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
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.
Intermediate (IPC) Examination
Group – I: 3rd, 5th, 7th, 9th May 2016
Group – II: 11th, 13th, 15th May 2016
Group – I: 2nd, 4th, 6th, 8th May 2016
Group – II: 10th, 12th, 14th, 16th May 2016
Source ICAI : http://resource.cdn.icai.org/40793exam30639.pdf
Source ICAI : http://resource.cdn.icai.org/40502bos30265.pdf
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.
Under the Foundation Course Route, the following steps are required:
Successfully complete Four Weeks Integrated Course on Information Technology & Soft Skills (ICITSS) before commencement of the practical training.
#Note : ICAI has decided in principle the above mentioned Scheme. However, the scheme will be noticed in the official Gazette in due course.
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:
#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.
There are 4 papers in CA Foundation course. Remember that Paper 2 and Paper 4 will be Objective type papers.
*Paper 2 and Paper 4 will be Objective type papers
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
Four week Integrated Course on Information Technology and Soft Skills (ICITSS)
Three year Practical Training
Advanced Four week Integrated Course on Information Technology and Soft Skills (ICITSS)
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)
Paper 5: Advanced Management Accounting (100 Marks)
Paper 6: Financial Services and Capital Markets & Information Systems Control and Audit (100 Marks)
Paper 7: Advanced Direct Tax Laws & International Taxation
Paper 8: Advanced Indirect Tax Laws (100 Marks)
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
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:
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.
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.
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 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: