Newsletter

February 2017

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

In This Issue

Trending Topics 03

Synopsis: Union Budget 2017-2018

Union Budget 2017: Impact on industries

Transitional Challenges in GST Implementation

Ind AS Compliant Schedule III - A walk through

Due Date Chart 16

Notifications and Circulars 18

Seminars and Courses 22

Seminar

Batches for Professional Courses

About Us 27

Contact Us 30

2

TRENDING TOPICS

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

Synopsis: Union Budget

2017-2018Finance Minister says:

IMF estimates world GDP will grow by 3.4

percent in 2017

India has become the 6th largest

manufacturing country, up from ninth

previously

Budget contains three major reforms:

Budget advanced for early start of fiscal

expending; merging of Rail Budget to main

Budget; Done away with plan and non-plan

expenditure

Merger of the Railway Budget with the

Union Budget is a historic approach

Agriculture expected to grow at 4.1% in the

current year

Law on Contract Farming to be introduced

Govt plans legislative reforms to simplify

existing labour laws- wages, industrial

relations, social security and safety

LIC to come up with 8% guaranteed

scheme for senior citizen

New rules regarding medical devices will be

devised to reduce their cost

Aadhar enabled merchant payment will be

launched soon, especially for those without

net banking, e-wallets, and debit cards

Centralised defence travel system, where

travel ticket can be booked by soldiers

online

Model Shops and Establishment Bill to open

up additional opportunities for employment

of women

Head post offices to issue passports

Govt considering option to amend

Negotiable Instruments Act to ensure that

holders of dishonoured cheques get

payment

Education:

Two new All India Institute of Medical

Sciences(AIIMS) to be set up in Jharkhand

and Gujarat

Govt plans to increase additional 5,000

post graduate seats per annum

Innovation fund to be created for

secondary education

Swayam platform for students - more than

350 courses online

National Testing Agency to conduct all

examinations in higher education, freeing

CBSE and other agencies from this and

facilitate them to focus on academics

Infrastructure:

Housing to get 'Infrastructure' status

Allocation for infrastructure stands at a

record Rs 3,96,135 crore

3 year period for long-term capital gains

tax on immovable property reduced to 2

years; base year indexation shifted from

1.4.1981 to 1.4.2001

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

4

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

RAILWAY:

No change in Passenger Fares

Service charges for e-ticket booking

through IRCTC website to be withdrawn

IRCTC & IRCON as a company to be listed

on stock exchange

DIRECT TAX

Individuals:

Tax Slabs changed at:

Income up to Rs 2.5 lakh: NIL tax

Income between Rs 2.5 - 5 lakh: Tax at

5%

Income between 5 - 10 lakh: Tax at 20%

Income above Rs 10 lakh: Tax at 30%

Surcharge of 10% in those with income

above Rs. 50 lakhs per annum and below

Rs. 1 crore

15% surcharge on incomes above Rs 1

crore to continue

No cash transaction above Rs 3 lakh

without PAN

5% TDS on insurance agents removed

A single one-page form for filing IT returns

for taxable income up to Rs 5 lakh

Corporate:

Corporate tax to be at 25% for small &

medium companies whose annual

turnover is less than Rs. 50 crores

MAT can be carried forward for 15 years

by companies as against 10 years allowed

earlier

INDIRECT TAX

No change in excise and service tax rates

due to upcoming GST

CaClubIndia.com

5

Union Budget 2017: Impact

on Different Industries

6

Impact on Infrastructure

Infrastructure investment and development

agenda has been one of the key priorities of

the extant Government and the earlier budgets

also focused on substantial outlay for

infrastructure sector backed with policy

announcements to address its key concerns.

Budget 2017 continues to place emphasis on

infrastructure development with an increased

outlay of INR 3,961 billion.

Impact on Consumer Business

Budget 2017 would certainly increase the

purchasing power of the rural population, with

an impetus to bring more than 1 crore

households out of poverty by attempting to

increase their livelihood. Also, the disposable

income of Indian consumer is likely to increase

due to direct tax incentive in form of reduced

individual taxes and reduction in corporate tax

rates for small and medium players.

Impact on Regulatory and Financial

Measures

Union Budget 2017 is devised to boost

transparency in funding of political parties and

regulatory payment systems. Along with this,

the new provision will also prevent generation

of unaccounted money, broaden investment

avenues of private trusts, and benefit the

farmer community.

Impact on Manufacturing

In the past couple of years, the Government

seems to be focusing on building a long term

growth plan for the manufacturing sector by

investing resources in infrastructure and rural

market development. The finance budget 2017

provides for substantial allocation towards

these areas.

Impact on Technology, Media &

Telecommunications (TMT)

Digital economy being one of the key themes

of the budget, large scale technology

investments have envisioned to enable this

paradigm shift. India’s TMT sector could be

considered as the platform that will accelerate

our country’s economic growth in the coming

years. We observed that the overall direction

for the TMT sector from the union budget is

positive, given the focus on digital economy,

built on digital transactions to broaden the tax

base, and the opportunities for technology

interventions across sectors such as

infrastructure, financial services, education,

healthcare, governance, and public services.

Impact on Financial Services

The Finance Minister has announced a few key

reforms such as setting up the Long Term

Irrigation Fund, Micro Irrigation Fund and Dairy

Processing & Infrastructure Development

Fund. Further, additional INR 80,000 million

has been allocated to complete 10 million

houses under the Pradhan Mantri Awaas

Yojana – Gramin, increasing the total fund

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

allocation to INR 230,000 million. Affordable

Housing has been reclassified under

“Infrastructure” and conditions for tax holiday for

the same have been rationalised on a pan-India

basis. On the stressed assets front, legal

framework has been strengthened and INR

100,000 million has been set aside to re-

capitalise banks to deal with stressed assets.

On direct tax front, taxation of JDA has been

streamlined.

Impact on Life Sciences & Health Care

The Indian Union Budget 2017 was tabled in

Parliament on 1 February 2017. At the outset,

the Government has acknowledged the need to

amend the Drugs and Cosmetics Rules to get

drugs at reasonable prices and promote use of

generic medicines. The Government also

proposes to formulate new rules for regulating

medical devices which will attract investments

and reduce the cost of such devices.

Impact on Energy & Resources

Given India’s dependence on Oil & Gas, the

Government has taken several steps to

increase domestic production of Oil & Gas and

secure resources abroad for energy security.

We looked at the steps indicated by the

government such as creation of an integrated

oil company, reduced basic customs duty

(BCD) on LNG from 5% to 2.5%, commitment

to achieve 175,000 MW of Renewable Power

capacity by 2022, among others, which

highlight substantive promises to the energy

and resources sector.

Impact on Foreign Portfolio

Investment (FPI)

Allowing foreign portfolio investors to directly

access bond trading platforms, the government

and corporate paper will increase the investor

base.

Economic indicators for Foreign

Portfolio Investment

India continues to clock high growth rate

despite demonetization and global slowdown.

The Finance Minister of India presented the

Economic Survey for the year 2016-17 in the

Parliament today.

Deloitte.com

7

Transitional Challenges in

GST Implementation

8

Background

GST is expected to be implemented from

April 2017 or a little later. The tax system is

currently in the drafting stages with a few

undecided issues holding up the agreement

between the states and the Centre. The

implementation of GST does not just involve

tax reform, it is instead a complete business

reform. Therefore, changing the historical

ways of doing business calls for larger

challenges and increased sense of

responsibility as any slip up can also have the

business continuity/ survival risks.

Various transitional challenges

I. Finalising the GST Transition Model:

The first and foremost challenge in the

implementation of the GST is to understand

what is the right model for your business to

implement the GST. Broadly, there are three

models as under:

Model-1: In-house implementation Model:

Implementing the GST with its own internal

team by developing a core GST Team. This

can be an appropriate model when the

system and controls are well-organised and

the company has separate tax team with

complete pool of industry knowledge and the

knowledge of taxation apart from the

resources to execute the plan.

Model-2: Out-source implementation

Model: Outsourcing the entire GST transition

aspects from planning to execution to outside

professionals. This can be apt where the size

of the business is very small and the

company does not have any resources in

manpower and expertise in the taxation either

to plan or to execute the GST

implementation.

Model-3: In-House + Outsource

implementation Model: Developing a core

internal GST team plus obtaining the

assistance of professionals as a knowledge

partner. In this model, GST is implemented

with collaborated efforts of internal team

and the outside professionals clearly

dividing the roles and responsibilities of

internal team and the external experts. This

is more appropriate model for major of the

companies who have fairly decent

capacities in respect of the executing

manpower and knowledge of the taxation

system. The capacity and the knowledge

can be optimally utilized by partnering with

the professionals.

II. Credits Transit, Maximization,

documentation, Methodology:

Transition of credits is going to be a big

challenge in the GST regime especially for

the following businesses:

Where credits in books are not

reconciled with returns over a period of

time;

Book stocks never match with the

physical stocks. There is no regular

stock taking exercise being conducted;

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

Tax invoices received from vendors not being

properly documented, Tax invoices not being

obtained at all;

Ineligible and improper credits are availed in

the books and returns with no sanctity

checks on the credits;

Credits are missed either due non-availability

of credit availing document or missed due to

oversight or credit assumed to be ineligible

which is actually eligible or credits missed

transferring in return from the books. Such

businesses must run a credit check for the

last one year and avail the credits where

possible.

Business Model Re-structuring:

All businesses will undergo a change due to

advent of GST. However, the businesses who

act and restructure its model as per the

requirement of the GST will have a competitive

edge over others. Various re-structuring

aspects that can be looked into are as under:

Whether to change the manufacturing

location, principle place of business;

Adding locations of supply being closer to

customers/ vendors - Making national

presence - No state barriers for supply;

Shutting down locations, warehousing

strategy, Change in supply chain

management;

Whether floating a new entity for separate

business verticals;

Management hierarchal/ reporting changes -

Robust de-centralised reporting required;

Venturing into new avenues;

Assessing collaborations, partnerships,

mergers - Geographical expansion &

business line expansions;

Change in Sourcing strategies - Local/ inter-

state/ SEZ.

Understanding the nature and extent of the re-

structuring along with the time required v/s time

available would be important.

Transactional Restructuring:

Optimizing the transactions as per the GST

shall be the need of every business house to

stay afloat in the competitive business

environment. However, understanding the

various options of restructuring and choosing

the best based on the risk/ return criteria shall

be key. Few illustrative aspects of transactional

restructuring are as under:

Strategizing the stock transfers to avoid

working capital blockage;

Breaking a composite supply into multiple

different supplies - For Ex: Combos with

aerated drinks in restaurants, Cinema halls;

Merging multiple supplies into a composite

supply - For Ex: Vaastu, High Rise Premium

to be merged with construction;

Determining whether a transaction to be

restructured as a Composite supply or as a

Mixed supply;

Clear breaking up the Price to optimize

taxes;

Revisiting the Discounts policy - Nature of

discount, Cash discount or trade discount,

whether linked to invoice or not;

Security Deposits in lieu of advances to

ease cash flows;

Reviewing pricing of all related party

vendors to avoid disputes in transaction

value - Able to establish arms length;

Doing away with the policy of raising Mother

Purchase Order’s with supplies over a

period of time.

What if any transitional aspect is not

addressed in the GST law:

There are certain transitional aspects which

are not addressed in the Model GST law. For

instance, Provision for removal of inputs for

job-work in the Model law does not explicitly

cover direct removal to job worker place from

vendor locations and also it does not cover

direct dispatches of inputs by job-worker to9

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

the principals customer after processing. There

can be many more such practical scenario’s

which model GST law has not envisaged and

hence not covered. Therefore, it poses a

challenge on the businesses as to treatment for

such cases. Ideally, experts view on the same

can be taken and accordingly based on the risk

involved proper treatment must be given effect

to. Further, the same can be intimated to the

department for records purpose.

What if certain transitional aspects are

practically difficult to implement:

There can be certain transitional aspects which

would be more complex in a practical scenario

and there may not be only one view of the

same. For instance: Determining the quantum

of availing credits based on stock or

determining the right pricing for goods/ services

in the GST regime considering the anti-

profiteering measures. In such cases,

businesses shall face challenge in selecting the

right approach. Further, the approach adopted

may easily be contradicted by the department.

Therefore, in such scenarios businesses must

have proper documents, evidences in place and

if possible get the same duly certified by the

competent authorities to establish its claim.

Updation of various GST laws for each state

in a quick short time and complying with the

procedural aspects of each state:

In embracing a change it becomes crucial for

businesses and professionals to stay connected

with the change. Government officials are

making the laws, revised laws, rules,

procedures, formats at a bullet speed. The

thoroughly revised and revamped Model GST

Draft has been put up in the public domain as

recently as on November 26, 2016. Further,

upon approval by GST council, soon each state

will come up with its own GST laws and there

set of rules, procedures etc. In such a fast

moving pace, its crucial for businesses and

professionals to stay brisk and updated with the

current by having a continuous learning and

training system in place.

Some master trainers must be identified in

each department who shall undertake in-depth

training of the changes and impart the same

downstream.

Determining the right pricing - Anti-

Profiteering:

Section 169 of the Model GST law specifically

states that in case the Input Tax credit in

respect of inputs held in stock is taken then the

benefit of the same must be passed on to the

buyers. It shall be crucial for the businesses to

quantify the benefit and determine the

commensurate reduction in pricing that would

be required to off-set the benefit. This shall be

very complex aspect that the businesses are

going to face. The consequences of the same

will be faced at the time of departmental audits

in the GST regime. Therefore, due care needs

to be taken under the guidance of the

professionals while dealing with such loosely

drafted provisions in the law without clear

guidance.

Filing of the last return in the current tax

regime:

Filing of the last return in the current tax

regime is like a last chance to make good the

old issues and start afresh. Based on the

impact assessment, complete sanctity check

for the last 1 year must be done and the same

must be given effect to in the last returns.

Missed credits, doubtful credits, credits

reversed to buy peace etc. can now be availed

in the last return with proper intimation to the

department.

Transactions overlapping between the two

regimes must be clearly understood and

correct legal effect must be given in the old

returns. Transactions which can be closed

profitably prior to GST could be closed. Once

the old returns are filed and the time limit of its

revision expires then the chance of making

changes is less and cash refunds under the

earlier law would be the only option. Disputed

refunds for credit accumulation could lapse.

10

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

Filing of First Return in the GST regime:

Filing of the first return in the GST regime is a

crucial task and during transition where all the

old credits, taxes etc. are transferred.

Understanding the first return and implementing

its filing in a correct manner in a first go shall be

a daunting task.

Dealing with un-organized vendors/

customers - Can be obstacle in smooth

transition:

Carrying along the un-organized vendors into

the GST regime is a risky affair. Many aspects

of the GST regime such as matching concept,

compliances etc. will be perturb the business in

GST regime if the vendors are not organized.

Therefore, the challenging task of the vendor

evaluation/ assessment and their preparedness

for the GST must be assessed well in advance

during the this phase so that the loose link the

chain is not carried along to the GST regime.

Nature and extent upto which ERP system

must be tweaked:

Needs of the businesses from ERP shall

undergo a change in the GST regime, but the

crucial decision making factor is to understand

the nature and extent of the tweaking to the

ERP that is required to be done to atleast start

with. It shall be challenging for the businesses

to decide whether to totally migrate into the new

ERP or to completely overhaul the existing

ERP’s or to list out the various reports, formats,

fields that needs to be changed in the existing

ERP. Various factors that may help in

determining the same:

Efficiency of current package,

Size of business,

Time for transition to new ERP,

Time left for GST,

Support from the ERP vendor etc.

Based on these factors business must take a

decision as to what changes in ERP must be

done to ensure smooth flow of GST operations.

Performing GST Impact Analysis:

Any action pertaining to transition can be taken

only once the impact is known. Entering a new

phase without knowing its impact could be a

risky proportion. Further, impact assessment

helps in channelizing the transitional efforts in

the right areas. Various aspects that needs to

be considered in the process of impact analysis

are as under:

Understand self business first - As-is

mapping of the business transactions

Perform minimum past one year sanity

check

Credit Maximization, Review of present

credits & compliance

Performing various ratio analysis to

understand the business and its GST impact

Assess detailed impact on business as a

whole, business transactions and impact on

various business departments.

Proactively mitigate the risks of the negative

impact. Enhance the positive impact.

Implementation not restricted to Finance &

Accounts department. Readiness and

learning equally required by procurement,

production, stores, Sales & Marketing, IT,

Admin & HR departments also.

Conclusion:

Businesses that do not take care in the initial

period would face disputes/ demands after 3-4

years of frustration during audit, as they do not

have any reconciliations, evidence to prove

compliance in the transitional phase. Effective

GST transition could result in capturing new

customers, safeguarding the present market as

well as to protect the present margins. While it

is true that ‘Every challenge is an opportunity’,

in early study and for smooth transition, the

saying ‘a stitch in time saves nine’ is also

important.

CaClubIndia.com

11

Ind AS Compliant Schedule

III: A Walk ThroughBackground

Ind AS compliant Schedule III scripted in

Division II of the Schedule lays out a format of

the balance sheet, the statement of profit and

loss and that further sets out the minimum

requirements of disclosure on the face of the

balance sheet and Profit and Loss (P/L). The

Schedule does not permit companies to avail of

the option of presenting assets and liabilities in

the order of liquidity. The disclosure

requirements specified in this Schedule are in

addition to and not in substitution of the

disclosure requirements specified in the Indian

Accounting Standards. Additional disclosures

specified in the Indian Accounting Standards

shall be made in the Notes or by way of

additional statement or statements unless

required to be disclosed on the face of the

Financial Statements.

‘Financial Statements shall disclose all

‘material’ items, i.e., the items if they could,

individually or collectively, decisions that users

make on the basis of the financial statements.

Materiality depends on the size or nature of the

item or a combination of both, to be judged in

the particular circumstances. The statement of

P&L is to be presented in accordance with the

nature of expenses and would include profit or

loss for the period and other comprehensive

income for the period.

One of the new components of Financial

Statements in Ind AS compliant Schedule III

relates to Statement of Changes in Equity that

inter-alia includes disclosure of the equity

component of the financial instruments in ‘other

equity’ under Ind AS 32, apartment

reconciliation from opening to closing amounts

for each component of equity including

reserves and surplus and items of other

comprehensive income.

Balance Sheet

It may be noted that under Ind.AS, Balance

Sheet starts with ‘Assets’; and ‘Equity and

Liabilities’ follow suit as against ‘Equity and

Liabilities’ is exhibited at the beginning and

‘Assets’ thereafter under IGAAP compliant

Schedule III, presumably because funds are

raised only to meet the applications to run the

finance.

Equity and Liabilities:

Equity is dealt with -- one as Equity share

capital and the other as “Other Equity”.

Regarding Equity Share Capital with Balance at

the beginning of the reporting period +/

Changes in equity share capital during the year

and Balance at the end of the reporting period.

A glance through of the discloser requirements

in Note 6 D 1 from (a) to (i) under GENERAL

INSTRUCTIONS FOR PREPARATION OF

BALANCE SHEET will highlight that

disclosures are by and large of the same of

IGAAP Schedule III .12

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

However, Other Equity that includes Share

application money pending allotment, Equity

component of compound financial instruments-

-Convertible preference shares and Convertible

Debenture bonds; Reserves and Surplus-

Capital Reserve, Securities Premium Reserve,

Other Reserves, Retained Earnings; Debt

instruments through Other Comprehensive

Income herein after referred to as ‘OCI’, Equity

Instruments through OCI, Effective portion of

Cash Flow Hedges, Revaluation Surplus,

Exchange differences on translating the

financial statements of a foreign operation,

Other items of Other Comprehensive Income,

Money received against share warrants with

total.

Debit balance of Statement of P/L shall be

shown as a negative figure under the head

‘retained earnings’. Similarly, the balance of

‘Other Equity’, after adjusting negative balance

of retained earnings shall be shown under the

head ‘Other Equity’ even if the resulting figure

is in the negative.

Besides, ‘OCI’ related to the period is to be

presented separately in the statement of P&L.

Non Current Liabilities (Note E):

If we make a comparison of Ind AS compliant

Schedule III with that of IGAAP, It may be

noted that-

Ind AS does not use the phrase long term,

but only noncurrent liabilities.

Liability component of compound financial

instruments is included for reason obvious.

The word ‘advances’ is striped from ‘Loans

and advances from related parties’ under

IGAPP to Loans from related parties. .

Perhaps, the word ‘Advances’ is shifted to

‘Other non-current Liabilities’.

Other non-current liabilities is to be

presented (a) Provision for employee

benefits and (b) others (specify nature) that

is a little different in IGAAP-Trade Payables

and others

Deferred tax liabilities (net)

Current Liabilities:

Ind AS does not use the phrase Short-

term, but only current liabilities.

The word ‘advances’ is striped from ‘Loans

and advances from related parties used

IGAPP to Loans from related parties in Ind

AS Compliant Schedule. Perhaps, the word

‘Advances’ is shifted to ‘Other current

Liabilities’.

Interest accrued but not due/ and due on

borrowings are separately presented under

the head other current liabilities In IGAPP;

But, are disclosed as Interest accrued in

Ind. As Compliant Schedule III

There is a distinct discloser under other

current liabilities: as to

(a) Revenue received in advance;

(b) Other advances (specify nature); and

(c) Others (specify nature)

Noncurrent Assets Item:

Under Ind.AS, the phrase fixed assets is not

used.

Property, Plant and Equipment is the first

item under assets. The Note 6A (i) to

GENERAL INSTRUCTIONS FOR

PREPARATION OF BALANCE SHEET

lists out different classification of PPEs that

may be visited upon to understand the

different approach. Bearer Plants (g) is a

new addition.

Capital work-in-progress

Investment property Note (II) separate

presentation in the body of the Balance

Sheet.

Goodwill separate presentation

Other intangible assets and

Under development -separate presentation

in the body of the Balance Sheet with

details in the note`

Intangible assets under development

Biological Assets other than bearer plants

or reversals shall be disclosed separately13

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

Investments:

Investments shall be classified as:

Investments in Equity Instruments;

Investments in Preference Shares;

Investments in Government securities;

Investments in debentures or bonds;

Investments in Mutual Funds;

Investments in partnership firms; or

Other investments (specify nature)

Under each classification, details shall be

given of names of the bodies corporate that

are-

(i) subsidiaries,

(ii) associates,

(iii) joint ventures, or

(iv) structured entities,

In whom investments have been made and the

nature and extent of the investment so made.

Trade receivables:

Trade receivables shall be sub-classified as:

(a) Secured, considered good;

(b) Unsecured considered good; and

(c) Doubtful.

Allowance for bad and doubtful debts shall

be disclosed under the relevant heads

separately.

Debts due by directors or other officers of

the company or any of them either severally

or jointly with any other person or debts due

by firms or private companies respectively

in which any director is a partner or a

director or a member should be separately

stated.

Loans

Deferred tax assets (net)

Other non-current assets.

Statement of Profit and Loss:

The statement of P&L is to be presented in

accordance with the nature of expenses and

would include profit or loss for the period and

other comprehensive income for the period.

That can be reclassified into P/L:

1) Debt instruments through OCI- on

liquidation-net of income tax.

2) Exchange differences in translating the

statement of foreign operations -on

disposal.

3) The effective portion of gains and loss on

cash flow hedge net of income tax.

4) Share of OCI in Associates and Joint

ventures to the extent that can be classified

in P&L-based on the nature of respective

item

5) Others

That cannot be reclassified to statement of

P/L:

1) Changes in revaluation surplus net of

income tax

2) RE-measurement of defined benefit plans

net of income tax;

3) Equity Instruments measured at fair value

through OCI-net of income taxes

4) Share of OCI in Associates and Joint

ventures to the extent that cannot be

classified in P&L

Other Notes to Balance sheet

(In Synopsis)

Ind AS 101 is a beacon light for the first time

adoption of Ind AS compliant financial

statements. For the first time adoption, Ind AS

has to be from the inception and not from the

date of transition, as birth initiates from the

date of conception. But, since it may confront

practical difficulties, it permits to consider

certain mandatory and optional exemptions

from retrospective application. For the first

time adoption, three years Balance Sheets are

to be presented with all the adjustments

required for first adoption for earlier years as

suggested above reflected in the first year

relevant balances of the Balance Sheet.

Accounting policies, changes in accounting

estimates and errors are choreographed in line

with the respective Ind AS.

14

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

Ind AS 16 requires an entity to choose either

the cost model or the revaluation model as its

accounting policy and to apply that policy to an

entire class of property, plant and equipment.

Initial costs and the subsequent costs are

assessed on same recognition principles to

determine whether the same should be

recognized as an item of property, plant and

equipment. Component Accounting- cost of

replacing such parts is capitalized, if recognition

criteria are met with consequent de-recognition

of carrying amount of the replaced part. Major

Inspection expenses are also to be capitalized.

Intangible Assets (Ind AS 38): Any

brand/trademark having indefinite useful life or

goodwill arising from future transactions will not

be amortized and only tested for impairment.

Goodwill arising on business combination

cannot be amortized and is only tested for

impairment. No impact on Ind AS opening B/S.

Valuation of Investments: The Company will

account for its investments at fair value. The

other investments will be classified as either

Fair Value through the Profit or Loss (FVTPL) or

Fair Value through the Other Comprehensive

Income (FVOCI) depending on the nature of

investment. Debt instruments valued at

amortized cost, unless other mode of valuations

warranted/elected Ind.AS-109 on financial

Instruments.

Provisioning based on Expected credit Loss

(ECL): It is based on expected loss than

incurred loss. ECL is grounded on time value of

loss as well for realization loss– Ind AS 109

and hence provisioning norms is nor

discretionary but matrix based. It must be born

in mind that expected credit loss arises even if it

expects to be paid but later than contractually

due date.

Provisions: The Company will discount

provisions to their present value where the

effect of time value of money is material. The

increase in the provision due to the passage of

time will be recognised as finance cost resulting

in higher interest cost.

Income Tax:-Ind. As 12- Balance Sheet

approaches Recognition of DTL on non-

depreciable assets. Recognition of DTL on

non-depreciable assets may have to be

considered.

Ind AS 11: When goods or services are sold

on credit, the arrangement has in substance

two components, firstly the sale of the goods

or services and secondly a financing

element. The two components are accounted

for separately.

Ind AS 20: On ‘Accounting of Government

Grants and Disclosers of Govt. Assistance’,

the benefit derived below market rate is to be

accounted as government grant--- measured

between initial carrying amount of the loan

determined as per Ind AS and the actual

amount received. Very often interest Free

Sale Tax payment concessions are extended

on specific situations and payable after

appointed dates as prescribed - may come

under amortized cost.

Conclusion

The Standards dealt with above are in

synopsis to have a feel and better

understanding of the Standards/ The Ind AS

Compliant Schedule III. Therefore, it goes

without saying one should have the basic

knowledge of all standards with guidance

notes relevant for the proper compliance of

Standards. Standards are to be complied

with- more so if referred to in the provisions

of the Act. Companies coming under the first

phase have to present the financial

statements under Ind AS. Division II of

Schedule III that is to be properly understood

for proper compliance. Notes required under

the Companies Act, the Schedule iii and

under the relevant Ind ASs along with

narrative descriptions or disaggregation of

items recognized in the financial statements

and information about items that do not

qualify for such recognition are to be taken

care of.

CaClubIndia.com15

DUE DATE CHART

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

17

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

DUE DATE CHART (February’2017)Due Date Category Particulars Form/Challan/Site

5th/ 6th Feb

2017

Service Tax

Payment

Payment for the month of

January 2017GAR-7

Central Excise

Payment

Payment for the month of

January 2017GAR-7

07th Feb 2017TDS/ TCS

Payment

Deposit of TDS for the

month of January 2017ITNS 281

Deposit of TCS for the

month of January 2017Form 26QB

10th Feb 2017

Central Excise

Monthly Return

Return of Central Excise

for the month of January

2017

ER-1

STPI Monthly

Return

Return for the month of

January 2017

https://onlinereports

.soft.net/

21st Feb 2017

CST PaymentPayment of CST for the

month of January 2017www.dvat.gov.in

VAT Monthly

Payment

Payment of VAT for the

month of January 2017Form 100

PT-Payment

(Employees)

Payment of Professional

Tax for the month of

January 2017Form III-(B)

ESICPayment of ESIC for the

month of January 2017www.esic.in

25th Feb 2017 Provident Fund

Return of Provident Fund

for the month of January

2017www.epfindia.com

NOTIFICATIONS

AND CIRCULARS

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

Notification/ Circular Reference No.

Quoting of PAN in all the existing bank accounts and

other measures

For complete information, please refer-http://www.incometaxindia.gov.in/communications/notification/

notification_2_2017.pdf

Notification No. 2/2017,

Dated 06-01-2017

Explanatory Notes on Provisions of The Taxation and

Investment Regime for Pradhan Mantri Garib Kalyan

Yojana, 2016 as contained in Chapter IX-A of The

Finance Act, 2016

For complete information, please refer-http://www.incometaxindia.gov.in/communications/circular/circ

ular432016.pdf

Circular No. 43/2016,

Dated 27-12-2016

Deduction of tax at source-Income-tax deduction from

salaries under Section 192 of the Income-tax Act, 1961

during the Financial Year 2016-17

For complete information, please refer-http://taxindiaupdates.in/wp-content/uploads/2015/12/CBDT-

Circular-01-2017-dated-02-01-2017.pdf

Circular No. 01/2017,

Dated 02-01-2017

Reduction in the existing rate of deemed profit under

Section 44AD in respect of amounts/receipts through

banking channel/digital means

For complete information, please refer-http://www.incometaxindia.gov.in/Lists/Press%20Releases/Att

achments/571/Measures-Promoting-Digital-Payments-

Creation-of-Less-Cash-Economy-19-12-2016.pdf

Press Release,

Dated 19-12-2016

Reporting Cash Transactions under Rule 114E of

Income–tax Rules, 1962

For complete information, please refer-http://www.incometaxindia.gov.in/Lists/Press%20Releases/Att

achments/575/Reporting-Cash-Transactions-under-Rule-

114E-Income-tax-Rules-1962-23-12-2016.pdf

Press Release,

Dated 22-12-2016

Direct Tax Law

19 Source: ICAI e-Journal

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

20 Source: ICAI e-Journal

Indirect Tax LawNotification/ Circular Reference No.

Migration of Existing Central Excise and Service Tax

Assessees to GST

For complete information, please refer-

http://www.cbec.gov.in/resources//htdocs-cbec/migration-

to-gst/letter-gst-migration-sevakendras.pdf

D.O. No IV(33) 16/2016

Dated: 27-12-2017

Central Government vide Notification No. 1/2017-ST

dated: January 12, 2017 has amended Mega Exemption

For complete information, please refer-

http://www.cbec.gov.in/resources//htdocs-servicetax/st-

notifications/st-notifications-2017/st01-2017.pdf

Notification No. 1/2017-

Service Tax,

Dated: 12-01- 2017

Abatement for tour operator services rationalised and

reduced to 40%

Central Government has rationalised the abatement

provision w.e.f. 22.01.2017 for all classes of tour operator

services by reducing the abatement rate to 40%. For

availing the abatement, the CENVAT credit of inputs and

capital goods used for providing the said taxable service

would not be allowed. For complete information, refer-

http://www.cbec.gov.in/resources//htdocs-servicetax/st-

notifications/st-notifications-2017/st04-2017.pdf

Notification No. 4/2017-

Service Tax,

Dated: 12-01-2017

Relaxation to issue online invoice without digital

signature

Central Government has inserted a proviso in Rule 4C(1) of

the Service Tax Rules, 1994 allowing a person located in

non-taxable territory providing online information and

database access or retrieval services[OIDAR] to a non-

assessee online recipient located in taxable territory to

issue online invoices not authenticated by means of a

digital signature for a period upto 31st January, 2017. For

complete information, please refer-

http://www.cbec.gov.in/resources//htdocs-servicetax/st-

notifications/st-notifications-2016/st53-2016.pdf

Notification No.

53/2016-Service Tax,

Dated: 19-12-2016

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

21

Others (MCA/ SEBI/ RBI)Notification/ Circular Reference No.

Exemption to Specified IFSC Private company under

Section 462 of the Companies Act, 2013.

MCA has notified certain relaxations or modifications and

adaptations from the application of certain provisions of the

Companies Act 2013 to an unlisted public company which is

licensed to operate by the RBI or SEBI or IRDA from the

International Financial Services Centre located in an approved

multi services Special Economic Zone.

For complete text of the Rules, please refer the link:

http://www.mca.gov.in/Ministry/pdf/IFSC_Public_04012017.pdf

MCA Notification

No. GSR 08 (E)

Dated: 04-01-2017

National Company Law Tribunal (Procedure for reduction

of share capital of Company) Rules, 2016

MCA has notified the aforesaid Rules to lay down the

procedures for reduction of share capital of companies. This

notification also deals with the form of application for reduction

of capital, issue of notice and directions by NCLT,

representation by Central Government etc.

For complete text of the Rules, please refer the link:

http://www.mca.gov.in/Ministry/pdf/NCLTRules2016.pdf

MCA Notification

No. GSR 1147(E)

Dated: 15-12-2016

Prudential Norms on Income Recognition, Asset

Classification and Provisioning pertaining to Advances

With the demonetisation of R500 and R1000 notes, RBI had

relaxed certain NPA identification norms. This includes

providing 30 days, in addition to the 60 days relaxation already

granted for NPA recognition in specific categories of loan as

specified therein. The said relaxation is only in respect of dues

payable between November 1, 2016 and December 31, 2016.

For complete text of the circular, please refer the link:

https://rbi.org.in/Scripts/NotificationUser.aspx?Id=10801&Mode

=0

RBI Circular No.

DBR.No.BP.BC.37/2

1.04.048/2016-17

Dated: 28-12-2016

Source: ICAI e-Journal

SEMINARS AND

COURSES

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

Seminars and DiscussionsTaxation Matters

23 ICAI CPEC Website

S.No. PoU Topic Place DateContact

Details

CPE

Hours

1.Chandigarh

Branch Of NIRCSeminar On Budget

National Institute of Technical

Teachers Training & Research,

Sector-26, Chandigarh

6th Feb’17

10:00-17:000172-5067756 6

2.

Vikas Marg C.A.

Study Circle of

NIRC

Discussion on Union

Budget, 2017

Auditorium of ICAI at

Vishwas Nagar, Delhi6th Feb’17

17:00-21:00

CA. Pradeep Jain

98105970504

3.Rourkela Branch

Of EIRC

Critical Analysis Of

Budget 2017Mayfair Rourkela

6th Feb’17

10:00-17:00

Yogesh Banka,

99370401996

4.Bhilwara Branch

Of CIRC

Discussion on Budget

2017 and Service Tax

Bhilwara Branch, ICAI

Bhawan, Sector8, Patel Nagar,6th Feb’17

10:30-14:30

CA Arun Kabra

94142544384

5.Nashik Branch

Of WIRC

Full Day Seminar on

Union Budget 2017

ICAI Bhawan, Ashoka Marg,

Pakahal Road, Nr. Ashoka

School, Nashik

7th Feb’17

10:00-17:00(0253) 2236107 6

6.

Satellite Area

CPE Study

Circle of WIRC

of ICAI

Budgetary Changes

2017 – Direct and

Indirect Taxes

Gloria The Restaurant &

Banquet Hall, 1st Floor

Regency Plaza, Opp. Rahul

Tower, Anandnagar Cross

Road, Satellite

7th Feb’17

16:30-19:30

CA Paurav Shah

99983735823

7.

Ellisbridge Cpe

Study Circle Of

WIRC

Budgetary Prposals

concerning IDT–

Finance Bill, 2017

Hotel Kanak, Opp. Gujarat

College, Ellisbridge,

Ahmedabad – 380006.

7th Feb’17

17:30-20:30

Yogendra Vyas

099138 116993

8.Bangalore

Branch Of SIRC

An Analysis of DT

amendments –

Finance Bill 2017

TUMKUR7th Feb’17

09:30-13:30

Ms.Geethanjali-

305635134

9.

North-Ex C.A.

Study Circle of

NIRC

Discussion On Union

Budget 2017

Tecnia Institute, Auditorium

Hall, Rohini, New Delhi

110085

8th Feb’17

17:00-22:00

CA D S Rawat

98111515065

10.

West Delhi

Study Circle of

NIRC

Discussion On Union

Budget 2017

Opp. Metro Pillar No. 146,

Punjabi Bagh, Near Shivaji

Park Metro, ND– 110026.

9th Feb’17

17:30-21:30

Ca Rakesh Singhal

98115262084

11.

CHURCHGATE

CPE STUDY

CIRCLE OF

WIRC

Provisions of Finance

Bill, 2017

Assembly Hall,1st Floor; St.

Xavier’s Institute of Research

& management; 5, Mahapalika

Marg, Chhatrapati Shivaji

Terminus Area; Mumbai

9th Feb’17

17:00-20:00

Ujwal Thakrar:

98199463793

12.

SILIGURI

BRANCH OF

EIRC

Tax Conclave 2017

Hotel Royal Sarovar Premier ,

3rd Mile , Sevoke Road,

Siliguri

11th Feb’17

10:00-17:00

CA. Vivek Goyal

98320230006

13.Bilaspur Branch

of CIRC of ICAI

Full Day Seminar on

Finance Bill’2017

Hotel East Park, Agrasen

Chowk, Bilaspur14th Feb’17

11:00-17:009039020104 6

14.

MASJID

BUNDER CPE

STUDY

CIRCLE OF

WIRC

PLACE OF SUPPLY,

IMPORT, EXPORT,

SEZ, IGST

Roman Vision Banquet

Hall,99/101, Keshavji Naik

Road, Chinchbunder Mahajan

Wadi, 3rd Floor, Above Vijay

Transport, Mumbai – 400 009

23rd

Feb’17

17:30-20:30

PRATIK DOSHI

98707609503

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

24

Other Matters

Seminars and DiscussionsAccounting & Auditing Matters

ICAI CPEC Website

S.No. PoU Topic Place Date Contact DetailsCPE

Hours

1.Belgaum Branch

Of SIRC

Audit Under Souharda

Society Act

Sawroop Plaza Tilakwadi

Belagavi6th Feb’17

10:30-17:3008312425018 6

2.

BKC Banking

CPE Study Circle

for Members in

Industry of ICAI

Ind-AS financial

instruments

presentation

ICICI Bank Towers7th Feb’17

14:00-18:00

Rohit Gupta

90044180794

S.No. PoU Topic Place DateContact

Details

CPE

Hours

1.Ratnagiri Branch of

WIRC of ICAI

Discussion on

Union Budget 2017

Hotel Vyankatesh Executive,

Maruti Mandir, Ratnagiri

415612

6th Feb’17

10:00-17:00

CA Mandar Joshi

94226595813

2.BANGALORE

BRANCH OF SIRC

Lecture Meeting

Capital Market and

Investor Awareness

Programme:

“Derivatives

demystified”

Bangalore Branch of SIRC of

ICAI- Narayana Auditorium,

No.16/O, Millers Tank Bed

Area, Vasanthnagar,

Bangalore-560052

8th Feb’17

18:00-20:00

Ms.Geethanjali

080-305635132

EASTERN INDIA

REGIONAL

COUNCIL

Demonetisation :

Recent IT Notices

& provisions under

IT Act & Finance

Bill

EIRC Auditorium

Eastern India Regional

Council, ICAI, 7, Russell

Street, KOLKATA – 700071

10th Feb’17

17:30-20:3030211104/33/34 3

3.Bilaspur Branch of

CIRC of ICAI

Full Day Seminar

on Finance

Bill’2017

Hotel East Park, Agrasen

Chowk, Bilaspur14th Feb’17

11:00-17:309039020104 6

4.

IFFCO Chowk CPE

Study Circle for

Members in Industry

Discussion on

Budget Highlight

2017-2018

Plot 22 Sec 18 Udyog Vihal

Gurgaon 122006.16th Feb’17

16:00-18:00Abhishek Sharma 2

5.Thane Branch of

WIRC of ICAI

SOFT SKILLS &

PERSONALITY

DEVELOPMENT

Gr.Floor, Training Room,

T.M.A. ,Road No. 16 , Wagle

Estate , Maharashtra, Thane.

18th Feb’17

10:00-17:0002225382456 6

6.

BORIVALI

(CENTRAL) CPE

STUDY CIRCLE OF

WIRC

Practice

Management

Sarvoday A/c Hall L. T.

Road, Opp. Diamond Talkies

Borivali (W) Mumbai – 400

092

19th Feb’17

09:15-13:45

CA Sharad Sheth,

98201372404

7.

JB NAGAR CPE

STUDY CIRCLE OF

WIRC

Family Settlement,

Wills

Directi Plex, New Nagardas

Road, Opp. Wilson Pens,

Near Andheri East Subway,

Andheri (E), Mumbai –

400069

25th Feb’17

15:30-19:309820240246 4

Batches for Upcoming

Courses

In This IssueTrending

TopicsNews Bits

Notifications

& Circulars

Seminars and

CoursesAbout Us

Certificate Course on Wealth Management

and Financial Planning

Eligibility for Admission

No candidate shall be admitted to the said

course unless he/she is a member of the ICAI

at the time of admission.

Course Fee

Rs. 15000/- (Rupees Fifteen Thousand only)

Overall Scheme

The participants would be required to

attend the course sessions on weekends

(Saturday/ Sunday). They would also be

required to devote time for self-study.

CPE Hours

Appropriate CPE hours will be provided to all

the registered members as per the CPE

guidelines.

Please send the filled registration form

& Demand draft in below given

Address,

Kindly Contact: Secretary, Committee for

Capacity Building of Members in Practice,

The Institute of Chartered Accountants

(ICAI), ICAI Bhawan, First Floor,

Administrative, Block, A-29, Sector-62,

Noida, Distt.- Gautam Budh Nagar (U.P.),

P.C.201309

E-mail: ccbcaf@icai.in,

Telephone: 0120-3045994

Objective of the Course

The objective of this Course is to equip the

members with the principles of Management of

Wealth as well as devising effective Investment

Strategy and the practical procedural aspects

and to build the competency level of the

members of the Institute to position them as

multidisciplinary financial consultants. This

Course is intended at enlightening the members

of the SMP segment & CA Firms. The emphasis

is on developing skill sets which would be

required for advising clients to make sound

financial decisions while practicing and serving

clients in diverse practice areas as compliance,

taxation etc.

Duration of the Course

20 days (only in Saturdays and/or Sundays)

25

Certificate Course on Forensic

Accounting & Fraud PreventionCourse Duration

7 Days

Course Fees

Rs.20,000/- per delegate payable Online or

by DD/ Pay-Order drawn in the favour of

“The Secretary, ICAI” payable at Delhi.

Further Details and Assistance

ICAI Course Coordinator

Secretary, Committee on IT, ICAI

E-Mail: cit@icai.in

Tel: +91 120-3045 961 / 963

Nodal Officer

CA. Amit Gupta

Assistant Secretary, CIT, ICAI

E-mail:- amitgupta@icai.in

Tel: +91 120-3045 961 / 963

Other Useful Links

Online Payment

Online Registration Form

In This IssueTrending

TopicsNews Bits

Notifications

& Circulars

Seminars and

CoursesAbout Us

Background

The Council of the Institute of Chartered

Accountants of India, recognizing the need for

Forensic Accounting and Fraud Prevention, in

the emerging economic scenario, has decided

to launch this Certificate Course on Forensic

Accounting and Fraud Prevention using IT and

CAATs. Forensic Accounting and Fraud

Prevention specialisation is in increasing

demand considering increasing incidents of

cyber crimes and frauds detection. It is the

practice of utilizing accounting, auditing,

CAATs/ Data Mining Tools, and investigative

skills to detect fraud/ mistakes.

Learning Outcomes

Assessment of the damages

Fact finding to see whether fraud/

embezzlement has taken place

Collection of evidences

Investigating and analyzing financial

evidences

CPE Hours

The CPE credit of 20 Hours will be given to the

participants.

ABOUT US

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

S.P. Chopra & Co. is a professional services firm established in

1949; Ranking amongst the top 20 firms in India

11 full time partners and staff strength of over 100

Offices in New Delhi, Mumbai, Canada and Dubai

Our firm offers Accounting, Assurance and Consultancy as its core business

lines for domestic and global businesses of medium to large size.

We have been empanelled with Reserve Bank of India, Royal Audit

Authority of Bhutan, United Nations and World Bank. We are also a

member of the Prime Global (an Independent association of more than

350 accounting firms all over the World).

28

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

29

Business Process Outsourcing

Accounting and Book-keeping

Tax Return preparation

Payroll processing

Financial Reporting

Advisory

Business Risk and Control

Standard Operating Procedures

(SOPs)

Financial Due Diligence

Transaction Support

Assurance Services

Statutory and Tax Audit

IFRS Convergence and

Reporting

Internal Financial Control (IFC)

In This IssueTrending

Topics

Due Date

Chart

Notifications

& Circulars

Seminars and

CoursesAbout Us

30

Mob: 9899110300