AHMEDABAD ICAI NEWS LETTER FOR THE MONTH OF MARCH-2019

The Institute of Chartered Accountants of India Vol. No. 6
Issue No. 01
(Set up by an Act of Parliament)
Ma`PrRc1ICh0E2/:0- 19
AHMEDABAD BRANCH

OF WIRC OF ICAI

e-Newsletter

Chairman’s Message OFFICE BEARERS

Warm Greeting from CA. Ganesh Nadar ! CHAIRMAN
With full sense of responsibility and commitment to deliver on 26th February, 2019, I have taken over CA. Ganesh Nadar
the charge as Chairman of the Ahmedabad Branch of WIRC of ICAI, the second largest branch of ICAI. 99744 77447
A day to remember and cherish about, Yes I am carrying a strong agenda to ensure a very simple
cause – betterment of our fraternity…..a mission to see our esteem Profession reach unparallel VICE CHAIRMAN
heights ! CA. Fenil Shah
It's a privilege to be here and I very well understand the level of commitment which have to be given by 89050 30507
me as a Team, in ensuring every act and deeds being done in a manner which gives and makes our
members to be proud to be a CA and builds brand CA in our society. SECRETARY
ICAI has changed guards and elected CA. Prafulla Chhajed as President and CA. Atul Gupta as Vice CA. Harit Dhariwal
President of ICAI. Both these leaders are one of the best and we would be seeing many visible changes 99789 42299
in months to come. I am fortunate to know personally CA. Prafulla Chhajed, he is a man of actions, a
man who has seen working at Branch, a grass root leader and hence he will be one of the finest TREASURER
President we have seen. A person who knows best for our members and students, will frame polices CA. Anjali Choksi
and ensuring it gets implemented and delivered during his tenure itself. 98257 73179
We also now have from Ahmedabad young and dynamic leaders elected and positioning themselves
in Central Council and Regional Councils. It starts with young dynamic Central Council Member CA. MEMBERS
Aniket Talati and three energetic young Regional Council Members CA. Hitesh Pomal, CA. Vikash Jain
and CA. Chintan Patel. Presently majority of our Managing Committee members have all worked CA. Bishan Shah
together with all our Central Council Member and Regional Council Members making the whole
Managing Committee a cohesive team to deliver best for our fraternity consistently for the whole tenure CA. Rahul Maliwal
of 3 years.
CA. Sunil Sanghvi

EX. OFFICIO MEMBERS
CA. Aniket Talati, CCM
98255 51448

CA. Hitesh Pomal, RCM
98240 49402

CA. Vikash Jain, RCM
93277 15892

CA. Chintan Patel, RCM
90999 21163

NEWSLETTER COMMITTEE

CHAIRMAN : CA. Rahul Maliwal
CO-CHAIRMAN : CA. Hemlata R. Dewnani
CONVENER : CA. Mohit Tibrewal

MEMBERS
Devam Sheth
Kushal Bhadrikbhai Reshamwala
Mahadev Prasad Birla
Mahavir Prafulchandra Shah
Neelo Porwal
Pranay Mehta
Sagar Chhatani
Twinkle S Shah
Vaibhav Shah

Editorial 2 Accounting, Auditing & 7 FEMA Updates 9 Direct Tax Updates 11 Important Due dates 15
Office Bearers 3 Company Law Updates for Compliance
Sub-Committees 4 RERA 13
International Taxation 10
GST Update 8 Updates Lets Excel in Excel 14 Photo Gallery 1
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AHMEDABAD BRANCH OF WIRC OF ICAI

Vol. No. 6 l Issue No. 01 l March 2019

At WIRC also, we now have new Chairperson CA Priti Savla, this certainly shows how we all have evolved ourselves towards women
empowerment.
Warmly welcoming all the Co – Chairmen and Conveners of various Committees of our Branch, it is heartening and satisfying to see Members
willing to participate in various activities.
Will always be a Team Player ! This whole year as Chairman would strive and ensure we have best Knowledge Share, better understanding of New
Practise Areas & Opportunities, every act and action is Brand Building of CA in Ahmedabad, getting Connected with Young Members & Members in
Industries, focus for Women CAs & their Empowerment and creating environment to ensure Fellowship & Networking.
Yes, March is a month of Bank Branch Audit and we from Branch will be bring our best program with best speakers thus ensuring our members
have one of the finest program of all time.
March is month of Holi - a festival of colour and a celebration that symbolizes the victory of devotion and virtue over evils. Wishing all our Members
“May all the seven colours of the rainbow come together this Holi and bless you and your family, life with happiness and joy – Have a Happy Holi”
Looking forward for happening best days ahead !
Thanks & Regards

CA. Ganesh Nadar
Chairman
Mission to take our esteem Profession to unparallel heights !

Editorial Message

Dear Members,
This Year chairman of the branch has blessed me with the responsibility of the Newsletter Committee. I sincerely accept the
same and want to assure that entire team of committee shall dedicatedly put the efforts to ensure best knowledge to share.
This month is not just beautiful in terms of the beauty nature beholds but also has many festivals that magnify the festivity of
the season. What makes India special is the diversity, along with it comes the variety of cultures and festivals of India.
Similarly it is beautiful for our profession in terms of the compliances we need to magnify in this month. This month is special
because of the compliance in all diverse fields of Accounting, Direct Taxation & Indirect Taxation.
March 1: International Yoga Day- Prepare ourselves mentally and physically at the start of this month for what it takes out of ud.
March 5: Shivratri- Destroy and cure all the defects crept in during the year
March 8: International Women's day- Bring parity to genders and balance to the books of accounts
March 20 Holika Dahan: Magical Evacuation of Prahlad from the fire & Tactical preparation of financial statements from the data received
March 21 Dhuleti & Parsi New Year: Symbolizing the triumph of our efforts & Focus on the renewal (amendmends) that a new year is going to
bring.
Happy Holi!
CA. Rahul Maliwal
Chairman, Newsletter Committee

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AHMEDABAD BRANCH OF WIRC OF ICAI

Vol. No. 6 l Issue No. 01 l March 2019

Office Bearers

2019-2022.

CA. Ganesh Nadar
Chairman

CA. Fenil Shah CA. Harit Dhariwal CA. Anjali Choksi
Vice Chairman Secretary Treasurer

Managing Committee Members

CA. Bishan Shah CA. Rahul Maliwal CA. Sunilkumar Sanghvi

Ex-Officio

CA. Aniket Talati CA. Pomal Shah CA. Vikash Jain CA. Chintan Patel 3
CCM RCM, WIRC RCM, WIRC RCM, WIRC

AHMEDABAD BRANCH OF WIRC OF ICAI

Vol. No. 6 l Issue No. 01 l March 2019

Sub-Committees for the year 2019-20

ACCOUNTING & AUDITING DIRECT TAX & INTERNATIONAL INDIRECT TAX COMMITTEE

Name Designation Name Designation Name Designation
CA. Hitesh Pomal Chairman
CA. Hardik Sutaria Co-Chairman CA. Sunil Sanghvi Chairman CA. Bishan Shah Chairman
CA. Krishnakant Solanki Convener
CA. Anand Sharma Member CA. Shaleen Patni Co-Chairman CA. Tarang Kothari Co-Chairman
CA. Bindesh Jain Member
CA. Bonykumar Shah Member CA. Vishal Mehta Convenor CA. Hem Chhajed Convener
CA. Brijesh Thakkar Member
CA. Kiransinh Chavda Member CA. Ashish Sharma Member CA. Abhinav Malaviya Member
CA. Paurav Shah Member
CA. Priyam Shah Member CA. Ayush Dhariwal Member CA. Akshatkumar Vithalani Member
CA. Rajan Shah Member
CA. Rathin Majmudar Member CA. Bankim Shah Member CA. Amish Khandhar Member
CA. Samip Shah Member
CA. Utsav Hirani Member CA. Deep Thakkar Member CA. Bhavesh Jhalawadia Member
CA. Vishank Patel Member
CA. Brijesh Thakar Member

CA. Dinesh Shah Member CA. Chintan Vasa Member

CA. Hardik Patwa Member CA. Darpan Shah Member

CA. Harshesh Jasvani Member CA. Gunjan Shah Member

CA. Harshit Sheth Member CA. Hardik Modh Member

CA. Hemendra Shah Member CA. Harsh Rathi Member

CA. Hitesh Shah Member CA. Hirenbhai Pathak Member

CA. Jainam Shah Member CA. Janakkumar Tanna Member

CA. Jay Dalwadi Member

CA. Jigar Shah Member CA. Jaykin Shah Member

CA. Jimit Shah Member CA. Jaykishan Vidhwani Member

CA. Ketan Mistry Member CA. Jenil Shah Member

CA. Marmik Shah Member CA. Jigar Shah Member

CA. Meghal Shah Member CA. Ketan Mistry Member

CA. Mehul Thakker Member CA. Labdhi Shah Member

WEBSITE & NEWSLETTER CA. Mahavir Shah Member

Name Designation CA. Mohit Balani Member CA. Meet Jadawala Member

CA. Rahul Maliwal Chairman CA. Mohit Mehta Member CA. Monish Shah Member

CA. Hemlata Dewnani Co-Chairman CA. Mohit Tibrewala Member CA. Mukesh Laddha Member

CA. Mohit Tibrewal Convener CA. Nilay Shah Member CA. Niral Parikh Member

CA. Pankaj Patel Member CA. Nitesh Jain Member

CA. Devam Sheth Member CA. Rahul Maloo Member CA. Pankajkumar Patel Member

CA. Harsh Kapadia Member CA. Rohit Maloo Member CA. Pooja Jajwani Member

CA. Kushal Reshamwala Member CA. Ronakkumar Kher Member CA. Pooja Shah Member

CA. Mahadev Prasad Birla Member CA. Pravinkumar DhandhariaMember

CA. Rushi Shah Member CA. Punit Prajapati Member

CA. Mahavir Shah Member CA. Saumya Sheth Member CA. Rahul Patel Member

CA. Neelo Porwal Member CA. Shail Shah Member CA. Rashmin Vaja Member

CA. Pranay Mehta Member CA. Sulabh Padshah Member CA. Surajkumar Jain Member

CA. Sagar Chhatani Member CA. Vicky Jain Member CA. Tapas Ruparelia Member

CA. Twinkle Logar Member CA. Vishank Patel Member CA. Urvashi Jindal Member

CA. Vaibhav Shah Member CA. Vivek Agrawal Member CA. Vishrut Shah Member

CA. Yash Parikh Member

CA. Zeal Bangadiwala Member CA. Zeal Bangdiwala Member

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Vol. No. 6 l Issue No. 01 l March 2019

INFORMATION TECHNOLOGY MEMBERS IN INDUSTRIES PROFESSIONAL DEVELOPMENT

Name Designation Name Designation Name Designation
CA. Anjali Choksi Chairperson
CA. Durgesh Pandey Co-Chairman CA. Vikash Jain Chairman CA. Bishan Shah Chairman
CA. Rushabh Shah Convener
CA. Abhishek Jain Member CA. Ravi Jain Co-Chairman CA. Mayurkumar Modha Co-Chairman
CA. Aditya Shah Member
CA. Anand Sharma Member CA. Sunit Shah Convener CA. Bhavesh Rathod Convener
CA. Ankur Khakhar Member
CA. Charmi Doshi Member CA. Darshit Khetani Convener CA. Ami Bodar Member
CA. Gopal Baldi Member
CA. Jay Parekh Member CA. Arpit Bhahmbhatt Member CA. Ashish Shah Member
CA. Jaykishan Vidhwani Member
CA. Kaushal Trivedi Member CA. Chetan Jagetiya Member CA. Chintan Lakhani Member
CA. Ketan Mistry Member
CA. Manishkumar Dubey Member CA. Dipen Shah Member CA. Chintan Thakkar Member
CA. Monil Shah Member
CA. Mukesh Dholakiya Member CA. Hashmat Aswani Member CA. Chintankumar Shah Member
CA. Nisarg Shah Member
CA. Riken Patel Member CA. Dhaval Limbani Member
CA. Sachin Soni Member
CA. Sarthak Bhansali Member CA. Homesh Mulchandani Member CA. Disha Shah Member
CA. Shivang Chokshi Member
CA. Silva Shah Member CA. Kalpeet Doshi Member CA. Hemang Shah Member
CA. Sulabh Patel Member
CA. Vedant Parikh Member CA. Mahavir Shah Member CA. Hiteshkumar Shah Member
CA. Vishal Langalia Member
CA. Vishank Patel Member CA. Mayank Patel Member CA. Jigar Limbachiya Member
CA. Zalak Parikh Member
CA. Neerav Shah Member CA. Jigneshkumar Thumar Member

CA. Nikhar Agarwal Member CA. Kumar Manish Member

CA. Nimesh Bhavsar Member CA. Kunal Shah Member

CA. Ninad Parikh Member CA. Malav Desai Member

CA. Sambhav Golecha Member CA. Manan Shah Member

CA. Shivam Soni Member CA. Manojbhai Chaudhary Member

CA. Vipul Ranka Member CA. Mukeshkumar Dharade Member

CA. Nirav Shah Member

POST QUALIFICATION COURSE CA. Rahil Shah Member

Name Designation CA. Rahul Shah Member
CA. Chintan Patel Chairman
WICASA CA. Jaykin Shah Co-Chairman CA. Rajiv Tanna Member
CA. Divyang Shah Convener
Name Designation CA. Ashish Shah Member CA. Rikinkumar Patel Member
CA. Deep Thakkar Member
CA. Bishan Shah Chairman CA. Drashti Sanghvi Member CA. Rinal Jhaveri Member
CA. Gaurav Kanudawala Member
Mentor CA. Gaurav Mehta Member CA. Ronak Shah Member
CA. Harshit Dalal Member
Mentor CA. Silva Shah Member CA. Siddharth Modi Member

Agrawal Nikita Vice Chairman

Mehta Devanshi Kumarbhai Jt. Secretary CA. Silva Shah Member

Bhanushali Vishal H Jt. Secretary CA. Tushar Shah Member

Patel Trupil Kirankumar Treasurer CA. Utkarsh Desai Member

Agarwal Ravi Shrichand Member CA. Vibha Pandey Member

Nagor Rahul Ishvarbhai Member

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AHMEDABAD BRANCH OF WIRC OF ICAI

Vol. No. 6 l Issue No. 01 l March 2019

WOMEN MEMBERS EMPOWERMENT YOUNG MEMBERS SKILLS AND INNOVATION DEVELOPMENT CA. Raj Shah Member
CA. Rohan Thakkar Member
Name Designation Name Designation CA. Ronak Jain Member
CA. Anjali Choksi Chairperson CA. Fenil Shah Chairman CA. Rushabh Sharedalal Member
CA. Kaumudi Parikh Co-Chairperson CA. Palak Pavagadhi Co-Chairman CA. Sahil Gala Member
CA. Silva Shah Convener CA. Rinkesh Shah Convener CA. Siddharth Panchal Member
CA. Hetal Kotak Convener CA. Harshid Patel Convener CA. Siddharth Shah Member
CA. Akta Patel Member CA. Nilay Shah Convener CA. Vedant Parikh Member
CA. Ami Desai Member CA. Abhishek Goyal Member CA. Vipul Ranka Member
CA. Charmi Doshi Member CA. Amita Shah Member CA. Vivek Vithlani Member
CA. Dipti Shah Member CA. Anand Sharma Member
CA. Disha Shah Member CA. Aneri Sheth Member CPE Designation
CA. Hema Shah Member CA. Deep Shah Member Chairman
CA. Hiral Gajera Member CA. Devang Sanghvi Member Name Co-Chairman
CA. Jinal Shah Member CA. Divyang Shah Member CA. Rahul Maliwal Convenor
CA. Krishna Khandwala Member CA. Dharmik Vora Member CA. Neerav Agrawal Member
CA. Mansi Thakkar Member CA. Harshad Maloo Member CA. Vikas Asawa Member
CA. Niti Ajmera Member CA. Hem Chhajed Member CA. Abhishek Chopra Member
CA. Pooja Shah Member CA. Himanshi Agarwal Member CA. Anil Choudhary Member
CA. Pranali Thakore Member CA. Hitixa Raja Member CA. Ankitkumar Thakkar Member
CA. Praneeta Shukla Member CA. Jainam Shah Member CA. Arpan Bhavsar Member
CA. Purvi Shah Member CA. Janak Tanna Member CA. Bhavik Somani Member
CA. Reshma Bellani Member CA. Jaykin Shah Member CA. Chetan Jagetiya Member
CA. Shilpa Makadia Member CA. Jaykishan Vidhwani Member CA. Chintan Thakkar Member
CA. Shruti Gandhi Member CA. Jeetesh Chopra Member CA. Chirag Jain Member
CA. Silva Shah Member CA. Jigar Shah Member CA. Dheeraj Bangar Member
CA. Vidhi Desai Member CA. Kaival Shah Member CA. Dilip Chechani Member
CA. Vibha Pandey Member CA. Kapil Rana Member CA. Girish Gore Member
CA. Zalak Parikh Member CA. Kaushal Trivedi Member CA. Hiral Gajera Member
CA. Maulin Shah Member CA. Hiren Pathak Member
LIBRARY & STUDENTS CA. Mayur Vekareeya Member CA. Manish Dubey Member
CA. Milind Shah Member CA. Mitt Patel Member
Name Designation CA. Mohit Balani Member CA. Mohil Ramniwash Member
CA. Moxi Shah Member CA. Narayan Kela Member
CA. Fenil Shah Chairman CA. Mulen Shah Member CA. Parag Jagetiya Member
CA. Nikhil Makhija Member CA. Prignesh Mandowara Member
CA. Harshid Patel Co-Chairman CA. Nikhil Shah Member CA. Priyam Bhatt Member
CA. Nimesh Hariya Member CA. Rathin Majmudar Member
CA. Nidhiben Shah Convener CA. Nimit Agarwal Member CA. Rounak Mandowara Member
CA. Pankaj Patel Member CA. Sachin Dharwal Member
CA. Kaival Shah Member CA. Parag Prajapati Member CA. Sahil Gala Member
CA. Paurav Shah Member CA. Utkarsh Desai Member
CA. Nilaykumar Shah Member CA. Poorav Doshi Member CA. Vaibhav Dixit
CA. Pratibha Sisodia Member CA. Yogesh Shah
CA. Rachit Gohil Member

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AHMEDABAD BRANCH OF WIRC OF ICAI

Vol. No. 6 l Issue No. 01 l March 2019

Accounting, Auditing & Company Law Updates the process to be followed while adjudication of penalties by the
adjudicating officer. The rules will come into force from the date of
(Contributed by CA. Chintan Patel) its publication in the Official Gazette.

1. Withdrawal of the ICAI's announcement regarding clarification http://www.mca.gov.in/Ministry/pdf/AdjudicatioPenalties2019_
on applicability of rotation principles on a company as per 20022019.pdf
Section 139 of the Companies Act, 2013
3. Companies (Prospectus and Allotment of Securities) Second
The Corporate Laws and Corporate Governance Committee of the Amendment Rules, 2019
ICAI had issued a clarification on applicability of rotation
principles on a company as per Section 139 of the Companies The MCA has issued Companies (Prospectus and Allotment of
Act 2013. The MCA, vide its letter dated 15 February 2019, has Securities) Amendment Rules, 2019. The rules will come into
stated “the issuance of any clarification on different provisions of force from the date of its publication in the Official Gazette.
Companies Act falls in the domain of this Ministry, and ICAI is
neither empowered nor competent to issue such clarification and http://www.mca.gov.in/Ministry/pdf/ProspectusAllotmentRule20
especially so without prior consultation with this Ministry”. In 19_20022019.pdf
response to the MCA letter, the ICAI has now withdrawn the said
clarification. 4. Ind AS Technical Facilitation Group (ITFG) Clarification Bulletin
18
https://www.icai.org/new_post.html?post_id=15450&c_id=21
9 The ITFG has considered various implementation issues received
from members. The ITFG, after due deliberations, issued
2. Companies (Adjudication of Penalties) Amendment Rules, clarifications on five Ind AS issues through its bulletin 18.
2019
https://resource.cdn.icai.org/54022indas43379.pdf
The MCA has amended the Companies (Adjudication of
Penalties) Rules, 2014. The Companies (Adjudication of
Penalties) Amendment Rules, 2019 amends rule 3 to lay down

5. Exposure drafts issued by ICAI for comments:

Sr. Particulars Last date of Link
No. comment

1. Definition of Business (Amendments to Ind AS 103) April 6, 2019 https://resource.cdn.icai.org/
54299asb43587indas103.pdf

2. Definition of Material (Amendments to Ind AS 1 and Ind AS 8) April 6, 2019 https://resource.cdn.icai.org/
54298asb43587indas8.pdf

3. Guidance Note on Accounting of Political Parties April 6, 2019 https://resource.cdn.icai.org/
54300asb43587indasapp.pdf

4. Standard on Internal Audit (SIA) 110, Nature of Assurance March 28, 2019 https://resource.cdn.icai.org/54291iasb-sia110.pdf

5. Standard on Internal Audit (SIA) 230,Objectives of Internal Audit March 28, 2019 https://resource.cdn.icai.org/54292iasb-sia230.pdf

6. Standard on Internal Audit (SIA) 360,Communication March 28, 2019 https://resource.cdn.icai.org/54294iasb-sia360.pdf
with Management

7. Standard on Internal Audit (SIA) 370,Reporting March 28, 2019 https://resource.cdn.icai.org/
Results to Management 54295iasb-sia370.pdf

6. ICAI : Filing of E-Form ACTIVE on or before 25.04.19 Verification) on or before 25.04.19 to enable common public to
be aware of KYC (Know Your Company) status of the companies
Any company incorporated on or before the 31.12.17 shall file and their directors.
the particulars of the company and its Registered Office, in E-
Form ACTIVE (Active Company Tagging Identities and https://resource.cdn.icai.org/54239clcgc230219.pdf

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AHMEDABAD BRANCH OF WIRC OF ICAI

Vol. No. 6 l Issue No. 01 l March 2019

GST Update and manufactured tobacco substitutes (HSN 24).

(Contributed by CA. Monish S. Shah) Other Features of this scheme are as follows:

SPECIAL GST COMPOSITION SCHEME LAUNCHED - Same scheme to be followed, by all registered persons having the
same PAN.
CBIC on 07.03.2019 issued notification No. 2/2019-Central Tax
(Rate) and Notification No. 2/2019- Union Territory Tax (Rate) - Not eligible to collect any tax from the recipient on supplies
prescribing a Special Composition Scheme with effect from
01.04.2019. This scheme is prescribed in form of a conditional - Liable to pay tax even on exempted supplies.
exemption of tax in excess of 6% for those registered persons who
were otherwise not eligible for opting composition scheme u/s 10 of - Liable to pay RCM u/s 9(3) and 9(4) of CGST Act, 2017.
CGST Act, 2017.
- Not entitled to any credit of input tax.
As per this scheme an eligible registered person shall have to pay tax
only @ 6% on their FIRST supplies of goods or services or both up to - Issue a bill of supply instead of tax invoice.
an aggregate turnover of fifty lakh rupees made on or after the 1st day
of April in any financial year. - Mention 'taxable person paying tax in terms of notification No.
2/2019-Central Tax (Rate) dated 07.03.2019, not eligible to
Major highlights of this scheme are as follows: collect tax on supplies' at the TOP of the bill of supply.

This scheme has been prescribed for a registered person: Some Important points:
- Whose aggregate turnover in the preceding financial year was fifty
- For the purposes of determining eligibility of a person to pay tax
lakh rupees or below. under this scheme, the expression “first supplies of goods or
- Who was otherwise not eligible to pay tax under composition services or both” shall, include the supplies from the first day of
April of a financial year to the date from which he becomes liable for
Scheme u/s 10 of CGST Act, 2017. registration under the said Act

This scheme is NOT applicable for a registered person, who is: - For the purpose of determination of tax payable under this
notification shall not include the supplies from the first day of April
- Not engaged in making any supply which is not leviable to tax of a financial year to the date from which he becomes liable for
under the GST Acts. registration under the Act.

- A casual taxable person. - In computing aggregate turnover, value of supply of exempt
- A non-resident taxable person. services by way of extending deposits, loans or advances in so far
as the consideration is represented by way of interest or discount,
Restrictions: shall not be taken into account.
- No inter-State outward supply allowed.
- Not allowed to make any supply through an electronic commerce Summary of Circular No. 92/11/2019-GST dated 7th March 2018
providing Clarification on various doubts related to treatment of
operator who is required to collect TCS under section 52 sales promotion schemes under GST:
- Not allowed to make supply of following goods: o Ice cream and
There are a lot of confusion and uncertainty on tax treatment on
other edible ice, whether or not containing cocoa (HSN 2105 00 various type of discounts and scheme prevalent in industry. Circular
00), o Pan Masala (HSN 2106 90 20), All goods, i.e. Tobacco No. 92/11/2019-GST dated 7th March 2018 has provided answers
to many unanswered questions.

Following is the summary of said circular:

Details of Transaction Impact on Valuation Impact on ITC

Free Sample and Gifts No Supply in absence of consideration except No ITC will be available under section 17(5)(h).
in situations covered in Schedule I However, ITC will be available in case
transaction covered in Schedule I.

Buy One get one free offer Either will be composite or Mixed Supply Itc will be available

Discounts including 'Buy more, save Such discounts will be excluded from valuation ITC will be available on the valuation as per

more' offers: Referred as Volume subject to satisfaction of parameters of Section 15(3) Section 15.

Secondary discounts shall not be Financial/commercial Credit Notes can be raised as ITC will be available on full value i.e no
excluded while determining the credit note u/s 34 cannot be issued in these situations. impact of Financial/commercial Credit
value of supply Secondary discounts shall not be excluded while Notes on ITC
determining the value of supply

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AHMEDABAD BRANCH OF WIRC OF ICAI

Vol. No. 6 l Issue No. 01 l March 2019

FEMA Updates (B) ECB Facility for companies under Corporate Insolvency
Resolution Process2
(Contributed by CA. Saumya Sheth)
RBI has relaxed the end-use restrictions for resolution applicants
(A) Establishment of Branch Office (BO) / Liaison Office (LO) / under the Corporate Insolvency Resolution Process (CIRP) and
Project Office (PO) or any other place of business in India by allowed them to raise ECBs from the recognised lenders, except
foreign NGOs and Non-Profit organisations1 the branches/ overseas subsidiaries of Indian banks, for
repayment of Rupee term loans of the target company under the
RBI has issued a A.P. (DIR Series) Circular No. 20 dated 27 approval route.
February 2019clarifying that all Non-Government Organisation,
Non-Profit Organization, Body/Agency/Department of a foreign Accordingly the resolution applicants, who are otherwise eligible
Government which are undertaking activities covered under borrowers, can forward such proposals to raise ECBs, through
Foreign Contribution (Regulation) Act, 2010 (FCRA), shall their AD bank, to Foreign Exchange Department, Central Office,
obtain registration under said Act and not seek permission under Mumbai of the Reserve Bank for approval.
FEMA 22(R) for opening branch office or a liaison office or a
project office in India. © FAQs on ODI Updated as on 28 February 20193

Similarly amendments have been made in Form FNC to specify RBI has updated FAQs relating to Overseas Direct Investments
that foreign entities would not undertake any activities covered being made by Indian entities and has clarified on applicability of
under FCRA. Accordingly, following declaration will need to be filing of Form APR based on unaudited financial statements of
given by all foreign entities: overseas entity.

“We will not undertake either partly or fully, any activity that is RBI has clarified that exemption from filing the APR based on
covered under Foreign Contribution Regulation Act, 2010 (FCRA) unaudited balance sheet will not be available in respect of
and we understand that any misrepresentation made or false JV/WOS in a country/jurisdiction which is either under the
information furnished by us in this behalf would render the observation of the Financial Action Task Force (FATF) or in respect
approval granted under the Foreign Exchange Management of which enhanced due diligence is recommended by FATF or any
(Establishment in India of a branch office or liaison office or a other country/jurisdiction as prescribed by Reserve Bank of India.
project office or anyother place of business) Regulations, 2016,
automatically as void ab initio and such approval by the Reserve
Bank shall stand withdrawn without any further notice”.

1 https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11486&fn=5&Mode=0
2 https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11472&fn=5&Mode=0
3 https://www.rbi.org.in/scripts/FS_FAQs.aspx?Id=32&fn=5

International Taxation Updates - The Assessing Officer did not concur with Hempel Singapore
and he estimated profits of the PE at an ad-hoc rate of 25%
(Contributed by CA. Twinkle S. Shah) of the sales and the commission paid to Hempel India was
allowed as an expenditure and the net income was
Judicial Pronouncements determined as assessed income to be taxed in the hands of
Hempel Singapore in India.
1. Hempel Singapore Pte Ltd [ITA No. 7296/MUM/2017] [TS-74-
ITAT-2019(Mum)] - Relying on the decision of Supreme Court in case of Morgan
Stanley & Co and Bombay High Court in case of SET
- Hempel Singapore a tax resident in Singapore hadappointed Satellite Singapore Pte Ltd., Hempel Singapore contended
its wholly owned Indian subsidiary, Hempel India as a sales that Hempel India has been compensated by Hempel
agentin India and it compensated Hempel India at cost plus Singapore on account of commission payment at arm's
8.17% mark-up as commission on sales effected through length price, therefore no further income or profits could be
the Indian subsidiary in India. said to be attributable to Hempel Singapore in India on
account of agency PE. Hempel Singapore further contended
- Hempel Singapore contended that commission paid to that for the very instant assessment year, during assessment
Hempel India is at arm's length. Hempel Singapore's stand of Hempel India, the Transfer Pricing Officer had accepted
before the tax authorities was that it was computing income that thesaid commission income received by Hempel India
attributable to its agency PE in India by applying transfer fromHempel Singapore is at arm's length.
pricing provisions and commission paid to Hempel India, its
agent, was equal to the income attributable to the agency PE, 9
and hence the resultant taxable income in India was Nil.

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Vol. No. 6 l Issue No. 01 l March 2019

- Mumbai Tribunal accepts the contention of Hempel services rendered while carrying on the business, it was
Singapore that commission payment to Hempel Indiaby liable to be visited with TP-adjustment on account of interest
Hempel Singapore is on arm's length basis, which has income short charged/uncharged. High Court had upheld
indeed been affirmed by the income-tax authorities in the the opinion of Tribunal that charging of interest on delayed
case of Indian subsidiary for the instant assessment year, receipt of receivables was a separate international
therefore, no further income could be attributable to its transaction which required to be benchmarked
agency PE again. independently

2. McKinsey Knowledge Centre India Pvt Ltd vs. Pr CIT[SLP No.(s) 3. Hydrosult Inc [TS-43-ITAT-2019(Ahd)]
1785/2019]
- For rendering technical consultancy services under the
- The Supreme Court (SC) dismissed the SLP filed by irrigation contract, Hydrosult Inc. had hired various
Mckinsey against the order of High Court in its own case and independent foreign professionals from the Netherlands,
stated that it is not inclined to entertain theSLPunder Article Australia, UK etc.
136 of the Constitution of India”.
- Hydrosult Inc. contended that the services received from
Nature of Services – BPO vs. KPO these individuals are in the nature of independent personal
services governed by Article 14 'Independent Personal
- The High Court characterised the research and information Services' (IPS) of the respective treaties. Since none of the
services provided by McKinsey to its Associated Enterprises consultants had a fixed base available to them in India for
as high-end knowledge process outsourcing services (KPO) the purposes of performing their respective activities and
provider as against Mckinsey's characterisation of its since none of them had stayed in India for a period
functions as a routine business process outsourcing exceeding 183 days, hence no income was chargeable to
services (BPO). tax in India and no tax at source was deducted.

- The High Court had held that services rendered by - The Assessing Officer observed that services rendered were
McKinsey are specialized and require specific skill-based in the nature of technical and consultancy services and
analysis and research that is beyond the more rudimentary would thus fall in the Fee for Technical Services (FTS) article
nature of services rendered by a BPO. Therefore, the in contrast to the IPS article. The Assessing Officer further
services provided by McKinsey are more akin to a KPO and observed that services rendered by the professionals are not
accordingly the mark-up earned by them should be independent in character and hence the article on FTS of the
compared to other KPO companies rather than BPO. relevant DTAA is squarely applicable and tax at source shall
be deducted at source by Hydrosult Inc.
- The crux of the issue lies in the fact that the tax authorities
contend that there are differentiating features between the - Referring to a specimen agreement entered into between
BPO and KPO activities based on their functions, assets and Hydrosult Inc and one of the consultants based in the
risks and hence require different bench marking and mark- Netherlands, Tribunal observes that the obligations arising
up percentages. Even the Safe Harbour Rules in India from the contract cannot be assigned to some other persons
(applicable to cases with value of transactions below unlike in the case of an employer; Holds that, “In view of risk
specified thresholds) provides for 17-18% operating fastened with the non-residents for their services, it is clear
margin from a BPO as compared to 18 – 24% from a KPO. that the services are of independent nature.” Accordingly,
Ahmedabad Tribunal rules that consultancy fees payment to
Interest on Delayed Receivables foreign consultants in relation to irrigation development
project awarded by Govt. of India, falls under the ambit of
- Before High Court Mckinsey had contended that early or late Article 14 of respective DTAAs on IPS
realization of sale/ service proceeds was incidental to the
transaction of sale/ service objecting separate
benchmarking of interest. High Court had rejected this
contention holding that if there was any delay in the
realization of a trading debt arising from the sale of goods or

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Vol. No. 6 l Issue No. 01 l March 2019

Direct Tax Updates deduction in respect of above interest on deposit is as under: - (i)
in a case where the amount of such income does not exceed in
(Contributed by CA. Mohit Tibrewal) the aggregate fifty thousand rupees, the whole of such amount;
and (ii) in any other case, fifty thousand rupees.
1. Circular No. 5/2019dated 05.02.2019 - Monetary limits for
filing/withdrawal of Wealth Tax appeals by the Department However, no deduction is allowed under section 80TTB to any
before ITAT, HCs and SLPs/appeals before SC through partner of the firm or any member of the association or any
extending the scope of Circular 3 of 2018 -Measures for individual of the body if said interest is derived from any deposit
reducing litigation. held by, or on behalf of, a firm, an association of persons or a
body of individuals.
Reference is invited to Board's Circular No. 3 of 2018 dated
11.07.2018 (hereinafter, referred to as "the Circular") vide For this purpose, "senior citizen" means an individual resident in
which monetary limits for filing of income tax appeals by the India who is of the age of sixty years or more at any time during
Department before Income Tax Appellate Tribunal, High Courts the relevant previous year. However, taxpayers claiming
and SLPs/ appeals before Supreme Court were specified. Para deduction under section BOTTB shall not be eligible for
11 of the Circular states that the monetary limits specified in para deduction under section 80TTA".
3 shall not apply to writ matters and Direct tax matters other than
Income tax and filing of appeals in such cases shall continue to https://www.incometaxindia.gov.in/communications/circular/r
be governed by relevant provisions of statute and rules. evised_corrigendum_80ttb_11_2_19.pdf

There is no charge under Wealth Tax Act, 1957 w.e.f 1st April, 3. Press Release dated 01.02.2019 – Direct tax highlights of the
2016. Therefore, as a step towards litigation management, it Interim budget 2019-20.
has been decided by the Board that monetary limits for filing of
appeals in Income tax cases as prescribed in Para 3 of the - Income upto Rs. 5 lakh exempted from Income Tax.
Circular shall also apply to Wealth Tax appeals through
extension of the Circular to Wealth tax matters in a mutatis - Standard Deduction to be raised to Rs. 50,000 from Rs.
mutandis manner 40,000 for salaried employees.

https://www.incometaxindia.gov.in/communications/circular/c - TDS threshold to be raised from Rs. 10,000 to Rs. 40,000
ircular_5_2019.pdf on interest earned on bank/post office deposits.

2. CORRIGENDUM TO CIRCULAR NO.1 OF 2019 DATED 01 .01 - Existing rates of income tax to continue.
.2019 issued on 08.02.2019 - Income-Tax Deduction from
Salaries during the Financial Year 2018-19 under Section 192 - Tax exempted on notional rent on a second self-occupied
of the Income-tax Act, 1961-regarding. house.

The correct position of the admissibility of deduction under - Housing and real estate sector to get boost-
section 80TTB is provided as under: - "Section 80TTB introduced
by Finance Act, 2018, w.e.f 01 .04.2019, allows deduction to a o TDS threshold for deduction of tax on rent to be
senior citizen from his gross total income in respect of income by increased from Rs. 1,80,000 to Rs. 2,40,000.
way of interest on deposits with- (a) a banking company to
which the Banking Regulation Act, 1949 (10 of 1949), applies o Benefit of rollover of capital gains increased from
(including any bank or banking institution referred to in section investment in one residential house to two residential
51 of that Act); (b) a co-operative society engaged in carrying houses for capital gains up to Rs. 2 crore.
on the business of banking (including a co-operative land
mortgage bank or a co-operative land development bank); or 11
(c) a Post Office as defined in clause (k) of section 2 of the
Indian Post Office Act, 1898 (6 of 1898), The amount of

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Vol. No. 6 l Issue No. 01 l March 2019

o Tax benefits for affordable housing extended till 31st Since only about 0.5% of the returns is selected for scrutiny,
March, 2020 under Section 80-IBA of Income Tax Act. refunds are issued expeditiously at the time of processing itself
for the bulk of the taxpayers. With regard to the pending scrutiny
- Tax exemption period on notional rent, on unsold cases, the Assessing Officers have already been advised in the
inventories, extended from one year to two years. Central Action Plan for 2018-19 to expedite assessment in such
cases, especially cases selected for “limited scrutiny”, so that
http://www.pib.nic.in/PressReleseDetail.aspx?PRID=1562187 resultant refunds, if any, can be issued at the earliest.

4. Press Release dated 12.02.2019 – Income Tax Refunds http://www.pib.nic.in/PressReleseDetail.aspx?PRID=1564079

The level of income-tax compliance has continuously increased 5. Press Release dated 26.02.2019 - Income Tax Department
over the last three Financial Years, which is reflected in the hits at terror financing activities in J&K Region.
number of Income-Tax Returns filed over this period, as given
hereunder: - The head of a prominent organisation allegedly indulging in
anti-national activities alongwith his associates were covered in
S.No. Financial Year Total Number of Percentage increase a sensitive search action by the Income Tax Department today.
Search action has been conducted at 4 premises in the Valley
Income Tax over previous and 3 in the national capital. The search action has yielded
credible evidence of large scale undisclosed financial
Refund filed Financial Year transactions carried out in the business of quarrying, hotels etc.

1 2015-16 4.63 Crore 14.6% During the search, clinching evidence was also unearthed of
huge unaccounted expenditure having been incurred in cash on
2 2016-17 5.57 Crore 20.3% the reconstruction and remodelling of the residential premises
presently being used by the tax evader's family. Despite carrying
3 2017-18 6.86 Crore 23.2% out large scale financial transactions, neither the main
protagonist nor any member of his family has ever filed any
The total amount of refunds made to the assesses during the income tax return. The evidence found in search action is robust
period under reference is as under: enough to show a deliberate and wilful attempt to evade tax.

Financial Year Refund (Rs. Crore) In the search action, 3 hard discs have also been seized. The
analysis of the information contained in the discs is likely to yield
2015-16 122271 even more substantial evidence against the tax evader and his
associates. This action is part of a concerted drive to trace illegal
2016-17 162661 sources of funding that have financed the separatist elements
and their activities in the Valley.
2017-18 151602
http://www.pib.nic.in/PressReleseDetail.aspx?PRID=1566579
2018-19 (up to 2ndFebruary 2019) 143117

As on 15th January 2019, 3,07,485 returns including 36,616
cases of refunds are pending for scrutiny. The scrutiny of these
cases is to be completed by 31.12.2019. A total of 16,21,848
claims of refund (including non-scrutiny cases) are pending for
issue as on 31st January, 2019.

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Vol. No. 6 l Issue No. 01 l March 2019

RERA allottee as it defined the same as a group/collective of allottee by
whatever name called, registered under any law for the time being in
(Contributed by CA. Mahadev Birla) force.

Real Estate (Regulation and Development) Act, 2016 The said lacuna has been filled up in Rule 9(1) of GujRERA Rule,
which talk about the execution of agreement for sale shall be in the
Provisions and rules related to “Association of allottee” and form as per “Annexure A “given in Rule and as per clause 9 of the
formation of association of allottee:- model form of agreement, allottees of apartment in building shall join
in forming and registering the society or Association or a Limited
Real Estate (Regulation and Development Act), 2016 (RERA) does Company to be known by such name as the promoter may decide and
not defined the terminology “association of allottee” while the same is for this purpose also from time to time sign and execute the
defined in Gujarat Real Estate (Regulation and Development) application for registration and/or membership and the other papers
(General) Rule 2017 (GujRERA Rule). and documents necessary for the formation and registration of the
society or Association or Limited Company and for becoming a
As per GujRERA Rule 2(1)(c) “association of allottees” means a member including the bye-laws of the proposed Society and duly fill
collective of the allottees of a real estate project, by whatever name in, sign and return to the promoter within seven days of the same
called, registered under any law for the time being in force, acting as being forwarded by the Promoter to the Allottee, so as to enable the
group to serve the cause of its members, and shall include the promoter to register the common organisation of allottee.
authorised representative of the allottees.
Explanation:-The above clause of model agreement for sale give
Section 11 of RERA describe the function and duties of the promoter better clarity the it is the joint duty of allottees and promoter to form the
and Section 11(4)(e) of the act said that, Promoter shall enable the association of allottee.
formation of society or co-operative society or federation of allottee
under the laws applicable. Further to this, the above clause give the clarity on formation of
association also which clearly says that association can be formed in
Further proviso to this section says that in absence of local law, the any way i.e. Society/Association or Limited Company.
association of allottee shall be formed within 3 months of the majority
of allotment is done in real estate project. Gujarat Real Estate Regulatory Authority (GujRERA Authority) has
issued one order i.e. GujRERA Order No. 13 dated 09.07.2018 where
Explanation:- it is important to note that word used in section it has directed that association of allottee cannot be formed by way of
11(4)(e) is that the promoter has to “enable” the formation of Company, LLP or Society but it has to be under the Gujarat Co-
association and it does not bind the promoter to form the association. Operative Society Act, 1961.

Further to this, proviso of the section says that the association “shall While issuing this order GujRERA Authority has considered the
be form” but who (promoter or allottees) will form the association is provision of Section 4 along with the section 7 of Gujarat Co-Operative
not clear in the Act. Society Act, 1961.

Apart from the above point, that who shall form the association one However the GujRERA Authority has issued another order i.e. GujRERA
another point is not cleared in RERA i.e. related to status/nature/form Order No-18 dated 18.12.2018 where it has clarified that association
of association of allottee. can be formed by way of Society under Gujarat Co-Operative Society
Act, 1961 or as a company under Section 8 of the Companies
Section 11(4) (e) talk about the formation of society/co-operative Act,2013.
society/federation of society under the law applicable while proviso
says that association may be form by whatever name called, if there is 13
no local law.

Even in definition of association given in GujRERA Rule 2(1)(c) does
not specify that what will be the status/nature/form of association of

AHMEDABAD BRANCH OF WIRC OF ICAI

Vol. No. 6 l Issue No. 01 l March 2019

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AHMEDABAD BRANCH OF WIRC OF ICAI

Vol. No. 6 l Issue No. 01 l March 2019

Important Due dates for Compliance

Sr. No. Act Particulars Due Date
2nd March, 2019
1 Income Tax Furnishing of Challan-cum-Return for Tax Deducted (TDS) u/s 194IA and 194IB
during the month of January-19 7th March, 2019
7th March, 2019
2 Income Tax Tax Deducted (TDS) / Collected (TCS) during the month of Fabruary to be deposited
7th March, 2019
3 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 10th March, 2019

4 GujRERA In case of Agent : Half Yearly Return to be filled with 7 days from the end of the 10th March, 2019
Half year allocated by RERA Authority depending on Registration Date
11th March, 2019
5 GST Filling of GSTR-7 for the month of February-19 for persons required to deduct
TDS under GST 13th March, 2019
15th March, 2019
6 GST Filling of GSTR-8 for the month of February-19 for e-commerce operator required 15th March, 2019
to collect TCS under GST 15th March, 2019
20th March, 2019
7 GST Filling of GSTR-1 for the month of February-19 for taxpayer having 20th March, 2019
Annual Aggregate Turnover exceeding Rs.1.50 Crore 31st March, 2019

8 GST Filling of GSTR-6 for the month of February-19 for Input Service Distributor (ISD) 31st March, 2019

9 Income Tax Fourth Installment of Advance Tax for the A.Y. 2019-20 31st March, 2019
31st March, 2019
10 PF / ESIC Payment of PF for the month of February-19 31st March, 2019

11 PF / ESIC Payment of ESIC for the month of February-19 7th April, 2019

12 GST Payment of GST & Filling of GSTR-3B for the month of February-19 7th April, 2019

13 GST Filling of GSTR-5A for the month of February-19 10th April, 2019

14 Income Tax Furnishing of Challan-cum-Return for Tax Deducted (TDS) u/s 194IA and 194IB 10th April, 2019
during the month of February-19
11th April, 2019
15 GST Filling of ITC-04 for the period of Jul-17 to Dec-18 for claiming ITC on goods
sent to job worker 13th April, 2019

16 GST Filling of GSTR-1 / 3B / 4 for the period of Jul-17 to Sep-18 without late fees 15

17 Income Tax Due date of Linking of PAN with Aadhar

18 Income Tax Filling of Belated / Revised Income Tax Return for the F.Y. 2017-18 /
A.Y. 2018-19 with Late Fees

19 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

20 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 Registration Date

21 GST Filling of GSTR-7 for the month of March-19 for persons required to deduct
TDS under GST

22 GST Filling of GSTR-8 for the month of March-19 for e-commerce operator
required to collect TCS under GST

23 GST Filling of GSTR-1 for the month of March-19 for taxpayer having
Annual Aggregate Turnover exceeding Rs.1.50 Crore

24 GST Filling of GSTR-6 for the month of March-19 for Input Service Distributor (ISD)

AHMEDABAD BRANCH OF WIRC OF ICAI

Vol. No. 6 l Issue No. 01 l March 2019

All Gujarat Income Tax Open House on 20.02.2019 Lecture Meeting on Interim Budget 2019 on 07.02.2019

ICAI Convocation on 2019 on 01.02.2019

Live Screening of Union Budget 2019 on 01.02.2019 Seminar on UDIN - An Easy Way to Secure Certificates on 06.02.2019

Lecture Meeting on SME Listing and It’s Benefits on 22.02.2019 Post Qualification Course on ISA PT from 16.02.2019

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

Disclaimer : TheAhmedabad Branch ofWIRC 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.

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