Society News for the month of December 2024

Details:

1. AI and Technology ki Pathshala: A Technology Orientation Program for Article Students, held on Thursday, 7th November, 2024 and Friday, 8th November, 2024 @ virtually.

The Human Resource Development Committee of BCAS organised this interesting program to provide article students with a robust foundation in artificial intelligence (AI) and emerging technologies, empowering them to stay ahead in the dynamic professional landscape. The program commenced with an interactive session led by CA Nirav Bhanushali, who demonstrated the effective use of productivity applications within MS Office 365 and Google Workspace. His live demonstration showcased practical tips and tricks to enhance efficiency in managing tasks, documents, and collaboration. CA Narasimhan Elangovan delved into the exciting possibilities of leveraging AI tools like ChatGPT. He illustrated how these tools can be employed to simplify articleship tasks, enhance learning, and prepare more effectively for exams.

On the second day, CA Abhay Gadiya introduced participants to cutting-edge tools such as Power Query and Power BI. His session emphasised how these technologies can be harnessed to process and analyse large datasets, generate meaningful insights, and present data visually, enabling informed decision-making. CA Nikunj Shah, who offered a deep dive into Microsoft Excel, equipping participants with advanced techniques to streamline and enhance their workflow. The program drew enthusiastic participation from over 55 article students, who appreciated the interactive and hands-on approach of these sessions.

2. FEMA Study Circle Meeting on Amendments in NDI Rules and Compounding under FEMA, held on Friday, 25th October, 2024 @ Virtual

During the session, Group Leader — CA Deepender Kumar extensively discussed amendments on the subject. He emphasised the expanded scope of non-debt instruments under FEMA, clarifying that NDI includes investments not classified as debt, such as equity, capital contributions, and other equity-characteristic securities. The amendments outlined specific instruments that qualify as equity, such as shares, convertible securities, and share warrants, which help investors precisely understand which instruments are eligible for foreign investment. He highlighted that these clarifications provide clear guidelines for investors and regulators alike, reducing ambiguity in foreign investment transactions.

The focus of the meeting was on sectoral changes and investment caps. Certain sensitive sectors like insurance, defence, and media now have revised foreign investment limits, aligning with India’s strategic economic objectives. These sector-specific adjustments include transitions from the automatic to the approval route, which mandates prior government or RBI approval for foreign investment in certain areas. This change underscores the need for entities to be vigilant in understanding sectoral thresholds and compliance requirements. He noted that businesses must carefully interpret these sector-specific regulations to ensure they remain compliant, especially in sectors where government intervention has increased. The meeting was well received by 40+ participants attending the discussion.

3. Suburban Study Circle Meeting on ‘Framework of Adjudication, recent ROC/RD orders and important amendments under the Companies Act, 2013, held on Thursday, 24th October, 2024 held at C/o Bathiya & Associates LLP, Andheri (E).

Group Leader CS Raj Kapadia explored the framework of adjudication, recent orders by the Registrar of Companies (ROC) and Regional Directors (RD), and key amendments under the Companies Act, 2013. He covered Sections 15 and 16 of the MSMED Act, 2006, highlighting critical compliance requirements for payments to MSME suppliers and the importance of Form MSME 1. The key discussions were:

• Payments to MSME suppliers must be made within the agreed due date, not exceeding 45 days.
• Failure to pay on time incurs compound interest at three times the bank rate, calculated monthly.
• Interest accrual starts the day after the due date.
• Recent amendments focus on decriminalising certain offenses under the Companies Act, aiming to reduce punitive measures and promote ease of doing business.
• ROC/RD orders have increased scrutiny and enforcement of compliance requirements for corporations.

The Group Leader effectively addressed audience queries, providing clear explanations and practical insights on navigating complex compliance issues.

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

Group leader, CA Chaitanya Vakharia, in consultation with Group Mentor, CA Ashit Shah, prepared six case studies covering various contentious issues around the filing of the GST Annual Return in GSTR-9 and Annual Reconciliation in GSTR 9C for FY:2023–2024.

The presentation covered the following aspects for detailed discussion:

• Reporting of turnover in Table 5A of GSTR 9C
• Applicability for filing GSTR 9 and GSTR 9C for 2023-24
• Issues in filing annual returns after cancellation of GSTIN
• Reporting of ITC in table 6B of GSTR 9
• Additional reporting in GSTR 9 if not reported / wrongly reported in GSTR 1 and GSTR 3B
• Claim of ITC in cases of payments to vendors beyond 180 days

Around 80+ participants from all over India benefitted while taking active part in the discussion.

5. Finance, Corporate & Allied Law Study Circle —Professionals Be Aware of PMLA Provisions, held on Wednesday, 23rd October, 2024 @ Hybrid.

PMLA is an important legislation, at times linked to national security, and Group Leader CA Kinjal Shah dealt with the applicability of PMLA provisions to the professionals such as chartered accountants, company secretaries, and cost accountants in a lucid manner. He explained the origin of PMLA, offence of money laundering, proceeds of crime, rationale for bringing in CAs as reporting entities and some of the key FAQs issued by ICAI. The obligations were explained with the help of a work flow chart analysing the procedure. Unlike other reporting entities, CA, CS, CMA are required to report to their respective institute who in turn reports to FIU-Ind. The meeting was well appreciated by 85+ study circle participants.

YouTube Link: https://www.youtube.com/watch?v=kQy9TNdSjCo

6. Suburban Study Circle meeting – Inheritance and Succession Planning Held on Sunday, 20th October, 2024, @ Hotel Golden Delicacy, Borivali.

Succession laws dictate how assets are distributed upon an individual’s demise. In India, these laws are influenced by religious and personal status. Group Leader CA Toral Shah discussed that planning effectively through wills and private trusts can help avoid disputes and ensure a smooth transfer of assets to the next generation. Key Takeaways of the meeting were:

Intestate Succession (Without a Valid Will):

• If no will is created, assets are distributed as per legal guidelines:
• Hindus, Jains, Sikhs, and Buddhists: Governed by the Hindu Succession Act, 1956.
• Muslims are governed by Sharia Law.
• Christians, Parsis, and Jews are governed by the Indian Succession Act, 1925.
• If a case is not covered under the Indian Succession Act, it may be governed by the Hindu Succession Act.

Private Trusts:

– Private trusts are set up to manage and safeguard assets for beneficiaries, often used for estate planning and tax benefits.

– Provides asset protection and can reduce inheritance tax liabilities.

– Ensures that minors or vulnerable dependents are cared for, as specified by the trust’s terms.

– Offers greater control over how and when assets are distributed.

– `Laws governing private trusts in India include the Indian Trusts Act, 1882.

Group Leader effectively addressed audience queries regarding will preparations, gifts and she gave practical insights on navigating complex compliance issues. Overall 30+ participants attended the discussion.

7. Lecture Meeting on Hon’ble Supreme Court’s decision in case of Safari Retreats Pvt Ltd, held on Wednesday, 16th October, 2024, @ Zoom.

The learned faculty Sr. Adv. V. Sridharan explained the facts and the applicability of the very important and recent decision of the Apex court on availability of ITC for construction of immovable property. He explained how the apex court has differentiated the definition of ‘Plant and Machinery’ given in the explanation appended to section 17 of the CGST ACT applies to the expression ‘Plant or Machinery’ used in clause (d) of sub-section 5 of section 17. The difference of ‘and’ and ‘or’ becomes crucial too. He explained the important terms ‘own account’, ‘Plant’, ‘ITC – a right’, ‘Functionality test of a plant’ interpreted in the decision. He analysed the judgement in terms of its impact and way forward. The lucid analysis benefited all the 275+ participants attending the lecture meeting.

YouTube Link: https://www.youtube.com/watch?v=lXEXnTBG9ZQ

8. NFRA Interaction – Evolving Assurance Landscape event held on Friday 4th October, 2024, Venue: Jio World Convention Centre

Topic 1: NFRA Interaction – Points Discussed:

• Dr. Ajay Bhushan Prasad Pandey, Chairman, NFRA briefed the participants about the history and need for National Financial Reporting Authority (NFRA). He also explained the expectations of NFRA from the Auditors and Chartered Accountants.
• The other two speakers, Mr. Shyam Tonk, Executive Director, NFRA and Mr. Vidyadhar Kulkarni, Principal Consultant, NFRA discussed the recent disciplinary orders of NFRA against Chartered Accountants, the outcomes and important pointers to be noted for future audit assignments.

Topic 2: Panel Discussion on Evolving Assurance Landscape

Panellists: Dr. Ajay Bhushan Prasad Pandey, CA Mukund Chitale and CA Manoj Fadnis

Moderated by CA Himanshu Kishnadwala and CA Amit Majumdar.

Points Discussed:

• Proposed Revision in SA 600 “Using the work of other auditor” by NFRA
• Recent circular dt. 3rd October, 2024 by NFRA on the role of principal auditor and other auditors in group audit and consolidated accounts.
• Other developments and challenges faced by Chartered Accountants in the Audit practice area.

This meeting was well received by 80+ participants.

9. AI Co-Pilot and Chatbot for Professional Services Firms held on Tuesday, 10th September, 2024 @ Zoom.

In recent years, Artificial Intelligence (AI) has rapidly advanced, offering sophisticated Language Learning Models (LLMs) accessible to the general public. For Chartered Accountancy Practitioners and Professional Services Firms, leveraging AI tools can significantly enhance efficiency, streamline processes, and improve client service.

The key takeaways of the meeting were that Co-Pilot and Co-Pilot Studio can automate routine tasks, such as data entry, financial analysis, and report generation. AI can help streamline your practice, saving time, and reducing manual effort. It can improve workflow, client interactions, and overall service quality. The speakers also explored how chatbots can transform customer support and internal communication. They conducted a live demonstration of the step-by-step process for building and deploying a chatbot and customising it to address specific business needs.

Speakers:

Mr. Ajitabh Dwivedi and Mr. Nishant Gupta from Microsoft and Mr. Devesh Aggarwal from Compusoft. The session received an overwhelming response from 265+ participants across the country.

II. Other Society initiatives:

1. Letter of understanding (LOU) signed with National Institute of Securities Market (NISM) at NISM, BKC:

NISM is a non-profit organisation established by SEBI and carries out capacity-building activities enhancing quality standards in securities markets. BCAS signed LOU with NISM on 22nd November, 2024 marking a new beginning of this strategic collaboration aimed at fostering financial literacy, strengthening capital markets through research initiatives and deepening the academia — professional interface. The LOU signing was followed by a fireside chat on the topic of ‘Bridging the Trust Deficit in Financial Markets- The Role of Professionals in Strengthening Investor Protection and Market Transparency’ amongst CA Anand Bathiya, President and Shri Sunil Kadam, Registrar of NISM, moderated by CA Deepak Trivedi, Chief General Manager, Partnerships & Marketing Development. The session was organized by Finance, Corporate & Allied Laws Committee of BCAS. The momentous event ended with several thoughtful ideas which shall foster relations between both the organisations for laying a foundation of trust and knowledge sharing.

2. Interactive Discussion with Hon’ble Member (Tax Payer Services & Revenue), CBDT on 18th November, 2024 at Aayakar Bhavan, Mumbai.

BCAS was invited as one of the stakeholders for an interactive session- ‘Tax Focus Forum’ with Hon’ble Member of CBDT, Shri HBS Gill and his officers. The objective of the meeting was to get feedback, understand the pulse of the community and foster a two-way communication on the roles and expectations in a transparent manner and in a trust-building atmosphere. The forum was attended by CA (Adv.) Kinjal Bhuta, Jt. Secretary and CA Jagdish Punjabi, Managing Committee Member. The Society presented the Forum with some pertinent compliance-related issues faced by the taxpayers and professionals currently and received an encouraging response from the Hon’ble Member, CBDT.