Society News for the month of November 2024

Details:

1. Non-Profit Organisation Conclave held on 9^th October, 2024, Venue: Walchand Hirachand Hall IMC, Churchgate.

This event was s organised by the Finance, Corporate, and Allied Laws Committee along with the Internal Audit Committee of the Bombay Chartered Accountants’ Society (BCAS) jointly with The Chamber of Tax Consultants and supported by the Rotary Club, which was attended by approximately 125 participants.

The Conclave encompassed a series of interactive sessions that provided a comprehensive view of managing and administering a Non-Profit Organization. A brief summary of the sessions is as under.

2. Student Study Circle on Transfer Pricing Audit from an Article’s Perspective held on 7^th October, 2024, via Zoom.

The Human Resource Development Committee of BCAS organized a Students’ Study Circle on “Transfer Pricing Audit from an Article’s Perspective” on Monday, 7^th October, 2024. The session was led by Mr Heet Jain, a CA Final student, who delivered a comprehensive presentation on the fundamentals and key regulations governing Transfer Pricing in India. His presentation covered a wide range of topics, including essential definitions, various transfer pricing methods, and an overview of the audit processes and their approach. He also shared practical experiences to help beginner article students navigate the complexities of Transfer Pricing Audits.

CA Niraj Chheda, the mentor for the session, provided valuable insights and guidance throughout, offering expert interventions as needed. The study circle saw active participation from students across India.

50 participants attended the discussion, and it was well received.

YouTube Link: https://www.youtube.com/watch?v=-IkvILZgRmY&t=2s

3. Seminar on ‘The New Criminal Laws — Experts’ Overview’ held on 27^th September, 2024, Venue: Runanubandha Hall, Yashwantrao Chavan Centre, Mumbai.

The Finance, Corporate and Allied Laws Committee of BCAS organised a seminar titled “The New Criminal Laws — Experts’ Overview”, which was attended by approximately 50 participants.

The event featured an in-depth discussion of three recently introduced legislations: the Bharatiya Nyaya Sanhita (BNS), Bharatiya Nagarik Suraksha Sanhita (BNSS), and Bharatiya Sakshya Adhiniyam (BSA). Senior Counsel Adv. Amit Desai presented a comprehensive analysis, focusing on the implications of the new provisions on the criminal justice system and advocating for a balanced approach.

Adv. Ekta Tyagi and Adv. Vikrant Negi followed with a legal overview of these laws that addressed various procedural aspects like filing police complaints, evidence scrutiny, etc. They emphasized the need for clarity to safeguard victims’ rights while maintaining the integrity of law enforcement. The seminar concluded with a discussion between Adv Anand Desai and Shri D. Sivanandhan, former Police Commissioner of Mumbai, exploring the relationship between legal reforms and effective policing. They underscored the importance of collaboration and adequate training in implementing these laws successfully. Overall, the seminar provided a crucial platform for understanding the complexities of the BNS, BNSS, and BSA and the collaborative efforts necessary for their effective application.

4. Indirect Tax Laws Study Circle Meeting was held on 27^th September 2024 via Zoom.

Group leader, CA Tanvi Gupta, in consultation with Group Mentor, Adv Harsh Shah, prepared 5 case studies covering various contentious issues around block credits under GST [excluding clauses (c) & (d) of Section 17(5)], which was attended by approximately 70 participants.

The presentation covered a detailed discussion on the following aspects:

i. Availability of ITC on motor vehicles under various scenarios.

ii. Availability of ITC on employee welfare expenses.

iii. ITC eligibility of sales promotion expenses.

iv. Availability of ITC on CSR spending is over and above the mandatory 2% as per the Companies Act, 2013.

v. Availability of ITC on RCM payments/payments made pursuant to investigation/adjudication proceedings u/s 74 of CGST Act

vi. Availability of ITC on payments to be made u/s 74A of CGST Act, especially for fraud cases.

vii. Reversal of ITC on account of normal loss, abnormal loss, goods lost in transit, goods written off, etc.

5. International Economics Study Group — Economic & Security challenges to India from recent Geopolitical events held on 11^th September, 2024 Via Zoom.

Group Leader CA Harshad Shah discussed about India’s strategic and economic landscape being reshaped by recent geopolitical developments in its neighborhood, such as instability in Bangladesh, marked by political strife and the rise of Islamist factions which potentially threatens India’s security, particularly in West Bengal & Assam.

He also touched upon escalating tensions between Iran & Israel, which complicate India’s foreign policy due to its energy ties with Iran and growing defense cooperation with Israel, which could disrupt India’s energy security and challenge its diplomatic balance in the Middle East. Further, the Ukraine-Russia war has impacted India by disrupting global supply chains, affecting key imports like oil & fertilizers. Additionally, the outcome of the U.S. elections could significantly affect India’s economic and security landscape, with potential shifts in U.S. foreign policy, Indo-Pacific strategy, trade relations, visa and immigration policy, and technology partnerships adding uncertainty to India-U.S. ties.

6. Webinar on Tax Audit was held on 9^th September, 2024 via Zoom.

The Direct Tax Committee of the BCAS organized a webinar on recent changes relating to Tax Audits causing immense confusion in reporting to address the various nuances, including a —practical way to handle clauses 21, 22, 34, and 44 of Form 3CD. Approximately 250 participants attended this webinar.

In the first session, Adv Krupa Gandhi addressed the issue of expenditure incurred to provide any benefit or perquisite. She gave lucid examples of freebies given by Pharma companies, differentiated between Club expenses incurred for personal purposes and expenditures at Belvedere Club/ Taj Club, etc. She clarified the provisions relating to expenditure incurred for any offence or purpose which is prohibited by law or penalty or fine for violation of any law and compounding.

In the second session, CA Yogesh Amal explained major issues with respect to the bifurcation of expenditure as per GST — Expenditure relating to goods or services exempt from GST, entities falling under the composition scheme, etc. He also touched upon the various clauses of Form 3CD and explained the applicability of Form 3CA-3CB. He shared practical insights on a few issues faced by the participants and also replied to various queries raised by the participants, clearing doubts on section 40A(7), GST, Offence, penalties, MSME, and MRL.

7. Webinar on Computation of Total Income of Charitable Trusts and Filing of ITR 7 held on 21^st August 2024 via Zoom.

The The Taxation Committee of Bombay Chartered Accountants’ Society, jointly with the IMC Chamber of Commerce & Industry, organised a Webinar on the Computation of Total Income of Charitable Trusts and Filing of ITR-7, which approximately 380 participants attended.

CA Gautam Nayak began the session by outlining the key provisions governing the computation of total income for charitable trusts and institutions. He highlighted the importance of understanding the exemption under Sections 11 and 12 of the Income Tax Act, which apply to charitable and religious trusts. He discussed the specific conditions that must be met for these exemptions to be valid, such as proper utilization of funds and the maintenance of books of accounts. He also touched upon recent amendments and clarifications issued by the CBDT, stressing the need for charitable trusts to remain compliant with evolving tax laws to avoid penalties or disqualification from availing exemptions.

Following this, CA Ashok Mehta gave a comprehensive overview of ITR 7, the income tax return form used by charitable trusts and other institutions. He explained the step-by-step process involved in filing the form and highlighted common challenges faced by trustees and chartered accountants in the process. He emphasized that it is crucial to ensure accuracy in reporting sources of income, application of funds, and other statutory details to avoid complications and also discussed several nuances, such as the reporting of exempt income, donations, and the requirement for filing audited financial statements.

The webinar provided attendees with an in-depth understanding of the intricacies involved in the computation of income and the filing of tax returns for charitable institutions and underscored the importance of compliance to maintain the trust’s exemption status.

YouTube Link: https://www.youtube.com/watch?v=Ahe3ZcciOAw