For Private Circulation only Chairman CA. B. Venkata Rao email : [email protected] Vol # 4 of 2017 April, 2017 website : www.icaivisakhapatnam.org Editor CA. K. Ramachandra Rao Secretary CA. M. Chalapathy Rao
For Private Circulation only
ChairmanCA. B. Venkata Rao
email : [email protected]
Vol # 4 of 2017 April, 2017
website : www.icaivisakhapatnam.org
EditorCA. K. Ramachandra Rao
SecretaryCA. M. Chalapathy Rao
STUDY CIRCLE MEETING ON BASICS OF NRI TAXATION ON 1ST MARCH, 2017
CPE SEMINAR ON TAXATION OF HUF & BENAMI TRANSACTION ACT & LABOUR LAWS ON 4TH MARCH, 2017
CA. T. Ramprasad
CA. E. Phalguna Kumar
Shri S.V. Ramchandra Rao
Distribution of Prizes out of Student Prize funds by CA. C.V. Ramana Rao to Meritorious Students of Nov 2016 Exams
VALIDICTORY OF 150TH BATCH OF ITT ON 8TH MARCH, 2017
Recognising the faculty through the hands of past chairmen who graced the occasion
ITT Coordinator : CA. Pavaniaddressing the students
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
Dear Esteemed Colleagues,
Chairman Writes .......
Dear professional colleagues
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This new financial year is the start of another layer in
the professional life and a new beginning of new hopes,
aspirations and dreams.
India's biggest tax reform took another key step forward
with crucial legislation related to the goods and
services tax being introduced in Parliament ahead of
the government's plan to roll it out across the country
by July 1. Hon'ble Finance Minister Sri Arun Jaitley
introduced four legislations that, among other things,
provide for a peak GST rate of 40% and the setting up
of an authority to protect consumers from profiteering
by businesses. The four Bills-on Central GST, Integrated
GST, Union Territory GST and compensation - were
tabled in the Lok sabha and will be taken up for
discussion by the House on March 29. The passage of
the Bills by Parliament will pave way for states to
introduce state GST (SGST) Bills in their respective
houses.
It is time for profession and industry to gear up and be
updated. We are planning to organise series of
programmes on GST. As an initiative, we are organising
a Three Day - 18 Hour Structured Seminar on GST on
19th, 20th and 21st May 2017 in association with
Indirect Tax Committee of ICAI. The detailed structure
of the program, topics, speakers etc will be informed
to members soon. I request all the members to attend
and take the benefit of listening to experts on GST.
We are organising a Half Day Seminar on 23.04.2017,
on the eve of Branch Formation Day. CA. B Shekikizhar
from Hyderabad will address on Documentation with
reference to Peer Review and Emerging challenges and
opportunities in practice. On that day we are
recognising the services of Past Chairmen as a mark
our gratitude towards their relentless efforts for the
branch. This year we are felicitating three past
chairmen of the branch, CA. P. V. Kali Prasada Rao,
CA. SripadaSadasiva and CA. Poosarla Ramakrishna on
that day. I request all the members to attend the
meeting and make it a grand success.
A Full Day Seminar on Companies Act,2013 is being
scheduled on 29th April 2017. CA. Chinnasami Ganesan
from Chennai, and CS Dr. P. V. S.Jaganmohan Rao are
the resource persons for the seminar.
Details of these two important events are published
separately in this news letter.
During the month of March, we have organised crash
course for IPCC students and the same will conclude
by 4th April 2017. We are initiating steps to conduct
mock tests for both Final and IPCC students from 5th
April onwards for the benefit of students.
For the benefit of CPT Students, Branch is planning to
organise the Live Webcast of Two months CPT Coaching
Classes organised by SIRC of ICAI starting from 6th
April 2017 between 2.15 p.m. and 8.30 p.m. (during
week days) and between 6.30 am and 5.00 pm on
Sundays and Holidays. Tentative details of CPT
Coaching Classes and the time table will be announced
in due course. I request the members to spread this
message to student's among your known circle for the
benefit of students pursuing CPT.
The month of March was as usual an eventful one.
On 4th March we have organised a seminar on Taxation
of HUF and Benami Transaction Prohibition
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APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
Amendment Act 2016, Wages under EPF Act. The
session were taken up by CA. E. Phalguna Kumar and
Sri S V Ramachandra Rao. The detailed deliberation's
on Taxation of HUF were well received by members.
I thank our Ex Officio Member, Past chairman SIRC
CA. E Phalguna kumar for addressing the members.
The overview of Benami Transaction Prohibition
Amendment Act 2016, and practical issues with
reference to Wages under EPF Act, both the topics
were very informative and useful for the members. I
Thank S V Ramachandra Rao for addressing our
members.
In that meeting the meritorious students in recently
held IPCC Nov 16 exams were presented with Prize
money constituted by various Student Prize Fund
donors.
On 8th March 2017, the branch has celebrated
completion of 150th batch of ITT and honoured faculty,
staff and past Chairmen present.
On 8th March 2017 we have organised a half day
seminar for women members on the eve of
International Women's Day. The Seminar was
inaugurated by Chief Guest Dr. Sasiprabha and Guest
of Honor Smt. Soumya Pandey Jain, Assistant
Commissioner of Income Tax. The key note addresses
given by Dr. R. Sashi Prabha and Smt. Soumya Pandey
were amazing and source of inspiration for the
delegates. The branch has also felicitated three senior
women members - CA. C. Padmaja, CA. G. Bhavani and
CA. M. Rukmani. The sessions conducted by the
eminent lady speakers CA. A. V. S.Lalitha Sundari on
GST and CA.Maturi Vindya on Stress Management
were thought provoking and well received.
The focus of the programs at our branch during the
month of March was on bank audit. On 11th March
Seminar on Bank Branch Audit has received an
outstanding response from the fraternity and
participated by nearly 160 members. The Seminar was
inaugurated by Sri R Balasubramanian DGM State
Bank of India.We had an excellent learning on "IRAC
norms, Audit of Advances, Issues in Audit of Profit
and Loss account, Balance Sheet and Audit Report".
CA. Soundar Rajan from Chennai and CA. Niranjan Joshi
from Mumbai made the presentations on these topics
in a very detailed manner for the benefit of all the
members. I thank both the resource persons for their
excellent deliberations on the subject.
The Bank Audit Work Shop on Value Addition to Bank
Audit- Key Issues in Verificationof Advances and Audit
under CBS environment on 18th March lead by
CA. B.V.Rao, CA. V.ChandraSekhar, past chairmen of
the branch and CA. D Premnath from Hyderarad. The
speakers with their numerous years' of experience as
an auditor of banks in various capacities, have covered
the subject in well-conceived manner with simple and
lucid illustrations for easy understanding. Sri C M
Minocha, Deputy General Manager, Union Bank of
India, graced the occasion as a Chief Guest.
The topics that were discussed and shared during this
session were very informative and useful. I thank each
of the resource person for their efforts in compiling
all the practical issues and sharing them with
members.
Members as discussed in my action plan - To organise
Study Circle meeting on every Wednesday with topic
of relevance,in this month we have organised three
study circle meetings
On 1st March we organised a study circle meeting on
Basics on NRI Taxation by CA. T.Ramprasad. The topic
was deliberated in detail with presentation and was
well received by members. I thank CA. T.Ramprasad
for addressing the members
On 15th March, a study circle meeting was held on
Registration- Migration issues under GST by
CA.B. Vinay Gandhi. The meeting was very lively and
there was good sharing of knowledge among the
members in that meeting. I thank CA. B. Vinay Gandhi
for accepting our invitation to share his knowledge
with members
On 22nd March, a study circle meeting on ICDS
organised was addressed by CA. Sunil Vamsi Krishna,
who came all the way from Hyderabad to address the
members. CA. Sunil Vamsi made the presentations
on these topics in a very detailed manner for the
benefit of all the members. Due to time constraint
we hold the session at half way mark, and the second
part of the session will continue in April. I thank CA.
Sunil Vamsi Krishna for his excellent presentation.
I thank our past chairmen CA. P. V. S. P. Kumar and
Prof Y. Goutam Rao for enlightening the students on
How to face CA Examinations Meeting. The program
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
was well received by students.
Students and staff of CA firms also need to be geared
up to assist the Chartered Accountants in doing bank
audits and with this view, a seminar was organized.
Excellent response received from the students and staff
members who attended the meeting. I thank
CA. K. Guruprasad and CA. K. Ramachandra Rao past
chairman of the Branch for addressing the students and
staff of CA firms 'On Bank Audit'.
Once again I wish you all happy & prosperous Ugadi,
while wishing you a fruitful financial year 2017-18.
I request each one of you to participate in the
forthcoming programmes and get benefited.
With warm regards
CA. B. VENKATA RAO
Chairman
Editor Column
CA. K. Ramachandra RaoEditor
Respected Professional Colleagues
Financial Supervision by RBI and role of Chartered Accountants in the Banking Industry
The Reserve Bank of India performs this financial supervision function under the guidance of
the Board for Financial Supervision (BFS). Primary objective of BFS is to undertake consolidated
supervision of the financial sector comprising Commercial Banks, Financial Institutions and
Non-banking Finance Companies. One of the initiatives taken by BFS include strengthening of
the role of Statutory Auditors and strengthening of the internal defenses of Supervised Institutions.
The Audit Sub-committee of BFS has reviewed the current system of concurrent audit, norms of empanelment
and appointment of statutory auditors, the quality and coverage of statutory audit reports, and the important issue of
greater transparency and disclosure in the published accounts of supervised institutions. Thus the endeavor of the Reserve
Bank has been to develop a robust, efficient and diversified financial system so as to anchor financial stability and to
facilitate effective Supervision. We as Chartered Accountants are contributing greatly to the task through our dedicated
responsibility. The Business of all Scheduled Banks and all Scheduled Commercial Banks in India as at January 2017 is
Rs.573843.0 billion or 57384300.0 Cr.
Almost all Banks have finalized the allotment of branches. Had it been done a little earlier it would have been
good for the system to execute the audit with in the timeline as expected by the banks. Nevertheless, we are all well
versed with the procedures followed in bank statutory audit and shall be able to do the audit within the framework set by
the RBI and ICAI. Members are aware that the Peer review is now applicable to all the firms and taking steps accordingly
as per SQC-1 for proper working paper documentation. The applicability of ICDS to banks is also appears confirmed
through the recent clarifications by the Income tax department.
Guidance Note on Audit of Banks (2017 edition) will help us in conducting the audit more effectively and efficiently.
All the relevant Master Circulars and other information is available in the Guidance Note.The Guidance note issued by the
ICAI is priced at Rs. 350/- is freely downloadable. The Guidance Note is improved over the years with wide varieties of
issues and guidance especially on Advances. Different study groups like Mumbai study group with 22 members , Jaipur
study group with 16 members, Delhi study group with 13 members, Two Kolkata study groups consisting of 11 and 13
members and Bengaluru study group with 11 members have contributed for the improvement of the Guidance Note with
several CCMs in the AASB Which released the Guidance Note. I am sure that with proper Audit Planning and Training
junior with senior staff in "Finacle", "Bancs" software together with Standards on Auditing, we shall strive forward in line
with the Guidance Note in conducting the Branch Statutory Audit.
MEMBERS DIARY
19-4-2017 ICAI Bhawan Study Circle Meeting ICDS - Part 2
Wednesday 6.00 pm to 8.00 pm CPE: 2 hrs. CA. Sunil Vamsi Krishna
23-4-2017 ICAI Bhawan Hlaf Day Seminar Branch Formation Day
(Sunday) 9.30 am to 1.30 pm CPE : 3 hrs. Seminar on
1. Documentation with reference to
Peer Review
2. Emerging Challenges and
Opportunities in Practice
Followed by Lunch CA. B. Shekkizar, Hyderabad
Felicitation to Senior Past Chairmen
26-4-2017 ICAI Bhawan Study Circle Meeting Will be intimated later
Wednesday 5.30 pm to 8.30 pm CPE : 2 hrs.
29-4-2017 ICAI Bhawan Full Day Seminar Chief Guest
Saturday 9.30 am to 5.00 pm CPE : 6 hrs. Shri. N. Krishnamoorty *
Seminar on Companies Registrar of Companies, Hyderabad
Act. 1. Latest updates on Campanies Act
2013
2. Secretarial compliance for Pvt Ltd
Companies
3. Borrowings and depoists under
Companies Act 2013
4. Role & Responsibility of Board of
Directors related Party Transactions
under Companies Act 2013
Speakers :
CA. Chinna Swami Ganesan, Chennai
CS. Dr. P.V.S. Jaganmohan Rao, Hyderabad
06-5-2017 ICAI Bhawan Full day Seminar Accounting Standards & Auditing Standards
Saturday 9.30 am to 5.00 pm CPE : 6 hrs. CA. S. Ramesh, Chennai
CA. R. Sundrarajan, Chennai
Date & Day Venue & Time CPE Hours Name of the Programme & Speaker
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
* Confirmation awaited
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
VAT Update CA. Ambati Chinna Gangaiah, [email protected],
Cell : 08801032969
SUPREME COURT
1. Ayyasamy vs. A. Paramasivam AC 8245-8246/16 dt 4.10.16 (2016) 10 SCC 386 - 10. 'Fraud'
is a knowing misrepresentation of the truthor concealment of a material fact to induceanother to act to his detriment. Fraud can
be of different forms and hues. Its ingredientsare an intention to deceive, use of unfairmeans, deliberate concealment of material
facts, or abuse of position of confidence.………. (Ramesh Kumar & Anr. v. Furu Ram &
Anr., (2011) 8 SCC 613.)
2. Syscon Consultants AC 2910/13 dt 19.9.16
(2016) 10 SCC 353-Once, it is found that
justice of the case on facts does not require
interference, this Court, even at the appellate
stage, is well within its discretion to stay its
hands off, as held in Taherakhatoon (D) by
Lrs. v. Salambin Mohammad (1999) 2 SCC 635
3. Imax Corporation AC 34009/13 dt 10.3.17 -
(Cause of action in India and Arbitration in
London) - High Court committed an error in
observing that the seat of arbitration itselfis not a decisive factor to exclude Part-I of
the Arbitration Act.
HIGH COURT
1. Venkateswara Electrical and General StoresWP.24957/16 dt.18-08-16 - the petitioner
admitted non-disclosure of the turnover, and
accepted their liability to pay tax thereon…..there is no justification in denying them thebenef it of input tax credit for the
corresponding purchases made by them.
2. Sri Asta Lakshmi Rice Mill WP 38708/15 dt
30.11.15 - (purchase tax on paddyproportionate to production of husk)
purchase tax levied, under Section 4(4), on
paddy should be deducted from the taxlevied on the sale of rice, as both paddy and
rice are declared goods U/s 14 of the CST
Act.
STAT - AP
Sri Raghavendra Enterprises - TA 255-56/11dt 22.2.17 It is settled law that burden inrevision lies on the revisional authority.
TELANGANA
1. Regal Fitness TA 100/16 dt 11.1.17 articles
and equipment for general physical exerciseare covered under HSN code 9506 as part of
sports equipment. ……. the impugned goods
are sports goods taxableat 4%
2. Signum Fire Protection TA 291/11 and batch
dt 17.1.17 - In the present case also we find
that the goods are brought to the site and
fixed by the appellant and not sold as
chattel……Therefore, we are of the
considered view that the impugned
transactions are Works Contracts only and
not sale.
3. Hyderabad Race Club TA 733-36 dt 18.1.17 -
'cattle' does not include horses and therefore
oats that are fed to the horses would not
come under the term 'cattle feed"
4. S.S.V. Fab Industries TA 161/16 dt 20-1-17 -
H forms can be f iled before appellate
authorities.
5. Shri Roopchaya Colour Studio TA 44/16 dt20.1.17 the work of developing, processingand printing of photographs out of either
negative rolls or in the form of CDs. or datastorage cards, there is an element of sale ofcertain goods which can be taxed under
Section 4(7) of VAT Act.
6. IVRCL TA No. 835,847/08 dt 10.2.17- heldthat the contractor is exempt from payment
of tax only if a sub contractor is a registered
dealer following Yograj Constructions Ltd.,
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
in T.A.No.65, dt 5-8-16
7. K. Hanumantha Rao TA 944/08 dt
15.2.17 (following Kakatiya CottonPressing Industries, 50 APSTJ 157)revisional authority ought not to have
exercised revision power second time
ADVANCE RULINGS
AP
Schwing Stetter A.R.Com/33/2016 dt15.3.17 (AR 6/17)self-loading mobile
concrete mixer is a machinery andliable to tax @ 5%
TELANGANA
1. Perfect Distributor A.R.Com/8/2014 dt23.2.17 (AR 3/17) - Cell Phones / Mobile
Phones", and hence are chargeable @
5% w.e.f. 30-07-2016
2. Ipog Industrial Technologies - A.R.Com/
15/2016 dt 15.3.17 (AR 5/17) "twin core
miniature control cable" falls under
Schedule V to the Act liable for the tax
14.5%.
COMMISSIONER'S CIRCULARS
Re f . N o . C C W / C S ( 1 ) / 1 2 8 / 2 0 1 5 ,
dt.17.03.17-instructions issued
Registrations in all acts.
ALLAHABAD
Kalpataru Agro Forest Enterprises -
Trade tax Revision No. 52 of 2016, dt
4-7-16 - 2016 NTN (Vol 61) 143 (All) -Purchase of the bamboo and wood and
subjecting it to process of debarking,
cutting and removing roots does notbring new commercial commodity as
after the process it remains bambooand wood as such it does not amount
to manufacture
KARNATAKA
Cognizant Technology - STRP 386/14
21.9.16 (98 VST 45) - Electronic gadgetsor mobile or drinking water incidentalto manufacture activity.
There are several types of fats, the chief ones being calledtriglycerides, cholesterol esters, and phospholipids. Theycontain fatty acids, which may be saturated, monounsaturatedor polyunsaturated.
Some polyunsaturated fatty acids are essential for humansbecause they cannot be made in our bodies. One group ofessential fatty acids comes from plant sources; these fattyacids are found in considerable quantity in polyunsaturatedmargarine and in vegetable oils. We need about 1 to 2 percent of our energy to come from this type of fatty acid,although a higher intake, up to about 10 per cent of energy,may be protective against coronary heart disease. Therequirements of another type of essential fatty acid have notbeen worked out, but they are obtained mainly from seafoodand, in a different way, seem protective against coronary heartdisease - they reduce the ‘stickiness’ of the blood
. Both kindsof essential fatty acids can lower high levels of blood fats.
Saturated fatty acids come chiefly from ruminant animals,such as sheep and cattle, and from milk and dairy productsof these animals. In the stomachs of ruminants thepolyunsaturated fatty acids that are present in fodder arebroken down to a large extent to saturated fatty acids sothat the fatty tissues of animals such as cattle are mostlysaturated. On the other hand, animals with a single stomach(monogastric) absorb the range of fatty acids, saturated andpolyunsaturated, present in the diet. Pigs and humans aresimilar in this respect.
Saturated fat increases the amount of cholesterol in blood.Monounsaturated fat does not increase the blood cholesterollevel and may decrease it (olive oil and peanut oil providemonounsaturated fat). Polyunsaturated fat decreases it.Traditional cultures that use olive oil in food preparation ora lot of groundnuts (peanuts) have little coronary heartdisease. Cholesterol in food increases the level of cholesterolin blood.
Saturated fat also increases the amount of triglyceride inthe blood. Both blood cholesterol and blood triglyceride,when elevated, increase the risk of hardening of the arteries(atherosclerosis), with consequent coronary heart disease.
Omega-3 foods are believed to help lower the risk for heartdisease due to their inflammation-reducing abilities.
Good source for omega Flaxseeds (Avisa ginjalu) , Walnuts
& Walnut Oil, Soybeans , Spinach, Fish Oil (Salmon).
OUR PERSONAL COLUMN
SATURATED FATS VsUNSATURATED FATS - OMEGA 3
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
VISAKHAPATNAM BRANCH OF SIRC OF ICAI
ONE TIME PAYMENT DELEGATE FEE (2017-18)
Registration Form
ToThe secretary,Visakhapatnam Branch of SIRC of ICAI,ICAI Bhawan,VISAKHAPATNAM -530 003
Dear Sir,
I/We have enclosed Cheque No....... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . of ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bank dated
.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . for Rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ./- in favour of VISAKHAPATNAM BRANCH OF SIRC OF ICAI,
VISAKHAPATNAM towards my/our ONE TIME DELEGATE FEE PAYMENT for CPE Seminars at Visakhapatnam Branch
for the period from 01.04.2017 to 31.03.2018.
Details of the Member/Members
S.No Name of the Member Date of M. No Mobile No. E-mail ID
Enrolment
Thanking You,
Yours Truly,
Signature
One Time Fee Structure for 2017-18Rs. 4,000 for members enrolled before 31.03.2012
Rs. 3,000 for members enrolled on or after 01.04.2012
Rs. 1,000 for members who qualified on or after May 16
Members desirious of making online payment are
requested to do the same to the following account :
ACCOUNT NAME : VISAKHAPATNAM BRANCH OF SIRC OF ICAI
ACCOUNT NO : 024510011011521
BANK NAME : ANDHRA BANK
BRANCH NAME : PITHAPURAM COLONY
IFSC CODE : ANDB0000245
Please forward the UTR No. , Name and Membership No. to the
following mail ID : [email protected]
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
History :
Finance act (no.2) 2009 has introduced the
provisions of section 206AA. It provides that the
deductee should furnish his PAN to the person
responsible for deducting the tax else the minimum
rate of TDS applicable would be 20%.
The requirement to obtain PAN is governed by the
provisions of section 139A. The section 206AA starts
with anon-obstante clause "Notwithstanding
anything contained in any other provisions of this
Act". This section also applicable in case the
deductee provides an invalid PAN or PAN not belong
to him.
So, reading together the provisions of section 139A
and 206AA one may conclude that though it is not
mandatory for a person to obtain PAN still the
provisions of higher rate of TDS referred U/S 206AA
would apply.
This section will also apply in case the deductee is
nonresident . However, if any beneficial provisions
exist in DTAA then they will have overriding effect
over the provisions of Income Tax Act, 1961 .
One issue will arise is whether to claim the
concessional rate mentioned DTAA is nonresident
should have PAN so as not to be governed by
provisions of section 206AA?
To answer this f irst look at the Judicial
pronouncements which answered this question. The
Bangalore ITAT has held that the provisions of
section 206AA will apply as it has overriding effect
over other provisions of the Act. Thus, a nonresident
whose income is chargeable to tax in India should
obtain the PAN. However, the Pune ITAT and the
Bangalore Tribunal has held that once the
provisions of DTAA are applicable section 206AA
doesn't apply.
Even the honorable Supreme Court has held that
SECTION 206AA - TWIST AND TRUNSCA. T. Ram Prasad
the provisions of DTAA with respect to the case to
which they apply would operate even if inconsistent
of the provisions of the Income Tax Act. So even
the provisions of section 206AA has overriding effect
over other provisions of the Act still they were
inapplicable in applying the DTAA.
Besides the section 90(2) provides that for granting
relief of tax or as the case maybe, avoidance of
double taxation, then, in relation to the assessee to
whom DTAA applies, the provisions of the Act shall
apply to the extent they are more beneficial to the
assessee.
Relief granted :
The FA 2013 has excluded the interest referred to
in section 194LC from the operation of provisions
of section 206AA with effect from 01-06-2013.
FA 2016 has further amended the provisions of
section 206AA (7) by extending the non-applicability
of this section in relation to any payment subject
to the conditions as may be prescribed .
Rule 37BC provides the relaxation from the
provisions of section 206AA. It mentioned that in
case of non-resident, not being a company, or a
foreign company and not having Permanent
Establishment (PE) the provisions of section 206AA
shall not apply in respect of payments of interest,
royalty, fees for technical services and payment on
transfer of any capital asset, if the deductee
furnishes the specified documents.
Latest Developments :
The Visakhapatnam ITAT held that TDS on salary
payment U/S 192 should be deducted as per
applicable rates in force after allowing basic
exemption limit and deductions towards investment
in savings etc. Unlike any other provisions of the
TDS, tax on salary can't be deducted by applying a
flat rate on gross amount. A careful study of the
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
provisions of section 206AA made it clear that it is
not automatic that a flat rate of 20 per cent shall be
applied wherever PAN is not furnished. The deductor
shall compute the tax in the manner specified under
section 206AA, by applying the rate specified under
the relevant provision of the act, or at the rate or
rates in force and then, compared to flat rate of 20
per cent to decide whichever is higher.
It further held that it is settled position of law that a
short deduction of tax at source, by itself does not
result in a legally sustainable demand under sections
201(1) and 201(1A). The taxes cannot be recovered
once again from the assessee in a situation where
the recipient of income has already paid the due
taxes on such income.
Unless, the Assessing Officer verified himself that
the recipient of income has not paid the tax on such
income and demonstrate that the rate applied by
him was in accordance with the provisions of section
206AA, the assessee cannot be held as assessee in
default under sections 201(1) and 201(1A)
Note: The CBDT circular 1/2017 dated 02-01-2017
which contains the rate of deduction of income tax
from the payment of income chargeable under the
head "Salaries" during the FY 2016-17 has mandated
the furnishing of PAN by the employee in case of
receipt of any sum or income or amount, on which
tax is deductible. If the employee fails to furnish PAN
to the deductor the provisions of section 206AA shall
apply. It further states that the deductor should
determine the tax amount in all the three conditions
and apply the higher rate of TDS. However, where
the income of the employee computed for TDS u/s
192 is below taxable limit, no tax will be deducted.
But where the income of the employee computed
for TDS u/s 192 is above taxable limit, the deductor
will calculate the average rate of income-tax based
on rates in force as provided in sec 192.
If the tax so calculated is below 20%, deduction of
tax will be made at the rate of 20% and in case the
average rate exceeds 20%, tax is to be deducted at
the average rate. Education cess @ 2% and
Secondary and Higher Education Cess @ 1% is not
to be deducted, in case the tax is deducted at 20%
u/s 206AA of the Act.
This circular has answered the concerns raised by
the Visakhapatnam ITAT (supra) to the extent of
inability of the deductor in comparing the average
rate of tax and rate mentioned in sec 206AA.
The JAIPURITAT held that on perusal of the
provisions of section 206AA, primary onus is on
the person entitled to receive income on which
tax is deductible at source to furnish his PAN and
in case such PAN is invalid or does not belong to
the said person by deeming fiction, it has been
stated that he has not furnished his PAN to the
deductor. In such a scenario, the onus shifts on the
person responsible for deducting the tax that he
shall deduct the tax at the rate specified in the
relevant provisions of the Act or at the rate of 20
per cent whichever is higher.
The BangaloreITAT held that the obligation of
deducting tax at source arises only when there is
a sum chargeable under the Act. Thus, the
provisions of TDS should be read along with the
machinery provisions of computing the tax liability
on the sum in question and there is no scope for
deduction of tax at the rate of 20 per cent as
provided under the provisions of section 206AA
when the benefit of DTAA is available.
CBDT vide notification no. 2/2017 dated 06-01-
2017 has mandated that the person who has an
account (other than time deposit and basic savings
bank deposit account) maintained with banking
company or co-operative bank to which Banking
Regulation Act, 1949 applies and has not quoted
his PAN or furnished Form no. 60 at the time of
opening or subsequently, he shall furnish PAN or
Form no. 60 to a manager or officer of a banking
company or co-operative bank, as the case may be
on or before 28-02-2017.
One question remains is that who will get the
credit of TDS in case tax has been deducted
applying the provisions of section 206AA? (Food
for thought)
APRIL, 2017
THREE DAYS SEMINAR ON GSTOrganized By: Indirect Tax Committee
Hosted By: Visakhapatnam Branch SIRC of ICAI.
Date & Time : 19th, 20th & 21st of May 2017
Venue : ICAI Bhavan, Visakhapatnam
Visakhapatnam Branch of SIRC of ICAI
DAY-1 : Friday, 19th May 2017
Timing Topics & Speakers
09.45am-10.45am Inaugural Session
Lighting of the Lamp, Welcome Address and Keynote address by Chief Guest
10.45 to 12.15pm Brief Concept of Model GST Law including Concept of CGST, SGST & IGST
CA. V. Raghuraman, Bengaluru
12.15pm-12.30pm Tea Break
12.30pm-01.30pm Levy & Composition, Exemption from Tax
CA. V. Raghuraman, Bengaluru
1.30pm-02.00pm Time of Supply of Goods & Services
CA. V. Raghuraman, Bengaluru
02.00pm-02.30pm Lunch
02.30pm-03.30pm Valuation of taxable Supply & Valuation Rules(including related case law
CA. Jatin Christopher, Bengaluru
03.30pm-04.30pm Place of supply of goods and services
CA. Jatin Christopher, Bengaluru
04.30pm-04.45pm Tea Break
04.45pm-05.45pm Tax Credit (Capital goods, Services & input) including Matching Concept
CA. Jatin Christopher, Bengaluru
DAY-2 Saturday 20th May 2017
Timing Topics & Speakers
10.00am -11.30am Brief Concept of IGST Act
CA. A. Saiprasad, Bengaluru
11.30am-11.45am Tea Break
11.45am-01.00pm JOB Work, E-Commerce Transaction Under GST
CA. A. Saiprasad, Bengaluru
01.00pm-02.00pm Lunch
02.00pm-03.30pm Important Transitional Provision
CA. S. Venkata Ramani, Bengaluru
03.30pm-04.45pm � Demand and recovery
� Offences and penalties
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
Members Covered by One time payment scheme Rs.1200/- Rs.1700/-
Members Not covered by one time payment Scheme Rs.2000/- Rs. 2500/-
For Non Members Rs. 3000/- * Rs. 3500/-*
Delegate FeesPayments received
upto 13th May, 2017
Payments received
after 13th May, 2017
(Rs. 500/- Extra)
We request all the members to kindly register well in advance atleast one week before the conference in view
of expected large participation of delegates and to organise the venue, food and background material.
* Service Tax extra
Limited Seats, registration will be on first come-first serve basis for any further information / clarification
please contact : Chairman : CA. B. Venkata Rao, 92466 24286, Sectreaty : CA. M. Chalapathy Rao, 9849609836
� Prosecution and compounding of offences
CA. S. Venkata Ramani, Bengaluru
04.45pm-05.00pm Tea Break
05.00pm-05.30pm Payments & Refund Process
CA. S. Venkata Ramani, Bengaluru
DAY-3 Sunday 21st May 2017
Timing Topics & Speakers
10.00am -11.30am Registrations: Law & Business Processes
Filing of Returns, matching of Input Tax Credit
CA. Ganesh Prabhu, Chennai
11.30am-11.45am Tea Break
11.45am-01.00pm Audit (Section 142 & 150) & Reconciliation Statement (Section 30)
CA. Ganesh Prabhu, Chennai
01:00 p.m. - 01:45 p.m. Lunch
01.45pm-03.15pm � Assessment, Advance Ruling and Settlement
� Appeals and revision
CA. V. S. Sudhir, Hyderabad
03.15pm-04.15pm Miscellaneous Provision Section 116 to 139
CA. V. S. Sudhir, Hyderabad
04.15pm-04.30pm Tea Break
04.30pm-05.15pm Professional Opportunity under GST
CA. V. S. Sudhir, Hyderabad
Members are requested to do online payment to the following account :
ACCOUNT NAME : VISAKHAPATNAM BRANCH OF SIRC OF ICAI
ACCOUNT NO : 024510011011521 IFSC CODE : ANDB0000245
BANK NAME : ANDHRA BANK BRANCH NAME : PITHAPURAM COLONY
Please forward the UTR No., Name and Membership No. to the following mail ID : [email protected] after making the payment.
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
PROGRAMME
Visakhapatnam Branch of
Southern India Regional Council of
The Institute of Chartered Accountants of India
Cordially invites you for the
40TH BRANCH FORMATION DAY
On Sunday, 23rd April 2017 at 10.00 am
Organised by Visakhapatnam Branch of SRIC of ICAI
09.40 am-09.55 am Fellowship with Tea and Snacks
10.00 am - 11.00 am Inaugural Session
Lighting of Lamp, Opening Remarks, Keynote Address by Chief Guest
Prof. G. Nageswara Rao, Vice-Chancellor, Andhra Univeristy
11.00am-12.30pm Technical Session- 1
Documentation with reference to Peer Review
CA. B. Sekkizhar, Hyderabad
12.30pm-01.00pm Felicitation to Three Past Chairmen of the Branch
CA. P. V. KALIPRASADA RAO
CA. SRIPADA SADASIVA
CA. P. RAMAKRISHNA
01.00pm-02.00pm Technical Session -2
Emerging Challenges and Opportunities in Practice
CA. B. Sekkizhar, Hyderabad
02.00pm Lunch
CA. B. Venkata RaoChairman
CA. M. Chalapathy RaoSecretary
APRIL, 2017
WE CONGRATULATE
CA. Ramakrishna S
Visakhapatnam
Member, Committee on Indirect Taxes
Standing Committee
Member from our Branch who has been
Coopted to the Committee constituted
by SIRC
Visakhapatnam Branch of SIRC of ICAI
Visakhapatnam Branch of SIRC of ICAID. No. 9-36-22/2, Pithapuram Colony, Visakhapatnam -530 003 Ph : 2755019, Cell : 92466 24286
e-mail : [email protected] Website : www.icaivisakhapatnam.org
For further details and registration please contact
Visakhapatnam Branch of SIRC of ICAI
invites
all the CPT students to join
Renowned Faculty Members
Conveninent timings to all
2.00 pm to 8.30 pm
Web based
Two Months
CPT Coaching Classes
Organised by SIRC of ICAI
from 6th April 2017
Golden Opportunity to
Students !!
Fee
Rs. 2500/-
IPCC MOCK TEST - MAY 2017FEE : Rs. 100 PER SUBJECT
TIME : 10.00 AM TO 01.00 PM
SR.NO PAPER DATE
1 ACCOUNTS 05.04.17
2 LAW 06.04.17
3 COSTING & FM 07.04.17
4 DT & IDT 08.04.17
5 ADV ACCOUNTS 09.04.17
6 AUDITING 10.04.17
7 IT & SM 11.04.17
FINAL MOCK TEST - MAY 2017FEE : Rs. 100 PER SUBJECT
TIME : 10.00 AM TO 01.00 PM
SR.NO PAPER DATE
1 FIN REPORTING 05.04.17
2 STRATEGIC FIN MANAGEMENT 06.04.17
3 ADV AUDITING & PRO ETHICS 07.04.17
4 CORPORATE AND ALLIED LAWS 08.04.17
5 ADV MANAGEMENT ACCOUNTS 09.04.17
6 ISCA 10.04.17
7 DIRECT TAX 11.04.17
8 INDIRECT TAX 12.04.17
We invite the interested members to give their willingness to value
the Mock Test answer sheets of IPCC and Final Examinations conducted
at the Visakhapatnam Branch. Please refer detailed mail.
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
1. Members are requested to visit the premises in Krishna Nagar Unit - 2 (Old Pallavi, Manipal Hospital)
to be in fasting from 12 midnight till you reach the Lab.
2. Have breakfast after giving blood sample and attend for other tests immediately thereafter. The
tests may last till noon.
3. Doctor consultation can be had in the evening there by one full day may be earmarked for this
purpose. The Mammography, Pap Smear tests will be done at MyCure Hospitals, Near Jagadamba
Premises Unit - 1.
4. The scheme is negotiated for a period from 23.02.2017 to 25.04.2017.
5. The contact numbers are 9032996139, 0891-3044545. For further details, please contact
Mr. R. Ramachandra Rao of MyCure Hosptials.
Haemogram
Lipid Profile
Liver Function test (LFT)
Renal Function test (RFT)
Blood Grouping and RH typing
X - Ray Chest
ECG
2D echo / (TMT on doctors
advise)
Ultrasound abdomen screening
Complete Urine Examination
Thyroid Profile
HBs Ag
Mammography (above 40 yrs)
Pap Smear
Physician Consultation
Cardiologist Consultation
Audiometry
Ophthalmology
screening
Health Check Plan for CA Family MembersThe Managing Committee is pleased to announce its members of the Branch that Health Check Package was
negotiated with Mycure Hospitals for a discounted price of Rs.2000/- per person covering the following Tests
Only Rs.2000/-
Best Bargain
Address :`
Unit 1: # 18-1-3,
KGH Down, Maharanipet,
Jagadamba Junction,
Visakhapatnam - 530002
Unit 2 : # 15-2-9,
Old Pallavi Hospital,
Gokhle Road,
Maharanipet,
Visakhapatnam - 530002
It is the wish of the Managing Committee that
every member may go for the Health Check
once a year. Lack of exercises, odd working
hours, stress etc., are causing potential health
problems and this health check package helps
in detecting and preempting the onset of a
disease and reassurance. This helps in
increased awareness about healthy life style,
healthy diet and exercises.
Wish you Healthy Life
Managing Committee
APRIL, 2017
Visakhapatnam Branch of SIRC of ICAI
SEMINAR ON THE EVE OF INTERNATIONAL WOMEN’S DAY ON 8TH MARCH 2017
Dr. R. Sashi PrabhaChief Guest
Smt. Soumya Pandey Jain, IRS, Asst. Commr. - Range 3Guest of Honor
CA. C. Padmaja
CA. G. Bhavani
CA. M. Rukmani Devi
BANK AUDIT SEMINAR ON 11TH MARCH, 2017
STUDY CIRLCE MEETING - GST ON 15TH MARCH, 2017 STUDY CIRLCE MEETING - ICDS ON 22ND MARCH, 2017
SEMINAR ON BANK BRANCH AUDIT ON 18TH MARCH, 2017
SEMINAR ON HOW TO FACE CA EXAMS ON 4TH MARCH, 2017
Sri C M Minocha
DGM, Union Bank
CA. V. Chandrasekhar CA. D. Premnath
CA. B.V. Rao receiving memento
CA. P.V.S.P. Kumar Prof. Y. Goutam Rao
Published by CA. B. Venkata Rao, Chairman on behalf of Visakhapatnam Branch of SIRC of The Institute of Chartered Accountants of India, Visakhapatnam and
Desgined at Maruthi Printers, D.No.30-5-17, Krishna Gardens, Dabagardens, Visakhapatnam - 20, Cell : 92469 32859, email : [email protected] and
Published for Visakhapatnam Branch of SIRC of ICAI, D.No.9-36-22/2, Pithapuram Colony, Visakhapatnam - 530 003, Ph : 0891-2755019, email :
[email protected] Editor : CA. K. Ramachandra Rao Visakhapatnam Branch of SIRC of ICAI
The Views expressed by contributors in this Newsletter do not necessarily reflect the opinion of the Branch or the Institute
SICASA : SEMINAR ON BANK AUDIT ON 25TH MARCH, 2017
From Left to Right : B. Geetha, Treasurer, SICASA, K. Rama Ahlad,
Vice Chairman, SICASA, CA. K. C.S. Guru Prasad, Resource Person,
CA. V. Ram Prasad, Chairman, SICASA,, CA. K. Ramachandra Rao,
Resource Person, M. Lalitha, Secretary, SICASA