or building.
Registration of Projects
SECTION 4: This Section talks about Registration of
Extracts of Important sections relating to Project Real Estate Project.
Registration under RERA:
At the time of registration following documents/
SECTION 3(1): information are required:

1. Without registering the real estate project with the 1. Estimated cost of project (Land + Building), Area of
Real Estate Regulatory Authority, Promoter shall Land, Open Area, Covered Area (in sq. mts.)
not advertise, market, book, sell or offer for sale in
any real estate project in any Planning area. 2. Inventories details (No . of Blocks , Carpet area ,
Unit Price , Area of balcony , Wash area and open
2. In case of ongoing project if completion certificate terrace { Must be in sq . mtr } ).
not received then registration of the said project
should be made within a period of 3months from 3. Allotment letter – on company's letter head.
the date of commencement of this Act.
4. Form 1- on architect's letter head.
SECTION 3(2): Exemption from registration:
5. Form 2- on Engineer's letter head.
1. Area of land proposed to be developed does not
exceed 500 sqmtr or no. of apartments 6. Form 3- on CA's letter head
proposed to be developed does not exceed 8
inclusive of all Phases. 7. Sale deed and agreement for sale- on normal
pages.
2. Where the Promoter has received Completion
certificate prior to commencement of the ACT. 8. Photo of all Promoters/ partners/directors- on
company's letter head.

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AHMEDABAD BRANCH OF WIRC OF ICAI

9. Photo of an Authorized promoter person- on the Authority.
company's letter head.
- If promoter doesn't comply with the orders,
10. Photo of a Project head- on company's letter head. decisions or directions issued under sub-section
(1) or continues to violate the provisions of Section
11. Encumbrance or Non- encumbrance certificate- 3, he shall be punishable with:
on advocate's letter (which has experience of 10
years or more). I. Imprisonment ( which may extend up to 3
years); or
12. Entity's PAN Card.
ii. Fine ( which may FURTHER extend upto 10% of
13. Entity's registration certificate along with Estimated Cost of the Real Estate Project, or;
respective MOAs/ Partnership deed/ LLP deeds
etc. iii. Both .

14. Approved lay out plans. SECTION 60: Penalty for Contravention of Section 4

15. Land documents (as per Requirements). - If any false information is provided or section 4 is
contravened, then Promoter shall be liable to a
16. Form B-Affidavit cum declaration – on 100Rs Penalty which may extend upto 5% of the
stamp paper with photo (authorized promoter). Estimated Cost of the Real Estate Project as
determined by the Authority.
17. Power of attorney for appointing of authorized
promoter. There have been ambiguity with regards to
Advertisement post RERA registration, due to
18. Project colored photos. which the promoters also faced various penal
actions. To provide guidance to promoters, media
19. Various NOC's received from government organizations and advertising industry
department like air, environment etc. intermediaries and thus to ensure appropriate
compliance, the GujRERA has clarified the
20. Project draft brochure. following:

21. Audited Financial documents (if applicable) I. Advertisement in newspaper, brochures and
leaflets should contain the Gujarat RERA
i) Balance sheet website address(www.gujrera.gujarat.gov.in)
and the RERA Registration number.
ii) P&L
ii. Large size outdoor publicity billboard and
iii) Director report hoardings must contain authority website
address and RERA Registration number in a
iv) Cash flow statement font which would be easily readable with bare
eyes by viewer.
v) Auditor report
The small hoardings (e., road divided, street
vi) ITR V light poles) must contain 8 digit unique code
out of RERA Registration number (e.g.
22. Tally Backup updated till date. CAA02222)

23. Two Blank CD's. iii. E v e r y a u d i o v i s u a l m e d i a o r a u d i o
announcement on Radio shall mention
After submitting the required details online, the abridged RERA Registration no. and authority
promoter needs to authenticate all the documents website address in clearly Audible manner.
before submitting the Hard Copy file to the RERA (e.g. Radio, T.V., Video clips, Audio Clips, Media
department. streaming, Digital Media Content, etc.)

SECTION 59: Punishment for Non- Registration
under Section 3

- Penalty which may extend upto 10% of Estimated
Cost of the Real Estate Project as determined by

11

Lets Excel in Excel Vol. No. 5 | Issue No. 12 | February 2019

(Contributed by CA. Hemlata Dewnani) · Range: A selection of cells extending across a row,
column, or both.
Google - Spreadsheets
· Function: A built-in operation from the spreadsheet
Google Sheets is a spreadsheet app on steroids. It looks app, which can be used to calculate cell, row,
and functions much like any other spreadsheet tool, but column, or range values, manipulate data, and
because it's an online app, it offers much more than more.
most spreadsheet tools. Here are some of the things
that make it so much better: · Formula: The combination of functions, cells, rows,
columns, and ranges used to obtain a specific
· It's a web-based spreadsheet that you can use result.
anywhere— no more forgetting your spreadsheet
files at home. · Worksheet (Sheet): The named sets of rows and
columns making up your spreadsheet; one
· It works from any device, with mobile apps for iOS spreadsheet can have multiple sheets
and Android along with its web-based core app.
· Spreadsheet: The entire document containing your
· Google Sheets is free, and it's bundled with Google worksheets
Drive, Docs, and Slides to share files, documents,
and presentations online. Getting Started with Google Sheets
The best way to learn a tool like Sheets is to dive straight
· It includes almost all of the same spreadsheet in. In this chapter, you'll learn how to:
functions— if you know how to use Excel, you'll feel Create a Spreadsheet and Fill It With Data
at home in Google Sheets. 1. Format Data for Easy Viewing
2. Add, Average, and Filter Data with Formulas
· You can download add-ons, create your own, and 3. Share, Protect, and Move Your Data
write custom code. 4. Will discuss in next article.

· It's online, so you can gather data with your
spreadsheet automatically and do almost anything
you want, even when your spreadsheet isn't open.

Whether you're a spreadsheet novice or an Excel
veteran looking for a better way to collaborate, this book
will help you get the most out of Google Sheets. We'll
start out with the basics in this chapter— then keep
reading to learn Google Sheets' advanced features, find
its best add-ons, and learn how to build your own.

Common Spreadsheet Terms

To kick things off, let's cover some spreadsheet
terminology to help you understand this the terms in
this book:

· Cell: A single data point or element in a
spreadsheet.

· Column: A vertical set of cells.

· Row: A horizontal set of cells.

12

AHMEDABAD BRANCH OF WIRC OF ICAI

Congratulations

for being elected to the Managing Committee for the term

2019-2022.

DHARIWAL HARIT ASHOK SHAH FENIL RAJENDRA

NADAR GANESH THANABALAN CHOKSI ANJALI NIRAV

SHAH BISHAN RAMESHCHANDRA MALIWAL RAHUL KALULAL

SANGHVI SUNILKUMAR RAMESHKUMAR

13

Vol. No. 5 | Issue No. 12 | February 2019

Lecture Meeting on RERA on 12.01.2019 Lecture Meeting on RERA on 19.01.2019

2nd Batch of ICAI RVO Course on 19.01.2019 Seminar on GST on 19.01.2019

Lecture Meeting on Company establishment in Middle East & related FEMA
& Tax Regulations on 21.01.2019

Lecture Meeting on Lecture Meeting on RERA on 24.01.2019 Seminar on Insolvency and
Income Tax on 24.01.2019 Bankruptcy on 24.01.2019

14

AHMEDABAD BRANCH OF WIRC OF ICAI

Republic Day Celebration - Flag Hoisting on 26.01.2019

Seminar on Forensic Audit & Seminar on Construction Finance & Subsidy on 30.01.2019
Investigation on 29.01.2019

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 the Newsletter. The members, however, may bear in mind the provision of the Code of Ethics while responding to the advertisements.

15