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!

CBDT working towards making AO-taxpayer communication hassle-free through email

Use of email based communication for paperless Assessment Proceedings-reg.

F. No. 225/267/2015-ITA-II
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
NEW DELHI

Dated: October 19, 2015

To

The Principal Chief Commissioners of Income-tax, Delhi / Mumbai / Bengaluru / Ahmedabad / Chennai

Subject: Use of email based communication for paperless Assessment Proceedings-reg.

1. In order to improve the taxpayer services, enhance the efficiency and to usher in a paperless environment for carrying out the assessment proceedings, CBDT has decided to initiate the concept of using email for corresponding with taxpayers and sending through emails the questionnaires, notice etc. at the time of scrutiny proceedings and getting responses from them using the same medium on a pilot basis. This would eliminate the necessity of visiting the Income-tax Offices by the taxpayers, particularly in smaller cases, involving limited issues and where taxpayer is able to provide details required by the AO without necessitating his physical presence.
2. Steps are being taken by CBDT to devise suitable mechanism for setting up a standardized platform for making such email based communications between the taxpayer and the Income-tax Department seamless and user friendly. To start with, it has been decided to launch a pilot project in this regard in five non-corporate charges at Delhi, Mumbai, Bengaluru, Ahmedabad & Chennai stations. Initially, 100 cases for e-hearing could be identified in each of these charges and major part of assessment processing should be conducted in electronic mode. Also, the cases covered under the aforesaid pilot project should be those which have been selected for scrutiny on the basis of AIR/CIB information or non-matching with 26AS-data. Consent of taxpayers should also be obtained in the beginning and cases of only willing taxpayers be considered under the pilot project. The officers of the Department, through their official e-mail IDs, can interact with the taxpayers at their e-mail IDs as mentioned in the respective returns of income.
3. Board desires that necessary steps may accordingly be taken for initiating the pilot project on top priority.

(Rohit Garg)

Deputy Secretary to the Government of India.

- CA Kasliwal Ambar

Do Last Minute Bookings help you save money?

The early birds may not get to fly cheaper any more. Airlines seem to be reducing fares closer to the travel date, an analysis of tickets on offer for travel on six key sectors showed. The fares quoted for travel on October 17 were more expensive when booked 30 days in advance than 10 days.

These select trunk routes have seen capacity addition by airlines in recent times.

"With the added capacity on the top metro routes, and lower load factors in the first half of October compared to last year, airlines have reduced fares closer in to get more people to fly," said Amit Taneja, chief revenue officer at online travel portal Cleartrip.

The lower fares benefit customers and airlines are also seeing higher overall revenue as the lower fuel prices enable them to operate profitably even at low fares, said Taneja.

About 63 flights operate from Delhi to Mumbai and vice versa. Other city pairs like Bengaluru-Mumbai and Mumbai-Hyderabad have 32 and 21 daily direct flights, respectively, and many more flights with stopovers. Pune and Chennai and Kolkata-Bengaluru have seven and 12 flights, respectively.

Airlines added about 18% seats this year, in sync with over 20% growth in passengers that the domestic market registered between January and August. In all, airlines offer about 300,000 seats on domestic sectors.
Another industry watcher said the airlines are reducing fares closer to the departure due to lower bookings. "The reason we are not seeing a lot of advance bookings is because people are spending less. Less expenditure by people is due to the economic situation, which is not in the best of health," said Ajay Prakash, former president of Travel Agents Federation of India and a travel agent.

Prakash said the demand for advance bookings is still not high despite airlines offering lower fares on the back of cheaper fuel. The airlines are also offering cheaper last-minute fares, as much as 47% lower than that last year over the recent long weekends.


When it comes to airfares, dynamic pricing seems to be an evolving concept. What's required is transparency, so that consumers know when to avail the best rates. A rule of thumb used to be to book six weeks ahead and avoid weekend schedules.

That may have run its course. One no-frills carrier wants passengers to purchase tickets three months in advance for the lowest fares. The way ahead is to better match vacant seats with demand for more attractive fares. It pays to repeatedly check and compare fares online.

-- CA Kasliwal Ambar

Avoiding complaints from your clients' may affect your firms reputation.

Dear Friends,

Research shows that as many as 66% of disgruntled clients' will most likely choose not to work with you again, for a faulty solution or experienced bad service. (Source : Google)

Here are seven ways to avoid losing clients — and save your reputation.

Tip #1 : Show that you care

Listen to what your client has to say to determine the problem and offer a quick resolution. It's important to stay professional and avoid getting emotional, but it's equally important to show your human side and demonstrate that the client is not just another number for you.

Just in case you need numbers to actually care: A 2014 study suggests that a completely satisfied client contributes 14 times as much revenue as a somewhat dissatisfied one (Source : Google)

Tip #2 : Throw away template answers

You should take a one-on-one approach for every aspect of your communication with your client. Generic copy-paste emails won’t do. Your voice and professional opinions need to be heard and, most importantly, you need to match them to your client's situation and to the solution you are providing.

Show your client a personalized approach and try to put yourself in your clients' shoes before you answer. Research suggests that more than 55% of your clients will be willing to pay more for better client service. And better means more individualized and personalized attention. (Source : Google)

Tip #3 : Avoid lengthy discussions

Try to focus on facts and don't get yourself dragged into disputes over who's right and what's right.

Proving your point will not get you any extra client love. Your clients – even those most upset – expect to be listened to, encouraged that their issue will be taken care of, and offered a resolution.

In a typical business, 42% of client service agents are unable to efficiently resolve customer issues due to disconnected systems, archaic user interfaces and age-old methods. (Source : Google)

Don’t close yourself off in a golden cage of old structures. Take the road less travelled.

Tip #4 : Offer a fast and effective solution
Unhappy clients will keep contacting you until you resolve their problem and make sure that help is coming. It's important for you to offer quick and reliable assistance. At the same time, you need to be realistic and not over-promise.

2012 research indicates that 33% of clients would recommend someone that provides a quick response, even if that response is ineffective. (Source : Google). This speaks about the need of time-efficient response to your client’s needs.

As long as you stick to the facts, you will gain clients' gratitude for responsibly handling their issues. You already have the skill set and experience to make the best possible short-term solution in a short amount of time. Be honest with your client about their options.

Tip #5 : Don't let the issue escalate

Finding a solution may take some consultations and follow-up, but remember that in the world we live in today, clients(especially those disgruntled ones) count on fast resolution. If they don't get it, they'll go on Facebook or Twitter to voice their frustration. Don't ignore any complaint; deliver what you promised and don't let the issue escalate to the point where it causes your firm, a loss of reputation.

Nowadays, your client is twice as likely to post a negative review about your client relationship as opposed to a positive one, and they are four times more likely to switch to the competition if they are dissatisfied with the service.

This is not to say you have to seal any issue that might have presented itself and never speak of it in public. When it comes to issue resolution, think fast and act faster. But don’t be afraid to give a creative apology if your client has been damaged by the issue.

Tip #6 : Train your staff so they can do their job right

This one is well-meant advice for those of you who employ more than just yourself in your client relationships. Your client service personnel are always out there on the battlefield, handling debates with unhappy clients and trying to put-out fires. Make sure they have all the support they need to assist and support others.

Share with them the company's values and guidelines so that they are never surprised by a question from a client; collect feedback from clients and try to improve your services as much as possible; show your staff what is doable and what is not doable when handling complaints; invest in brainstorming and training sessions so that they can provide top quality service. Don't be shy to include new market solutions that will save them time and effort.

Tip #7: Minimize negative reviews

Negative reviews can be very costly for your business. Show your clients you are ready to listen to their complaints before they go and rage about your service.

Resolve their problem fast and effectively by providing client service by phone, mail, skype etc. Your clients will reward you by staying with you — instead of choosing another professional.

-CA Kasliwal Ambar

Maharashtra Govt. decides to hike Stamp Duty

The Maharashtra government has decided to allow a 1 per cent increase in stamp duty on property transactions, which will increase overall costs for home buyers in Mumbai, the country’s most expensive real estate market.

The Cabinet had on Tuesday approved a proposal for the increase in stamp duty on property transactions to fund major transportation projects such as the Metro and Monorail corridors. With this, the stamp duty in Mumbai will go up to 6 per cent although senior officials in the revenue department admitted that the Centre had issued guidelines urging states to cap stamp duty on property transactions at 5 per cent. The new rate will come into effect once the government issues a notification.

Senior officials also confirmed that the state government was actively considering a move to levy cess on Transferrable Development Rights (TDR) certificates as means to raise additional revenue. With increased revenue expenditure and revenue collection below par worsening the state’s overall financial position, the finance department is pushing for the move, sources confirmed.

CA Kasliwal Ambar

Property prices will be hit by tax on unsold inventory held by developers and builders

According to tax authorities, real-estate companies should have to pay tax based on Annual Letting Value (ALV) on unsold flats as they are the owners of the flats and it does not matter whether the properties are rented out or not.

In a bid to arrest hoarding of residential flats by developers and increase supply across the country, the income-tax department has decided to tax realtors on estimated annual rentals.


The tax could be anywhere between 15% and 20%. The move is as per the central action plan for 2015-16, under which the I-T department can levy tax on any unsold flat by treating it as 'income from house property' under Section 43-CA of the I-T Act, 1961.
According to tax authorities, real-estate companies should have to pay tax based on Annual Letting Value (ALV) on unsold flats as they are the owners of the flats and it does not matter whether the properties are rented out or not.

This means inventory of builders will be taxed on the basis of notional ALV -- a value on which tax has to be paid on the annual value of house property or the rent actually earned, whichever is higher.

A senior IT official said, "The builders' lobby has been creating artificial scarcity through hoarding of flats, only to sell them at higher prices later".

It has been noticed that this practice has been in vogue for over a decade and such flats or stocks are shown 'unsold' in the books of accounts while the main aim was to rig the prices upwards, said a tax official on condition of anonymity.

Taxing unsold stocks will help in two ways, according to a senior I-T official. One, this brings significant revenue, and second, it will force real-estate players to either sell their unsold flats at market-determined price. "Paying tax will further affect their bottomlines," the official, who did not wish to be named, told dna.

According to a recent report on the real-estate market in India by an international property consultant, unsold flats in six major cities hit the highest at 6.88 lakh units in the January-March quarter.

According to the report, it will take 72 months for builders to clear the inventory in Delhi-NCR and 46 months in Mumbai.

So far, unsold projects of builders were exempted from income-tax under the 'stock-in-trade' category. The I-T department believes builders would release more flats into the market, if they have to pay tax on them.

"Real-estate companies show their finished apartments as stock-in-trade and income from these are shown as business income, as in most other businesses. In a rising market, several developers hold apartments to benefit from the price appreciation that will accrue a few years after the project is complete," said a real-estate consultant.

A few years ago, when there was an attempt to tax such unsold stock, builders had moved court. However, the court gave a judgment in favour of the department in 2012.

The court had validated the I-T department's argument that builders will have to pay tax based on the ALV method, irrespective of the fact that these flats were not rented out. The department has now decided to levy this tax uniformly across the country after the proposal was cleared by the finance ministry.

- CA Kasliwal Ambar

AUDITORS SHOULD NOT AFFIX THEIR DIGITAL SIGNATURE IN ROC RETURNS

Forms for annual filing have been released today. The two forms ie Form 23AC and ACA have been replaced by a single Form AOC-4.

Now every company needs to file its balance sheet in Form AOC-4

Form AOC -4 is required to be certified by any CA CS or ICWA in practice by subscribing to the declaration that the respective professional has been duly engaged for certification of the said form.

As per the provisions of section 144 of the Companies Act 2013 certain services can't be rendered as an auditor, which includes “management services”

Management services means services rendered on behalf of Management, which management itself is oblige to do.

E.g.

Preparation and filling of:
· Income Tax Return
· ROC Return
· Service Tax Return
· VAT Return
· TDS Return
· Excise Return

This can be planned to comply with the provision.

- CA Kasliwal Ambar

CASA Daily News Alert

>> TAR/ITR Extension Case:

Writ Petition filed against non extension of Due date of TAR/ITR filing for cases covered under Tax Audit Provisions in various High Courts (Gujarat, Delhi, Jodhpur, Karnataka, Orrisa, Mumbai and in Punjab & Haryana) - Cases adjourned for Hearing / Cases Listed for Final Hearing later. ICAI Meeting with FM: No Concrete Decision on TAR/ITR Date Extension.

>> CBDT has updated the tax audit utility today by updating utilities for form 3CA CD, form 3CB CD and form 10B. So please take care and in case you are using tax filling software ask your vendor to update software.

>> ICAI: Exposure Draft of Changes in Ind ASs as a consequence of deferment of Ind AS 115, Revenue from Contracts with Customers, for Public Comments issued

>> MCA Updates: New forms (AOC-4, MGT-7, ADT-2, SH-9) will be available from 25-09-2015. Versions of CRA-4 & CHG-4 are likely to be modified w.e.f. 25-09-2015.

>> SEBI has issued circular under Regulation 27(2) of the SEBI(Listing obligations and disclosure requirements) Regulations, 2015 read with regulation 101(2) (Clause 49 of the existing listing agreement), which provides for the format for compliance report on corporate governance to be submitted to the Stock exchanges by the listed entities.

>> Case Study: Bombay High Court held In the case of M/s Nagpur Engineering Co. Pvt. Ltd. vs. CIT. that in order to attract ceiling u/s 40(c), the payment must be a periodical payment. A Lumsum payment or one time payment is not covered under section 40(c) of Income Tax Act

- CA Kasliwal Ambar

GST Update

Companies with an annual turnover up to Rs 25 lakh might be exempted from the proposed national goods and services tax (GST). The Centre and states are likely to settle for this threshold as they finalise the GST laws.

According to finance ministry officials, the draft of these laws is expected to be ready by the end of this month. The Centre and states are working on a mechanism to avoid dual scrutiny of companies by them. "The thinking now is that all legal entities with an annual turnover of up to Rs 25 lakh will be completely exempt. This will be applicable to one TIN (Taxpayer Identification Number)," said a ministry official.

The government is looking to reconvene Parliament's monsoon session to get the Constitutional amendment Bill on GST passed in the Rajya Sabha. Three Bills - on the Centre's GST (CGST), states' GST and Integrated GST -would come up after the Constitutional Bill is cleared. Work on the drafts is on.

States wanted a threshold of Rs 10 lakh to protect their revenue, while the Centre has assured them full compensation for five years. Besides, firms with an annual turnover between Rs 25 lakh and Rs 75 lakh will have an option to pay a flat rate of one per cent or GST rate. If they decide to opt for one per cent rate, firms will not get input credits because of which many, particularly dealers, may choose the GST rate.

The exemption limit from value added tax and service tax across states - except the North-East - is close to Rs 10 lakh turnover. "There will be an impact on revenue but it will depend on how many under the Rs 25 lakh to Rs 75 lakh annual turnover bracket opt for the one per cent rate. If 60-70 per cent opt for it, there will be loss of revenue for states but they will also get compensated by the Centre," said Bipin Sapra, tax partner, EY. From the manufacturing point of view, it was important to keep the exemption limit higher, he added.

While these are likely to be part of the GST laws, a final decision on this is to be taken by the yet-unformed GST Council. This is to be constituted within two months of enacting the Constitution amendment. It would comprise the Union and state finance ministers and will be empowered to take key decisions on GST.

The idea is that entities with a turnover of up to Rs 75 lakh will not attract any checks or audits from either the state or the Centre. The Centre will give states a free run on compliance checks for companies with annual turnover above Rs 75 lakh and up to Rs 1.5 crore. "Here, the Centre will only do online scrutiny. And, if states detect non-compliance with respect to CGST, only the Centre will issue a notice. States cannot issue a notice on our behalf," said an official. However, in case of companies with annual turnover of more than Rs 1.5 crore, there will be concurrent audits by both the state government and the Centre.

"The government is still discussing a mechanism of a risk-based selection so that the checks by Centre and states do not overlap," said the official.

The government on Sunday made a renewed appeal to Opposition parties to help pass the Constitutional amendment through an extended monsoon session. It is vital that this be cleared at the earliest for the government to stick to the GST implementation timeline of April 1, 2016. The three draft legislations will lay down the fine print of the uniform indirect tax regime.

- CA Kasliwal Ambar

Service Tax on Home Delivery of Food not applicable

As per Govt norms, Service Tax is levied if the Food is served in an Air Conditioned Restaurant.

However, there has been a lot of confusion regarding levy of Service Tax on Home Delivery of Food as such food is not being eaten in a AC Restaurant.

A clarification in this regard was sought from the office of the Deputy Commissioner of Central Excise and Service Tax Division (Chandigarh) in this regard.

It has in a written communication replied that in the case of Transaction involving Pick-up/ Home Delivery of food sold by a Restaurant, the dominant nature of the transaction is that of Sale and not service as the Food is not served at the Restaurant.

Moreover, no element of service is being offered at the Restaurant, be it ambience, live entertainment, air conditioning, personal hospitality etc. The Service Tax can only be levied if there is an element of "Service" involved which would typically be the case where the food is served in a Restaurant.

Therefore, the above transaction is not chargeable to Service Tax, being sale in nature, only if, no amount is charged for such free delivery of food.

- CA Kasliwal Ambar