Chairman Message

The world and our profession are changing rapidly in

today’s digital age. But critical characteristics such as ethics and

values never change as these are the foundations upon which the

rest of the world is created. These are the guiding lights to

humanity because ethical values function as inner voices

providing the right direction and decisions in life.

“Open your arms to change but don’t let go of your values.” Dalai Lama

Ethics form the foundation upon which our great profession has been built and valued across

the globe. Professionally and personally, ethics can be thought of as a set of principles that help

in differentiating between right and wrong for an individual, a group, or an organization. It is

easy to do right out of fear, but it is better to do right because right is right. One needs to

appreciate that when one has a right to do something, do what is right. Values are like

fingerprints. Nobody has the same but you leave them all over everything you do. Hence,

professional ethics play a crucial role in everyone’s life. It would be difficult for an individual

without personal ethics to follow professional or business ethics; hence, our alma mater has

stressed this aspect from the beginning.

I look forward to our Branch moving ahead with a common goal of believing passionately in

what we do, and never compromising our standards and values. By observing legends like

Mahatma Gandhi and APJ Abdul Kalam we see that great people have great values and ethics

and they work hard to reinforce their values. Let us always remember Mahatma Gandhi’s

words, “Keep your thoughts positive because your thoughts become your words. Keep your

words positive because your words become your behavior. Keep your behavior positive

because your behavior becomes your habits. Keep your habits positive because your habits

become your values. Keep your values positive because your values become your destiny.”

Thanking You,

“Coming together is a beginning; keeping together is

progress; Working together is success”.

The role of Accounting, Auditing and Taxation has

assumed increasing significance in the globalized

economy and has caused new challenges and

opportunities to the Accounting and Auditing

Professionals. It is necessary that the professionals in this field keep pace with the

new challenges and come with common solution.

I am pleased to share that Meeting on “Implication on Real Estate and others

issues due to recent amendments in GST” held in branch. Amongst other

programs, we also organized Campus Placement Program(24.4.2019 & 26.4.19)

for newly qualified chartered accountants.

Lastly, I would like to wish “Happy Studying” to all the students who will be giving

their examination this summer. Remember dear students “ITS AN EXAM, NOT AN

ATTEMPT.”

With best regards

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1. Meeting on "Implication on Real Estate and others issues due to recent amendments in GST" (13.04.2019-2CPE)

Jaipur Branch of CIRC of ICAI organized a SC Meeting on Implication on Real Estate and others

issues due to recent amendments in GST on 13.04.2019 at ICAI Bhawan, Jaipur. Adv. (CA.)

Rahul Lakhwani was the eminent speaker. During the programme CA. Prakash Sharma, CCM,

ICAI, CA. Lokesh Kasat, Chairman, CA. Kuldeep Gupta, Secretary & other Managing Committee

members felicitated CA. Akshay Kabra for being selected in UPSC Civil Services Exam 2018

(Rank-207) in the presence of CA. Shivani Maheshwari, Assistant Director, CGST (Audit)

Commissionerate, Jaipur, Department of Revenue, Govt. of India. CA. Aashish Sachdev was the

convenor of this programme.

2. Visit of Jaipur Branch By CA. Veni Thapar-Independent Director-Bank of India & CA. Satish Sareen, State Convenor BJP Economic Cell (15.04.19)

Jaipur Branch of CIRC of ICAI was visited by CA. Veni Thapar, Independent Director, Bank of

India and CA. Satish Sareen, State Convenor BJP Economic Cell on 15.04.2019. CA. Sachin

Kumar Jain, Regional Council Member, CIRC and CA. Kuldeep Gupta, Secretary, Jaipur Branch

welcomed them with a floral greeting & memento.

3. Discussion on “Graduate Insolvency Programme: Introducing Insolvency to the World of

Education”

Jaipur branch hosted a panel discussion on “Graduate Insolvency Programme: Introducing

Insolvency to the World of Education” on 19.4.2019 at ICAI Bhawan, Jaipur. The programme

was organized under the aegis of Indian Institute of Corporate Affairs. In this discussion CA.

Prakash Sharma, CCM, ICAI, Mr. Dinkar Venkatasubramaniam, Restructuring Partner Ernst &

Young and Dr. Neeti Shikha, Head, Centre for Insolvency and Bankruptcy, Indian Institute of

Corporate Affairs were the eminent speakers.

4. Pre-Campus Talk-(20.4.2019)

Jaipur Branch of CIRC of ICAI organized a Pre-Campus Talk for newly qualified Chartered

Accountants on 20.4.2019 at ICAI Bhawan, Jaipur for batter preparation of 2nd round Campus

Placement in April 2019. CA. Pawan Bhatia & CA. Purva Somani Mittal were the eminent

speakers. Both the speakers gave valuable tips to the participants for getting better placements.

5. Campus Placement Programme (24.4.2019 & 26.4.19)

Jaipur Branch of CIRC of ICAI participated in the second round campus placement programme

for the newly qualified chartered accountants under the aegis of ICAI, New Delhi on 24.4.2019

& 26.4.2019. From Jaipur campus 02 companies participated in this campus placement

programme. The companies which participated in this campus are as follows:-

S.No Company Name

1 Desai Haribhakti & Co.

2 Uma Polymers Ltd.

BRANCH ACTIVITY DURING THE MONTH OF APRIL-2019

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6. Full Day Seminar on Practical Discussion on GST Audit & Annual Return

(27.04.2019 – 6CPE)

Jaipur Branch of CIRC of ICAI organized Full Day Seminar on Practical Discussion on GST Audit

& Annual Return on 27th April, 2019 at ICAI Bhawan, Jaipur under the aegis of Committee for

Capacity Building of Members in Practice (CCBMP).

CA Prakash Sharma, Central Council Member-ICAI, CA. Abhishek Sharma, Treasurer-CIRC, CA.

Sachin Jain Regional Council Member & Member CICASA, CIRC, CA. Lokesh Kasat, Chairman-

Jaipur Branch, CA. Kuldeep Gupta, Secretary of Jaipur Branch & and other Managing Committee

Members of Jaipur Branch inaugurated the programme by lighting the lamp.

First Technical Session In this session CA. Jatin Harjai was the eminent Speaker and he delivered the lecture on

"Approach & Critical Aspects of GST Audit."

Second Technical Session In this session CA. Ashu Dalmia from New Delhi was the eminent speaker and he delivered the lecture on "Annual Return: Clause by Clause Analysis."

Third Technical Session In this session CA. Avinash Poddar from Surat was the eminent speaker. who delivered his lecture on "Audit Return (GSTR 9C)."

Fourth Technical Session In this session a panel discussion was held. CA. Ashu Dalmia, CA. Avinash Poddar, CA. Virendra

Parwal & CA. Mukesh Khandelwal were the panel experts. CA. Akash Bargoti, Managing

Committee Member, Jaipur Branch was the moderator of the session.

Designed & Compiled by : ITT Faculties of Jaipur Branch of ICAI

Sanjay Kishore Karni Singh Rathore

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THE BANNING OF UNREGULATED DEPOSIT

SCHEMES (UDS) ORDINANCE, 2019

CA. Rachit Jain

Before starting it, there are few questions which come to the common mind-

1. What is an Ordinance?

2. Who can issue Ordinance?

3. What is the Validity of Ordinance?

Let’s understand these questions quickly-

An Ordinance is a temporary law. Legally, an ordinance is the equivalent of an Act; but is not passed by

the legislature. When Parliament is not in session, and 'immediate action' is needed, the President can

issue an ordinance. An ordinance is valid till its expiry or till it is repealed or it is approved by the

legislature & if not approved, it expires after 6 weeks once both houses of the Parliament are in

session.

Need for UDS Ordinance: The ordinance has been issued to safeguard the Interests of Depositors.

To curb Ponzi Schemes.

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Ponzi scheme: A Ponzi scheme is a form of fraud that lures investors and

pays profits to earlier investors with funds from more recent investors. The

scheme leads victims to believe that

profits are coming from product sales or other means, and they remain unaware

that other investors are the source of funds.

Recent Scams/Cases:

1. Saradha Chit Fund Scam

2. Rose Valley Chit Fund Scam

3. Freedom 251

4. Social Trading etc.

Step by Step Process:

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Effect of UDS:

Activity Punishment Section 3: Any deposit taker who, directly or indirectly, promote, operate, Issue any advertisement soliciting participation or enrolment in or accept deposits in pursuance of an UDS.

1. Any deposit taker who solicits deposits in contravention of section 3- Imprisonment: [1-5] Years and Fine: [2-10]Lakhs

2. Any deposit taker who accepts

deposits in contravention of section 3- Imprisonment: [2-7] Years and Fine: [3-10]Lakhs

3. Any deposit taker who accepts deposits in contravention of section 3 and fraudulently defaults in repayment of such deposit or rending any specified service- Imprisonment: [3-10] Years and Fine: [5 Lakhs-2 times of amount collected]

Section 4: Any deposit taker, while accepting deposits pursuant to a Regulated Deposit Scheme, commit any fraudulent default in-

1. the repayment or 2. return of deposit on maturity or 3. In rendering any specified service

promised against such deposit.

Imprisonment: up to 7 Years and Fine: [5 Lakhs- 25 Cr or 3 times of

profit, whichever is higher]

Section 5: Any person who knowingly makes any statement, promise or forecast which is false, deceptive or misleading in material facts or deliberately conceal any material facts, to induce another person to invest in, or become a member or participant of any UDS. Note: Any person other than the deposit taker is covered in this section.

Imprisonment: [1-5] Years and Fine: up to Rs. 10 Lakhs

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Currently, 9 regulators oversee and regulate various deposit-taking schemes as explained in Schedule I:

(i) RBI, (vi) National Housing Bank,

(ii) SEBI, (vii) PFRDA,

(iii) MCA, (viii) EPFO,

(iv) State and union territory governments, (ix) IRDA,

(v) Central Registrar, Multi-State Co-operative Societies

Important Points:

1. There is no ban on any amount received in the course of or for the purpose of business. For example-If a Proprietor in business e.g., “A” accepts deposit/unsecured loan from “B”, this ordinance is not applicable.

2. This ordinance is also not applicable in the following cases: a. Capital Contribution by partners. b. The amount received by an individual by way of loan from his relatives, or by any firm by way of

loan from relatives of any of its partners. c. The amount received as a loan from a scheduled bank, co-operative society, NBFC, PFI or any

Indian/ foreign government. d. Amount received as credit by a buyer from a seller on the sale of any property (movable or

immovable). e. The amount received by Asset Reconstruction Co. which is registered with RBI. f. The amount accepted by a Political Party. g. Any periodic payments made by a member of SHGs.

3. There must be a scheme or arrangement (whether oral or written) of accepting deposits. 4. Amount received as Unsecured Loan is not banned as clarified by the Department of Financial

Services on tweeter. 5. It is applicable on Deposit taker and not on depositor. 6. Since the ordinance is passed on 21st Feb 2019; hence deposits accepted on or after 21st Feb 2019

are covered under this.

Disclaimer:-

The views expressed in this article are strictly personal and for general information purpose only. A multitude of factors including changes

and subsequent amendments in law can cause a reason for the change in the information provided in this article. It is suggested to take

specific Professional advice and cross- check before relying on the content & information.

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