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AHMEDABAD ICAI NEWS LETTER FOR THE MONTH OF JULY 2019

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Published by ahmedabad, 2019-07-30 01:52:23

AHMEDABAD ICAI NEWS LETTER FOR THE MONTH OF JULY 2019

AHMEDABAD ICAI NEWS LETTER FOR THE MONTH OF JULY 2019

Keywords: AHMEDABAD ICAI NEWS LETTER FOR THE MONTH OF JULY 2019

THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF INDIA

(Set up by an Act of Parliament)

e - NEWSLETTER

Vol. No.: - 06 | Issue No. - 05 | July - 2019

OFFICE BEARERS Chairman’s Message

Chairman
CA. Ganesh Nadar
99744 77447

Vice Chairman
CA. Fenil Shah
89050 30507

Secretary
CA. Harit Dhariwal
99789 42299

Treasurer July Greetings from CA Ganesh Our ICAI hosted multiple activities in
CA. Anjali Choksi Nadar! June besides the flagship RRC on
98257 73179 GST at Bengaluru. Some of these
MEMBERS “Friends are those rare people who include - the Certificate Course on
CA. Bishan Shah ask how we are and then want to hear Ind-AS; Audit of Info System;
CA. Rahul Maliwal the answer” – these words of Ed Seminar on PMLA and Benami
CA. Sunil Sanghvi Cunningham aptly showcase that Property; An Industrial Visit to Amul
selfless relationship called (Anand) for Women CAs along with
EX. OFFICIO MEMBERS ‘Friendship’which we shall all be Budding CAs (their children);
CA. Aniket Talati, CCM celebrating on 4August… Felicitation of our Cricket Team on
98255 51448 Winning the Inter Branch Cricket
CA. Hitesh Pomal, RCM Amidst our revelry, let’s pray not only Championship Cup; Meeting of the
98240 49402 for our farmer community but also for New WICASA Managing
CA. Vikash Jain, RCM the environment at large that the Committee; besides of course
93277 15892 Monsoon Gods bless us with their celebrating CA Day with a blood
CA. Chintan Patel, RCM bounty. donation camp, yoga and health
90999 21163 session and a press conference. Then
While the country launched the again to enable our community to
NEWS LETTER COMMITTEE Chandrayan II Mission and our boys keep pace with new technologies we
Chairman - CA. Rahul Maliwal in blue gave a brave fight to the Kiwis had organized a Course on Block-
Co-Chairman - CA. Hemlata Dewnani in the Queen’s Country; we too chain Technology for Professional
Convener - CA. Mohit Tiberwal proudly rang in the 71 st year of the Accountants.
ICAI Foundation and the second
MEMBERS anniversary of the path-breaker GST. Here’s sharing with you a curtain
CA. Devam Sheth raiser of this issue – Updates on
CA. Kushal Bhadrikbhai Reshamwala The extension in the deadline (till 31 Accounting, Company Law, GST,
CA. Mahadev Prasad Birla August) of the New IT Returns FEMA, IT and International Taxation;
CA. Mahavir Prafulchandra Shah System is a welcome breather for us Quick Connect with IT and RERA;
CA. Neelo Porwal and our clients. Important Due Dates for Compliance;
CA. Pranay Mehta
CA. Sagar Chhatani
CA. Twinkle S. Shah
CA. Vaibhav S. Shah

InsideWhat’s? Editorial 02 GST Update 05 RERA Quick Connect 08

ICAI - New Delhi 03 Income Tax Updates 06 FEMA Update 10 Motivational Story 13
Events in Images 14
Accounting, Auditing & 04 Income Tax Quick Con.07 Technique of the month 11
Company Law Updates
International Taxation 07 Imp. Due Dates 12

AHMEDABAD BRANCH OF WIRC OF ICAI

the Modus Operandi for the Auto-reply Function of rightfully deserves!
Google Mail through Canned
Response; and Pearls of Wisdom from Sadhguru Jaggi ICAI-Delhi communiqués in this issue include - their
Vasudev. own Amazon (!) which is the CDS (Central
Distribution System) to make sale of all ICAI
August meaning the month of Shraavan, Raksha publications – faster and easier; and Overseas Campus
Bandhan, Independence Day and Janmashtami also Placements for CAs and Inter CAs.
heralds in Bakri Eid for our Muslim brethren and While we celebrate our 73rd Independence Day let us
Navroze for our Parsi members. In the midst of all remember the immortal words of Peter Marshall
these festivities let us take a minute to remember the - “May we think of freedom not as the right to do as we
Hiroshima Casualties on 6 August; and all those please, but as the opportunity to do what is
innocent people who have succumbed to acts of right”
terrorism and religion-based-violence on 21August.
That’s all from my desk…Keep reading and
August marks a lot of other special days also for contributing to YOUR newsletter!
instance – National Handloom Day to revive domestic
products and production processes; Biofuel Day to CA. Ganesh Nadar
promote use of renewable, sustainable and eco- Chairman
friendly fuel options; Sport Day to commemorate
legendary hockey player Dhyan Chand and of course CA. Ganesh Nadar
Photography Day for all of us whose android phones
have made them amateur photographers! Chairman,
Ahmedabad Branch
In sync with our Mission Statement of ‘Celebrating Mission to take our esteemed profession to
the Past and Inspiring the Future’ let’s all ring in unparalleled heights!
International Youth Day with the bonhomie it

Editorial

Welcome to the second half of the calendar introduction of GST was a game changer for Indian
year- it's JULY. economy as it has replaced multi-layered, complex
indirect tax structure. However, the implementation of
It is the 71st year of foundation of our Institute. C.A. GST has not been without challenges especially in the
Day is celebrated across all the offices of the institute early months, the C.A. once again proved them self as
on 1st of July. Of course we share this date with other partners in national building by helping in successful
noble professional brother i.e. doctors. These two implementation of GST. Again the introduction of
professions have left no stone unturned to look after New Return System may pose new challenges and
physical and financial health of the society. We also may unsettle the current flow.
celebrated this day with numerous different health,
spiritual and cultural activities. CA. Rahul Maliwal

1st July also marks second anniversary of GST. The Chairman,
Newsletter Committee

www.icaiahmedabad.com 02 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

Professional Updates from from the desk of

CA. Aniket Talati

[Central Council Member]

ICAI's very ownAmazon! џ Selected candidates upon accepting the offer cannot
CDS (Central Distribution System), is an initiative from appear for any other interview or accept job from any
ICAI to make sale of all ICAI publications – faster and other employer at the Campus.
easier.
ICAI has developed this portal with the intention of џ Candidates to attend interview at their cost.
providing study material to its Registered Students at џ Entire process is online https://cmib.icai.org/
their door step and to sell ICAI publications and other џ ICAI / Participating organization will not be
artefacts to Students, Members and other stakeholders
online and deliver the same at the doorstep of the buyer. responsible for selection / rejection of candidates.
It has developed an online store portal for its students, џ ICAI shall not be responsible for any dispute between
members and for other stakeholders. This portal provides
options to purchase all relevant publications and candidates and participating organisations.
artefacts online. Anyone interested can generate his/her џ Once contested. It is mandatory to attend the
own accounts and place his/her orders on online store.
Students, upon successful registration to the course, will interview. Else will be debarred from future events.
be allotted coupon(s) against registration. Foundation џ Advised to strictly adhere to the time line for
Course students will be allotted I coupon, Intermediate
and final Course students will be allotted 2 coupons. The completing the process.
Intermediate and Final Course students can choose to use
their coupons as per their requirement. Approach to upgrade existingAccounting Standards
https://icai-cds.org/ The Indian Accounting Standard (Ind AS), as notified by
the ministry of corporate Affairs in February 2015, are
Overseas Campus Placement for CAs & Inter CAs applicable to the specified class of companies.
I am happy to inform that in a bid to provide global Accounting Standards notified under Companies
opportunities to the Chartered Accountants, Committee (Accounting Standards) Rules, 2006, and those issued by
for Export of CA Services (of which I am Vice the ICAI are applicable to entities to whom Ind AS are
Chairman) is organizing its overseas campus placement not applicable.
on 18th – 21st October 2019 along with CMI&B of ICAI. However, on the basis of the discussions held at various
It is under the Champion Sector initiative of GoI. In a standard setting forums, such as, the Accounting
step forward to the ICAI's initiative that started last year, Standards Board (ASB) of the Institute of Chartered
accountants (Inter CAs) have been included in this Accountants of India (ICAI), NACAS and the Ministry
overseas placement drive. I request all professionals who of Corporate Affairs (MCA), it had been decided to
wish to avail themselves of this opportunity to register upgrade Accounting Standards to bring them nearer to
for the placement programme, which starts from 16th Ind AS. In this context the ASB and the Council, ICAI,
August, 2019 had finalized the Approach Paper for upgradation of
Register https://cmib.icai.org fromAug 16, 2019 exiting Accounting Standards which provides broad
Interview @Ahmedabad on 20th / 21st October, 19 approach which may be followed in the upgradation of
the AS.
Guidelines for the Candidates In pursuance to the discussions held at 383rd meeting of
џ To register online on https://cmib.icai.org/ by paying the Council held on May, 21, 2019, the Hon'ble
President, ICAI, has constituted a Group of Central
non-refundable registration fee of Rs. 1000/- by Council Members (CCMs) to review the same. I have
Chartered Accountants and Rs. 500/- by Chartered been nominated as a part of the group and would be
Accountancy students who have completed their raising genuine concern of small and medium
articleship training. practitioners. I am of the firm belief that the time is right
џ Center once opted cannot be changed. for India to take lead as a global standard setter not
џ Can opt only one center for interview. simply emulate and import foreign standards. The
џ No restriction on number of interviews a candidate impact of this exercise would be huge since basic
can attend. accounting standards that are applicable to firms/
џ To carry originals of all testimonials with copies at the proprietors / non corporate entities would be affected. It
time of interview. will have an impact on the entire accounting landscape.

CA. Aniket S. Talati

[email protected]
or 9825551448

www.icaiahmedabad.com 03 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

Accounting &
Company Law Updates

1. ICAI Publication on Indian Accounting https://resource.cdn.icai.org/55732clcgc45064faq.pdf
Standards (IndAS):An Overview (Revised 2019) 5. Ind AS Technical Facilitation Group (ITFG)
ICAI has issued fourth edition of publication including the Clarification
recent amendments to Ind AS notified by the Ministry of (a) Bulletin 20
Corporate Affairs of India in March 2019, specifically the The ITFG has considered various implementation issues
issuance of new leases standard (Ind AS 116), and other received from members. The ITFG, after due deliberation,
consequential amendments thereto. issued clarifications on five Ind AS issues through its
https://resource.cdn.icai.org/55845indas45234a.pdf bulletin 20.
2. ICAI Publication on Educational Material on https://resource.cdn.icai.org/55591asbicai-itfgcb20.pdf
Ind AS 8, Accounting Policies, Change in Accounting (b) Bulletin 15 (Revised)
Estimates and Errors The ITFG considers various implementation issues
ICAI has issued the educational material of Ind AS 8 which received from members. At its 19th meeting held on 11
addresses all the relevant aspects envisaged in the standard May 2019, ITFG considered a comment received by it on
by way of a brief summary of the standard and frequently Issue 7 of ITFG bulletin 15. In order to avoid any potential
asked questions (FAQs) which are being/expected to be misinterpretation of the issue under reference, the ITFG
encountered while implementing the standard. has decided to amend the response to Issue 7.
https://resource.cdn.icai.org/55846indas45234b.pdf https://resource.cdn.icai.org/49554indas39277.pdf
3. SEBI issues consultative paper on policy 6. Clarification on Auditor's Certificate on
proposals with respect to resignation of statutory Return of Deposits pursuant to Rule 16 of the
auditors from listed entities Companies (Acceptance of Deposits) Rules, 2014
In order to strengthen the disclosures to investors and The ICAI has stated that the Ministry of Company Affairs
stakeholders and further to clarify the role of the audit vide its letter no. File No: P-01/08/2013- CL-V Vol. VI
committee, SEBI proposes to issue a circular or amend dated June 24, 2019 has clarified on the matter as under:
SEBI (Listing Obligations and Disclosure Requirements) l The Auditor's Certificate is mandatory only in case of
Regulations, specifying the procedure that may be
followed in cases where the auditor of a listed return of deposits.
entity/material unlisted subsidiary of the listed entity l For filing particulars of transactions not considered as
proposes to resign. SEBI has accordingly issued the draft
framework for consultation. deposits information contained therein as on 31st
Comments on the above framework are to be sent by 08 March of that year need not be from the duly audited
August 2019. Financial Statement.
https://www.sebi.gov.in/reports/reports/jul- l Only in case of Return of Deposit information
2019/consultative-paper-on-policy-proposals-with- contained therein as on 31st March of that year should
respect-to-resignation-of-statutory-auditors-from-listed- be from duly audited financial statement of the
entities_43604.html company.
4. ICAI Revised Publications on Companies Act Also in order to provide guidance to members, the Auditing
2013 and Assurance Standards Board of ICAI has issued
The Corporate Laws and Corporate Governance IllustrativeAuditor's Certificate on Return of Deposits.
Committee of the ICAI has revised its following https://www.icai.org/new_post.html?post_id=15722&c_i
publications: d=219
(a) Revised Guidance Note on Division I - Non Ind AS 7. Amendment to Schedule VII of Companies Act
Schedule III to the CompaniesAct, 2013 2013
https://resource.cdn.icai.org/55730clcgc45064a.pdf The MCA has amended Schedule VII of the Companies
(b) Revised Guidance Note on Division II - Ind AS Act, 2013, to add, disaster management, along with relief,
Schedule III to the CompaniesAct, 2013 rehabilitation and reconstruction activities, to the list of
https://resource.cdn.icai.org/55731clcgc45064b.pdf permitted activities that qualify as Corporate Social
(c) Frequently Asked Questions on the Companies Act, Responsibility (CSR) activities by Companies.
2013 http://www.mca.gov.in/Ministry/pdf/Notification_060620
The above publication pertaining to FAQ on the 19.pdf
Companies Act, 2013 - July 2019, has been revised keeping
in view the number of developments that have taken place, Contributed by
including the passage of Companies (Amendment) Act,
2017. CA. Chintan Patel

[email protected]

www.icaiahmedabad.com 04 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

G S T GST Updates

GS T

Some Important AAR samples and hence the provisions of 17(2) read with
Ride 42 of the CGST Rules, 2017 or clause (h) of
Operation of Gaming Zone in mall at Mubail - Held as Section 17 (5) of the CGST Act, 2017 will not be
"'amusement facilities" applicable. (GOLDEN TOBACCO LIMITED -
MAHARASHTRA AUTHORITY FOR ADVANCE
- GST rate @ 28 % w.e.f. 25.1.2018 (BANDAI RULING)
N A M C O I N D I A P R I VAT E L I M I T E D -
MAHARASHTRA AUTHORITY FOR ADVANCE Prohance - D (Chocolate) - Nutritional powder for
RULING). people with Diabetics - Sold in powder form and is
required to be mixed with drinking water and used as a
Mounting of Bus/ Truck/Ambulance body on the partial meal replacement/Breakfast replacement /
chassis - Bus/ Truck /Ambulance body fabricated by Evening snack/healthy bedtime snack or as directed
collecting job work charges including inputs required by a Physician/dietician for diabetics. Prohance-D
for such fabrication work and in no case the ownership will be known in the market as "diabetic Product" as it
of the chassis transferred by Principal to the job is sugar free, low on GI (Glycemic Index) and
worker will be taxable under SAC 998881 - "Motor contains Isomaltulose - a low glycemic carbohydrate
vehicle and trailer manufacturing services" and under that helps minimize blood sugar spikes -
entry no. 26(ii) as "Manufacturing services on Classification of Prohance - D (Chocolate) is under
physical inputs (goods) owned by other" it is taxable chapter heading 2106 90 50. (Sun Pharmaceutical
@18%(9% under CGST and 9% under SGST Act). Industries Ltd. - MAHARASHTRA AUTHORITY
(M/s.Sanghi Brothers (Indore) Private Limited - FORADVANCE RULING).
A U T H O R I T Y F O R A D VA N C E R U L I N G -
MADHYA PRADESH) Honorable Gujarat High Court in case of AAP and
Co., Chartered Accountants Vs. UOI and 3 others
Offer of extra quantity in addition to normal quantity decided that GSTR-3B is not a return u/s 39 and
against same consideration, as a taxable supply to _hence due date for availment of credit u/s 16(4) will
Distributors - Marketing strategy to promote brands - be due date of filling an annual return i.e. 31.08.2019
For example, 100 packs for an agreed price of say for FY 2017-18.
Rs.5000/-, supplying 110 packs of Cigarettes without
recovering any additional cost from the Distributors. - Contributed by
Paying GST and Compensation Cess on Rs. 5000/- at
applicable rate. - Held, extra packs of Cigarettes will CA. Monish S. Shah
not be leviable to GST. -The extra packs of cigarettes
will not be considered as exempt supplies or free [email protected]

www.icaiahmedabad.com 05 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

Income Tax Updates

1. Circular No. 11/2019 dated 19.06.2019 - turnaround time taken in processing of Returns and
Clarification regarding non-allow ability of set-off of issuance of refunds.
losses against the deemed income under section 115BBE ii. CPC 2.0 Project will process ITRs in a consistent,
of the Income-tax Act, 1961 prior to assessment-year uniform, rule driven, identity blind manner. This would
2017-18-reg. ensure fairness in tax treatment to all taxpayers irrespective
With effect from 01.04.2017, sub-section (2) of section of their status.
115BBE of the Income-tax Act, 1961 (Act) provides that iii. The CPC 2.0 Project would significantly improve
where total income of an assesse includes any income transparency and accountability of Income-tax Department
referred to in section(s) 68/69j69A/69B/69Cj69D of the as processing of returns and issuance of refunds would take
Act, no deduction in respect of any expenditure or place without any interface with the Department.
allowance or set off of any loss shall be allowed to the iv. CPC 2.0 Project would adhere to international best
assesse under any provisions of the Act in computing the practices and standards. It would keep the taxpayer
income referred to in section 115BBE(1) of theAct. informed by providing processing status update, speedy
Thus keeping the legislative intent behind amendment in communication using mobile app, email, SMS and through
section 115BBE(2) vide the Finance Act, 2016 to remove website of the Income-tax Department.
any ambiguity of interpretation, the Board is of the view v. CPC 2.0 Project envisages setting up of integrated
that since the term 'or set off of any loss' was specifically contact centres for taxpayer's assistance and undertaking
inserted only vide the Finance Act 2016, w.e.f. 01.04.2017, outreach programs involving taxpayers and other
an assesse is entitled to claim set-off of loss against stakeholders through digital media in an effective manner.
income determined under section 115BBE of the Act till Thus, CPC 2.0 Project besides promoting the Government
the assessment year 2016-17. objective of promoting voluntary tax-compliance culture
https://incometaxindia.gov.in/communications/circular/ci would also smoothen the process of e-filing and processing
rcular_11_2019.pdf of ITRs and will also bring about a significant enhancement
2. Circular No. 12/2019 dated 19.06.2019 - in services to the taxpayers.
'Assessment of Firms'-some of the important issues to http://www.pib.nic.in/PressReleseDetail.aspx?PRID=157
be kept under consideration by the Assessing Officers 5482
while framing assessment-reg.- 4. Press Release dated 04.06.2019 - CBDT extends
C&AG had carried out a Performance Audit regarding due date for filing of TDS statement in Form 24Q
'Assessment of Firms' under the Income Tax Act, 1961 The Central Board of Direct Taxes (CBDT) had earlier
('Act') and in its Report NO.7 of 2014, has made certain notified amended Form 24Q for filing TDS statement by
suggestions so that in future, assessments in these cases are deductors of tax vide Notification No. 36/2019 dated 12th
handled in a more effective manner by the Assessing April, 2019. Subsequently, the File Validation Utility
Officers (AOs). Various recommendations made by the (FVU) for online filing of Form 24Q was updated by NSDL
C&AG in its Report have been duly considered by the on 21st of May, 2019.
Board. In order to improve the quality of assessments being With a view to redress genuine hardship of deductors in
framed in these cases and also to reduce the scope for timely filing of TDS statement in Form 24Q on account of
committing errors, the Board desires that Assessing revision of its format and consequent updating of the File
Officers should duly take into consideration the following Validation Utility for its online filing, CBDT has ordered
issues while making assessments in case of firms. Please the following:
refer the below mentioned link. (i) Extended the due date of filing of TDS statement in Form
https://incometaxindia.gov.in/communications/circular/ci 24Q for financial year 2018-19 from 31st of May, 2019 to
rcular_12_2019.pdf 30th of June, 2019 and
3. Press Release dated 24.06.2019 – E-filing of (ii) Extended the due date for issue of TDS certificate in
Income Tax Form 16 for financial year 2018-19 from 15th of June, 2019
Recently, in January, 2019, the Government has approved to 10th of July, 2019.
Integrated E-filing & Centralized Processing Centre (CPC) http://www.pib.nic.in/PressReleseDetail.aspx?PRID=157
2.0 Project of the Income Tax Department. The details of 3464
the CPC 2.0 Project are:
i. CPC 2.0 Project envisages pre-filling of ITRs by Contributed by
the Income-tax Department and its acceptance by the
taxpayer so as to improve accuracy of information CA. Mohit Tibrewal
contained in the Return and drastically reduce the existing
[email protected]

www.icaiahmedabad.com 06 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

Income Tax Quick Connect

At present there is no liability on an individual or Permanent Account Number (PAN) and shall not be
Hindu undivided family (HUF) to deduct tax at source required to obtain Tax deduction Account Number
on any payment made to a resident contractor or (TAN).
professional when it is for personal use. Further, if the
individual or HUF is carrying on business or For this purpose “contract” shall have the meaning
profession which is not subjected to audit, there is no assigned to it in clause (iii) of the Explanation to
obligation to deduct tax at source on such payment to a section 194C;
resident, even if the payment is for the purpose of
business or profession. Due to this exemption, For this purpose “professional services” shall have the
substantial amount by way of payments made by meaning assigned to it in clause (a) of the Explanation
individuals or HUFs in respect of contractual work or to section 194J.
for professional service is escaping the levy of TDS,
leaving a loophole for possible tax evasion. To plug TDS shall be deducted at the time of credit of such sum
this loophole, it is proposed to insert a new section
194M in the Act to provide for levy of TDS at the rate or at the time of payment of such sum in cash or by
of five per cent. on the sum, or the aggregate of sums,
paid or credited in a year on account of contractual issue of a cheque or draft or by any other mode,
work or professional fees by an individual or a Hindu
undivided family, not required to deduct tax at source whichever is earlier.
under section 194C and 194J of the Act, if such sum, or
aggregate of such sums, exceeds fifty lakh rupees in a This amendment will be effective from 01st September,
year. However, in order to reduce the compliance
burden, it is proposed that such individuals or HUFs 2019.
shall be able to deposit the tax deducted using their
Contributed by

CA. Kushal Reshamwala

[email protected]

International Taxation

Ratification by India of the Multilateral Instrument

- The Indian Government ratified the country deposits the ratified copy with the OECD. In
Multilateral Convention (MLI) to Implement Tax context of India, for few of the CTA's depending upon
Treaty Related Measures to Prevent Base Erosion and the date of deposit of ratified copy with the OECD, the
Profit Shifting (BEPS) which was signed by Hon'ble provisions of MLI will be effective from 1st April
Finance Minister at Paris on 7th June 2017 on behalf of 2020. Once the MLI will be effective, the provisions
India, along with representatives of around 67 of MLI shall affect the provisions of the relevant tax
countries. treaties.

- On 25th June 2019, India has deposited the Source:https://www.incometaxindia.gov.in/Lists/Pre
Instrument of Ratification to Organisation for ss%20Releases/Attachments/770/PressRelease-
Economic Co-operation and Development (OECD), Ratification_India_Multilateral_Convention_3_7_19
Paris along with its Final positions in Covered Tax .pdf
Agreements(CTAs), Reservations, Options and
Notifications under the MLI, as a result of which MLI Contributed by
will enter into force for India on 1st October 2019 and
the effective date will depend on when the other CA. Twinkle Shah

[email protected]

www.icaiahmedabad.com 07 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

Quick Connect RERA

Real Estate (Regulation and Development) Act, 2016 (RERA,2016)

Reporting of Loan and Lenders in Form 3 CA celerity on reporting of unsecured loan taken for the
Certificate Under RERA project as purpose of this amendment was for
reporting of encumbrance on the project so the home
The Gujarat Real Estate Regulatory Authority has buyer will be aware of the encumbrances on project
amended the Gujarat Real Estate Regulatory units.
Authority (General) Regulations, 2017 and as per
Gujarat Real Estate Regulatory Authority (General) To bring the celerity on the reporting of unsecured loan
(Amendment) Regulations, 2019 dated 31st GujRERA authority has come up with Guidance-1
May,2019. dated 9th July-2019 on “Disclosure of Project Loan
and Lender details & Unit Encumbrance Reporting “
As a part of this amendment now, CAs are required to
provide Loan and Lenders details to GujRERA as part Following are the clarifications are given by guidance-
of reporting encumbrance on the Project. 1

Following information's are required to be reported in 1. Any Loan (Secured or Unsecured) against
respect of Loan and Lenders: - which interest is paid and the same is considered as a
part of cost incurred & paid, the same needs to be
1. Lender Name reported in Form-3.
2. Loan Agreement: - Loan agreement to be
uploaded 2. Details of Loan which is taken for project but
3. Mortgage Deed: - Mortgage Deed to be direct encumbrances is not created on unit, is also
uploaded required to be reported. (Loan taken by deposit of title
4. Amount of Loan taken for project as per deed of land/equitable mortgage).
agreement (INR)
5. Loan disbursal received 3. Interest paid on partner capital is not part of
6. Loan repaid cost of project as the same is not borrowed fund so no
7. Balance of Loan (Outstanding)(INR) reporting of partner capital.
8. Total Number of Units Mortgaged
Reporting is to be done by considering the following
With respect to above amendment there was no points: -

www.icaiahmedabad.com 08 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

SN Type of property Reporting Documents to be Disclosure of

mortgaged requirement in provided along with Release of

Form 3 Form-3 Mortgage

A Project Units (all or Yes Sanction Letter, Loan When AFS of
partial)
Agreement and individual unit is

Mortgage deed made

B Project Units and Land Yes Sanction Letter, Loan When AFS of
Agreement and individual unit is
Mortgage deed made and for land

by the time of
completion of

project or
undertaking to pay

the liability

C Project Land Yes* Sanction Letter, Loan land by the time of
Agreement and completion of
Mortgage deed project or

undertaking to pay
the liability

D Nil Yes* List of Lender along NA
In case of with amount of Loan

Unsecured Loan ** ***

* In form 3 CACertificate details for number of unit's Ш If any charges is created on apartment, plot or
building after the execution of agreement to sale , the
mortgage will be “0” (Zero) as no units are same will not affect the right and interest of the allottee
who has taken or agreed to take such apartment, plot or
mortgaged. building.-Section-11 (4)(h)
Ш Compensation is payable by the promoter to
** Only when interest is payable on unsecured loan allottee, if any loss is caused to allottee due defect title
of land –Section 18(2)
and the same is charged to project cost incurred & Paid Ш The details of encumbrances on the land on
which development is proposed- Rule 3(1)(e) of
*** List containing the Name of Lender along with GujRERA Rules,2017- This information is to be
provided for the registration of project.
amount of loan taken to be made with the name “Loan Ш Before revocation of project or project taken by
the authority interest of the parties who has financed
agreement” and the same is to be uploaded in PDF the project will be taken care- Proviso to Rule 8(2)
Ш Terms and condition as per Clause 13(iii) and
format. clause 17 of Model form of agreement.

Where only land is mortgaged, loan agreement and

mortgage deed need to be verified to check whether

any charge is created projects units to be constructed

in future.

1. Other Relevant provision of RERA Act and

GujRERA Rule and Regulation, which clarify that

why and how Project Loan and Lender details & Unit

Encumbrance Reporting is important.

Ш Declaration by promoter for legal title of land- https://gujrera.gujarat.gov.in/resources/staticpage/atta
Section 4(2)(l)(A) chments/Guidance_-
Ш Declaration by promoter for that land is free of _1__Form_3__CA_Certificate.pdf
all encumbrances –Section 4(2)(l)(B)
Ш Liability of promoter for payment of all Contributed by
outgoing charges, including mortgage loan and
interest on mortgage or other encumbrances –Section CA. Mahadev Birla
11(4)(g)- whether the physical possession of real
estate project is transferred to association of allottee or [email protected]
not

www.icaiahmedabad.com 09 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

FEMA Updates

(A) Annual Return on Foreign Liabilities and audited accounts.
Assets Reporting by Indian Companies1 Further, non filing of Form FLA would be treated as
Under FEMA provisions, Indian resident companies/ contravention of FEMA and is subject to payment of
LLPs / SEBI registered Alternative Investment Funds Late Submission Fees (LSF) or compounding,
(AIFs), Partnership Firms, etc. who have received depending upon the period of contravention.
Foreign Direct Investment (FDI) or made Overseas RBI has vide notification dated 28 June, 2019 has
Direct Investment (ODI) are required to furnish substituted the existing email-based reporting system
certain financial information vide an Annual Return, for submission of the FLA return by the web-based
known as Annual Return on Foreign Liabilities and system online reporting portal namely Foreign
Assets (FLA). Liabilities and Assets Information System (FLAIR)
The said Form FLA was to be filed in excel based system. The new FLA return contains certain
format as prescribed by RBI and was required to be additional information required to be submitted.
submitted through e-mail on or before 15 July Further, due to recent changes in reporting platform
following the end of financial year. for submission of Form FLA, RBI has extended the
As the said Form FLA contained financial details, if last date for filing the FLA return for financial year
the accounts of entity required to file Form FLA were 2018-19 to 31 July 2019.
not audited on or before the due date of filing of Form Snapshot of key changes made in new FLA return vis-
FLA, the said form could be submitted based on à-vis old FLAreturn are summarised as under:
unaudited (provisional) account. Once the accounts
get audited and there are revisions from the Contributed by
provisional information submitted by the company,
company can submit the revised FLA return based on CA. Saumya

[email protected]

https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11607&fn=5&Mode=0 | https://flair.rbi.org.in/fla/faces/pages/login.xhtml

Additional reporting requirements in updated Form FLA

Sr. Particulars Additional Disclosures

1 Details of merger / amalgamations · Details of merger / amalgamation, number of
companies merged and name of merged entity
2 No. of employees on payroll
· Total number of employees on payroll for FY 2018-
3 Any entity which has outstanding 19 and FY 2017-18
investments made under the FDI Scheme in
India by Non-resident Direct investors, who · No. of foreign direct investors during the year (10%
were individually holding 10 per cent or or more Equity participation)
more ordinary/equity & preference shares
· Month and Year of receiving FDI first time (in your
company)

4 Any entity which has made FDI during · Disinvestments in India during the year
current year or in prior years.

5 Any entity where single foreign direct · Domestic Sales
investor holding is more than 50% in total · Exports
equity (i.e. if reporting Indian company is · Domestic Purchase
subsidiary of foreign company) · Imports

6 Any entity which has made ODI (10% or · Month and Year of ODI made first time (by reporting
more equity holding) company)

7 Any entity which has made ODI during · Disinvestments abroad during the year
current year or in prior years.

www.icaiahmedabad.com 10 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

Technique of the month

Auto Reply through Canned response

This feature works by setting up a filter in Gmail Go to settings > Filters and blocked Addresses >
so that when certain conditions are met (like Create a filter > Define the criteria for the email you'd
when a specific person emails you or the email like to reply automatically in the box that pops up as
has specific subject ), a message of your choosing is shown in the below screen. To send Auto reply to
automatically sent back to that address; these are certain subject i.e mention the word in subject line
called canned responses. that is registration in our case and press create filter (as
In our field we can use it for sending the list of shown in below image )
documents required for company registration who
send us mail with subject registration or Auto reply for We can also create filter with different perspective and
job placements , Data or content sharing in the lecture options also as shown in picture such as to, sender that
etc. Its like codeword used for data Sharing is if you want to reply only to the specific person or has
Go to Settings > Advanced > Select Enable Canned the words etc
responses (Templates ) > Save changes . Now that Select the box to the left of Send Template it to, select
‘Canned Responses’ are enabled, you can create a new the canned response from the drop-down list, and
email by clicking the ‘Compose’ icon in the upper left select Create filter. Email matching the criteria you've
hand corner and typing out the message you want to be set will now get Canned response .i.e only mails
automatically sent out. Once you’re finished, click on having word registration in subject line.
the three dots in the email window to bring up the If you want to stop sending the canned response than
email options. Select ‘Canned responses’ and then ‘ there are three options
save draft as Template ' and than ' Save as new A. Delete the Draft mail
Template '. This email will be automatically saved in B. Delete the filter created for specific criteria
Drafts . C. Disable Canned response from Advanced >
Attaching files: you cannot auto email attachments. Settings
So, any text within the canned response will send out Canned responses originate from an address that's still
but not any attachments; this includes inline images as yours, of course, but with a slightly altered email
well. For this if you want to send attachments you can address. For example, if your normal address is
copy the shareable link in the template mail [email protected], sending out auto emails will change
the address to [email protected].
Contributed by Lets Live check it by sending a mail at my registered
mail id [email protected] with a subject
CA. CS. Hemlata Dewnani catalyst and you will get theAuto reply from it

[email protected]

www.icaiahmedabad.com 11 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

Important Due dates for Compliance

Sr. No. Act Compliance Due Date
7th June, 2019
1 GujRERA In case of Promoter : Quarterly Return for Project to be filled with 7
days from the end of the Quarter allocated by RERA Authority 7th June, 2019
2 GujRERA In case of Agent : Half Yearly Return to be filled with 7 days from the
end of the Half year allocated by RERA Authority depending on 7th June, 2019
3 Income Tax Registration Date
Tax Deducted/Collected (TDS/TCS) during the month of May-19 to be 10th June, 2019
4 GST deposited
GSTR-7 for the month of May-19 for persons required to deduct TDS 10th June, 2019
5 GST under GST
GSTR-8 for the month of May-19 for e-commerce operator required to 11th June, 2019
6 GST collect TCS under GST 13th June, 2019
7 GST GSTR-1 for the month of May-19 for taxpayer having Annual 14th June, 2019
8 Income Tax Aggregate Turnover exceeding Rs.1.50 Crore
GSTR-6 for the month of May-19 for Input Service Distributor (ISD) 15th June, 2019
9 Income Tax Furnishing of Challan-cum-Return for Tax Deducted (TDS) u/s 194IA 15th June, 2019
10 Income Tax and 194IB during the month of April-19 15th June, 2019
11 MCA/ROC Quarterly TDS Certificate (other than Form 16 - TDS on Salary) for 15th June, 2019
12 PF / ESIC Quarter ended on 31st March, 2019 20th June, 2019
13 GST First Installment of Advance Tax for F.Y. 2019-20 20th June, 2019
14 GST 29th June, 2019
15 MCA/ROC Filling of Active INC-22A for Companies 30th June, 2019
16 GST 30th June, 2019
17 GST Payment of PF / ESIC for the month of May-19 30th June, 2019
18 Income Tax
Payment of GST & Filling of GSTR-3B for the month of May-19 30th June, 2019
19 Income Tax GSTR-5 & 5A by Non-resident taxable person & OIDAR for the month
of May-19
Filling of Form DPT-3, for Acceptence of Deposits by Companies

GST Annual Returns -GSTR-9 / 9A for F.Y. 2017-18

GST Reconciliation Statement - GSTR-9C for F.Y. 2017-18
Furnishing of Challan-cum-Return for Tax Deducted (TDS) u/s 194IA
and 194IB during the month of May-19
Filling of Quarterly TDS Return 24Q for Quarter ended on 31st
March, 2019

www.icaiahmedabad.com Contributed by JULY- 2019

CA. Mahavir Shah

[email protected]

12

AHMEDABAD BRANCH OF WIRC OF ICAI

Motivational Story

Prime Statements of sadhguru

It is unnecessary for each individual to have their own Put your hundred percent efforts. Don’t leave
purpose. Life has its own purpose and it’s our business proportion of your energy and capability to luck.
to fulfil it.
You need to put right kind of effort at right time and
If your life is an ‘expression of joy’then you don’t look right place. Just labour is not going to take you
what you can do, you look at what is needed to be done anywhere.
and you do that well.
You should constantly look for ways to enhance your
Life is long for miserable people. If you are a joyful perception and intelligence. Do not try to become
human being it’s very brief. capable of something and rest will happen anyway.
You should not be aspiring for success. It’s a miserable
We make up things to identify overself with many way to structure your life.
things that we are not. We need to start identifying
things about ourself. If you are consistently concious about your mortality
then there is no way you can’t look at deeper
If you want to function at highest level, you must dimensions of life.
discover yourself. An individual is in-divisible who
can’t be reinvented but has to be rediscover. 7 Rules of Success From: SADHGURU JAGGI
VASUDEV
The moment you took an identity, your mind works
only around what you are identified with but there is 1. Be an Individual
something more fundamental which is the individual. 2. Build the Pride
Discover the deeper potential in yourself. Never go out 3. Don’t take life seriously
to be like somebody else. Be yourself in your full 4. Don’t wait for Disaster to strike
potential. 5. Don’t complain
6. Fix your inner self
If you want to know life in its entirety, you need to 7. Success is the ideal
know other dimensions of intelligence.
Contributed by
Human intellect functions only from the limited data
that is gathered. It can’t explore anything entirely new CA. CS. Hemlata Dewnani
so don’t limit yourself by intellect. Employ your
intelligence without the limitation of intellect. [email protected]

Upcoming Events

SR. DATE & DAY Name of the Seminar, FACULTY REGN. FEES CPE

Lecture Meeting, Etc.

1 Saturday, PQC ON INFORMATION SYSTEM AUDIT PRACTICAL TRAINING DECIDED BY DAAB, AS PER INSIDE 30

17thAugust, 2019 (PT) AT AHMEDABAD-17.08.2019 TO 15.09.2019 ICAI CIRCULAR

2 Monday, INTERNATIONAL STUDY TOUR - NETHERLANDS - GERMANY - AS PER INSIDE AS PER INSIDE 12

05thAugust, 2019 SWITZERLAND - 5TH AUGUST 2019 TO 13TH AUGUST, 2019 CIRCULAR CIRCULAR

3 Saturday, CONFERENCE ON GST AND TAX AUDIT AT MARIGOLD CA. Yash Dhadda, Rs. 300 + GST for 3

03rdAugust, 2019 AUDITORIUM, EKA CLUB, KANKARIA, AHMEDABAD ON Jaipur and CA. Aniket Members

03.08.2019 Talati, CCM,

Ahmedabad

4 Saturday, LECTURE MEETING ON AUDIT REPORT ON 03.08.2019 CA Rupen Shah and CA Rs. 200 + GST for 2

03rdAugust, 2019 Utsav Hirani Members

www.icaiahmedabad.com 13 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

Events in Images

2nd WORKSHOP ON GST ANNUAL RETURN AND AUDIT 27.05.2019 TO 06.06.2019

3rd WORKSHOP ON GST ANNUAL RETURN AND AUDIT 05.06.2019 TO 12.06.2019

CERTIFICATE COURSE ON IND AS INFORMATION SYSTEAM AUDIT
ON 08.06.2019 ON 08.06.19

www.icaiahmedabad.com 14 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

SEMINAR ON PMLA AND BENAMI PROPERTY WOMEN CA INDUSTRIAL VISIT TO

TRANSACTION ACT ON 08.06.2019 AMUL, ANAND ON 08.06.2019

FELICITATION OF OUR CRICKET TEAM ON WINNING
INTER BRANCH CRICKET CHAMPIONSHIP CUP ON 14.06.2019

WICASA MANAGING COMMITTEE 2019-20 ICAI COURSE ON BLOCKCHAIN TECHNOLOGY
NEW MCM ON 23.06.2019 FOR PROFESSIONAL ACCOUNTANTS ON 26.06.2019

ICAI CA DAY CELEBRATION ICAI CA DAY CELEBRATION
PRESS CONFERENCE ON 29.06.2019 BLOOD DONATION ON 30.06.2019

ICAI CA DAY CELEBRATION ICAI CA DAY CELEBRATION
YOGA & HEALTH SESSION ON 30.06.2019 ON 30.06.2019

www.icaiahmedabad.com 15 JULY- 2019

AHMEDABAD BRANCH OF WIRC OF ICAI

AHMEDABAD BRANCH OF WIRC OF ICAI
ICAI Bhawan, 123, Sardar Patel Colony, Nr. Usmanpura Under Bridge, Naranpura, Ahmedabad - 380 014
Ph.: 079-3989 3989, 2768 0946, 2768 0537 | E-mail: [email protected] | Web: www.icaiahmedabad.org

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.

www.icaiahmedabad.com 16 JULY- 2019


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