Society News for the month of September 2024

Details:

LEARNING EVENTS AT BCAS

1. Suburban Study Circle meeting on the topic of Recent Changes in GST as per 53rd GST Council Meeting & Union Budget 2024. Held on 2nd August, 2024; Venue: Bathiya & Associates LLP, Andheri

The Group Leader, CA Mrinal Mehta, crafted a detailed presentation that addressed the recent changes through which group had insightful discussions. He shared his views on the following:

• Changes in GST Tax Rates
• Clarifications on services
• Waiver of interest and penalty
• Monetary limit for appeals and reduction in pre-deposit amount
• Input Tax Credit – Section 16(4)
• Clarifications on corporate guarantee and
• Other amendments and clarifications

The session saw active engagement from 20 participants.

2. Indirect Tax Laws Study Circle on Interpreting section 16 (4) of CGST Act, 2017. Held on 29th July, 2024; Venue: Zoom Platform

Group leader, CA Saurabh Jain, in consultation with Group Mentor, CA Rishabh Singhvi, prepared case studies covering various contentious issues around section 16 (4) of the CGST Act, 2017 and also dealt with the recent amendments proposed.

The presentation covered the following aspects for detailed discussion:

• Whether section 16 (4) time limit applies to taking of credit in books of accounts or GSTR-3B
• Whether the conditions imposed u/s.16 (4) are a substantial condition or procedural condition?
• Whether the time limit prescribed u/s. 16 (4) applies to claim of ITC of tax paid on import of goods
• Whether the time limit prescribed u/s 16 (4) applies to claim of ITC of tax paid on RCM (registered/unregistered)
• How to interpret section 16 (4) in terms of ISD credits
• Whether section 16 (4) applies in cases where the supplier has filed his GSTR-1 after the time limit prescribed therein

Around 60 participants from all over India benefitted while taking active part in the discussion. Participants appreciated the efforts of group leader& group mentor.

3. Lecture meeting on Direct Tax Law provisions of the Finance (No.2) Bill, 2024. Held on 27th July, 2024 at Yogi Sabagrah, Dadar

The Finance (No. 2) Bill, 2024 introduced various direct tax law provisions, including changes in tax rates, capital gains, buy-back of shares, charitable trusts, withholding requirements for partnerships, etc. While it aims for simplification, concerns arise over potential complications and inequities. Notably, the withdrawal of the Equalization Levy and Angel Tax provisions reflects a shift in tax policy. This public lecture meeting is the most awaited by our members, CA Fraternity, professionals and public at large. CA Pinakin Desai addressed the participants on the important provisions of the Finance (No. 2) Bill, 2024. He rated the budget as a satisfactory and also highlighted few points requiring further attention and simplification.

Some of the prominent takeaways and viewpoints from his lecture were:

• The withdrawal of the Equalization Levy signals a strategic move towards implementing pillars one and two, indicating a shift in approach to international tax challenges.
• Changes in tax rates and increase in standard deductions for salaried employees and a reduction in tax rates for foreign companies and capital gains aim to address equity in taxation.
• Significant changes to capital gains taxation, which can impact both individual and corporate taxpayers. Listed securities of holding is now uniform with other securities and will turn long-term in 12 months. Short-term capital gains tax on listed securities has increased from 15% to 20%. These changes aim to simplify the capital gains tax framework but could lead to complexities and inequities for certain taxpayers.
• The ease of doing business needs to be re-evaluated to ensure fairness for both residents and non-residents. Current provisions may impose undue burdens, particularly on partnership firms and their tax obligations.
• The tax withholding obligations for partnership firms can lead to financial strain, especially when remuneration exceeds deductible amounts. This situation may result in penalties for non-compliance.
• The new buy-back provisions effective from 1st October, 2024, classify buy-back payments as dividend income for shareholders, regardless of the company’s profit status. Shareholders face a challenge as the buy-back income is treated as dividends, with no deductions allowed for the cost of shares. This could lead to capital losses instead.
• Reassessment proceedings for tax can now be conducted within a shorter period of five years, impacting how companies manage their tax strategies. This change emphasises the importance of timely compliance.
• Significant steps are taken for charitable trusts by removing adverse provisions, particularly regarding mergers and exit tax. It alleviates previous concerns and fosters collaboration between trusts.
• A significant change in the Black Money Act mandates that residents disclose foreign assets, with strict penalties for non-compliance, emphasizing the importance of transparency.
• Amendments regarding tax refunds indicate a shift towards stricter compliance and potential delays for taxpayers.

The Lecture meeting was attended by around 350 participants at the venue, and have more than 18,000 viewers on YouTube. It was highly appreciated by the participants.

The readers can view the entire meeting at the following link:

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

4. ITF Study Circle Meeting on “Pillar Two – Basics” Held on 22nd July, 2024; Venue: Zoom Platform

The group leader – K. Prasanna deliberated on the following topics:

• Need of Pillar-2 and its developments in the International arena.
• Conditions relating to the applicability of Pillar-2 – Globe rules.
• Various concepts surrounding the Globe rules such as IIR, UTPR etc. with practical scenarios and case studies.

During the study circle meeting, the participants raised questions about their specific concerns. The session was highly informative and was a good base to start in-depth study and was attended by 55 participants.

5. Webinar on Filing of Income Tax Returns for AY 2024-25 Held on 2nd July, 2024; Venue: Zoom Platform

The Direct Tax Committee of BCAS organised a “Webinar on Filing of Income Tax Returns for AY 2024-25. CA Akshar Panchamia, the first speaker covered ITRs 1, 2, 3 and 4 wherein he explained the applicability of these ITRs to applicable assesses. There were some important amendments in the ITR like choosing the tax regime, mentioning the type of Bank Account, quoting the MSME number etc. which were highlighted. He also demonstrated instances where the details need to be mentioned correctly to avoid any undue disallowances. Schedule FA – Foreign Asset which is mainly applicable for Resident and Ordinarily Resident was explained in detail in his presentation.

CA Ronak Rambhia covered the ITRs 5, 6 and 7 wherein he explained the due dates applicable to each assessee. The pre-requisites while preparing the Tax Returns like the Annual Accounts, Audit Report, Bank details, registration numbers, GST Turnovers, etc. were taken into consideration along with important schedules like Schedule VDA — Virtual Digital Asset, SH-1 — Shareholders details, AL-1 — Asset Liability, etc.

The webinar gave the viewers practical insights about the Income Tax return filings, the latest amendments reflected in the forms and best practices to avoid mismatch in the ITR processing. Webinar was attended by around 280 participants.

YouTube Link: https://www.youtube.com/watch?v=X7qmz3H5HUY

6. 75 Hours Long Duration Study Course on Auditing Standards on the 75th Anniversary of BCAS Held in June from 14th March, 2024 to 14th June, 2024, Venue: Zoom Platform

BCAS has always been pioneer in equipping its members in particular and other stakeholders at large. To Commemorate 75th Year of existence of BCAS and to celebrate its Diamond Jubilee, Accounting & Auditing Committee organised a well-designed 75-hour long duration study course spanning more than 12 weeks. The Course was mainly held on Fridays and Saturdays for 3 hours each day totaling to 75 hours.

The main objective of designing this long duration course was to deep dive into the subjects affecting the audit fraternity and provide platform to the members in Industry and Practice to come together. It was focused on the practical challenges which crops up while implementing the complicated Accounting Standards. The course was segregated into three equal segments.

• AS
• IndAS
• Assurance Standards

The course also included topics on Companies Act provisions, CARO, Schedule II, III, CSR, FRRB / NFRA observations, etc. The segments / modules were designed to give practical case study based insights to the participants on various topics.

The various sessions of the course generated lot of interactions between the participants and the respective faculties. The three month’s duration course was attended by 136 participants and was well received and the overall feedback from the participants was encouraging. The Participants were awarded Certificate of Participation for attending the course.

7. Corporate & Commercial Law Study Circle – Oppression & Mismanagement Held on 30th May, 2024; Venue: Zoom Platform

The Group leader – CS Gaurav Kumar explained the meaning of oppression and mismanagement, difference between oppression and mismanagement, the relevant provisions of the Companies Act 2013. The speaker discussed modes, methods and possible reasons of oppression and mismanagement, and discussed landmark case laws giving understanding of the relevant nitti-gritties.

He also touched upon arbitration as a possible alternative to prolonged and expensive litigation process. He enlightened the participants with the preventive measures to reduce the possibility of oppression and mismanagement. He threw light on the role a CA can play in the matters relating to oppression and mismanagement. Around 60 participants attended the meeting and it was well appreciated.

1. Other Events & News:

BCAS Foundation’s Tree Plantation Drive 2024

On 4th August, 2024, the BCAS Foundation, in partnership with Keshav Srushti, organised the Miyawaki Forest Project 2024 at Ismail Yusuf College, Jogeshwari East. This initiative focused on environmental sustainability through the Miyawaki technique, a method that fosters rapid growth of dense, native forests.

Trustees of BCAS Foundation, spoke about the Foundation’s dedication to social and environmental causes, stressing the significance of projects that yield long-term benefits. The event was graced by CA Rashmin Sanghvi as the Chief Guest. A longstanding advocate for environmental causes within the BCAS Foundation, CA Sanghvi has been instrumental in driving such initiatives.

Neelkantan Aiyyar, Joint Secretary of Keshav Srushti, kicked off the event with an insightful briefing on the Miyawaki technique, emphasising its ecological benefits, such as enhanced carbon absorption and biodiversity support. Following this, Satish Modh, President of Keshav Srushti, highlighted the organisation’s commitment to nature conservation and rural development.

A special session followed, where participants engaged in a Bhu Devs Pooja to honour the Earth, followed by symbolic plantations. Around 100 saplings were planted during this session, with many of the trees planted by children. This act of nurturing young minds alongside young trees was a powerful reminder of the legacy we leave for the future. The event concluded with a sumptuous lunch, the sense of accomplishment and camaraderie was palpable, with participants leaving with a deeper understanding of their role in preserving the environment and a commitment to future initiatives.

Intervention on behalf of BCAS at Ad Hoc Committee Meeting for United Nations Framework Convention:

CA Radhakishan Rawal, core group committee member of International Tax Committee of BCAS, had an opportunity to place his views as a representative of BCAS and participate in the discussions at the Second Session of the Ad Hoc Committee to Draft Terms of Reference (ToR) for United Nations Framework Convention on International Tax Co-operation at a 15 days session held in New York. The ToR was approved by majority (110 in favour, 8 against and 44 abstaining member states). This is treated as a historical development but a small step of a long journey for establishing an inclusive and fair system of international taxation.