15
20 AY
M
PUNE BRANCH OF WICASA OF ICAI
MAY 2015 - E NEWSLETTER
A mistake that makes us humble is much better than an achievement that makes us arrogant.
Chairman s Communication
Dear Students,
I would first of all convey my best wishes to all the students appearing
in the May 2015 examinations. And I hope that students are well
prepared for the examinations with their dedicated efforts.
The future Chartered Accountants prerequisite is to develop and
articulate self-confidence to reach the goal of success. Half-hearted
efforts are unlikely to produce desired results. So, whatever task or
assignment you are undertaking, do it whole heartedly. Failure will
never overtake you if your determination to succeed is strong enough.
Be dedicated to your well-defined goal and focus your energies,
thoughts and time with single-minded devotion. I suggest you all to
stay focused on your strategies of selected profession.
Sports event, visits to John Deere, etc. I request all the students to visit
the website of Pune Branch for the details. I also request students to
be part of WICASA team in the programmes of Tree Plantation ,
rightly said by Prime Minister Narendra Modi Mission Swacch Bharat
aspires to realize Gandhiji's dream of Clean India through Jan
Bhagidari. Together we can make a big difference .
Whatever life throws at you, even it hurts you, just be strong and fight
through it. Remember, strong walls shake but never collapse.
Lastly, Nothing can come in between you and your destiny. If you
grap hold of every opportunity nothing can come in between you
and your fate. I you strive to be great nothing can come in
between you and success. If you give it your best, and nothing
else .
Pune WICASA had also conducted a Seminar on How to Face CA
Examination and faculty for the same was All India Rank 3rd CA
Harsha Bhattad. She rightly said Ability is what you are capable of
doing. Motivation determines what you do. Attitude determines
how well you do it.
Our major programmes in April-2015 included Seminar on
Ammendment in Direct Taxes & Project Finance , Mock tests for
IPCC and Final Students.
CA. Anand Jakhotiya
Chairman
Pune Branch Of
WICASA of ICAI
In the coming months Pune WICASA will come up with various
programmes such as Tree Plantation, Blood Donation Campaign,
Managing Committee Members
CA. Anand Jakhotiya
Chairman
Ms. Dhara Parmar
Vice- Chairperson
CA. Radhesham Agrawal Mr. Akshay Pandit
Member
Ex-Officio
Mr. Apurv Gujrathi
Secretary
Mr. Karan Bharuka
Treasurer
Mr. Chaitanya Limkar
Member
Mr. Raviraj Dhengle
Member
Pune Branch of WICASA
ICAI BHAWAN, Plot No. 8, Parshwanath Nagar, Munjeri, Opp. Kale Hospital, Bibwewadi,
Pune - 411037. | Tel: 020 24212251 / 52 | Web: www.puneicai.org | email: wicasa@puneicai.org
2
The key to happiness is not that you never get angry, upset, frustrated, irritated or depressed
but it is how fast you decide to get out of it.
Vice - Chairperson s Communication
Hello Friends,
What you value and believe in
character.
chisels and forms your
To start with, Our Hon'ble Finance Minister Shri Arun Jaitley has
presented his maiden full budget, portraying growth for the economy
and by giving his commitment to introducing GST, dealing with Black
Money, pushing the Make in India concept, and taking the first step to
shift from the adverserial tax system to a taxpayer friendly system. We
wish him all the good luck in his endeavors and sincerely hope that
this would bring a much-needed turnaround in the economy.
As you all know that learning is a never ending process since
competance development is the greatest tool, and even after
qualifying in the examination, you will agree that the learning process
cannot be stopped and we have to resolutely keep abreast of new
technologies to be competitive. As Swami Vivekanand rightly said
We reap what we sow we are the makers of our own fate. The
wind is blowing; those vessels whose sails are unfurled catch it,
and go forward on their way, but those which have their sails
furled do not catch the wind. Is that the fault of the wind? We
make our own destiny .
Students will also be happy to know that Council of the Institute has
decided that the Wealth Tax will not be made applicale for the month of
November-2015 examination and subsequent ones. My heartfelt
wishes to to all the students who are appearing for May-2015. With a
well planned strategy you can easily pass the examinations. I am sure
the students who have worked hard & smart and given their 100% will
easily pass these examination.
Our major programmes in April-2015 included Seminar on
Ammendment in Direct Taxes & Project Finance , Mock tests for
IPCC and Final Students.
On the Seminars & Workshops front, we have an active month ahead
of us in which we shall have the Seminars wherein eminent faculties
will be giving us crucial insights relating to Accounting Standards and
Companies Act 2013. Workshop on English Speaking will be soon
annouced by us.Also WICASA have planned a number of Industrial
Visits and Educational Visits for students fraternity. In the monh of
May-2015 we have planned Industrial Visit to JOHN DEERE and
Educational Visit to National Grapes Research Centre .
Month of July-2015 will be celebrated as CA month awaiting with lots
many enthusiatic and interesting events like Youth Festival,
Residential Refresher Course (RRC), Debate, Quiz and Elocution
Competition, Sports competition, etc.
I appeal to you all students, to keep contributing your ideas, your
thoughts, towards activities of Pune WICASA. And with this level of
participation, I am certain that we shall retain and even surpass our
leadership position!
Our past generations strived to give us independence and make
the country stand on its feet. Now it is bestowed up on us to place
India in a Numerous Uno position in the world
You will be pleased to know the Institute,in February-March,
organised the campus placement programme for newly qualified
Chartered Accountants at various cities in the country. The highest
salary offered for Domestic posting was Rs.21.5 lakh and for
International posting was Rs.30 lakh.
Ms. Dhara Parmar
Vice Chairperson
Pune WICASA
Managing Committee Members
CA. Anand Jakhotiya
Chairman
Ms. Dhara Parmar
Vice- Chairperson
CA. Radhesham Agrawal Mr. Akshay Pandit
Member
Ex-Officio
Mr. Apurv Gujrathi
Secretary
Mr. Karan Bharuka
Treasurer
Mr. Chaitanya Limkar
Member
Mr. Raviraj Dhengle
Member
Pune Branch of WICASA
ICAI BHAWAN, Plot No. 8, Parshwanath Nagar, Munjeri, Opp. Kale Hospital, Bibwewadi,
Pune - 411037. | Tel: 020 24212251 / 52 | Web: www.puneicai.org | email: wicasa@puneicai.org
3
Every test in life makes us bitter or better. Every problem comes to make us or break us.
Choice is ours, whether become victim or victor.
Photo Gallery
4
Lucky people get opportunities, brave people create opportunities,
but real winner is who convert the problems into opportunities.
How will Goods & Services Tax boost GDP?
Name: Raj Mukesh Khona
Registration no.: WRO0395605
A. Introduction
e) The GST shall be designed on invoice-credit method.
Universe and life in universe often do not confirm to a linear mathematical
model. In spite of best intention and efforts, it is difficult to design a perfect
tax system which is universally applicable for all times to come. Ability to
adapt to changing realities is critical for tax system to sustain and be
relevant. Tax on consumption of goods and services on value added basis,
Goods and Service Tax (GST), has been emerging as tax of the future. In an
increasingly globalised and competitive environment, scope of direct
taxes is being reduced and the current global trend is to derive higher
proportion of revenue from indirect taxes. One of the biggest taxation
reforms in India - the Goods and Service Tax (GST), which is successful
worldwide - is all set to integrate state economies and boost overall
growth. It is seen to be tax reform that will promote cooperative federalism
in India.
f) Full and immediate input tax credit in respect of capital
goods shall be available.
B. Current Structure of Indirect Tax System in India
The current structure of indirect taxation in India is very complicated.
Different types of indirect taxes are levied and collected at different points
in the supply chain. The Centre is empowered to levy taxes on manufacture
of goods (excise duty), provision of service (service tax) and interstate sale
of goods (central sales tax). On the other hand, the States are empowered
to levy tax on intrastate / local sale of goods (VAT), tax on entertainment &
luxuries, taxes on real estate transactions (stamp duty) and tax on
movement of vehicles (octroi & entry tax). The present tax system
comprises of unfriendly input tax credit / CENVAT credit mechanism & does
not facilitate cross input credit utilization between taxes levied by centre &
states.
Thus current indirect tax structure in India is considered as distortionary
and characterised by cascading effect of taxes, resulting in mis-allocation
of resources and lower productivity and economic growth. The indirect tax
structure lacks uniformity which is not restricted only to the rates of tax,
but also extends to procedures and, sometimes, to the definitions,
computation and exemptions. The tax system is highly corrupt and inhibits
voluntary compliance due to high compliance cost. This has made the
existing tax system regressive and less business friendly. Therefore, it is
necessary to replace the existing indirect tax system by a 'flawless' new
regime which would help remove the cascading effect of taxes, is simple,
effective and encourages voluntary compliance.
C. Salient Features of Proposed Goods & Service Tax (GST)
The salient features of the proposed 'flawless' GST are stated below:
a) The base of GST shall extend to all goods and services with
certain exclusions.
b) There shall be a dual levy of GST i.e.; Central GST and State
GST.
c) There shall be uniform rate of tax which shall be revenue
neutral.
d) The GST shall be a destination based tax.
g) The GST will subsume all existing transaction based taxes
on goods and services.
h) The exports shall be zero rated and imports should be fully
taxed.
i) There shall be a threshold exemption for small dealers.
j) Full computerization of the compliance and administrative
systems.
D. Impact of Goods & Service Tax (GST)
In the Indian economic policy context, poverty reduction and inclusive
growth are key economic policy objectives. Hence, the study of
implications of the switchover from the cascading and distortionary
taxation of goods and services to the 'flawless' GST is very essential before
making such switchover.
 GST & Economic Growth
The introduction of the GST will bring about a macroeconomic dividend by
reducing the 'negative effects' of cascading taxation. The positive impacts
of GST on economic growth are stated below:
1. GST will be a tax on consumption & hence all stages of production and
distribution will be mere tax pass-through. Therefore, business decision
making will be tax neutral.
2. The taxation of capital goods discourages savings and investment and
retards productivity. The 'flawless' GST envisages full and immediate
credit for GST on capital goods (both buildings and plant and machinery),
thereby fully eliminating the incidence of any indirect tax on the capital
goods. This enhances the productivity of capital and hence reduces the
incremental capital-output ratio.
3. Differences in the tax structure of different States and the Central
Government greatly increase the cost of doing business. The proposed
GST, though dual in nature, envisages a uniform structure, design and
compliance system at all levels of Government and across States.
Therefore, the cost of doing business in India will significantly reduce.
4. Violation of the destination principle places local producers at a
competitive disadvantage, relative to producers in other jurisdictions.
Under the proposed GST, imports shall be fully taxed in India, irrespective
of whether the imported goods and services are produced in India or not,
thereby, providing a level playing field to domestic producers particularly in
the import-substitution industry. This will boost the 'Make in India'
initiative of the government.
5. GST, once introduced, will create a common market across the length
and breadth of the country - something which has eluded us since long.
The size of the market will cease to be limited by tax considerations.
Further, it will restore the comparative advantage of resource rich states
5
Speak only when you are sure that your words are better than your silence.
and enable them to emerge as production hubs.
 GST & Poverty Reduction
6. At present, the combined statutory rate of tax on ultimate goods or
services is close to 22 percent. The rate of tax in the proposed GST shall be
uniform, substantially lower than the current combined rate & revenue
neutral. However, the revenue neutral rate cannot be very high. If it is very
high, then it would be detrimental to the growth of service sector, which
has been an engine of growth for India. Again, levy of multiple rates shall
not be economically desirable i.e.; a lower rate for basic necessities and
higher rate for other goods & services. Such deviations in the design of
GST shall not serve the basic objective and purpose of implementing GST.
The lower tax rates under GST, while designed to help those in the lower
income brackets, will benefit disproportionately those in the higher
income brackets also.
Poverty reduction and welfare of 'Antyoday' shall continue to remain the
central objectives of economic policy making in India. Any policy for
poverty reduction must enable the provision of, at least, food, clothing,
shelter, education and health.
A uniform, substantially lower and revenue neutral rate will considerably
reduce the economic distortion and the incentive to evade taxes. An
upsurge in compliance and hence, revenue collections can also be
anticipated. This in turn will improve fiscal management & reduce the
prices of major goods & services. There would be fewer disputes about
classification of goods, lesser chances of litigation, simplified compliance
procedures and greater efficiency.
7. Another important source of gain for the Government would be the
savings on account of reduction in the price levels of a large number of
goods and services consumed by the Government.
8. In modern tax jurisdictions, the goal of the taxman should not be to
maximize revenue but to maximize voluntary compliance and minimize
compliance gaps & tax disputes. All the processes should be made 'digital
to default'. The growing volume of tax disputes in India has earned the tax
administration the label of "tax terrorism" and has given India a bad name
in jurisdictions across the world. This has been the single most important
factor contributing to the downturn in investments and economic growth.
A fully computerized tax administration & compliance system under the
proposed GST shall ensure voluntary compliance & healthy business
environment. This feature will provide fuel to the 'Digital India' initiative of
the Government.
Under the proposed GST, all food items covered under the public
distribution system are proposed to be exempt from tax. As a result
primary food articles like rice and wheat, which are presently taxed at
multiple rates in difference states, would be exempt from tax, ultimately
leading to reduction in their prices. Since expenditure on food constitutes
a large proportion of the total consumption expenditure of the poor, the
GST design shall be a pro-poor policy initiative.
Like food, basic health and education services are also intended to be
fully exempt. As a result consumption of these services will bear a
relatively lower burden.
Housing is yet another important item of basic needs of the poor. The GST
provides for including within its scope the transactions in real estate.
Therefore, for a registered real estate builder, all taxes on inputs (including
on land) will be off-set against the tax payable on the constructed
property. This will effectively reduce cost of housing to the extent of
embedded taxes and hence, benefit the poor.
Another necessary item of consumption by the poor is clothing. As per a
general estimation, the implementation of the GST will result in a decline
in the prices of major products which will include clothing as well. The
share of expenditure on clothing in the total expenditure on consumption
is relatively higher in case of rich than in the case of the poor. Due to this
the poor will gain relatively more from the drop in prices.
The rural poor comprise essentially of small and marginal farmers and
landless labourers. Similarly, the urban poor comprises of the
unemployed. The implementation of GST will witness an increase in the
real returns to land, labour and capital. Therefore, the rural poor will also
enjoy an increase in their income. Similarly, on account of increase in
economic activity resulting in higher growth, there will be new
opportunities for employment which will directly benefit the urban poor.
The overall macroeconomic effect of reduction in economic distortions
due to GST would provide an impetus to economic growth & lead to
efficient allocation of factors of production, which ultimately would
translate into enhanced economic welfare. As per the 13th Finance
Commission Report; implementation of GST is expected to provide gains
to India's GDP somewhere within a range of 0.9 to 1.7 per cent.
The benefit to the poor from the implementation of GST will therefore, flow
from two sources: first through increase in the income levels and second
through reduction in prices of goods and services consumed by them.
This ultimately will lead to increase in savings and improve the quality of
life of the poor and lower middle class families in India.
 GST & International Trade
E. Conclusion
Introduction of GST is reasonably expected to benefit foreign trade.
Destination based taxation is a fundamental principle of a sound GST. It
requires that exports from the taxing jurisdiction would be tax free by zero
rating and imports into the jurisdiction would be taxed at the same rate as
products produced and consumed within the jurisdiction. The 'flawless'
GST embodies this principle. Consequently, both export-oriented
industries and import-substituting industries would become
internationally more competitive. As a result, while exports can be
expected to register an increase, imports are likely to decrease. This will
ensure that India moves towards a favourable balance of payment
position.
The introduction of a 'flawless' GST is one of the most important reform
agenda which can provide a new impetus to Indian industry and inclusive
growth. Every stakeholder stands to gain. GST has the potential to
transform not only the tax system in the country but also the way we
organise and do business. GST will definitely prove to be an 'economic
game changer'. Roadmap to GST in India is not a super highway, but a
typical narrow Indian road with potholes, diversions and encroachments.
However, the road seems to be motor able.
Let us all hope that the biggest economic reform in the history of
Independent India brings 'acche din' for all stakeholders and takes our
economy in a positive direction.
6
The word listen contains the same letters as silent.
Listen to god in the silence of your heart and you will know his perfect plans for you.
Journey from Now till Last Paper,
Last Minute!!! - By Tushar Samdani
Name: Tushar Samdani
Registration no.:
Hello Friends,
Theory of Fear:
Clearing CA exams successfully is really a challenging task. You need right
sets of practices to clear the exams easily.
What is fear? Fear is just a feeling of negativity. When you start fearing, you
start creating the vibes which will make you weak by mind which in turn will
affect your performance in examination. It is observed that even the brightest
students having done full studies backed with timely revisions are still failing
in the exams. After interacting with them it has been revealed that it was only
the fear in their mind which pressurized them. Fear is a darkroom where
negatives are developed. The best thing to overcome fear is to strongly believe
in yourself. True success is overcoming the fear of being unsuccessful.
This article will not only help you till the exams begin but till the last paper and
last minute of your examinations.
Success is what you decided, you did and it happened. Success never
comes to you... you have to go to success. You need to have lot of patience.
You need to have lot of discipline. Success is impossible without
commitment.
To Get Success commit yourself to follow
Here are some important techniques which you must not ignore while
preparing for the exams.
Theory of Sacrifice:
Sacrifice is giving something for the better. Sacrifice all the things which are
merely a hurdle between your goal to become CA . Sacrifice your all pleasures,
sacrifice your game on mobile or laptop, sacrifice internet, sacrifice your
sleep, sacrifice your friends, ignore the pain you are undergoing. You may feel
sweaty, sleepy etc and don't feel like studying. Who has asked you what you
are feeling? Its time of taking decision on the basis of what time is demanding
from you. If the demand of time is you should stud y then you must study
ignoring the odds coming in your way. In every sacrifice there is
tremendous opportunity. Use it to your advantage!
Dreams do come true, if only we wish hard enough. You can have anything in
life if you will sacrifice everything else for it.
― J.M. Barrie
Theory of Pain:
For anything great you want to achieve you need to pass through lot of pain.
You need to have nerves of steel to become CA. Pain is temporary and
something else will take place of it. And this something else is success. Drink
away the pain and get reward from the pain you are undertaking.One day this
pain will make sense to you.
1. Health and Diet: Summer season is well known for creating weakness &
sickness in the students. You need to set proper diet to manage your energy
level through the day. (It's good to have buttermilk, lemon water without sugar,
fruits, salads etc in summer).
2. Health and Meditation: To keep your energy level boosted and mind fresh for
your studies you shouldn't ignore doing meditation for 15-20 minutes a day.
Also adding yogic exercise after meditation for 10-15 minutes will keep you
mentally and physically strong. Doing meditation and yogic exercise will
altogether consume your 30 min a day but it is not a waste of your time. Rather
it will be investing your time to reap the benefit of increased efficiency and
strength.
3. Psychology: Psychology can make you stand firm even in the heaviest
disasters as well as it can make you weak. You need to prepare your
psychology to stand against whatever problems you face while your journey
from now till last paper, last minute. Prepare yourself for the worst and then
whatever you will face will not be that tough. Be ready for the worst exam hall
where fans are not working properly, benches are either big or small for you,
paper seem quite tough etc. Body achieves what mind believes.
4. Consistency: Consistency is more important than perfection. The Aristole
has rightly said, We are what we repeatedly do. Excellence therefore is not an
act but a habit. Great things require consistency. Secret of success is
consistency of purpose. If your purpose to become CA is alive for every single
minute of the day then you are definitely bound to become CA.
Small amount of fire makes a small heat. Similarly small amount of
efforts make less than 400 out of 800 or 350 out of 700.
चाहो वो जो बनना चाहते हो,
वरना वो बनना पडग
े ा जो नह बनना चाहते हो
If you want to become CA then don't make it your want; make it your
burning desire.
7
Do not feel bad if people remember you only when they need you.
Feel privileged that you are like a candle that comes to their mind when they are in darkness.
CROSSWORD PUZZLE
1
2
4
3
7
5
6
8
10
11
9
12
13
15
14
17
16
18
19
20
Across
1. A person who owes money to another.
4. ..... investment gives the holder a right to receive a
share of the profits.
7. Of, or related to, public money.
8. Add, subtract, multiply, ..... .
10. A continuing rise in prices.
15. The price paid for something.
17. You can rent or ..... a car.
18. To give out, or provide officially, eg to ..... shares.
19. Not known.
20. People can invest money in unit ..... .
21. ..... are all the things with monetary value owned by
a person or company.
21
Down
1. To ..... is to postpone.
2. The lowest part, or foundation.
3. Tax ..... is a tax-free amount.
5. ..... is a colloquial word meaning an English pound.
6. ..... is the rate of income received by an investor
from a security.
9. People can put their money ..... property, equity or
securities.
11. You can practise your English by having an English
..... .
12. If someone is left money by a relative who has died,
he has ..... the money.
13. What kind of bank ..... have you got?
14. People who have paid too much tax, usually get .....
16. General tendencies or directions.
8
A lot of trouble in the world will disappear, if everyone learn to talk to each,
instead of talking about each other.
Answers to One word puzzles April, 2015
1) Ans: B
2) Ans: C
3) Ans: C
4) IRNSS 1-D
5) Aditi Arya
6) Section 66A
7) 25 Basis Point
8) Faridabad
9) Mufti Mohammed Sayeed
10) Michael Clarke
11) Dr Y V Reddy
12) Bengaluru
13) M O Garg
14) R K Laxman
15) Himmat
9