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  • Applicability of Standards/Guidance Notes/Legislative Amendments etc. for November, 2016 – Final Examination

    ICAI Board of Studies has announced the standards/guidance notes/legislative amendments etc. that are applicable for November, 2016 – Final Examination. Please follow the link http://resource.cdn.icai.org/42441bos32193.pdf

  • Non-applicability of Amendments made by MCA in the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015 for November, 2016 Examination

    Any new AS or Ind AS or revised version of AS or Ind AS, notified by the MCA, is being made applicable for CA examination only after one year of its notification.

    Accordingly, amendments made on 31st March, 2016 by the Ministry of Corporate Affairs in the Companies (Accounting Standards) Rules, 2006 and Companies (Indian Accounting Standards) Rules, 2015 are not applicable for November, 2016 examination both at the Intermediate (IPC) and Final levels.

  • CA May, 2016 Examination Dates - February 01, 2016

    Intermediate (IPC) Examination

    Group – I: 3rd, 5th, 7th, 9th May 2016
    Group – II: 11th, 13th, 15th May 2016

    Final Examination

    Group – I: 2nd, 4th, 6th, 8th May 2016
    Group – II: 10th, 12th, 14th, 16th May 2016

    • Applications along with prescribed fee shall reach Deputy Secretary (Examinations) at New Delhi not later than 24th February, 2016.
    • Applications will also be received after 24th February, 2016 and up to 2nd March, 2016 with a late fee of Rs. 600.
    • Applications received after 2nd March, 2016 shall not be entertained under any circumstances.
    • To apply online please visit http://icaiexam.icai.org from 3rd February, 2016 to 24th February, 2016.

    Source ICAI : http://resource.cdn.icai.org/40793exam30639.pdf

  • Applicability of Standards/Guidance Notes/Legislative Amendments etc. for May, 2016 Final Examination - January 29, 2016

    • Financial Reporting
      • All AS excluding 30,31,32.
      • Topic of Introduction of Indian Accounting Standards (Ind AS); Comparative study of ASs vis-a-vis Ind ASs; Carve outs/ins in Ind ASs vis-à-vis International Financial Reporting Standards (IFRSs) is applicable.
      • Excluded overview of International Accounting Standards (IAS) / International Financial Reporting Standards (IFRS), Interpretations by International Financial Reporting Interpretation Committee (IFRIC), Significant differences vis-a-vis Indian Accounting Standards; Understanding of US GAAPs, Applications of IFRS and US.
      • Ind AS 32 Financial Instruments: Presentation, Ind AS 107 Financial Instruments: Disclosures and Ind AS 109 Financial Instruments have been made applicable to the topic Accounting and Reporting of Financial Instruments instead of AS 30 Financial Instruments: Recognition and Measurement, AS 31 Financial Instruments: Presentation and AS 32 Financial Instruments: Disclosures.
    • Strategic Financial Management
      • No change
    • Advanced Auditing & Professional Ethics
      • No change
    • Corporate & Allied Laws
      • No Change
      • Sections of the Companies Act, 2013, along with relevant Rules/ Notifications/ Circulars/ Clarification/ Orders issued by the Ministry of Corporate Affairs up to 30th October, 2015.
      • The Companies (Amendment) Act, 2015 sections 1 to 12 and 15 to 23.
    • Advanced Management Accounting
      • No change
    • Information Systems Control & Audit
      • No change
    • Direct Tax Laws
      • Relevant assessment year is A.Y. 2016-17.
      • Provisions as amended by the Finance Act, 2015, including notifications and circulars issued up to 31st October, 2015.
    • Indirect Tax Laws
      • Provisions as amended by the Finance Act, 2015, including notifications and circulars issued up to 31st October, 2015.

    Source ICAI : http://resource.cdn.icai.org/40502bos30265.pdf

  • Insurance Amendment Act, 2015 applicable for November 2015 CA final examination in Paper 4: Corporate and Allied Laws - September 02, 2015

    Insurance Laws (Amendment) Act, 2015 an act further to amend the Insurance Act, 1938 will be applicable for the November, 2015 examination. This Amendment Act is deemed to have come into force on 26th December, 2014 though it was passed by the Lok Sabha on 4th March, 2015, by the Rajya Sabha on 12th March, 2015 and received the assent of the President on 20th March, 2015.

    Link: http://www.icai.org/new_post.html?post_id=11833&c_id=343

  • Revised Scheme of Education & Training for Chartered Accountancy Course - July 14, 2015

    Revised Scheme: Route I - Foundation Course#

    Under the Foundation Course Route, the following steps are required:

    • Register with Board of Studies (BoS) after appearing in Class XII till June 30/Dec 31.
    • Be eligible to appear for Foundation examination after passing Class XII examination. The first Foundation examination can be taken in November/May, as applicable, following passing of Class XII examination.
    • Qualify Foundation Course.
    • Register with the BoS for the study course.
    • Complete 8 months of study course.
    • Appear & Pass in either or both Groups of Intermediate Course.

    Successfully complete Four Weeks Integrated Course on Information Technology & Soft Skills (ICITSS) before commencement of the practical training.

    • Register for Three years Practical Training on passing either or both the Groups of Intermediate.
    • Register for the Final Course after qualifying both the Groups of Intermediate Course.
    • Successfully complete Four Weeks Advanced ICITSS during the last two years of Practical Training.
    • Complete Practical Training.
    • Appear in Final examination after completion of practical training & Advanced ICITSS.
    • Become Member.

    #Note : ICAI has decided in principle the above mentioned Scheme. However, the scheme will be noticed in the official Gazette in due course.

    Revised Scheme: Route II - Direct Entry Route#

    The ICAI allows Commerce Graduates/Post-Graduates (with minimum 55% marks) or Other Graduates/ Post-Graduates (with minimum 60% marks) & Intermediate level passed students of Institute of Company Secretaries of India & Institute of Cost Accountants of India to enter directly to its Intermediate Course. The following steps are required to be undertaken by the eligible Graduates & Post Graduates under this route:

    • Register with the BoS for the Intermediate course (provisional registration allowed to the students doing Final year of graduation).
    • Successfully complete Four Weeks Integrated Course on Information Technology & Soft Skills (ICITSS) before commencement of the practical training.
    • Register for Three Years Practical Training.
    • Appear in Intermediate Examination after Nine months of Practical Training.
    • Qualify Intermediate Course.
    • Register for the Final Course after qualifying both Groups of Intermediate Course.
    • Successfully complete Four Weeks Advanced ICITSS during the last two years of Practical Training.
      • Complete Practical Training.
    • Appear in Final examination after completion of practical training and Advanced ICITSS. Become Member.

    #Note : Candidates who have passed Intermediate level examination of ICSI or ICWAI & enter the CA Inter mediate course directly shall be treated at par with Foundation passed students & shall have to undergo the CA course in the manner akin to the Foundation passed students.

    Foundation Course

    There are 4 papers in CA Foundation course. Remember that Paper 2 and Paper 4 will be Objective type papers.

    • Paper 1: Principles and Practices of Accounting (100 Marks)
    • Paper 2: Business Mathematics and Logical Reasoning & Statistics (100 Marks)
      • Part I: Business Mathematics and Logical Reasoning (60 Marks)
      • Part II: Statistics (40 Marks)
    • Paper 3: Mercantile Law & General English (100 Marks)
      • Part I: Mercantile Law (60 Marks)
      • Part II: General English (40 Marks)
    • Paper 4: Business Economics & Business and Commercial Knowledge (100 Marks)
      • Part I: Business Economics (60 Marks)
      • Part II: Business and Commercial Knowledge (40 Marks)

    *Paper 2 and Paper 4 will be Objective type papers

    #Note :

    • Passing percentage: Aggregate- 50% and Subject-wise- 40% at one sitting.
    • Objective type question of I or more marks.
    • Examination: In the month of November and May after passing Class XII

    Intermediate Course

    ICAI has announced some changes in CA IPCC syllabus also. In new scheme there are 8 papers for IPCC exam whereas in the present scheme there are seven papers

    Group-I

    • Paper 1: Accounting (100 Marks)
    • Paper 2: Corporate Laws & Other Laws (100 Marks)
      • Part I: Corporate Laws (60 Marks)
      • Part II: Other Laws (40 Marks)
    • Paper 3: Cost Accounting (100 Marks)
    • Paper 4: Direct Tax Laws & Indirect Tax Laws (100 Marks)
      • Part I: Direct Tax Laws (60 Marks)
      • Part II: Indirect Tax Laws (40 Marks)

    Group-II

    • Paper 5: Advanced Accounting (100 Marks)
    • Paper 6: Auditing and Assurance (100 Marks)
    • Paper 7: Financial Management & Business Economic Environment (100 Marks)
      • Part I: Financial Management (60 Marks)
      • Part II: Business Economic Environment (40 Marks)
    • Paper 8: Information Technology & Strategic Management (100 Marks)
      • Part I: Information Technology (60 Marks)
      • Part II: Strategic Management (40 Marks)

    Four week Integrated Course on Information Technology and Soft Skills (ICITSS)

    • Duration: Four Weeks (2 week for soft skills and 2 week for ITT)
    • Objective: To sharpen the technical and soft skills of CA students.
    • Who shall do: Students registering for the Intermediate course shall be required to do ICITSS before commencing practical training.
    • Assessment Test: An assessment test shall be conducted at the end of the course which the students have to qualify for being able to appear in the Intermediate examination.

    Three year Practical Training

    • Duration: Three Years
    • Commences after completion of Integrated Course on Information Technology and Soft Skills (ICITSS) and passing either or both group of Intermediate
    • For direct entrants coming through Graduation and Post Graduation route, the practical training commences immediately after they complete four weeks ICITSS

    Advanced Four week Integrated Course on Information Technology and Soft Skills (ICITSS)

    • Duration: Four Weeks (2 week for soft skills and 2 week for ITT)
    • When to complete: Students undergoing Practical Training shall be required to do AICITSS during the last 2 years of Practical Training but to complete before appearing in Final examination
    • Assessment Test: An assessment test shall be conducted at the end of the course which the students have to qualify for being eligible to appear in Final Examination.

    Final Course

    Group-I

    Paper 1: Financial Reporting (100 Marks)
    Paper 2: Strategic Financial Management (100 Marks)
    Paper 3: Advanced Auditing and Professional Ethics (100 Marks)
    Paper 4: Corporate Laws and other Economic Laws (100 Marks)

    Group-II

    Paper 5: Advanced Management Accounting (100 Marks)

    Paper 6: Financial Services and Capital Markets & Information Systems Control and Audit (100 Marks)

    • Part I: Financial Services and Capital Markets (50 Marks)
    • Part II: Information Systems Control and Audit (50 Marks)

    Paper 7: Advanced Direct Tax Laws & International Taxation

    • Part I: Advanced Direct Tax Laws (70 Marks)
    • Part II: International Taxation (30 Marks)

    Paper 8: Advanced Indirect Tax Laws (100 Marks)

  • DIRECT TAX NOTIFICATION - July 03, 2015

    In exercise of the powers conferred by section 59 and section 63(1) of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, the Central Government hereby notifies vide Notification no. 57/2015, dated 1st July, 2015

    • A person may make a declaration in respect of an undisclosed asset located outside India on or before 30 September, 2015
    • a person shall pay the tax and penalty in respect of the undisclosed asset located outside India so declared on or before 31 December, 2015

    Link: http://www.incometaxindia.gov.in/communications/notification/notification57_2015.pdf

  • Clarification about ROLLBACK PROVISIONS in Transfer Pricing!! - June 22, 2015

    DIRECT TAX UPDATE

    The provisions of Advance Pricing Agreement (APA) were introduced in Income Tax Act, 1961 w.e.f. 1 July, 2012 via Finance Act, 2012. Section 92CC and Section 92CD of the Income Tax Act, 1961 relate to the legal provision relating to Advance Pricing Agreement and its effect.

    APA is an agreement between a taxpayer and tax authority so as determine the arm’s length price or specifying the manner in which arm's length price is to be determined in respect of international transaction for future years.

    Rollback provisions in APA scheme was introduced by section 92CC(9A) by Finance Act (No. 2), 2014. Rule 10MA and Rule 10RA have also been notified in respect of rollback provisions.

    Certain clarification made by the Board in respect of Rollback provisions in Advance Pricing Agreement Scheme have been discussed hereunder:

    1. Return of income for rollback year: The return of relevant rollback year should have been filed on or before due date specified under section 139(1). This includes return filed under section 139(5) since a return can be revised only if it is filed on or before due date specified under section 139(1). However, rollback provisions would not be applicable to a return filed under section 139(4) i.e. Belated Return.
    2. Which international transaction?: An international transaction in respect of which rollback provision is to be allowed should be the same as one proposed to be undertaken in future years and in respect of which agreement has been entered.

      The term “same” international transaction implies that the transaction in the rollback year has to be of same nature and undertaken with same associated enterprise(s), as proposed to be undertaken in the future years and in respect of which agreement has been made.
    3. Application for all four years, compulsory?: The option is not available to the applicant to choose the year for which he wants to apply for rollback. The application has to be made either for all the four years or not made at all. However, if the international transaction did not exist in a rollback year or there is some disqualification, then application can be made for less than four years i.e. for the remaining year.

      Also, if the test for rollback conditions is not met in respect of any of the rollback year, then the benefit of rollback would be denied for that year. However, rollback can be applied for other years.
    4. Appeal disposed off by ITAT: Rollback is not allowed in respect of international transaction for which ITAT has disposed off the appeal. ITAT is final fact finding authority and hence, the matter has reached finality on the basis of factual issues.

      However, if the matter is not decided by ITAT and has been set aside for fresh consideration by lower authorities and therefore, the matter has not reached finality. Thereby, allowing the benefit of rollback provision.
    5. Rollback provision having the effect of reducing the total income or increasing the loss: If the agreement between Board and the applicant is subject to the condition that ALP would get modified to the extent that it does not result in reducing the total income or increasing the total loss.

      For illustration, if the declared income is ` 120 crore, the income adjusted by TPO comes out to ` 150 crore and with the application of rollback provisions, the income is reduced to ` 100 crore. In such a case, the rollback for the year would be determined in the manner so as to treat declared income of ` 120 crore as final income.
    6. Failure on part of Applicant, cancellation of entire Agreement or only for that year: Rule 10RA specifies action to be taken by the Applicant in order that effect may be given to the rollback provision. If such action is not carried out by the applicant, entire agreement shall be cancelled. It is so because rollback provisions were introduced for applicant’s benefit and are applicable at the option of the applicant. Hence, if applicant fails to take required action, entire agreement gets cancelled.
    7. Mutual Agreement Procedure (MAP): If MAP has already been concluded for any international transaction in any of the rollback year under APA, rollback provisions would not be allowed in respect of those international transactions in that year. However, rollback provisions could be allowed in respect of other year or for other international transaction for that year.

      If MAP request is pending for any rollback year under APA, the applicant has an option to either proceed using MAP or apply for rollback in respect of such year.
    8. The manner of determination of ALP (i.e. choice of method, comparability analysis and tested party) would be same. However, the ALP so computed may be different.
    9. Withdrawl of rollback application, POSSIBLE?: The applicant has an option to withdraw rollback application even while maintaining the APA application for future years. However, it is not possible to accept the rollback result without accepting APA for future years. It must be noted that the fees paid by the applicant shall not be refunded where rollback application is withdrawn.
    10. APAs already concluded should be revised to the extent so as to include rollback provisions in them. Signing of new APA is not required. It is sufficient to revise the APA.
    11. Merger of companies, where one or more companies are APA applicants: The APA agreement is between applicant and the Board. The principle to be followed is that the applicant would be entitled for the rollback provision in respect of international transactions undertaken by it in the rollback years. Any company other than applicant who have merged with the applicant would not be eligible for rollback provision.

      For illustration, if X, Y and Z merge to form Z. Z is an APA applicant, then the agreement can only be entered with Z and only Z would be eligible for rollback provisions. X and Y would not be eligible for rollback provisions.
    12. Demerger of APA applicant: Similar principle is followed as in case of merger that the person who makes an APA application or enters into an APA would be entitled for rollback provisions. For illustration, if X has applied for or entered into an APA and subsequently demerges into X and Y. In such a case, only X would be eligible for rollback for international transaction covered under the APA.

      The above mentioned clarifications have been made by the Board via Circular 10/2015, dated 10th June 2015.

      For further details, visit:
      http://www.incometaxindia.gov.in/communications/circular/circular_no_10_2015.pdf

  • Announcement for IPCC students - June 15, 2015

    The topic “Financial Reporting of Electricity Companies” would be excluded from the syllabus of Intermediate (IPC) Paper 5 : Advanced Accounting and the same would not be applicable from November, 2015 Examination and onwards.

    Link: http://www.icai.org/new_post.html?post_id=11627&c_id=342

  • As per the announcement of ICAI for CA Final - June 15, 2015

    • The following topic would be excluded from the syllabus of Final Paper 1 : Financial Reporting and the same would not be applicable from November, 2015 Examination.
      • Overview of International Accounting Standards (IAS) / International Financial Reporting Standards (IFRS)
      • Interpretations by International Financial Reporting Interpretation Committee (IFRIC)
      • Significant differences vis-a-vis Indian Accounting Standards
      • Understanding of US GAAPs
      • Applications of IFRS and US
    • The below mentioned topic would be included in the syllabus of Final Paper 1 : Financial Reporting and the same would be applicable from May, 2016 Examination.
      • Introduction of Indian Accounting Standards (Ind AS)
      • Comparative study of ASs vis-a-vis Ind ASs
      • Carve outs/ins in Ind ASs vis-à-vis International Financial Reporting Standards (IFRSs)

    Link: http://www.icai.org/new_post.html?post_id=11628&c_id=343

  • Beware: Fake CA Courses - May 31, 2015

    OPJS University, Churu (Rajasthan), is offering/conducting certain programmes/courses under the nomenclature “Master in C.A.” and “Bachelor in C.A.” (under the School of Chartered Accountant). Conduct of such courses under the said nomenclature are in contravention of various provisions of the Chartered Accountants Act, 1949 (CA Act) and various other laws. It is stated that the ICAI is seized of the said matter and appropriate action against the OPJS University, in accordance with the law, has been initiated.

    ICAI is the only body set up by an Act of the Parliament, viz. The Chartered Accountants Act, 1949, to regulate the profession of Chartered Accountants in India and no person/body other than the Institute can perform the functions entrusted to the ICAI under the said Act. The use of the expression “Chartered Accountant” or its abbreviation “C.A.” by a person other than the member of the ICAI is a punishable offence under the Chartered Accountants Act, 1949. Further, it may be mentioned that awarding any degree, diploma or certificate or bestowing of any designation which indicate or purports to indicate the position or attainment of any qualification or competence similar to that of a member of the ICAI is also punishable offence under the CA Act.

    Link: http://www.opjsuniversity.edu.in/school-of-chartered-accountant.html

  • Change in rate of service tax: when is which rate applicable? - May 25, 2015

  • New rate of service tax notified, applicable from June 1, 2015 - May 21, 2015

    New service tax rate of 14 % will come into effect from June 1, 2015. The service tax is currently levied at the rate 12.36 % including education cess.

    Section 66B of the Finance Act, 1994 prescribes the service tax rate. Section 108 has amended the rate of service tax. The rate of service tax has been increased from 12% to 14% (including cess). The increase in rate will be effective from June 1, 2015. (Notification No. 14/2015-Service Tax, dated 19th May 2015).

    Section 153 and section 159 of Finance Act, 2015 provides that section 95 of Finance (No. 2) of 2004 and section 140 of Finance Act, 2007 levying education cess and secondary and higher education cess , respectively shall cease to have effect from June 1, 2015 (Notification No. 14/2015-Service Tax, dated 19th May 2015).

  • Finance Act, 2015 enacted - May 21, 2015

    Finance bill, 2015 has received the presidential assent on 14th May 2015 and has now become Finance Act, 2015. All the provisions which were due to be effective from the date the Finance Bill receives the assent of the President have now been implemented w.e.f. 14th May 2015.

    It is worthwhile to mention that the following provisions would be applicable from the date yet to be Notified and have NOT BEEN implemented yet:

    • Increase in effective rate of Service Tax from 12.36% to 14%. Hence, there is no change in the rate of Service Tax w.e.f. 14th May 2015.
    • Imposition of Swachh Bharat Cess @ 2% on the value of taxable services.
    • Levy of Service Tax on Entry to Entertainment Events and Access to Amusement Facilities
    • Levy of Service Tax on contract manufacturing/job work for production of potable liquor for human consumption.
    • Levy of Service Tax on services provided by the Government or local authority to a business entity, except the services that are specifically exempted, or covered in the Negative List