10 bcasnewsletterof ways, like accepting deposits, making loans and advances, leasing, hire...

Vice-President’s Communiqué

Harnessing Talent and Providing Quality Service

Vol. 15 n No. 5 n August 2012

n A Monthly Newsletter of the Bombay Chartered Accountants’ Society

For Members only. For Private Circulation only. Price: `10

BCASNewsletterDear Members,

Spare a thought for Sushil Kumar Shinde—on his last day as Power Minister, half the country was in darkness, and on the first day of him becoming Home Minister, there were bomb blasts in Pune. He must be wishing he was made Finance Minister instead. Our economy is already bad enough, it can't get any worse!

But we have an old guard in the Finance Ministry now in the form of Palaniappan Chidambaram, who we hope will spare more than a thought for us. And let’s look at the challenging environment that exists:

• Eurozonestillnotshowinganysignsofrevival• Ordersfromdebt-riddenEuropedriedup• Exportsgonedown5.45%withmanufacturingconsequentlyhit• Importshavefallenby13.46%andnoticeablyimportofplantsand

machinery is weak meaning poor investment climate but levels of gold and oil is static

• TheHSBCPurchasingManager’sIndexfellfrom55.0to52.9• RBI lowered 2012-13 GDP growth projection from 7.3% to 6.5%,

containing inflation is still a priority• Thefiscaldeficitestimatedatover5%• Currency fall, S&P downgrading the sovereign rating, regressive

retrospective amendments, GAAR, handling the mess of theregressive retrospection amendments of his erstwhile predecessor —alladdingtothepooroutlookonFDIinvestments

• Poor monsoons and reduced agricultural output will lead to foodprices going up resulting in further pressure on inflation. DroughtreliefexpenditurewillbringitsowndrainontheGDP

Inactuality,hedoesn’thavetodoanyinnovativethinking.Itwouldbeenough if he carries through the long pending list of reforms and near readyBillsinthepipeline—DTC,GST,LandReforms,FDInormsinkeyindustries.

President: Deepak R. Shah, 98201 48536;[email protected]

Vice-President: Naushad A. Panjwani, 98200 59048; [email protected]

Hon. Jt. Secretaries: Nitin P. Shingala , 98200 57694; [email protected] Raman H. Jokhakar, , 98208 77976; [email protected]

Hon. Treasurer: Chetan M. Shah, 98202 23402, [email protected]

PROGRAMMES AT A GLANCE

Students’ Study Circle ..............................................................07-09-2012 ............................... BCAS Conference Room, 7 Jolly Bhavan No. 2, New Marine Lines, Mumbai ................. 3

Seminar on NBFC Regulations ................................................30-08-2012 ............................... Walchand Hirachand Hall, Indian Merchants’ Chamber, Churchgate, Mumbai ............... 3

Workshop on ‘How to conduct a Tax Audit’ ..............................31-08-2012 ............................... Walchand Hirachand Hall, Indian Merchants’ Chamber, Churchgate, Mumbai ............... 4

Workshop on Alternative Investment Funds

Regulations, 2012 ....................................................................02-11-2012 ............................... Hotel J W Marriot, Juhu, Mumbai .................................................................................. 4

E-Learning Program on XBRL ..................................................ongoing program ....................... online program ............................................................................................................... 6

Lecture Meetings......................................................................22-08-2012, 03-09-2012

.................................................................................................& 03-10-2012 ........................... Walchand Hirachand Hall, Indian Merchants’ Chamber, Churchgate, Mumbai ............... 1

7, Jolly Bhavan No. 2, New Marine Lines, Mumbai - 400020. Tel. Nos. : 61377600; Fax: 61377666 Email : [email protected]; Website : www.bcasonline.org

Lecture MeetingsVenue I Walchand Hirachand Hall, Indian Merchants’ Chamber, Churchgate, Mumbai – 400020Day, Date & Time I Wednesday, 22nd August, 2012, 6.15 p.m.*Speaker I Mr. Vikram Nankani, AdvocateSubject I Service Tax & VAT on Sale of under Construction Flats

*Fellowship over a cup of tea at 5.45 p.m.

Venue I Walchand Hirachand Hall, Indian Merchants’ Chamber, Churchgate, Mumbai – 400020Day, Date & Time I Monday, 3rd September, 2012, 6.15 p.m.*Speaker I CA. Puloma D. Dalal Subject I Negative List based Taxation of Servies - Important Issues


Venue I Walchand Hirachand Hall, Indian Merchants’ Chamber, Churchgate, Mumbai – 400020Day, Date & Time I Wednesday, 3rd October, 2012, 6.15 p.m.*Speaker I CA. Tilokchand P. OstwalSubject I Domestic Transfer Pricing


(Continued on page 2)

1BCAS Newsletter I August 2012

BCAS Newsletter I August 20122

Right to Information ClinicBCAS Foundation operates a Right to Information (RTI) Clinic on a regular basis. RTI Clinic is operated by Mrs. Hema D. Sampat, a research scholar on the subject of RTI, Mr. A. K. Asher, Adv. & RTI activist and CA. Narayan K. Varma, Past President, BCAS.

The Clinic provides help and guidance to BCAS members as also to non-members, i.e., all citizens, for making applications under the RTI Act and also assists in resolving any related difficulties on the subject of RTI.

The RTI Clinic operates on every 2nd, 3rd and 4th Saturday from BCAS office – 11 a.m. to 1 p.m.

The next RTI Clinic days accordingly are 25th August 2012 and 15th, 22nd and 29th September 2012 Please call the Society’s office (Ms. Shernaaz: 61377600) to obtain a prior appointment.

Charitable Trust ClinicThe next Charitable Trust Clinic will be held on 7th September 2012 from 5 p.m. to 7 p.m. in the Library room of BCA Society at New Marine Lines.

Chartered Accountants and Trustees interested in having their queries solved are requested to call the Society’s office (Ms. Khushboo: 61377620) and obtain a prior appointment, latest by noon on the day of the Clinic. Querists are also advised to bring along relevant papers such as trust deeds, audited accounts, etc.

Panel of Advisors:CA. Ratanshaw J. Damanwala CA. Shariq M. ContractorCA. Gautam S. NayakCA. Anil J. Sathe CA. Atul H. Shah

Accounts & Audit ClinicThe next Accounts & Audit Clinic will be held on 8th September 2012 from 10.30 a.m. to 11.30 a.m. in the Library room of BCA Society at New Marine Lines.

Persons interested in having their queries pertaining to accounting and auditing issues solved, are requested to send the queries by e-mail to [email protected] one week in advance and call the Society’s office (Mr. Rajaram: 61377613) to obtain prior appointment, at least a day before the day of the Clinic. Please note that the Panel will not answer any queries pertaining to tax issues.

Panel of Advisors:CA. Sanjeev R. PanditCA. Himanshu V. Kishnadwala CA. Jayesh M. Gandhi

(Continued from page 1)

Apart from his role as FM, he as a senior member of the GOM mustinfluence decisions pertaining to infusion of funds in infrastructure projects.All thistobedonewhenthegeneralelectionsarestaringusin the face.

He is the sameFMwhopresented theDreamBudget in 1997and itwasinhissecondstintbetween2004and2008thattheeconomysawagrowthofcloseto9%.Socanweseeanencore?

Well, here’s wishing him luck, for on his luck depends our fortunes.

Gen.SyedAtaHasnain,ourguestspeakerat theAGM,madeaverypassionate speech. One very interesting point that he made was about howeverysoldierisreadytogiveuphislifeforthenation.Themotivationisnotmoney,fameorrecognitionbutpatriotism.Thereisapatriotinallof us. We just don’t let the patriotic emotion come out too often. Wedon’t use this emotion to motivate us and others. Imagine if this wasthe guiding emotion that motivated all of our actions. What an impact we’dmake.The last timeweshowedthisemotioncollectivelyagreatempireretreatedandIndiawonitsindependence.Todaywecouldbringaboutarevolutionandunseenprogressandprosperity.Ifonlyweroseabove our petty and partisan interests and show patriotism. Patriotism in daily life. Patriotism while paying taxes. Patriotism while advocating tax planning. Patriotism while building roads. Patriotism before spitting on the roads. Patriotism when manufacturing produce. Patriotism while delivering service. Patriotism while receiving service. Patriotism when we run down our own country and condemn it. Patriotism when we choose who runs our country. Patriotism while deciding who represents our country.

Speaking of representing our country, one is reminded of the dismal representation India has in the Olympics 2012. Leads to anotherthought—howisitthatIndiawithapopulationofmorethan1200millionhasmanagedonly6medalswhileanother(readUS)withapopulationofmere300millionhassofarsecuredawhopping104medals! Iamprettysurethereisnodearthoftalentinthecountry.Thenistheproperharnessingofthistalent,thecause?IssportacareerchoiceofanIndianoronlyapart-timehobby?Isexcellencehererewarded?Istherearobustmechanisminplaceforidentifyingthetalentpool?Isthistalentpoolthencoached,guidedandmentored?Somethingtothinkabout,isn’tit?

Many institutions and organisations are formalising the concept of mentorship. What does it entail? Does our CA profession need amentorshipprogramme?Willtrytotouchuponthisinthenextissue.

Here’s wishing everyone happiness and love.

With warm regards,

Yours truly,

CA. Naushad Panjwani

QuoteWe are very good lawyers for our mistakesVery good judge for other’s mistakes

3BCAS Newsletter I August 2012

Bombay Chartered Accountants' Society InfoTech & 4i Committee

&Membership & Public Relations Committee

present

BCAS Web TV

Subscribe Now!!!Subscription Charges: R600 per annum applicable for April 2012 to March 2013. Payment can be made by cheque/DD payable at par in

Mumbai in favour of ‘Bombay Chartered Accountants’ Society’. You can also pay by cash/credit card at the payment counter of BCAS

Office. If you have an Imprest Account, then you can instruct us to adjust the subscription through the Imprest Account.

For further details log on to www.bcasonline.org

Lecture Meeting on Issues in Implementation of Revised Schedule VI by CA. Himanshu V. Kishnadwala held on 8th

August 2012 is available on BCAS Web TV.

The next study circle meeting of the Students’ Study Circle is scheduled as follows:

Day and Date Friday,7thSeptember2012

Time 6.30pmto8.00pm

Venue BombayCharteredAccountants’Society,7,JollyBhavanNo.2,GroundFloor,NewMarineLines,Mumbai400020.

Subject DoubleTaxAvoidanceAgreement

Speaker Mr.DhruvRawani

EnrolmentfeefortheStudyCircleisR200+12.36%ServiceTaxcoveringtheperiodtill31stMarch2013.Sopleaseenrollattheearliest.

Lookingforwardtoseeingyouinlargenumbers.

Students’ Study Circle

Human Resources CommitteeChairman : CA. Mayur B. Nayak Convenors : CA. Bharatkumar K. Oza CA. Hemant P. Gandhi CA. Mihir C. Sheth

Accounting & Auditing CommitteeChairman : CA. Himanshu V. KishnadwalaConvenors : CA. Mukesh G. Trivedi CA. Abhay R. Mehta CA. Suril V. Shah

Day & Date : Thursday,30thAugust,2012Time : 9.30a.m.to4.30p.m.Venue : WalchandHirachandHall,4thFloor,IMC, Churchgate,Mumbai400020

Particulars Fees

Members R2,500

Non-Members R3,000(TheabovefeesincludesServiceTaxof12.36%,contributionof R50toBCASFoundation,seminarmaterialandlunch)

Banking is the lifeline of any economy. There is a significant emphasison inclusive growth towards which banking sector plays a very vital role. Towardsachievingtheinclusionofallthestakeholdersintheprogressofthenation,theReserveBankofIndiahasalsoemphasisedonthesystematicgrowth of NBFCs. For achieving structured growth and meeting the objectivessetbyReserveBankofIndia,NBFCsarealsohighlyregulatedentities and there are many statutory/reporting compliances to be adhered to,especiallyiftheyareacceptingdepositsfromthepublic.Non-bankingfinancialcompanies(NBFCs)performfinancialintermediationinavarietyof ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc.

Itisaspecialisedareaofoperationsandkeepingoneselfabreastwiththedomain knowledge of the functions, operations, regulations and statutory compliances of NBFCs is necessary for handling matters relating to NBFCs. BCAS with its vision of being facilitator in imparting knowledge in specialised areas to its members and public at large, has been organising seminar on NBFCs since last three years, with a view to honing the skills of the participants in the specialised area of NBFCs. The responseto the seminar over last three years demonstrates inherent interest in professionals to keep abreast with the changes in this specialised field of finance. With a view to further enhance the knowledge and spread it to wider professional circle, this year also BCAS has organised a seminar on NBFCRegulations(IncludingAuditandTaxAspects).

Theseminarwillbeaddressedbyexpertsdealingwiththesubjectmatterregularly and having in depth knowledge to share. The details of theseminar is as follows:

Session1 RecentdevelopmentsinNBFCregulations/inspection perspective

Senior official from RBI

Session2 Publicdeposits,RBIregulationsforNBFCs&CIC(ReserveBank)Directions,2011

CA. Anup P. Shah

Session3 Audit procedures and reporting in NBFCs

CA. Viren Mehta

Session4 TypicaltaxissuesinNBFCs CA. Yogesh A. Thar

Enrolmentformisprintedonpageno12.

Seminar on NBFC Regulations (Including Audit and Tax Aspects)


Taxation CommitteeChairman : CA. Gautam S. NayakConvenors : CA. Saurabh P. Shah CA. Anil D. Doshi CA. Rajeev N. Shah

Workshop Co-ordinators : CA. Pinky Shah and CA. Bhadresh Doshi

Theauditseasonisjustroundthecornerandallourofficesaregearingupforthesame.TaxAuditbeinganimportantcomplianceformostofour clients, and with many new debates cropping up in taxation, we at BCAShaveorganizedaveryinterestingworkshopforarticledstudents,audit staff and fresh chartered accountants. The eminent faculty will discuss all clauses of Form 3CD, clause byclause, besides giving an overall perspective of the approach to such taxaudit.Thiswillhelptheparticipantstounderstandeachclauseandcull out relevant details from the audited accounts.

The unique feature of this popular workshop is an additional BrainsTrustSession,wherein theparticipantscansend theirqueriesbeforethe workshop and a panel of experts would reply to them during the workshop. All the participants would immensely benefit from the expert knowledge of speakers and members should encourage their staff to enroll for this workshop.

Day & Date : Friday31stAugust,2012Time : 9.30a.m.to4.00p.m.Venue : WalchandHirachandHall,4thFloor,IMC, Churchgate,Mumbai400020.Fees : R900+R111(ServiceTax)=R1011perparticipant (ContributionofR30toBCASfoundation,costof studymaterial,ifany,tea,snacksandlunch)Faculty : CA. Himanshu V. Kishnadwala CA. Anil J. Sathe CA.SonaleeA.Godbole CA.RamanH.Jokhakar

Participantsneedtosendtheirquerieslatestby21stAugust2012fortheBrainsTrustSessioneitherontheemailidkm@basonline.org, or a hard copy to the BCAS office before this date.

Enrolmentformisprintedonpageno12.

Interactive Training Workshop on‘How to conduct a Tax Audit’

Taxation CommitteeChairman : CA. Gautam S. NayakConvenors : CA. Saurabh P. Shah CA. Anil D. Doshi CA. Rajeev N. ShahWorkshop coordinators: Nitin P. Shingala and Anil D. Doshi

SEBIhason21stMay,2012notified theSEBI (Alternative InvestmentFunds)Regulations,2012[AIFRegulations].AIFRegulationsendeavourto extend the perimeter of regulation to unregulated funds with a view to systemic stability, increasing market efficiency, encouraging formation of new capital and consumer protection, and would apply to not only venturecapital fundsbutalsoprivateequity funds, realestate funds,etc.ThepurposeoftheworkshopistounderstandvariousaspectsrelatingtoAIFRegulationssuchaslegalandstructuringaspects,itsdocumentation,efficientplanning,directtaxaspects(domesticandinternational),etc.Therecentlegislativechanges,includingamendmentsbytheFinanceAct,2012,whichhaveabearingonsuchfundswillalsobediscussed.Itwould be our endeavour to allow some interaction at the Workshop.

Day & Date : Friday,2ndNovember2012Time : 9.00a.m.to2.00p.m.Venue : Hotel J W Marriot, Juhu, Mumbai Fees (each) for members : R2,000+R 247(ServiceTax)=R 2247fornon-members :R2,500+R 309(ServiceTax)=R 2809 limitedseats (inclusiveofcoursematerial,morningbreakfast, tea,coffee&lunchandR50towards contributiontoBCASFoundation)

Topics Faculty

IntroductionandLegalAspects EminentFaculty

DirectTaxAspects(DomesticandInternational)

CA. Nitin Karve

Enrolmentrestrictedto125participantsonfirst-come-first-servedbasis.Please enrol early to avoid last minute disappointment.Enrolmentfeesarenon-refundable.

Enrolmentformisprintedonpage12.

Half Day Workshop on Alternative Investment Funds

Regulations, 2012

QuoteNever hold your head high with pride or ego.Even the winner of a gold medal gets his medal only when he bows his head down

QuoteNegative thinkers focus on problemsPositive thinkers focus on solutions

BCAS Newsletter I August 2012 5BCASNewsletter I August 2012 5

BCAS Publications for Sale

Sr. No. Name of Publication - Books / CDs / Papers Price R Postage R

1 Custom Baggage Rules 50 25

2 Fundamental Rights and Duties of Indian Citizens (At a Glance) 50 25

3 CD on Seminar on NBFCs (including audit aspects) 350 50

4 Namaskar ki Bhet 100 50

5 Hedging made simple Members

Non-Members225250

5050

6 BCA Journal CD – April 2000 to March 2011 Member & Journal subscriber

Non-Members500600

5050

7 CD on Two-Day Comprehensive Workshop on Valuation (Study Material)Members

Non-Members500600

5050

8 CD on 1st Residential Study Course on IFRS (Study Material) 750 50

9 CD on 2nd Residential Study Course on IFRS (Study Material) 750 50

10 CD on 3rd Residential Study Course on IFRS / Ind AS (Study Material) 2250 50

11 Video Recording & Study Material of the Seminar on Cenvat Credit and Refunds of Service Tax Members

Non-Members500600

5050

12 Mandatory Accounting Standards (Extracts from Published Accounts) Members

Non-Members425595

150150

13 Format of Financial Statements under Schedule VI Members

Non-Members250345

100100

14 Study Material DVD on Two-day Workshop on Recent Developments in Accounting & Auditing Standards and Reporting Requirements held on 13th & 14th April 2012

MembersNon-Members

13501650

5050

Recent Publications15 Digest of Full Bench Decisions of Central Information Commission

MembersNon-Members

120150

5050

16 Gita for Professionals 75 50

17 Advance Rulings Law and Procedures - A Compilation 125 50

18 Exploring FEMA 225 75


XBRLstandsforeXtensibleBusinessReportingLanguage.Itisoneofthefamiliesof"XML"languageswhichisbecomingastandardmeans of communicating information between businesses and on theInternet.ImplementationsofXBRLaregrowingrapidlyaroundthe world.

In order to foster the understanding of XBRL, the Infotech & 4iCommitteeofBCAS,XBRLPlanet (ownedbyMr.ConorO’Kelly,Vice-Chairman, XBRL International) & NextGen KnowledgeSolutions Private Ltd. have teamed up to provide online XBRLtraining. Our main goal is to transfer knowledge and uniqueexperienceofFinancialReportingthroughXBRL.

Firstofitskinde-LearningprogramonXBRLOver 9 hours of online training including Q&A session on XBRLCourse Module :

Course objectives :• TohelptraineesunderstandthemeaningandnatureofXBRL

andthetechnicaltermscommonlyassociatedwithXBRL.• TohelptraineesunderstandthebasicsofXBRLTaxonomies.• TohelptraineesunderstandhowtouseXBRLTools.• To help trainees understand how to create instance

documents.

Pre-requisites :• Familiaritywithaccountingsysteminstallationandreportwriting

recommended• Participants in this e-Learning Module need not have prior

experienceofXBRL.

Fees :• Thetotalinvestmenttobemadebyyouforthisuniqueonline

training course shall be R11,236 (inclusive of service tax of12.36%)

e-Learning Materials & Certification : • Theparticipantswillhaveaccesstothetrainingsessionsfor30

daysduringwhich,theywillgetunlimitedaccess.TheywillalsogetaccesstospecialliveQ&Asessions.

• Attheendofthetraining,acertificateofparticipationwouldbeissued to the participants who go through the entire module.

XBRL Course Module ContentModule — I

Overview of XBRL

• MeaningofXBRL• KeyconceptsofXBRL• Components of Business

ReportingSupplyChain• TechnicalTermsassociatedwith

XBRL

• AdvantageofuseofXBRL• KeydriversofXBRL• XBRLadoptionaroundthe

world• XBRL&IFRSs• ApplicationsofXBRL

Module — IITaxonomy & Instance documents

• MeaningofXBRLTaxonomy• XBRLTaxonomyArchitecture• Linkbases,Tuples,Dimensions,Hypercubes,Axis,Members,etc.• XBRLTaxonomyExtension• XBRLInstanceDocument• InstanceDocumentBuildingBlocks(facts,contexts,units&

footnotes)• BestPractices

Module – IIIIndian GAAP Taxonomy & Business Rules

• OverviewofIndianGAAPTaxonomy

• AnalysisofIndianGAAPTaxonomy

• BusinessRules• AnalysisofBusinessRule

XBRL Implementation Approaches & Indian Regulatory Requirements

• XBRLImplementationApproaches

• IndianRegulatoryRequirements

Module — IVXBRL Tool

• DefiningUnit,Context,Currency,Decimal

• DetailedTagging• BlockTagging

XBRL Report Creation

• StepsinvolvedinXBRLReportCreation

• EditingXBRLInstances

• ValidatingXBRLReportatMCAValidationTool

• ViewingXBRLReport

Module — VXBRL Report Creation

• TaggingofFinancialStatementsViz:BalanceSheet,P&LAccount, Cash Flow Statement &Schedules

• TaggingofNotestoAccounts,Auditor'sReport,Director'sReport

Module — VIXBRL Assurance

• GlobalTrends• CurrentApproachestoXBRL

Assurance• XBRLAssuranceFramework

• IndianRegulatoryRequirements

• AssuranceonXBRLInstanceDocumentsforMCAfilings

E-Learning Modules on XBRL

Infotech & 4i CommitteeChairman : CA. Ameet N. Patel Convenors : CA. Nandita P. Parekh CA. Kinjal N. Shah CA. Pinky H. Shah

E-Learning program on XBRL

BCAS Newsletter I August 2012 7

BCAS Study CirCleS for 2012-13BCASannouncesannual formationofStudyCircles for the year2012-13. TheBCASstudycirclesarewell known for the veryhighqualityofdeliberationsthattakeplaceinthepresenceofandundertheguidanceofseniorsandalsoforthemeticulousplanningandorganisational capabilities of their convenors. Your active participation in BCAS Study Circles provides you with following benefits and add substantial value to your capabilities and personality:

• tremendousopportunitiesforenhancingandsharingknowledge• honingyoursoftskills• keepingintouchwithcontemporarydevelopmentsinlawandinpractice• fellowshipamongstyourprofessionalcolleagues• catalystforyouractiveinvolvementinvariousotheractivitiesofBCAS.

Youareinvitedtopartakeinthefeastofknowledgeintheyearaheadandjointhestudycircle(s)ofyourchoiceandparticipateinthemeetings regularly to derive maximum benefit. For further information/queriesabout thestudycircles,please feel free [email protected]. Annual fee details are providedbelow.ThefeesareinclusiveofRs.30ascontributiontoBCASFoundation. Kindly note:

(a) Generally,allstudycirclemeetingsareheldattheconferenceroomsintheBCASoffice.Inexceptionalcases,weholdthemeetingsatothervenues.TheSuburbanStudyCircleswillbeconductedatDirectiInternetSolutionsPvt.Ltd.,Direct–I-Plex,OldNagardasRoad,Opp.WilsonPens,NearAndheriEastSubway,Andheri(East),Mumbai–400069.

(b) AnymemberoftheBCASiswelcometojoinvariousstudycircles.Thereisnorestrictiononthenumberofcirclesthatyoucanjoin.

(c) Itwouldbeourendeavourtoholdatleast6meetingsperstudycircleintheyear.However,thiswouldbesubjecttotheavailabilityof group leaders and chairmen and your active participation;

(d) Thetermofeachstudycircleisfrom1-4-2012to31-3-2013.……………………………………………………………………………………………………………………………………………………………

Enrolment FormPleaseselectthestudycirclethatyouwouldliketojoinfromthelistgivenbelowandsendinyourchequetouswiththeenrolmentform:

Study Circle No. Subject Fee R Tick your choice here

I DirectTaxLaws 449*

II IndirectTaxLaws 449*

III CompanyLaw,Auditing&Accounting 449*

IV FEMA 449*

V InformationTechnology 449*

VI HumanResourceDevelopment 449*

VII ITF 1,123*

VIII BCAS Suburban Study Circle 674*

XI InternationalEconomics 1,123*

X Students Study Circle 224*

*InclusiveofServiceTaxof12.36%effective1stJuly2012

BCAS Membership No.: ………………………………………Name: …………………………………………………………………………………………………………………………………....................……Address: ……………………………………………………………………………………………………………………………....………………….………………………………………………………………………………………………………………………………………………...……………Tel(O):……………………..…………………Tel(R):…………………..………………………Fax:………...........………………………………Mobile:…………………...…………………………E-mail:……………………………………………………………………………………………Cash/Draft/ChequeNo.:…………………………..drawnon…………………………………………………………………………………...bank,Dated……….....……………….foranamountofR...….................................................………………………………………..is enclosed.

Signature Date:…………………………

8 BCAS Newsletter I August 2012BCAS Newsletter I July 20128

CUT HERE CUT HERE CUT HERECUT HERE

ENROLMENT FORMName :...................................................................................................................................................................................................Registration Number : ..........................................................................................................................................................................

Course in which admission is desired : I.P.C.C ( ) FINAL ( ) (Please tick appropriately)

Residential Address : .........................................................................................................................................................................

...................................................................................................... Tel. No. (M) : ........................... E-mail : ....................................

Details of Articleship : Date of Joining ................................... Estimated date of Completion ................................................Name of the Principal : .....................................................................................................................................................................Name and address of Firm where articleship is being done : ........................................................................................................ ...........................................................................................................Tel. No. (O) : ............................ Fax No. (O) ..........................Cash/Draft/Cheque No. ........................................................................................................ drawn on ......................................Bank,dated ......................................................... for an amount of Rs.1686/- is enclosed.

Date : ............................................... Signature................................................................

Notes :

1. Please send the above form along with cash/cheque/draft drawn in favour of ‘‘BOMBAY CHARTERED ACCOUNTANTS’ SOCIETY’’, .

2. We propose to have multifarious activities like Elocution Competition, Public Speaking, Self Development Education Courses, Orientation Courses, etc. for interested Students.

Bombay Chartered Accountants’ Society 7, Jolly Bhavan No. 2, New Marine Lines, Mumbai-400 020.

Phone 61377600 / Fax : 61377666 E-mail : [email protected] Web : www.bcasonline.orgHuman Resources Committee

Chairman : CA. Mayur B. Nayak Convenors : CA. Bharatkumar Oza, CA. Hemant Gandhi, CA. Mihir Sheth"We had joined the Revision Course, which has proved very much helpful to us. We cleared both groups in First Attempt "

Miss Janhavi Thatte & Miss Komal Jain

I.P.C.C. & FINAL C.A. STUDENTS’ EDUCATION CRASH COURSES (Jointly with Western India Regional Council of The Institute of Chartered Accountants of India )

For November 2012 & May 2013 Examinations 1. Courses for :

C.A. I.P.C.C. C.A. Final

— Auditing & Assurance — Advanced Management Accountancy — Information Technology & Strategic Management — Information Systems Control and Audit — Direct Taxes — Indirect Taxes

2. Course Co-ordinators : CA. Chandrakant Ruparelia, CA. Neel Majithia 3. Fees : Rs. 1686/- (including Service Tax 12.36% effective from 1st July 2012) per student for I.P.C.C

4. Timings & Venue : 6.15 p.m. to 8.30 p.m.Churchgate.

5. Duration : From July 25 to September 30, 2012. 6. Enrolment from : May 7, 2012 7. Faculty :

Phone 61377600 and 61377613 respectivelyBOMBAY CHARTERED ACCOUNTANTS’ SOCIETY.


In the current environment where plastic money rules and where physical give and take of money is slowly getting obsolete, have you

Wondered why you need to send cash/cheque to the BCAS every time there is a new publication brought out by the Society?

Ever missed out on a publication because you were out of town and the publication went out of stock by the time you resumed office?

Lost out on the early-bird discount that the BCAS allows on its most valued publication — the Referencer, simply because you forgot to book it in advance?

Hoped and hoped that you would get the snapshots of the Finance Bill proposals on your desk within a couple of days after the Budget Publication of the Society is released?

Well, we have good news for you — all these issues will be resolved. . . .if you opt for Imprest System.

All members, journal subscribers and students can take advantage of Imprest scheme. We have kept this scheme open for non members also. The modalities of the scheme are as under:

`2,500 to be kept with us as Imprest cash in your account till you desire. There is no validity period for the same. (In case of non-member, `250 extra to be paid for account handling charges.)

The base level would be `500, which needs to be replenished again to `2,500 by the person opting for the scheme.

Any publication, conference papers or CDs costing `500 or less than `500 would be sent to you by default as soon as they are published. This would also include one set of English edition of the Budget Publication (a set of 5 books).

Imprest System for Publications

For outstation members, the requisite amount of postage would also be adjusted from the said Imprest account.

For subscribers to the scheme in Mumbai, we need to be intimated in advance about the mode of delivery of the said publication. It can be sent either by courier (whereby the courier charges would also be adjusted from the imprest account) or it could be collected by your representative from the BCAS office. In case you opt for the latter option, then the delivery of the publication must be effected within 15 days of the receipt of the mail notifying the release of the publication, failing which, we would courier the publication to you, and debit the charges to your account.

For premium publications like BCAS Referencer, Calendars and other topic specific publications, we would send an email to all the subscribers and would send these publications only on receipt of intimation from the subscriber. An email needs to be sent to [email protected] specifying the relevant details, such as quantity and the type of publication, etc. (e.g., in the case of the Referencer — whether Premium, Refill or Super Saver)

An intimation showing the account balance would also be sent to the subscriber every time along with the publication.

For exit options, if a subscriber intends to exit within six months of joining the scheme, then an exit load of `100 would be deducted and the balance would be returned to him/her. In other cases, the entire balance would be returned without any exit load, upon receipt of the exit intimation.

So, what are you waiting for? Pick up your cheque books, sign a cheque for `2,500 and send it to us at the BCAS office and relax . . . .

Please visit BCAS Website www.bcasonline.org for Imprest System form.

Quote

Success is the ability to go from failure to failure without losing our enthusiasm.

— Sir Winston Churchill

Quote

Time is not measured by the passing of years but by what one does, what one feels, and what one achieves.

— Jawaharlal Nehru


TheReserveBankofIndiahasissuedthefollowing11circulars

A. P. (DIR Series) Circular No. 3 dated July 11, 2012Risk Management and Inter Bank Dealings

Presently, residents are permitted, subject to certain terms andconditions, to rebook their cancelled forward contracts, entered into to hedge their capital account transactions, by switching banks provided the tenor of the cancelled contract exceeded one year.

Thiscircularpermitsrolloverofforwardcontractsenteredintobyresidentstoalltypesofhedgetransactionsbyswitchingbanks,subjecttocertainterms and conditions, on the maturity date of the said contract.

A. P. (DIR Series) Circular No. 4 dated July 12, 2012Non Resident Deposits- Comprehensive Single Return

Presently,banksarerequiredtosubmitdataonNon-ResidentDepositstotheDirector,RBI,DepartmentofStatisticsandInformationManagement(DSIM), Central Office, Balance of Payments Statistics Division,C-9/8,Bandra-KurlaComplex,Bandra(East),Mumbai–400051throughemailand follow it up by sending a hard copy.

Thiscircularprovidesthatallbanks,otherthanCo-operativeBanksandRegionalRuralBanks,shouldnowonwardssendthedatatotheDSIMonlybyemail.However,Co-operativeBanksandRegionalRuralBanksmustcontinuetosubmitboththesoftandhardcopiestotheRegionalOfficesoftheForeignExchangeDepartmentofRBI.

A. P. (DIR Series) Circular No. 5 dated July 12, 2012Foreign Exchange Management Act, 1999 –Submission of Revised A-2 Form

RBIhasrevisedthepurposecodesforsubmittingR-ReturnsbyBanks.As a consequence of this revision, purpose codes in Form A-2 havealso been revised. Annexed to this circular is the revised list of purpose codesalongwithFormA-2.

A. P. (DIR Series) Circular No. 6 dated July 13, 2012Deferred Payment Protocols dated April 30, 1981 and December 23, 1985between Government of India and erstwhile USSR

WitheffectfromJuly6,2012theRupeevalueoftheSpecialCurrencyBasket has been fixed at R75.816175 as against the earlier value of R78.193501.

A. P. (DIR Series) Circular No. 7 dated July 16, 2012Scheme for Investment by Qualified Foreign Investors (QFIs) in Indian corporate debt securities

Presently,QFIarepermittedtoinvestonlyinrupeedenominatedunitsofdomesticMutualFundsandlistedequityshares.

ThiscircularhasrevisedthedefinitionofQFIandpermittedthemtoalsoinvestonrepatriationbasisdebtsecuritiessubjecttothecertaintermsandconditions.QFIcannowinvestuptoUS$1billionincorporatedebtsecurities (withoutany lock-inor residualmaturityclause)andMutualFunddebtschemes.ThislimitshallbeoverandaboveUS$20billion

From RBIContributed by : CA. Gaurang V. Gandhi

for FII investment incorporatedebt. For thispurposeQFImust opena single non-interest bearing Rupee Account with a bank in Indiaforinvestmentinall‘eligiblesecuritiesforQFI’.

Asper thereviseddefinition,QFIshallmeanapersonwho fulfills thefollowing criteria:

(a)ResidentinacountrythatisamemberofFinancialActiontask Force(FATF)oramemberofagroupwhichisamemberofFATF;

and(b) Resident in a country that is a signatory to IOSCO’s MMoU

(AppendixASignatories)orasignatoryofabilateralMoUwithSEBI

PROVIDEDthatthepersonisnotresidentinacountrylistedinthepublicstatements issuedbyFATFfromtimeto timeon jurisdictionshavingastrategic AML/CFT deficiencies to which counter measures apply orthat have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF toaddress the deficiencies;

PROVIDEDthatsuchpersonisnotresidentinIndia;

PROVIDEDFURTHERthatsuchperson isnot registeredwithSEBIasaForeignInstitutionalInvestor(FII)orSub-AccountofanFIIorForeignVentureCapitalInvestor(FVCI).

Explanation–Forthepurposesofthisclause:

(1)“BilateralMoUwithSEBI”shallmeanabilateralMoUbetweenSEBIand the overseas regulator that, inter alia, provides for information sharing arrangements.

(2)MemberofFATFshallnotmeananassociatememberofFATF.

A. P. (DIR Series) Circular No. 8 dated July 18, 2012Exchange Earner's Foreign Currency (EEFC) Account

ThiscircularstatesthattheprovisionsofA.P.(DIRSeries)CircularNo.124datedMay10,2012willnotapplytotheResidentForeignCurrency(RFC)Accounts.Asa result, theRFCaccount holder cannow retain100%ofhis/herforeignexchangeearningsinthesaidaccount.

A. P. (DIR Series) Circular No. 9 dated July 24, 2012Exim Bank's Line of Credit of USD 250 millionto the Government of Nepal

EximBankhasmadeavailable,subjecttocertaintermsandconditions,to the Government of Nepal a Line of Credit of US $250 million forfinancing purchase of eligible goods and services including consultancy servicesfromIndiaforinfrastructureprojectssuchashighways,airports,bridges, irrigation, roads, railwaysandhydropowerprojects inNepal.Eligiblegoodsandservicesincludingconsultancyservicesofthevalueofat least75%of thecontractpricemustbesuppliedby thesellersfrom India, while the remaining 25%of the goods and services (otherthanconsultancyservices)maybeprocuredbythesellersfromoutsideIndia.

The last date for opening of Letters of Credit and Disbursement forprojectexportswillbe48monthsfromthescheduledcompletiondateofthecontractandOctober20,2017incaseofsupplycontracts.

A. P. (DIR Series) Circular No. 10 dated July 24, 2012Exim Bank's Line of Credit of USD 47 million to the Government of the Federal Democratic Republic of Ethiopia


EximBankhasmadeavailable,subjecttocertaintermsandconditions,to the Government of the Federal Democratic Republic of Ethiopia aLineofCreditofUS$47millionforfinancingpurchaseofeligiblegoodsandservicesincludingconsultancyservicesfromIndiafordevelopmentof sugar industry in Ethiopia. Eligible goods and services includingconsultancyservicesofthevalueofatleast75%ofthecontractpricemustbesuppliedbythesellersfromIndia,whiletheremaining25%ofthegoodsandservices(otherthanconsultancyservices)maybeprocuredbythesellersfromoutsideIndia.

The last date for opening of Letters of Credit and Disbursement forprojectexportswillbe48monthsfromthescheduledcompletiondateofthecontractandApril11,2018incaseofsupplycontracts.

A. P. (DIR Series) Circular No. 11 dated July 31, 2012Foreign Exchange Management Act, 1999 (FEMA)- Compounding of Contraventions under FEMA, 1999

This circular clarifies that whenever a contravention is identified byRBIorbroughttoitsnoticetheentityconcernedbywayofareferenceotherthanthroughtheprescribedapplicationforcompounding,RBIwillcontinuetodecide:-

(i) Whetheracontraventionistechnicaland/orminorinnatureand,as such, can be dealt with by way of an administrative / cautionary advice;

(ii)Whetheritismaterialand,hence,isrequiredtobecompoundedfor which the necessary compounding procedure has to be followed or

(iii)Whethertheissuesinvolvedaresensitive/seriousinnatureand,therefore,needtobereferredto theDirectorateofEnforcement(DOE).

However, once a suomoto compounding application is filed,by the entity concerned, admitting the contravention, the same will not be considered as ‘technical’ or ‘minor’ in nature and the compounding process will be initiated.

A. P. (DIR Series) Circular No. 12 dated July 31, 2012Exchange Earner's Foreign Currency (EEFC) Account, Diamond Dollar Account (DDA)& Resident Foreign Currency (RFC) Account - Review of Guidelines

ThiscircularpermitsEEFC/DDA/RFCaccountholderstocredit100%of their foreign exchange earnings to the respective accounts. However, the sum total of the accruals in the account during a calendar month willhavetobeconvertedintoRupeesonorbeforethelastdayofthesucceedingcalendarmonthafteradjustingforutilizationofthebalancesfor approved purposes or forward commitments.

Asaresult,balancesoutstanding in thesaidaccountsasonJuly31,2012 together with balances accruingon and from August 1, 2012 toAugust31,2012willhavetobeconvertedintoRupeebalancesonorbefore close of business on September 30, 2012. Similar procedurewill have to be followed for accruals to the respective accounts in subsequentmonths.

A. P. (DIR Series) Circular No. 13 dated July 31, 2012Risk Management and Inter Bank Dealings

Presently:-1. Residents are not permitted to cancel and rebook forward

contracts,involvingRupeeasoneofthecurrencies,enteredintoby them to hedge current and capital account transactions.

2. Banks in India have to take into account the open positions ofthe overseas branches as well as delta of the Option Positions forarrivingat theirNetOvernightOpenPositionLimit (NOOPL)involvingRupeeasoneofthecurrencies.

Thiscircularpermits:-1. Exporters to cancel and rebook forward contracts up to 25%

of their contracts booked in a financial year for hedging their contracted export exposures.

2. Banks in India to exclude their Net Options Position and thepositions taken by the overseas branches for arriving at their NOOPLinvolvingRupeeasoneofthecurrencies.

The 46th RRC is scheduled from 10th January 2013 to 13th January 2013 at Golden Palms Hotel and Spa, Bangalore.

Detailed announcement will follow soon.

Seminar Committee Chairman : CA. Rajesh S. Shah Convenors : CA. Toral N. Mehta CA. Salil B. Lodha

Poem

The time that my journey takes is long and the way of it long.I came out on the chariot of the first gleam of light, and pursued my voyage through the wilderness of worlds leaving my track on many a star and planet.It is the most distant course that comes nearest to thyself, and that training is the most intricate which leads to the utter simplicity of a tune.The traveller has to knock at every alien door to come to his own, and one has to wander through all the outer worlds to reach the innermost shrine at the end.My eyes strayed far and wide before I shut them and said ‘Here art thou!’The question and the cry ‘Oh, where?’ melt into tears of a thousand streams and deluge the world with the flood of the assurance ‘I am !’

— Song XII, Gitanjali, 1913.Rabindranath Tagore


CUT HERE CUT HERE CUT HERE

Edited, printed & published by Narayan Varma on behalf of Bombay Chartered Accountants’ Society, Mumbai-400020. Printed at Spenta Multimedia, Mumbai-400013.

Registered with the Registrar of Newspapers for India under R.N. 68365/98Regd. No. MH/MR/South-88/2012-14Posted at Mumbai Patrika Channel Sorting Office, Mumbai-1Published on 8th of every month • Posted on 15th & 16th of every month

Please fill in the above form and send the same to the Society’s office along with requisite payment.Please mention your name and membership number on the reverse side of the local cheque/at par cheque/Demand Draft.Kindly note that the cash counter timings are from 10.30 a.m. to 5.30 p.m. on Monday to Friday and 10.30 a.m. to 1 p.m. on Saturday. The lunch time is 1.30 p.m. to 2 p.m. Members are requested to co-operate in this regard. Cancellation policy: Kindly note that no refund will be given in case of cancellation for any reason and no substitute will be allowed.

Combined Enrolment Form

Name : ..................................................................................................................................................................................................................Address : ..............................................................................................................................................................................................................E-mail :..................................................... Mobile : .................................................... Tel. : ..................................... Fax : ..................................BCAS Memb. No. : .................................. Tel. (O) : ................................................... Tel. (R) : ............................... Fax : ...................................Choice of food (wherever applicable) .......... Jain Non-Jain Cash/Draft/ Cheque no. .................. Drawn on ............................................................................................. Bank,Dated ......................... for an amount of r........................................................ is enclosed.

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WORK SHOP : Interactive Training Workshop on‘How to conduct a Tax Audit’ ..........................31-08-2012............. .r1,011 per participant ............. E-Learning program on XBRL .....................Ongoing program ..........r11,236..................................

BCASReferencer2012-13:• 50thConsecutiveYearofPublication• Themostacclaimedpublicationofitskind• Jointheevergrowingbandoffollowers• Untanglethecomplexitiesofthelegalworld• Alltheinformationyouneedattheclickofthemouse

Order Form:

BCAS Referencer 2012 – 13

Name: Mr./Mrs./Ms :...................................................................................................................................................................................BCAS Membership No.: ..…………..……………....................................Firm’s Name :..............................................................................Office Address :........................................................................................................................................................................................Tel.Nos:...........................................Office:.....................................................Mobile:……………………………........................................E-mail : …………………………………….................................................................................................................................................Cash/Draft/ChequeNo:…………..…...Drawnon:……………………BankDated:................................................................................Amount (R) :..........................................................................................................……………………………...............................

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Referencer Premium Set (in exclusive folder) with CD, Table diary and Pocket diary 950 200

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………....................

Golden Jubilee collector's

edition

SEMINAR :

Seminar on NBFC Regulations (Including Audit and Tax Aspects) .............30-08-2012 .................r2,500 for members .............. r3,000 for non-members.... ....Half Day Workshop on Alternative Investment FundsRegulations, 2012 ...........................02-11-2012 .................r2,247 for members ...............

................................................................r2,809 for non-members ........