What to do with the notes of Rs 500 & Rs1000 Solution

To stop the spread of counterfeit notes, which is aiding terror activities from across the border, the government has decided to scrap the notes of Rs. 500 and Rs. 1000, Prime Minister Narendra Modi said today. Starting midnight, these notes will only be "worth the paper they are printed on," he said.

A proposal for new Rs.s 500 and Rs.s 2,000 notes has been cleared by the Reserve Bank of India.

There will be no change in any other form of monetary exchange -- cheque, DD, payment via credit or debit cards, he said.

Here's what you need to do with your Rs. 500 and Rs. 1000 notes.

1. Change them at the bank or post office from November 10 to December 30
2. Take Aadhaar card and Pan Card when you go to exchange these notes
3. After December 30, these can be changed at the Reserve Bank with a declaration
4. Tourists can change the notes at airports.

Get out of Comfort Zone.

Growth and comfort do not coexist.
Do one thing every day that scares you.
I am not saying this is easy, and its certainly easier to write about than to put into action, but it’s the only way to make changes on a daily basis that affect our lives for the better. You may also fail at first, but if you stay in the “scary” place of optimal anxiety, you may find yourself taking important risks that you never thought you would do.
We may not be aware of how locked in the comfort zone we actually are. The more we risk in the right ways, the more we succeed.

COMPLETE FR BY 28TH JULY.

So here is first Goal for our main Aim.

We need to complete  FR by 28th july through any means possible. 

You can either produce excuse or Results.

Decision is Yours .

If u planning  for single group than you can take leniency of 2-3 days in schedule.

Here is the schedule.

Its as per Practice Manual as i have not taken any coaching classes so m preferring Practice  Manual.

20 JULY - AS -1,2,3,4,5 & SHARE BASED PAYMENT & AS 15 & 20

21 JULY- AS - 6,7,9,10,11,12,13 & VALUATION(Intangible Assets & tangible assets, liabilities, shares,& business)

22 july - AS 14 & AMALGAMATION, EVA ,MVA ,VALUE ADDED STATEMENT & HRR.

23 JULY - AS 16,17,18,19,21 & CH-3 CFR, CH-6, FINANCIAL INSTRUMENTS 

25 JULY - AS 29,28,27,26,25,24  & CH-8 MF & NBFC

26 JULY - AS 22 & ALL applicable guidance notes for this attempt & Introduction of INDAs CH -2

26& 27JULY -AS 23 & HOLDING.

CRACK CA FINAL IN 3 MONTHS

Yesterday Results were announced & many heart broken due to failure. Some heart were of my dear one also.
I have my attempt due in NOVEMBER 2016,
I am taking initiative to share from now to next  3 months my daily  final preparation in which i will cover 100% syllabus of 8 subjects & one revision also.
For following this you need to be very determined for clearing papers by any means possible. Stay positive during this last 3 month period & don't discuss syllabus with your friends.
Set goals having end in mind for short period. Keep moving towards end.
All the best friends.

CA FINAL NMQs Financial Reporting Chapter SHARE BASED PAYMENT CA FINAL NOV 2016

Share Based Payment
Ques -
PQ Ltd. grants 100 stock options to each of its 1,000 employees on 1-4-2013, conditional upon the employee remaining in the company for 2 years. The fair value of the option is ` 18 on the grant date and the exercise price is ` 55 per share. The other information is given as under:
(i) The no. of employees expected to satisfy service condition are 930 in the 1st year and 850 in the 2nd year.
(ii) 40 employees left the company in the 1st year of service and 880 employees have actually completed 2 year vesting period.
(iii) The profit of the enterprise before amortization of the compensation cost on account of ESOPs is as follows:
(A) ` 18,50,000
(B) ` 22,00,000
(iv) The fair value of share for these years was ` 80 and ` 88 respectively.
(v) The company has 6 lakhs shares of ` 10 each outstanding at the end of both years.
Compute basic and diluted EPS for both the years (ignore the tax impacts).

Answer

In attached pictures.

Profit before amortization of ESOP cost.    
                                              18,50,000 22,00,000
Less: ESOP cost amortised
                                             (7,65,000) (8,19,000)
Net profit for shareholders
                                              10,85,000 13,81,000
No. of shares outstanding 6,00,000 6,00,000
Basic EPS.                                     1.81 2.30
Potential equity.                     19,200 33,000
Total no. of equity shares 6,19,200 6,33,000
Diluted EPS.                                1.75 2.18

CA FINAL LAW , DIVIDEND CHAPTER

Never Miss Points in DIVIDEND Chapter---

1. Interim dividend is proposed as well as declared by board
2. Any amount can be transferred to reserves before declaration of dividend
3. Bonus shares and dividend are not substitutes i.e. bonus share cannot be issued in lieu of dividend
4. Default in  repayment of deposits and interest thereon or only DEPOSITS till such failure continues, leads to prohibition of Declaration of EQUITY dividend
5.  RULE 3 SUB RULE 5(set off losses and dep not provided for) has been omitted from rule and added as proviso to sec 123
6. OR is required for revocation of dividend once declared. Board will be justified in revocation of dividend in case its been illegally declared or intervening events leading to heavy losses and its advisable to conserve the remaining assets
7. Interest is 18 %p.a in case of late payment of dividend.  No shareholder can enforce higher rate even through court
8. Old sec 205C clarifies no claim will be entertained after 7 years while section 125(3) say that claim will be entertained even after 7 years and amount will be refunded back

CA Final FR AS 16 & 11 NMQs

Question --
Sun Co-operative Society Ltd. has borrowed a sum of US$12.50 million at the commencement of the financial year 2014-15 for its solar energy project at LIBOR (London Interbank Offered
Rate) of 1% + 4% . The interest is payable at the end of the respective financial year. The loan was availed at the then rate of ` 45 to the US dollar while the rate as on 31st March, 2015 is ` 48 to the US dollar. Had Sun Co-operative Society Ltd. borrowed the Rupee equivalent in India, the interest would have been 11%. You are required to compute Borrowing Cost‘. Also show the amount of exchange difference as per prevailing Accounting
Standards.
ANSWER--
Computation of Borrowing Cost as per para 4(e) of AS 16” Borrowing Costs” and Amount of Exchange Difference as per AS 11 “The Effects of Changes in Foreign Exchange Rates”:
(a) Interest for the period 2014-15
= US$ 12.5 million x 5% × ` 48 per US$ = ` 30 million
(b) Increase in the liability towards the principal amount
= US $ 12.5 million × ` (48 - 45) = ` 37.5 million
(c) Interest that would have resulted if the loan was taken in Indian currency
= US$ 12.5 million × ` 45 x 11% = ` 61.875 million
(d) Difference between interest on local currency borrowing and foreign currency borrowing = ` 61.875 million - ` 30 million = ` 31.875 million.

Therefore, out of ` 37.5 million increase in the liability towards principal amount, only ` 31.875 million will be considered as the borrowing cost.

Thus, total borrowing cost would be ` 61.875 million being the aggregate of interest of ` 30 million on foreign currency borrowings plus the exchange difference to the extent of difference between interest on local currency borrowing and interest on foreign currency borrowing of ` 31.875 million.

Hence, ` 61.875 million would be considered as the borrowing cost to be accounted for as per AS 16 and the remaining ` 5.625 million (37.5 - 31.875) would be considered as the exchange difference to be accounted for as per AS 11.

CA FINAL FR NOV 2016 NMQs

Ques :-
Opportunity Ltd. purchased an equipment costing ` 24,00,000 lakhs on 1.4.2013 and the same was fully financed by foreign currency loan (US Dollars) payable in four annual equal installments. Exchange rates were 1 Dollar = ` 60.00 and ` 62.50 as on 1.4.2013 and 31.3.2014 respectively. First installment was paid on 31.3.2014. The entire difference in
foreign exchange has been capitalized. You are required to state that how these transactions would be accounted for.
Ans:-
Solution
As per para 13 of AS 11 (Revised 2003) „The Effects of Changes in Foreign Exchange Rates‟, exchange differences arising on reporting an enterprise‟s monetary items at rates different
from those at which they were initially recorded during the period, should be recognized as income or expenses in the period in which they arise. Thus, exchange differences arising on
repayment of liabilities incurred for the purpose of acquiring fixed assets will be recognized as income or expense.
Calculation of Exchange Difference:
Foreign currency loan = ` 24,00,000/60 = 40,000 US Dollars
Exchange difference = 40,000 US Dollars x (62.50-60.00) = ` 1,00,000
(including exchange loss on payment of first instalment)Therefore, entire loss due to exchange differences amounting ` 1,00,000 should be charged to profit and loss account for the year.
Note: The above answer has been given on the basis that the company has not availed the option for capilisation of exchange difference as per para 46/46A of AS 11.
However, as per para 46A of the standard, the exchange differences arising on reporting of long term foreign currency monetary items at rates different from those at which they were initially recorded during the period, in so far as they relate to the acquisition of a depreciable capital asset, can be added to or deducted from the cost of the asset and shall be depreciated over the balance life of the asset.
Accordingly, in case Opportunity Ltd. opts for capitalizing the exchange difference, then the entire amount of exchange difference of ` 1,00,000 will be capitalsied to „Equipment account‟. This capitalized exchange difference will be depreciated over the useful life of the asset.
Cost of the asset on the reporting date
Initial cost of Equipment ` 24,00,000
Add: Exchange difference as on 31.3.2014 ` 1,00,000
Total cost on the reporting date ` 25,00,000

CA FINAL ISCA , NMQs Chapter 1, Governance.

Question
Discuss key benefits of COBIT 5 framework.
Answer-
The key benefits of COBIT 5 framework are as follows:
• A comprehensive framework such as COBIT 5 enables enterprises in achieving
their objectives for the governance and management of enterprise IT.
• The best practices of COBIT 5 help enterprises to create optimal value from IT by maintaining a balance between realizing benefits and optimizing risk levels and resource use.
• Further, COBIT 5 enables IT to be governed and managed in a holistic manner for the entire enterprise, taking in the full end-to-end business and IT functional areas of responsibility, considering the IT related interests of internal and external stakeholders.
• COBIT 5 helps enterprises to manage IT related risk and ensures compliance,
continuity, security and privacy.
• COBIT 5 enables clear policy development and good practice for IT management including increased business user satisfaction.
• The key advantage in using a generic framework such as COBIT 5 is that it is useful for enterprises of all sizes, whether commercial, not-for-profit or in the public sector.
• COBIT 5 supports compliance with relevant laws, regulations, contractual agreements and policies.

Circulars issued by CBDT from Nov 2015 to April 2016.

Significant Circulars issued by CBDT applicable for CA Final Nov 2016

Circular No - 18/2015
Date - 2/11/15
Subject- Whether in the case of banks, expenses relatable to investment in non-SLR securities need to be disallowed under section 57(i), by considering interest on non-SLR securities as “Income from other sources".
Clarification by CBDT-  In CIT v. Nawanshahar Central Cooperative Bank Ltd. [2007]160 Taxman 48, the Supreme Court held that investments made by a banking concern are part of the business of
banking. Therefore, the income arising from such investments is attributable to the business of banking falling under the head "Profits and Gains of Business and Profession
Even though the above mentioned decision was in the context of co-operative societies/Banks claiming deduction under section 80P(2)(a)(i), the principle is equally applicable to all banks/commercial banks, to which Banking Regulation Act, 1949 applies.

Circular No - 21/2015
Date- 10/12/2015
Subject - Revision of monetary limits for filing of appeals by the Department before the ITAT and High Courts and SLP before Supreme Court
Clarification by CBDT - Appeals/SLP shall not be filed in cases where tax effect does not exceed the monetary limits given hereunder –
`10 lakhs, in case of appeal before ITAT;
`20 lakhs, in case of appeal before High Court; and
`25 lakhs, in case of appeal before Supreme Court.
Further, appeal should not be filed merely because the tax effect in a case exceeds the monetary limits prescribed above. Filing of appeal in such cases is to be decided on merits of the case. The above limits would apply equally to cross objections under section 253(4) and references to High Court under sections 256(1)and (2).


Circular No - 22/2015
Date - 17/12/15
Subject - Allowability of employers contribution to welfare funds of employees remitted after due date under the relevant Act but before the due date of fi ling of return under section 139(1).
Clarification  by CBDT-  If the assessee deposits any sum payable by it by way of tax, duty, cess or fee by whatever name called under any law for the time being in force, or any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees, on or before the ‘due date’ applicable in his case for furnishing the return of income under section 139(1), no disallowance can be made under section 43B.This clarification is based on Supreme Court decision in CIT v. Alom Extrusions Ltd. (2009) 185 Taxman 416.
It is further clarifi ed that this Circular does not apply to claim of deduction relating to employee’s contribution to welfare funds which are governed by section 36(1)(va) of the Income-tax Act,
1961.

NMQs- CA Final Paper 4 Corporate & Allied Laws

Topic- Inspection, Inquiry and Investigation
Question-
A notice was sent to Mr. Left by the registrar to furnish the information related to a business transacted during his tenure in the X company. Mr. Left ignored the notice considering that he is no more an employee of X company. Registrar issued the summon against Mr. Left. Explain in the light of the Companies Act, 2013 about the liability of the
Mr. Left in the given case.

Answer-
Power of the Registrar to call for information, explanation or documents: According to section 206(1) of the Companies Act, 2013, where on a scrutiny of any document filed by a company or on any information received by him, the Registrar is of the opinion that any further information or explanation or any further documents relating to the company is necessary, he may by a written notice require the company—
(a) to furnish in writing such information or explanation; or
(b) to produce such documents,within such reasonable time, as may be specified in the notice.
Further, proviso to sub-section (2) of section 206 provides that where such information or explanation relates to any past period, the officers who had been in the employment of the company for such period, if so called upon by the Registrar through a notice served on them in writing, shall also furnish such information or explanation to the best of their knowledge.
In the given instance, Mr. Left is a past member of the company. Registrar by serving notice asked Mr. Left to furnish the information related to the business transaction made during his tenure. So as per the above provision, where such information or explanation relates to any past period, the officers who had been in the employment of the company for such period, if so called upon by the Registrar through a notice served on him, he has
a duty to give such information/Explanation to the best of his knowledge. Mr. Left is liable to provide such information.

NMQs for CA FINAL Nov 2016 Paper -3 AAPE Topic SA 220

Very Important  Question
Question
M/s Sureshchandra & Co. has been appointed as an auditor of SC Ltd. for the
financial year 2014-15. CA. Suresh, one of the partners of M/s Sureshchandra &
Co., completed entire routine audit work by 29th May, 2015. Unfortunately, on the
very next morning, while roving towards office of SC Ltd. to sign final audit report,
he met with a road accident and died. CA. Chandra, another partner of M/s
Sureshchandra & Co., therefore, signed the accounts of SC Ltd., without reviewing the work performed by CA. Suresh. State with reasons whether CA. Chandra is right in expressing an opinion on financial statements the audit of which is performed by another auditor.
Answer
Relying on Work Performed by Another Auditor: As per SA 220 “Quality Control for an Audit of Financial Statements”, an engagement partner taking over an audit
during the engagement may apply the review procedures such as the work has
been performed in accordance with professional standards and regulatory and legal requirements; significant matters have been raised for further consideration; appropriate consultations have taken place and the resulting conclusions have been documented and implemented; there is a need to revise the nature, timing and extent of work performed; the work performed supports the conclusions reached and is appropriately documented; the evidence obtained is sufficient and
appropriate to support the auditor’s report; and the objectives of the engagement procedures have been achieved.
Further, one of the basic principles, which govern the auditor’s professional
responsibilities and which should be complied with wherever an audit is carried, is that when the auditor delegates work to assistants or uses work performed by other auditor and experts, he will continue to be responsible for forming and expressing his opinion on the financial information. However, he will be entitled to rely on work performed by others, provided he exercises adequate skill and care and is not aware of any reason to believe that he should not have so relied. This is the fundamental principle which is ethically required as per Code of Ethics.
However, the auditor should carefully direct, supervise and review work delegated. He should obtain reasonable assurance that work performed by other
auditors/experts and assistants is adequate for his purpose.

In the given case, all the auditing procedures before the moment of signing of final report have been performed by CA. Suresh. However, the report could not be signed by him due to his unfortunate death. Later on, CA. Chandra signed the
report relying on the work performed by CA. Suresh. Here, CA. Chandra is allowed
to sign the audit report, though, will be responsible for expressing the opinion. He may rely on the work performed by CA. Suresh provided he further exercises
adequate skill and due care and review the work performed by him.

NMQs for CA Final Paper -4 CAL

Chapter -O & M
Ques:-
Examine the merits of the following petitions made under Sections 397 and 398 of the Companies Act, 1956 in the light of judicial pronouncements made in this regard:
(i) A group of shareholders holding 12% of the issued share capital of Unique Products Limited have filed a petition before the Company Law Board alleging various acts of illegal, invalid and irregular transactions entered into in the name of the Company.
Ans:-
(i) According to Sections 399(1)(a) of the Companies Act, 1956, a group of shareholders of Unique Products Limited must hold atleast 10% of the issued share capital of the Company or satisfy other requirements under section 399(1) of the Companies Act, 1956. Since the group holds 12% of the issue capital they are entitled to file a petition before
the Company Law Board under sections 397 and 398 of the Companies Act, 1956 by alleging that the affairs of the Company are being conducted in a manner prejudicial to public interest or in a manner oppressive to any member or members of the Company.
However, on the basis of Sheth Mohanlal Ganpatram V. Shri Sayaji Jubilee Colton and Jute Mills Company Ltd., mere illegal, invalid or irregular transactions entered into in the name of the company do not constitute a ground for invoking the provisions of section 397 unless it is proved that they are oppressive to any shareholder or prejudicial to the interest of the company or to the public interest.
Thus, in the present case, the petition filed by the group of shareholders will fail unless they can prove to the satisfaction of the Company Law Board that the acts complained of in the petition are oppressive and prejudicial to the interest of the company and the public interest. And that to wind up the company would unfairly prejudice such member or members, but that otherwise those facts would justify the making of a winding up order on the ground that it was just and equitable that the Company should be wound up.

NMQs for CA FINAL Paper -4 CAL

Chapter- O& M
Ques:-
The profits of ABC Limited for the financial year 2014-2015 fell considerably due to recession. The Board of directors of the company, therefore, bonafide did not recommend any dividend for the year. At the Annual General Meeting of the company, a group of members objected to the Board's decision and wanted the Board to make recommendation for dividend. On refusal by the Board, the members, who feel oppressed by the Board's decision to skip the dividend, move to the Company Law Board and complain against the Board on the ground of oppression and mismanagement.
Examining the provisions of the Companies Act, 1956, decide:
(i) Whether the members contention shall be tenable?
(ii) Whether the act of Board of Directors not to recommend any dividend shall amount to oppression and mismanagement?
Ans:-
Oppression & Mismanagement: Under sections 397 and 398 of the Companies Act, 1956, members may apply to the Company Law Board in cases of oppression and mismanagement. However, bona fide decisions consistent with the company’s memorandum and articles are not to be equated with mismanagement even if they turn
out to be wrong in the circumstances or these cause temporary losses. The Court will not permit the machinery created by the sections to be used by the minority for compelling the majority to come to terms, where the company is honestly managed. Directors’ bona fide decision not to declare dividend and to accumulate available profits into reserves is not mismanagement. (Thomas Vettom (V.J.) vs. Kuttanad Rubber Co. Ltd. (1984) 56 Com. Cases 284 (Ker).
Thus in the given case, the group of members who complain to CLB against the decision of the Board not to declare any dividend and to accumulate available profits into reserves, would not succeed, as the act of directors does not amount to mismanagement.
Furthermore, the shareholders cannot compel the Board to recommend a dividend. The Board’s recommendations are placed in the general meeting. In the general meeting company can reduce the dividend, but cannot increase the dividend as recommended by the Board. Therefore, the members cannot compel the company to declare dividend and cannot charge the directors with oppression or mismanagement.
Applying the above, answers to the question shall be as under:
(i) The contention of shareholders/members shall not be tenable.
(ii) The act of the Board of directors who acted bona fide, not to recommend any
dividend shall not amount to oppression or mismanagement.

NMQs for Coporate Law & Allied Laws.

Chapter Prevention of O & M

Ques :-
A petition by majority shareholders complaining oppression by minority shareholders.
Give your answer according to the provisions of the Companies Act, 1956.
Ans :-
Right not confined to minority: According to section 399, the right to apply for relief under section 397/398 is given to 100 members or 1/10th of the total number of members or any member or members holding not less than 1/10th of the issued share capital of the company. There is nothing in this section which suggests even indirectly that unless the application is made by minority shareholders it is not maintainable. The right to apply is, therefore, not confined to oppressed minority of the shareholders alone. It was held by Calcutta High Court in Re. Sindhri Iron Foundry (P) Ltd. that the oppressed majority also might apply for relief under section 397. Therefore, the petitioners are likely to succeed in
getting relief provided the other condition laid down in section 397 (i.e. that to wind up the company would unfairly prejudice such members, but that otherwise the facts would justify the making of a winding-up order on just and equitable ground) is satisfied, even though the Delhi High Court held a contrary view in Suresh Kumar Sanghi v. Supreme
Motors Ltd.

SOME WHATSAPP TEXT MESSAGES THAT  WILL MAKE YOUR MOTHER'S DAY.

Tell your mother what she means to you through these heartfelt messages.

She's the classic attorney who never fails to bring you out of the chaos you create each time. No matter how much you argue with her, your mother has always been there to wipe away that tear, hold you close and love you anyway.

There is no way you can pay her back for all the sacrifices she's made for you. Though a 'thank you' may seem too small, it's important to let her know how special she is to you.

Below are 10 different messages for the different equations you may share with your mother this Mother's day.

1. If you are away from her:

All my life I kept wishing to grow older so I could finally move out and do my own thing. But now I wish I could just turn back time to be a child and hug my mom again.

I cried endlessly when you weren't there, but I promise that I won’t let tears mar the smiles that you’ve given me always.

Hoping to see you soon. Take care. Happy Mother's Day!

2. If you've been fighting with her:

Mom as I'm growing up each day, I've realised that I fight with you so much.

Even when all you want is for me to win the fight with the demon inside my head.

I love you mom. Happy Mother's Day!

3. If you're a chaotic teen:

You hear my pain when everyone else goes deaf

You always make smile when I think I can't.

You listen to my secrets and make them yours.

You give me a hug when I can't find my voice.

You wipe away the tears that the world makes me weep.

You mean more to me than you'll ever know.

You're my best friend and angel mother.

Happy Mother's Day Mom!

4. If you're sorry for what you did:

I'm sorry for the things I've done

That put you through so much, not fun

I'm sorry for bad times gone past,

Those times are regretful, not a blast

You are my mother, this much is true

also a friend who's there when I'm blue

I wish more times I would have listened to you,

To not mouth off and be so rude

It's taken me this long to see

That we've taken you for granted,

All of us, not just me.

You've always been there through good times and bad,

Never once have you left us, much like dad

Most of all I wanted to say,

We all love you, respect you, and thank you for all what you gave us.

We love you. A very Happy mother's day!

5. For your mother-in-law:

Thank you mom for the amazing person you brought up and I married.

One day I'm sure he/she will realise what you are to him/her.

I know it's hard, but I'll always try and love him/her the same way you did.

Wish you a very amazing Mother's Day and be prepared, we're showing up tonight.

We love you!

6. If you're a grown man

I'm a son to an amazing mother, a husband to a beautiful wife

and will be a parent of an enormously little person someday.

I know I never say it, but I want you to know that I'm what you made me, all the same.

I know there's nothing that can be done to pay your sacrifices but

I will try being a blend of you and dad. I will try being a father who is motherly.

Thank you Maa!

7. If you are a grown daughter

I know we don't talk much, I'm always involved or I act that I am,

But I want you to know that I miss you, your tactics and your cover ups.

Thank you for all the unwanted advises which now are starting to make sense,

You're are an incredible person and I want my children to think of me as the same,

And for that I'll have to be you. I can't promise, but I'll try.

Take care. I love you and I'll see you soon!

8. If you're a mother-to-be:

Before you were a Mom -

You slept as late as you wanted and never worried about how late you got into bed. You cleaned your house and never tripped over toys or forgot words to a lullaby.

You never worried about how poisonous can plants be or never thought about immunizations.

You had never been puked on - pooped on - spit on - chewed on, or peed on. You had complete control of your mind and My thoughts.

You never looked into teary eyes and cried, never got gloriously happy over a simple grin.

You never held a sleeping baby just because I didn't want to put it down. You never felt your heart break into a million pieces when you couldn't stop the hurt.

You never knew that something so small could affect your life so much.

You never knew that I could love someone so much. You never knew you would love being a Mom.

Now, your daughter is at the same stage you were. And will try being the best of you.

Thank you Mom, Love you always.

9. If she is growing old:

Your hands are now twisting with age and years of work,

Your hand now needs my gentle touch to rub away the hurt.

Your hands are more beautiful than anything can be.

Your hands are the reason I am me.

Happy Mother's Day mom!

10. Thank you mom!

Your arms were always open when I needed a hug. Your heart understood when I needed a friend. Your gentle eyes were stern when I needed a lesson. Your strength and love has guided me and gave me wings to fly. Happy Mother's Day!

Mothers hold their children's hands for a short while, but their hearts forever. Happy Mother's Day!

CA FINAL MAY & NOV 2016

Starting Series of Never Miss Questions(NMQs) for Every Paper of CA Final 2016 & Onwards.

CA Final IDT
Chapter Valuation
QUESTION:-
Surbhi Textile Ltd. (the assessee) is manufacturer of synthetic yarn, and is availing benefit of Sales Tax Incentive Scheme of State Government wherein it is allowed to retain 75% of sales tax amount collected from its customers and pay balance 25% to the State Government. The Central Excise Department has demanded inclusion of 75% portion of sales tax collected from customers and retained by the assessee, in transaction value of the goods whereas the assessee is contending that 75% portion of sales tax amount is an incentive to promote the industries and it has nothing to do with 'transaction value'. Examine with the help of a case law (if any), whether Surbhi Text ile Ltd. is liable to include 75% amount of sales tax in transaction value of the goods.
ANSWER:-
As per section 4(3)(d) of the Central Excise Act, 1944, transaction value, inter alia, excludes the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually payable on such goods. Hence, the amount of sales tax is excludible from the transaction value of goods only when such amount is actually paid/payable on such goods.
In the given case, since 75% of the sales tax amount collected from the customers had been retained by the assessee and not paid to the State Government (owing to a benefit under Sales Tax Incentive Scheme), same should form part of the transaction value of the goods.
The Supreme Court, in the case of CCEx v. Super Synotex (India) Ltd. 2014 (301) E.L.T. 273 (S.C.), has held that what is not payable/not to be paid as sales tax/VAT, should not be charged from the third party/customer, but if it is charged and is not payable or paid, it should not be excluded From the transaction value. Hence, unless the sales tax is actually paid to the Sales Tax Department of the State Government, no benefit towards excise duty can be given under the concept of "transaction value" i.e., it is not excludible.
Thus, Surbhi Textile Ltd. is liable to include 75% of the sales tax retained by it, in terms of the
Sales Tax Incentive Scheme, in transaction value of goods. Further, this view has also been endorsed in another decision of Supreme Court in CCE v.Maruti Suzuki India Limited 2014 (307) ELT 625 (SC).

QUESTION:-
How will the value of samples, which are distributed free as part of marketing strategy, or as
gifts or donations, be determined? Indicate whether your answer will remain same in case such samples are notified for MRP based assessment under section 4A of the Central Excise Act, 1944.
ANSWER:-
Circular No. 813/10/2005 CX dated 25.04.2005 clarifies that value of samples which are distributed free as part of marketing strategy, or as gifts or donations is determined under rule 4 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000.
In case such samples are notified for MRP based assessment under section 4A of the Central Excise Act, 1944, Circular No. 915/05/2010 CX dated 19.02.2010 clarifies that such goods would be assessed under rule 4 of the Valuation Rules by taking into consideration the deemed value under section 4A. Accordingly, the value for payment of excise duty for samples notified for MRP based assessment would be the value determined under section 4A for the similar goods (subject to adjustment for size and pack etc.).

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DONT REGRET

Never Think Of Time As Being Wasted (Everything Matters)
You might be worried about making the wrong choices when it comes to your future. You don’t want to waste a bunch of time traveling down the wrong path. When you think of every moment of your life as important you realize that time can never be wasted.

Even if you path you follow doesn’t work out your way you still gain:

Experience — Even if you spend months or years in a career you weren’t suited for, you’ve gained useful skills a long the way.
Connection — Every person you encounter a long the way has something valuable to offer. If you’re observant you’ll learn something new from everyone you meet.
Feedback — When things don’t work out your way on your initial attempt, you’ll have a better idea what to do next time.
Everything matters. The mistakes you made in the past might lead to your success in the future. When you have a high awareness level you’re able to glean useful insight from every moment.

Stay Motivated ASk here HOW ?

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