Respected Professional Colleague, This is my exquisite delight to address you for the last time as chairman of Jaipur branch of CIRC of ICAI. At the outset I thank all the management committee members for imposing trust on me a year back and giving me opportunity to serve this prestigious Jaipur branch. I acknowledge and appreciate my predecessors, all past Chairman's, past management committee members, all my seniors, my central council members, regional council members, ICAI Jaipur branch staff, my friends and proud students volunteers for their valuable contributions during this last one year and uprising the Jaipur branch to this level. I will fail in my duty without acknowledging thanks to my family specially my late Amma and Babuji who will always remain in my heart and above all my parents, my wife Vaishali, my children, my brothers, sisters and other family members who have been motivational force behind my life and who have missed my presence at home in last one year. I wish all the best to the upcoming office bearers to take this pious body to new heights. I will always be available to serve this profession, the institute and members in large to the best of my knowledge, vision and experience. I wish you and your family a very colorful and joyous holy festival. Keep learning!. keep sharing!. and be United. Jai Hind, Jai ICAI. E-mail: [email protected]Chairman, Jaipur Branch of CIRC of ICAI From the Desk of Chairman
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From the Desk of Chairman - Jaipur Branch of CIRC of The … · 2019-02-15 · Ankur Gupta 4461044624 CA. Anu Shah Jain 8875000245 CA. Anuj Sharma 9828152341 CA. Anurag Maheshwari
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Respected Professional Colleague,
This is my exquisite delight to address you for the
last time as chairman of Jaipur branch of CIRC of ICAI.
At the outset I thank all the management committee
members for imposing trust on me a year back and
giving me opportunity to serve this prestigious Jaipur
branch.
I acknowledge and appreciate my predecessors, all
past Chairman's, past management committee
members, all my seniors, my central council members,
regional council members, ICAI Jaipur branch staff, my
friends and proud students volunteers for their
valuable contributions during this last one year and
uprising the Jaipur branch to this level.
I will fail in my duty without acknowledging thanks to
my family specially my late Amma and Babuji who will
always remain in my heart and above all my parents,
my wife Vaishali, my children, my brothers, sisters and
other family members who have been motivational force behind my life and who
have missed my presence at home in last one year.
I wish all the best to the upcoming office bearers to take this pious body to new
heights. I will always be available to serve this profession, the institute and
members in large to the best of my knowledge, vision and experience.
I wish you and your family a very colorful and joyous holy festival.
I would like to convey my sincere gratitude to all the
members of the Branch and the Managing Committee for
imposing faith in me and giving me an opportunity to
serve the Branch as Secretary.
Dear Members, your words of appreciation and
encouragement from time to time has been the source
of inspiration and driving force for me in running the
branch, keeping up with the pace set by my
predecessors.
We are glad to share that Jaipur Branch has conducted various CPE Programs and Professional Social Responsibility Activity for Members, Students and Public at large.
Jaipur branch is successful because of the unstinted support and guidance of our predecessors and the dedicated resource persons of Jaipur Branch. I strongly believe that the resource persons/speakers are the backbone of our Branch in conducting programs, enabling our Members to be abreast with the various amendments continuously taking place in the areas of our services. Our Institute is a partner in nation building and I am sure that this Branch of the Institute shall be fulfilling and exhibiting its Excellency to prove so. I am fortunate to commence my tenure in March 2018 with the blessings and the best wishes of all my professional friends gave me the strength to put my thoughts into successful actions for the benefit of members and students in CA profession.
Deputy Editor CA. Ashwani Mundra 9828225521 CA. Kamal Jain 9782555151 CA. Vijay Kumar Agarwal 9982723122
Members CA. Abhishek Maru 9829291595 CA. Abhishek Singhvi 9414210601 CA. Ajay Gaur 9982426699 CA. Akash Bargoti 9983332663 CA. Akash Jain 9460671198 CA. Aklak Husain 9928902121 CA. Amit Agarwal 9414062551 CA. Amit Dadheech 8952086340 CA. Amit Kedia 9414046121 CA. Amit Kumar Jain 9414321489 CA. Ankit Vijay 9783248794 CA. Ankur Gupta 4461044624 CA. Anu Shah Jain 8875000245 CA. Anuj Sharma 9828152341 CA. Anurag Maheshwari 9829285091 CA. Anushri Gupta 9414779750 CA. Ashok Saini 9875139001 CA. Ashutosh Agarwal 9828400386 CA. B. L. Chaudhary 9351320922 CA. Badri Naryan Maheshwari 9829109903 CA. Balkishan 9352242394 CA. Deepak Jain 9461551545 CA. Devendra Mittal 9829250009 CA. Dheeraj Borad 9829068558 CA. Gaurav Rawat 9571008844 CA. Govind Khandelwal 9799128000 CA. Harsha Ramnani 9001561467 CA. Jairaj Bothra 9660018715 CA. Kamlesh Chippa 9314231738 CA. Kartik Bapna 9982914577 CA. Kartik Khandelwal 9413490030 CA. Madhur Gupta 9983035000 CA. Mahendra Modi 9352638180 CA. Manish Jain 9782238095 CA. Manoj Agarwal 9602266000 CA. Milan Pareek 9460153100 CA. Mohit Patni 7665435856 CA. Naman Shrimal 9636111444 CA. Naresh Motwani 9828401009 CA. Naveen Sharma 9828319442 CA. Nitin Sharma 9829266636 CA. Om Rupani 9928559499 CA. Pankaj Jhanwar 9414770518 CA. Poonam Agarwal 7568414141 CA. Pramod Kanda 9829184900 CA. Priyanka Sharma 9983311255 CA. Pulkit Kapoor 9982360194 CA. Pushpendra Agarwal 9829178778 CA. Rajkumar Khandelwal 9414304422
CA. Rakesh Kabra 9828052448 CA. Rakesh Kothari 9828504428 CA. Ranjan Mehta 9672372075 CA. Raman Sharma 9887809533 CA. Ravi Mamodia 9828091785 CA. Rekha Maheshwari 9529927802 CA. Richa Pandya 9811195641 CA. Rohit Maheshwari 9829067244 CA. Ruchita Dhoot 9829671929 CA. Sachin Jain 9829393505 CA. Saurabh Agarwal 9828169924 CA. Saurabh Agarwal 7737745011 CA. Shalini Rajvanshi 9314668454 CA. Shamshudin Khan 9413559669 CA. Sourabh Baheti 9784668867 CA. Sumit Jain 8875072355 CA. Varun Bansal 9829888812 CA. Vijay Agarwal 9829391600 CA. Vijay Kumar Gupta 9829074212 CA. Vikesh Jain 9928493838 CA. Vinod Agarwal 9414070269 CA. Vipin Singhal 9829466657 CA. Vishnu Agarwal 9829867493 CA. Vivek Chattar 9314503966
Advisors CA. Anil Mathur CA. Rakesh Gupta CA. B K Mathur CA. Ram Manohar CA. Brijesh Maheshwari CA. Rameshwar Prasad Vijay CA. C. L. Yadav CA. Ratan Goyal CA. D. R. Mohnot CA. Ravindra Raniwala CA. Dilip Malpani CA. S S Dhakad CA. G. C. Jain CA. S. K. Goyal CA. Ganesh Bangar CA. S. L. Gangwal CA. H M Singhvi CA. Sanjay Kumar Shah CA. J K Agarwal CA. Sanjay Sharda CA. Jagdish Somani CA. Satish Gupta CA. L. D. Sharma CA. Sharad Kabra CA. Manish Suri CA. Shailendra Agarwal CA. Manoj Bhansali CA. Sunil Agrawal CA. Narendra Moolchandani CA. Sunil Goyal CA. Nitin Vyas CA. Suresh Garg CA. O. P. Agarwal CA. Ummed Mal Jain CA. P C Modi CA. Vijay Garg CA. P C Parwal CA. Vijendra Bangar CA. P P Pareek CA. Vikas Jain CA. Pushpendra Khandelwal CA. Vikas Rajvanshi CA. R. A. Sharma CA. Vimal Chopra CA. R. K. Sharma CA. Vipin Gangwal CA. Rajeev Sogani
Managing Committee Chairman CA Abhishek Sharma Vice Chairman CA Ankit Jain Secretary CA Sanjay Kumar Maheshwari Treasurer CA Sushil Kumar Jalan CICASA Chairman CA Dinesh Jain YMEC Chairman CA Shishir Agarwal Member CA Nikhilesh Kataria Member CA Shiv Shanker Gupta Central Council Member CA Shyam Lal Agarwal Central Council Member CA Prakash Sharma Regional Council Member & Vice Chairman, CIRC CA Rohit Ruwatia Agarwal Regional Council Member & Secretary, CIRC CA Pramod Boob Regional Council Member CA Gautam Sharma
Editorial Board
Published by : Sh. S. C. Chaturvedi, Administrative Officer on behalf of The Institute of Chartered Accountant of India JAIPUR (CIRC) ICAI
May God paint the canvas of your life with the colours of joy, love, happiness, prosperity, good health and success.
Albert Einstein’s quote- “Education is what remains after one has forgotten what one has learned in school” is startling. It suggests that greater learning comes from experiencing life. Our ‘relevant education’ comes from our behaviours that determine our utterances; interaction and deeds. If one consciously controls living, it leads to a higher degree of learning-supports the purpose of living. Living is based on a universal principle-that for every action, there is an equal and opposite reaction. Simply stated-every good deed has a better return-happiness shared earns grater happiness. We are citizen of the admirer’s world. We talk about others. The day starts as we refer to others. You read a newspaper and you are connected to others. In a meeting others are talked about and you get involved. That’s fine. It is good to emulate the good by others. But we can’t end up that way. We must transition and belong to – citizen of the admired world. The large world of opportunity needs us. We are blessed to belong to a large organization. It is for us to latch on. We need to focus our abilities to go further than self, beyond our limited zones. Every day is also an opportunity. Every today is great value and an investment for the future. This year has been very special for me as the editor of jaipur branch news letter under the leadership of our dynamic and energetic Chairman CA Abhishek Sharma and our hard working, charismatic Secretary CA Sanjay Kr. Maheshwari, my heartfelt thanks to both of them for entrusting this responsibility and giving me this opportunity. I would be falling in my duty without thanking to my extremely talented friend CA Pramod Kr Boob, Regional Council Member, CIRC who is always available there to guide me and to my Joint editor CA Anil Yadav. I express my special gratitude to all my professional colleagues who provided articles to make our newsletter successful. Now it’s time to say Goodbye.
1. Half Day Seminar on Investor Awareness & Issues under Companies Act-2013 (06.10.17)
The Jaipur Branch organized a Half Day Seminar on Investor Awareness & Issues under Companies Act-2013 on 06.10.2017 at ICAI Bhawan. CA Anil Mathur, CA B K Sharma & Sh. Amol Shinde, Dy. ROC-Rajasthan were the eminent speakers of the programme. CA B K Sharma delivered the lecture on recent amendments in Companies Act-2013, CA. Anil Mathur delivered the lecture on CARO amendments & Sh. Amol Shinde, Dy. ROC-Rajasthan delivered the lecture on Investor Awareness. CA Ashutosh Agarwal was the convenor of the seminar.
2. Two Days Jaipur Branch Conference on “Emerging Challenges & Changing Dimension” (25-26 October 2017)
Jaipur Branch of CIRC of ICAI organised & hosted Two Days Jaipur Branch Conference on the Theme “Emerging Challenges & Changing Dimension” for CA members on 25th & 26th October 2017 at Birla Auditorium, Jaipur. There were five technical sessions. CA. Abhishek Sharma, Chairman Jaipur Branch & CA. Ankit Jain, Vice Chairman, CA. Sanjay Kumar Maheshwari, Secretary, CA. Dinesh Kumar Jain, Chairman CICASA, CA. Nikhilesh kataria, Managing Committee Member, CA. Shiv Shanker Gupta, Managing Committee Member and other senior members inaugurated the conference by lighting the lamp.
25th October 2017 First Technical Session In this session CA. Puneet Agrawal, Delhi was the eminint speaker. In this Session CA. Ankit Jain, Vice Chairman Jaipur Branch presented his welcome address and CA. Sanjay Kumar Maheshwari, Secretary Jaipur Branch presented his vote of thanks. CA. Puneet Agrawal, Delhi delivered the lecture on GST-Specific issues related to Place of Supply & Input Tax Credit with Q/A session. In this session CA. Ram Avtar Sharma was the session Chairman & CA. Jatin Harjai was the key note Speaker. After that a panel discussion was held. In this panel CA. Natwar Sarda, CA. Ranjan Mehta, CA. Rahul Lakhwani, CA. Puneet Agrawal, CA. Jatin Harjai & CA. Ram Avtar Sharma were the speakers. Second Technical Session In this session CA. Anil Sharma, Delhi was the eminent speaker. CA. Sushil Kumar Jalan, Treasurer-Jaipur Branch presented his welcome address. CA. Nikhilesh Kataria, Managing Committee Member-Jaipur Branch presented his vote of thanks CA. Anil Sharma, Delhi delivered the lecture on Current Issues & Recent amendments under Companies Act-2013. In this session CA. Vimal Chopra was the key note speaker & CA. Anil Mathur was the session Chairman.
Third Technical Session In this session CA Gaurav Agrawal, Noida was the eminent speaker. In this Session CA. Chetan Sharma presented his welcome address. CA. Gaurav Agrawal, Noida delivered the lecture on Practical understanding of RERA alongwith a Panel discussions. In this session CA. Sanjay Ghiya was the session Chairman. After that a panel discussion was held. In this panel CA. Abhishek Mishra, CA. Hitesh Dhanuka, CA. Gaurav Agrawal, CA. Sanjnay Ghiya were the speakers.CA. Himanshu Goyal was the moderator of the session.
26th October 2017
Fourth Technical Session
In this session CA. (Dr.) Girish Ahuja, Delhi was the eminent speaker. CA. Pramod Kumar Boob, Regional Council Member-CIRC presented his welcome address. CA. (Dr.) Girish Ahuja, Delhi delivered the lecture on Specific issues related to Income Tax -Benami Property Transactions, Cash Transactions and Specific Issues related to Tax Audit & ICDS. In this Session CA. P C Parwal was the Key Note Speaker & CA. H M Singhvi was the Session Chairman.
Fifth Technical Session
In this session CA. Avinash Poddar, Surat was the eminent speaker. CA. Shishir Agrawal, Convenor YMEG & Managing Committee Member Jaipur Branch presented his welcome address. CA Avinash Poddar, Surat delivered the lecture on GST- Issues related to Reverse Charge, Exports & transitional provisions along with Q/A session. In this Session CA. Yashasvi Sharma was the Key Note Speaker & CA. Sunil Bhargava was the session Chairman. After that a panel discussion was held. In this panel CA. Virendra parwal, CA. Mukesh Khandelwal, CA. Yash Dhadda, CA. Ankit Totuka, CA. Yashasvi Sharma & CA. Sunil Bhargava & CA. Avinash Poddar were the speakers.
3. Visit of Jaipur Branch By CA. Naveen Sharma, Chairman Dubai Chepter (30.10.17)
The ICAI-Jaipur Branch visited by CA. Naveen Sharma, Chairman Dubai Chapter on 30.10.2017. Jaipur Branch organized a Felicitation programme for him. CA. Abhishek Sharma, Chairman-Jaipur Branch & CA. Sanjay Kumar Maheshwari, Secretary-Jaipur Branch felicitated to CA. Naveen Sharma by presenting Bouquet & Memento.
BRANCH ACTIVITY DURING THE MONTH OF NOVEMBER -2017
1. Deepawali Sneh Milan 2017 (5.11.2017)
The Jaipur Branch organized Deepawali Sneh Milan 2017 at
the B-5 Back Lawn, C-Scheme, Jaipur on 5.11.17 for CA
members with their families and meritorious students of
IPCC and CA Final Nov. 2016 & May 2017 examinations.
Hon’ble Shri Ram Charan Bohra, Member of Parliament,
Jaipur was the Chief Guest, Shri Ashok Lahoti, Mayor-Jaipur
& Shri Vikas Jain, Chairman-Sankalp Group were the Guest
of Honour. CA. Shyam Lal Agarwal, Central Council
Member-ICAI & CA. Prakash Sharma, Central Council
Member-ICAI, CA. Gautam Sharma, Treasurer-CIRC, CA.
Abhishek Sharma, Chairman-Jaipur Branch, CA. Sanjay
Kumar Maheshwari, Secretary-Jaipur Branch and members
of Managing Committee were present. A large number of
CA members and their families participated. 29 meritorious
students were honoured by presenting mementoes. The
programme was followed by Dinner in the end.
2. World / National Commerce Education (10.11.2017)
Career Counselling Committee of ICAI organized World /
National Commerce Education Day and Jaipur Branch
hosted the same. In this occasion a carrer counselling
programme was arranged at Bright Future Senior
Secondary School Nirman Nagar, Brijlalpura, Jaipur for 11-
12 commerce students. Approx 120 students participated in
this programme. CA. Ankit Jain, Vice Chairman Jaipur
Branch addressed the students during the Career
Counselling Programme.
3. Half Day Awarness Programme on GST for exclusively
Chartered Accountants working in Jaipur Vidyut Vitran
Nigam Limited (JVVNL) (09.11.17)
The Jaipur Branch organized a half day awareness
programme on GST on 09.11.2017 exclusively for Chartered
Accountants workingin JVVNL at ICAI Bhawan, Jaipur. CA.
Abhishek Sharma, Chairman-Jaipur Branch, CA Shishir
Agrawal, convenor YMEG & Managing Committee Member
inaugurated the GST awareness programme by lighting the
lamp. CA Ranjan Mehta was the eminent speaker of the
programme. CA Anil Kumar Yadav was the convenor of the
programme.
4. S C Meeting on Annual Filing of Companies & LLP
(11.11.2017)
The Jaipur Branch organized a SC Meeting on annual filing
of companies & LLP on 11.11.2017 at ICAI Bhawan. CS
Jitendra Mathur was the eminent speaker. CS Jitendra
Mathur delivered the lecture on above mentioned subject.
CA Manan Jain was the convenor of the programme.
5. S C Meeting on Brainstorming inder GST (14.11.2017)
The Jaipur Branch organized a SC Meeting on Brainstorming
under GST on 14.11.2017 at ICAI Bhawan. CA Yash Dhadda
was the eminent speaker. Shri O P Mittal (FCA), Member
Advisory Group to Law Review Committee of GST Council,
Govt. of India was also presented during the programme for
taking suggestions on various proposed amendments in
GST laws. CA Yash Dhadda delivered the lecture on brief
Sinha, Zonal Addl. Director General of Foreign Trade, New
Delhi & Sh. Virendra Singh, Joint Director General of Foreign
Trade, Jaipur inaugurated the programme by lighting the
lamp. Ms. Vasundhara Sinha, Zonal Addl. Director General
of Foreign Trade, New Delhi delivered the lecture on
Overview of FTP. Sh. Virendra Singh, Jt.DGFT, Jaipur deliver
the lecture on FTP/HBoP: Export Promotion Measures. Sh.
Satish Raina, I/C {EDI} deliver the lecture on Brief on
Digitisation in DGFT. CA Chetan Sharma was the convenor
of the programme
BRANCH ACTIVITY DURING THE MONTH OF DECEMBER-2017
1. 01. ICAI JAIPUR PREMIER LEAGUE - 2017 (T-6 CRICKET TOURNAMENT FOR CA)
(2nd
& 3rd
December, 2017)
Jaipur Branch of CIRC of ICAI organised ICAI JAIPUR PREMIER LEAGUE–2017, T-6 CRICKET TOURNAMENT FOR CA on 2nd
& 3rd
December, 2017 at Skyfut, Orbit Mall, Ajmer Road, Jaipur as per the schedule mentioned below:
Group Team Group Team Group Team Group Team Group Team
A1
ICAI JAIPUR
VICTORIOUS
PROFESSIONALS
B1 ICAI JAIPUR
"7 STARS" C1
ICAI
JAIPUR
STRIKERS
D1
ICAI
JAIPUR
LIONS
E1
ICAI JAIPUR
7
WONDERS
A2 ICAI JAIPUR
CENTRAL B2
ICAI JAIPUR
INVINCIBLES C2
ICAI
JAIPUR
ROYAL
STRIKERS
D2
ICAI
JAIPUR-
TROOPERS
E2 ICAI JAIPUR
DYNAMITES
A3 ICAI JAIPUR
SMASHERS B3
ICAI JAIPUR
JAGUARS C3
ICAI
JAIPUR
CHARGERS
D3
ICAI
JAIPUR
ROYALS
E3
ICAI JAIPUR
RNGC
WARRIORS
In this tournament 15 teams were participated and ICAI Jaipur Invincibles was awareded with the Trophy. ICAI Jaipur Lions team was Runner UP.
Awards
Winner : ICAI Jaipur Invincibles Runners up : ICAI Jaipur LIons Man of the Series : Shivanshu Bhargav Best Batsman : Sanjay Chandani Best Bowler : Saurabh Baheti Best Fielder : Manan Jain CA. Shyam Lal Agarwal, CCM-ICAI, CA. Prakash Sharma, CCM-ICAI, CA. Abhishek Sharma, Chairman-Jaipur Branch and other Managing Committee members Jaipur Branch inaugurated the Cricket league by lighting the lamp. CA. Rohit Ruwatia Agarwal, RCM, CIRC was the chief coordinator & CA. Shishir Agarwal, MCM, Jaipur Branch was the chief convoner of the tournament. CA. Anil Kumar Yadav, CA. Ashutosh Agarwal, CA. Ayush Sanghi, CA. Mohit Patni, CA. Naveen Sharma, CA. Ravi Vijayvergia, CA. Durgesh Vijayvargiya and CA. Shyam Maheshwari were the convenors of this tournament.
2. Visit of Jaipur Branch By CA. Mukesh Singh Kushwah, CCM
& Chairman CCBMP-ICAI and CA. Madhukar Narayan
Hiregange, Council Member-ICAI (5.12.17)
The ICAI-Jaipur Branch visited by CA. Mukesh Singh
Kushwah, CCM & Chairman CCBMP-ICAI and CA. Madhukar
Narayan Hiregange, Council Member-ICAI on 05.12.2017.
Jaipur Branch organized a Felicitation programme for him.
CA. Abhishek Sharma, Chairman-Jaipur Branch & CA. Sanjay
Kumar Maheshwari, Secretary-Jaipur Branch felicitated to
CA. Mukesh Singh Kushwah, CCM & Chairman CCBMP-ICAI
and CA. Madhukar Narayan Hiregange, Council Member-
ICAI by presenting Bouquet.
3. S C Meeting on Practical Aspects of Accounting Standards
and Standards on Auditing with reference to Report of
Quality Review Board (09.12.2017)
The Jaipur Branch organized a SC Meeting on Practical
Aspects of Accounting Standards and Standards on Auditing
with reference to Report of Quality Review Board on
09.12.2017 at ICAI Bhawan. CA Bhupender Mantri was the
eminent speaker. CA Dinesh Kumar Jain, Chairman CICASA
Jaipur Branch was the convenor of the programme.
4. Full Day Seminar for Young CA Entrepreneur’s :- “Practice,
Every part in the body is important but mind controls everything. Likewise, when we talk about finance every area is important but FP&A is above all.
The importance of this function increases even more due to the dynamic and complex economic scenario. No enterprise can think of survival for a long run unless it has a comprehensive and robust FP&A department. It is just not a matter of choice today but a need to survive. FP&A can’t reduce the uncertainties associated with any business but it can empower to deal with those uncertainties and even to convert the risk into edge gaining opportunities. Without it, decision makers depend on intuition and good luck.
FP&A also known as management reporting as it is for the internal use of the company. This function not only helps the company to decide its own future but also in providing the tools in achieving it. Today every decision of CFO, CEO and BOD is supported by FP&A outcomes.
Today every company has a full-fledged FP&A team dwelled mainly with Chartered accountants. These professional analyze both quantitative and qualitative aspects of a company in order to evaluate the company’s progress toward achieving its goals and to map out future goals and plans.
This function starts with long term planning which later on converted into short term forecast.
Once it is done a continuous comparison is going between plan and actual numbers. CAs have to dive into the details of each variance to report it top management. FP&A cover all financial statement –Balance sheet, P&L, Cash flows etc.
To develop for this role one, have to have deep understanding of not only the account but the complete business model. Student are advised to develop a habit of understanding not only the financial records of the clients during their Articleship but the complete business models.
It typically takes about three to five years to develop FP&A mindset. This segment is providing ample employment opportunities to Chartered accounts both in India and abroad.
Think of the time where you will have the answer of all the what and Why of the company but for this one has to develop a dynamic mindset and high degree of discipline because volatility, the exponential rate of change and the rise of significant risk demand it.
This is a subject that one has to practice over the years to become a well versed. Students are advised to develop the below skills if they want to enter in this value creation activity.
Ans. Mr. Manish can very well claim such expenditure as :-
I. No cash payment in excess of Rs. 10000/- made in a single day. The limit here is for a sum more than Rs.
10000/-; Thus Rs. 10000/- payment in cash will not attract disallowance u/s 40A(3) .
II. Although the payments are made in respect of single transaction and aggregate of such payment also
exceeding Rs. 10000/- but disallowance u/s 40A(3) will not be attracted as the cash payment is checked
on two checklist.
(a) on a Single Day
(b) to a Single Party
Here although the payment in respect of Invoice
exceeds Rs. 10000.00 but of the payments made in a
day exceeds Rs. 10000.00 . Transaction wise
disallowance is not applicable here and thus the same
doesn’t attract any disallowance u/s 40A(3) in the
given example.
There might be the cases where the assessee follows
the mercantile system of accounting in which he
used to claim the expenditure on due basis and
payment for the same is made in subsequent
assessment year in cash in excess of limit prescribed u/s
40A (3) of IT Act. In order to overcome such
condition, Govt. introduced Sec 40A(3A) of the Income
Tax Act, 1961.
Sec. 40A(3A) provides that if the assessee has claimed a
deduction in respect of an expenditure in any of
earlier years and payment for the same is made in
subsequent years in excess of Rs. 10000/-through a
mode other than by an A/c. payee cheque, A/c payee
bank draft or electronic clearing of banking system, the
payment so made shall be deemed to be the income of
the payee and will be added to the Income of assessee
during the A/Y in which such payment is made by mode
other than modes prescribed hereunder.
Thus, expenditure once allowed on due basis shall be
considered as Income in subsequent year if the
payment for the same is made in contravention of Sec.
40A(3) of IT Act, 1961.
Qus. The tax payee has claimed an expenditure of Rs. 25000/- during the AssessmentYear 2017-18 and discontinued
the business w.e.f AY 2018-19. The Payment in respect of such expenditure made by assessee through cash
during the AY 2018-19. Apply Sec. 40A(3A).
Ans. As the assessee has already discontinued the business so in my opinion if the assessee is not filing the ROI
for A/Y 2018-19, Sec. 40A(3A) will not attract here.
Qus. Assessee claimed as expenditure of Rs. 20000/- during the Assessment Year 2017-18. Payment for the same
made in A/Y 2018-19 as under :-
A/c Payee cheque - 9000.00
Cash - 11000.00
Total - 20000.00
Apply Sec. 40A(3), considering the fact the limit u/s 40A(3) was Rs. 20000/- for Assessment Year 2017-18 and for
Assessment Year 2018-19 it is of Rs. 10000/-.
Ans. As Sec 40A(3) will attract at the time of payment, so although the limit was Rs. 20000/- for A/Y 2017-18, but
since the payment is made in A/Y 2018-19, during which limit of cash payment was of Rs. 10000/- only. Here
assessee has made cash payment of Rs. 11000/- i.e. in excess of the amount mentioned u/s 40A(3). So this Rs. 11000/-
will be considered as Income of the assessee during the A/Y 2018-19 attracting the provisions of see 40A(3A).
Exceptions to such restrictions on Cash Payment: There are certain exception which are provided under Rule 6DD of the Income Tax Rules 1962 under which no disallowance will be made of expenditure even if payment exceeding Rs. 10000/- is made otherwise than by an A/c Payee bank draft or through electronic clearing system of Bank. These exemption are:- i. Where payment is made to
a) RBI or any banking company b) SBI or any subsidiary Bank c) Any co-operative bank or land mortgage bank d) Any primary agricultural credit society or any
primary credit society e) LIC
ii. Payment made to Govt. if under the rules framed by it, such payment is required to be made in legal tender.
iii. Payment through following banking system i.e. a) Letter of credit b) Mail or Telegraphic transfer c) Credit Card d) Debit Card e) Bill of exchange made payable only to a bank f) A book adjustment from any A/C in a bank to
any other A/C in that or any other bank. iv. Payment made by way of adjustment against the
amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee.
v. Where the payment is made for the purchase of a) Agricultural or forest produce or b) Produce of Animal husbandry (including live
stock, meat, hides and skins) or dairy or poultry farming or
c) Fish or fish products or d) Products of horticulture or apicultures to the cultivator, grower or producer of such
articles/products. vi. Payment made to the producer of the
products of animal husbandry (including live stocks, meat, hides and skins) The Govt. has issued a circular on 29.03.2016, i.e. circular No. 4/2016, it which it was stated that this exception will be applicable only to the
producer not to the trader, broker or any other middleman by whatever name called.
vii. Payment made to a producer in respect of purchase of products manufactured or processed without aid of power in a cottage industry.
viii. Payment made to a person who ordinally reside or carries business in village not served by any bank.
ix. Payment of terminal benefits, such as gratuity, retrenchment compensation etc, payable to the employee or his legal heir and such amount does not exceed Rs. 50000/- in aggregate.
x. Payment required to be made on a day on which the banks were closed either on A/c of holiday or on A/c of strike.
xi. Payment made by any person to his AGENT who is required to make payment in cash for good or services on behalf of such person.
xii. Payment made by an authorised dealer or a money changer against purchase of foreign currency or travelers cheque in the normal course of business.
xiii. Payment of salary to his employee after deducting TDS & when such employee a) Is temporally posted for a continuing
period of 15 days or more in a place other than his normal place of duty or on a ship and
b) Doesn’t maintain any A/c in any bank at such place or ship.
This is all about Sec. 40A(3) read with Sec. 40A(3A) and Rule 6DD of Income Tax Rules, 1962, which provide that the payment in respect of an expenditure should not be made other than by A/c payee cheque, A/c payee bank draft or through electronic clearing system of bank, if the amount of payment to be made is in excess of Rs. 10000/- However, the limit is of Rs. 35000/- in case of payment is made for plying, hiring or leasing goods carriages. Thus if you are paying for plying, hiring or leasing of goods then no disallowance upto Rs. 35000/- to a SINGLE PARTY IN A SINGLE day. In other case the limit is of Rs. 10000/- subject to the exception provided under Rule 60D of Income Tax Rules 1962.
Q.1 Purchase of fixed assets in cash in excess of Rs. 10000/-, whether attracts disallowance?
Ans. Here depreciation in respect of such fixed asset debited to P&C a/c will be disallowed by attracting
provision of Sec. 40A(3).
Q.2 Cash payment of Principal or interest amounts to the person from whom the loan is taken, in excess of Rs.
10000/- in a SINGLE DAY to a SINGLE Party.
Ans. Interest paid is cash will be disallowed u/s 40A(3). Principal repayment will not have any coverage u/s 40A(3)