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1 For Members only. For Private Circulation only. Price: R10 BCASNewsletter Harnessing Talent and Providing Quality Service A Monthly Newsletter of the Bombay Chartered Accountants Society Vice-President s Communiqué Dear Members, At BCAS, July is the season of change. At the 65th AGM Nitin Shingala, the new president, and second from the industry and his team has taken charge of this largest independent, nongovernmental, not for profit body of chartered accountants. Your Society of 9,000+ members, 1,00,000+ web subscribers, with its 10 committees will continue its march in its 66th youthful year to live up to its vision of spreading knowledge, harnessing talent and being a catalyst for good fiscal policies and governance. It is with this knowledge that evokes an incredible sense of honour that I write to you. As a volunteer, I see this journey of serving the Society as an adventure, one at the end of which I would want to feel Damn, that was awesome! So many people who do not volunteer wonder why would you do this? Aren t there so many responsibilities already, that you want to take on one more? Well, it s like what mountain climbers say, there is beauty of the irrational, the delight of stepping into the out of the ordinary that really shapes us. To serve selflessly, and for a cause you believe in, has a feeling of exhilaration. This is the feeling I get as I start this expedition. As you read this communiqué, the country is abuzz with enormous pent-up expectations! A new government is finding its feet! There are numerous competing development agenda needing ideas, funds and action, the power of the youth is surging, internet revolution is rocking established business models and knee-jerk regulatory changes are causing added worries to businesses. According to a recent study, India has slipped from the 5th spot to the 7th place in FDI confidence index, its lowest ranking since The FIPB was to take up 32 FDI proposals on 11th June and it knows that India needs about a $1 trillion in next three years to upgrade its infrastructure and boost growth. All in all, this largest democracy is trying to come out of slumber to cover a long road towards finding its rightful place as a nation state. As the saying goes - we are living in interesting times. Recently, the Tax Administration Reform Commission (TARC), under the leadership of Dr. Parthasarathi Shome submitted its first report. TARC was mandated to review the application of tax policies and tax laws in the context of global best practices. The BCAS too had submitted its views to the Commission earlier this year. The report emphatically spells out areas of concern that require fundamental change, such as accountability of (Continued on page 2) BUDGET MEETINGS Venue: Yogi Sabhagruha, Shree Swami Narayan Mandir, Dadar (East), Mumbai Day, Date & Time: Monday, 14th July, 2014, 6.15 p.m. Speaker: S.E. Dastur, Senior Advocate Subject: Direct Tax Provisions of the Finance Bill, 2014 Venue: Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai Day, Date & Time: Wednesday, 16th July, 2014, 6.15 p.m.* Speaker: Bhavna G. Doshi, Chartered Accountant & Vikram Nankani, Advocate Subject: Indirect Tax Provisions of the Finance Bill, 2014 Venue: Walchand Hirachand Hall, 4th Floor, IMC, Churchgate, Mumbai Day, Date & Time: Thursday, 17th July, 2014, 6.15 p.m. Speaker: D. B. Engineer, Solicitor & Advocate, Bhavana G. Doshi, Chartered Accountant Subject: Indirect Tax Provisions of the Finance Bill, 2014 (jointly with the Forum of Free Enterprise) *Fellowship over a cup of tea at 5.45 p.m. LECTURE MEETINGS Vol. 17 No. 04 July 2014 Venue: Rama and Sundri Watumull Auditorium C/O 124, K. C. College Building, Dinshaw Wachha Road, Churchgate, Mumbai Day, Date & Time: Friday, 25th July, 2014, 6.15 p.m.* Speaker: Pinakin D. Desai Subject: Issues in Taxation of Corporates and Shareholders Venue: Walchand Hirachand Hall, Indian Merchants' Chamber, Churchgate, Mumbai Day, Date & Time: Wednesday, 6th August, 2014, 6.15 p.m.* Speaker: Khurshed Pastakia Subject: Auditors Report Recent SA developments, fraud reporting and other issues. *Fellowship over a cup of tea at 5.45 p.m. 7, Jolly Bhavan #2, New Marine Lines, Mumbai Tel : ; F : ; bca@bcasonline.org ; Website : ; WebTV : President: Nitin P. Shingala president@bcasonline.org Vice-President: Raman H. Jokhakar vp@bcasonline.org Hon. Jt. Secretary: Narayan R. Pasari joint.secretary@bcasonline.org Hon. Jt. Secretary: Sunil B. Gabhawalla joint.secretary1@bcasonline.org Hon. Treasurer: Mukesh G. Trivedi treasurer@bcasonline.org 1 JULY 2014

2 (Continued from page 1) tax administration, tax payer service as first focus, reducing of tax payers to a subservient status, improvement in tax payer experience, ease of compliance, speed of dispute resolution, arbitrary and infructuous tax demands and lack of innovative approaches amongst other things. The report is also explicit that it has not suggested any changes that it believes cannot be carried out in the Indian context. We at the BCAS have consistently represented on identical or similar grounds and now are even more hopeful to see them become a reality. You will be happy to note that the Society was actively involved in making representations on the new company law. The draft Notification dated 24th June, 2014 from MCA reflects acceptance of suggestions and the openness of the Government to hear us out. The process of dialogue with the ministry is still on. Your Society also made representations to the Government of Maharashtra on matters relating to MVAT and most of them were implemented through the recent changes brought about in the MVAT laws in the state budget. The Union Budget, which has stirred debates and study across business and professional circles, is the flavour of the month. Wishing you all a Happy Guru Purnima, a Happy Id-Ul-Fitr, and a splendid audit and tax filing season! Yours truly, Raman H. Jokhakar PROGRAMMES AT A GLANCE DATE VENUE PAGE NO. I.P.C.C. & Final C.A. Students' Crash Courses Sydenham College, Churchgate One Day Seminar on Mind (Brain) Power BCAS office, Jolly Bhawan No. 2, New Marine Lines... 5 Workshop on How to conduct a Tax Audit Navinbhai Thakkar Auditorium, Vile Parle (East)... 3 Budget Meeting , , Lecture Meeting , RIGHT TO INFORMATION CLINIC Advisory Panel : Narayan K. Varma, Adv. A. K. Asher, Hema D. Sampat Clinic Co-ordinator: Ms. Bindu Mistry Foundation operates a Right to Information (RTI) Clinic on a regular basis. The Clinic provides help and guidance to BCAS members as also to non-members, i.e., all citizens, for making applications under the RTI Act and also assists in resolving any related difficulties on the subject of RTI. The RTI Clinic operates on every 2nd, 3rd and 4th Saturday from 11 a.m. to 1 p.m. The next RTI Clinic days accordingly are 19th and 26th July and 9th, 16th, 23rd and 30th August, Please call to obtain a prior appointment. CHARITABLE TRUST CLINIC Advisory Panel : Ratanshaw J. Damanwala, Shariq M. Contractor, Gautam S. Nayak, Anil J. Sathe, Atul H. Shah Clinic Co-ordinator: Ms. Bindu Mistry The next Charitable Trust Clinic will be held on 1st August, 2014 from 5 p.m. to 7 p.m. Chartered Accountants and Trustees interested in having their queries solved are requested to send their queries by to journal@bcasonline.org and call to obtain a prior appointment, latest by noon on the day of the clinic. Querists are also advised to bring along relevant papers like trust deeds, audited accounts, etc. ACCOUNTS & AUDIT CLINIC Advisory Panel : Sanjeev R. Pandit, Himanshu V. Kishnadwala, Jayesh M. Gandhi Clinic Co-ordinator : Ms. Bindu Mistry The next Accounts & Audit Clinic will be held on 2nd August, 2014 from a.m. to a.m. Persons interested in having their queries pertaining to accounting and auditing issues solved are requested to send the queries by to journal@bcasonline.org one week in advance and call to obtain prior appointment, at least a day before the day of the clinic. Please note that the panel will not answer any queries pertaining to tax issues. ALL THE THREE CLINICS WILL BE HELD IN THE LIBRARY OF THE SOCIETY BCAS 2

3 Budget Publication (In English and Gujarati) It s time for the Finance Minister to present the Annual Budget for the year and for the BCAS to bring out its Annual Budget Publication The Union Budget, An Analysis. The publication will highlight the intricacies of the Budget proposals in simple language for the benefit of the members and the citizens at large. The Budget Publication will be published in 2 languages viz. English and Gujarati. The publication will be available for delivery and sale at the BCAS office from 15th July, The price for one set of five booklets of Budget Publication in English and three booklets in Gujarati is R30. Order Form: Language of publication English (5 booklet set at R30) Gujarati (3 booklet set at R30) Total Amount Quantity of sets Total amount R30 Postage Cost: R30 for Mumbai and suburbs R 40 for all over India for each set Total amount payable Name: Mr./Mrs./Ms... BCAS Membership No.:... Firm s Name:... Office Address: Tel. Nos. (Office)... Mobile:... TAXATION COMMITTEE AUDIT Chairman : Co - Chairman : Convenors : Co-ordinators: Kishor B. Karia Sanjeev R. Pandit Anil D. Doshi, Ganesh Rajgopalan & Jagdish T. Punjabi Hardik D. Mehta & Saroj V. Maniar Workshop on How to Conduct a Tax Audit The audit season is already in full swing and all our offices are currently completing the statutory audits. Tax Audit is the next important compliance for most of our clients. Taxation Committee is pleased to announce the full day workshop on tax Audit. This workshop aims at enabling the participants to conduct the Tax Audits effectively keeping the relevant tax provisions and controversies in mind. The eminent faculty will discuss all clauses of Form 3CD, clause by clause, besides giving an overall perspective of the approach to such tax audit. This will help participants to understand each clause and cull out relevant details from the audited accounts. A special session on E-filing of the Tax Audit report has also been included. The unique feature of this very popular workshop is an additional Brains Trust Session, wherein the participants can send their queries before the Workshop and a panel of experts would reply to them during the workshop The participants would immensely benefit from the expert knowledge of Speakers and members should encourage their staff to enroll for this workshop. Programme Details Day & Date Friday, 8th August 2014 Time Venue 9.30 a.m. to 5.30 p.m. Navinbhai Thakkar Auditorium, Shraddanand Road, Near Shiv Sagar Restaurant, Vile Parle (East), Mumbai Cash/Draft/Cheque No... Drawn on:... Bank... Dated... Amount (R)... Faculty Fees for Members Himanshu V. Kishnadwala, Chartered Accountant Anil J. Sathe, Chartered Accountant Jagdish T. Punjabi, Chartered Accountant Sonalee A. Godbole, Chartered Accountant Ameet N. Patel, Chartered Accountant R (ST) = 1,011/- per participant (For members Ordinary, Life & Associate Members) Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones. Benjamin Franklin Fees for Non- Members R 1, (ST) = 1,236/- per participant Fee includes course material, lunch, high tea, and contribution of R50/- towards BCAS Foundation. Participants need to send their queries latest by 1st August 2014 for the Brains Trust Session either on the id km@bcasonline.org, or a hard copy to the BCAS office before this date. Enrolment form is printed on page no JULY 2014

4 In the current environment where plastic money rules and where physical give and take of money is slowly getting obsolete, have you... Imprest System for Publications Wondered why you need to send cash/cheque to the BCAS every time when a new publication is brought out by the Society? Ever missed out obtaining a copy of the publication since you were out of town and the publication went out of stock by the time you resumed office? Missed the early-bird discount that the BCAS allows on its most valued publication, The Referencer, simply because you missed booking it in advance? Expected that you would get the snapshots of the proposals in the Finance Bill at the earliest on your desk soon after the Budget Publication of the Society is released? Well, we have good news for you. All these issues will be resolved....if you have opted for the Imprest System. All members, journal subscribers and students can avail the Imprest Scheme. We have kept this Scheme open for non-members also. On the occasion of the 66th Founding Day of the Bombay Chartered Accountants Society, 3 publications were released by your Society on various subjects. You are requested to subscribe to a new Imprest Account or replenish your existing Imprest Account with the Society, in case it does not have sufficient balance for these publications. Payment to the Imprest Account can be made by cheque/dd payable at par in Mumbai in favour of Bombay Chartered Accountants Society OR you can also make an online payment. For online payment and for further details and to download the form, please log on to BCAS 4

5 HUMAN RESOURCES COMMITTEE Chairman : Convenors : Co-ordinators: Mayur B. Nayak Hemant P. Gandhi, Krishna Kumar Jhunjhunwala & Mihir C. Sheth Gracy M. Mendes & Mahendra D. Turakhia One Day Seminar on Mind (Brain) Power (FULL-DAY ACTIVITIES BASED LEARNING PROGRAMME) Topics : 1. Importance of Emotional Intelligence and how to enhance the same. 2. Importance of Social Intelligence and how to enhance the same. 3. Maximisation of your potential. 4. Power of your sub-conscious mind, how to train and communicate with it and get desired results. Expect this result: How to tap the Genius in you. Theory of multiple intelligence & your strength in multiple intelligence Know & understand your personality & how it will help to shape your career How to effectively handle emotional & social situations What you are today, it s because of your subconscious mind. How to train & reprogram the same to maximize in life Bonus: - Surprise take-home Kit of a couple of tools to use in day-to-day LIFE. Number of participants limited to 35 on First-Come-First-Served Basis. Programme Details Day & Date Saturday, 9th August 2014 Time Venue Capital Investment Members Non-Members a.m. to 5.30 p.m. Gulmohar, Bombay Chartered Accountant Society, Jolly Bhawan No. 2, Opp. Nirmala Niketan, Vithaldas Thackersey Marg, New Marine Lines, Mumbai R 3, (ST) = 3,750/- per head (Ordinary, Life & Associate Members) R 4, = 4,750/- per head Fee includes course material, lunch, high tea, and contribution of R50/- towards BCAS Foundation. Faculty Enrolment form is printed on page no. 12 Bhupesh Dave, Trainer, Motivational Speaker & Post Graduate in Political Science from University of Mumbai Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community. Andrew Carnegie BCAS FOUNDATION The BCAS Foundation (the Foundation) has been carrying out several charitable activities in various fields such as the Right to Information, Educational Assistance to Students and Relief Work in areas affected by calamity. We would like to further strengthen and enhance various charitable activities and invites your active involvement, suggestions and support. 1. The members (or their family members) are requested to volunteer in various activities of the Foundation please your contact details at president@bcasonline.org and vp@bcasonline.org 2. The members are requested to suggest specific charitable activities that the Foundation can undertake along with detailed proposal. 3. Several members are doing exemplary charitable work in their personal lives. We would like to recognise their efforts to spread inspiration and request a brief write up about the same. We look forward to your support and help to spread and broad base the activities of the Foundation to continue making positive contribution to our society and our country. 5 JULY 2014

6 RECENTLY RELEASED PUBLICATIONS OF BCAS The 3 publications will be available at the BCAS counter soon FAQs on Accounting Standards (The 7 authors of the book have tried to simplify the understanding of four basic Accounting Standards - AS2, AS7, AS9 and AS15, which have an important applicability in any business entity. To make the users of financial statements as well as preparers of financial statements aware about the importance of each accounting standard, the authors have disseminated the Accounting Standard into easy and simple Question and Answer format so as to have ease in understanding and demystifying the accounting standards. Members : R 60/- Non-Members R 75/- Taxation of Fees for Technical Services A Referencer In this book, the two authors have mainly focused on cross-border payments of Fees for Technical Services. It is an attempt by both the authors to compile various judicial pronouncements on the subject of FTS and classify them according to various typical cross-border services. They have selected important decision(s) pertaining to each typical service and provided a brief overview of such decision(s). This publication would be found useful both by the Taxpayers and the Tax Practitioners/Advisors. Members : R 400/- Non Members : R 500/- Gita for Professionals 2nd Edition (In English & Gujarati) The author feels that Conflict is very much a part of life, as experience is. Indeed, it is part and parcel of our existence both at home and elsewhere. In this book the author has elucidated the concepts of duty and ethics by means of parables and anecdotes which at times seem autobiographical. In the second revised and enlarged edition, the author has added a new Chapter containing Thirteen lessons from the Gita for professionals to make this world a better place to live in, wherein he not only talks about various aspects of one s personality such as Humility and Non-violence but also throws light on some of the essentially good acts in life such as Giving, Sacrifice, Forgiveness, Goal- setting, Discipline, Cleanliness, Service to Guru etc. Price : R 75/- BCA Referencer years of BCAS Referencer! Now Available Particulars Price Postage Quantity Referencer Premium Set (in exclusive folder) with CD, Table diary and Pocket diary Referencer Premium Set (in exclusive folder) with CD and Pocket diary only Total Amount (In Rs.) Referencer Refill Set with CD, Table Diary and Pocket Diary Referencer Refill Set with CD, and Pocket Diary only Super Saver Edition with CD (Bound Edition with Diary) Note: Supplement on changes related to Income Tax, Service Tax, Excise etc., and CD will be sent separately on passing of the finance bill. For Order Form please visit our website BCAS 6

7 OTHER PUBLICATIONS OF BCAS Taxation of Expatriates (Including Certain Non-Tax Aspects) (25th Publication published under the auspices of Late Shailesh Kapadia Memorial Publication Fund) With increasing Globalisation, there are tremendous opportunities for human capital both skilled and unskilled to work across countries and continents. The tax implications of Expatriates in India has thrown open many issues such as determination of residential status, impact of social security contribution made in the home country, treatment of overseas income, availability of applicable tax treaty benefit, compliance requirements under the Income-tax Act, 1961, etc. The Society felt an imperative need to bring out a publication on the subject and entrusted a difficult task to the dedicated team of members. We believe that this publication, like all other publications of BCAS, will be very useful to all readers in general and professionals concerned with this subject in particular. Members & Non-Members : R100 Postage : R75 FAQ s on e-tds The 3 authors of the book have tried to list and answer the questions based on their practical experience and those of their clients. They have however addressed most of the common issues faced by tax deductors. This publication would therefore be a useful and handy tool for staff entrusted with the work of TDS compliance. This book will serve its purpose of helping tax deductors understand the finer nuances of the procedures, and aid them in the process of TDS compliance. Member : R60 Non-Member : R75 Postage : R30 Supplement & CD Advance Rulings Law And Procedures Now with a Supplement and free CD Book - This publication aims to give a broad idea of the law, purpose, and procedure for seeking an advance ruling from Income Tax perspective. It also shares the first hand experience of the Authors in representing before the Hon ble Authority and some of the frequently asked questions practically faced by the Authors. Additionally, a summary of cases wherein the rulings have been pronounced by this Authority in the last three years, has also been captured. Supplement This supplement is updated with the rulings pronounced by the Authority for Advance Rulings, since July This supplement when read along with the original Publications, would be a comprehensive reference material for the subject on Authority for Advance Rulings. CD Free CD contains a soft copy of the Publication and the Supplement. Member / Non-Member : R125 Postage : R75 RTI for ITI Right to Information for Income Tax Issues This book is an attempt to ease the assessee s issues in the Income Tax arena by making use of the RTI Act and other grievance redressal systems. It is aimed at being an easy-tocomprehend guide for tax payers at large. The book acts as a handy guide for procuring much needed information in relation to various usual and not-so-usual Income Tax issues faced frequently by the taxpayers. Important information is made available at your fingertips by way of annexures. Member : R100 Non-Member : R120 Postage : R50 Laws & Business A Compendium (4th Edition) This edition is quite wide in its coverage and as in earlier editions, the book has been divided into 5 sections. Interesting highlight of this edition is an extensive coverage of Laws relating to the Real Estate and Financial Sectors, which will be of immense use and will serve as a guide to the taxpayers and professionals. Member / Non-Member : R400 Postage : R200 Service Tax Construction And Real Estate Sector Construction and Real Estate sector is the second largest employment generator after agriculture, and, Service Tax collection at present is the second largest component of total indirect taxes collected by the Government of India. The overall effect of taxation of this service is that the cost of real estate has gone up significantly and has adversely impacted both businesses and individuals who are victims of this dual levy of indirect taxes. Keeping this in mind, and, as part of its vision statement, BCAS has published this book after thorough research and studious hard work. Member : R120 l Non-Member : R150 l Postage : R75 Audit Checklist For Companies, Edition 2013 Appreciating the increased statutory compliance and covering standards on auditing, a revised and updated publication on Audit Checklist is made. In 2007, the publication on Audit Checklist was released. Members had an overwhelming request for this publication. The revised and updated edition of this publication extensively covers in detail Accounting Standards, Standards on Auditing, Audit Documentations and important material of statutory requirements. Member : R400 Non-Member : R500 Postage : R200 7 JULY 2014

8 Bombay Chartered accountants society 7, Jolly Bhavan no. 2, new marine Lines, mumbai Phone / Fax : bca@bcasonline.org Web : Human Resources Committee Chairman : Ca. mayur B. nayak Convenor : Ca. hemant P. Gandhi, Ca. Krishna Kumar Jhunjhunwala Ca. mihir C. sheth "We had joined the Revision Course, which has proved very much helpful to us. We cleared both groups in First Attempt " miss Janhavi thatte & miss Komal Jain I.P.C.C. & FInal C.a. StudentS education RevISIon CouRSeS (Jointly with Western india regional Council of the institute of Chartered accountants of india ) For november 2014 and may 2015 examinations 1. Courses for : C.a. Final C.a. i.p.c.c Accounting / Advanced Accounting Financial Reporting Business & Company Laws Strategic Financial Management Cost Accounting & F.M. Advanced Auditing Taxation Corporates & Allied Laws Auditing & Assurance Advanced Management Accountancy Information Technology & Strategic Management Information Systems Control and Audit Direct Taxes Indirect Taxes 2. Course Co-ordinators : Ca. Chandrakant ruparelia, Ca. neel majithia 3. Fees : rs. 1686/- (including Service Tax 12.36% effective from 1st July 2012) per student for I.P.C.C or Final (Total, and not per Subject, Including cost of Study Materials) 4. Timings & Venue : 6.15 p.m. to 8.30 p.m. on weekdays (Monday to Friday) at Sydenham College, B Road, Churchgate. 5. Duration : From July 28, Enrolment from : may 15, Faculty : Eminent personalities possessing rich experience in their respective fields. For further informaion kindly contact Mr. Amit Singh or Mr. Rajaram on Phone and respectively during office hours at CUT HERE CUT HERE CUT HERE CUT HERE Name :... Registration Number :... Course in which admission is desired : I.P.C.C ( ) FINAL ( ) (Please tick appropriately) Residential Address : Tel. No. (M) : Details of Articleship : Date of Joining... Estimated date of Completion... Name of the Principal :... Name and address of Firm where articleship is being done :......Tel. No. (O) :... Fax No. (O)... Cash/Draft/Cheque No.... drawn on...bank, dated... for an amount of Rs.1686/- is enclosed. Date :... Notes : Signature Please send the above form along with cash/cheque/draft drawn in favour of BomBay Chartered accountants society, to the Society s office, at the address mentioned above. 2. We propose to have multifarious activities like Elocution Competition, Public Speaking, Self Development Education Courses, Orientation Courses, etc. for interested Students. 3. Members are requested to keep the proforma of this sheet and send the same duly filled in by new articled trainee after his/ her enrolment in their office. BCAS 8

9 BCAS WEB TV 66th Founding Day Lecture Meeting on Discovering our Sweet Spot in Life by Mr. Rajiv Vij, held on 7th July 2014 is now available on BCAS Web TV Subscribe Now!!! Particulars Subscription Charges + Service Tax from 1st April 2014 to 31st March 2015 Total Charges Ordinary, Life and Associates of Corporate Membership R % R 674 Students R % R 674 Journal subscribers R % R 1,011 Non-members R 1, % R 1,348 Payment can be made by cheque/dd payable at par in Mumbai in favour of Bombay Chartered Accountants Society. You can also pay by cash/credit card at the payment counter of BCAS Office. If you have an Imprest Account, then you can instruct us to adjust the subscription through the imprest Account. For further details log on to 9 JULY 2014

10 FROM RBI Contributed by : Gaurang V. Gandhi The Reserve Bank of India has issued the following 11 circulars A. P. (DIR Series) Circular No. 142 dated June 12, 2014 Notification No.FEMA.295/2014-RB dated February 24, 2014 Transfer of assets of Liaison Office (LO) / Branch Office (BO)/Project Office (PO) of a foreign entity either to its Wholly Owned Subsidiary (WOS) /Joint Venture (JV) / Others in India Delegation of powers to AD Banks Presently, banks can, subject to submission of prescribed closure documents, allow closure of the accounts of LO / BO and repatriate the surplus balances. This circular now permits banks to allow transfer of assets of LO/BO/PO, subject to compliance with the following stipulations by the concerned LO/ BO/PO: - 1. The LO/BO must have complied with the operational guidelines such as (i) submission of AAC (up to the current financial year) at regular annual intervals with copies endorsed to DGIT (International Taxation), (ii) obtained PAN from IT Authorities and (iii) got registered with ROC under Companies Act The PO must have complied with the guidelines regarding initial reporting requirements and submission of CA certified annual report indicating project status. 2. They must submit a certificate from their Statutory Auditors furnishing details of assets to be transferred indicating their date of acquisition, original price, depreciation till date, present book value or WDV value and sale consideration to be obtained. The Statutory Auditor must also confirm that the assets were not re-valued after their initial acquisition. The sale consideration must not be more than the book value in each case. 3. The assets must have been acquired by the LO / BO / PO from inward remittances and no intangible assets such as goodwill, pre-operative expenses must be included. Also, no revenue expenses must be capitalized and transferred to JV / WOS. 4. All applicable taxes must have been paid before the transfer of assets. 5. Transfer of assets is permitted only when the foreign entity intends to close their LO / BO / PO operations in India. 6. Amounts received as a result of such transfer of assets can be credited to the bank account of the LO / BO / PO as a permissible credit. Banks have to submit the documents for scrutiny by their own auditors and RBI auditors. A. P. (DIR Series) Circular No. 143 dated June 16, 2014 Know Your Customer (KYC) norms/anti-money Laundering (AML) standards / Combating the Financing of Terrorism (CFT)/ Obligation of Authorised Persons under Prevention of Money Laundering Act (PMLA), 2002 Amendment to Section 13(2) Money Changing Activities This circular requires Authorized Persons to nominate a Director on their Board as designated Director to ensure compliance with the obligations under the Prevention of Money Laundering (Amendment) Act, A. P. (DIR Series) Circular No. 144 dated June 16, 2014 Know Your Customer (KYC) norms/anti-money Laundering (AML) standards / Combating the Financing of Terrorism (CFT)/ Obligation of Authorised Persons under Prevention of Money Laundering Act (PMLA), 2002 Amendment to Section 13(2) Cross Border Inward Remittance under Money Transfer Service Scheme This circular requires Authorized Persons, who are Indian Agents under MTSS, to nominate a Director on their Board as designated Director to ensure compliance with the obligations under the Prevention of Money Laundering (Amendment) Act, A. P. (DIR Series) Circular No. 145 dated June 18, 2014 Notification No. FEMA.307/2014-RB dated May 26, 2014 Annual Return on Foreign Liabilities and Assets Reporting by Indian Companies Revised format This circular states that RBI has amended the FLA Return. The new return and FAQ for filling up the same have been uploaded on the RBI website A. P. (DIR Series) Circular No. 146 dated June 19, 2014 Notification No. FEMA. 309/2014-RB dated June 4, 2014 Export and Import of Currency: Enhanced facilities for residents and non-residents Presently, a person resident in India can take outside India or having gone out of India on a temporary visit, can bring into India (other than to and from Nepal and Bhutan) Indian currency notes up to an amount not exceeding R.10,000. This circular has raised the said limit of R10,000 to R25,000 and provides that: - 1. Any person resident in India can take outside India (other than to Nepal and Bhutan) or having gone out of India on a temporary visit, can bring into India (other than from Nepal and Bhutan) Indian currency notes up to an amount not exceeding R25, Any person resident outside India, who is not a citizen of Pakistan and Bangladesh and who is also not a traveller coming from and going to Pakistan and Bangladesh, and visiting India, can take outside India / bring into India Indian currency notes up to an amount not exceeding R25,000. This facility is available only the person is exiting India / entering India only through an airport. Thus, this facility of bringing into India or taking out of India, Indian currency notes up to R25,000 is not available to persons resident outside India who are coming into India / going out of India via land / sea borders. A. P. (DIR Series) Circular No. 147 dated June 20, 2014 Risk Management and Inter-bank Dealings: Guidelines relating to participation of Residents in the Exchange Traded Currency Derivatives (ETCD) market Presently: - 1. Domestic participants in the currency futures and exchange traded options markets are not required to have any underlying exposure. While domestic participants in the over-the-counter (OTC) derivatives markets are compulsorily required to have underlying exposure. 2. Banks are not allowed to offset their positions in the ETCD market against the positions in the OTC derivatives market and are also not allowed to carry out any proprietary trading in the ETCD market. This circular provides that: - 1. Domestic participants in the currency futures and exchange traded currency options will have to comply with the following terms and conditions: BCAS 10

11 a. Domestic participants are allowed to take a long (bought) as well as short (sold) position up to US $ 10 million per exchange without having to establish the existence of any underlying exposure. b. Domestic participants who want to take a position exceeding US $ 10 million in the ETCD market will have to establish the existence of an underlying exposure. The procedure to be followed for the same is given in the circular. 2. Banks can a. Undertake proprietary trading in the ETCD market within their Net Open Position Limit (NOPL)/limit imposed by the exchanges for the purpose of risk management and preserving market integrity. b. Net / offset their positions in the ETCD market against the positions in the OTC derivatives markets. There will be no upper limit on the position that can be taken by any participant, resident or non-resident, in the ETCD market, except limits that are imposed by SEBI for risk management and preserving market integrity. A. P. (DIR Series) Circular No. 148 dated June 20, 2014 Notification No. FEMA 303/2014-RB dated May 21, 2014) Risk Management and Inter-bank Dealings: Guidelines relating to participation of Foreign Portfolio Investors (FPIs) in the Exchange Traded Currency Derivatives (ETCD) market Presently, persons resident outside India are not allowed to participate in the currency futures and exchange traded currency options market in India This circular now permits eligible foreign portfolio investors (FPI) to enter into currency futures or exchange traded currency options contracts subject to the following terms and conditions: - a. FPI can access to the currency futures or exchange traded currency options for the purpose of hedging the currency risk arising out of the market value of their exposure to Indian debt and equity securities. b. FPI are permitted to participate in the currency futures / exchange traded options market through any registered / recognised trading member of the exchange concerned. c. FPI are permitted to take position both long (bought) as well as short (sold) in foreign currency up to US $ 10 million or equivalent per exchange without having to establish existence of any underlying exposure. This limit will be both day-end as well as intra-day. d. FPI cannot take a short position beyond US $ 10 million at any time. e. FPI can take a long position beyond US $ 10 million in any exchange if it has an underlying exposure. The onus of ensuring the existence of an underlying exposure is on the FPI concerned. f. Exchanges are free to impose additional restrictions as prescribed by SEBI for the purpose of risk management and fair trading. g. Exchange / clearing corporation has to provide FPI wise information on day end open position as well as intra-day highest position to the respective custodian banks. The custodian banks will aggregate the position of each FPI on the exchanges as well as the OTC contracts booked with them (i.e. the custodian banks) and other banks. If the total value of the contracts exceeds the market value of the holdings on any day, the concerned FPI will be liable to such penal action as may be laid down by the SEBI and RBI. RBI has issued the Notifications No.FED.1 / ED (GP) 2014 dated June 10, 2014 (Currency Futures (Reserve Bank) Amendment Directions, 2014) and No. FED. 2/ ED (GP) 2014 dated June 10, 2014 (Exchange Traded Currency Options (Reserve Bank) Amendment Directions, 2014) to give effect to the above. A. P. (DIR Series) Circular No. 149 dated June 25, 2014 Know Your Customer (KYC) norms/anti-money Laundering (AML) standards / Combating the Financing of Terrorism (CFT)/ Obligation of Authorised Persons under Prevention of Money Laundering Act (PMLA), 2002 Money Changing Activities - Change in period of maintenance and preservation of records This circular provides that Authorized Persons are now required to maintain and preserve records for a period of at least five years as against the present requirement of to maintaining and preserving records for a period of at least ten years. A. P. (DIR Series) Circular No. 150 dated June 25, 2014 Know Your Customer (KYC) norms/anti-money Laundering (AML) standards /Combating the Financing of Terrorism (CFT)/Obligation of Authorised Persons under Prevention of Money Laundering Act (PMLA), 2002 Money Transfer Service Scheme - Change in period of maintenance and preservation of records This circular provides that Authorized Persons who are Indian Agents under MTSS are now required to maintain and preserve records for a period of at least five years as against the present requirement of to maintaining and preserving records for a period of at least ten years. A. P. (DIR Series) Circular No. 151 dated June 30, 2014 Remittances to non-residents Deduction of Tax at Source This circular states that henceforth RBI will not issue any instructions under the FEMA with respect to deduction of tax at source at the time of making remittances to the non-residents. Banks are, as a result, now required to comply with the requirement of the applicable tax laws in this regards. Master Circulars dated July 1, 2014 RBI has issued 15 Master Circulars. These Master Circulars consolidate the existing instructions on the subject at one place. These Master Circulars will be updated from time to time as and when the fresh instructions are issued. These Master Circulars may be referred to for general guidance and concerned persons may refer to respective circulars / notifications for detailed information, if so needed. A. P. (DIR Series) Circular No. 1 dated July 3, 2014 Financial Commitment (FC) by Indian Party under Overseas Direct Investments (ODI) Restoration of Limit Presently, the limit for Overseas Direct Investments (ODI)/Financial Commitment (FC) to be undertaken by an Indian Party under the automatic route is 100% of the net worth of the Indian Party as per its last audited balance sheet. This circular has restored the said limit to the one that existed prior to August 14, Hence now the limit for Overseas Direct Investments (ODI) / Financial Commitment (FC) to be undertaken by an Indian Party under the automatic route is 400% of the net worth of the Indian Party as per its last audited balance sheet. However, where the financial commitment of the Indian Party exceeds US $ 1 billion (or its equivalent) in a financial year prior permission of RBI will need to be obtained even if the total FC of the Indian Party is within the limit of 400% of its net worth as per the last audited balance sheet. 11 JULY 2014

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