Real Estate Bill approved by Union Cabinet

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Real Estate (Regulation and Development) Bill, 2015, as reported by the Select Committee of Rajya Sabha. The Bill will now be taken up for consideration and passing by the Parliament.

The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers, promote fair play in real estate transactions and to ensure timely execution of projects.

The Bill provides uniform regulatory environment to ensure speedy adjudication of disputes and orderly growth of the real estate sector. It will boost domestic and foreign investment in the Real Estate sector and help achieve the objective of Government of India to provide ‘Housing for All’ by enhanced private participation.

The Bill ensures mandatory disclosure by promoters to the customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority. The Bill aims at restoring confidence of consumers in the real estate sector; by institutionalizing transparency and accountability in real estate and housing transactions which will further enable the sector to access capital and financial markets. The Bill will promote orderly growth through consequent efficient project execution, professionalism and standardization.

The salient features of the Bill are as under:

1. Applicable both for commercial and residential real estate projects.

2. Establishment of ‘Real Estate Regulatory Authority’ in States/UTs to regulate real estate transactions.

3. Registration of real estate projects and real estate agents with the Authority.

4. Mandatory disclosure of all registered projects, including details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer etc.

5. Deposit of specified amount in a separate bank account to cover the construction cost of the project for timely completion of the project.

6. Establishment of fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal.

7. Civil courts jurisdiction prohibited from taking up matters defined in Bill, however, consumer court allowed to hear real estate matters.

8. Promoters barred from changing plans and design without consent of consumers.

9. Provision of Appropriate Government to make rules for the matters specified in the Bill, and the Regulatory Authority to make necessary regulations.

-- CA Kasliwal Ambar

International Anti-Corruption Day

This International Anti-Corruption Day, Let's All Unite Against Corruption & Remove this Evil from Our Country and let's work towards a better nation.

-- CA Kasliwal Ambar

Pending IT refunds to be expedited

Central Board of Direct Taxes (CBDT) has issued directions for expediting pending refunds below Rs. 50,000/ for Assessment Year(s) 2013-14 and 2014-15 in all cases except those selected for scrutiny.

The Income-tax Department is committed to improving taxpayer services and redressing grievances in a timely manner.

The status of outstanding refunds was reviewed recently. Following the review, Central Board of Direct Taxes (CBDT) has issued directions to its field formations to expedite the issue of pending refunds below Rs. 50,000/ for assessment years 2013-14 and 2014-15 in all such cases which have not been selected for scrutiny. The field formations and the Central Processing Centre (CPC), Bengaluru have been directed to complete the process as early as possible.

This initiative is expected to significantly reduce taxpayer grievances and enhance the taxpayer satisfaction.

The communication is available on the website of the Department at www.incometaxindia.gov.in

-- CA Kasliwal Ambar

WIRC Elections: Vote and Make a Difference

Make Your Voice heard.

This WIRC Elections, Do Vote

CA Kasliwal Ambar

Ballot No. 26

WIRC Elections 2015 - CA Kasliwal Ambar Profile

I would like to take this opportunity to brief and introduce myself. I am Commerce Graduate from The University of Rajasthan and a Fellow Member of the Institute qualified in the year 2002. I have successfully completed the Certificate Course on Valuation and Certificate Course on International Taxation organized by Institute of Chartered Accountants of India. I have been fortunate enough to advise top names in the field of Media & Advertising, Venture Capital Funds, Courier Cargo & Logistics, Pharma and Diagnostic Centre’s as clients including industry leaders. Has expertise in setting up Venture Capital Funds and my main forte is Media & Entertainment Industry.

I have acted as coordinator for conducting the certificate course on International Taxation in Mumbai and other than submitting various representations to government departments on behalf of the CA fraternity, I have also been a regular contributor and speaker at various study circles and seminars.

I have also been actively involved in various trade and other organizations including the following -

• Sub group member of GMCS Coordination Committee for the Year 2015-2016

• An Active member of Kandivali Borivali East CPE Study Circle.

• Active member of Bombay Chartered Accountant Society (BCAS), Mumbai.

• Life member of The Chamber of Tax Consultants, Mumbai.

• Patron Life member of Jain International Trade Organization (JITO).

• Charter Member of Rotary Club of Mumbai Western Elite.

• An Active member of Bharat Vikas Parishad, New Delhi.

• Actively associated with various religious, educational and professional organizations.

• Core team member for building a Hostel for CA students in Malad, Mumbai.

Given the spectrum of my experience as practising chartered accountant, I am able to identify with the tribulations that a fresh chartered accountant both who are in practice or who chose to serve the industry. I am also aware of the challenges faced by my fellow members.

With my exposure of over a decade to varied environments and interaction with professional network and other social platforms that I have built over, will enable me to make constructive and valuable contribution to CA fraternity and WIRC.

Thank You!

My Vision for ICAI

I humbly put forward the following points which I strongly feel about to be my core agenda but most importantly I present myself to you as your voice and your representative in the council.

1. Work for providing proper infrastructure for fresh Chartered Accountants.

Presently, Fresh Chartered Accountants who wish to opt for practice have to incur monthly fixed expenses of 40-50K approx per month irrespective of the professional inflows. Institute has a lot of underutilized space within its premises. Why can’t these spaces be allocated to fresh members free of cost with all infrastructure like wi-fi, printer etc, where they can have client meetings. This will save the initial fixed cost of members.

2. Ensure reservation/ preference for CA’s with less than 5 years of experience.

The reservation can be for certification work, Society Audits, Stock/concurrent/expenses Audits of Banks, MCA Audits, and NREGA audits under quality supervision. Such reservation will promote members to come in practice and will also help members to plan their practice and specialization.

3. Introduction of concept of Industrial training

There has to be a change in CA Curriculum and should be made more practical. What is the use of doing audits under article ship for members who wish to go for service in the industry. Instead, the CA course should specifically give an option to the members during last year of article ship to opt for Industrial Training. This will help members to adapt to the corporate culture. The Institute has to play an active role in inviting the big corporate houses to shortlist/ select the articles. Once the Training period is over, the company can absorb the member.

4. Campus placement for both young and experienced Chartered Accountants.

At present, the institute arranges campus placement only for fresh Chartered Accountants. I seriously want to extend this placement program for experienced chartered accountants as well.

5. Work from the home concept for female chartered accountants, who wish to work but due to family commitments, post marriage, are compelled to give up their professional dreams.

6. Minimum recommended fees for professional services should be made mandatory and should not be recommendatory in nature.

7. CA Curriculum to be made more practical.

The CA course should be divided into two parts: Part 1 of 30 months only for members who wish to opt for service and Part 2 of additional 9 months for members who wish to go for practice. The COP should be issued only after the member completes Part 1 and passing the exam of an additional subject, which is to be taught in these nine months. The additional chapter should include Valuation, International Tax, Business Finance, System Audits, Forex/ Treasury management and SAP.

8. Reconnect the members in the industry with the Institute.

9. Online portal for the job vacancy and resume update.

10. Establish a separate dedicated desk for Career Counseling at each branch.

11. Result oriented chase for online Voting in ICAI Elections.

12. Establish Tax Clinic at the branch level to resolve queries from industry experts.

13. Ensure reduction in participation costs of various seminars to increase participation.

14. Recommend CPE hour credits for participation in the meetings, seminars, courses conducted by BCAS/ CTC/ other registered bodies beyond 20 hours.

15. Ensure steps for encouraging professional networking amongst the members.

I know it may be contested that some of the above agenda fall in the ambit of Central Council and not under Regional Council. But friends, you too will appreciate that there has to be someone in Regional Council who can push the Central Council members to work and bring the above changes. I promise you of my constant interaction during my tenure as your representative to take your suggestions/grievances and find reasonable solutions at WIRC level. While it is my earnest desire to meet and greet you in person, you will appreciate that owing to our vast constituency and the time constraint, it may not be feasible logistically. I would, therefore, sincerely request you to treat this communication as my personal appeal to you.

In the end, I hope that no member would waste his franchise and throw away his vote by voting for anyone solely on account of his religious, social or cultural affinity. When I have to choose between voting for the people or common special interests, I always stick with the special Interest. People forget common special interest remain. And with the above background, I request you to kindly support me in this endeavor by casting 1st Preference/Best Preference Vote in my favor.

Thank You!

Single transferable system of voting – An appraisal

The next elections to the Council and Regional Councils of the Institute will be held on 4th and 5th December, 2015 at Ahmedabad, Bangalore, Chennai, Delhi/New Delhi, Gurgaon, Hyderabad, Jaipur, Kolkata, Mumbai, Pune, Surat and Thane and on 5th December, 2015 at all other places where polling booths have been set up. The members especially those who are new would, naturally, be interested in knowing how the “single transferable vote” system under which the elections are held operates. The broad details of the system are given below:

1. Each voter has only one vote for election to the Council and one vote for election to the Regional Council. The voter, in order to cast his vote, shall place on his ballot paper the number 1 (in Arabic or Roman numerals, or in words) against the name of the candidate for whom he desires to vote, and may, in addition, place on his ballot paper the number 2, or numbers 2 and 3, or the numbers 2, 3 and 4 and so on opposite the names of other candidates in the order of his preference. A voter has as many preferences as the total number of candidates from that Regional Constituency/ Regional Council. However, for the purpose of facilitating the process of election by avoiding fractions, each valid vote is notionally considered to be of the value of 100 so that if a part of the vote has subsequently to be transferred from one candidate to another (next in the order of preference), it does not become necessary to resort to fractions, which would make the counting cumbersome.

2. At the time of counting of votes, the covers containing the postal ballot papers are opened and the voting papers are separated. To these are added the voting papers taken out from the ballot boxes used at different polling booths. The ballot papers are, in the first place, examined and invalid papers are rejected and excluded from the process of counting. The total value of the valid votes is then calculated by multiplying the number of such votes by 100, as mentioned above. This total value is then divided by the number of vacancies increased by one, and the quotient increased by one gives the value that is required for any candidate to get elected. This figure is termed as the “quota”. Thus, if in a constituency, eight members are to be elected and there are 4,500 valid votes, the quota will be:-

4500 x 100
---------------- + 1 = 50,001
8+1

In other words, a candidate should get 50,001 votes to get elected. The addition of one to the quotient is explained by the fact that if it is not done, there is a possibility that more candidates may get elected than the number of vacancies.

The First Count

3. After working out the “quota”, the votes are sorted out and divided into parcels according to the candidates for whom the first preference is marked on the respective votes. The value of the first preference votes received by each candidate is then worked out and the process is known as the first count.

4. All the candidates, the value of whose votes is equal to or greater than the quota, are declared elected. The votes of the candidates who obtain exactly the quota are set aside as there is no question of transfer of any surplus from those votes.

Transfer of Surplus and Subsequent Counts

5. Then starts the process of transfer of the surplus values of the votes of those candidates who have secured more than the quota at the first count. Their cases are taken one by one in the strict order of the value of their votes, the largest surplus being dealt with first. In case no candidate obtains the quota in the first count, exclusion of candidates is resorted to (see para 12).

6. The votes of the candidate whose surplus is to be transferred are scrutinized and all those votes which are capable of being transferred (viz., on which the next preference is marked for a candidate, who has not already been elected, or if the next preference is marked for an elected candidate, the preference marked next to that and so on) are separated. The remaining votes which are not capable of further transfer are set aside and treated as exhausted.

(7.1) Before the votes are transferred to the candidates marked next in preference, a new value of each vote is worked out. This value is arrived at by dividing the total surplus of the candidate by the number of votes to be transferred, the remainder being ignored, subject to the condition that the new value does not exceed the original value at which the vote was received by the candidate whose surplus is being transferred (viz., 100 in the case of first preference votes).

(7.2) Thus, if after the first count, a candidate has a surplus of 2,962 and there are 65 votes in his parcel which are capable of being transferred, each vote will be transferred at the new value of (2,962÷65) 45. The remainder of 37 [2962-(65x45 = 37)] is treated as loss in value.

8. The votes under transfer are then divided into parcels according to the candidates to whom they are to be transferred. The parcels of the transferred votes are also added as sub-parcels to the parcels of original (viz., first preference) votes of the candidates concerned. The total value of the votes going to a particular candidate is obtained by multiplying the new value of each vote by the number of votes going to him and is added to the value of his original votes. The result of the transfer is then struck out and the candidates who obtain at this stage the “quota” are also declared as elected.

9. This process of transfer of the surpluses of the elected candidates continues till the required number of candidates are elected or till all the surpluses have been dealt with.

10. As already stated, the surpluses are transferred in the strict order of their value, but all surpluses arising at an earlier count are disposed of before the surpluses arising at subsequent counts are taken up.

11. In the case of transfer of surplus of a candidate who was not elected at the first count but only as a result of transfer of some votes to him at a subsequent count, since the surplus arises out of the last sub-parcel of his votes, it is only the last sub- parcel that is scrutinized and the unexhausted votes contained therein which are capable of further transfer are revalued, in the manner stated in para 7.1 and 7.2 above, and then transferred to the candidates marked next in order of preference. If there is no vote in the last sub-parcel which is capable of further transfer, the whole of the surplus is treated as loss in value.

Exclusion of Candidates

12. When there is no surplus left for transfer and the number of candidates elected is less than the number of seats, the exclusion of candidates is resorted to. The process of exclusion comprises the transfer of votes (both original and transferred) of the candidate to be excluded to the candidates marked next in order of preference and who have not already been elected or excluded.

13. The candidate, the value of whose votes is lowest at the time of exclusion, is first excluded.

14. The parcels and the sub-parcels of the votes of the candidates to be excluded are taken up one by one in the order in which they were received and the votes contained in each parcel and sub-parcel which are capable of further transfer are transferred to the candidates marked next in order of preference at the same value at which they were received by him. Each parcel and sub-parcel is dealt with separately. It is only after the parcel and all the sub-parcels have been duly transferred that count is completed.

15. If, as a result of transfer of votes of a parcel, or a sub-parcel, any other candidate secures the quota and is elected, the count in progress is completed but no further votes are transferred to the elected candidate from the subsequent sub-parcels. The following example would make it clear. Let us suppose that the votes of candidate “A” who is to be excluded consist of the original parcel and two sub-parcels subsequently transferred to him. Suppose as a result of the transfer of votes contained in the original parcel, another candidate “B” gets elected. Then the remaining two sub-parcels will be dealt with one by one but no vote therefrom will be transferred to candidate “B” and such of the votes as would have normally gone to “B” will now be straightaway transferred to the candidates marked next to “B” in the order of preference on the respective votes.

16. The process of exclusion continues till the requisite number of candidates has been elected or the number of candidates left in the field (i.e., the continuing candidates) is equal to the number of vacancies still unfilled.

17. If, as a result of any exclusion, another candidate gets the quota and is thus elected, no further exclusion is done till the surplus of the elected candidate has been transferred and it becomes necessary thereafter to again resort to exclusion. In other words, a candidate is to be excluded only when there is no surplus to be transferred.

(18.1)If, at any time during the course of counting of votes, the number of candidates remaining in the field is reduced to the number of vacancies not yet filled, all those candidates are declared as elected without resorting to any further calculations.

(18.2)It, therefore, follows that a candidate may be elected even though he does not get the required quota.

19. If at a particular time only one vacancy is left unfilled and the value of votes (both original and transferred) of anyone continuing candidate at that time exceeds the total value of votes of all the other candidates left in the field, including the surplus of any candidate not yet transferred, that candidate is declared as elected.

20. When after counting of votes, a tie is found to exist between candidates, regard is given to the original votes and if the original votes are also equal, then the process of draw of lots is resorted to. In case of tie amongst more than two candidates, the candidate whose slip is picked up is excluded from the poll. If the tie is between two candidates, the candidate whose slip is picked remains in the poll or declared as successful, as the case may be.

- CA Kasliwal Ambar