Untimely demise of our close friend CA L Seshadrinathan, Chennai

Sad to inform about the untimely demise of our close friend 
CA L Seshadrinathan, Chennai (Partner, M/s, Sanjiv Shah & Associates) 
at Manmad in a train accident.

We pray Almighty to grant peace to the departed soul and give his family members abundant strength to overcome this grief moment.

- CA Dungar Chand U Jain

Sec. 234E; HC upholds constitutional validity; Fee charged for late filing of TDS return isn't a tax

The fee sought to be levied under section 234E is not a tax that is sought to be levied on the deductor. The provisions of section 234E is not onerous on the ground that the section does not empower the AO to condone the delay in late filing of the TDS return, or that no appeal is provided for from an arbitrary order passed under section 234E

Facts :

a) Petitioner, a practicing Chartered Accountant, challenged the constitutional validity of section 234E. Section 234E seeks to levy a fee of Rs.200/- per day (subject to certain other conditions) inter-alia on a person who deducts Tax at Source and then fails to deliver or cause to be delivered the TDS return to the authorities within the prescribed period.

b) He argued that legislature had categorically termed the levy under section 234E of the Act as a "fee", it necessarily could be levied only in the event the Government was providing any service. In the absence thereof, the said section seeks to collect tax in the guise of a fee. This, according to the learned counsel, was impermissible either in common law or under the taxing statute, and encroached on the rights of life and liberty of the citizens.

c) He further submitted that the provisions of section 234E were extremely onerous as the AO was not vested with any power to condone the delay in filing the TDS return and there was also no provision of appeal against order of AO.

The High Court upheld the constitutional validity of Section 234E and made following observations:

1) There is an obligation on the Income Tax Department to process the income tax returns within the specified period. Department cannot accurately process the return until information of TDS is furnished by the deductor within the prescribed time.

2) If the income tax returns having refund claims were not processed in a timely manner, it would result in delay in issuing refunds or raising of infructuous demands. Late payment of refund also affects the government financially as the Government has to pay interest for delay in granting the refunds.

3) The Legislature took note of the fact that a substantial number of deductors were not furnishing their TDS returns within the prescribed time frame which was absolutely essential. This led to an additional work burden upon the Department due to the fault of the deductor by not furnishing the TDS returns in time. It was in this backdrop, and to compensate for the additional work burdened upon the Department, that a fee was sought to be levied under section 234E. Thus, section 234E is not punitive in nature but a fee which is a fixed charge for the extra service which the Department has to provide due to the late filing of the TDS statements.

4) A right of appeal is not a matter of right but is a creature of the statute, and if the Legislature deems it fit not to provide a remedy of appeal, so be it. Even in such a scenario it was not as if the aggrieved party was left remediless. Such aggrieved person could always approach this Court in its extra ordinary equitable jurisdiction under Article 226 / 227 of the Constitution of India, as the case may be. Therefore, we do not agree with the argument of the Petitioners that simply because no remedy of appeal was provided for, the provisions of section 234E were onerous. - Rashmikant Kundalia v. Union of India (2015) 54 taxmann.com 200 (Bombay)

Full text link 1:

http://itatonline.org/archives/wp-content/uploads/Rashmikant_Kundalia_234E.pdf

Full text link 2:

https://drive.google.com/file/d/0B-0hzoMM8_XZNjhoUGhmYk90bEk/view?usp=sharing

‘Quick Heal Total Security for Android enabled Mobile phones’ software at special price for the Members & Students of ICAI

Arrangement of the ‘Quick Heal Total Security for Android enabled Mobile phones’ software at special price for the Members & Students of ICAI by the Committee for Capacity Building of CA Firms and Small & Medium Practitioners(CCBCAF&SMP), ICAI

Quick Heal Total Security for Android enabled Mobile phones’ software has been arranged for the registered members, students & staff of ICAI from M/S Quick Heal Technologies Pvt. Ltd., Pune at discounted price. The ‘Quick Heal Total Security for Android enabled Mobile phones’ software is an antivirus software with features like Virus Protection, Call Blocking, SMS Blocking, SMS Spam Protection, Data Protection Anti-Theft, Mobile Tracker (using GPS), Remote Mobile Locking, Device Control through Web Portal (RDM), Scanning and Unlocking Commands, Improved Device Tracing, Multi-SIM support, Web Security, Network Monitor, Performance Monitor, Backup and Restore, Secure Delete, etc. The Price of the aforesaid software is Rs 250/- plus applicable taxes for 2 years.

The Members are requested to visit http://www.quickheal.co.in/home-users/quick-heal-total-security-for-android for purchasing the software. The member is required to fill the blank titled ‘Duration’ by entering the option ‘2 years’ from the drop down menu and click on ‘Buy Now’. Thereafter an window will pop out and the member is required to click ‘buy now’ to confirm the placing of the order. The page will then lead to another page where the member is required to put in the quantity of softwares needed and the coupon code which will be provided by the Committee Secretariat by email and click on ‘Apply’. The price of the software will appear at the right hand side. The member should click on ‘Buy online’ by providing the required information.

N.B.-Members are requested to get in touch with CCBCAF&SMP Secretariat for the arrangement of the Coupon Code for the same at E-mail: ccbcaf.software@icai.in

Source : http://www.icai.org/post.html?post_id=11019

CBDT Extension for Due date of ITR for 44AB / Tax Audit Cases A.Y 2014-15

CBDT Order / Notification to give effect awaited.


1) Bombay HC ask CBDT to Consider Extension of ITR due Date to 30-Nov-2014

2) Madras HC suggests CBDT to extend due date of ITR to 30-Nov-2014

3) Gujarat HC : Appeal Disposed off in favour of Petitioner and High Court Instructed CBDT to extend due date to File Income Tax Return in Tax Audit Cases for A.Y. 2014-15  to 30.11.2014 but allowed to levy Interest U/s. 234A of the Income Tax Act,1961.

Bombay HC ask CBDT to Consider Extension of ITR due Date to 30.11.2014 - See more at: http://taxguru.in/#sthash.L9KuajJr.dpuf

Bombay HC ask CBDT to Consider Extension of ITR due Date to 30.11.2014 - See more at: http://taxguru.in/#sthash.L9KuajJr.dpuf

IT Efiling update : PR2 Version released - Tax Audit Utility

Income Tax Efiling update :

PR2 released for Form 3CA_3CD and 3CB_3CD for AY 2014-15 :

Those uploading Tax Audit Report please note that you generate XML by using the updated utility from IT efiling Site
“FORM3CA3CD_AY201415_PR2.jar” or “FORM3CB3CD_AY201415_PR2.jar” as the case may be...

Link for Form 3CA3CD :
https://incometaxindiaefiling.gov.in/eFiling/Portal/DownloadUtil/FORM_UTILITY/FORM3CA3CD_2014.zip

Link for Form 3CB3CD :
https://incometaxindiaefiling.gov.in/eFiling/Portal/DownloadUtil/FORM_UTILITY/FORM3CB3CD_2014.zip

The same is updated on 08-Sep-2014.

For those who have saved draft using the old utility, can open the draft file using the latest utility, generate XML and have a hassle free upload...

Happy E-filing...

There is nothing permanent except change.
- Heraclitus

Due date for Tax Audit for the year ending 31-Mar-2014 extended

 Due date for Tax Audit for the year ending 31-Mar-2014 extended to 30-Nov-2014

Source : http://incometaxindia.gov.in/archive/Order-Under-Section%20119-20-08-2014.pdf

SIRC Conference 2014 at MADURAI

countingdownto.com

Government Decides to Keep in Abeyance the Decision to Change the Procedure for Pan Allotment Till Further Orders

The Central Board of Direct Taxes (CBDT) has decided to keep in abeyance the decision to change the procedure for PAN allotment till further orders. Accordingly, the operation of Circular No. 11 dated 16.01.2014 issued to PAN service providers has been directed to be put on hold till further orders. In the meantime, the old procedure of PAN application and allotment shall continue.

*********

 DSM/MJPS/KA
(Release ID :102868)

Source : http://www.pib.nic.in/newsite/erelease.aspx?relid=102868

Procedure for Pan Allotment Process to Undergo a Change with Effect from 3rd february, 2014

Print Release

Press Information Bureau
Government of India
Ministry of Finance

24-January-2014 14:31 IST

Procedure for Pan Allotment Process to Undergo a Change with Effect from 3rd february, 2014

The procedure for PAN allotment process will undergo a change with effect from 03.02.2014. From this date onwards, every PAN applicant has to submit self-attested copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN Facilitation Centres. The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN Facilitation Centre. Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.

*******

DSM/KA

Source : http://pib.nic.in/newsite/PrintRelease.aspx?relid=102709

Tax Audit Limit increased from 45 to 60

Tax Audit Limit Increased From 45 to 60 for audits conducted during the financial year 2014-15 and onwards.

In view of the enhancement of professional competence of members to perform quality services in an IT-enabled environment, the Council of the Institute at its 331st meeting held from 10th to 12th February, 2014 has decided to increase the "specified number of tax audit assignments" for practicing Chartered Accountants, as an individual or as a partner in a firm , from 45 to 60. The said limit will be effective for the audits conducted during the financial year 2014-15 and onwards. Accordingly, the Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008 stands amended from 1.4.2014 as under:-   In the Council General Guidelines, 2008, the Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008, in Chapter VI "Tax Audit assignments under Section 44AB of the Income-tax Act, 1961 ", in Explanation given in Para 6.1, in sub-para(a) and sub-para(b), the figure "45" be substituted with the figure "60".

Source : http://www.icai.org/post.html?post_id=10354
 

Penal provisions for the members of the Institute who had not complied with their CPE Hours requirements for the block period of 3 years (1-1-2011 to 31-12-2013)

For kind information of the members

Sub : Penal provisions for the members of the Institute who had not complied with their CPE Hours requirements for the block period of 3 years (1-1-2011 to 31-12-2013)
In order to function the system of mandatory CPE effective, the Council of the Institute of Chartered Accountants of India has decided that the members who fail to comply with their CPE Hours requirement for the current block of 3 years (1-1-2011 to 31-12-2013) are appropriately sanctioned. Therefore, the Council of the Institute has decided as under :

 All the members are required to complete their CPE hours requirements for the block period of 3 years (1-1-2011 to 31-12-2013) by 31st December, 2013.

• Any shortfall in the CPE credit for the calendar years 2011, 2012 and 2013 should be met by the members by 31st December, 2013.
• The names of the members who fail to comply with their CPE hours Requirements for the block period of 3 years by 31st December, 2013 would be hosted on the website of the ICAI for information of public at large.
• Further, the ICAI will not be responsible in any way for any action taken by any of the regulatory authorities on the basis of the names hosted on the website for allotting the professional work to them as sole proprietor or to their partnership firm.
• To strike out the name/s from the list so hosted on the website, the member/s  shall have to make up any shortfall in their CPE credit hours for the above block period of 3 years by obtaining twice of the amount of the shortfall.  Such addition shall be in addition to the regular CPE hours requirement for the particular Calendar year in which they are making up the shortfall.

The members are requested to note the above. The members are also requested to comply with the CPE Hours requirements for the current  year by 31st December, 2013.

(Secretary, CPE Committee of ICAI)

ICAI Press Release on Bank Audits

ICAI Press Release

June 12, 2013

The Institute of Chartered Accountants of India (ICAI) would like to clarify that the present limit for Statutory Bank Branch Audit is still Rs.20 Crore (of advances) and not Rs.50 Crore as being erroneously reported in some sections of the media.

 

This is to inform that concerted and strategized efforts are being made to convince the Government to reduce the limit to Rs. 6 Crore, in Public Interest.

 

Source : http://220.227.161.86/30159prc19754.pdf

 

SMP Initiative for Special Loan Scheme for Practicing CAs. - (15-10-2010)

An Initiative of the Committee for Capacity Building of CA  Firms and Small & Medium Practitioners, ICAI

The Committee for Capacity Building of CA Firms and Small & Medium Practitioners, ICAI is set up to promote capacity enhancement of members and firms through Networking, Merger and raising core competency of CA professionals.

The Committee has taken a major initiative to arrange financial assistance to all members in practice / firms in the form of specially designed loan scheme through Corporation Bank.

Through the scheme, eligible Chartered Accountants can avail finance for setting up of offices including cost of furniture/fixture/office equipments-computers and other accessories. The scheme would also enable the Chartered Accountants to finance a part of the working capital for building their profession and will also take care of the needs of fresher (CAs with experience below three years).

* Members & firms are requested to avail the benefits of this loan scheme. For further details, please contact nearest branch of Corporation Bank.

Highlights of the loan scheme are given below:

Eligibility:

 Chartered Accountants, individually/jointly or Proprietorship Concern or a Partnership Firm/ Partnership with Limited Liability

 Age of the individual/ proprietor shall not exceed 65 years.

 The applicants/Firms are registered with Institute of Chartered Accountants of India (ICAI) and also holding valid certificate/license for carrying out the practice.

 The applicant’s/firm’s name shall not appear in the RBI defaulters list/CIBIL report.

 In case of Firms, all partners shall join as co applicants.

 The applicants/firms should not have been subjected to disciplinary action by the Institute.

Purpose:

 For construction of office premises

 For acquisition of ready built new office premises, partly or fully constructed

 To finance cost of land and construction thereon

 To finance cost of furniture & fixture, fittings of office equipments/computers/other accessories etc.

 To finance working capital and /or financing receivable

Nature of facility:

Demand Loan/Term Loan for acquisition of fixed assets and/or Cash Credit/Overdraft for working capital

Margin:

A. For Term Loan/Demand Loan: Uniform margin of 20%

B. For Working Capital: 25% for Book Debts/Receivables for cash credit or clean overdraft

 Value of land shall not exceed 50% of project cost in case of purchase of site and construction of premises
 
Source Link : http://220.227.161.86/20667corpbankloanscheme.pdf

Furnishing remitter details in pass book / pass sheet / account statement for credits received by customers through NEFT / NECS / ECS

Date: Oct 08, 2010

Furnishing remitter details in pass book / pass sheet / account statement for credits received by customers through NEFT / NECS / ECS

RBI/2010-11/230
DPSS (CO) EPPD No. 788/ 04.03.01 / 2010-11
October 8, 2010

The Chairman and Managing Director / Chief Executive Officer of member banks participating in NEFT / NECS / ECS

Madam / Dear Sir,

Furnishing remitter details in pass book / pass sheet / account statement for credits received by customers through NEFT / NECS / ECS

The volumes handled by the retail electronic payment products viz. National Electronic Funds Transfer (NEFT), National Electronic Clearing Service (NECS) and Electronic Clearing Service (ECS) variants are considerably increasing, which is indicative of their acceptability and popularity. Concomitant service delivery levels at banks should match customer requirements and expectations.

2. Complaints about incomplete details about the remitter (or beneficiary) and / or the source of credit (or debit) in the pass books / pass sheets / account statements, as also lack of uniformity across banks in providing even such minimal information are rising. A very generic mention as 'NEFT' or 'NECS' does not help customers in identifying the source of credits, particularly where multiple credits are afforded to their accounts through these products. The Procedural Guidelines on NEFT / NECS / ECS and various circulars issued from time to time clearly highlight the minimum information that should be provided to customers.

3. The Core Banking Solutions (CBS) of banks should be enabled to capture complete information from the relevant fields in the messages / data files which can be displayed to customers when they access their accounts online or provided to them additionally when they approach the branch counters / help desks / call centres. In the interest of straight-through capture of details from messages / data files and standardising the minimum information to be given in the pass books / pass sheets / account statements issued to customers, banks are advised to ensure the following -

a) NEFT

Message N-02 - Inward transactions
The mandatory field 6091 contains the remitter's name, which should be picked up for the source of credit and information contained should be printed in the pass book / account statement. Banks originating transactions should ensure proper and meaningful details are provided in this field. Description of field 6091 is -

M
6091
Sending customer a/c name
50x
Sender’s account name

There is an optional field with tag 7495 that enables inclusion of additional sender-to-receiver information. Destination banks should capture and store this information in their CBS / other systems as appropriate, to be provided to the customer on request.

Message N-07 - Return transactions
M
2006
Related reference number
16x
Transaction reference number of the received inward credit message at bank branch that is returned

M
6366
Rejection code
50x
Description of the reason for rejection

Destination banks may also explore the possibility of using the Unique Transaction Reference (UTR) number to link / retrieve the original message received by them, based on which additional information can be provided as a service initiative when customers make requests online or through call centres.

The extant prescriptions relating to the information to be provided (a) to the remitters for transactions originated by them, and (b) transactions that are returned, shall continue to be applicable.

b) NECS / ECS Variants
The fields "user name" and “user credit reference” (serial numbers '9' and ‘10’ in the credit contra record) have a length of 33 (20 and 13) characters which should be printed in the pass book / account statement.

Sponsor banks need to advise user institutions to fill in these fields meaningfully, so that relevant information is passed on to the customers.

4. In addition to the above, banks are free to provide any additional details as they deem necessary or useful.

5. It is incumbent on the originating banks to ensure that all the relevant information as is provided to them is captured in the relevant fields in messages / data files.

6. Please acknowledge and ensure compliance with the requirements latest by January 1, 2011. These instructions are being issued under the powers conferred on the Reserve Bank of India by the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

Yours faithfully
(G. Padmanabhan)
Chief General Manager

Indian CA firms having tie-up/affiliation with international entities/network - (13-10-2010)

ANNOUNCEMENT
(For Mandatory compliance in terms of Clause (2) Part III of The First Schedule to the Chartered Accountants Act, 1949)

Indian CA firms having tie-up/affiliation with international entities/network

The Council of the Institute had recently considered the draft Report on Operation of Multinational Network Accounting Firms in India, which inter alia, was based on examination of documents/details provided by many CA firms registered with ICAI and having tie-up/affiliation with international entities/network and the relevant provisions of the Chartered Accountants Regulations, 1988.

While considering the aforesaid draft report, the Council noted that announcements had been in the past hosted by the Institute in its website in June, 2009 and again in April, 2010, besides publishing the same in the July, 2009 issue of the journal, `The Chartered Accountant’ requiring all the Indian CA firms having tie-up/affiliation with international entities/network to furnish the following documents/details to the Institute:

(1) Agreement/contract with the multinational entity
(2) Terms and conditions for usage of name of multinational entity
(3) Arrangement for sharing of fees/profit with other Indian CA firms with similar/identical name and with the multinational entity
(4) Arrangement for sharing of human resources and infrastructure with other Indian CA firms with similar/identical name and with the multinational entity
(5) Details of remittances made to and received from the multinational entity
(6) Partnership deed (as on vogue in the last 5 years)
(7) Income-tax assessment orders for the last 3 years. If assessment orders have not been received, then they may submit computation of income and copies of returns, and
(8) Copies of letterheads and visiting cards generally used.

The Council further noted that pursuant to the above announcement, while many CA firms concerned had responded by sending the documents however, there could still be some CA firms which might be having tie-up/affiliation with international entities/network, but have not disclosed the same to the Institute and thus have not submitted the required documents/details.

The Council, therefore, decided that suitable announcement be hosted in the website of the Institute once again, besides publishing the same in `The Chartered Accountant’ and the newsletters of the Regional Councils, so that the firms which have till now not responded is given a last and final opportunity. The Council also decided that in case on a later date, the Institute comes to know of any firms which have international tie-up/affiliation, but yet had not come forward to disclose the same and submit the documents/details called for, then necessary action under the provisions of the Chartered Accountants Act, 1949 be taken against them.

Accordingly, this announcement is published with a request that the CA firms which have till now not responded to the earlier announcements on the subject, now submit the documents/details to the below-mentioned officer of the Institute at the following address at the earliest, and thus comply with the requirements asked for by the Institute:
G. Ranganathan
Deputy Secretary
The Institute of Chartered Accountants of India
ICAI Bhawan
C-1, Sector 1,
Noida – 201 301.
Tel.: 0120-3054 823
Mobile.: 093507 99933, Email: ranga@icai.org

(T. KARTHIKEYAN)
Secretary, ICAI, New Delhi

Source Link : http://220.227.161.86/20650announ11528.pdf

Nomination for National Level Faculty for Live Virtual Classes

Dear Sir/ Madam,

Subject: Nomination for National Level Faculty for Live Virtual Classes

As you are aware, the Council at its last meeting (No.) held on September 20-21, 2010 has decided to start Live Virtual Classes with the assistance of a service provider. To begin with, a pilot project has been envisaged whereby classes would be organized on selective subjects at select cities including ICAI Regional Offices. At this moment, studio facilities for delivering lectures will be available at Chennai & Delhi.

The objective of Live Virtual Classes is delivery of coaching facilities to students across the country by eminent faculties of national level. I am sincerely thankful to those who has already responded to this. I would request you to recommend the names of outstanding faculty members known to you for various subjects of CPT, IPCC and Final course for empanelment. The list of nominated faculty members containing names, mobile number and e-mail id may be sent at the earliest.

Your kind support in this regard would go a long way in making this project successful.

Regards,
CA.Vinod Jain
Chairman
Board of Studies

Online Articles Placement Portal for selection of Articled Assistants

ANNOUNCEMENT

September 27, 2010

On Line Articles Placement Portal for selection of Articled Assistants by CA Firms from 5th October, 2010

The Board of Studies of the Institute has introduced an optional Campus Placement Scheme for selection of Articled Assistants by CA Firms. The Pilot Campus Placement Programme held at Delhi in August 2010 has been a great success with an overwhelming response from both CA Firms and Students.

Considering the positive feedback and requests received from both CA Firms and Students, it has been decided to start an Online Articles Placement Portal to facilitate placement of Articles in CA Firms on pan India basis. Both eligible CA firms and candidates who are willing to avail of this facility shall have to register themselves online through the articles placement portal at http://bosapp.icai.org. The Portal would be operational from 5th October, 2010 at 11.00 A.M. onwards. The services on the Portal would be available for two months from the time of registration by the firm. Similarly the bio data of a student will also be available on the portal for a maximum period of 2 months from the date of student’s registration.

The Articles Placement Portal has been put into place to provide a platform to the firms of Chartered Accountants having vacancies for Articled Assistants to shortlist eligible students for selection of articled assistants, and call them for Interview at their offices, as per date and time convenient to them. The candidates who have either (a) Passed Group-I or both Groups of the IPCC examination, or (b) Passed either of the Groups or both groups of PE-II examination; and are eligible for undergoing articled training for selection as articled assistants in the CA firms can  register themselves on the portal, such that they can be considered for selection by the CA Firms.

The candidates shortlisted by CA Firms would be automatically informed by e-mail through the Portal, to appear for interview at their respective Offices, at the designated date and time.

Norms for Firms of Chartered Accountants participating in the Campus Placement Programme:

 All CA firms registered with the Institute and having vacancies for articled assistants are eligible to register through Portal by paying the requisite fee mentioned hereunder.

 After Registration, the participating firms would short list the candidates from the data available on the portal as per their requirement on the basis of number of vacancies available with them and call the candidates for interviews/interaction at their offices as per the suitable time and date convenient to them.

 Participating CA Firms should ensure that they have the number of vacancies available with them for articled assistants and shall have to mandatorily give offer letter to the selected candidates in writing on the date of the interview itself. (Please access ICAI website under "Know Your Firm Details" to find latest position).

 The CA firms are also requested to please see the list of candidates already selected by other CA firms on the Portal before giving offer letters to the candidates.

 The services on the Portal would be available for two months from the time of registration by the firm. Similarly the bio data of a student will also be available on the portal for a maximum period of 2 months from student’s registration.

Scale of Fee to be Charged From the Participating CA Firms:

CA Firms making use of the above Portal are required to pay through the Payment Gate way at the following rates to cover costs of the Portal, etc.:
Proprietorship Firms Rs. 1,000/-
Partnership Firms up to 6 partners Rs. 1,500/-
Partnership Firms having 7 to 12 partners Rs. 2,000/-
Partnership Firms having more than 12 partners Rs. 3,000/-
(Please add applicable Service Tax @ 10.3%)

Guidelines for CA Students:

 CA students who have qualified either (a) Passed Group-I or both Groups of the IPCC examination, or (b) Passed either of the Groups or both groups of PE-II examination and are eligible for undergoing articled training can apply for registration through Portal.

 The participating firms would short list the candidates registered on the Portal as per their requirement and call the candidates for interviews/interactions as per date and time convenient to them at their offices.

 If the date and/or time given by the CA firm is clashing with date and/or time of other CA firm(s), the candidate concerned is required to intimate the other firm(s) about the clash of date and time and request the firm(s) to change the same as per mutual convenience.

 Candidates appearing for the interviews are required to carry proof of their identity along with a copy of the mark-sheet(s) relating to IPCC/PE-II Examination, duly attested by a Chartered Accountant or a Gazetted Officer.

 Each student who would be given letter by the CA firm for pursuing articled training is required to give acceptance to the firm within 7 days’ time.

 In case the consent as per consent form is given by the Article to the firm this will be irrevocable from both sides and student will not be registered by ICAI under any other CA firm without the consent of the firm who were originally given the consent.

 After giving consent to the CA firm, he shall be required to indicate about his selection at the appropriate place on the Portal so that he should not be invited for further interviews by the CA firms.

 Students are advised to follow the proper Dress Code as prescribed by the Institute while appearing for interviews/interactions.

Disclaimer

Please note that The Institute of Chartered Accountants of India will be acting as a facilitator only and shall not be responsible in case of non-placement / non-selection of candidates.

In case of any clarification, please contact the Board of Studies, ICAI Bhawan, A-94/4, Sector-58, Noida-201301, Tel. No. 0120-3045930/931; eMail: bosapp@icai.org.

Director , Board of Studies

PERIOD OF PRESERVATION OF ACCOUNTS/RECORDS UNDER DIFFERENT LAWS

COMPANIES ACT, 1956

· A company is required to maintain its books of account and vouchers for a period of 8 years immediately preceding the current year.

· A s. 25 company is required to maintain its books of account and vouchers for a period of not less than 4 years.

· The books and papers of the Amalgamated/Transferor Company must be not be disposed of without the prior permission of the Central Government

· The books and papers of a company which has been wound-up and of its liquidator shall not be destroyed for a period of 5 years from the date of its dissolution. They may be destroyed earlier with prior Central Government permission.

· Every Company (not being an NBFC) accepting public deposits must maintain a Register of deposits for 8 calendar years from the financial year in which the latest entry is made in the Register

· The Register and Index of Members must be maintained Permanently.

· The Register and Index of debenture-holders must be maintained for 15 years after the redemption of debentures
· The copies of all Annual Returns and Certificates annexed thereto must be maintained for 8 years from date of filing with the ROC


NBFC DIRECTIONS

· Every NBFC accepting public deposits must maintain a Register of deposits for each branch and a consolidated Register for 8 calendar years following the financial year in which the latest repayment /renewal entry is made in the Register

INCOME-TAX ACT, 1961

· Assessees are required to preserve the specified books of account for a period of 6 years from the end of the relevant assessment year, i.e., for a total period of 8 previous years. Thus, accounts must be maintained for PY 1997-98 and onwards and accounts up to 31st March, 1997 (PY 1996-97) need not be maintained for income-tax purposes.

· Transfer Pricing documents and information specified under Rule 10D must be maintained for a period of 8 years from the end of the relevant assessment year, i.e., for a total period of 10 previous years.

CENTRAL EXCISE :

· Daily Stock Account of goods produced must be maintained for 5 years immediately after the financial year to which such records pertain

SERVICE TAX

· Records maintained under various other laws in force from time to time would be acceptable

SEBI REGULATIONS

· Under the SEBI Regulations for Stock Brokers, Merchant Bankers, Portfolio Managers, Underwriters, Debenture Trustees, FIIs, Custodian of Securities and Depository Participants the Records prescribed by SEBI under relevant Regulations must be maintained for a minimum period of 5 years

· Under the SEBI Regulations for Venture Capital Funds and Mutual Funds the records prescribed by SEBI under relevant Regulations must be maintained for a minimum period of 8 years

· SEBI Regulations for Registrar & Transfer Agents and Bankers to an Issue the records prescribed by SEBI under relevant Regulations must be maintained for a minimum period of 3 years

ICAI – COUNCIL’S DECISION OF 1957

· CAs should preserve records relating to audit and other work done by them, routine correspondence and other papers for a minimum period of 10 years

Requirement - Firm registration number (FRN) allotted by ICAI

Announcement on – Requirement to mention the firm registration number allotted by ICAI in all reports issued, including certificates, by members of the ICAI - (16-08-2010)

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ANNOUNCEMENT FOR THE ATTENTION OF THE MEMBERS

Attention of the members is invited to the announcement regarding requirement relating to mentioning the firm registration number in the audit reports and resolution passed by the company for appointment of statutory auditors, published on page 1312 of the February 2010 issue of the Journal.

The Council of the Institute of Chartered Accountants of India, in terms of the decision taken at the 296th meeting held in June 2010 has decided to extend the requirement to mention the firm registration number to all reports issued pursuant to any attestation engagement, including certificates, issued by the members as proprietor of/ partner in the said firm. The requirement shall apply where such firm registration number has been allotted by the Institute of Chartered Accountants of India.

The Council further decided to make this requirement effective for all attestation reports/ certificates issued on or after 1st October, 2010.

Too many GAAPS

Date:12/08/2010 Too many 'GAAPS' MOHAN R. LAVI Entities have taken unfair advantage of the hazy accounting norms making the ordinary shareholder an innocent sufferer. Here's an anecdote on how business is conducted in the US: "You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows." The remark could also reflect on the state of accounting standards in the US considering the frequent announcements regarding accounting restatements and relapses. IT majors Dell and HP have both been in the news for accounting alarms. THE DELL EPISODE A year-long investigation at Dell revealed that accountants and senior management cooked the books for more than three years, moving funds between accounts; hence, the company could show that it was meeting its quarterly targets. Dell's malfeasance included creating and releasing accrual and reserves for the purpose of enhancing internal performance measures, transferring excess accruals between liability accounts, and using excess balances to offset unrelated expenses in later periods. The adjustments were as much as several million dollars per quarter and went as deep as the accountant who passed the journal entry for quarterly sales. In addition, business unit executives provided incomplete finances to headquarters, and purposefully lied to auditors, providing incorrect or incomplete information. The company identified two major deficiencies: Control and reporting. Most of those involved have been given the boot, internal control procedures are being ring-fenced, and a $100 million penalty to the Securities and Exchange Commission (SEC) will mitigate further damage. REVENUE RECOGNITION The happenings at Dell reignite the debate between the rule-based and industry-specific US GAAP and the principle based International Financial Reporting Standards (IFRS). Entities such as Dell can typically have multiple arrangements in a normal sale transaction, ranging from hardware bundled with software to warranties. Dell adopted the Guidance from the Financial Accounting Standards Board (FASB) which allowed the use of the management's best estimate of selling price for individual elements of an arrangement, when neither vendor-specific objective evidence nor third-party evidence was available. In conjunction with the new guidance on multiple deliverable arrangements, the FASB also issued a new pronouncement that modifies the scope of the software revenue recognition guidance to exclude tangible products that contain both software and non-software components that function together to deliver the product's essential functionality. It is apparent that the bean counters at the company used the exhaustive guidance above as well as in SOP-97-2 on Software Revenue Recognition in the manner beneficial to them. While it is not appropriate to comment on audit without evidence, there have been instances wherein the Public Company Accounting Oversight Board (PCAOB) have mentioned in their inspection reports on audit firms about instances of sales-boosting to meet result expectations. Any document on risk management considers the tendency to fudge books to fulfil revenue targets a perceptible risk. The impact of the restatement for Dell could be 1 per cent of revenue and $50 million on net results. The last two persons at the corner office at HP have left under a cloud. Earning millions of dollars but tweaking expense reports for a few thousand dollars is a phenomenon that can be explained in psychological, and not accounting terms. The efficacy of the internal control mechanism can be questioned here, too. Hazy norms There have been far too many accounting accidents in the US, post-Enron for anyone to term the country's accounting and regulatory standards spotless. Entities have taken unfair advantage of the hazy accounting norms for special purpose entities or the vague disclosure norms for collaterised debt obligations, which has made the ordinary shareholder an innocent sufferer. There appear to be far too many accounting standards and pronouncements in the US, permitting an entity to tweak them as per its whims. The recent codification initiative of the FASB has merely organised the standards better, but it has done little to simplify them and has not reduced the problem of plenty. The US permits IFRS-compliant financial statements for non-US filers. But it is pussyfooting on accepting IFRS as an acceptable alternative for all. A change for change's sake could well do the trick in the US. (The author is a Bangalore-based chartered accountant.) URL: http://www.thehindubusinessline.com/2010/08/12/stories/2010081250191100.htm