JOURNAL JULY 2019

India-China DTAA amended to incorporate BEPS related provisions

The amendments vide Protocol are largely in be computed to be within any 12-month
line with the India’s positions on MLI and period beginning or ending in the relevant
highlights of the key changes are summarized financial year. Further, the services for
as under: same or connected projects need to be
aggregated now.
1.3 Key features of the Protocol
- Specific activity exemption - The
Preamble exemption for “delivery” activity has now
been deleted and hence, such activity will
The Protocol includes the language in the no longer be eligible for exemption at the
preamble as mandated by MLI as minimum threshold unless same constitutes a
standard. Accordingly, the Protocol now has a preparatory or ancillary (PoA) activity
preamble which states that parties intend to
eliminate double taxation with respect to taxes Business profits
on income without creating opportunities for
non-taxation or reduced taxation through tax Currently as per the 1995 DTAA, any
evasion or avoidance (including treaty- enterprise (say China) carrying on business in
shopping arrangements aimed at obtaining the other state by way of a PE (say India), the
reliefs provided in the treaty for the indirect income which shall be taxable in India will be
benefit of residents of third States). the extent of profits of such Chinese enterprise
which can be regarded as directly or indirectly
The Protocol also includes the additional attributable to the PE in India. Further, the
preamble language which expresses the desire provision clarifies that it will not apply if the
of India and China to further develop their enterprise proves that activities could not be
economic relationship and to enhance their undertaken by the PE or have no relation with
cooperation in tax matters. the PE.

PPT The Protocol has replaced the above provision
and is amended now for the same to be taxed
In line with the minimum standard under MLI, in India only to extent of profits attributable to
the Protocol includes PPT rule, wherein a the PE.
benefit under the treaty shall not be granted in
respect of an item of income if it is reasonable 1.4 Concluding Remarks
to conclude that obtaining treaty benefit was
one of the principal purposes of any The Protocol is a welcome move and indicates
arrangement or transaction that resulted directly the desire of India and China to further develop
or indirectly in that benefit, unless it is their economic relationship and demonstrates
established that granting that benefit in these their commitment towards combating BEPS.
circumstances would be in accordance with the This is a result of bilateral negotiations between
object and purpose of the relevant provisions India and China and largely covers significant
of the treaty. provisions of MLI. Additionally, the Protocol
broadens the scope of provisions on exchange
Permanent establishment (PE) of information which will enable both the
countries in fulfilling their respective
- Construction, installation, assembly, international obligations on enhancing tax
supervisory PE - A provision has been transparency and combating tax evasion.
added wherein for computation of the 183
days threshold, one will need to also The Protocol is effective from 1 April 2020 and
aggregate the time spent on connected which also matches with MLI related changes
activities on the same project by closely for India’s treaties with major trade partners such
related entities, if exceeds 30 days each. as UK, Japan, Singapore,Australia and France.

- Service PE - Clarification provided hhh
wherein the time threshold of 183 days will

Ahmedabad Chartered Accountants Journal July, 2019 233

FEMA CA. Savan Godiawala
Updates [email protected]

11 India’s International Investment declined by US$ 11.6 billion, direct
Position (IIP), March 2019 investment and other investment overseas
(trade credit, loans and currency and
The Reserve Bank released data relating to India’s deposits) moved up by US$ 12.6 billion and
International Investment Position as at end-March US$ 6.3 billion, respectively.
2019.
· International financial liabilities increased
Key Features of India’s IIP in March 2019 by US$ 26.2 billion with direct investment
and other investment increasing by US$
I. Quarterly Variations: 20.2 billion and US$ 18.1 billion,
respectively, while portfolio investment
· Net claims of non-residents on India declined by US$ 12.2 billion.
increased to US$ 436.4 billion reflecting
an increase of US$ 45.2 billion in foreign- · Overall, net claims of non-residents on
owned assets in India vis-à-vis an increase India increased by US$ 17.9 billion.
of US$ 35.7 billion in Indian residents’
financial assets abroad. III. Ratio of International Financial Assets and
Liabilities to GDP
· The increase in foreign-owned assets in
India was primarily due to portfolio · The ratio of total overseas financial assets
investment, direct investment and other of Indian residents declined to 23.4 per cent
investment, particularly loans. of GDP in March 2019, from 24.1 per cent
a year ago.
· With the dollar-rupee swap conducted by
the Reserve Bank in March, reserve assets · The ratio of total claims of non-residents to
increased sizably during the quarter. GDP declined to 39.2 per cent in March
2019 from 40.0 per cent a year ago.
· Debt and non-debt liabilities owed to non-
residents had almost equal shares in total · The ratio of net IIP of India to GDP
liabilities. remained unchanged from a year ago at (-
)15.9 per cent in March 2019.
· The ratio of India’s international financial
assets to international financial liabilities Source:India’s International Investment
stood at 59.5 per cent at end-March 2019 Position (IIP) dated June 28, 2019
(58.7 per cent in December 2018).
For full text refer: https://www.rbi.org.in/
II. Annual Variations scripts/FS_PressRelease.aspx?prid=47440
&fn=5
· International financial assets of Indian
residents increased by US$ 8.4 billion Developments in India’s Balance of Payments
during 2018-19; while reserve assets (BoP) during the Fourth Quarter (January-
March) of 2018-19

234 Ahmedabad Chartered Accountants Journal July, 2019

The Reserve Bank released data relating to the FEMA Updates
developments in India’s Balance of Payment during
the fourth quarter of FY 2019. · In Q4 of 2018-19, there was an accretion of
US$ 14.2 billion to the foreign exchange
Key Features of India’s Balance of Payments in reserves (on BoP basis) as compared with US$
Q4 of 2018-19 13.2 billion in Q4 of 2017-18.

· India’s current account deficit (CAD) at US$ Balance of Payments during 2018-19
4.6 billion (0.7 per cent of GDP) in Q4 of 2018- · The CAD increased to 2.1 per cent of GDP in
19 narrowed from US$ 13.0 billion (1.8 per
cent of GDP) in Q4 of 2017-18 and US$ 17.7 2018-19 from 1.8 per cent in 2017-18 on the
billion (2.7 per cent of GDP) in the preceding back of widening of the trade deficit.
quarter. · India’s trade deficit increased to US$ 180.3
billion in 2018-19 from US$ 160.0 billion in
· The contraction of the CAD on a year-on-year 2017-18.
(y-o-y) basis was primarily on account of a · Net invisible receipts were higher in 2018-19
lower trade deficit at US$ 35.2 billion as mainly due to increase in net services earnings
compared with US$ 41.6 billion a year ago. and private transfer receipts.
· Net FDI inflows at US$ 30.7 billion in 2018-
· Net services receipts increased by 5.8 per cent 19 were marginally higher than US$ 30.3
on a y-o-y basis mainly on the back of a rise in billion in 2017-18.
net earnings from telecommunications, · Portfolio investment recorded a net outflow of
computer and information services. US$ 2.4 billion in 2018-19 as against an inflow
of US$ 22.1 billion a year ago.
· Private transfer receipts, mainly representing · In 2018-19, there was a depletion of US$ 3.3
remittances by Indians employed overseas, at billion of the foreign exchange reserves (on a
US$ 17.9 billion declined by 0.9 per cent from BoP basis).
their level a year ago. Source: Developments in India’s Balance of
Payments during the Fourth Quarter (January-
· In the financial account, net foreign direct March) of 2018-19 dated June 28, 2019
investment at US$ 6.4 billion in Q4 of 2018- For full text refer: https://www.rbi.org.in/scripts/
19 remained at the same level as in Q4 of 2017- FS_PressRelease.aspx?prid=47438&fn=5
18.
hhh
· Foreign portfolio investment recorded net
inflow of US$ 9.4 billion in Q4 of 2018-19 –
as compared with US$ 2.3 billion in Q4 a year
ago – on account of net purchases in both debt
and equity market.

· Net inflow on account of external commercial
borrowings to India increased to US$ 7.2 billion
in Q4 of 2018-19 from US$ 1.0 billion a year
ago.

Ahmedabad Chartered Accountants Journal July, 2019 235

GST and VAT CA. Bihari B. Shah CA. Vishrut R. Shah
Judgments [email protected] [email protected]
and Updates
to take measures in order to protect the interest of
Important Judgments: the revenue. At the same time, the petitioner’s
request that the statement recorded during the
Judgment delivered by Hon. Gujarat High search might be declared illegal, obviously could
Court in case of Gujarat JHM Hotels Ltd. v. not be granted. It depended on range of factors
State of Gujarat: which could be provided only during the course of
assessment. The court would not grant petitioner’s
Issue: last request for refund of the amount already
recovered. The petitioner having issued the cheque
During the search proceedings if the department and having transferred the money through RTGS
has taken the cheque against the proposed liability in lieu thereof the question of coercive recovery
and the assessment proceedings were not might assume some significance. Without going
completed, the department can’t ask further cheques into minute details, the petitioner’s limited request
and the cheque collected during the search for not effecting further recoveries needed to be
operation, should be refunded to the assessee. accepted. The petitioner’s remaining prayers were
not granted.
Facts:
The petitioners have made three prayers viz. (i)
During the search proceedings carried out by the direct respondent No.2 to return the tax collected
value added tax authorities certain tax evasion by during search proceedings, (ii) refund the amount
the Petitioner, engaged in hospitality industry, was already recovered from the petitioner, (iii) to quash
detected. Statement of the representative of the the statement dated August 4, 2018 of the officer
Petitioner was recorded and post dated cheques of the petitioner – company recorded by respondent
were collected. On a writ petition with prayers to No.2.
direct respondent No. 2 to return the tax collected
during search proceedings to refund the amount The petitioner is a hospitality industry owning hotels
already recovered from the petitioner and to quash at Surat. The Vat authorities carried out search
the statement of the officer of the petitioner recorded operations during which time, according to the
by respondent No. 2. authorities, certain tax evasion was detected.
Statement of the representative of the petitioner
Held that in the case of the petitioner, the assessment company was recorded. Post dated cheques were
proceedings were initiated but not completed. Till collected. We are informed that against one such
quantification of tax liability, it would not be open cheque, in lieu thereof RTGS payment of Rs. 40
for the department to recover the tax. This was not Lakhs has already made by the petitioner. Cheques
to suggest that the department could not take other within the exceed of the department total to Rs.
means to protect the interest of the revenue if found 2,52,49,812/- which includes the sum of Rs. 40 lacs
necessary. There were provisions of the Vat Act already recovered, as mentioned above.
giving ample power to the competent authority to
take appropriate steps in appropriate circumstances

236 Ahmedabad Chartered Accountants Journal July, 2019

Having heard learned counsel for the parties and GST and VAT - Judgements and Updates
having perused the materials pm record it emerges
that pursuant to the search, statements have been for not affecting further recoveries needs to be
recorded and documents collected. Assessment accepted.
proceedings are initiated but not yet completed. Till
utilization of tax liability, it would not be open for Held:
the department to recover the tax. This is not to
suggest that the Department cannot take other Under the circumstances, the respondents are
means to protect the interest of the Revenue, if so, prevented from depositing remaining cheques of
otherwise found necessary, There are provisions to the petitioner collected during the search operations
the Vat Act giving ample power to the competent for realization and may be returned to the petitioner.
authority to take appropriate steps in appropriate The petitioner’s remaining prayers are not granted.
circumstances to take measures in order to protect We have not expressed Any opinion on all rival
the interest of Revenue. At the same time, the contentions particularly with respect to the issues
petitioner’s request, that the statement recorded which may crop up during the pending assessment.
during the search may be declared illegal, obviously
cannot be granted. It depends on range of factors In the result, the petition is disposed of.
which can be provided only during the course of
assessment. The petitioner’s last request for refund Few Major Decisions taken in 35TH GST Council
of the amount already recovered, we are not inclined Meeting:
to grant. The petitioner having issued the cheque
and in lieu thereof deposit such cheque having the [1] Extension of due date for filing First GST
transferred the money through RTGS the question Annual Return & Reconciliation Statement:
of coercive recovery may assume some
significance. Without going into minute details, we On account of difficulties faced by taxpayers
are of the opinion that petitioners limited request in furnishing the annual returns in Form GSTR-
9, GSTR-9A & Reconciliation Statement in
GSTR-9C, the due date for furnishing these
returns/reconciliation statements to be extended
till August 31, 2019.

[2] About GST Return for dealers Turnover upto 5 Crores:

Form of Return July to Sept. 2019 Oct. to Dec. 2019

GST ANX -1 Not necessary to file Mandatory to be filed on a quarterly basis
(Optional) due in Jan. 2020.

GST ANX -2 Not necessary to file -

GSTR-1 and Mandatory Not required to be filed.
GSTR-3B

PMT -08 Not required to be filed Mandatory to be filed.

GST-RET-01 Not required to be filed For the quarter due in Jan. 2020.

Ahmedabad Chartered Accountants Journal July, 2019 237

GST and VAT - Judgements and Updates

[3] GST Returns to be filed for4 the dealers having Turnover of more than 5 Crores:

Form of Return July to Sept. 2019 Oct. to Dec. 2019

GST ANX -1 Not necessary to be filed Mandatory to be filed on a monthly basis.
(Optional)

GST ANX -2 Not necessary to be filed -

GSTR-1 Mandatory Filing Mandatory to be filed on monthly basis (it
shall not be required from Dec. 2019)

GSTR -3B Mandatory Filing Mandatory to be filed on monthly basis (it
shall not be required from Dec. 2019)

PMT – 08 Not required to be filed Mandatory to be filed

GST – RET – 01 Mandatory to be filed in Jan. 2020.

It may be noted that invoices etc. can be [a] Composition Dealers, who have not
uploaded in Form GSTANX-1 on a continuous furnished the return for 2 consecutive tax
basis both by large and small taxpayers from periods; and
Oct. 2019 onwards.
[b] Other tax payers, who have not furnished
[4] Extension to opt for New 6% Presumptive the returns for a consecutive period of 2
Taxation Scheme for Service Providers: months.

A new scheme was introduced [vide [6] Extension to file form GST ITC-04 in
Notification No. 2/2019 – Central Tax (Rate)] respect of goods sent to or received back
for the eligible service providers to opt for from job worker.
presumptive taxation scheme in which they are To provide sufficient time to the trade and
required to pay GST at the rate of 6%. This industry to furnish the declaration in form GST
scheme has prescribed that the existing service ITR-04, relating to the inputs and capital goods
provides have to opt for this scheme by filing sent to or received from a job worker, the due
Form GST CMP-02 by July 31,2019. date for furnishing the said form has been
extended till August 31, 2019.
[5] No E-Way Bill from August 21, 2019:
hhh
Following persons were barred from
generating an e-way bill online, as a supplier
or a recipient.

238 Ahmedabad Chartered Accountants Journal July, 2019

Corporate CA. Naveen Mandovara
Law Update [email protected]

MCA Updates: and on being satisfied that the
company meets the requirements
1. Nidhi (Amendment) Rules, 2019: under these rules, shall notify the
company as a Nidhi in the Official
The MCA has made the following amendments Gazette:
in the Nidhi Rules, 2014, which shall be
effective from 15.08.2019: Provided that a Nidhi incorporated
under the Act on or after the
Rule No. Effect of amendment commencement of the Nidhi
(Amendment) Rules, 2019 shall
Rule 2(d) Following clause has been file Form NDH-4 within sixty days
inserted: from the date of expiry of:-

”(d) every company declared as (a) one year from the date of its
Nidhi or Mutual Benefit incorporation; or
Society under sub-section (1)
of section 406 of the Act”. (b) the period up to which
extension of time has been
Rule 3(da) Following clause has been granted by the Regional
inserted: Director under sub-rule (3) of
rule 5:
’(da) “Nidhi” means a company
which has been incorporated Provided further that nothing in the
as a Nidhi with the object of first proviso shall prevent a Nidhi
cultivating the habit of thrift from filing Form NDH-4 before
and savings amongst its the period referred therein:
members, receiving deposits
from, and lending to, its Provided also that that in case a
members only, for their company does not comply with the
mutual benefit, and which requirements of this rule, it shall
complies with the rules made not be allowed to file Form No.
by the Central Government SH-7 (Notice to Registrar of any
for regulation of such class of alteration of share capital) and
companies.’. Form PAS-3 (Return of
Allotment).”.
Rule 3A Following clause has been
inserted: Rule 4(1) The words, “to be incorporated
under the Act” shall be omitted.
”3A. Declaration of Nidhis.- The
Central Government, on receipt of Rule 4(5) The words “Company
application (in Form NDH-4 along incorporated as a” shall be
with fee thereon) of a public omitted.
company for declaring it as Nidhi

Ahmedabad Chartered Accountants Journal July, 2019 239

Corporate Law Update

Rule 5(1) For the words “from the Rule 23A The following rules shall be
commencement of these rules”, and 23B inserted, namely:-
the words “from the date of its
incorporation” shall be 23A. Compliance with rule 3A
substituted. by certain Nidhis:-

Rule 5(3) Before the Explanation, the Every company referred to in
following proviso shall be inserted, clause (b) of rule 2 and every Nidhi
namely:-”Provided that the incorporated under the Act, before
Regional Director may extend the the commencement of Nidhi
period up to one year from the (Amendment) Rules, 2019, shall
date of receipt of application.” also get itself declared as such in
accordance with rule 3A within a
Rule 5(4) After the words, brackets and period of one year from the date
figure “contained in sub-rule of its incorporation or within a
(1)”, the words, brackets and period of six months from the date
figures “and gets itself declared of commencement of Nidhi
under sub-section (1) of section (Amendment) Rules, 2019,
406” shall be inserted. whichever is later:

Rule 7(1) After the words “shall issue” the Provided that in case a company
words “fully paid up” shall be does not comply with the
inserted. requirements of this rule, it shall
not be allowed to file Form No.
Rule 12 The following clause shall be SH-7 (Notice to Registrar of any
(1)(ba) inserted namely:- alteration of share capital) and
Form PAS- 3 (Return of
”(ba) The date of declaration or Allotment).
notification as Nidhi”.
23B. Companies declared as
Rule 12 For the words “Registrar of Nidhis under previous company
(2)(a) Companies”, the words “Bench law to file Form NDH-4:-
of the National Company Law
Tribunal” shall be substituted. Every company referred in clause
(a) of rule 2 shall file Form NDH-
Rule 23(2) (i) For the words “concerned 4 alongwith fees as per the
Companies (Registration Offices
Regional Director”, the and Fees) Rules, 2014 for updating
its status:
words, “Central
Provided that no fees shall be
Government’’ shall be charged under this rule for filing
Form NDH-4, in case it is filed
substituted; within six month of the
commencement of Nidhi
(ii) For the words “such Regional (Amendment) Rules, 2019:
Director”, the words,
“Central Government’’ shall Provided further that, in case a
be substituted; company does not comply with the
requirements of this rule, it shall
(iii) In the proviso, for the words

“Regional Director”, the

words, “Central

Government” shall be

substituted.

240 Ahmedabad Chartered Accountants Journal July, 2019

Corporate Law Update

not be allowed to file Form No. (iii)after the proviso, the following
SH-7 (Notice to Registrar of any provisos shall be inserted,
alteration of share capital) and namely:
Form PAS-3 (Return of
Allotment). ”Provided further that where an
individual who has already
Form After the Form NDH-3, the submitted e-form DlR-3 KYC in
NDH-4 following form shall be inserted, relation to any previous financial
namely:- year, submits web-form DIR-3
KYC-WEB through the web
Form for filing application for service in relation to any
declaration as Nidhi Company subsequent financial year it shall
and for updation of status by be deemed to be compliance of the
Nidhis. provisions of this rule for the said
financial year:
[F. No. 1/24/2013-CL-V (Part) dated
01.07.2019] Provided also that in case an
individual desires to update his
2. Companies (Appointment and personal mobile number or the e-
Qualification of Directors) Third mail address, as the case may be,
Amendment Rules, 2019: he shall update the same by
submitting e-form DIR-3 KYC
The MCA has made the following only:
amendments in the Companies (Appointment
and Qualification of Directors) Rules, 2014, Provided also that fee for filing e-
namely: - form DIR-3 KYC or web-form
DIR-3 KYC-WEB through the
Rule No. Effect of amendment web service, as the case may be,
shall be payable as provided in
Rule After the letters, words and figure Companies (Registration Offices
11(2) & “e-form DIR-3-KYC” the words, and Fees) Rules, 2014.”.
(3) letters and figures” or the web
service DIR-3-KYC-WEB” as
the case may be” shall be inserted.

Rule 12A (i) For the words “who has been DIR-3 In the said rules, in the Annexure,
allotted”, the words “who KYC- after e-form DIR-3 KYC, the
holds” shall be substituted; WEB following web-form shall be
inserted, namely:

(ii) For the words, letters and Form DIR-3 KYC-WEB (KYC of
figures “submit e-form DIR- Directors)
3-KYC to the Central
Government on or before [F. No. 01/22/2013-CL-V dated 25.07.2019]
30th June of immediate next
financial year”, the words, 3. Companies (Registration Offices and Fees)
letters and figures “submit e- Fourth Amendment Rules, 2019:
form DIR-3-KYC for the
said financial year to the The MCA has made the following
Central Government on or amendments in the Companies (Registration
before 30th September of Offices and Fees) Rules, 2014:
immediate next financial
year” shall be substituted; In the Companies (Registration Offices and
Fees) Rules, 2014, in the Annexure, for item

contd. on page no. 251

Ahmedabad Chartered Accountants Journal July, 2019 241

Allied Laws Adv. Ankit Talsania
Corner [email protected]

The Prohibition of Benami Property said notices were responded in the same terms.
Transactions Act, 1988 However, the Initiating Officer of the
respondent department made order under
Recently High Court of Rajasthan in the case of Section 24 (4) of the amended Benami
Niharika Jain.vs. Union of India. reported in Amendment Act of 2016, continuing the
(2019) 107taxmann.com 272(Rajasthan) held provisional attachment of the properties
that the Benami Transactions (Prohibition) involvedherein. Thereafter, further show cause
Amendment Act, 2016 amending Prohibition of notices were issued by the Adjudicating
Benami Property TransactionsAct, 1988 can’t have Authority under the provisions of the Benami
retrospective effect Amendment Act of 2016, as to why the order
of provisional attachment of the benami
A. Facts of Case : properties should not be confirmed and the
matters are still pending before the said
1. The Income Tax Department conducted search authority. The petitioners, aggrieved of
and seizure under Section 132 of the Income initiation of the proceedings and orders
Tax Act, 1961, on various premises belonging aforesaid, for being without jurisdiction, have
to the petitioners and in course of search and instituted the instant writ petitions before this
seizure, several incriminating documents were court.
found, indicating several benami transactions
in purchase of lands involved herein. B. Findings of the Rajasthan High Court.
Accordingly, show cause notices were issued
under section 24 (1) of the amended Benami 1. Applying the principles deducible from the
Act of 1988, to show cause why action should opinions of the Apex Court of the land as
not be taken against them under Section 24 (4) referred to and relied upon by the learned
of the amended Benami Act of 1988, as the counsel for the parties; it is evident that High
consideration was actually paid by the Court could interfere in exercise of writ
petitioners but the land was purchased in the jurisdiction, if, the conditions precedent to the
name and by another person, thus, making it a exercise of jurisdiction under the statutory
clear case of benami transaction. The provisions did not exist even at the stage of
respondent department made order of notice issued. Thus, the High Courts have
provisional attachment under Section 24 (3) of power in appropriate cases to prohibit executive
the amended Benami Act, in respect of the authority from acting without jurisdiction.
properties mentioned in the show cause notices. Moreover, if executive authority exercised the
It is pleaded case of the petitioners that the power without jurisdiction that would subject
initiating officer has acted without jurisdiction, an individual to lengthy proceedings and
as the Benami Transaction (Prohibition) unnecessary harassment. Hence, to prevent
AmendmentAct, 2016, came into effect on 01st such lengthy proceedings and unnecessary
November, 2016 and the alleged benami harassment, recourse to jurisdiction under
transactions took place prior to that date. The Article 226 and/or227 of the Constitution is not

242 Ahmedabad Chartered Accountants Journal July, 2019

prohibited. Further, the legislative drafting is Allied Laws Corner
more than an ordinary prose which differs in
provenance, features and its import as to the clarificatory nor curative. Moreover, by way
meaning attached thereto and presumptions as of amendment penal consequences have been
to intendment of the legislation. introduced providing for confiscation of the
benami property and enhanced punishment.
2. By now, it is well settled law that unless a
contrary intention is reflected, legislation is 4. In the case of Prakash and Ors. (supra), the
presumed and intended to be prospective. For Apex Court of the land while dealing with the
in the normal course of human behavior, one is very Benami Amendment Act, 2016, held thus:
entitled to arrange his affairs keeping in view
the laws for the time being in force and such “17. The text of the amendment itself clearly
arrangement of affairs should not be dislodged provides that the right conferred on a
by retrospective application of law. The ‘daughter of a coparcener’is ‘on and from
principle of law known as lexprospicit non the commencement of Hindu Succession
prospicit (law looks forward not backward), is (Amendment) Act, 2005’. Section 6(3)
a well-known and accepted principle. The talks of death after the amendment for its
retrospective legislation is contrary to general applicability. In view of plain language of
principle for legislation by which the conduct the statute, there is no scope for a different
of mankind is to be regulated when introduced interpretation than the one suggested by the
for the first time to deal with future acts ought text of the amendment. An amendment of
not to change the character of past transactions a substantive provision is always
carried out in the faith of the then existing law prospective unless either expressly or by
(vide Phillips Vs. Eyre (1870)LR 6 QB 1). necessary intendment it is retrospective
Thus, the principle against retrospectively is the Shyam Sunder v. Ram Kumar (2001) 8
principle of ‘fair play’and unless there is a clear SCC 24, Paras 22 to 27. In the present case,
and unambiguous intendment for retrospective there is neither any express provision for
effect to the legislation which affects accrued giving retrospective effect to the amended
rights or imposes obligations or castes new provision nor necessary intendment to that
duties or attaches a new disability is to be treated effect. Requirement of partition being
as prospective. registered can have no application to
statutory notional partition on opening of
3. It is trite law that an explanatory or declaratory succession as per unamended provision,
Act is intended to supply an obvious omission having regard to nature of such partition
or is enacted to clear doubts as to the meaning which is by operation of law. The intent
of the previous Act. While retrospective and effect of the Amendment will be
operation is generally intended as to declaratory considered a little later. On this finding, the
or curative provisions, which is supplied with view of the High Court cannot be
the ‘language’“shall be deemed always to have sustained.
meant”. Therefore, in absence of clarity
amendment being declaratory or curative in the 18. Contention of the Respondents that the
face of unambiguous or confusion in the pre- Amendment should be read as
amended provisions; the same is not required retrospective being a piece of social
to be treated as curative or declaratory legislation cannot be accepted. Even a
amendment. Viewed in the light of the settled social legislation cannot be given
legal proposition, as aforesaid, Benami retrospective effect unless so provided for
Amendment Act, 2016, neither appears to be or so intended by the legislature. In the
present case, the legislature has expressly
made the Amendment applicable on and
from its commencement and only if death

Ahmedabad Chartered Accountants Journal July, 2019 243

Allied Laws Corner protected under a statute, in that event
transgration/violation of those rights could only
of the coparcener in question is after the be by a legislation with retrospective effect.
Amendment. Thus, no other interpretation
is possible in view of express language of 7. In view of the settled legal proposition that no
the statute. The proviso keeping authority, much less, a quasi-judicial authority,
dispositions or alienations or partitions can confer jurisdiction on itself by deciding a
prior to 20th December, 2004 unaffected jurisdictional fact wrongly; is a question that is
can also not lead to the inference that the always open for scrutiny by the High Court in
daughter could be a coparcener prior to the an application under Article 226/227 of the
commencement of the Act. The proviso Constitution of India. The very question of
only means that the transactions not correctness and legality of the issuance of notice
covered thereby will not affect the extent can be examined in exercise of writ jurisdiction.
of coparcenary property which may be
available when the main provision is 8. In the case of MangathaiAmmal (died) through
applicable. Similarly, Explanation has to L.Rs. &Ors. (supra), the Apex Court of the land
be read harmoniously with the substantive while dealing with issue of retrospective effect
provision of Section 6(5) by being limited of the Benami Amendment Act, 2016, in
to a transaction of partition effected after unambiguous terms held that Benami
20th December, 2004. Notional partition, Transaction Act would not be applicable
by its very nature, is not covered either retrospectively. At this juncture, it would be
under proviso or under Subsection 5 or relevant to take note of the text of para 12 of
under the Explanation.” the said judgment which reads thus:

5. By now, it is well settled law that a substantive “12. It is required to be noted that the benami
provision unless specifically made retrospective transaction came to be amended in the year
or otherwise intended by the Parliament should 2016. As per Section 3 of the Benami
always be held to be prospective. The power Transaction (Prohibition) Act 1988, there
to confiscate and consequent forfeiture of rights was a presumption that the transaction
or interests are drastic being penal in nature, made in the name of the wife and children
and therefore, such statutes are to be read very is for their benefit. By Benami Amendment
strictly. However, there can be no exercise of Act, 2016, Section 3(2) of the Benami
powers under such statutes by way of extension Transaction Act, 1988 the statutory
or implication (vide O.Konavalov (supra). presumption, which was rebuttable, has
been omitted. It is the case on behalf of the
6. In the case of D.L.F. Qutab Enclave Complex Respondents that therefore in view of
Educational Charitable Trust (supra), the omission of Section 3(2) of the Benami
Apex Court of the land in no uncertain terms Transaction Act, the plea of statutory
observed that extraordinary legislation must be transaction that the purchase made in the
strictly construed and a penal statute must name of wife or children is for their benefit
receive strict construction. The Supreme Court would not be available in the present case.
further observed that the mischief of rule, if Aforesaid cannot be accepted. As held by
applied, in view of amendment made would this Court in the case of Binapani Paul
be in infraction to the provisions of Article 20 (Supra) the Benami Transaction
of the Constitution of India, cannot be given (Prohibition) Act would not be applicable
retrospective effect. Similar is the position retrospectively. Even otherwise and as
operating in the instant batch of cases at hand. observed hereinabove, the Plaintiff has
The rights accrued in favour of any person miserably failed to discharge his onus to
owing to a transaction in the nature of contract

244 Ahmedabad Chartered Accountants Journal July, 2019

prove that the Sale Deeds executed in Allied Laws Corner
favour of Defendant No. 1 were benami
transactions and the same properties were that the property was purchased for the
purchased in the name of Defendant No. benefit of the wife or unmarried daughter,
1 by NarayanasamyMudaliar from the as the case may be. Simultaneously,
amount received by him from the sale of Section 4 of the Benami Act contained a
other ancestral properties.” prohibition in respect of right to recover
property held benami. Sub-section (1)
9. Article 20 of the Constitution of India is provided that no suit, claim or action to
fundamental right guaranteed under Part-III of enforce any right in respect of any property
the Constitution and the penal consequences held benami against the person in whose
emanating from the Benami Amendment Act, name the property is held, or against any
2016, in infraction to the mandate of other person, shall lie by or on behalf of a
fundamental rights guaranteed under Article 20 person claiming to be the real owner of
of the Constitution; cannot be given such property. Sub-section (2) made
retrospective effect in absence of a clear provisions likewise in respect of a defence
stipulation by the Parliament on retrospectivity. based on a plea of benami transaction. Sub-
section (2) provided that no defence based
10. In the case of Joseph Isharat (supra), relying on any right in respect of any property held
upon the opinion of the Apex Court of the land benami, whether against the person in
in the case of R. Rajagopal Reddy (Dead) whose name the property is held or against
by L.Rs. and Ors. (supra) while examining any other person, shall be allowed in any
the provisions of amendment introduced by the suit, claim or action by or on behalf of a
Legislature through Benami Amendment Act, person claiming to be the real owner of
2016, made effective from 1st November, 2016, such property. There was a twofold
the Bombay High Court observed thus: exception to this restriction. First was in
respect of the person in whose name the
4. Under the Benami Act, as it stood on the property is held being a coparcener in a
date of the suit as well as on the date of Hindu undivided family and the property
filing of written statement and passing of being held for the benefit of the coparceners
the decree by the courts below, provided of the family. The second exception was
for the definition of a “benami transaction” in respect of the person, in whose name
under clause (a) of Section 2. Under that the property was held, being a trustee or
provision, any transaction in which other person standing in a fiduciary
property is transferred to one person for capacity and the property being held for
consideration paid or provided by another the benefit of another person for whom he
came within the definition of “benami was such trustee or towards whom he stood
transaction”. Section 3 of the Benami Act, in such capacity. The present suit was filed
in sub-section (1), provided that no person when these provisions were in operation.
shall enter into any benami transaction. These provisions continued to apply even
Sub-section (2) contained two exceptions when the written statement was filed by
to the prohibition contained in sub-section the Defendant and the suit was heard and
(1). The first exception, contained in clause decreed by both the courts below. The legal
(a) of sub-section (2), was in respect of provisions continued to apply even when
purchase of property by any person in the the second appeal was filed before this
name of his wife or unmarried daughter. court. It is only now during the pendency
In the case of such purchase, it was to be of the second appeal, when it has come up
presumed, unless the contrary was proved, for final hearing, that there is a change in

Ahmedabad Chartered Accountants Journal July, 2019 245

Allied Laws Corner defined under the Income Tax Act, 1961,
by virtue of sub-section (31) of Section 2
law. The Benami Act has been amended of the amended Benami Act, the meaning
by the Parliament in 2016 with the passing of the expression will be the one assigned
of the Benami Transactions (Prohibition) to it under the Income Tax Act. The
Amendment Act, 2016. This amendment definition of daughter under the Income
has come into effect from 01 November Tax Act admits of a step-child within it. It
2016. In the Amended Act the definition is submitted that under the amended
of “benami transaction” has undergone a definition of “benami transaction”, thus,
change. Under the Amended Act “benami there is a clear exception in respect of a
transaction” means (under Section 2(9) of purchase made in the name of a step-
the Act) a transaction or an arrangement daughter by an individual provided, of
where a property is transferred to, or is held course, the consideration has been
by, a person, and the consideration for such provided or paid out of known sources of
property has been provided, or paid by, the individual.
another person; and the property is held
for the immediate or future benefit, direct 7. What is crucial here is, in the first place,
or indirect, of the person who has provided whether the change effected by the
the consideration. There are four exceptions legislature in the Benami Act is a matter of
to this rule. The first is in respect of a karta procedure or is it a matter of substantial
or a member of a Hindu undivided family rights between the parties. If it is merely a
holding the property for the benefit of the procedural law, then, of course, procedure
family. The second exception is in respect applicable as on the date of hearing may
of a person standing in a fiduciary capacity be relevant. If, on the other hand, it is a
holding the property for the benefit of matter of substantive rights, then prima
another person towards whom he stands facie it will only have a prospective
in such capacity. The third exception is in application unless the amended law speaks
the case of an individual who purchases in a language “which expressly or by clear
the property in the name of his spouse or intention, takes in even pending matters.”.
child, the consideration being provided or Short of such intendment, the law shall be
paid out of the known sources of the applied prospectively and not
individual. The fourth exception is in the retrospectively.
case of purchase of property in the name
of brother or sister or lineal ascendant or 8. As held by the Supreme Court in the case
descendant where the names of such of R. Rajagopal Reddy v. Padmini
brother or sister or lineal ascendant or Chandrasekharan (1995) 2 SCC 630,
descendant, as the case may be, and the Section 4 of the Benami Act, or for that
individual appear as joint owners in any matter, the Benami Act as a whole, creates
document. Sub-section (1) of Section 3 substantive rights in favour of benamidars
contains the very same prohibition as and destroys substantive rights of real
under the unamended Act, in that it owners who are parties to such transaction
prohibits all benami transactions. Section and for whom new liabilities are created
4 likewise prohibits suits, claims or actions under the Act. Merely because it uses the
or defences based on the plea of benami word “it is declared”, the Act is not a piece
as in the case of the unamended Act. The of declaratory or curative legislation. If one
submission is that under this scheme of law, has regard to the substance of the law rather
step-daughter not having been defined than to its form, it is quite clear, as noted
under the Benami Act, but having been

246 Ahmedabad Chartered Accountants Journal July, 2019

by the Supreme Court in R. Rajagopal Allied Laws Corner
Reddy, that the Benami Act affects
substantive rights and cannot be regarded Officer and no question of law was involved
as having a retrospective operation. The therein.
Supreme Court in R. Rajagopal Reddy also
held that since the law nullifies the defences 14. In the case of Gujarat Ambuja Cement Ltd.
available to the real owners in recovering and Ors. (supra), while dealing with scope and
the properties held benami, the law must ambit of writ application under Article 226 of
apply irrespective of the time of the benami the Constitution of India, the Supreme Court
transaction and that the expression “shall observed that what is to be ensured before
lie” in Section 4(1) or “shall be allowed” entertaining such an application is that a strong
in Section 4(2) are prospective and apply case is made out and there exists no ground to
to the present (future stages) as well as interfere in extra-ordinary jurisdiction. It was
future suits, claims and actions only. These further observed that where under a statute there
observations clearly hold the field even as is an allegation of infringement of fundamental
regards the present amendment to the right or when on the undisputed facts the Taxing
Benami Act. The amendments introduced Authorities are shown to have assumed
by the Legislature affect substantive rights jurisdiction which they do not possess, can be
of the parties and must be applied the grounds for entertaining writ application.
prospectively.” To the same effect is opinion of the Supreme
Court in the case of HarbanslalSahnia and
11. It is also a fact that an SLP instituted against ors.(supra).
the opinion (supra), has also been declined by
the Supreme Court on 28th April, 2017 in 15. For the reason aforesaid and in the backdrop
Special Leave to Appeal (C) No. 12328/2017. of the settled legal proposition so also in view
of singular factual matrix of the matters herein;
12. In the case of Mohar Singh (supra), the Apex this Court has no hesitation to hold that the
Court of the land dealt with the consequences Benami Amendment Act, 2016, amending the
of repeal of the Act. The question in the case Principal Benami Act, 1988, enacted w.e.f. 1st
of Zile Singh (supra), was related to November, 2016, i.e. the date determined by
disqualification from being a member of the Central Government in its wisdom for its
Municipal Council (if children were more than enforcement; cannot have retrospective effect.
two). Thus, there was no violation of any
fundamental right or penal consequence 16. It is made clear that this Court has neither
contemplated. Hence, the principles cannot be examined nor commented upon merits of the
applied to the controversy raised in the instant writ applications but has considered only the
batch of writ applications. Similarly, in the case larger question of retrospective applicability of
of Yogendra Kumar Jaiswal (supra), the the Benami Amendment Act, 2016 amending
observations made by the Apex Court of the the original Benami Act of 1988. Thus, the
land while dealing with the issue of confiscation authority concerned would examine each case
or attachment of money/property that was on its own merits keeping in view the fact that
acquired illegally and that too at an interim stage amended provisions introduced and the
of prosecution. amendments enacted and made enforceable
w.e.f. 1st November, 2016; would be
13. In the case of Titaghur Paper Mills Co. Ltd. prospective and not retrospective.
and Ors. (supra), the matter that fell for
consideration of the Supreme Court, was with hhh
regard to ultra vires/jurisdiction of Sales Tax

Ahmedabad Chartered Accountants Journal July, 2019 247

From CA. Pamil H. Shah
Published [email protected]
Accounts
of low value. Currently, operating lease
On March 30, 2019, MCA notified some Ind AS expenses are charged to the statement of Profit
and some amendments the effective date of & Loss. The Standard also contains enhanced
implementation of which is 1st ofApril 2019. I found disclosure requirements for lessees. Ind AS 116
very interesting notes in this company and therefore substantially carries forward the lessor
this entire column is focused on this so that readers accounting requirements in Ind AS 17.
may be updated with new amendments in Ind As.
The effective date for adoption of Ind AS 116
Orient Green Power Company Limited is accounting periods beginning on or after
April 1, 2019. The standard permits two
Notes forming part of consolidated financial possible methods of transition:
statements for the year ended 31 March, 2019
• Full retrospective – Retrospectively to each
2. Applicability of new and revised Ind AS prior period presented applying Ind AS 8
Accounting Policies, Changes in
All the IndianAccounting Standards issued and Accounting Estimates and Errors.
notified by the Ministry of Corporate Affairs
under the Companies (Indian Accounting • Modified retrospective – Retrospectively,
Standards) Rules, 2015 (as amended) till the with the cumulative effect of initially applying
financial statements are authorized have been the Standard recognized at the date of initial
considered in preparing these financial application. Under modified retrospective
statements. There are no other Indian approach, the lessee records the lease liability
Accounting Standards that have been issued as the present value of the remaining lease
as at 31 March 2019, but were not mandatorily payments, discounted at the incremental
effective except as stated below: borrowing rate and the right of use asset either
as:
Recent Indian Accounting Standards Issued
but not effective as at 31 March 2019 f& Its carrying amount as if the standard had
been applied since the commencement date, but
Ind AS 116, Leases discounted at lessee’s incremental borrowing
rate at the date of initial application.
On March 30, 2019, the Ministry of Corporate
affairs notified IndAS 116, Leases. Ind AS 116 Or
will replace the existing leases Standard, Ind
AS 17 Leases, and related Interpretations. The f& An amount equal to the lease liability,
Standard sets out the principles for the adjusted by the amount of any prepaid or
recognition, measurement, presentation and accrued lease payments related to the lease
disclosure of leases for both parties to a contract recognized under IndAS 17 immediately before
i.e., the lessee and the lessor. Ind AS 116 the date of initial application.
introduces a single lessee accounting model and
requires a lessee to recognize assets and Certain practical expedients are available under
liabilities for all leases with a term of more than both the methods.
twelve months, unless the underlying asset is

248 Ahmedabad Chartered Accountants Journal July, 2019

The Group is carrying out the possible impact From Published Accounts
of IndAS 116 and will adopt the standard from
April 01, 2019, being its effective date. Amendment to Ind AS 12 – Income taxes

Ind AS 12 Appendix C, Uncertainty over On March 30, 2019, Ministry of Corporate
Income Tax Treatments Affairs issued amendments to the guidance in
Ind AS 12, ‘Income Taxes’, in connection with
On March 30, 2019, Ministry of Corporate accounting for dividend distribution taxes.
Affairs has notified Ind AS 12 Appendix C,
Uncertainty over Income Tax Treatments which The amendment clarifies that an entity shall
is to be applied while performing the recognize the income tax consequences of
determination of taxable profit (or loss), tax dividends in profit or loss, other comprehensive
bases, unused tax losses, unused tax credits and income or equity according to where the entity
tax rates, when there is uncertainty over income originally recognized those past transactions or
tax treatments under Ind AS 12. According to events.
the appendix, companies need to determine the
probability of the relevant tax authority Effective date for application of this amendment
accepting each tax treatment, or group of tax is annual period beginning on or after April 1,
treatments, that the companies have used or plan 2019. The effect of this amendment would be
to use in their income tax filing which has to insignificant in these consolidated financial
be considered to compute the most likely statements of the group.
amount or the expected value of the tax
treatment when determining taxable profit (tax Amendment to Ind AS 19 – plan
loss), tax bases, unused tax losses, unused tax amendment, curtailment or settlement
credits and tax rates.
On March 30, 2019, Ministry of Corporate
The standard permits two possible methods of Affairs issued amendments to Ind AS 19,
transition - i) Full retrospective approach – ‘Employee Benefits’, in connection with
Under this approach, Appendix C will be accounting for plan amendments, curtailments
applied retrospectively to each prior reporting and settlements.
period presented in accordance withInd AS 8
– Accounting Policies, Changes in Accounting The amendments require an entity:
Estimates and Errors, without using hindsight
and • to use updated assumptions to determine
current service cost and net interest for the
ii) Retrospectively with cumulative effect of remainder of the period after a plan
initially applying Appendix C recognized by amendment, curtailment or settlement; and
adjusting equity on initial application, without
adjusting comparatives. • to recognize in profit or loss as part of past
service cost, or a gain or loss on settlement,
The effective date for adoption of Ind AS 12 any reduction in a surplus, even if that
Appendix C is annual periods beginning on or surplus was not previously recognized
after April 1, 2019. The Company/Group will because of the impact of the asset ceiling.
adopt the standard on April 1, 2019 and has
decided to adjust the cumulative effect in equity Effective date for application of this amendment
on the date of initial application i.e. April 1, is annual period beginning on or after 1 April
2019 without adjusting comparatives. 2019. The effect of this amendment would be
insignificant in these consolidated financial
The effect on adoption of Ind AS 12 Appendix statements of the group.
C would be insignificant in these consolidated
financial statements. hhh

Ahmedabad Chartered Accountants Journal July, 2019 249

From the

Gover nment

CA. Ashwin H. Shah CA. Kunal A. Shah
[email protected] [email protected]

Goods and Service Tax Income Tax :

1) The recommendations of the Council in the 1) Extension of Due Date for filing of Income
36th GST Council Meeting are as under:- Tax Returns

A. GST rate related changes on supply of The Central Board of Direct Taxes, in exercise
goods and services :- of its powers conferred under section 119 of
the Income-tax Act, 1961 (‘Act’), hereby
i. The GST rate on all electric vehicles extends the ‘due-date’, as prescribed under
be reduced from 12% to 5%. section 139(1) of the Act, for filing income-tax
returns from 31stJuly, 2019 to 31st August,
ii. The GST rate on charger or charging 2019 in cases of all taxpayers who are liable to
stations for Electric vehicles be file their income tax returns by the said ‘due-
reduced from 18% to 5%. date’.

iii. Hiring of electric buses (of carrying (Order dated 23rd,July, 2019)
capacity of more than 12 passengers)
by local authorities be exempted from 2) Notification relating to exemption to certain
GST. class of persons from furnishing the return
of income

(These changes shall become effective CBDT hereby exempts the following class of
from 1st August, 2019.) persons from the requirement of furnishing a
return of income under sub-section (1) of
B. Changes in GST law: section 139 of the said Act from Assessment
Year 2019-20 onwards, subject to the
1. Last date for filing of intimation, conditions specified thereinafter:-
in FORM GST CMP-02, for availing
the option of payment of tax under (i) A non-resident, not being a company; or
notification No. 2/2019-Central Tax
(Rate) dated 07.03.2019 (by exclusive (ii) A foreign company,
supplier of services), to be extended
from 31.07.2019 to 30.09.2019. who have any income chargeable under the said
Act during a previous year from any investment
2. The last date for furnishing statement in an investment fund set up in an International
containing the details of the self- Financial Services Centre (IFSC) located in
assessed tax in FORM GST CMP- India.
08 for the quarter April, 2019 to June,
2019 (by taxpayers under composition The exemption from the requirement of
scheme), to be extended from furnishing a return of income shall not be
31.07.2019 to 31.08.2019. available to the said class of persons where a
notice under sub-section (1) of section 142 or
section 148 or section 153A or section 153C
of the said Act has been issued for filing a return

250 Ahmedabad Chartered Accountants Journal July, 2019

of income for the assessment year specified From the Government
therein.
b) Conditions :- In case of class of persons
Note :- referred to in para above –

a) Investment Fund means any fund (i) Any income-tax due on income of the
established or incorporated in India in the said class of persons has been deducted
form of a trust or a company or a limited at source and remitted to the Central
liability partnership or a body corporate Government by the investment fund at
which has been granted a certificate of the tax-rate in force as per provisions
registration as a Category I or Category II of section 194LBB of the said Act; &
Alternative Investment Fund and is
regulated under the Securities and (ii) There is no other income during the
Exchange Board of India (Alternative previous year for which the said class
Investment Fund) Regulations, 2012, made of persons, is otherwise liable to file
under the Securities and Exchange Board the tax return.
of India Act, 1992.
(Notification No. 55/2019, dated 26th
July,2019)

hhh

contd. from page 241 Corporate Law Update

VII, the following item shall be substituted, (iii)Fee payable if the Rs.5000/-
namely:-

“VII. FEE FOR FILING e-Form DIR-3 KYC individual failed to file
or DIR-3 KYC-WEB under rule 12A of the
Companies (Appointment and Qualification of e-form DIR-3 KYC or
Directors) Rules, 2014:
DIR-3 KYC-WEB

through web service,

as the case may be,

(i) Subject to serial number ——- for the immediate previous
(iii) below, fee payable
till the 30th September or financial year
every financial year in
respect of e-form DIR-3 (in delayed case)
KYC or DIR-3 KYC- WEB
through web service, as the [F. No. 01/16/2013-CL-V (Pt-I) dated
case may be, for the 25.07.2019]
immediate previous
financial year

(ii) Fee payable Rs. 5000/-
(in delayed case).
hhh

Ahmedabad Chartered Accountants Journal July, 2019 251

New Delhi CA. Aniket Talati
Times [email protected]

ICAI to open office in Kashmir..! into MoU with Gujarat Forensic Sciences
University in the areas pertaining to Forensic
I am happy to share that in the August Council Science, Technology and Forensic Accounting.
meeting we unanimously resolved to open an office
in Kashmir Valley in line with the government’s ICAI UDIN
decision to integrate the State. The Institute of
Chartered Accountants of India (ICAI) will open a UDIN is made mandatory on all audit reports &
representative office in Srinagar. This will help attest functions with effect from 1st July 2019.
serve the areas of Jammu & Kashmir and Ladakh, Members attesting Corporate / Company Audits
both of which were recently declared union may kindly make note of the same and ensure
territories by the government after the abrogation compliance of UDIN in attest services as per the
of Article 370 and Article 35A, which gave the phases.
formerly unified state of Jammu & Kashmir (which
included Ladakh) special status. The office will act All ‘ITT Centres’ across India upgraded with
as a facilitation centre to spread awareness about New PC ’s
the chartered accountancy course as a tool for social
empowerment and provide much needed The Council at its 382nd meeting held on March
professional employment opportunities to the local 25, 2019 decided to replace old computers of IT
youth. centres all across the India with latest Desktops and
in this context, an RFP was released by the Institute.
New Computers Members will appreciate that this has happened after
a gap of 10 years and the council has moved from
Council has decided to upgrade all IT centres across policy paralysis to quick and effective decision
India with brand New Lenovo Computers. making to ensure world class member and student
services. I am confident that in this digital era when
Professional Opportunity technological disruptions are happening our students
will be at the forefront and will not have to suffer
CA’s have been made eligible to appointed as because of lack of infrastructure. These latest
Arbitrators. computers will also allow us to teach them top
quality ERPs such as SAP, Finacle etc in their
GST Survey training to meet industry expectations !

Results of Survey would be published as research Lenevo Brand computers qualified for the Bid
paper by Sep, 2019 which was conducted in a fair & transparent manner
by involving top senior officers of ICAI. All top
DAAB of ICAI has given its in principle to enter

252 Ahmedabad Chartered Accountants Journal July, 2019

International brands participated in the bid. The New Delhi Times
council decided to keep the process extremely swift
and result oriented without involving any council ease of doing business, reduced interaction with the
members and conducting the same in a smooth Government Officials, ease of compliance etc. In
manner through senior officials. order to facilitate the Governing Body and other
stakeholders, it has been thought fit to conduct a
Chartered Accountants as ‘Arbitrator’ under survey on the entire gamut of GST to find out the
the Act achievement, glitches and area which needs
attention going forward.
I am happy to share that on representation of ICAI
to Law Ministry, “Chartered Accountant” have http://idtc.icai.org/cc/apps/survey.php.
been made eligible to be appointed as “Arbitrator”
under the Arbitration and Conciliation Act, 1996. I Simplified and Auto fill enabled MEF : Now
am sure that this will open up a lot of new Hosted online!
professional opportunities for our members and just
as in the case of Insolvency Professionals, CAs will Professional Development Committee has made
also lead the charge in this upcoming and Multipurpose Empanelment Form (MEF) for the
developing arena ! year 2019-20 live and is available at http://
mef.icai.org/ for all practicing Chartered
GST Due Date extension: ICAI makes detailed Accountants.
representation
For the facilitation of members for submission of
On successful representation by ICAI detailing Multipurpose Empanelment Form for the year
various reasons, the last date for furnishing of 2019-20, following have been incorporated:
annual return in the Form GSTR-9/ Form GSTR-
9A and reconciliation statement in the Form 1. Applicants registered earlier for MEF 2018-19
GSTR-9C for the financial year 2017-18 is have to simply login with MEF 2018-19
extended from 31st August, 2019 to 30th credentials.
November, 2019. Owing to some technology
system concerns and ambiguities in the reporting, 2. Most of fields are pre-filled and autopopulated
coupled with other statutory deadlines, this from Institute’s records or last year’s MEF.
extension was much sought after and should help
provide quite a breather to businesses and The last date for submission of online MEF Form
professionals. for the year 2019-20 is 4th September, 2019 and
online Declaration is to be submitted within 10 days
Survey on GST Implementation in India of the filling of MEF but not later than 11th
September, 2019 FAQ’s hosted at MEF website
It has been 2 years since implementation of most on https://meficai.org/index.php/faqs/
ambitious taxation i.e. GST in India.After the initial
hiccup, the industries have started showing signs hhh
of stabilization. It is said that the GST has facilitated

Ahmedabad Chartered Accountants Journal July, 2019 253

Association

News

CA. Shivang R. Chokshi CA. Ketan G. Mistry
Hon. Secretary Hon. Secretary

Forthcoming Programmes

2ND BRAIN TRUST CUM WORKSHOP

Date Day Time Programmes Speakers Venue

21.08.2019 Wednesday 3.30 p.m. Issues on Tax Audit & CA Tejas Mehta ATMA Hall,

Reporting in Form 3CD CA Malay Deliwala Ashram Raod,

(Dhruva Advisors LLP)

Glimpses of events gone by:

Union Budget Meeting on “Technical Analysis of Finance Bill, 2019” by Shri Saurabh N, Soparkar,
Senior Advocate, on 8th July, 2019

Study Circle meeting on “Important Clauses of Study Circle meeting on “Valuation of Inventory
Form 3CD” by CA. Anuj Sharedalal on under Income Tax Act (section 145A- ICSD II –
02.08.2019 Live example of Working for adjustment in value
of inventory due to tax impact)”by CA. Jignesh

Shah on 07.08.2019

hhh

254 Ahmedabad Chartered Accountants Journal July, 2019

Ahmedabad Chartered Accountants Journal July, 2019 255

256 Ahmedabad Chartered Accountants Journal July, 2019