Now - nirc

Transcription

Now - nirc

DEC. 15 - JAN.-2016
Page No. 1 to 24
Vol. 21 No. 12
Price of Single Copy ` 20/Annual Subscription ` 200/-
(Newsletter of Northern India Regional Council of ICAI-CMA)
Make in India - Role of CMAs
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
(Statutory Body under an Act of Parliament)
NIRC, CMA Bhawan, 3 Institutional Area, Lodhi Road, New Delhi - 110 003
Ph. : 24626678, 24615788, E-mail : nirc@icmai.in, Website : www.nirc-icmai.in
Message
CHAIRMAN'S COMMUNIQUE
The programme was started with full enthusiasm with key
note speech by the Chairman- NIRC detailing that the
programme is oriented to tell to all stake holders that CMAs
are real professionals to deliver on the concept of Make in
India through their expertise. Letters of Invitation detailing
brief about us was sent to all Ministries and MPs in the country
with wide media coverage in the Hindustan Times, Times of
India, Dainik jagaran, Nav Bharat Times, AAj Tak, Zee News
and other media with live telecast on Times news.
The first technical session of the seminar was rightly planned
with the focus on Cyber Forensic Information Security, Risk
and Internal Auditing between 11.20 AM -1.00 PM. Eminent
panellists included, CMA Neeraj Arora, Computer Forensic
Expert & International Arbitrator, Mr. Hemant Seigell,
Director, Riskpro India, Mr. Eish Taneja, Professor and
Faculty, Fore School of Management, Mr. R C Meena,
honourable Joint Secretary, Ministry of Corporate Affairs,
Govt. of India, CMA Dr. I. Ashok, Central Council Member,
ICAI, CMA Ravi Kr. Sahni, Vice Chairman, NIRC of ICAI,
CMA Anil Sharma, Treasurer, NIRC of ICAI. The discussion
in this session revolved around the topic of Cyber forensic
information Security risk and auditing.
The second technical session of the seminar was aptly focused
on “Role of CMAs in Insurance and Banking” between 2.00
PM – 3.20 PM.
Eminent panellists included CMA
Padmanabham H, Central Council Member, ICAI, Dr. J D
Sharma, Director, Indian Overseas Bank, Dr. Narinder
Bhasin, Vice President, Axis Bank Ltd, Mr. Sidharth
Mukerjee, CEO MNC Advisory Services, Mr. G C Gulati,
Former AGM, Indian Overseas Bank, CMA Manas Kumar
Thakur, Vice President, ICAI, Mr. Sidharth Mukerjee, CEO
MNC Advisory Services.
The CEO/CFO conclave was organized between 4.00 PM 5.00 PM and was much enjoyed by the participants with the
open house discussion initiated by Hon'ble Member of
Parliament, Sh. Sukhbir Singh Jaunapuria. He discussed at
length about the important role CMAs can play in “Make in
India” initiatives of the current Government under he able
leadership of our honourable Prime Minister Sh. Narendra
Modi. His open talks and effective presentation on the subject
made the session memorable. He assure CMA fraternity of all
possible help and support for portraying the important role of
CMAs before the authorities and taking it forward to the
Government including our PM.
The discussion in this session revolved around the important
issues “Make in India: Zero Defect, Zero Effect, GST, Cost
My Dear Professional Colleagues,
Good Day
“You cannot believe in God, until you believe in yourself”Swami Vivekananda.
We feel very energetic, motivated and delighted to see a very
warm response, we have received from our respected
members, sponsors, bureaucrats, Ministers, Press and Media,
Corporate Professionals and all others who made the recently
concluded programme on contemporary theme “Make in
India- Role of CMAs” on 18th of December, 2015, at Vigyan
Bhavan, New Delhi, immensely successful and memorable.
With your continuous encouragement, support and
participation, your council could deliver a grand show with
the gracious presence of Hon'ble Minister of State Sh. Santosh
Gangwar ji, Hon'ble Members of Parliament Sh. P.P.
Choudhary ji, Smt Meenakshi Lekhi ji and Sh. Sukhbir Singh
Jaunapuria ji.
The programme was inaugurated by Chief Guest Sh. Santosh
Kumar Gangwar, Minister of State for Textiles, Parliamentary
Affairs, Water Resources, River Development and Ganga
Rejuvenation, in the gracious presence of CMA PV Bhattad,
President, CMA Manas Thakur Vice President of the Institute
of Cost Accountants of India (“ICAI”), CMA Sanjay Gupta,
Sri Ashok.B Nawal, H.Padmanabha, CCMs of ICAI, and
TEAM NIRC. Sh. Gangwar spoke at length about the
important role of CMAs in the Indian economy and invited the
Institute to prepare and submit a concept paper as to how the
services of CMA professionals can be availed by the
Government in fulfilling the aspirations of common man and
to realise the dream of present Government of fast economic
growth of the country with initiatives like “Make in India”. He
also focussed upon that he will ensure CMAs empanelment
with other Ministries and asked the Institute to submit
presentation.
Like way Smt Meenakshi Lekhi ji, Sh. Sukhbir Singh
Jaunapuria ji and P.P. Choudhary ji, MPs discussed in detail
about us and asked for presentation so that our different
demands to boost economy can be met with. Smt Hemamalani
ji, MP from Mathura, though could not participate in the
programme due to eleventh hour tight schedule but she had
promised to talk to different places in the Government for us
during meeting with her at Residence. In the process we
interacted with more than 80 Mps, MCA...etc and they
showed pleasure to know about CMAs.
NIRC NEWS - DEC. 15 - Jan. 2016
2
Message
Audit and sustainability”. Eminent panellists included, CMA
Pankaj Gupta, Vice Chancellor, Apee jay Satya University,
CMA Rajeev Mehrotra, CMD RITES, Mr. K. S. POPLI, CMD
IREDA, Dr. Bimal Arora, Chairman, Centre of Responsible
Business (CRB), CMA B. B. Goyal, Former additional Chief
Advisor(Cost), MCA Govt. of India, Mr. Vishwa Ranjan
Gupta, Director Finance, CWC, CMA R. C. Gupta, Executive
Director, GAIL, CMA Ashok B Nawal, Central Council
Member, ICAI, CMA Sanjay Gupta, Central Council
Member, ICAI.
The programme ended with Family Cultural Evening and
dinner wherein CMAs presented their Cultural Art. We are
pleased to thank the NHPC Ltd, NTPC Ltd, Gail India Ltd,
Rites Ltd, SAIL, Power Finance Corporation and other
corporate who sponsored the programme in full.
Your council also got the opportunity of visiting various
offices of Commissioners of Central Excise including Delhi,
Ghaziabad & Faridabad for conducing training sessions for
the officers of Central Excise and Service Tax in the month of
December. CMA Ravi Kr. Sahni, Vice Chairman NIRC and
CMA Navneet Jain, RCM had the opportunity of meeting Sh.
Satish Kr. Aggarwal, IRS, Commissioner of Central Excise,
Delhi-I and Sh. J. R. Panigrahi, Commissioner of Central
Excise, Ghaziabad recently. The department was apprised of
the important role and services of CMA professionals like use
of cost accounting records and audit reports by departmental
officers during audits, CAS-4 certificates under transfer
pricing issues, special audits conducted by cost accountants
under section 14A and 14AA of the Central Excise Act, desk
reviews /detailed scrutiny of assesses being delivered to the
department to protect the revenue and the future course of
mutual co-operation particularly in the GST regime, with the
department.
Your council is striving to promote the concept of 'train the
trainer' and solicit co-operation of the chapter offices and
members to support the 'cause' by greater interactions with
these revenue departments for greater co-operation, visibility
and mutual benefit. To realise this, we request you to come
forward and volunteer your name for conducting more such
one to one programmes with the offices of Central Excise,
Service Tax, Customs, VAT and Income Tax. We the TEAM
NIRC are always available to help and support this cause.
We also urge upon all the chapter offices to spread the name of
the profession by seeking appointment and conducting career
counselling programmes at local schools, colleges and other
educational institutions for which the power point
presentations have already been made available at all chapter
offices. The printed promotional material is also available
with the Institute which can be provided instantly on demand.
Such programmes would create the visibility and awareness
about the profession amongst the students to help them choose
CMA profession as an attractive career option.
We look forward to a greater role play in future in the GST and
other taxation regimes, for which suitable representations are
being made by our Central Council before the authorities. You
should be sure that we are everywhere in the GST. In the
meantime, we need to keep ourselves equipped and updated
for these new roles/ upcoming opportunities by regular
studies, training and updation. We are planning to start a series
of programmes on these contemporary issues under our yet to
be launched corporate membership and request members to
join and be benefitted. We appreciate the efforts of our Past
Chairman, CMA Rakesh Bhalla and Team Members of NIRC
on conducting regular sessions on that.
Till date you would be happy to see the performance of the
NIRC at different fronts. To add, the NIRC has already
resolved for shifting of Head office and Secretary to Delhi and
wide demand had been raised on this front with the request to
Higher authorities to announce it in the NCC 2016. Other
Regions had appreciated this move by the NIRC. We demand
to declare Lodhi Road office as Corporate and Registered
office with shifting of Directors to 6 storied Noida Building
which is lying idle since years. Needless to mention that the
same had been done by other Institute's since long back. The
momentum has gained a wide support of members and NIRC
is committed to get the object done by any means.
The Practical Refresher Classes for students and members at
four places in Delhi and at Chapters is going to start soon on
Costing, Central Excise, VAT, MCA filing, Income Tax,
Customs and for that we request you to get enrolled yourself
as faculty at different parts of the Region and Chapters by
sending mail to us. The NIRC shall pay suitable remuneration
for that. Please also come forward for career counselling
sessions at different schools and make students and school
management aware about us.
NIRC is planning to Organise Student's feast in the month of
February 2016 with award to meritorious students. In this, tips
for preparing for interview, Communication Skills, drafting
tact's, Computer expertise, Fields for Practice shall be dealt in
detail. We will announce it soon.
By the time this communication would be in your hands, the
bright New Year 2016 would have embarked upon its journey
to deliver to you and family new hopes, laurels, energies,
achievements, accomplishments and greater fortunes. We get
energy on your motivation so please guide always.
We wish the New Year 2016 brings an ocean of newer
opportunities and forces the world to realise and look
differently about our profession.
With warm regards,
Yours truly,
CMA S. K. Bhatt
Chairman
3
Council Members
Northern India Regional Council of ICAI 2015-2016
Chairman : CMA S.K. Bhatt
Vice Chairman : CMA Ravi Kumar Sahni
B. Com, FCMA
F-103, DAV Complex,
Opp. Samachar Apptt.
Mayur Vihar-1,
New Delhi - 110091
Mobile : +91-9971066266
E-mail : skbmica@gmail.com
B. Com (H), FCMA
C-40,
West Gorakh Park Extension,
New Delhi - 110 032
Mobile: +91 - 9810063419
E-mail : cmaravisahni@yahoo.co.in
cma.ravisahni@gmail.com
Secretary : CMA Sunil Singh
Treasurer : CMA Anil Sharma
B.Sc, FCMA
SSCO Tower
D-2/28, Vibhuti Khand
Gomti Nagar,
Lucknow - 226010
Mobile : 09936650900
E-mail : sscolko@gmail.com
B.Com(H), M.Com, FCMA
H. No. 232, Ist Floor,
Sector - 37A,
Chandigargh - 160036
Mobile : 9872073456
Email : anil_sharma01us@yahoo.com
Member : CMA Rajendra Singh Bhati
Member : CMA Arvind Kumar
Member : CMA Navneet Kr. Jain
B.Com(H), ACMA, ACA, PGDCMA
1st Floor, Plot No. 42,
Hari Om Tower,
Manji Ka Hata, Paota Jodhpur
Mobile : 09929912555
Email : rsbcost@gmail.com
B. Com. LLB, ACMA
Sr. Manager (F&A)
IFFCO Limited,
P. O. IFFCO Township,
Distt. Bareilly (U.P.),
Mobile : +91-9956391342
R) 0135-2727076
E-mail : kumararvind@iffco.in
(M.COM, LLB, MBA, FCMA)
2-D, OCS Apartments,
Mayur Vihar Ph-I
Delhi - 110091
Mobile : 9810175020
Email : navneetic@yahoo.com
CMA Sanjay Gupta
CMA BALWINDER SINGH
CMA. Vijender Sharma
B. Com(H), MBA, FCMA
C-4/E-135, Janak Puri,
Delhi - 110058
Off: O11-25547949
Mobile: +91-9810041074
E-mail : sanjay@sgaindia.in
(B.com, FCMA, FCA)
F-125, Phase - 8 B,
Industrial Area,
Sector-74,
Mohali - 160071
Chandigarh
B. Com (H), FCMA, LLB, MBA
11, 3rd F1oor, Hargovind Enclave,
Vikas Marg, Delhi - 110092
(O) O11-22377844
(R) O11-22831489
Mobile: +91-9810166877
E-mail : vijender.sharma@vsa.net.in
4
Message
From the Desk of Secretary . . .
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Dear Professional Colleagues,
My heartiest wishes to you all a Very Happy Christmas
Day & New Year 2016. I always pray to the almighty to
give me the strength to shoulder the onerous
responsibilities.
Recently while speaking at the 70th anniversary of the
United Nations Day the Prime Minister of India has
highlighted: The ideals and path shown by Gandhi Ji are
extremely relevant today. Before the world takes its
lesson from Gandhiji's ideas and ideals, each and every
Indian needs to learn from them. Let us be brave and
follow the relevant path to be brave in a true sense.
Bravery is not just the act of daring to act, but also to
take the responsibility of consequences of that action.
According to Mahatma Gandhi, bravery is a quality of
the soul and not of our body.
Over the years of our existence we have developed very
strong curriculum, long experience, well established
foundation, tremendous response from the industry
and business, popularity in student fraternity etc but
even after these accomplishments we feel that
somewhere something is missing. In general we still
have scope to expand our reach new heights of
professional performance. In the field of employment
there are vast opportunities and in a number of cases
leading industrial house are headed by our members
but on other it is imperative upon all of us to develop
synergy in the field of establishing professional practice
where still we are searching for more opportunities. We
all have to jointly take a resolve to create more
opportunities in the field of practice so that more
avenues are available to our professional colleagues
who want to enter in the field of practice.
A Program on Role of CMAs – “Make in India” had
been organized by NIRC on 18.12.2015 at Vigyan
Bhawan, New Delhi. Mr. Santosh Kumar Gangwar
Member of Parliament, Minister of State for Ministry of
Textiles and also minister of state for Parliamentary
affairs, water resources, River Development and Ganga
rejuvenation had inaugurated the program. Mr. P P
Chaudhry, Member of Parliament and Chairman of the
Joint Parliamentary Committee, Mrs. Meenakshi Lekhi
Member of Parliament & Mr. Sukhbeer Singh Jaunpuria
Member of Parliament joined the program as a
chairperson alongwith Many Reputed Company's CMDs,
CFOs, Director Finance and Our CMA Members. The
success of this program will spread a positive vibrant
across the whole country and we are feeling very proud.
Friends we know that our profession have a lot of
limitation, duties and rights but without proper
cooperation and coordination with Politician and
bureaucrats nothing is possible. Because we all are
three main pillars of an economy and bound each other
with a chain. The Bureaucrats are making the Rules
followed by Our Politicians approval to apply them and
then our role to apply these rule has come. So proper
coordination and cooperation is most important so that
all the three pillars balance each other.
th
A Proud movement was also felt on 10 December, 2015
while our CMA Member CMA Anuradha Kumar was
awarded by Great honour by a memento and a cheque
of Rs. 10 Lacs by the Prime Minister of India Shri
Narendra Modi Ji. CMA Anuradha Kumar Ji Campaigned
and put in light the “Wastage of Food Management”
across the country and making a Real Definition of Cost
& Mangement Accountant before Us. We really very
proud after getting the honour and prize by CMA
Anuradha Kumar from our Prime Minister.
A Program on “Internal Audit by CMAs- A real
Value Addition to Business” had been conducted on
22.11.2015 in which CMA Sushil Yadav had joined the
program as chief speaker.
I extend my warm regards and wishes to all the
members.
CMA Sunil Singh
Secretary NIRC
5
NIRC-ACTIVITIES
views and valuable suggestions for improving quality
at regular coaching classes and students' strength.
Large number of faculty members attended the meet.
Internal Audit By CMAs- A real Value
Addition to Business on 22.11.2015.
N
IRC OF ICAI organised a seminar on Internal
Audit by CMAs- A real Value Addition to Business.
CMA S. K. Bhatt, Chairman, NIRC welcomed audience
and keynote speaker. CMA Sushil Yadav, keynote
speaker, Sr. Dy. GM (RITES Ltd.) shared his valuable
Inauguration of Newly Renovated
Committee Room on 21.11.2015
Newly renovated NIRC committee room was
inaugurated on 21.11.2015. by CMA Gobind Ram
Kejriwal (Father of Shri Arvind Kejriwal, CM, Delhi)
alongwith CMA P.V. Bhattad, President, ICAI by
cutting the ribbon.
and experience and the knowledge on the above
theme. It was a very interactive sessions. CMA Sunil
Singh, Secretary, NIRC also grace the programme. At
the end vote of thanks was given by CMA Ravi Kumar
Sahni, Vice Chairman NIRC. The programme was
appreciated by all the members present.
JAIPUR CHAPTER
Faculty Meet on 21.11.2015
CAREER AWARENESS &
COUNSELLING PROGRAMS
NIRC OF ICAI organised “Faculty Meet” on
21.11.2015 at CMA Bhawan, New Delhi. CMA S. K.
Bhatt, Chairman, CMA Ravi Kr. Sahni, Vice Chairman,
J
aipur Chapter conducted career counseling
programs at Kanodia Girls College, Jaipur on 28th
November 2015 and also at R. L. Saharia Govt. P. G.
CMA Anil Sharma, Treasurer, CMA Rajendra Singh
Bhati, RCM and CMA Navneet Kr. Jain, RCM, NIRC
welcomed faculties. In the meet, faculties gave their
6
Activity
College, Kaladera, Jaipur on 30th November, 2015. In
both the colleges, students of 1st, 2nd and 3rd year
of B.Com, BA & BBA were present. CMA P.D. Agrawal,
Director - Coaching explained to the students about
CMA course including career prospects. Thereafter,
audio visual presentation was given followed by
career counseling by Ms. Neha Rani, Academic
Coordinator (CAT). Vice-Principal & Commerce
Faculties of both the above colleges gave full support
and they also addressed the students and persuaded
them to join the CMA course for their bright future.
from 20th Sept. to 4th Oct., 2015. This has final
qualified students helped a lot in facing campus
interviews and as a result good number of students
have been selected.
In the campus placement organized by our Institute
at New Delhi, Mumbai, Chennai and Kolkata,
following students have been selected from Jaipur.
LUCKNOW CHAPTER
ACTIVITY
CAMPUS PLACEMENT SELECTIONS
For June 2015 Final qualified students, Pre-placement
Training Program was conducted at Jaipur Chapter
Sl.
No.
Name of
the student
Name of
the Company
1.
Siddhant Tholia
Tata Motors
2.
Sapna Behl
Tata Motors
3.
Vinit Bohra
RSM
4.
Harsh Jain
Wipro
5.
Sameeksha Kochar
Vedanta
6.
Payal Mittal
Vedanta
7.
Atika Singhal
Vedanta
8.
Aman Parihar
Vedanta
Seminar on Success Pillars of TenderEvaluation, Benchmarking & Negotiation at
Lucknow Chapter on 07-11-2015
A Seminar was organized by Lucknow chapter of the
Institute of Cost Accountants of India on 07-11-2015
at CMA Bhawan, Gomti Nagar, Lucknow on the topic
“Success Pillars of Tender- Evaluation, Benchmarking
& Negotiation”. The Seminar was inaugurated by
lighting of lamp in presence of CMA N.K.Maurya
(Zonal Manager, R.E.C.), CMA Varinder Kumar (Dy.
General Manager Finance H. A. L. Lucknow), CMA
V.K. Prabhakar (Finance Advisor and Company
Secretary, UPRNN Lucknow), CMA K. L. Prabhakar
(Founder Member of Lucknow Chapter) and
(Chairperson) of
Lucknow Chapter CMA Anjana
Chadha, (Vice Chairman) CMA Pawan Tiwari,
(Secretary) CMA Dharmendra Singh Saluja, (Joint
Secretary) CMA Neha Sharma and (Treasurer) CMA
Amit Yadav of Lucknow Chapter.
CMA Anjana Chadha welcomed and wished all the
guests, speakers and other members for the Seminar
and Diwali Pooja. She also informed the key features
of the topic of Seminar.
Chief speaker and expert of tendering process Smt.
Ruchi Agarwal, Chief Manager, Integrated Material
Manager, H.A.L. Lucknow shared her views on the
Role of Cost Accountant in Base of success of TenderAssessment & Negotiation and informed the benefits
and importance of this in Indian Economy and
Industries. She commented on the tender process
and gave suggestions for its simplification.
CMA Varinder Kumar (Dy. General Manager (Finance)
H.A.L. Lucknow) gave his views on the topics of
7
Activity
Kalagaon about 15 km from the city Lucknow. The
Chairperson of Lucknow Chapter CMA Anjana Chadha,
Vice Chairman CMA Pawan Tiwari, Secretary CMA
Dharmendra Singh Saluja, Jt. Secretary CMA Neha
Sharma and Treasurer CMA Amit Yadav and about 70
members with their families were present on the
occasion, all the members introduce their family with
each other and participated in various games viz
Tambola, Badminton, Race, Cricket, Musical chair ets
and won prizes also.
filling the tender form, process of Tendering and
Negotiation. CMA V. K. Prabhakar (Financial Advisor
and Company Secretary, UPRNN) shared his
experiences with all and spoke about role of finance
in tender process.
At the end of the seminar, CMA Pawan Kumar Tiwary
(Vice Chairman) of Lucknow Chapter gave vote of
thanks to all the Members and dignitaries. He also
expressed his view that the topic of Seminar is very
helpful for the members. CMA Ranjeet Singh, CMA
Sujeet Sharma, CMA Shakambari Tiwari, CMA Ankur
Verma and about 70 Members of Lucknow Chapter
were present in Seminar.
After the seminar, Diwali Pooja was performed office
at the Chapter by all the members present.
CMA Anuradha Gupta was presented a momento and
bouquet by NIRC Secretary CMA Sunil Singh
accompanied by the Chairperson CMA Anjana Chadha,
Vice Chairman CMA Pawan Tiwari, Secretary CMA
Dharmendra Singh Saluja, Jt. Secretary CMA Neha
Sharma and Treasurer CMA Amit Yadav, Past
Chairperson CMA Seema Singh, Past Chairman
O.P.Saxena, Executive member CMA Hemendra Soni,
and others for receiving a award by Honorable Prime
minister Mr. Narendra Modi on 10th Dec' 15 for her
initiative taken to control food wastage. All CMA
members present congratulated her for her efforts.
After this all members enjoyed the lunch in proper
village style in Awadhi taste. A puppet show and
Rajasthan folk song program was also arranged for the
members. Plenty of other activities like pottery, horse
riding, bullock cart ride etc were also organized at
Kalagaon.
At the end CMA Anjana Chadha Chairperson gave
thanks to all members present for joining the family
dayout. Members appreciated the family dayout
arranged by Lucknow Chapter. CMA R. K. Singh, CMA
“Family Dayout” at Lucknow Chapter on
th
25 Dec-2015
ICAI-Lucknow Chapter organized a Family dayout for
CMA members and their families on 25.12.2015 on the
occasion of Merry Christmas and New Year 2016 at
8
Activity
elaborated the vision of Hon'able Prime Minister of
India, Zero defect and Zero effect. The existing
problems of global warming and ecological
imbalances have occured due to insensitive economic
development and industrialization. The concept of
“Make in India” will pay due attention on environment
and industrialization will be done on basis of nill
adverse effect on environment, for sustainable
development of India. He also replied the questions
raised by the curious participants. CMA Rashid
Mustafa presented his views on GST and Role of Cost
of GST in speedy development of GDP of our country.
B.M. Jindal, CMA S.K. Mehra, CMA S.K. Singh, CMA
Manoj Mishra, CMA S.K. Saxena, CMA R S Yadav, CMA
Jay Singh, CMA Ranjeet Singh, CMA Ankur Verma, CMA
Veena Katiyar, CMA Shakambri, CMA Abhishek Mishra,
CMA S.P. Gupta, CMA Shad Khan, CMA Narandra Kumar
Bhatt, CMA Mitanshu Gupta and many other member
were present with their families.
All members enjoyed and made this family dayout a
memorable one.
He also emphatically presented and elaborated the
Role, Cost & Management Accountants can play in
success of GST.
GORAKHPUR CHAPTER
ACTIVITY
Seminar on “MAKE IN INDIA” and GST
G
orakhpur Chapter of Cost Accountants held a half
day seminar on “MAKE IN INDIA” and GST on
dated 13/12/2015. Shri S. S. Pandey, Chairman of the
chapter welcomed the participants after lighting the
lamp. In his inaugural address he highlighted the
importance of “Make in India” coined by Hon'able
Prime Minister of India, Shri Narendra Modi and
importance of GST for speedy economic development
of India, as per the vision of our Prime Minister. After
tea break, Mr. S. S. Pandey presented his views on
“Make in India” through impressive power point
presentation. He quoted the vision of ancient Rishis
of India, from Ishovasopupnishad and emphacized
that development of economy must be done without
adverse effects on nature and environment. He
At the end of seminar CMA H. N. Pandey gave vote of
thanks to participants. The seminar was attended by
Cost & Management Accountants, other professionals,
Students and some of the leaders of business and
they appreciated the effective and lucid presentation.
9
Activity
UDAIPUR CHAPTER
ACTIVITY
CAREER COUNSELLING PROGRAMME
U
daipur Chapter has conducted Career counselling
programs at the followings colleges and school in
the Month of Oct. to Dec. 2015 to create awareness of
the CMA Profession to the Students.
and persuaded the students to join the CMA course
for successful career.
PATIALA CHAPTER
ACTIVITY
P
atiala Chapter of Cost Accountants Organised a get
together for the members for celebrating New Year
and Lohri Festival. On this Occasion, CMA U. K. Panda
Director Finance & Commercial, PSTCL along with CMA
1. Aeshewarya college of Management studies,
Udaipur
2. Alok Sr. Secondary school, Fatehpura Udaipur
3. Guru Nanak Girls Sr. Secondary School, sector 4
Udaipur
4. Maharana Mewar Public School. City palace Udaipur
Approx 60 to 100 Students of each School and
College were attended the Carrier Counselling
Programme organised by the Udaipur Chapter. CMA
Dinesh Dargar, Chairman of Udaipur Chapter
explained the details of the CMA course and Career
prospects. Thereafter audio video presentation was
given by CMA N. K. Soni executive Member of the
Udaipur Chapter. Principal and Lecturers of the
Colleges and Schools assured to gave full support
S. C. Arora Director Finance PSPCL were presented as
chief guest. Secretary Patiala Chapter of Cost
Accountants Welcomed the chief guests and all
presented members.
The Presented Chief Guests along with other Founder
Members of Chapter Wished all the members a happy
new year to all.
Chairman Patiala Chapter Informed that the chapter is
going to celebrate this year as SILVER JUBLIEE year.
Members deliberated various issues for the same and it
was decided to hold a Seminar in the month of March /
April to mark this Occasion.
10
Programme Update
Programme at Vigyan Bhawan
on 18th December 2015
Inaugural Session:
NIRC CMA Sunil Kumar Singh. The Secretary spoke at
length
about the efforts being put in by members, for
Northern India Regional Council of ICAI organised a
a
continuous
improvement of the profession of CMAs
one day seminar on contemporary theme : Make in
and contribution of CMAs to the cause of the country
India - Role of CMA;s" so support the vision of our
at
large.
Honourable prime Minister Shri Narender Modi, at
Vigyan Bhawan, New Delhi on 18.12.2015. The
Technical Session I:
programme was inaugurated at 9.30 a.m. by Hon'able
The theme address was delivered by CMA Ravi Kr.
Chief guest, Shri Santosh Kumar Gangwar; by lighting
Sahni. Shri Sahni spoke at length about the role,
of a lamp at Vigyan Bhawan. New Delhi Chairman
CMAs can play in Cyber Forensic information Security,
NIRC of ICAI CMA SK Bhatt delivered the welcome
risk & auditing. The technical speakers for the session
address before august gathering.
were, CMA Neeraj Aarora,
The chairman in his address,
computer Forensic Expert &
The chief guest during
while welcoming the guests,
International Arbitrator, Shri Eish
thanked the Chief Guest, for
his address stated that he
Taneja, Professor & Faculty, Fore
attending the programme in
would back the profession of School of Management, Shri
spite of having a very busy
Hemant Seigell, Director Riskpro
schedule, as parliament session CMAs to the hilt, for any effort
India and Shri R. C. Meena, Joint
was on.
Secretary,
MCA. All the speakers
made by the Institute for
Northern India Regional Council
dealt with the subject at length;
of ICAI organised a one day growth & development of the which was very informative &
seminar
on
contemporary
Indian economy.
educative.
theme: Make in India - Role of
The Chairman of the session was
CMA;s" so support the vision of
CMA Dr. I. Ashok and the
our Honourable prime Minister Shri Narender Modi, at
summing up of the session was done by CMA Anil
Vigyan Bhawan, New Delhi on 18.12.2015. Theme
Sharma, Treasurer, NIRC.
address was delivered by CMA Sanjay Gupta. The
Technical Session II:
audience was also addressed by Chairman, BW
Business world & exchange 4 media Group, by
The theme address for the session on, Insurance and
president of ICAI CMA P. V. Bhattad and Hon. Member
Banking in “make in India” was made by CMA
of parliament Shri PP Choudhary.
Padmanabhan H, Central Council Member, ICAI.
The audience was spell bound when they were
Technical speakers for the session were Dr. J. D.
addressed by the chief guest Hon. Shri Santosh
Sharma, Director, Indian Overseas Bank, Dr. Narinder
Kumar Gangwar ji, MoS Textiles, Parliamentary
K. Bhasin, Vice President, Axis Bank, Mr. Siddharth
Affairs, Water Resources and River Development &
Mukherjee, CEO, MNC Advisory Services, Mr. G.C.
Ganga Rejuvenation. The chief guest during his
Gulati, former AGM, Indian Overseas Bank.
address stated that he would back the profession of
Chairman of the session was CMA Manas Thakur, Vice
CMAs to the hilt, for any effort made by the Institute
President, ICAI. The session was summed up by CMA
for growth & development of the Indian economy.
Rajender Singh Bhati, with a note of appreciation for
The vote of thanks was delivered by the Secretary,
the speakers.
11
Programme Update
Motivational Series:
Dr. Meraj Husain was the sole speaker for the
motivational session. He shared noble thoughts
motivating the participants.
CEO/CFO Conclave:
Eminent professionals in CEO/CFO conclave
discussed, Zero defect, zero effect, GST, Cost Audit &
sustainability in light of Make in India. CMA Pankaj
Gupta, Vice Chancellor, Apeejay Stya University was
the moderator and the eminent panelists including
CMA Rajeev Mehrotra, CMD, Rites Ltd., Dr Bimal
Arora, Chairman, Centre for Responsible Business
(CRB), CMA B.B. Goyal, Former Advisor Cost, MCA,
Mr. Vishwa Ranjan Gupta, Director Finance, CWC,
CMA R. C. Gupta, Executive Director, GAIL and CMA
Ashok B. Nawal, Central Council Member, ICAI.
The programme was summed up by CMA Sanjay
Gupta.
at rejunevating and relaxing professionals was
organized at Delton Hall. The Cultural evening was
celebrated in a big way by the members and their
families. A band entertained the audience which was
accompanied by dance & music. The gathering at
Delton Hall was served with snacks at the spot and
dinner was served at the adjoining NIRC compound.
The programme at Vigyan Bhawan & Delton Hall was
widely appreciated by the members & Delegates.
Cultural Evening at Delton Hall:
After the brain storming intellectual and technical
sessions at Vigyan Bhawan; a cultural evening aimed
C
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I
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M
A
E
T
families
nd
a
s
r
e
b
m
e
m
Wishes all happy, joyful,
a very
g
n
i
l
l
i
f
l
u
f
d
n
eventful, a
6
1
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2
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New Ye
12
NIRC of ICAI Activities at a Glance
Hon'ble Minister of State, Shri Santosh Gangwar, with TEAM NIRC
inaugurating the progorammes at Vigyan Bhawan, New Delhi.
Hon'ble president ICAI, CMA P.V. Bhattad welcoming hon'ble MOS
Shri Santosh Gangwar with bouquet of flowers.
CMA, S. K. Bhatt, Chairman, NIRC welcoming CMA P. V. Bhattad,
Hon'ble President, ICAI
CMA Sanjay Gupta, CCM, welcoming hon'ble Member of Parliament
Ms. Meenaskhi Lekhi with bouquet of flowers.
CMA S.K. Bhatt, Chairman, NIRC addressing the audience at Vigyan
Bhawan.
CMA Ravi Kr. Sahni, Vice Chairman NIRC addressing the audience at
Vigyan Bhawan
13
Glimpses from Cultural Evening
at Delton Hall
14
Article
GEARING UP FOR GOODS AND
SERVICES TAX-Vol I
(DRAFT LAW- AT A GLANCE)
“IMPACT AND IMPLICATIONS”
The article (Vol I) broadly covers the various specific provisions related to working and
operation of Goods and Services Tax vis-à-vis the statutory requirements of Model
Draft law released by Govt w.r.t. concept of Txable event under GST i.e. Supply of
goods and services.
The article also brings out the clarity on the various issues addressed in the reports of
registration and refund released by the Govt.
As a part of Vol II, other provisions and pending reports will be summarised and issues
will be addressed as contemplated in the reports of payment and return issued by
Govt.)
Disclaimer- The summary mentioned below has been compiled on the basis of the draft law
available on various websites such as www.gstindia.com etc.
Rubneet Kaur
Chartered Accountant
B.Com, M.Com, MBA
Assistant Manager-Finance
SML Isuzu Ltd.
rubneet@gmail.com
CMA RakeshBhalla
Past chairman NIRC of ICAI
Member ZAC Chandigarh, Service Tax, Govt. of India
Member RAC Chandigarh, Central Excise & Customs
General Manager Finance- SML Isuzu Ltd.
nancybhalla@yahoo.com
Goods and Service Tax-A dual tax system,
proposed in the report submitted by the Joint Working
Group of the Empowered Committee of the State
Finance Ministers in November 2007, was to be
implemented in April 2010, one for the Centre and other
for the states replacing the state VAT and Cenvat.
However the final decision on the time of its
implementation is still pending as it is hanging between
the ruling and opposition party due to certain undecided
terms and conditions.
GST is a value added tax to be levied on both goods and
services, except the exempted goods and services. The
tax will be levied on the value of the product or service
supplied. The taxes levied at the multiple stages such as
CENVAT, Central sales tax, State Sales Tax, Octroietc will
be replaced by GST to be introduced at Central and
State level.
Why GST- How GST will be better than existing
tax structure
The single comprehensive tax is expected to give
15
Article
following advantages over and above the existing tax
structure-
10. Recovery of tax not paid or short paid or
erroneously refunded
ü Dual model GST under federal structure i.e. CGST &
SGST,
11. Interest on delayed payment of tax
ü Elimination of cascading effects of the taxes,
12. Refund of tax and interest on delayed refund
ü CGST & SGST to be charged on same price,
13. Registration-amendment,
revocation
ü Set-off relief fully captured,
cancellation,
14. Accounts and records –tax invoice, credit and
debit notes, other records including period of
retention
ü Destination based tax structure,
ü Free movement of goods & service through out the
country,
15. Furnishing details of inward and outward
supplies
ü Applicable to all transactions of Goods & Services
with some exceptions,
16. Payment of taxes, penalty, interest and other
amounts.
ü Input tax credit (ITC) for the CGST/SGST and could
be utilized for payment of CGST/SGST, but cross
utilization not allowed, except IGST
17. Offences and penalties.
ü Inter State GST (IGST)–new model for Interstate
transactions
1. GST applicable on 'supply of goods and
services’
ü It will also improve the International cost
competitiveness of native Goods and Services.
Section 3- Meaning and Scope of Supply
• Supply includes supply of goods and services
• Includes all forms of supplies
Government Has Released Model Draft of
Proposed GST Act, 2016 and the 130 page report
has been divided into 14 parts, 81 sections, 3
schedules and GST Valuation (Determination of
the value of Supply of Goods and Services) Rules
2016. The issues covered in the report broadly
covers the following
-
1. Definition of 77 terms
2. Meaning and scope of supply of goods and
services
3. Classes and powers of officers under the act
4. Time of supply of goods and services
sale
Transfer
Made or
Barter
Exchange
License
Agreed to
Rental
be made
Lease
Disposal
Importation of services
For a consideration by
a person in the course
or furtherance of
business
Matters to be treated as supply even without
consideration- Schedule 1
5. Identifying the nature of Supply- interstate or
intrastate
1. Permanent transfer/ disposal of business assets
6. Place of supply of goods and services
7. Value of taxable supply
2. Temporary application of business assets to a
private or non business use
8. Manner of taking input tax credit and utilisation
thereof
3. Services put to a private or non business use
4. Self supply of goods and or services
9. Remission of tax on supplies found deficient in
quantity
5. Assets retained after deregistration
16
Article
Explanation to Schedule II
Supply of Goods
Supply of Services
1. Transfer of title of goods
1. Transfer of goods / transfer of rights in goods/
undivided share of goods without transferring
title of goods.
2. Transfer of title of goods under an agreement
of transferring property in goods at a future
date
2. Lease, tenancy, easement, license to occupy
land
3. Transfer of Business Assets with or without any
consideration
- Which are no longer required
By/ under directions of the person carrying
on business
3. Lease or letting out of the buildingcommercial, industrial, residential for
business/ commerce wholly or partly
4. Treatment/ process applied to another
person's goods
4. Transfer of goods included in business assets Sold by other person who has the power to do
- To recover any debt
- Owed by taxable person
5. Goods held or used for the purposes of
business
- Put to any private use
- Made available to any person for use
- For any purpose other than the business
purpose
- With or without any consideration
2. GST payable as per time of supply
The liability to pay CGST / SGST will arise at the time
of supply as determined in the following provisions
prescribed separately for Goods and Servoces.
Successive statement of
accounts and payments
involved
Date of expiry of period
to which it relates
Sec 11- Time of Supply of Goods
1. On the basis of the Movement of Goods
Goods required to be moved
Date on which the
goods are removed by
the supplier for supply
to the buyer
Goods not required to be
moved
Date on which goods
are made available to
the buyer.
Successive statement of
accounts and payments not
involved
Date of issue of invoice
or
Date of receipt of
payment whichever is
earlier
4. When goods are sent or taken on approval or sale or
return or similar terms
In this goods are removed before it is known
whether the supply will take place
- Time when it is known that supply has taken
place or
- 12 months from the date of removal
Whichever is earlier
2. On the basis of transactions- either of the following
a. Date of issue of invoice by supplier
b. Date of receipt of payment by supplier
c. Date of receipt of goods entered into books of
accounts of buyer.
5. In any other case
Periodical return has to be
filed
Date on which such
return has to be filed
3. On the basis of continuous supply of goods
17
Periodical return no to be
filed
Date of payment of
CGST/ SGST
Article
3. In other situations
Sec 12- Time of Supply of Services
1. On the basis of issue of Invoice
Invoice issued within
the prescribed period
Date of issue of
invoice or date of
receipt of payment
whichever is earlier
- the payment is linked to When the event gets
the completion of an event completed
Invoice not issued within the
prescribed period
Date of completion of
provision of service or
the date of payment
- if tax is paid on reverse Earliest ofcharge basis
Date of receipt of
services
Date of payment
Date of receipt of
invoice
Date of debit in books
of accounts
In other case
Date on which the
recipient shows the
receipt of service in his
books of accounts
S u p p l y c e a s e s b e f o r e At the time of cessation
completion of service
2. On the basis of continuous supply of services
If the due date is
ascertainable
Date of liability of payment
to service provider
If the due date is not
ascertainable
Date of receipt of payment
or issue of an invoice
4. In any other case
Periodical return has to be
filed
Date on which such
return has to be filed
Periodical return no to be
filed
Date of payment of
CGST/ SGST
(Sec 13 explains the various situations when there is a change in rate of tax in
respect of supply of services)
3. Determining Place of Supply
Typically for 'goods' the place of supply would be location where the good are delivered. Whereas for 'services'
the place of supply would be location of recipient.
Sec 15- Place of supply of Goods
Distance supply+ Movement of goods
Place of delivery of goods
No movement of goods
Place of delivery of goods(handed over to receiver)
Assembly/ installation of goods at site
Place of such installation/ assembly
Supplied on board/ conveyance/ vessel
Such place
Other cases
As recommended by Govt
18
Article
Sec 16- Place of Supply of Services
Immovable property
Provided to registered person
Location of Service
recipient
Restaurant and catering service
Artistic/ sporting/scientific/
educational/ Entertainment
Transportation of goods
Passenger transportation service
Board a conveyance/ vessel etc
Telecommunication service
Banking/ other financial service
Insurance services
Advertisement services
Not provided to registered
person
Location of Service
provider
4. Valuation of Taxable Supply
• GST would be payable on the 'transaction value'.
• Transaction value is the price actually paid or payable for the said supply of goods and/or services between
un-related parties.
• The transaction value is also said to include all expenses in relation to sale such as packing, commission etc.
• Even subsidies linked to supply will be includable.
• As regards discounts/ incentives, it will form part of 'transaction value' if it is allowed after supply is effected.
• However, discounts/ incentives given before or at the time of supply will be permissible as deduction from
transaction value.
Apart from this, GST Valuation (Determination of the value of Supply of Goods and Services)
Rules 2016 have also been provided in the draft law.
5. Sec 18- Input tax credit in GST- Manner of taking credit and utilisation thereof
• Disallows CENVAT Credit on various services such as motor vehicle related services, catering services,
employee insurance, construction of civil structure etc.
• Restrict input tax credit in respect of construction, motor vehicle etc.
• Further, credit is proposed to be denied on goods and/or services used for private or personal consumption,
to the extent they are so consumed.
Utilisation of Input Tax Credit
1. IGST
IGST
Then balance towards CGST and SGST
2. CGST
CGST
Then balance towards IGST
3. SGST
SGST
Then balance towards IGST
19
Article
Denial of Cross Utilisation of Input Tax Credit
CGST
SGST
6. An additional tax upto 1% will be levied by Centre on inter-State supply of goods (and not on
services) made for consideration.
• Inter-State branch transfers will not attract this 1% additional Tax.
• Additional tax will be assigned to States from where the supply of goods originates.
• Will be applicable for a period of two years and could be extended further by GST Council.
• The credit of this additional levy will not be available as thus it will be a cost in the supply chain.
7. 33 GST laws in India
• One CGST law
• and 31 SGST law for each of the States including two Union Territories
• and one IGST law governing inter-State supplies of goods and services.
8. Time limit for show cause notices (SCN)
• Time limit for issuance of SCN in generic cases (i.e. other than fraud, suppression etc) would be three years
• and in fraud, suppression etc cases it would be five years.
(the time limit prescribed for issuance of SCN for generic cases is much more than the current time limit
prescribe in excise law (i.e. 12 months) and service tax legislation (i.e. 18 months).
9. Rate of GST is not yet specified in the draft GST law
The rate of GST is not specified in draft GST law. However, various News reports suggest that the Revenue
Neutral Rate (RNR) as proposed by the Chief Economic Advisor Shri. Arvind Subramanian could be 17%-18%.
Further, there could be lower rate (of 12%-14%) for concessional goods and higher rate (upto 40%) for luxury
goods (such as luxury cars, tobacco products etc).
Highlights of the Executive Summary of the Report submitted by Committee headed by the Chief
Economic Adviser Dr. Arvind Subramanian on Possible Tax rates under GST
1. The term revenue neutral rate (RNR) will refer to that single rate, which preserves revenue at desired
(current) levels
2. The RNR should be distinguished from the “standard” rate defined as that rate in a GST regime which is
applied to all goods and services whose taxation is not explicitly specified.
3. On the RNR, the Committee's view is that the range should between 15 percent and 15.5 percent (Centre
and states combined)
4. The Committee would recommend that lower rates be kept around 12 per cent (Centre plus states) with
standard rates varying between 17 and 18 per cent.
5. Demerit rates-other than for alcohol and petroleum (for the states) and tobacco and petroleum (for the
Centre)-will have to be provided for within the structure of the GST.
6. The Committee recommends that this sin/demerit rate be fixed at about 40 percent (Centre plus states) and
apply to luxury cars, aerated beverages, paan masala, and tobacco and tobacco products (for the states).
7. If policy objectives have to be met, instruments other than tax exemptions such as direct transfers could be
deployed
8. Eliminating all taxes on inter-state trade (including the 1 percent additional duty) and replacing them by one
GST will be critical to achieving the objective of Make in India
9. The proposed structure of tax rates will have minimal inflationary consequences.
20
Article
10. Bringing alcohol and real estate within the scope of the GST would further the government's objectives of
improving governance and reducing black money generation without compromising on states' fiscal
autonomy.
11. Bringing electricity and petroleum within the scope of the GST could make Indian manufacturing more
competitive
12. Eliminating the exemptions on health and education would make tax policy more consistent with social
policy objectives
Challenges ahead
Majority of the parties and co-operation from state government are the biggest challenges in front of the present
Govt for implementing the GST as the proposed legislation needs to be passed by a two-third's majority in both
houses of parliament and ratified by more than half of the state assemblies.
Other challenges
- Inclusion of tax rate in the Constitution of India.
- The differences in the structure of the economy and sales tax revenue
- Central Government's refusal to compensate the states for the loss of revenue arising from reduction in the rate
of CST.
- Reluctancy of states to bring certain taxes(such as tax on motor spirit and high speed diesel oil etc) under the
ambit of GST.
- Revenue neutral rates of GST at central and state level both.
- Consensus on the exemption list of goods and services considering revenue neutrality and consumer benefit as
well.
- Treatment of taxes on services with inter state coverage (such as services related to transportation of
passengers or goods in railways or telecom etc.)
- Harmonisation of administrative processes with uniform systems, forms and procedures.
“Hope sustains life”
However we should not forget that India has always proved her as a golden region for investments and with
economic reforms gaining momentum, prospects for growth and sustainable development in the long term remains
bright. For fulfilling the agenda set for reforms, India needs to continue making progress on its domestic front and
subsequently encourage investments.
(the figures/ data presented in the article have been taken from the information available on the respective websites of the bodies, the statements
given if any, have been produced as given in the press. the extracts of the reports have been taken from the original reports of the empowered
committee and the summary of CEA report is totally based on the provisions of the report given by Chief Economic Adviser of India)
21
Article
TRANSPARENCY IN PUBLIC
PROCUREMENT
Transparency in the public procurement is considered
as one of the most effective deterrents to corruption. It
is a precondition for ensuring accountability
procurement. Basic aim of the transparency in public
procurement is allowing possible to access to
information that would enable bidders to participate
more consciously in procurement process. It further
enable them to examine the powers of the authority in
public procurement activities as per guideline.
2. Preparation of bidding document.
The effective and efficient transparent procurement
process requires setting up proper transparent
standard bidding instrument/ document (tender
document). A standard Bidding Document should
be guide to bidders. For maintaining and building
the confidence, the effort has to be made for
enhancing the awareness and transparency in
procurement activities by way of establishing a
website, hosting the complete document and
transactions. Transactions should involve
transparency in procurement opportunities,
evaluations and award procedures. Such publicity
requires the provision of all necessary information
that would enable eligible bidder to take informed
decisions for the submission of their bids. The
notices should present complete details regarding
the procurement method, specifications,
recommended time frame for bid submission,
closing date & time, opening date & time, tender
fees, bid security required to be paid along with the
details to be furnished in support of tender.
Document should have a clear provision for
determination of the lowest/most advantageous
bidder. Non negotiable price should be solicited be
logical and transparent with respect to requirement.
The objective of transparency in public
procurement requires:• Fair and equitable treatment to the bidders.
• Promoting genuine competition.
• Enhancing efficiency and economy in procurement
process.
• Safeguarding the integrity of procurement entities.
Therefore, it is necessary to ensure the highest
standards of transparency, accountability and
probity in procurement process and to enhance the
confidence in procurement.
Steps for transparency in public procurement
process are as under:1. Requirement analysis.
In each case of procurement the procuring entity
should first determine the need of the procurement
by taking into account of the estimated cost of the
procurement and deciding the following:• Scope, period and quantity of procurement.
• Method of procurement to be following.
• Detail of specification and need of prequalification.
• Limitation on participation of bidders.
• Any other matter which deviates from the
norms, guidelines should be provided with due
justification.
Procuring entity should not limit bidder
participation and discrimination in procurement
process unless the same is required to do so as
per any act, rules and guidelines.
3. Submission of bidding document.
In case bidders need some clarification/
information, the procuring entity should provide
such clarification at least seven days before the
deadline for submission of bids. It is also expected
from procuring entity to communicate such
clarifications to all bidders. Based on the
specifications, qualifications and other requirement
the bidders submit their bids in accordance to the
set procedure/ guidelines. The procuring entity
should download/ mark the serial no, received
within the time limit.
4. Evaluation process.
This phase of the procurement is susceptible to
22
Article
manipulation in a non-transparent selection
process. The evaluation should be transparent,
professional, ethical, fair and clear. The officials,
who are in evaluation committee, are required to
sign a declaration that they have no relationship
with any of the bidders prior to the commencement
of the evaluation process. Transparency in
evaluation & /or awarding is depend upon the indepth assessment, fair and transparent evaluation
of received bids. In two stage biding evaluation
should be made as per detail below.
•
When the rates quoted considerable higher
from prevailing market rates/ last price.
With due approval, the negotiation be undertaken
by a higher committee, consisting of technical and
financial preferable who were not involved at pre
stages. In case of non-satisfactory achievement of
rates from lowest bidder the committee, may chose
to make written counter offer to the lowest bidder
and if it is not accepted by him, the procuring entity
may decide to reject and re-invite bids or to make
the same counter offer to the second lowest then to
third lowest and so on in the order of the their initial
ranking. The work order should be awarded to the
bidder, who accepts the counter-offer and not to
offer counter offer to next bidder. In case no bidder
was accepted the counter offer then, the tender
should be scraped and shall be re-invite, if required.
This procedure should be used in exceptional cases
only and fairly reasonable time period should be
given to each bidder for their acceptance or
rejection of the written counter offer. On the basis of
outcome, the recommendation should be made for
awarding the work or rejecting the bids to the
authority.
5. Technical evaluation
It is important to ensure that such evaluations
should be done on the basis of prequalification
criteria. The evaluation committee is required to
check the documents and make a comparative
statement to evaluate the qualification of the bidder
against the criteria set out in the bidding document.
For clarification & fulfilling the deficient
information/documents and opportunity can be
extended, to those who have deposited the tender
fee, Bid Security and other fee etc. All of bids
should be in equal platform without any deviations.
In case any deviation is necessary then, it should be
communicated to through by way of amendment in
the biding document. On the basis of evaluation
committee should made clear recommendation
whether bidder is qualifying or not qualifying for
financial bid opening.
7. Acceptance of the successful bid and award
of work.
After considering the recommendation of the
committee, the decision for either accepting or
rejecting the bid should be taken within the original
validity period of the bids. If the decision is not
taken within the original validity period then
extension should be obtained from the bidder and
decision taken thereafter. The successful bidder as
well as other unsuccessful bidders should be
informed about the awarding of work/rejecting the
bid along with the reason also be informed to all the
bidders.
6. Financial evaluation.
Financial bid shall only be opened, for those who
have qualified in the technical evaluation. The
committee should examine the price quoted by the
bidders, whose price was opened keeping in view of
applicable rules, regulation, and last price &/or
prevailing market price. The lowest bidder would be
determined on the basis of criteria laid down in the
bidding stage. It should be ensured that the offered
rates are reasonable and justifiable looking to the
prevailing market price. The negotiation should be
avoided, as far as possible. If negotiation still
required, then should be undertaken only with the
lowest bidder under the following circumstances• When the ring price have been quoted by the
bidders through cartel.
CMA DINESH DARGAR
Sr. Manager (F&A)
Contract & Material Management
Rajasthan State Mines & Minerals Ltd.
Udaipur
23
Article
Ease of Doing Business in India
Minal Agarwal
Ease of doing business ranks economies from 1 to 189,
with first place being the best. A high ranking (a low
numerical rank) means that the regulatory environment
is conducive to business operation.
and corporate transparency requirements that
reduce the risk of abuse
vii. Paying taxes - It addresses the taxes and
mandatory contributions that a medium-size
company must pay or withhold in a given year, as well
as measures the administrative burden in paying
taxes.
viii. Trading across borders - It measures the time and
cost (excluding tariffs) associated with exporting and
importing a standardized cargo of goods by sea
transport. The time and cost necessary to complete 4
predefined stages (document preparation; customs
clearance and inspections; inland transport and
handling; and port and terminal handling) for
exporting and importing the goods are recorded;
however, the time and cost for sea transport are not
included. All documents needed by the trader to
export or import the goods across the border are also
recorded.
ix. Enforcing contracts The enforcing contracts topic
assesses the efficiency of the judicial system by
following the evolution of a commercial sale dispute
over the quality of goods and tracking the time, cost
and number of procedures involved from the moment
the plaintiff files the lawsuit until payment is
received.
x. Resolving insolvency It identifies weaknesses in
existing bankruptcy law and the main procedural and
administrative bottlenecks in the insolvency process.
WHAT IS EASE OF DOING BUSINESS INDEX?
• It is an index created by the World Bank Group.
• Higher rankings (a low numerical value) indicate
better, usually simpler, regulations for businesses and
stronger protections of property rights.
• The index is based on the study of laws and
regulations, with the input and verification by more
than 9,600 government officials, lawyers, business
consultants, accountants and other professionals in
185 economies who routinely advise on or administer
legal and regulatory requirements.
PARAMETERS USED BY WORLD BANK TO
MEASURE EASE OF DOING BUSINESS
The World Bank report considers these ten parameters:
i. Starting a business - It measures the number of
procedures, time and cost for a small and mediumsize limited liability company to start up and formally
operate.
ii. Dealing with construction permits - It tracks the
procedures, time and cost to build a warehouse—
including obtaining necessary the licenses and
permits, submitting all required notifications,
requesting and receiving all necessary inspections
and obtaining utility connections.
iii. Getting electricity - It tracks the procedures, time
and cost required for a business to obtain a
permanent electricity connection for a newly
constructed warehouse.
iv. Registering property - It examines the steps, time
and cost involved in registering property, assuming a
standardized case of an entrepreneur who wants to
purchase land and a building that is already
registered and free of title dispute.
v. Getting credit - It explores two sets of issues—the
strength of credit reporting systems and the
effectiveness of collateral and bankruptcy laws in
facilitating lending.
vi. Protecting investors - It measures the strength of
minority shareholder protections against misuse of
corporate assets by directors for their personal gain
as well as shareholder rights, governance safeguards
EASE OF DOING BUSINESS RANKINGS
• India dropped two places to rank 142 among 189
nations in the World Bank’s Ease of Doing Business
2015 study.
• With the exception of two parameters (getting credit
and protecting minority investors), India does not
feature in the top 100 in the remaining parameters.
• In “dealing with construction permits” and “enforcing
contracts” parameters, India ranks among the
bottom 10 economies.
• India is still the lowest ranked country in South Asia
• Singapore topped the list for a ninth straight year,
followed by New Zealand and Hong Kong.
• India’s performance in terms of the points scored has
improved in six out of the 10 criteria; deteriorated on
the ease of paying taxes criterion; and remained
unchanged on three other parameters.
24
Article
•
In terms of global ranking, India has improved its
performance only in the new category of protecting
minority investors.
PARAMETER-WISE RANKING OF INDIA
S. Parameter
No.
COUNTRY -WISE RANKING
Country/Region
Singapore
New Zealand
Hongkong
Denmark
South Korea
Norway
United States
United Kingdom
Finland
Australia
INDIA
Rank
2015
2014
1
1
2
3
3
2
4
5
5
7
6
9
7
4
8
10
9
12
10
11
142
140
DB
2015
Rank
DB
2014
Rank
Change
in
Rank
1
Starting a Business
158
156
!-2
2
Dealing with
Construction Permits
184
183
!-1
3
Getting Electricity
137
134
!-3
4
Registering Property
121
115
!-6
5
Getting Credit
36
30
!-6
6
Protecting Minority
Investors
7
21
!14
7
Paying Taxes
156
154
!-2
8
Trading Across
Borders
126
122
!-4
9
Enforcing Contracts
186
186
No
Change
137
135
!-2
10 Resolving Insolvency
STATE WISE RANKING
Rank
State
Score
Rank
State
1
Gujarat
71.14%
17
Himachal Pradesh
23.95%
2
Andhra Pradesh
70.12%
18
Kerala
22.87%
3
Jharkhand
63.09%
19
Goa
21.74%
4
Chhattisgarh
62.45%
20
Puducherry
17.72%
5
Madhya Pradesh
62.00%
21
Bihar
16.41%
6
Rajasthan
61.04%
22
Assam
14.84%
7
Odisha
52.12%
23
Uttarakhand
13.36%
8
Maharashtra
49.43%
24
Chandigarh
10.04%
9
Karnataka
48.50%
25
Andaman and Nicobar Islands
9.73%
10
Uttar Pradesh
47.37%
26
Tripura
9.29%
11
West Bengal
46.90%
27
Sikkim
7.23%
12
Tamil Nadu
44.58%
28
Mizoram
6.37%
13
Telangana
42.45%
29
Jammu and Kashmir
5.93%
14
Haryana
40.66%
30
Meghalaya
4.38%
15
Delhi
37.35%
31
Nagaland
3.41%
16
Punjab
36.73%
32
Arunachal Pradesh
1.23%
25
Score
Article
OBJECTIVES ON EASE OF DOING BUSINESS
• Making India easiest place to do business
• Bringing India in top 50 rank of Doing Business
Report
regulated and governed by laws, some of which are still
archaic and there is need for complete overhauling of the
licensing policies. It takes up considerable time to deal
with various Depts. separately and if one is stuck up at
one stage, he may not be able to move to the other. A
single point clearance needs to be provided to cut down
the loss of time by moving different Depts. separately.
PRINCIPLES OF EASE OF DOING BUSINESS
• Convert from manual to online
• Eliminate touch points with applicants
• Prepare checklists, adhere to them
• Prepare timelines, punish delays
• Share information across platforms
• Eliminate unnecessary steps and requirements
• Promote self-compliance, self-certification
Recommendations
Starting a Business – Recommendations
1. Effective implementation of the single-window
clearance system for approvals related to starting a
business.
2. Single window agency should aim to co-ordinate all
legal approvals necessary for the setting up of a
business.
3. Decrease the time taken to grant approval. Escalation
could be done by a single-window clearance agency
to the concerned authorities in case of delays.
4. Simplify applications by introducing a combined
application form (CAF) instead of several different
forms for various departments. Orissa has one
common form which is accepted by all the
departments.
5. Common register; Orissa has replaced the need for
maintaining multiple registers (29 registers under
various acts) by three combine registers.
8. Environment norms should be clearly defined and
implemented in a time bound manner.
PROBLEMS FACED BY CERTAIN SPECIFIC
BUSINESSES:
REAL ESTATE BUSINESS
Media reports show that if a person wants to enter into
real estate construction business, he will have to seek 40
to 70 approvals, inter-alia, from
• NHAI, the Pollution Control authorities of Ministry of
Environment,
• AAI,
• Labour Ministry,
• Central Ground Water Board,
• Aviation Regulators and Some Other Authorities.
For various reasons, India is amongst the worst in the
world when it comes to dealing with construction permits
(rank 183) and enforcing contracts (rank 178) even when
the Govt. has set a target of making India one among the
top 50 countries in doing business.
According to a report of Confederation of Real Estate
Developers Association of India (CREDAI) on an average,
it takes 2-3 years to start a project after the land is
acquired. By this time, the cost of land rises by 24 to 30%
due to heavy interest payable to banks
Even After the construction is complete, there are still too
many hassles like getting plinth area certificates
regarding the completion of each floor, problems in
getting occupancy certificates and obtaining nonagricultural land clearance, etc
Taxation – Recommendations
Taxation in India needs structural, operational and
administrative reforms; the burden of tax compliance
should be reduced besides enabling e-filing of all taxes.
• Ease of paying taxes
• Enable e-filing of all taxes with uninterrupted access
to online services especially in rural areas.
• Time-bound subsidies and tax exemptions should be
given to the units located in industrial areas, food
parks and agro-export zones.
• The GST proposes to subsume all indirect taxes
levied in the country but is yet to be implemented. It
could help address the shortcomings in the existing
indirect tax system like tax cascading complexity and
poor technological infrastructure along with high cost
of compliance. Structural reforms Reduce the
number of levies and simplify their nature
In the past – say 50 years - the compliance under the
Act was cumbersome. Since then, the Dept. has
moved in a big way in facilitating doing of business.
RESTAURANT BUSINESS
Licenses are required from fire, health, police,
municipalities, taxation, environment and various other
Depts.
Further laws differ from State to State and this makes
opening of branches at various States cumbersome. It
takes months after the business is set up, to make it
functioning. Restaurant business continues to be over-
26
Article
There was a time when the taxpayers had to visit
Income Tax Offices, in some cases, many times in
getting their assessments completed with big
bundles containing their books of account and other
documents. From that stage, the I.T. Dept. has
moved to a situation, where 98 to 99% of the returns
filed are accepted and assessments are made
without requiring the presence of the taxpayers. Only
returns in few cases are scrutinized.
Over the years, the I.T. Dept. has switched over to
online functioning and the process is showing
continuing progress. Recently, the I.T. Dept. has
started a pilot project of using e-mails for sending
notices, getting replies as well as carrying out tax
assessments in an attempt to make sure taxpayers
don’t have to visit I.T. Offices physically in smaller
cases.
The Central Board of Direct Taxes (CBDT) has
identified non-corporate charges at five locations and
100 initial cases for e-hearing. In order to improve
taxpayer services, enhance efficiency and usher in a
paper less environment for carrying out assessment
proceedings, CBDT has decided to initiate the
concept of using e-mail for corresponding with
taxpayers and sending through e-mails the
questionnaires, notice and getting responses from
them using the same medium on a pilot basis.
as starting it. Regretfully, presently it is not so. An
enterprise, desiring to close down, has to show past 3
years’ financial results (audited). The business has to be
kept running for one year after filing the proposal for
closure. This causes hardship and is also, apparently,
unfair.
CYBER LAWS IN INDIA WITH REFERENCE TO
EASE OF DOING BUSINESS
The internet laws in the country are still developing and
comprehensive policies or legislations dealing with data
privacy, encryption, etc., are expected in the near future
which would provide businesses with further clarity
regarding the rules and regulations to be complied with
while doing business in India.
In the last few decades the Internet has emerged as a
powerful and borderless medium of communication,
trade and commerce. In fact, Pentagon, headquarters of
the United States Department of Defense, considers
Cyberspace as the fifth domain after land, water, air, and
space.
Internet has thus, no doubt, become the lifeline of critical
infrastructures such as energy, telecommunication,
banking, stock exchanges, etc.
This is also evident from the fact that India has moved up
12 places from its last year’s ranking of ‘Ease of Doing
Business’ as published by the World Bank Group
However, this very same internet that has helped boost
several businesses is also quite vulnerable and is many a
times used by criminals and unscrupulous persons to
profit from or damage private and public infrastructure as
well as strategic resources.
Regulating the World Wide Web and maintaining pace
with the ever changing and dynamic technologies is
increasingly difficult for countries and their law makers as
they are faced with extreme challenges and at times - lack
of understanding of the technology to be regulated.
Cyber security and cyber laws are complex areas which
require deep understanding of the technologies involved
in order to develop and implement effective laws and
policies for their regulation.
Presently, internet or cyber laws of our country are in a
state of continual development and the Ministry of
Communications & Information Technology [MCIT] along
with the Government and other relevant stakeholders are
in the process of refining present laws/policies and
introducing new and more relevant laws and policies
pertaining to internet and the cyber space. However, as of
now, the Information Technology Act, 2000 is the sole
legislation addressing issues related to the ‘internet’.
UNDER THE COMPANIES ACT
The Finance Minister on 27th October, 2015 announced
constitution of six expert panels to review Companies Act
and work on more amendments to the Act, on top of 16
amendments moved for changing the Companies Act
almost immediately after the Act came into force. This
was done on the representation of India Inc., which found
the provisions of the Companies Act too harsh and even
later amendments were considered not to have eased the
position.
Structural reforms: ––
• Clarity in policy and precision in drafting to help
decrease the number of disputes.
• Clarity and precision in policy by aligning it to
macroeconomic objectives
• Stability and predictability to avoid frequent
amendments.
•
Emphasis on restricting practice of retrospective
amendments.
SHUTTING DOWN :
Shutting down businesses should be as less cumbersome
27
ICAI IN NEWS
NIRC NEWS IN PRINT MEDIA
28
ICAI IN NEWS
29
ICAI IN NEWS
30
NIRC of ICAI Activities at a Glance
CMA P.V. Bhattad, Hon'ble president ICAI, welcoming very senior
member CMA G.R. Kejriwal, (Father of shri Arvind Kejriwal, CM
Delhi.) to Institute.
CMA Ravi Kr. Sahni, Vice Chairman NIRC, CMA Sunil Singh,
Secretary, NIRC, welcoming CMA Sushil Yadav, Keynote Speakar at
programme on Internal Audit.
Sr. Faculty CMA R.R. Agarwal, sharing his valued suggestions for
improvement in coaching classes, at faculty meet.
A View of the dias at the press conference called by NIRC office on
15.12.2015 at NIRC
CMA Pankaj Gupta, Vice Chancellor, Appeejay Stya University,
moderator for CFO /CEO Conclave addressing the participants at
Vigyan Bhawan
CMA Sanjay Gupta, CCM presenting a bouquet of flowers to CMA
Rajeev Mehrotra, CMD, RITES.
31
POSTING DATE 16-17
DL (S) 17/3209/2015-17
R.N.I. NO. 64897/96
NIRC OF ICAI IN ACTION
CMA P.V. Bhattad,
President,ICAI
addressing the
audience at
Vigyan Bhawan
Shri Santosh Gangwar, Hon'ble Minister of State,addressing the
audience at Vigyan Bhawan, about the significant role CMA's can
play in "Make in India" mission of our Hon'ble Prime Minister Shri
Narendra Modi.
Shri P.P.Choudhary, Member of Parliament (Rajasthan) addressing Shri Sukhbir Singh Jaunapuria, Member of Parliament (Rajasthan)
the audience at Vigyan Bhawan
addressing the audience at Vigyan Bhawan.
CMA Sunil Singh,Secreatary NIRC addressing the audience at
Vigyan Bhawan
CMA Anil Sharma, Treasurere ,NIRC addressing the audience at
Vigyan Bhawan
Printed & Published by: Mr. Ravi Shankar, Editor on behalf of the Northern India Regional Council of the Institute of Cost Accountants of India,
CMA Bhawan, 3 Institutional Area, Lodi Road, New Delhi - 110 003 Ph.: 24626678, Printed at: Art Design Print Solution,
G-19, Tiwari Complex, Laxmi Nagar, Delhi - 110 092, Ph.: 011-42440587, Posted at: Lodi Road Office, ND-03 on January, 16-17, 2016
32

Now - nirc

Transcription

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