1 May 2011

VAPI BRANCH OF WIRC OF VAPI BRANCH OF WIRC OF ICAIICAI

The institute of Chartered Accountant of IndiaThe institute of Chartered Accountant of India (A statutory Body Established Under an Act of PARLIAMENT(A statutory Body Established Under an Act of PARLIAMENT

NEWSLETTERNEWSLETTERNEWSLETTER Volume I, Issue 3, May 2011

2 May 2011

Dear Colleague,

Hope this communication finds you all in the best of health. Its summer

time and many of you would have enjoyed or are still enjoying vacation

along with our world famous mangoes for which we eagerly wait!! Just

as we have shortage of mangoes this time, the time is also running

short for us to start our tax audit assignments. It’s the time for us to

STOP, THINK and PLAN for the coming audit season.

The heat of this summer season in vapi resembles the heat-the

passion which has been burning in the minds and hearts of the commit-

tee of vapi branch. As a part of our determination, the furnishing work

of our branch premises has been in full flow. I would definitely wish to

see our branch functioning and with lots of buzz and hassle of members

and students at the branch premises in a very very short period of

time!!

The month of May was exam time for students of our branch. I

am happy that we could once again successfully conduct the exams at

our exam centre with the help our enthusiastic members. I am also

happy to inform you that a series of students activities are being final-

ized and shaped up by the WICASA committee in the coming days. I

request all students to take benefit from the same.

I am happy to inform you that the schedule of our RRC at Da-

man jointly with Anand branch has been finalized, the detailed sched-

ule of which would be communicated to you in few coming days. I wish

all of you participate and take advantage of the informative topics

which have been incorporated with renowned speakers gracing our con-

ference.

It is said that With every step you take with courage and

trust in GOD, you receive a thousand fold help from HIM!! When

we move together with all our steps, we are definitely sure to receive

help from the almighty in abundance!!!

Yours forever,

CA. Jignesh V. Vasani

Branch Chairman.

CHAIRMAN

MESSAGE

Managing Commit-

tee for the Year

2011-12 CA. Jignesh Vasani

(Chairman)

CA. Giriraj Laddha

(Vice Chairman)

CA. Prakash Chordia

(Treasurer)

CA. Hitesh Patel

(Secretary)

CA. Jaiprakash Shethiya

(Founder Chairman)

CA. Deepak Desai

(Ex– Officio Member)

Contents of this

Issue

1. Income –tax Update

(Page No 4)

2. Download Online TDS

Certificate( Page No 5)

3. Direct Tax Code bill of-

fers big savings to tax-

payers (Page No 6)

4. Service Tax on Con-

struction Service (Page

7-8)

5. Registration of Service

Tax (9-10)

6. Provisions for Registra-

tion Act (Page 11-12)

7. Internet banking: 8 dos

and don'ts.(Page 13-14)

8. Professional Opportuni-

ties/ Capacity Building

Measures.(Page 15-17)

9. Glimpse of Past Event

(Page 19)

3 May 2011

FROM THE DESK OF

SECRETARY

♦ CPT Mock Test on 5th June’2011.

♦ Investment Awareness Programme on 11th June’2011.

♦ R.R.C on 17th -19th June’2011 in Mirasol Resort, DAMAN, Jointly with

Anand Branch of WIRC of ICAI.

♦ Branch Level Elocution Contest on 18th June’2011.

1. Indian Premier League-Entertainment In, Performance Out.

2. Should there be an entry of foreign educational institutions/Universities in

India.

3. Significance of CA Profession and Women.

4. Does modern technology make life more convenient?

5. How to control over Terrorism.

♦ Career counselling for Students on 27th June’2011.

♦ Reminder — Directory of Vapi Branch to be compiled ( Contact CA. PRAKASH CHORDIA

& CA. HITESH PATEL ) latest by 15st June 2011.

♦ Planning for CUG among members.

FORTH COMING EVENTS FOR THE MONTH OF JUNE ’2011

Important event that took place at Valsad, when the entire managing commit-

tee went to meet members of Valsad at Circuit House on 9th April. The meeting was

very fruitful and a land mark decision was taken unanimously in the meeting re-

garding the minimum fees to be charged for Tax Audit Assignments by every member. It was agreed to charge a minimum of Rs 6,000/- in Valsad by every mem-

ber for tax audit assignments at Valsad. A similar meeting was also held at Vapi,

wherein the minimum fee of Rs 7,500/- was fixed for tax audit assignments at Vapi.

4 May 2011

NEW SECTION 44AD (1) AND TAX AUDIT APPLICABILTY U/S 44ABNEW SECTION 44AD (1) AND TAX AUDIT APPLICABILTY U/S 44ABNEW SECTION 44AD (1) AND TAX AUDIT APPLICABILTY U/S 44ABNEW SECTION 44AD (1) AND TAX AUDIT APPLICABILTY U/S 44AB

The section 44AD (1) substituted for the existing section 44AD by the Finance (No. 2)

Act, 2009, w.e.f. 1-4-2011 :

Special provision for computing profits and gains of business on presumptive basis.

44AD. (1) Notwithstanding anything to the contrary contained in sections 28 to 43C, in the case

of an eligible assessee engaged in an eligible business, a sum equal to eight per cent of the total

turnover or gross receipts of the assessee in the previous year on account of such business or, as

the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible

assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the

head “Profits and gains of business or profession”.

(2) Any deduction allowable under the provisions of sections 30 to 38 shall, for the purposes of

sub-section (1), be deemed to have been already given full effect to and no further deduction under

those sections shall be allowed :

Provided that where the eligible assessee is a firm, the salary and interest paid to its partners

shall be deducted from the income computed under sub-section (1) subject to the conditions and

limits specified in clause (b) of section 40.

(3) The written down value of any asset of an eligible business shall be deemed to have been calcu-

lated as if the eligible assessee had claimed and had been actually allowed the deduction in re-

spect of the depreciation for each of the relevant assessment years.

(4) The provisions of Chapter XVII-C shall not apply to an eligible assessee in so far as they relate

to the eligible business.

(5) Notwithstanding anything contained in the foregoing provisions of this section, an

eligible assessee who claims that his profits and gains from the eligible business are

lower than the profits and gains specified in sub-section (1) and whose total income ex-

ceeds the maximum amount which is not chargeable to income-tax, shall be required to

keep and maintain such books of account and other documents as required under sub-

section (2) of section 44AA and get them audited and furnish a report of such audit as

required under section 44AB.

Explanation.—For the purposes of this section,—

(a) “eligible assessee” means,—

(i) an individual, Hindu undivided family or a partnership firm, who is a resident, but

not a limited liability partnership firm as defined under clause (n) of sub-section (1)

of section 2 of the Limited Liability Partnership Act, 2008 (6 of 2009); and

(ii) who has not claimed deduction under any of the sections 10A, 10AA, 10B, 10BA or

deduction under any provisions of Chapter VIA under the heading “C. - Deductions

in respect of certain incomes” in the relevant assessment year;

(b) “eligible business” means,—

(i) any business except the business of plying, hiring or leasing goods carriages referred

to in section 44AE; and

(ii) whose total turnover or gross receipts in the previous year does not exceed an amount of

96a[sixty lakh rupees].

(Complied by CA. Prakash Chordia)

INCOME-TAX UPDATE

5 May 2011

10 Simple steps to Download online

TDS Certificates in Form No. 16A from NSDL website

1. In order to enable you to generate the TDS Certificates through TIN Website, you will be

required to follow the following steps:

2. The deductor has to register their TAN with NSDL website. Click on the “Online TAN

Registration” available in the home page of www.tin-nsdl.com and follow the due proce-

dures mentioned therein.

3. Upon registration the deductor would be allotted a Reference Number. Note down this

number.

4. The deductor will also receive an email from NSDL informing the Reference Number,

User Name, Password…etc

5. After confirmation of registration formalities, again visit the website www.tin-nsdl.com

and Login to TAN Account

6. Provide the User Name, Password and TAN Number

7. Provide the details as asked for by the website for every quarter. You will receive by email

a text file from NSDL.

8. Now the said text file needs to be converted into a PDF file / TDS certificate (Form 16A).

Requisite conversion software provided in the website itself.

9. Once converted, the TDS certificates will be saved in the computer automatically at the

defined path.

10. Take print out of the certificates and check the same for 100% accuracy

If found in order, affix seal and signature and issue the certificate to the deductees by ei-

ther using digital signature or manual signature.

(Complied by CA.. Giriraj B Laddha)

INCOME-TAX UPDATE

To overcome the mismatch between TDS Certificate in Form No.16A and Form No, 26AS , the

CBDT has issued Circular No.3 dated May 13th 2011 laying down therein that a common link

has now been created between the TDS certificate in Form No.16A and Form No. 26AS through

a facility in the Tax Information Network website (TIN Website) which will enable a deductor to

download TDS Certificate in Form No.16A from the TIN Website based on the figures reported

in e-TDS statement filed by him/them. As both Form No.16A and Form No.26AS will be gener-

ated on the basis of figures reported by the deductor in the e-TDS statement filed

6 May 2011

According to quick calculations

under the new tax structure as

proposed in the DTC bill those

earning between Rs 2 lakh and

Rs 5 lakh per annum will get tax

benefit of Rs 7,660, tax burden

will be reduced by Rs 21,540 for

those earning between Rs 5 lakh

and Rs 10 lakh. Those earning

more than Rs 10 lakh a year are

likely to get a huge tax benefit of

Rs 41,040 under the new tax sys-

tem. However, the benefits would

have been much more had the

government retained the tax

slabs proposed in the original

DTC initiated in August

2009. The DTC bill, proposes to

raise the exemption limit on In-

come Tax from the current Rs 1.6

lakh to Rs 2 lakh and seeks

to widen tax slabs to levy 10 per

cent rate on income between Rs 2

lakh and 5 lakh, 20 per cent on

Rs 5-10 lakh and 30 per cent

above Rs 10 lakh.

For senior citizens the tax ex-

emption limit will be raised to Rs

2.5 lakh from Rs 2.40 lakh. For

women Income Tax payee the

DTC has not brought any cheer

as it proposes to treat the fairer

sex with their male counterpart

on equal footing as far as exemp-

tion limit is concerned. The pro-

posed tax slabs under the bill are

much lower than originally sug-

gested in the first draft of DTC

— 10 per cent for Rs 1.6 lakh to

Rs 10 lakh, 20 per cent from Rs

10-25 lakh and 30 per cent for

income above Rs 30 lakh. How-

ever, what surprised everyone is

the postponement of the DTC

Bill implementation by an year

from April 1, 2012. “The DTC

will become effective after ap-

proval by Parliament from April

1, 2012.

The first return of income under

its provisions will be filed after

March 31, 2012,” Revenue Secre-

tary Sunil Mitra clarified. He

was of the view that people need

time to understand the nuances

of the new Bill, hence the post-

ponement. It has proposed to

enhance the tax incentives for

individuals from the existing Rs

1 lakh to Rs 1.5 lakh. The deduc-

tion for individuals on account of

tax incentives will be up to Rs 1

lakh for approved long term sav-

ings like PF, Superannuation

Fund, Gratuity Fund and Pen-

sion Fund. Apart from this there

will be tax incentives up to Rs

50,000 for expenditure on tuition

fees of children, pure life insur-

ance premium and health insur-

ance payment.

Besides, there will be separate

deduction from taxable income

for interest paid on education

loan and for payment of expenses

of disabled person or disabled

dependent. Significantly, the bill

has dropped the earlier proposals

of taxing long term savings like

GPF, Public Provident Fund and

EPF at the time of withdrawal

under the EET (Exempt-Exempt-

Tax) mode.

(Complied by CA. Hitesh Patel)

Direct Tax Code bill offers big savings to taxpayersDirect Tax Code bill offers big savings to taxpayersDirect Tax Code bill offers big savings to taxpayersDirect Tax Code bill offers big savings to taxpayers The government, on Monday, tabled the Direct Tax Code (DTC) bill

which when implemented from April 2012, will bring substantial savings to millions of

taxpayers in the country.

ARTICLE

7 May 2011

Service Tax on Construction Service

ARTICLE

The service tax provisions relating to construc-

tion services cover two types of services - (a)

Commercial or industrial construction which is

taxable w.e.f. 10-9-2004 and (b) Construction of

complex (residential complex of more than 12

residential units) which is taxable w.e.f. 16-6-

2005.

However, on basis of Court decisions and

CBE&C circulars, it was more or less settled

that a builder entering into contract for sale of

flat or industrial unit (gala) or shop or a devel-

oper entering into contract for construction of an

individual flat for personal residential use of

client are not liable to pay service tax.

What is the change made in Budget 2010?

In the Finance Act, 2010, an Explanation has

been added w.e.f. 1-7-2010, to the definition of

‘commercial or industrial construction’ and

‘construction of residential complex’,

Brief the effect of the change?

The effect of the change is that the service tax

will not apply only when a builder sales a ready

flat or shop or industrial unit

(gala) after Building completion certificate is

obtained from local authority (like Municipal

Corporation, Municipality, Gram Panchayat

etc.) and entire consideration is obtained only

after building completion certificate is ob-

tained.

In all other cases, the builder will be liable to

pay the service tax.

Is the amendment with retrospective ef-

fect?

It cannot have retrospective effect prior to 1-7-

2010.

Will the amendment apply to works con-

tract service?

The amendment will not apply if the contract is

covered under works contract service i.e. where

Vat/Sales tax is payable on the contract.

2 Transitory provisions

Whether service tax will apply only in

case of fresh bookings or will apply in

case of earlier bookings also?

Date of booking is not relevant. Date of provi-

sion of service is relevant as provision of service

is the taxable event. Hence, if construction ser-

vice is provided after 1-7-2010, service tax will

be payable.

If the construction is partly complete on 1-

7-2010, what would be the service tax li-

ability?

Receipt of payment or advance is not relevant

for determining tax liability. Thus, a builder/

developer is not liable to pay service tax in re-

spect of services provided up to 1-7-2010. Such

bifurcation is possible only if the builder/

developer keeps proper accounts and records.

It is highly advisable to issue invoices (running

bills) in respect of services provided up to 1-7-

2010 and/or obtain certificate from Architect/

Chartered Accountant regarding stage of com-

pletion of construction as on 1-7-2010.

If construction of residential complex is

fully completed before introduction of the

new construction service, but completion

certificate from local authority has not

been granted till 1-7-2010 though applied

for, whether service tax will become pay-

able? If so, how to calculate tax liability?

If construction is complete before 1-7-2010, no

tax is payable as service tax is on provision of

service which is the taxable event. Receipt of

payment does not decide tax liability.

What would be position if construction is

complete but application for completion

certificate is not yet submitted?

Even then, there is no service tax liability if

you establish that construction was completed

before cut off date of 1-7-2010.

8 May 2011

Service Tax on Construction Service If the customer has paid 100% advance ir-

respective of completion certificate or

possession before the cut off date i.e. 1-7-

2010, then service tax will be imposed or

not?

Thus, if advance payment was received prior to

1-7-2010, service tax will not be payable even if

service in respect of that advance is provided

after 1-7-2010.

3 When service tax is payable

Whether service tax is payable on comple-

tion of construction or in stages?

Service tax is payable on receipt basis and

hence as you get payment for construction ser-

vice from your customer, you have to pay ser-

vice tax on that amount.

Advance has been received from customer

before 1-7-2010 but service is to be pro-

vided after 1-7-2010. When service tax

should become payable?

As explained above, service tax in relation to

such advance has been exempted vide Notifica-

tion No. 36/2010-ST dated 28-6-2010. Hence,

service tax will not apply even if the service is

provided after 1-7-2010.

4 Liability of service tax

What is the rate of service tax?

Service tax is payable on gross value of taxable

services @ 10.30% (Service tax 10%, plus educa-

tion cess of 2% plus SAH education cess of 1%).

What will be the basic exemption for ser-

vice tax to a person coming in service tax

net for the first time on 1-7-2010?

The exemption is Rs 10 lakhs in first year of

taxable service counting from 1-7-2010, if you

are coming in tax net for the first time. If turn-

over in 2010-11 exceeds Rs 10 lakhs, then there

will be no exemption and tax is payable on all

services from 1st April 2011 onwards.

Service tax has been charged to customer

and deposited with department. Later,

customer surrenders the booking and re-

fund is made to him. What are the implica-

tions in service tax?

If you refund the entire amount along with ser-

vice tax to customer, then you can adjust the

service tax in your subsequent payments of ser-

vice tax .

5 Valuation of service

Whether service tax is charged on agree-

ment price of the flat, shop or indus-

trial gala?

If a service provider has proper costing records,

it is permissible to deduct value of material and

land (or calculate value of service on cost plus

profit basis) and pay service tax on value of ser-

vice @ 10.30%.

If this is not feasible, then tax is payable @

10.30% on 25%/33% of entire value of contract

including material.

(w.e.f. 1-7-2010) – (a) on 33% of gross amount

charged if the gross amount does not include

value of land (b) on 25% of gross amount

charged if the gross amount includes value of

land (Till 1-7-2010, the 25% scheme was not

available. Only 33% scheme was available).

This is at the option of service provider.

This method is also not applicable if service is

covered under ‘works contract service’.

6 Cenvat Credit

Whether there is a provision of claiming

deduction (setoff) on service tax paid to

professionals, contractors, etc.

This is termed as Cenvat credit. You can get

and utilise Cenvat credit of all your input ser-

vices and capital goods only if you are paying

service tax on the value of services @ 10.30%. If

you are paying service tax under simplified

scheme on 25%/33% of total value, you cannot

avail any Cenvat credit at all.

(Compiled by CA. Chhaya M. Kothari)

9 May 2011

REGISTRTION UNDER SERVICE TAX REGISTRTION UNDER SERVICE TAX REGISTRTION UNDER SERVICE TAX REGISTRTION UNDER SERVICE TAX

1. Registration:

∆ Every person providing taxable services is required to make application to jurisdic-

tional superintendent within 30 days from the date of commencement of business.

The exemption from registration is provided if the aggregate value of taxable ser-

vice in a financial year is below Rs. 9 Lakhs. This exemption is optional; if any ser-

vice provider wants to get registered he can do so even if the taxable value of ser-

vice is below Rs. 9 Lakhs.

∆ In case of import of services, the service receiver is liable to obtain registration un-

der reverse mechanism. For eg. Manufacturing facility is in India and commission

agent is based at abroad who is procures business on behalf of manufacturer, than

the manufacturer is liable to get himself registered.

∆ In case of transport of goods by road services, if the payer is consignee or consignor,

than such consignee or consignor is liable to obtain registration.

∆ In case where services are consumed at office such office can obtain the registration

under Input Service Distributor and pass on the benefit of the service tax to manu-

facturing location(s).

∆ If a person is providing service from more than one premises, such person can ob-

tain registration under centralised billing or centralised accounting from the prem-

ises where billing or accounting is centralised. Such application for centralised reg-

istration has to be done with the Commissioner of Central Excise.

2. Jurisdiction where one should apply for registration:

CENTRAL EXCISE COMMIS-

SIONERATE JURISDICTION

DAMAN COMMISSIONERATE The areas of Daman in the Union Territory of Daman and

Diu, Valsad District [excluding areas falling on eastern side

of National Highway No.8 surrounded by Daman-Silvassa

Road in North (Pardi Taluka) and Maharashtra Border in

South (Umbergaon Taluka)] and the Dangs District,

Navsari District in the State of Gujarat.

VAPI COMMISSIONERATE The Union Territory of Dadra and Nagar Haveli and area

falling on eastern side of National Highway No. 8 sur-

rounded by VAPI-Silvassa road in North (PARDI Taluka)

and Maharastra border in South (Umbergaon Taluka) and

Umbergaon Taluka in the district of Valsad in the state of

Gujarat.

ARTICLE

10 May 2011

DETAILS FOR DIRECTORY INFORMATION REGISTRTION UNDER SERVICE TAX REGISTRTION UNDER SERVICE TAX REGISTRTION UNDER SERVICE TAX REGISTRTION UNDER SERVICE TAX

3. Mode of application:

∆ Application for registration has to be made

online on the website www.aces.gov.in.

∆ We need to enclose with the application the

attested photocopies of PAN card, proof of

address, constitution of applicant and power

-of-attorney in respect of authorised person.

∆ The department is required to issue the reg-

istration certificate within 7 days of the re-

ceipt of the application. In case of failure to

issue registration certificate within 7 days,

the registration applied for is deemed to

have been granted and the assessee can

carry on with his activities. In my opinion

the date of application is the date when the

hard copies alongwith necessary supporting

is submitted with the department. But it is

important to note that until the ST-2 is gen-

erated by the department the Bank will not

accept the payment, as the registration

number will not be displayed in Banks re-

cord.

4. Amendment:

∆ In case any change in service or addition of

service or any modification or edition in in-

formation, the application for amendment is

to be made within 30 days of such change.

5. Penalty for not obtaining registration:

∆ If a person required to take registration,

fails to take registration, he shall be liable

to pay a penalty which may extend to Rs.

10,000/- or two hundred rupees for every

day during which such failure continues,

whichever is higher, starting with the first

day after the due date, till the date of actual

compliance.

(Compiled by CA. Gagan Kumar Chaturvedi)

VAPI BRANCH OF WIRC OF

ICAI DETAILS REQUIRED AS FOR MAKING

DIRECTORY OF THE BRANCH :-

NAME :-

FIRM NAME :-

MEMBERSHIP NO.:-

ACA / FCA :-

D.O.B :-

OFFICE ADDRESS :-

PHONE : MOBILE :

Email Add :

RESIDENCE ADDRESS :-

Phone :

SPOUSE NAME :-

MARRIAGE ANNIVERSERY :-

BLOOD GROUP :-

NOTE :- PLEASE PROVIDE ONE PASSPORT

SIZE PHOTOGRAPH.

SEND THE DETAILS TO FOLLOWING PER-

SON :-

NAME

C.A PRAKASH CHORDIA Mobile No:

9825135470

Address: G-102, City Point, GEETA NAGAR, NR.

RAILWAY STATION,VAPI

C.A HITESH PATEL Mobile No:9898069105

Address: 411,GARNET BUILDING,SEVEN JEW-

ELS,NR. BHAVSAR PETROL PUMP,VAPI

11 May 2011

IMPORTANT PROVISIONS OF REGISTRATION ACT, 1908

The Chartered Accountants has been known for their comprehensive knowledge in Au-

dits and Income Tax matters. This is the era of the “Survival of the Fittest” and our

profession is no exception to it. Our profession requires incessant up gradation regard-

ing various laws and practices, be it Labour Laws, Cyber Laws, Stamp Duty Act, Regis-

tration Act or any other acts, the knowledge of which will help in the overall develop-

ment of not just our Chartered Accountants but will also enhance the reputation of our

profession.

♦ Documents which are to be compulsorily registered under the Registration

Act, 1908.

⇒ Instruments that make a gift of immovable property.

⇒ Any instrument that creates or alters an) right in or to immovable property,

where the value involved is of more than hundred rupees.

⇒ Receipts for sum paid f o r creation or alteration of any right in or to immov-

able property, where the value involved is of more than hundred rupees.

♦ The effects of non-registration of documents that require registration under

Registration Act, 1908.

⇒ The document cannot cause any changes in the rights to or interest in any im-

movable property.

⇒ It will not be admitted as evidence orally transaction mentioned in the document,

as per the Indian Evidence Act, 1872.

⇒ Any document covered under Section 17. If not registered, will not have the same

effect as it would have had if it had been registered.

♦ Section 18 of the Registration Act, 1908 provides for those documents

whose registration is optional. These are as under –

⇒ Instruments that create extinguish or alter any right or interest in immovable

property exceeding rupees one hundred in value.

⇒ Instruments that recognize the receipt of any recompense for the above.

⇒ Instruments that create extinguish or alter any right or interest in movable prop-

erty.

⇒ Leases for which registration is exempted and the period of which is less than a

year.

⇒ Wills

⇒ Instruments create, extinguish or alter any right or interest in immovable prop-

erty for less than rupees hundred.

ARTICLE

12 May 2011

IMPORTANT PROVISIONS OF REGISTRATION ACT, 1908

♦ Registration of Will

⇒ The registration of a will is optional under Section 18 of the Registration Act.

1908 that if unregistered, it will not be rendered invalid or in-operative.

⇒ Section 27 provides for the method of presentation of w i l l for registration; it says

that a will Can he presented for registration anytime after it is made.

⇒ Following person can present the will for registration

Executor

Representative of Executor

Assignee of Executor

Agent of Executor

'testator. or after his death by any person claiming as executor or otherwise.

⇒ Section 41 - The authority to which the will is presented will check to see whom

the will was presented by. and also whether the person presenting it had the au-

thority to do so. He will check also if the testator has expired.

⇒ Section 42 - The will can be deposited personally or by authorizing someone for

this act. It has to be given in a sealed envelope, with the name of the testator on

the en velope, the name of the testator's agent, if he had authorized someone to be

his agent, and a brief description about the nature of the document contained in

the envelope.

⇒ Section 43 - The Registrar, on being satisfied, shall enter the details in his Regis-

ter No. 5 and place and retain the sealed cover in his fireproof box.

♦ Place for registering documents pertaining to land and other documents.

⇒ Sections 28 and 29 of The Registration Act, 1908 cover the provisions for the

place of registration of documents related to land and other property.

⇒ According to Section 17 of the Act, documents relating to creation, diminution or

alteration of rights related to immovable property. if not registered. will not have

the same effect as it would have had if it had been registered.

⇒ Section 28 provides that all documents mentioned in Section 17 as compulsorily

register able, would be registered in the office of the sub-registrar in whose juris-

diction or sub-district the property or a part of it is located. Any other document

would be registered in the office of the Sub-Registrar within whose jurisdiction

the document was executed, or where the persons who are executing the docu-

ment want it to be registered.

⇒ Section 29 provides for all other documents, for example, a decree or court order

needs to be presented in the office of the sub-registrar where the decree or order

was executed, or at the place where the persons in whose favor the decree has

been passed want it to be registered.

(Compiled by CA. Dhaval Ghadiyali)

13 May 2011

Internet banking: 8 dos and don'ts

ARTICLE

Most internet frauds result from poor customer awareness. The biggest concern for

online customers is the possible theft of their online credentials, especially those re-

lating to net banking. This often happens without the customers’ knowledge, enabling

fraudsters to steal money from their accounts in a recurring manner.

Here’s how you can guard against them.

Strong password

Make net banking passwords difficult to guess,

change them regularly. Also, never share them

with anyone, meaning just anyone.

Virus scanning

Scan email attachments for viruses before

opening them. When unsure about the source

of an attachment, delete it.

Customers should install a good anti-virus sys-

tem on their PCs and ensure that it is updated

regularly.

Make sure site is safe

Before keying in sensitive information, ensure

the site is running in a secure mode by looking

for the padlock symbol at the bottom of the

browser

14 May 2011

Internet banking: 8 dos and don'ts

Never share your CVV no.

Don’t share your password or CVV details

orally with banks. Bank never asks for confi-

dential information like user ID, password,

credit card number, CVV, etc, via mail, SMS or

bank initiated phone calls.

No paper work

Never note down user ID, password on piece of

paper, documents or phones for easy retrieval.

Make sure it is Bank site

Don’t access bank website from a link provided

in an email from any source. Instead, type the

address of the bank website in the address bar

of browser to access the bank account. Don’t

click on any link provided in emails, they may

redirect users to a fake/phishing site.

Say no to password re-

minders

Customers should also never use the

‘remember password’ feature provided by

browsers to save their net banking passwords.

No Net banking from cyber cafes

Don't access Net banking from cyber cafes. If

you have to, use the virtual key board to key in

details and ensure you log out of the system

once you are done.

(Compiled by CA. Chhaya M. Kothari)

15 May 2011

DISA Holder to Conduct System Audit:

As per the RBI vide its recent circular relating to submission of system audit reports has al-

lowed a holder of a Diploma in Information System Audit (DISA) of the ICAI to conduct

system audit of Authorised Payment System Operators and Entities, apart from a Certified In-

formation Systems Auditor (CISA) and registered with Information Systems Audit and Control

Association (ISACA).

Partnership” in the CA Act, 1949, CWA Act, 1959 and CS Act, 1980:

The ministry of Corporate Affairs has issued a general circular dated 4th April, 2011, clarifying

that the word “partnership” wherever occurring in the Chartered Accountants Act, 1949, the

Cost and Works Accountants Act, 1959 and the Company Secretaries Act,1980 shall mutatis

mutandis be construed as including those limited liability partnerships (LLPs) where all the

other partners are natural persons (individuals) and that the word “partner” shall also be con-

strued accordingly. The matter was considered by the Council recently and, it has been decided

to allow all existing CA firms to convert themselves into LLPs, which would enable CA firms to

grow bigger and increase their capacity. It has also been decided that, upon conversion, firms

will be permitted to retain their seniority and all benefits of merger, networking, etc., will be

available to the LLPs. Thus, small and medium firms will be able enhance their capacities by

including personnel with multidisciplinary competency, and grow big.

Portals for SMPs would be a Reality:

The steps have been taken to create a website where small and medium practitioners may cre-

ate their portals as per the norms laid down by the Council of the Institute. Thus, all CA firms

will be able to upload details of their firms on the proposed website from their end and it shall

also provide them an opportunity to reach out to the international practitioners. It has also

been initiated to arrange for e-library, knowledge portal (including blogs, discussion forums,

etc.), CA net-book facility, downloadable resources for reference including software for office

management for members and firms.

ICAI –UPDATES/INITIATIVE

Professional Opportunities/ Capacity Building Measures

16 May 2011

MoU/MRA/Joint Declarations signed with Foreign Bodies

1. Mutual Recognition Agreement with The Canadian Institute of Chartered Accountants

(CICA)

2. Memorandum Of Understanding With Higher Colleges Of Technology, Ministry Of Higher

Education And Scientific Research, UAE

3. Mutual Recognition Agreement between ICAI and CPA Ireland

4. ICAI Signs Joint Declaration with The Bahrain Institute of Banking and Finance

5. Memorandum of Understanding (MoU) with The Institute of Chartered Accountants in Aus-

tralia .

6. Memorandum of Understanding (MoU) between ICAI and University of Djbouti on Africa

Day Celebrations.

7. Mutual Recognition Agreement (MRA) with Certified Public Accountants, Australia .

8. License Agreement with ISACA .

9. Memorandum of Understanding (MoU) with The Institute of Chartered Accountants in Eng-

land and Wales .

Recommended Fee Structure on Professional Assignments:

The Council has considered the minimum Recommended Scale of Fees for professional assign-

ments done by our members, which is about the fee as per the work performed for various pro-

fessional assignments and the amount quoted under respective heads of professional work. The

fee has been recommended separately for metros and non-metros, so as to enhance the produc-

tivity and capacity-building of practitioners and CA firms and benefit largely the SMP segment.

Benevolent Measures for the Profession:

To strengthen the competence of members and firms, ICAI have initiated IT measures to em-

power them by providing tax-solution software with initial license free of cost for two years.

Such a technological empowerment is to eventually help members in efficient documentation

and knowledge and contact management and enable them in strengthening their practices in

the field of taxation and audit

Professional Opportunities/ Capacity Building Measures

17 May 2011

18 May 2011

GLIMPSE OF PAST EVENTS

Audience at VIA for TDS Workshop

19 May 2011

VAPI BRANCH OF WIRC OF The Institute of Chartered Accountants of India.VAPI BRANCH OF WIRC OF The Institute of Chartered Accountants of India.VAPI BRANCH OF WIRC OF The Institute of Chartered Accountants of India.

3rd Floor, Yamuna Complex, N.H.No 8, Near Gokul Vihar First Gate,Vapi- 396195.

Tele:- 0260-3981000. E-mail:- vapibranch125@yahoo.com.

Disclaimer:- While every effort is made to ensure that the information contained within this newsletter is cor-

rect, Vapi Branch of WIRC of ICAI is not responsible for the accuracy or otherwise of information provided by the contributors.

Vapi Branch of WIRC managing committee at felicitation function of Presi-

dent and Vice President of ICAI

Bank Audit Seminar on 23rd March 2011

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