March - 2015

` 5/-
The Institute of Chartered Accountants of India
(Set up by an Act of Parliament)
per copy
Vol. XXI
|
Part I
|
March - 2015
HUBLI
BRANCH
OF SIRC
From the Chairman’s desk
at all India Level for the first time since
the inception of Hubli Branch of
SICASA in 1995.
We heartily congratulate the newly
elected President of ICAI CA Manoj
Fadnis and Vice President CA M.
Devaraj Reddy. We also heartily
congratulate our newly elected team of
SIRC headed by CA P.R. Aruloli Chairman
and CA E. Palguna Kumar Secretary for
the year 2015-16.
With the feedback of the Managing
Committee an Action Plan of Hubli
Branch for the year 2015-16 is being
prepared in line with the Action Plan of
our Beloved President CA Manoj
Fadnis. The agenda for the year is set
and focused, to provide value added
knowledge to our members and
students.
Dear Esteemed members
It is a great privilege and pride
movement to take over as the 30th
Chairman of this Vibrant Branch. I
thank the members of the managing
committee for reposing the
confidence in me. I also take this
opportunity to thank all the Past
Chairmen and members in profession
for giving me this opportunity to serve
the Branch and the Profession at large.
I along with my managing committee
members dedicate ourselves to the
best of our ability, so at to take the
branch to reach further heights. On
the occasion I seek the guidance,
support and well wishes of the entire
galaxy of past Chairmen who have
rendered their services relentlessly and
persistently in achieving the laurels to
this vibrant branch. I also seek the
support and co-operation from all the
senior members and my professionals
colleagues to attain greater heights in
the coming year thorough your active
participation in the activities of the
branch.
The entire Managing Committee
congratulate CA Hiteshkumar Modi
Chairman for his effort in serving the
branch and bagging the BEST BRANCH
Award at All India Level for the year
2014. We also congratulate CA R. R.
Joshi Chairman SICASA for bagging
the Best Branch of Students
Association Certificate of Appreciation
I had the opportunity to meet the
newly elected President, Vice
President,
Regional and Central
Council Members on the occasion of
Chairmen Meet at Chennai. We have
discussed various issues and
programmes of Hubli Branch.
For the Month of March a host of
programmes have been lined up. On
the recently presented Union Finance
Budget, we are conducting “Clause by
Clause Analysis of Budget - 2015”. The
budget proposals have made us to
think in a different vision and
opportunity. Lots of activity are going
to happen at the central level and mark
the beginning of MAKE IN INDIA
PROJECT. We have planned to host this
programme in association with other
trade organization for the benefit of
businessmen and society at large.
Branch Bank Audit are likely to be
announced in the first week and we have
to gear up for the same. In this regard
Hubli Branch is holding one day seminar
on Branch Bank Audit. CA K. Sripriya
Regional Council Member, Chennai
have consented to address our members
on the Bank Audit. We are also having a
session on Practical hands on CAAT Tools
also. Members are request to attend in
large and take full benefit.
The Certificate Course on Co-operative
and NOP is schedule to commence on
23th May 2015, The registration process
in on and limited seats are available. We
request you all to get requested at the
earliest and be benefited from this
course.
Govt. notifies new list of agricultural commodities
which aren't "taxable commodities transactions"
COMMODITIES TRANSACTION TAX
(FIRST AMENDMENT) RULES, 2015 AMENDMENT IN RULE 3
NOTIFICATION NO.13/2015
[F.NO. 142/09/2013-TPL]/SO 424(E), DATED 10-2-2015
In exercise of the powers conferred by sub-sections (1) and (2) of section 133 of
the Finance Act, 2013 (17 of 2013) (herein after referred to as the Act), the Central
Government hereby makes the following rules to amend the Commodities
Transaction Tax Rules, 2013, namely:1.
2.
We are also planning to conduct 2nd
Batch of Certificate Course on
Concurrent Audit of Banks and Post
Qualification Course on Information
Systems Audit (ISA). Interested
members may please enroll their names
with the Branch.
Regarding the Infrastructure
development, the process of furnishing
the Interiors of Auditorium is taken up
on priority basis and be completed at
the earliest.
I and on behalf of Managing Committee
members wish all the members and their
family a HAPPY COLORFULL HOLI
F E S T I VA L a n d a H A P P Y U G A D I ,
beginning of Hindu New Year.
The success of every event lies with the
active involved participation and cooperation of every member. Hence we
seek your whole hearted support, guidance
and participation in all the events which
will strengthen the brand image of Hubli
Branch and keep our Institute Flag flying
High.
With Kind Regards
Yours professionally,
CA PRAKASH R KADUR
Chairman
02
3.
(l) These rules may be called the Commodities Transaction Tax (First
Amendment) Rules, 2015.
(II) They shall come into force on the date of their publication in the Official
Gazette.
In the Commodities Transaction Tax Rules, 2013, for rule 3, the following rule
shall be substituted, namely:Agricultural commodities.- For the purposes of clause (7) of section 116 of the
Act, the agricultural commodities shall be the following, namely:(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
(xiv)
(xv)
(xvi)
(xvii)
(xviii)
(xix)
(xx)
(xxi)
(xxii)
(xxiii)
(xxiv)
(xxv)
(xxvi)
(xxvii)
(xxviii)
(xxix)
(xxx)
(xxxi)
(xxxii)
Almond
Barley
Cardamom
Castor Seed
Channa/Gram
Copra
Coriander/Dhaniya
Cotton
Guar Seed
Isabgul Seed
Jeera (Cumin Seed)
Kapas
Maize Feed/Maize
Pepper
Potato
Rapeseed/Mustard Seed
Raw Jute
Red Chilli/Chillies
Soya bean/seed
Soymeal
Turmeric
Wheat
Aniseed
Arhar Chuni
Bajra
Betelnuts
Celeryseed
Chara or Berseem (Including
Chara seed or Berseem seed)
Cinnamon
Cloves
Cotton pods
Cotton seed
(xxxiii)
(xxxiv)
(xxxv)
(xxxvi)
(xxxvii)
(xxxviii)
(xxxix)
(xl)
(xli)
(xlii)
(xliii)
(xliv)
(xlv)
(xlvi)
(xlvii)
(xlviii)
(xlix)
(l)
(li)
(lii)
(liii)
(liv)
(lv)
(lvi)
(lvii)
(lviii)
(lix)
(lx)
(lxi)
Ginger
Gram Dal
Gram Husk (Gram Chilka)
Groundnut
Jowar
Kulthi
Lakh (Khesari)
Linseed
Masur
Methi
Moth
Mung
Mung Chuni
Mung Dal
Nutmeg
Onion
Peas
Ragi
Rice Bran
Rice or Paddy
Safflower
Seedlac
Sesamum (Til or Jiljilli)
Small Millets (KodanKulti,
Kodra, Korra, Vargu, Sawan,
Rala, Kakun, Samai, Vari and
Banti)
Sunflower seed
Tur (Arhar)
Tur Dal (Arhar dal)
Urad (Mash)
Urad Dal
Highlights Of
UNION FINANCE BUDGET 2015
INCOME TAX
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No change in rate of personal income tax.
Reduce corporate tax from 30% to 25% over the next four
years, starting from next financial year.
Rationalisation and removal of various tax exemptions
and incentives to reduce tax disputes and improve
administration.
Generation of black money and its concealment to be
dealt with effectively and forcefully
Acceptance or re-payment of an advance of `20,000 or
more in cash for purchase of immovable property to be
prohibited.
PAN being made mandatory for any purchase or sale
exceeding Rupees 1 lakh.
Rate of Income-tax on royalty and fees for technical
services reduced from 25% to 10% to facilitate technology
inflow.
Balance of 50% of additional depreciation @ 20% for new
plant and machinery installed and used for less than six
months by a manufacturing unit or a unit engaged in
generation and distribution of power is to be allowed
immediately in the next year.
Wealth-tax replaced with additional surcharge of 2 per
cent on super rich with a taxable income of over `1 crore
annually.
Monetary limit for a case to be heard by a single member
bench of ITAT increase from `5 lakh to `15 lakh.
Domestic transfer pricing threshold limit increased from
`5 crore to `20 crore
Donation made to National Fund for Control of Drug
Abuse (NFCDA) to be eligible for 100% deduction u/s 80G
of Income-tax Act.
100% deduction for contributions, other than by way of
CSR contribution, to Swachh Bharat Kosh and Clean
Ganga Fund.
Seized cash can be adjusted towards assessees tax liability.
Limit of deduction of health insurance premium increased
from `15,000 to `25000, for senior citizens limit increased
from `20,000 to `30,000.
Senior citizens above the age of 80 years, who are not
covered by health insurance, to be allowed deduction of
Rs. 30,000 towards medical expenditures.
Deduction limit of `60,000 with respect to specified
decease of serious nature enhanced to `80,000 in case of
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senior citizen.
Additional deduction of `25,000 allowed for differently
abled persons.
Limit on deduction on account of contribution to a
pension fund and the new pension scheme increased from
`1 lakh to `1.5 lakh.
Additional deduction of Rs. 50,000 for contribution to
the new pension scheme u/s 80CCD.
Payments to the beneficiaries including interest payment
on deposit in Sukanya Samriddhi scheme to be fully
exempt.
Yoga to be included within the ambit of charitable
purpose under Section 2(15) of the Income-tax Act.
To mitigate the problem being faced by many genuine
charitable institutions, it is proposed
Modify the ceiling on receipts from activities in the nature
of trade, commerce or business to 20% of the total
receipts from the existing ceiling of `25 lakh.
SERVICE TAX
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Service-tax plus education cesses increased from 12.36%
to 14% to facilitate transition to GST.
Central excise/Service tax assesses to be allowed to use
digitally signed invoices and maintain record
electronically.
Time limit for taking CENVAT credit on inputs and input
services increased from 6 months to 1 year.
Services by common affluent treatment plant exempt
from Service-tax.
Service-tax exemption on Varishtha Bima Yojana.
Service Tax Exemption on All ambulance services provided
to patients
Service Tax Exemption on Admission to museum, zoo,
national park, wild life sanctuary and tiger reserve
Service Tax exemption extended to certain pre cold
storage services in relation to fruits and vegetables so as to
incentivise value addition in crucial sector.
Negative List under service-tax is being slightly pruned to
widen the tax base.
Service-tax to be levied on service provided by way of
access to amusement facility, entertainment events or
concerts, pageants, non recognised sporting events etc.
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EXCISE DUTY
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Education cess and the Secondary and Higher education
cess to be subsumed in Central Excise Duty.
Excise levy on cigarettes and the compounded levy
scheme applicable to pan masala, gutkha and other
tobacco products also changed.
Excise duty on footwear with leather uppers and having
retail price of more than `1,000 per pair reduced to 6%.
Online central excise and service tax registration to be
done in two working days.
Excise duty on sacks and bags of polymers of ethylene
other than for industrial use increased from 12% to 15%.
Excise duty exemption for captively consumed
intermediate compound coming into existence during the
manufacture of agarbathi.
Basic Custom duty on certain inputs, raw materials, inter
mediates and components in 22 items, reduced to
minimise the impact of duty inversion.
All goods, except populated printed circuit boards for use
in manufacture of ITA bound items, exempted from SAD.
SAD reduced on import of certain inputs and raw
materials.
Excise duty on chassis for ambulance reduced from 24%
to 12.5%.
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OTHERS
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Sovereign Gold Bond, as an alternative to purchasing
metal gold scheme to be developed
General Anti Avoidance Rule (GAAR) to be deferred by two
years. GAAR to apply to investments made on or after
01.04.2017, when implemented
Commence work on developing an Indian gold coin,
which will carry the Ashok Chakra on its face.
IIT to be set up in Karnataka
Micro Units Development Refinance Agency (MUDRA)
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Bank, with a corpus of `20,000 crores, and credit
guarantee corpus of `3,000 crores to be created.
MUDRA Bank will be responsible for refinancing all Microfinance Institutions which are in the business of lending to
such small entities of business through a PradhanMantri
Mudra Yojana.
A Trade Receivables discounting System (TReDS) which
will be an electronic platformfor facilitating financing of
trade receivables of MSMEs to be established.
Comprehensive Bankruptcy Code of global standards to
be brought in fiscal 2015-16 towards ease of doing
business.
Postal network with 1,54,000 points of presence spread
across villages to be used for increasing access of the
people to the formal financial system.
NBFCs registered with RBI and having asset size of `500
crore and above may be considered for notifications as
'Financial Institution' in terms of the SARFAESI Act, 2002.
Pradhan Mantri Suraksha Bima Yojna to cover accidental
death risk of `2 Lakh for a premium of just `12 per year.
Atal Pension Yojana to provide a defined pension,
depending on the contribution and the period of
contribution. Government to contribute 50% of the
beneficiaries' premium limited to `1,000 each year, for five
years, in the new accounts opened before 31st December
2015.
Pradhan Mantri Jeevan Jyoti Bima Yojana to cover both
natural and accidental death risk of Rs.2 lakh at premium
of ` 330 per year for the age group of 18-50.
A new scheme for providing Physical Aids and Assisted
Living Devices for senior citizens, living below the poverty
line.
Unclaimed deposits of about `3,000 crores in the PPF, and
approximately `6,000 crores in the EPF corpus. The
amounts to be appropriated to a corpus, which will be
used to subsidize the premiums on these social security
schemes through creation of a Senior Citizen Welfare
Fund in the Finance Bill.
Congratulations
04
CA.K.S.Chetty,
CA.Suresh Chenni,
Past Chairman of Hubli
Branch of SIRC for being
nominated as ViceChairman of The
Merchant Urban Cooperative Bank Ltd, Gadag
for the year 2015-2020
Past Chairman of Hubli
Branch of SIRC for being
elected as Director of The
Laxmi Urban Co-operative
Credit Bank . Gajendragad
for the year 2015-2020
MANAGING COMMITTEE MEMBERS
FOR THE YEAR 2015-2016
We are happy to inform you that in the Managing Committee Meeting held on 19th February, 2015 the following members
have been elected as officer bearers of hubli branch of SIRC of ICAI for the year 2015-2016.
CA. KADUR PRAKASH RUDRAPPA
CHAIRMAN
Chartered Accountant, 2nd Floor, R,No-2,Corporation Bldg Broadway.HUBLI-580 020.
Ph : 0836:2264656, Cell:9449644393, E Mail ID : [email protected]
CA. SHIVAKUMAR G. GURULINGADEVARMATH
VICE-CHAIRMAN & CHAIRMAN SICASA
Chartered Accountant, #Sd IInd Floor, Shreyas Apartments, Plot No 35, Vidyanagar. HUBLI-580021
Ph: 0836-2376438, Cell:9448344077, 9449763533, E Mail ID : [email protected]
CA. KHATAVKAR NANDRAJ
SECRETARY
Chartered Accountant, Divate Complex, Club Road, HUBLI-580 029. Ph : 0836: 2258841,
Cell No. 94488 37388, E Mail ID : [email protected], [email protected]
CA. JOSHI RAGHAVENDRA
TREASURER
M/s R.R.Joshi & Associates, Chartered Accountants, Vikram Building, K.C.Road Extn., GADAG-582 101
Ph: 08372-278880, Cell: 98803 00881, 93436 49882, E Mail ID: [email protected],
[email protected]
CA. MADHUSUDAN D. PISE
MEMBER
Chartered Accountant, “Ashirwad” Sonali Building, 1st Cross Mahindrakar Chawl,
K C Park Road, DHARWAD-580 001.
Ph : 0836-2447663, Cell: 94488 21589, Email Id : [email protected], [email protected]
CA. HITESH KUMAR MODI
MEMBER
Chartered Accountant, No-T2, R.R.Mahalaxmi Mansion, Above Indusind Bank, Pinto Road, Desai Cross.
HUBLI-580 029. Ph : 0836-2213526, Cell:9448473525 Email Id : [email protected]
CA NITHIN M
EX OFFICIO MEMBER
Chartered Accountant, No. 163, Second Floor, Rajeshwari Complex, Above Karnataka Bank Limited,
Near Minerva Circle, R V Road, BENGALURU - 560004
Ph : 080-2657 7870, Cell: 9945682356, E Mail ID : [email protected]
05
Congratulation to
Newly elected
President & Vice-President
of ICAI, New Delhi
CA. Manoj Fadnis
President
CA.Devaraja Reddy
Vice-President
PROGRAM FOR THE MONTH OF MARCH 2015
CENTRAL BUDGET ANALYSIS AND ENABLING MAKE IN INDIA PROJECT
Jointly with Karnataka Chamber of Commerce & Industry, Hubli and NKSSIA, Hubli
Day and Date
:
Wednesday 11th March 2015
Time
:
5.00 pm to 8.00 pm
Venue
:
ICAI Bhavan, Hubli
Chief Guest
:
Sri.Vijay Sankeshwar, Chairman, VRL Ltd, Hubli
3 HRS CPE CREDIT
Guest of Honor
:
Sri.Aravind Bellad, MLA, Dharwad
Subjects
:
Enabling Make in India Project Clause by Clause Budget Analysis
Speaker
:
CA. Yagnesh M. Desai, FCA, Mumbai
Coordinators
:
CA.Gajanan Neelakari, Past Chairman, Hubli Branch of SIRC
CA.Chandan Pai, FCA, Hubli
SEMINAR ON BANK AUDIT
INAUGURAL SESSION
Day and Date
Time
Venue
Chief Guest
:
:
:
:
6 HRS CPE CREDIT
Saturday, 14th March y 2015
8.30 am ( Registration and Breakfast)
ICAI Bhavan, Hubli
TECHNICAL SESSIONS
Session-I
"Bank Audit - Important perspectives”
CA T R Chandrasekharan
FCA, Chennai
Session-II
Using excel in bank audits and documentation
CA.Sripriya.K,
SIRC Member, Bangalore
Session-III
Practical Hands on Data Analysis using CAAT Tools
Sri.Sanjay Vaidya ,
Finance Executive,
Sankalp Semi Conductor PVT LTD, Hubli
Open House for above subjects
Delegation fees
• Rs. 750/- for Members
06
• Rs. 1000/- Non Members
• No delegation fees for Annual Subscriber-2015
Congratulation to
Newly elected
Chairman & Secretary of
SIRC of ICAI, Chennai
CA.P.R.Arulili
Chairman
CA.E.Phalguna Kumar
Secretary
Cont..previous issue
Not Just fine, evading tax could soon invite jail term
“The SIT recommends that a ceiling be imposed on the maximumcash/currencythat an individual/entity is allowed to possess at
aparticular point of time. SIT has recommended Rs 15 lakh as thepermissible limit, however, even a higher threshold may be fixed.
Thegovernment should examine this issue and come up with suitable legalframework to implement this recommendation," it
added.To curb creation of bogus bills, a major tool for evasion of tax, the SIT said,"One important step which can be taken to curb
this menace is to makedeclaring PAN number mandatory for all sales where payment is in cash orthrough bank, above the value of
Rs 1 lakh.
The purchaser would also beunder obligation to ensure that the invoices he gets have the PAN numberof the seller."Sale and
purchase of goods by cash was rampant at present, whichundoubtedly utilized/generated unaccounted money in society, the
SITsaid and recommended appropriate amendment in income tax rules."By such amendment, purchaser is required to disclose his
identity by PANnumber or UID (Aadhaar card) or any other centrally recognizeddocument of identity. It is the firm belief of the SIT
that furnishing of PANin the aforementioned fashion will facilitate the traceability of suchindividuals/entities which raise such
bogus/fake bills," the SIT said.
The SIT also recommended that the government set up a dedicated unitalong the lines of Trade Transparency Unit set up by the US
to examinemismatch between India's export/import data with import/export data ofother countries. Implementation of such a
measure would ensure that thegovernment has a fair idea of the quantum of black money that is beingsiphoned off outside the
physical boundaries of the country through misinvoicing of imports and exports through trade based money laundering, itsaid.
STATUTORY COMPLIANCE FOR MARCH 2015
DATES
COMPLIANCE
6th March 2015
- E-payment of Service Tax and Central Excise Duty
7th March 2015
- Deposit of TDS deducted for the Month of Feb -15
15th March 2015
- Payment of Final Instalment of Advance Tax for the
Financial year 2014-15
- Deposit of PF Contribution and filing of Returns
20th March 2015
- Payment of Net VAT Tax and Filing of Monthly VAT Returns
- Payment of Employee Profession Tax and Filing of Return
Under KPTC Act
21st March 2015
- Deposit of ESIC Contribution and filing of Returns.
31st March 2015
- E-payment of Service Tax and Central Excise Duty
- Filing of Revised Return of Income for the F.Y. 2012-13
- Last date for filing Belated Return for the A.Y. 2013-14
OBITUARY
HUBLI BRANCH OF SIRC
MOURNS THE SAD DEMISE
OF OUR SENIOR MEMBER
CA. M.B.KADKOL ON
14.02.2015. MAY HIS
SOUL REST IN PEACE
07
Photo Feature
Note : "The Branch does not accept any responsibility for views expressed or contributions published in this News Letter."
Printed and Published by HUBLI BRANCH OF SIRC of The Institute of Chartered Accountants of India.
'ICAI BHAVAN', Madhura Chetana Colony, Kusugal Road, HUBLI - 580 023. Tel: 0836-2288337, 2283081; email: [email protected]; Website; http://www.icaihubli.org.
Printed at Vikram Prakashan, K.C. Road, Gadag - 582 101 (Ph: 08372-278880)