newsletter- may 2018 - baroda-icai.org · cpe cpe 2 2 congratulations ca. abhishek nagori...

Volume - IV | May 2018

Baroda Branch of Western India Regional Council ofThe Institute of Chartered Accountants of India

The Institute of Chartered Accountants of India(Setup by an Act of Parliament)

EditorialTeam

Contents

CA. Dhiren Parikh 93762 11099Chairman

CA. Hitesh Agrawal 99980 28737

CA. Krunal Bhrambhatt 78748 11551

CA. Vin d Pahilwani 98980 78176

CA. Pradeep Agrawal 98985 60967

CA. Arpan Dodia 98983 83530

CA. Abhijit J Kotecha 98254 83173

CA. Manoj Sahu 90990 94500

CA. Rikin Patel 88667 09509

Vice-Chairman

Secretary

Treasurer

Ex-officio

IP - Chairman

Committee Member

Committee Member

Committee Member

o

CA. Dhiren Parikh CA. Manoj Sahu

CA. Rahul Parikh CA. Nayan R Kothari

CA. Neena Patel CA. Gunjan Agrawal

CA. Jigita Shah CA. Dhruti Vaidya

CA. Parth Patel CA. Chintan Popat

Forthcoming Events ... 2

Direct Tax Updates ... 3

Judicial Decisions on Indirect Taxes ... 4

...

Carry Forward of Cesses UnderGST ...

Power, Democracy and Leadership ... 7

FAQ on ICDS - 4 Part II

Snap Gallery ... 11

GST Update 5

6

... 8

Pg. No.

ManagingCommittee

Chairman Communication

Dear Members,

Gujarat and Maharashtra are an integral part of our Western IndiaRegional Council. These two leading states of our country whichhave contributed tremendously to the growth of our Nation,celebrated their Foundation Day on 1st May. Being Members of thisregion WIRC, we enjoy the fruits of this progress. Let us take a leaffrom history and do our own personal bit to contribute to our Nation.

First month of new fiscal year April started with various programmelike Workshop on GST, GST Clinic, Full Day Seminar on InternalAudit & Internal Control, Workshop on Income-tax and Half DaySeminar on Taxation of RERA. Baroda Branch has also started 6thBatch of Certificate Course on ConcurrentAudit of Banks.

Direct Tax Refresher Course (DTRC) is one of the most awaitedprogramme of Baroda Branch. We are organising DTRC in themonth of May covering interesting topics with eminent faculties.Apart from DTRC we have workshop on Income-Tax, Lecturemeeting on Mastering Insolvency Code andAllied Money RecoveryLaws & Professional Opportunities for CAs, Lecture meeting onAccounting and Taxation- Convergence or Divergence. Membersare requested to take full advantage to upgrade professionalknowledge.

Members are requested to renew membership with institute byremitting the annual membership/certificate of practice fees, whichbecome due for payment on 1stApril, 2018 and need to be paid on orbefore 30th September, 2018. Details of various fees are published innewsletter.

We are glad that like every year, this year also members from ourBaroda Branch have been co-opted at various committees of WIRC.I congratulate all the members who have been co-opted at WIRCcommittees.

As always, we at Baroda Branch have been at the forefront inconducting multiple interactive seminars and study circle meetingsto cover a wide spectrum of subjects ranging from GST, Income Taxand International Taxation, IndAS, Internal Audit, InformationTechnology etc. Members are also requested to suggest any topic ofacademic interest so as to arrange programme on that.

The month of May apart from being the hottest month of the year isalso the month of endurance for our students who have to face examsduring this month. May is the month when students shall beappearing for the IPCC and CA Final Exams. I wish to convey mybest wishes to all the students.

With the recently concluded exams of the schools and colleges,members will have quality time to spend with their families and tomake the most of the summer vacations. We believe that "Quality oflife is enriched if we have a happy balance between work andfamily". I convey my best wishes for a happy summer vacation to allthe members and their families.

With warm regards,

Chairman

CA. Dhiren Parikh

e-Newsletter(Circulated by Email)

Baroda Branch of WIRC of ICAI2

Branch Events

HrsCPE 6

Day & Date :

Time :

Venue :

Friday, 27.04.2018 & Thursday, 03.05.2018

5.30pm to 8.30pm

Faculty :

Fees :

CA.Virat Bhavsar, Vadodara

CA. Jaimish Patel, Vadodara

CA. Sanket Bakshi, Vadodara

For Members: Rs. 550 /- & For Non Members:Rs. 650/- including 18% GST for 2 days

ICAI Bhawan, Vadodara

2 Days Workshop on Income-Tax

HrsCPE 2

Day & Date :

Time :

Venue :

Tuesday, 01.05.2018

6:00 pm to 8:00 pm

Faculty :

Fees :

CA. Rajkumar Adukia

Rs. 250/- including 18% GST


Lecture Meeting on MasteringInsolvency Code & Allied Money RecoveryLaws and Professional Opportunities for CAs

Hrs

Hrs

CPE

CPE

2

12

Day & Date :

Time :

Venue :

Saturday, 05.05.2018

3:00 pm to 5:00 pm

Faculty :

Fees :

CA. N.C. Hegde, CCM

Rs. 250/- till 04.05.2018 afterwards Rs. 350/-including 18% GST


Day & Date :

Venue :

Friday, 25.05.2018

ICAI Bhawan, VadodaraWorkshop on Accounting and Taxation-Convergence or Divergence

CA Students Talent Search-2018

Direct Tax Refresher Course (DTRC)

Fees :

CPE :

Rs. 550/- including 18% GST per Session

Rs. 1500 /- till 10.05.2018 afterwardsRs.1700/- including 18% GST for Full Series


Total 12 Hrs (4 Hrs per Session)

Venue :

Topic Speaker

Recent Changes & Developments in Penalties CA. Sanjeev Lalan,and Prosecution regime under Income Tax Act Past Chairman WIRC,

Mumbai

Saturday, 12.05.2018 | Time : 2:00 pm to 4:00 pm



Recent Tribunals / High Court & Supreme Adv. Manish J Shah,Court judicial decisions Ahmedabad

Taxation regime for Cash Transactions including CA. Jagdish Punjabi,handling of issues relating to Demonetization Mumbai

Recent important developments in International CA. Nihar Jambusaria,Taxation & Transfer Pricing Central Council

Member, Mumbai

Current Issues in Corporate Taxation Including CA. Pradip Kapasi,MAT with Case Studies Mumbai

Recent Issues in Penny Stocks Transactions and CA. Mukund Bakshi,Bogus Purchases Vadodara




WICASA Events

Day & Date :

Venue :

Monday, 27.05.2018


CPT Mock Test

Day & Date :

Venue :

Saturday & Sunday, 02 & 03.06.2018

Sama & Manjalpur Sports Complex

Day & Date :

Venue :

Friday & Saturday, 29 & 30.06.2018

Pandit Dindayal Hall, Ajwa Road, Baroda

Spocul

CA Students Conference

Study Circle EventsDay & Date :

Time :

Topic :

Faculty :

Fees :

Venue :

Thursday, 10.05.2018

6.00 pm to 8.00 pm

MSMEDAct.

CA. Kejal Pandya

NIL for Study Circle members and Rs. 250/-(including 18% GST for non members)


Day & Date :

Time :

Topic :

Faculty :

Fees :

Venue :

Thursday, 17.05.2018

6.00 pm to 8.00 pm

Checklist for Finalisation ofAccounts andAudit

CA. Rashmikant Thakkar

NIL for Study Circle members and Rs. 250/-(including 18% GST for non members)


Hrs

Hrs

CPE

CPE

2

2

C o n g r a t u l a t i o n s

CA. Abhishek NagoriInternational Taxation

CA. Ashok ThakkarInternal Audit

CA. Nayan KothariBanking, Insurance &Pension

CA. H M RaoPublic Finance andGovernment Accounting

Baroda Branch of WIRC of ICAI

is proud to share that these

CAs of Baroda are co-opted in

various Committees of WIRC

CA. Chandresh I ShahCo-op. Society (Gujarat)

CA. Tejas PurohitCo-op. Society (Gujarat)

CA. Nitesh KhethanCo-op. Society (Gujarat) CA. Hetang Pandya

Corporate & Allied laws

Jointly with Study Circle


1. New Forms and Rules for Returns

Central Board of Direct Taxes has notified Income

Tax Return Forms for the Assessment Year 2018-

19. Observations on such forms:

a) Simplified one page can be filed by

an having income

Individuals not covered by

above,

If they have business income,

and such persons.

b) can furnish details of

for the purpose of

c) Forms require breakup of

d) is claimed under section 54 to 54GB,

are also

required.

e) Goods and services tax identification number

and to be

stated in all cases including those under

presumptive income scheme.

Cases not covered by presumptive income scheme

and also not covered by audit under section 44AB

required to give

in the Profit and Loss

account, with reference to

ITR Form-1

individual, ordinarily resident,

upto Rs.50 lakhs from salary, one house property

and other sources.

and HUFs not having business income

to file ITR Form-2.

ITR 4 is if it is assessable on presumptive basis

ITR 3 is for the remaining

Non-residents, one

foreign BankAccount refund.

salary separately

stating allowances, perquisites etc.

If exemption

dates of transfer of capital assets

(GSTIN) turnover reported under GST

more details relating to total of all

items of expenditure

their treatment under

Contributed by :can be reached at [email protected]

CA. Narendra Hindocha

Direct Tax Updates

GST

unregistered

entities

composition scheme, exempt

Form 3CD will be changed

Delayed filing to attract penalty details

restriction of claim

as per section 38(2), of depreciation

presumptive taxation

details of

secured/unsecured loans, advances, fixed assets,

capital account etc.

law. These details to give breakup of such

total expenditure so as to separately show

aggregate of transactions with

as also aggregate of transactions with

Registered entities. Transactions with Registered

entities also to show separately transactions with

suppliers under

transactions etc.

It would appear that to

incorporate these details.

f) of which

are to be given in the Return.

g) Forms provide for reporting of

on assets not

exclusively used for business

h) Taxpayers opting for

scheme under section 44AD, 44ADA or 44AE

apart from details of creditors, debtors, stock-in-

trade and cash balance, also to give

As per 3 separate Notifications dated 5th April

2018, registration, statement upload and all other

facilities for Form No. 61, 61A and 61B have been

migrated from e-filing portal to the Reporting

Portal at https://report.insight.gov.in with effect

from 9th April 2018. The Reporting Portal is

being implemented under Project Insight of

Income Tax Department and it will serve as one-

stop-window for your third party reporting related

requirements. The New Reporting Portal provides

enhancements over present functionalities on the

2. New process for filing Statement of specified

Financial Transactions etc.

e-filing portal

of India settled decades old

controversy relating to housing societies in its

order in Civil Appeal No.2706 OF 2018 Income

Tax Officer, Mumbai Versus Venkatesh Premises

Cooperative Society Ltd. and several other

societies. The question before the Court was

whether certain

from its members i.e.

are

based on the

The decision was in favour of the

assessees and accordingly, such receipts are

As per Notification No. 10/2018 dated

19.02.2018, Charitable or religious trust or

institution can apply for registration under section

12Aonline. This will require filing of Form-10A

as also other documents which were otherwise

filed manually. .

Circular dated 2nd April 2018 gives details of the

action plan for the first quarter of financial year

2018-19. Some of the details are as under:

- Disposal of 25 (20

in International Taxation cases) per Assessing

Officer, of limited scrutiny, set aside

assessment, reopened assessment u/s 147 and

OCM scrutiny. The assessments should be

3. Receipts by housing societies for transfer fees

etc

4. Online registration of Trusts

5. Action plan

Supreme Court

receipts by co operative

societies, non occupancy

charges, transfer charges, common amenity

fund charges and certain other charges,

exempt from income tax doctrine of

mutuality.

not

liable to tax.

assessments in at least cases



CA. Anirudh Sonpal

Judicial Decisions onIndirect Taxes

I. CLASSIFICATION

1.1 Watery coconut, which becomes dry coconut of

copra in due course, is an oil seed under the CST

Act, and liable to 4% tax; it is not classifiable

under the category of Fruits, other than Coconut.

The Honourable High Court did not accept the

plea of the appellant that watery coconut cannot be

classified under the category of ‘coconut’.

[Shiva Traders vs DC of Comm Tax – Chhatisgarh

HC]

1.2 While allowing the petition, the Honourable High

Court held that Blood Collection Monitors and

Blood Storage Refrigerators were to be classified

as Medical Equipment under the KVAT Act since

these were intricately connected with medical

treatment and cannot be said that these were used

only for storage of blood and hence are not part of

medical equipment.

[Aditya Surgical Ltd vs State of Karnataka –

Karnataka HC]

2.1 In view of the decision of the Honourable Supreme

Court in the matter of Larsen & Toubro Ltd, the

Honourable High Court held that the assessee was

eligible for refund of Service Tax paid on erection,

commissioning and installation services forming

part of the works contract, which could not be

vivisected prior to 1-7-2007.

[Sheth & Sura Eng Pvt Ltd vs UoI – Bombay HC]

2.2 Without obtaining any stay, intention to file appeal

by the revenue authorities is no ground to withhold

refund to the asseesee.

[Delton Cables Ltd vs UoI – P&H HC]

3.1 Where an assessee manufacturer received bonus

for fulfilment of contractual obligation, the same

cannot be said to be suppression of assessable

value for payment of excise duty unless it can be

established that the additional consideration was

in relation to clearance of goods and as a result, the

assessable value was depressed.

[Thermax Ltd vs CCE – Mumbai Cestat]

II. REFUND

III. VALUATION

3.2 Fee concession given to students of a coaching

class by way of scholarship scheme cannot be

added to the fees collected for levy of service tax

and it cannot be said that such scholarship

concession given is a non-monetary consideration

required to be added to the monetary

consideration.

[Resonance Eduventures Pvt Ltd vs CCE&ST,

Jaipur – Delhi Cestat]

Applicant was facilitating recruitment / enrolment

of students to foreign Universities. Promotional

services were incidental and ancillary to above

principal supply and applicant was paid

consideration in form of Commission, based on

performance in recruiting students, as a

percentage of tuition fee collected from students

enrolled through applicant. Applicant, therefore,

represented University in territory of India and

acted as its recruitment agent. Thus, whatever

services were provided by applicant were only as a

representative of University and not as an

independent service provider. Accordingly,

applicant's service to foreign universities did not

qualify as 'Export of Services' and were therefore,

taxable under GST.

[Global Reach Educational Services Pvt Ltd –

AAR, West Bengal]

Detention of goods merely for infraction of

procedural Rules in transactions which do not

amount to taxable supply, is without jurisdiction.

Thus, where petitioner was transporting goods

procured by him for own use to site where goods

IV. EXPORT OF SERVICE

V. DETENTION

completed through the ‘E-Proceeding’

functionality

- Issue of in cases as per

SOPin respect of data of cash deposit in banks

- Processing in all cases where notices u/s

142(1) have been issued up to 31.03.2018 to be

done by 31st May, 2018

- Processing of the

u/s 276B/276BB in

already identified during FY 2017-18 & 2016-

17 and taking such cases to logical end

including uploading/updating of the status of

disposal on TRACES portal

- Disposal of pending appeals through ITBA-

starting from the oldest year to the year

following and so on, so as to attain a total

disposal of

142(1)/ 148 notices all

TDS/TCS defaults for

prosecution 10 cases

150 appeals of less than Rs.10 lakh

per CIT (A).


minimum of three members of the Authority shall

constitute quorum at its meetings. If the Members

of the Authority differ in their opinion on any

point, the point shall be decided according to the

opinion of the majority of the members present

and voting, and in the event of equality of votes,

the Chairman shall have the second or casting

vote.

3. In the definition of “Interested Party” for the

purpose of anti-profiteering provisions in existing

list (a) suppliers of goods or services under the

proceedings; and (b) recipients of goods or

services under the proceedings; (c) has been

inserted i.e. any other person alleging, under sub-

rule (1) of rule 128, that a registered person has not

passed on the benefit of reduction in the rate of tax

on any supply of goods or services or the benefit of

input tax credit to the recipient by way of

commensurate reduction in prices.

4. An explanation is inserted in Chapter XVI in

respect of E-Way Rules that for the purposes of

this Chapter, the expressions transported by

railways‘, transportation of goods by railways‘,

transport of goods by rail‘ and movement of goods

by rail‘ does not include cases where leasing of

parcel space by Railways takes place.

Central Government vide

appoints 1stApril, 2018

to take in to effect of provisions in respect of E-Way

Bill.


specifies that the return

in FORM GSTR-3B as under:

Notification No. 15/2018

Central Tax, dated 23.03.2018



Month Last date for filing of return in FORM

GSTR-3B

Month Time period for furnishing the

details in FORM GSTR-1

April 2018 20th May, 2018

May 2018 20th June, 2018

June 2018 20th July, 2018


specifies that the

registered persons having aggregate turnover of up to

1.5 crore rupees in the preceding financial year or the

current financial year, as the class of registered persons

who shall furnish the details of outward supply of

goods or services or both for the quarter April to June,

2018 till the 31st day of July, 2018.


specifies that the

registered persons having aggregate turnover more than

to 1.5 crore rupees in the preceding financial year or the

current financial year, as the class of registered persons

who shall furnish the details of outward supply of

goods or services or both as under:

April 2018 31st May, 2018

May 2018 10th June, 2018

June 2018 10th July, 2018


extends due date of

furnishing the return by an Input Service Distributor in

the Form GSTR-6 for the months of of July, 2017 to

April, 2018, till the 31st day of May, 2018.


extends due date for









were to be consumed even though transportation

of goods was not declared by petitioner as

provided for in Rules 55 and 138 of the Kerala

Goods and Services Tax Rules, goods could not

have been detained.

[Indus Towers Ltd vs Asst State Tax Officer –

Kerala HC]


CA. Manilal Parsiya

GST Update


amends Central Goods

and Service Tax Rules, 2017 as under:

1. In respect of inputs and capital goods sent to the

job worker following changes are made in Rule 45

of CGST Rules. Where the goods are directly sent

from one job worker to another job worker, the

challan may be issued either by the principal or the

job worker sending the goods to another job

worker or the challan issued by the principal may

be endorsed by the job worker, indicating therein

the quantity and description of goods where the

goods are sent by one job worker to another or are

returned to the principal. Further the challan

endorsed by the job worker may be further

endorsed by another job worker, indicating therein

the quantity and description of goods where the

goods are sent by one job worker to another or are

returned to the principal.”

2. In respect of decision of anti-profiteering

authority Rule 134 is substituted to the effect that a




filing of application for refund under section 55 by

notified agencies before the expiry of eighteen months

from the last date of the quarter in which such inward

supply was received.


amends Central Goods

and Service Tax Rules, 2017 as under:

1. Rule 89(5) is substituted in the case of refund on

account of inverted duty structure, refund of input

tax credit shall be granted as per the following

formula:- Maximum Refund Amount =

{(Turnover of inverted rated supply of goods and

services) x Net ITC ÷ Adjusted Total Turnover} -

tax payable on such inverted rated supply of goods

and services.

Explanation:- For the purposes of this sub-rule, the

expressions –

(a) “Net ITC” shall mean input tax credit availed

on inputs during the relevant period other than

the input tax credit availed for which refund is

claimed under sub-rules (4A) or (4B) or both;

and

(b) “Adjusted Total turnover” shall have the same

meaning as assigned to it in sub-rule (4).

2. Provisions in respect of consumer welfare are

substituted vide amendment in Rule 97.

3. Where any registered person who has availed of

input tax credit opts to pay tax under Section 10 or

where goods or services or both supplied by him

become wholly exempt, he shall reversal/payment

of tax on inputs held in stock, inputs contained in

semi-finished and finished goods held in stock and

capital goods. In case of reversal of input tax credit



in respect of capital goods the value of capital

goods shall be the invoice value reduced by 1/60th

per month or part thereof from the date of invoice.


CA. Abhay Desai

Carry Forward of CessesUnder GST – High Court

Ruling and its Impact

1. Earlier we have opined that registered tax payer

can carry forward the balance of any cesses

forming part of last return filed under earlier

regime in view of express provisions of Sec.

140(1) of the Central Goods & Services Tax

(“CGST”)Act, 2017.

2. Recently it has been reported in the media that post

the decision of Hon. Delhi High Court in the case

of

such carry forward will not be permitted.

We beg to differ with the said view. In order to

appreciate our view it is first worthwhile to

consider the ruling of Delhi High Court.

3. Under the CENVAT Credit Rules (“CCR”), 2004

credit of Education Cess (“EC”) as well as

Secondary Higher Education Cess (“SHE Cess”)

was allowed. However the utilization of said

cesses was permitted only against the

corresponding cesses payable on removal of

manufactured goods or provision of taxable

service. Hence cross utilization of cesses against

the duty/tax amount payable was not permitted.

4. W.e.f. 01.03.2015, EC as well as SHE Cess were

abolished in case of excisable goods vide

Cellular Operators Association of India and

Others vs UOI and Others 2018-TIOL-310-HC-

DEL-ST,

Notification No. 14/2015-CE and 15/2015-CE

respectively. Similarly w.e.f. 01.06.2015 such

cesses were also abolished in case of taxable

services vide Notification No.14/2015-ST. CCR,

2004 however permitted cross utilization of such

cesses availed on goods received on or after

01.03.2015 or on input services on or after

01.06.2015 against the duty/tax payable. Issue

before the Hon. Delhi High Court was with respect

to the balance of such cesses lying as on

28.02.2015 (in case of manufacturer) or

31.05.2015 (in case of service provider). CCR,

2004 did not allow cross utilization of such

balances against duty/tax payment thereafter.

Hence a writ petition was filed before the Court

seeking a direction to permit cross utilization of

such balances of cesses against tax payable.

5. It was contended by the petitioners that when the

credit of such cesses was availed, a vested right has

been created and hence law cannot take away the

said right post valid availment of credit. Reliance

was placed upon the judgment of the Supreme

Court in Eicher Motors Limited and Another

versus Union of India and Others, (1999) 2 SCC

361 and Samtel India Limited versus

Commissioner of Central Excise, Jaipur, (2003) 11

SCC 324. It was also contended that as per the

Budget Speech of the Hon. Finance Minister as

well as the memorandum explaining provisions of

Finance Bill, 2015, EC & SHE Cess have been

subsumed with the excise duty (general rate

increased from 12% to 12.5%) and service tax

(general rate increased from 12 %to 14%) and

hence utilization of balance of such cesses should

be permitted against the higher duty/tax payable

which indirectly includes the cess amount (since


A major challenge facing modern democracy is how to

build enlightened leadership within the democratic

framework. This article examines the problem in a

holistic perspective and in the light of Indian insights.

“ability to influence people or events,” “right or

authority to do something,” “political authority or

control.”

Key Perspectives

The Forms of Power

Forms of power; political challenge.

Oxford dictionary defines the concept of power as the

We may classify power into four categories:

political, economic, social and psychological. Political

power comes from position, authority and hierarchy.

For example a Prime Minister or President of a Nation

or the CEO of a multinational company has a certain

political power which comes from their position of


CA. Bimal R. Bhatt

Power, Democracyand Leadership

the same is subsumed). Reliance was placed on the

dictionary definition of the term “subsumed”,

which means to include, absorb in something else

or incorporated into something larger or more

general. Reference was also made to the

Explanation given by the Joint Secretary, Tax

Research Unit, Ministry of Finance, Government

of India, vide letter F.No.334/5/2015-TRU dated

28th February, 2015

6. Court however rejected the contentions of the

petitioner and held that balance of such cesses

cannot be permitted to be cross utilized against the

duty/tax payable in view of express provisions of

CCR, 2004. Provisos added vide clause (b) to Rule

3(7) permitting cross utilization of such cesses

availed on inputs, capital goods or input services

after the specified date is a concession limited to

narrow set of cases and same cannot be implied to

grant cross utilization of balance of such cesses on

28.02.2015 or 31.05.2015. Carving out of such

exceptions is not violative of Article 14 of the

Constitution of India. Court also held that there is

no provision in law which states that such cesses

have been subsumed. A speech by Hon. Finance

Minister or memorandum explaining provisions

of Finance Bill, 2015 is an economic, political and

policy statement. Raising or increasing taxes often

meets resistance, and on most occasions has to be

justified and explained. It was held that in the

present context there was a clear intention to

increase the taxes and hence the contention of such

cesses having been “subsumed” and thus cross

utilization must be permitted cannot be accepted.

Court also distinguished the decision in the case of

Eicher Motors Limited (supra) by referring to the

context in which said decision was arrived.

Reliance was placed on the decision in the case of

Osram Surya (P) Ltd. Versus Commissioner of

Central Excise, Indore, 2002 (142) ELT 5 (SC)

wherein challenge to introduction of six months’

time limit for claiming MODVAT credit benefit

did not find favor with theApex Court.

7. From the above ruling one can observe that the

issue involved was with respect to cross utilization

of balances of cesses lying on the date when the

same were abolished against the duty/tax payable.

Issue was not of availment of credit of such cesses.

Hence we submit that the above ruling shall not

affect the availment of such cesses and hence such

balance carry forwarded in the earlier regime was

not prohibited. Further it is worthwhile to refer to

the concerned provisions of Sec. 140(1) of the

CGSTAct, 2017. Same is reproduced below:

8. Above provision thus provides that a registered

person can carry forward amount of “CENVAT

credit”. CENVAT Credit is further defined by an

Explanation to Chapter XX as it shall have the

same meaning as assigned in the Central Excise

Act, 1944 (1 of 1944) or the rules made thereunder.

Rule 3 of CCR, 2004 which includes such cesses

APPLICABILITYUNDER GST

“140. Transitional arrangements for input tax

credit. - (1) A registered person, other than a

person opting to pay tax under section 10, shall be

entitled to take, in his electronic credit ledger, the

relating to the period ending with the day

immediately preceding the appointed day,

furnished by him under the existing law in such

manner as may be prescribed :”

amount of CENVAT credit carried forward in the

return

as CENVAT Credit clearly supports our view that

the same will be regarded as “CENVAT Credit” for

the purpose of Sec. 140(1) of the CGSTAct, 2017.

Even Krishi Kalyan Cess is regarded as “CENVAT

Credit” (please refer our earlier article for detained

analysis).

9. Hence we are of the view that the ruling by Hon.

Delhi High Court shall not affect carry forward of

balance of such cesses validly availed in the earlier

regime. Media reports are not to be trusted when it

comes to nuances of law.


authority. We may include here as part of political

power some of the material or vital forms of power like

oratory, physical charisma or mass appeal. Wealth is the

source of economic power. This doesn’t need any

elaboration or example because the power of money is

well known. The social power comes from possessing a

knowledge, skill, expertise or qualities valued or

respected by the community, especially a particular

community, nation or culture of which the individual is

a part. For example, in ancient India, the Brahmin had

not much of political or economic power but has

considerable social power. The fourth and the highest

form of power is the psychological and spiritual power,

which comes from power of thought, – which means the

ability to think with clarity, insight and vision –

leadership qualities, strength of character, self-mastery,

lived values or walking the talk and spiritual growth.

The great challenge facing modern governance is to

ensure that political power goes to people with

sufficient and matching psychological and moral

power. In ancient India political power was vested

mostly with the royal and warrior clans of Kshatriya’s,

bequeathed by birth and hereditary. But most of the

leaders of the Kshatriya clan, like for example the

crown prince, were put through a rigorous physical,

mental, moral and religious education based on the

ideal of dharma.

This education and training has to a certain extent

helped in building the required psychological and

moral power in the political leader. But in modern

democratic polity, which elects the political leaders by

vote, there is no such mental or moral education or

standards for the leaders. As a result there is a great

The Political Challenge

deterioration in the quality of political leadership.

How to rectify this situation? The first step is to educate

the citizen and the voter on the ideals of true leadership

and on the type of leaders which can bring the highest

wellbeing to people and society. In this task, the modern

mass-media with its extensive reach can be a great help

in educating the public on how to choose the right type

of leaders. The second step is to maintain certain basic

mental and moral standards for contesting the election

like for example some minimum educational

qualification or no criminal record. The third step is to

educate the elected leaders on the ideals of leadership

and governance and how to develop the psychological,

moral and spiritual power needed to lead and govern in

the right way. For example in most of the big and

progressive companies in the corporate world,

managers and executives go through regular training

and development programmes for upgrading their

knowledge and skill and some of them make a

conscious, systematic and planned effort to educate and

groom their future leaders. A similar effort has to be

made in the political domain.

The third step is to promote creative thinking and

research in political thought, governance and

leadership. Here again the modern political world can

learn much from the corporate world. Modern business

has given birth to the science of management which is a

rigorous and innovative academic and professional

discipline, which nourishes theoretical and practical

research on the various aspects of corporate

management, governance and leadership. A similar

attempt has to be made in the political domain.

(Source: Fourth Dimension Inc.)


CA. Prashant Upadhyay

FAQ on ICDS - 4 Part II- Revenue Recognition

1) What are the deviations of ICDS IV vis a vis IndAS 18?

Followings are the distinction of ICDS IV and Ind

AS 18:

Sr. Issue

Covered

1) Definition of

Revenue

2) Taxes

collected from

buyer

3) Barter

Transactions

ICDS IV

“Revenue” is the

gross inflow of

Cash, Receivables

o r o t h e r

consideration.

ICDS IV is silent

o n t h e i s s u e .

However, Section

145A states that

revenue includes

all taxes collected

from customer.

ICDS is silent in

this regard.

IndAS 18

The definition is broader

which states that the

”Revenue” is the gross

inflow of economic

benefits that increases

e q u i t y o t h e r t h a n

contribution from equity

participants.

Here, revenue includes

consideration collected

o n o w n a c c o u n t .

Amounts collected on

behalf of Government

a r e n o t e c o n o m i c

benefi ts which can

increase equity.

Exchange of similar

goods & services are not

regarded as revenue.

In cases of exchange of

goods and services with

goods and services of

dissimilar nature either

the revenue is recognized

at fair value of goods and

services received or if

that is not ascertainable

then to be recognized at

fair value of goods and

services given.


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ST

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