Society News for month of October 2023

Details:

LEARNING EVENTS AT BCAS

1. Full Day Workshop – “Use of Technology in GST Compliance” held on 9^th September, 2023, at BCAS Hall.

 The Indirect Taxation Committee jointly with Technology Initiative Committee organised a full day workshop on the use of technology in GST compliance through a demonstration of various automation tools. Automation and use of software in compliance processes can help professionals increase the efficiency of their team and improve compliance.

The 1^st session was addressed by CA Jigar Doshi and CA Yash Goenka on strategies for evaluation and selection of automation software and practical challenges in implementation. They explained the checkpoints and important considerations while selecting ERP and ASP / GSP Software.

This was followed by a Panel Discussion on Issues, challenges and areas for automation in GSTR1, GSTR 3B and ITC Reconciliation by use of ASP / GSP Software. The Panel was composed of Darshan Shah and CA Punit Mehta from Tally, CA Aneree Shah from ClearTax and CA Vaishali Dedhia and the panel was moderated by CA Mandar Telang.

The 3^rd session was addressed by CA Nachiket Pendharkar who explained the use of VBA and Macros in Excel for preparation of data for GST returns and reconciliation.

CA Rajiv Narayanan explained and demonstrated the use of Robotic Process Automation and Artificial Intelligence tools like Python, Alteryx, Chat GPT and Gamma.app in the 4^th and the final session. He emphasised on the increase in efficiency and accuracy of the team by use of RPA and AI.

The event was attended by more than 50 participants and they benefited from the deliberations of the speakers.

2. Half Day Seminar on “Revised Format of Audit Report for Charitable Institutions”, held on 2^nd September, 2023, at IMC, Churchgate.

A half-day seminar on Revised Format of Audit Report containing a session explaining the changes made in Form 10B and 10BB applicable for A.Y. 2023–14 followed by a Panel Discussion was organised by the Taxation Committee in a hybrid mode.

CA Sonalee Godbole explained Form 10B clause-wise with a break-up of the details being called by the auditor. She explained the care to be taken while reporting the information and the risks associated with incorrect or incomplete reporting and how the auditor is responsible for the entire reporting to the Income-tax Department.

At the time of the panel discussion — clause-wise questions and answers were undertaken by CA Anil Sathe and CA Gautam Nayak. They cited the decisions of the courts and tribunals which helped the participants to understand the coverage of the revised forms.

The seminar ended with a Q&A session with the participants. The seminar was attended by over 425 participants physically and online.

Representation dated 11^th September, 2023, requesting the deferment of the applicability of the revised form 10B / 10 BB (Audit report for Charitable Trusts) by one year.

Based on the various aspects discussed in the said seminar, the Society, with the help of Taxation Committee, also made a representation to the Hon’ble Finance Minister on 11^th September, 2023, expressing concerns over complex coverage of the forms vis-a-vis machinery and resources available with the assessees (viz. charitable / non-profit organisations) to compile the details and information called for in the said forms. The Society therefore requested the deferment of the revised forms for a period of one year and continuance of the old forms for the time being.

To read the Representation, Scan the QR code on the following page:

[Editor’s Note: Vide Circular No. 16/2023, dated 18^th September, 2023 the CBDT has extended the due date for furnishing Audit Reports in form 10B/Form10BB for the A.Y. 2023–24 from 30^th September, 2023, to 31^st October, 2023]

3. “Forensic Accounting and Investigation Standards (FAIS)” event held on Friday, 1^st September, 2023, at Hotel Parle International.

The ICAI has recently issued revised Forensic Accounting and Investigation Standards (FAIS). These standards have now become mandatory for all the engagements conducted on or after 1^st July, 2023. Internal Audit Committee organised this seminar to enlighten the participants about the framework governing these revised standards, the basic concepts covered in the standards, legal framework and report writing. The seminar received a good response, particularly from young participants who want to foray into the field of forensic audits.

The seminar was divided into four sessions followed by a panel discussion. The faculty for the sessions were part of the Expert committee of ICAI which was involved in the standard-setting process and hence they had good insights on the topic. CA Satish Shenoy, in his key-note address, spoke about the need for FAIS, governing framework and professional opportunities for CAs. CA Nikunj Shah, in the first technical session discussed various concepts across FAIS. This was followed by discussion about its relevance and recognition and the extent of reliance on the work of the professionals in legal world which was taken by CA Uday Kulkarni. Lastly, CA Chetan Dalal shared his practical experiences, recent cases and discussed a few tips about the report writing. The seminar ended with a panel discussion between all the three technical session experts and interaction with the participants in Q&A form which was guided by CA Ashutosh Pednekar. All speakers were very lucid and they made the sessions very interesting and engaging with lots of examples.

Link for downloading the standards:
https://resource.cdn.icai.org/75009daab030723.pdf

4. Direct Tax Laws Study Circle on “Key changes under TCS provisions” on 1^st September, 2023, in Online Mode.

The study circle meeting was led by CA Chaitee Londhe wherein the participants discussed the following points:

• Amended Provisions of Section 206C(1G) of the Income-tax Act, 1961 and her analysis of the same.
• Overview of the Amendments introduced to the TCS provisions by the Finance Act, 2023.
• Subsequent changes were introduced to the TCS provisions by way of Circular No. 10/2023.
• Amended Provisions of Section 206CC and 206CCA of the Income-tax Act, 1961.
• Amendments introduced in the Liberalised Remittance Scheme of RBI.
• Clarifications issued by the CBDT with respect to the amended TCS provisions.

The speaker delivered a comprehensive analysis and insightful perspective on the amended TCS provisions, offering invaluable clarity by dissecting the CBDT’s issued clarifications.

5. Panel Discussion on “Investing in India’s Amrit Kaal: Equities and beyond” held on Friday, 25^th August, 2023, in Online Mode.

In a dynamic financial landscape, the event “Amrit Kaal” organised by the Managing Committee shed light on the shifting paradigms of investment. The speakers Mr Kushal Thaker, Mr Aditya Sood, and CA Vikas Khemani meticulously navigated through the evolving asset classes, emphasising how Alternative Investment Funds (AIFs), Commodities, Portfolio Management Services (PMS), and even Sovereign Gold Bonds are carving distinctive realms within the investment spectrum. These unconventional avenues, once ancillary, are now emerging as robust investment classes, offering diversification and new avenues for wealth creation.

A pivotal theme of the event was the transformation in India’s macroeconomic landscape. The speakers illuminated how India’s economic trajectory has witnessed notable shifts over recent years, reshaping the investment narrative. Insights were shared on the changing dynamics of growth, inflation, fiscal policies, and global positioning, offering attendees a comprehensive view of the macroeconomic trends shaping investment decisions.

Of paramount significance was the discourse around equity investments. The event unpacked how equity, as an enduring asset class, is extending its allure to new entrants in the market. With insightful discussions on long-term strategies, risk management, and the role of technology, attendees gained a profound understanding of the opportunities and challenges that equity investments present, not only for seasoned investors but also for those embarking on their investment journey.

Throughout the event, the resonating message was the need for adaptability. The financial landscape is no longer static; it’s a dynamic ecosystem where traditional norms are being redefined. The event encapsulated the essence of embracing change, whether by exploring diverse asset classes, decoding macroeconomic shifts, or embracing equity investments as a transformative force.

The panel discussion was guided by CA Abhay Mehta who moderated the session.

Link for watching the session:
https://www.youtube.com/watch?v=0xs5frO6kdo

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6. Direct Tax Laws Study Circle meeting on “Reassessment under the Income-tax Act — Law and Practice” held on Thursday, 24^th August, 2023, via Zoom.

Dharan Gandhi took up Part 2 of the meeting on the topic of Reassessment under the Income-tax Act — Law and Practice, wherein he discussed the following concepts and issues relating to the assessment procedures:

• Section 150 of the Income-tax Act, 1961 relating to cases where assessment is in pursuance of an order on appeal.

• Section 151 of the Income-tax Act, 1961 relating to Sanctions for issue of notices by the specified authority for the purposes of Section 148 and Section 148A.

• Procedure for reassessment under the new provisions in Search and Non-Search Cases, and Search Cases of a third-party including steps, approval and time period relating to the same.

• Relevant Case Laws on Section 148 and 148A of the Income-tax Act, 1961.

• Analysis and views of various courts on notices issued at different points in time.

The speaker conducted a thorough examination of the recently established reassessment provisions, clearing not only their intricacies but also delving into the diverse perspectives presented by various courts in response to the raised issues during the reassessment proceedings. The session concluded with a vote of thanks.

7. Direct Tax Laws Study Circle meeting on Issues with respect to “Deductions under Capital Gains” held on Friday, 18^th August, 2023, in Online Mode.

The study circle meeting was led by CA Shashank Mehta in which the participants discussed various issues w.r.t. allowability of deductions under capital gains, with the help of Case Studies. The following concepts were covered:

• Cost of Acquisition with respect to section 55 of the Income-tax Act, 1961 (Act).

• Eligible exemption as per section 54F read with section 50C of the Act.

• Cost of acquisition in case of House Property where the entire amount of Interest is not allowed as a deduction u/s 24(b) of the Act.

• Eligible Indexation as per section 48 of the Act.

• The criteria to be fulfilled for claiming exemption as per section 54, section 54EC, section 54F of the Act.

• Deduction under section 54 in case investment in new house property is not purchased in the name of the Assessee.

The group leader provided a comprehensive breakdown of capital gains deductions, citing case studies and case laws to illustrate allowable deductions and exemptions shedding light on important concepts.

8. BCAS’s Social Cause Visit to Umargaon: “Nurturing Education and Nature” on 5^th and 6^th August, 2023.

As one of the initiatives of the Managing Committee, in a remarkable display of community spirit, BCAS & BCAS Foundation orchestrated a two-day event that combined the power of education and environmental stewardship. A group of 27 dedicated volunteers participated in the social cause visit at Umargaon.

The event kicked off with a Social Cause visit to schools helped by the BCAS Foundation in collaboration with the Rushabh Foundation which took on the admirable responsibility of providing education infrastructure in 25 schools, through the introduction of Digital Classrooms. These schools overcame the challenge of teacher shortages and ignited a newfound enthusiasm for learning. Witnessing the astonishing results achieved in just six months was nothing short of awe-inspiring.  BCAS has assured its support to ensure quality education for all. The team played indoor and outdoor games, fostering an atmosphere of joy and inclusivity.

As planned, the team visited Bhaskar Save’s Natural Farm, “Kalpavruksha”. Revered as the ‘Father of Natural Farming’ in India, Bhaskar Save and his successors illuminated the principles of Natural Abundance. Exploring the dichotomy between Natural and Organic Farming, the team learned how the farmer aligns with the fundamental principle of cooperation inherent in nature itself. The five critical concerns of farming — Tillage, Fertility Inputs, Weeding, Irrigation, and Crop Protection — were elegantly addressed through nature’s intricate balance. Bhaskar Save’s conviction that “Non-violence is only possible through natural farming” resonated deeply, a testament to the harmony that can be achieved through sustainable practices.

On the subsequent day, the group ventured to the proposed land of the MaBap Foundation. The four pillars of the foundation are Prakrutik Chikitsa (Natural Healing), Sanskrutik Vikas (Cultural Development), Vedic Abhyas (Vedic Practices), and Adhyatmik Unnati (Spiritual Progress), through which the foundation embodies holistic growth. The significance of PanchTatva (Five Elements) in every facet of existence was highlighted, setting the tone for a symbolic tree-planting ceremony. Excitement and enthusiasm rippled through the group as they planted Ashopalav, Neem, Mango, Jamun, and Saru trees, marking a significant stride towards BCAS’s 75^th year.

The group treasured enriching memories and returned with an enlightening experience of profound learning, gratitude, and an unshakable belief in the power of concerted efforts to create a better world.

9. A Panel Discussion on “Disclosure of Foreign Assets and Incomes” held on 26^th July, 2023, in Online Mode.

The Taxation Committee organised a Panel Discussion on Disclosures of Foreign Incomes and Assets in a virtual mode. The Panel consisted of CA Rutvik Sanghavi, CA Kartik Badiani, and CA Mahesh Nayak who co-authored the book on “Disclosures of Foreign Assets and Incomes” published by BCAS.

CA Hardik Mehta moderated the session addressing various questions to each of the panelists bringing out comprehensive responses from each Panelist.

CA Rutvik Sanghavi explained the importance and objective and the rationale behind the enactment. He also stressed on the principles one needs to keep in mind while reporting the same. He also explained the importance of the documentation for reporting the foreign assets and income. He also briefly touched upon reporting of gifts, ESOPs, etc. The issue of mismatches was also explained and how to mitigate the same with proper documentation.

CA Kartik Badiani answered questions with respect to reporting in the foreign asset schedules including the impact of change in residential status, reporting by minors, reporting of joint holding of house properties, investments in Gift City etc. He also took the case study of ESOPs and its reporting issues.

CA Mahesh Nayak took the participants through the case study of overseas brokerage accounts and how to report the same. He also explained as to which cases will be covered in subparts A1 to A4 and others in B of the FA Schedule.

All three panelists touched upon various other issues involving the FA schedule and what each subpart intends to cover. They even explained the issue regarding the easy availability of foreign exchange rates for reporting., the issue of calendar year vs. financial year etc. The panel discussion was very well received and appreciated the insights shared by all three panelists.

Link to access the space session: https://www.youtube.com/watch?v=dXoApEdvwnw

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10. A Twitter Space Session on “Filing ITR for A.Y. 2023–24” held on 4^th July, 2023, in Online Mode.

This Twitter Space Session on filing ITR for A.Y. 2023–24 was organised by the Technology Initiative Committee, with an objective of sharing the crucial precautions and best practices for filing ITR that professionals need to observe.

In a candid discussion that was moderated by the chairman of the committee, CA Ameet Patel, the speakers, CA Nitin Shinghala, CA Sanjeev Lalan, and CA Rajni Shah, shared insights on the dos and don’ts for tax professionals to ensure a hassle-free tax filing experience.

The session was open to all and got an encouraging response as several non-members, including representatives from the media attended the same.