SEMINAR ON AUDITOR’S ROLE IN CONTROLLING INCREASING FRAUDS
The Internal Audit Committee of BCAS held its 2nd physical event of the year on 4 November, 2022 at Orchid Hotel in Mumbai. Titled, “Here a Fraud…There a Fraud…Everywhere a Fraud Fraud,” The event was themed around the increasing trends of frauds in today’s scenario and the role that Internal Auditors have in this ecosystem.
A total of 25 participants across various industries and practices attended this event. Subject matter experts and seasoned professionals also graced the event, including CA Sandeep Baldava, CA Deepa Agarwal, Mr. Sachin Dedhia, CA Chetan Dalal and CA Mahesh Bhatki who shared their decades of experience through innovative, practical, and relevant tools and case studies.
Each session was uniquely designed to cater to various relevant topics in today’s context. Some of the key topics covered include:
INDIRECT TAX STUDY CIRCLE MEETING ON ASSORTED INDIRECT TAX ISSUES
The Indirect Tax Study Circle organized two meetings in October 2022 on a Zoom platform to discuss various assorted issues.
The sixth meeting for the year 2022-23 was organized on 17th October 2022., wherein various issues revolving around the concept of actionable claims were addressed by group leader CA Raj Khona, Mumbai and mentored by CA Adv. Jatin Harjai.
Group leader CA Raj Khona made five exhaustive case studies. The presentation broadly covered the significant ramifications of the subtle changes on the following topics:
– Actionable Claims, their legal meaning and utility and applicability in various transactions w.r.t. the GST perspective
– Clause (e) of Para 5 of Schedule II to CGST
– Sundry write-backs or write-offs
– Insurance claims received/rejected, partial claims, dissecting each word of clause (h) of sec 17(5) of CGST Act, valuation provisions
– Implications of recent judgment concerning sports
Around 65 participants actively participated in the discussions on the three case studies. Mentor CA Adv Jatin Harjai gave his guiding comments on various aspects covered in all different case studies.
The next meeting, being the 7th meeting for the FY 2022-23 was held on 29th October 2022. The meeting was addressed by group leader CA Neha Sethi, Delhi and mentored by CA Pritam Mahure, Pune.
Group leader CA Neha Sethi made five case studies addressing the intricacies and issues of the topic revolving around the decision of the Honorable Supreme Court in the Case of Northern Operating Systems. The presentation and discussion broadly covered the intricacies of the following topics:
1. Economic Employer vs Legal Employer in case of Secondment
2. Issues w.r.t. to Reverse Charge Mechanism. Payment due date. Timelines for claiming ITC if reverse charge is unpaid
3. Effect of transfer pricing adjustments considered in the books or only as reconciliations in from 3CEB without giving effect in books of accounts
4. Connected macro agreements to determine the correct facts.
5. What if the agreement prescribes the valuation model at cost plus 10 per cent?
6. Issues of a reimbursement model for a tour operator? Whether the same is legally allowed or not?
Around 75 participants from across India benefitted by actively participating in the discussions. Mentor CA Pritam Mahure clarified the issues and queries raised in the variety of aspects covered in all different case studies with the support of the observations laid down in Northern Operating Systems and other legacy case laws of Ily Lilly, etc
MEETING ON “RECENT AMENDMENTS TO FEMA PERTAINING OVERSEAS INVESTMENTS.”
The Suburban Study Circle organized a meeting on 15th October, 2022 on the topic “Recent Amendments to Overseas Investment Regime in India.” At the meeting, CA Hardik Mehta made an insightful presentation and shared his views on the following topics:
DISCUSSION ON PRACTICES UNDER OUR INDIAN CULTURE
The Human Resources Development Committee (HRD) organized a Human Resources Development Study Circle meeting on 11th October, 2022 to discuss the topic. “Aisa Kyun? (Practices under our Indian Culture).” The discussion was presented by CA Vinod Jain who spoke in Hindi on the topic “Aisa Kyun”, Why we follow certain practices under our Indian Culture, e.g. Touching feet, Putting Tilak on the forehead, using a Swastik, the significance of bells in temples, etc.
Mr. Jain began his discussion by sharing that in Haryana, there is a saying that people should not sleep, keeping their legs towards Ravana’s Srilanka. He said today, we know the law of association but not the exact reason or science behind various practices followed in our Indian Culture.
He elaborated on how various practices should be followed, such as doing Namaste and Charan Sparsh (touching feet), the reasons behind the same and the benefits of observing the same. Such as, one cannot be angry while doing Namaste. During the Covid period, the entire world appreciated greetings through “Namaste” while maintaining social distance.
He also shared in detail about the scientific reasoning and benefits of putting Tilak and its association with the third eye chakra. Various materials were used for putting Tilak by different communities and the reason behind the same. He also shared the reasoning behind females wearing Natha, the benefits and science of using the sacred symbol of Swastik, etc.
He explained the science and reasoning behind the design and Vastu of ancient Indian temples. Why is Gumbaj used, and Om is pronounced underneath it? The benefits and logic of using “Ghanta” (bells) in temples, not wearing shoes etc. He explained in detail the reasoning and benefits of various practices followed in temples and how and why they differ from churches.
You can view the recording of this event. Visit the below link:
FIFTH EDITION OF INTERNAL AUDIT 101 AT BCAS
The 5th Edition of the Internal Audit Committee’s flagship event – “Internal Audit 101 (IA 101) was held on 14th, 15th & 16th of September 2022 in physical mode at the BCAS Auditorium in Mumbai. IA 101 is positioned as a Foundation Course for new entrants to Internal Audit and a refresher course for seasoned IA professionals.
On day 1, CA Mihir Sheth, President- BCAS, welcomed all the participants by sharing his views on the BCAS Internal Audit Committee’s vibrant programs and expressed his best wishes to all participants for the 2 and a half days.
The various sessions over 2.5 days were coordinated and anchored by young committee members – CAs Khushi Shah, Kishore Iyer, Prajit Gandhi and Samit Saraf.
The closing remarks on Day 3 were given by CA Uday Sathe, Chairman, Internal Audit Committee, wherein he expressed his gratitude to all esteemed speakers, panellists, committee members and participants for making the IA 101 an event that participants from all age groups will look forward to.
SEMINAR ON CHARITABLE TRUSTS
The Corporate and Commercial Laws Committee organised its annual programme on Charitable Trusts on 2nd September 2022 in a hybrid mode this year.
The program had 243 participants from 45 cities in India comprising 57 in physical mode and 186 in virtual mode.
CA. Gautam Nayak, Past President, BCAS, kick-started the first session with his astute views on the direct tax matters posed by the program mentor and director CA. Dr. Gautam Shah. The physical address by Hon. PCIT (Exemptions) Shri Anurag Sahay, Mumbai, was insightful in understanding the revenue expectations, chances of condonation of delay in filing procedural forms and compliances by the charitable trusts. PCIT Sir was candid in accepting the flaws in the ITR-7 and other Income Tax Compliances on the portal.
The next session was a classic disposition on FCRA applicable to the trusts. The compliance is taxing for the genuine trusts in an area for which the ministry of home affairs has tightened its controls. CA. Suresh Kejriwal from Kolkata joined online through zoom while CA. Anjani Sharma from New Delhi joined in physically to address the audience. The duo jointly covered the intricate issues and attended to the questions posed by the audience.
In the post-lunch session, the Treasurer of BCAS, CA. Zubin Billimoria covered in detail the CSR requirements as per the Companies Act, 2013 while Ms. Ingrid Srinath acquainted the audience with the nuances of the Social Stock Exchange – Its sunrise and its way forward. Both sessions were quite interactive.
The last session included a panel discussion on the various Litigation issues concerning GST. The new-born GST law had a young panel comprising panellists CA. Abhay Desai from Vadodara, CA. Mandar Telang, Managing Committee Member of BCAS and CA. Gaurav Save as the moderator. Both CA Desai and CA Telang dwelt upon the whole concept of the applicability of GST by answering various aspects of the law divided in different buckets by the moderator. Prosand cons of aggressive as well as conservative stands were discussed by the panel.
CA Gunja Thakrar and CA Gaurav Save with the help of convenors CA Bhavesh Gandhi and CA Sneh Bhuta and under the guidance of CA Gautam Shah and CA Abhay Mehta ably coordinated the programme.
TWO MEETINGS ON RECENT GST AMENDMENTS
The Indirect Tax Study Circle organised two online zoom meetings in August 2022 to discuss the recent amendments made by the 47th GST Council Meeting. The topics discussed included:
I. Renting of Residential Dwelling on 6th August, 2022
Group leader CA Adyta Surte made seven exhaustive case studies on the recent changes in GST law with respect to the changes in exemption and reverse charge mechanism notification in relation to renting residential dwellings. The presentation broadly covered the major ramifications of the subtle changes on the following topics:
1. Charging of GST on forward charge in case if specified category is provided in reverse charge and related repercussions
2. Does a commercial electrical meter constitute a commercial property?
3. Eligibility of ITC in case the property is partially used for residential as well as business purposes
4. Issues regarding renting of flats by Company for the use of its directors
5. Is registration necessary to discharge GST in another state, or can IGST be paid for the same?
6. Differences between renting residential dwellings and accommodation services
Mentor CA Vikram Mehta gave his guiding comments on various aspects covered in all different case studies. 146 participants attended the meeting.
II. Goods Transport Agency on 18th August 2022
Second meeting was held on 18th August 2022 on the topic “Goods Transport Agency”. The group leader was CA Jignesh Kansara who was mentored by CA Vasant Bhat.
Group leader CA Jignesh Kansara made 13 case studies addressing the intricacies and issues in the Goods Transport Agency segment, especially concerning changes made by the 47th Council. The presentation and discussion broadly covered the intricacies of the following topics:
1. Tax treatment under different methods
2. Differentiating points for payment under the Forward charge and when the recipient is liable to pay under the reverse charge
3. Whether a switchover is possible between rates of 5% & 12%
4. Issue of consignment notes and intricacies thereof
5. Case studies emanating out of the Reverse Charge Mechanism
6. Procedural lapses regarding non-information to Jurisdictional officers
Over 120 participants benefitted from the active discussion.
LECTURE MEETING ON RECENT IMPORTANT DECISIONS IN INCOME TAX
BCAS organized a hybrid lecture meeting on “Recent Important Decisions in Income Tax” by Adv. Hiro Rai on 15th June, 2022. The key takeaways of the lecture meeting are as follows:
1) Reason and logic behind every judgment help you to understand the issue in-depth and helps in future when one faces the same issue. The first judgment he dealt with was Union of India vs Ashish Agarwal. He shared some of the important points from the judgment. One of them was that Supreme Court lays down that new Section 147 can even be applied to earlier years too. This can affect the arguments for cases under the old provisions, as new requirements are extensive.
2) The second judgment covered was DIT vs Mitsubishi Corporation, dealing with advance tax and interest u/s 234B for non-residents. Supreme Court held that the section deals with tax deductible at source. The main argument made was an amendment made on 1st April, 2012 in Section 209(1)(d), which says that tax deductible is not to be reduced if the payer has paid the amount without tax deduction. Since this amendment was made, the assessee’s stand before 1st April, 2012 was upheld. He also explained the importance of the said argument as it can be applied by departments too in various other cases.
3) Another critical Supreme Court judgement dealt with was Shakti Metal Depot vs CIT dealing with section 50 of the Act. The Supreme Court upheld the decision of the High Court dismissing the appeal of the assessee by supporting the argument that merely not using the asset for couple of years for business doesn’t impact the character of the asset in the block and any gains of sale of such asset should be treated as short term capital gains.
4) The next judgment discussed was South Indian Bank vs CIT, dealing with Section 14A. The important point of the department, which was negated by the Hon. Supreme Court was that nowhere it is written that separate books of accounts need to be maintained by the assessee.
5) During his talk, the faculty also touched upon many other important decisions from the Supreme Court, High Courts and the ITAT. He also answered various queries posted by the participants.
BCAS Lecture Meetings are high-quality professional development sessions which are open-to-all to attend and participate. If you have missed the Lecture Meeting, but still interested in viewing the entire meeting video then…
Visit the below link or scan the QR code with your phone scanner app:
Link – https://www.youtube.com/watch?v=LwsgqqNj0RI
MEETING TO DISCUSS GUJARAT HIGH COURT RULING
The Indirect Taxes Law Study organised its 3rd meeting for the year 2022-23 to discuss the outcomes of Hon. Gujarat High Court judgment in the case of Munjaal Manishbhai Bhatt v. UOI organised on 14th July 2022, the meeting was addressed by group leader CA. Yash Parmar & mentored by CA. Naresh Sheth
The group leader CA. Yash Parmar prepared 6 case studies based on the judgment delivered by the honourable High Court of Gujarat in the case of Munjaal Manishbhai Bhatt v. UOI covering various aspects of the real estate sector, which shall have ramifications due to reading of the valuation of land. A participative discussion covered various practical aspects of the scheme, such as:
1. Implications when the value of land is not separable
2. Transfer of UDS along with constructed flat
3. Transfer of land as a conveyance to society
4. Interpretation difference of terms Prescribed Vs. Notified
5. Theory of accretion
6. Issues in the refund
Around 57 participants benefitted from the informative discussion.
LECTURE MEETING ON “FILING OF INCOME TAX RETURNS”
On 13th July 2022, the Bombay Chartered Accountants Society organised a hybrid lecture meeting on the topic “Filing of Income Tax Returns for A.Y. 2022-23” by CA Jhankhana Thakkar and CA Utsav Shah. The opening remarks were given by the President, Mihir Sheth, followed by an introduction of the speakers. The lecture meeting was divided into two parts-
i. CA Jhankhana Thakkar lucidly explained the amendments brought in by the Finance Act 2021 and The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 which have an impact while determining the income for the previous year relevant to A.Y. 2022-23.
ii. CA Utsav Shah explained the various changes made in the income tax return forms for A.Y. 2022-23 notified by the CBDT. He pointed out the practical points one needs to keep in mind while filing income tax returns.
BCAS Lecture Meetings are high-quality professional development sessions which are open-to-all to attend and participate. Missed the Lecture Meeting, but still interested in viewing the entire meeting video
Visit the below link :
26TH INTERNATIONAL TAX & FINANCE CONFERENCE
The 26th International tax & Finance Conference was held at the Ananta Hotels and Resorts, Udaipur, India’s City of Lakes, from 4th – 7th August, 2022.
The conference was attended by 236 participants, including 9 non-residents and 30 online participants. It began with the traditional lighting of the lamp and blessings by Goddess Saraswati in an endeavour to learn new things.
The conference had one paper for presentation and three papers for group discussion papers. All four paper writers, namely CA Geeta Jani, CA Girish Vanvari, CA Himanshu Parekh and CA Padamchan Khinch respectively provided well-researched papers on the subjects BEPS 2.0 – Globe Rules and Pillar 2 – Case Studies, Cross Border Mergers, Demergers & Restructuring – Tax & Regulatory Aspects, Select Controversies/ Emerging trends in International Taxation and Cross-border Employment Remuneration and Benefits. The sessions were ably chaired by Dr. CA Mayur Nayak, CA Sushil Lakhani, CA Gautam Nayak & CA Kishor Karia.
This time three-panel discussions by panels consisting of distinguished panellists were conducted as follows-
1. Panel discussions on Cross Border Swift Payment Mechanism and its Importance, Rupee Ruble Payment System, Digital Currency and its future by a panel consisting of Shri Gopalaraman Padmanabhan, Shri Mahalingam Gurumoorthy, and Shri Ananth Narayan and ably chaired by CA. Dilip Thakkar and Moderated by CA. Sunil Kothare. This Panel was in a hybrid mode, whereby the entire Panel was online whereas the participants were at the venue of the ITF Conference.
2. Panel discussions to deal with intricate issues in the field of international taxation in the form of Case Studies in International Taxation consisting of CA Pranav Sayta (Chairman cum Moderator), Hon’ble ITAT Member Shri Amit Shukla, Sr. Adv. Shri Ajay Vohra and Shri Sanjeev Sharma, Principal Director of Income Tax (Investigation).
3. The third eminent and well-distinguished panel on the subject “Transfer Pricing – Global Developments” consisting of CA T P Ostwal (Chairman cum Moderator), CA Karishma Phatarphekar, CA Bhavesh Dedhia and CA Vijay Iyer dealt with issues arising on account of due to Covid 2019 & Russia- Ukraine War.
A significant contribution to the success of this conference was made by Dr. CA Mayur Nayak, Immediate Past Chairman, CA Nitin Singala, Chairman, CA Chetan Shah, Co-Chairman, CA Jagat Mehta, CA Rutvik Sanghvi, CA Siddharth Banwat, CA Mahesh Nayak, CA Tarunkumar Singhal, CA Anil Doshi, Deepak Kanabar, CA Durga Shaankar Sharmaji, CA Chaitanya, CA Naman Srimal. CA Kishor Pahuja helped with local coordination, arrangement for the entertainment programme and a visit to Nathdwara.
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