DAHOTRE &
DAHOTRE
CHARTERED ACCOUNTANTS
ABHAYKUMAR DAHOTRE CO-FOUNDER
LEGAL AID LEGAL CONSULTANTS AT YOUR SERVICE!
KEEPING THEM HOOKED TIPS ON EMPLOYEEENGAGEMENT DURING THE PANDEMIC
DIWAKAR DAHOTRE CO-FOUNDER
2020 VOL. 12 ISSUE 02
India's Most Promising Accounting & Tax Consultants to watch
ACCOUNTING AND FINANCE WITH A GLOBAL PERSPECTIVE
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umans have always known the importance of keeping records and we have been doing that since the time of our existence on earth. From clay tablets in Egypt to scribbling on the wall and stone tablets, we have kept track of things as diverse as time, produce, precious metals, agreements and so on. And we have been doing that in varied formats, languages and scripts to suit each individual case and convenience. Cut to the present where things have gone way beyond paper to the cloud with precious little remaining in physical forms. What though remains is the need to keep accounts, and the need to do that in ways and formats that people everywhere (remember the world’s gone FLAT!) can understand and relate to. Concurrent to the development of accounting was the development of finance, the one resource which could make or break most enterprises, if not empires worldwide. In fact, today if the word accounting gets uttered, it is always in the content of finance, and most in fact appear to be synonyms! With the world having gone flat and continents losing their bearing in the ocean of finance, the importance of a global outlook with respect to accounting and finance was felt even more than ever.
From the Enterprises are today global. So why not accounting and finance? Global is today local and so should accounting and finance be. With standardization having entered practically every aspect of life, keeping accounting and finance out of its ambit is asking for trouble. Finance is no more stagnant in places but travels wherever returns are good. In fact, it is a good way of providing employment and taxation to a number of countries where money travels. With so much travel of money, things can get complex if different accounting systems are employed countrywide. For precisely this reason, a global perspective in accounting and financing is a must. Bodies like World Trade Organisation (WTO) to name one, want the world to operate as one single entity and reduce overlaps. One of the biggest reasons for finance being expensive is local regulations which ignore global realities. The best example comes across when one tries to send money by wire-transfer from one country to another. Despite apparent standardization and a plethora of agreements, it takes over six hours for money to reach the other end! Imagine if it was an emergency, including a spike in some country’s stockmarkets. It would mean that part of the world which has money cannot invest on time where it is most needed! Bodies like WTO and many trade blocs today insist on uniform accounting and finance practices such that money travels with maximum ease and minimum cost, and does so fast. Overlaps, we know reduce the ability to generate income and exploit opportunities besides adding to the cost of finance. Finance is necessary for business of every kind, good or bad, and the only way to keep the lid on tight is by having uniformity and legislations like Foreign Accounts Tax Compliance Act (FATCA) in place. Imagine if there were multiple ways of accounting and financing like was the case with countries in Europe (France in particular). It led to double taxation, and then started the game of pilfering to save on taxes. In today’s world, even with a level of understanding and uniformity, money laundering is one of the most serious crimes doing the rounds. One way to keep check, if not eradicate it is by bring a global outlook to accounting and finance.
EDITOR The world is moving towards advanced systems which helps in multiple ways. No two countries can ever be alike in economic status, accounting and finance, and technical prowess. This holds true even in the case of advanced economies of the west and gets starker when comparisons are made across the globe. With huge gaps in technologies becoming crevices for criminal enterprise to develop, and strengthen their roots, there is no other way for the world but to have a global outlook with respect to accounting and finance - with special emphasis to make things easier for lesser endowed corners of the world. New developments like bitcoins make it imperative to remain in sync with the world. Money, the way we have always understood it was fiat money which was controlled and released by individual governments. Movement of money across borders thus were controlled, and in some cases quite effectively (even though at times industries and sectors within an economy was at the receiving end of such embargoes). With technology triumphing over authority, it was just a question of time before cryptocurrencies like bitcoins came to the fore which have completely done away with the concept of regulations. In the light of such sweeping and unexpected happenings, the only way the world can keep itself safe and productive is to come together, adopt a common system of accounting and finance, and help keep track of transactions. It would help greatly by keeping things in order. In our latest issue, we explore the importance of accounting and finance and companies that are striving to serve you the best. Have a fruitful read.
Sumita Sarkar sumita@insightssuccess.com
Cover Story
DAHOTRE & DAHOTRE
CHARTERED ACCOUNTANTS Quality Financial practices to Help Businesses Grow
10
CONTENTS
ARS Solutions Providing Expert Advice And Solutions On Taxation
M. B. Nayak & Co. Rendering Quality Services Efficiently
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28 CXO Expert Insight Tax reforms and how to implement them
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ARTICLES
18
32
Legal Aid Legal Consultants At Your Service!
Keeping them Hooked Tips on Employee-engagement during the Pandemic
Editor-in-Chief Sumita Sarkar sales@insightssuccess.com
Managing Editor Abhishaj Sajeev
DECEMBER, 2020
Assisting Editors Darshan Parmar
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INDIA’S MOST PROMISING
ACCOUNTING & TAX CONSULTANTS TO WATCH
Company Name
Management
Brief
ARS Solutions arssolutions.co.in
Abhishek Rajan Singh Founder
ARS Solutions is an Indian technology and performance based accounting, tax return e-filing and financial planning solutions provider with simplicity.
Ashok Dhingra Associates (ADA) adalegal.com
Ashok Dhingra & Sonia Gupta, Founders
Ashok Dhingra Associates(ADA) is a professional services firm offering wide range of services under GST, erstwhile indirect taxes, customs and trade including export controls and sanctions, and regulatory laws. Also provides adivory, training and investigation services under anticorruption laws and white-collar crimes to corporates.
Dahotre & Dahotre Chartered Accountants dahotreanddahotre.com
Abhaykumar Dahotre & Diwakar Dahotre, Founders
Dahtore & Dahtore CA specialize in providing financial, taxation, business advisory, audit and assurance services, dedicated to fulfill all finance and tax related compliances since 35+years.
Global Expert Tax & Accounting Solutions globaltaxsolutions.in
C. S. Narayana Saami, Practicing Indirect Taxation
Global Tax Solutions provides essential services such as advisory, arbitration and mediation, due diligence, commercial contracts, litigation, licensing, drafting and pleading.
H. H. Chimthanawala & Co. cahhchimthanawala.com
Mr. Habib Chimthanawala, Founder
H.H. Chimthanawala & Co. is a CA firm providing a wide range if accounts outsourcing, auditing, financial advisory, company secretarial, direct & indirect tax consulting and business advisory services to clients in diverse industries.
M.B. Nayak & Co. mayurnayak.com
Dr. CA. Mayur Nayak Founder
M.B. Nayak & Co. is a consultancy firm catering to Indian as well as foreign corporate firms and individuals in respect of service tax, statutory audits, transfer pricing audits, tax audits, tax consultancy (Indian and international), project financing, business structuring, cross border investments, etc.
N. B. Gupta & Associates nbguptaca.com
CA N. B. Gupta, Founder
N. B Gupta & Associates is a multi-disciplinary CA firm providing services in areas of taxation, audits and accounts, legal advisory, management consultancy, CMA data & feasibility reports, and much more.
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DAHOTRE &
DAHOTRE
CHARTERED ACCOUNTANTS Quality Financial Practices to Help Businesses Grow
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Our mission is to expand and continually improve utilizing quality practices and employee involvement in both the domestic and international markets that result in customer and employee satisfaction.
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ABHAYKUMAR DAHOTRE CO-FOUNDER
DIWAKAR DAHOTRE CO-FOUNDER
ABOUT THE C DIWAKAR DAHOTRE CA Diwakar Dahotre, a qualified Chartered Accountant has been practising since 1984 for 37 years. He completed education from Bhave High School and his graduation from Brihan Maharashtra College of Commerce, Pune. His professional journey began with a sole proprietorship firm, namely Diwakar B. Dahotre & Co. in Pune.
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rowth is an inevitable part of our lives. While some growth processes are natural and effortless like age and natural body physique, for some we have to put in extra efforts. Emotional, social, professional, educational and economic or financial growth are some essential aspects that need devout attention and sometimes expert guidance. As it is with the current way of living, financial growth is crucial. While we earn, we feel the need to financially secure our today as well as tomorrow when we will not be able to earn. This can be done with proper planning and goal setting. Since no two individuals have the same financial needs, it is better to plan under the guidance of experts like Dahotre & Dahotre Chartered Accountants (D&DCA). The firm methodically studies the requirements of the client with respect to managing the business, raising finances, timely complying under various laws, supporting their future vision and helping them out of the way, to help them align with the market. They guide their clients to set Long Term Goals and to achieve those through Short Term Objectives.
For tracking the client’s financial growth D&DCA regularly provides them with Interim Reports in writing or orally wherever required along with inspiration and guidance. “We educate them via Weekly Newsletters drafted by our Knowledge and Development Committee to keep them up to date with current affairs. This helps us educate them just like a mother educates her son. We educate them how to set routine controls, internal control methods, Budgeting and variances to control costs, pricing policies of the products and educate them about the difference between Tax Saving and Tax Evasion,” explains the Founder duo of Abhaykumar Dahotre and Diwakar Dahotre. The Company and its Services In the late 1980s, the co-founders and brothers started practising as CA through their individual firm. In 2003, they finally got together to form the current partnership firm and named it as Dahotre & Dahotre, Chartered Accountants. In 2019, the brothers extended the firm and warmly welcomed their family members, CA. Veena Abhaykumar Dahotre and CA Varun Abhaykumar Dahotre as
Associate Partners. The now strong team of over 50 people comprises of five key personnel: 1. CA Varun Abhaykumar Dahotre (Associate Partner) 2. CA Veena Abhaykumar Dahotre (Associate Partner) 3. Mr. Pramod Limaye (Chief Business Development Officer) 4. Mr. Pravin Kulkarni (Credit Management and Business Development Manager) 5. Mr. Gaurav Deshmukh (Information Technology and Systems Manager) D&DCA provides services in the fields of Accounts, Audit and Assurance, Direct Tax, Goods and Services Tax (GST) and other Indirect Taxes, Management Consultancy, Finances and Company Law. Door to door services, minimal waiting period and fast clearance of visitors, acting proactively by identifying needs of the client, applying latest technologies and systems, excellent services especially to those who were in distress, solving the socio-commercial issues of clients similar to their own family, has been the firm’s motto. “We Cultivated the culture from being
CO-FOUNDERS ABHAYKUMAR DAHOTRE CA Abhaykumar Dahotre was an exceptional student throughout his academics. He completed his primary education from N.M.V. High School (Nutan Marathi Vidyalay), and his postgraduation M.Com from Brihan Maharashtra College of Commerce, Pune. He scored 18th rank in graduation from Pune University. He cleared CA entrance, CA intermediate and CA final in the first attempt in a record time of two-and-a-half years at the age of 20. He had to wait for further three months to complete 21 years age to get membership of the ICAI. Immediately after getting a Certificate of Practice (COP) in May 1987, without wasting a single day, he started his practice and it has now been 33 years.
developed a Project Report software in-house and all the Project Financing related services are handled through it. “We currently operate on a thin client architecture along with VPN for those having a preference of work flexibility. We have a dedicated lease line for uninterrupted services,” adds CA Diwakar.
Upgraded Services with Latest Technology Foreseeing the advent of technology, the office of Dahotre & Dahotre Chartered Accountants started the process of going paperless as early as in 2011-12. The firm now boasts of various industrial scanners and printers. They also use a customized ERP which handles all their business processes starting from Client’s Master Data to Invoicing and Task Management.
The firm understands the necessity of data being protected at all times. For this, it is equipped with Disaster Recovery Servers capable of handling over 100 plus team members even amidst crises and Backup Servers with multiple layers of protection which has enabled us to provide much faster and safer services even amidst the COVID crisis without a 0.01% data loss. It is also using Microsoft 365 ecosystem for its mail servers and Microsoft Teams for internal communication and meetings during COVID-19.
The systems and ERP provide the clients with automated task updates via various communication channels (WhatsApp, Message, E-mail) on a real-time basis keeping them updated, always. Compliance and accounting services are taken care of, by outsourced software. The firm has
This combination has made D&DCA a stronger player to fight the present COVID situation with 95% of its team capacity flawlessly working from various locations in India and providing a much better client experience. Adopting technology early-on also helped the firm to cope up with the
digitisation of tax returns/tax, saved lots of labour, time and brought perfection in submissions. “From our point of view, there are two facets to this digitisation. One is that it has helped us to reduce human resources almost by 50% and thereby the HR challenges linked to it. Second is that lots of efforts were put on educating the human resource with the use of new techniques, software, machines and systems. A decade ago, all the filings and processing were
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We have strong documentation with respect to mandates, visit reports, MIS, timesheets which help us build our brand.
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Person Driven to a Process Driven Firm and implemented Standard Operating Procedures (SOP) and policies. We have defined a strong hierarchical organisation structure for relevant and appropriate authority and responsibility as per the Job descriptions for all positions,” Says CA Abhaykumar.
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We have been a support pillar to our clients during their tough times. It wouldn’t be wrong to conclude that, we help businesses grow as we grow and vice versa.
INDIA’S
MOST PROMISING
ACCOUNTING & TAX CONSULTANTS TO WATCH
done manually thereby increasing the probability of mistakes. Whether digitisation is a boon or a bane depends upon your style of working or organisational culture. If you are alert, systematic and tech-savvy then the digitisation will be enjoyable and effective,” shares CA Diwakar. Managing Money and Tax During the Pandemic The co-founders assert that the main thing which they have noticed in this changing dramatic scenario of a pandemic is that now one will only survive if one opts for digitisation/computerisation. A big challenge is that human resource and companies both must be equipped with the best quality infrastructure, internet facility, anti-virus software and continual training and awareness programmes. To sail these rough waters, the duo suggests the companies and individuals maintain the quality of work and take some learnings from the present situation and plan future events. They need to be more disciplined when it comes to financial management and build and maintain a back-up plan. The members of a company should act as each other’s support system and the leaders should boost the morale of their resources. To handle the constrained cash flow during this period, their suggestion is to first survive this pandemic by lowering down unnecessary costs and thrive until the market outlook changes. “We will always suggest keeping a simple formula in mind for effective Financial Management (Provisioning + Reserves = When Times are Good). Break down all annual costs (includes taxes) into monthly costs and further into daily costs and make a daily provision of these costs,” explains CA Abhaykumar.
They also suggest educating human resource, vendors and customers for reorganisation and changes happening within the organisation. Educating the stakeholders is the best medicine to sail through this pandemic. Redraft credit policies with vendors and the customers and wage policy with the human resource for the survival of all three pillars of the business. Take the bankers into confidence and exploit the government’s Covid packages for survival. Consider Keyman Insurance Policies for Safety of Key Personnel. Last but not least as Ratan Tata said: “This year is about Survival and not about making profits.” In the years to come, Dahotre & Dahotre Chartered Accountants are looking forward to upgrading the company to the international standards and expanding to new verticals like International Taxation, Business Process Management, Internal Audits, Information System Audits. They are also considering to open branches to serve better locally, develop fullfledged IT department within the
organisation and circulate a monthly magazine to the clients to educate and update their knowledge in this field. Realising Their Parents’ Dream It was their father’s dream to make Diwakar and Abhaykumar Chartered Accountants. On the other hand, their mother did not leave a single stone unturned in their cultural development. Her saying was that a single cultured person can improve the life of at least four people in the society. To fulfil his dream, since childhood, their father used to take them along at different CA offices to imbibe the importance of owning a business. Their organisational set up always brought an intrigue within the young boys. These visits acted as a stimulus in their mind, pushing them to study hard and work harder to make their father’s dream true and serve society on the other hand.
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Legal Aid
18 | DECEMBER 2020
www.insightssuccess.in
Legal
Consultants At Your Service!
I
n our daily routine, we consult with family, friends, colleagues, etc. on various matters. As humans, we have a tendency of taking a second opinion from someone close. Knowingly or unknowingly, consultation has become a huge part of our lives. There are times when we can’t make the right decision or we are not thinking sound. At such times, this second opinion matters the most. Similarly, in a business environment, we make numerous decisions each day. Making sound decisions single-handedly regarding various matters is not quite possible. Here, the role of consultants comes into the picture. There are consultants for carious matters in the business industry like, financial consultants, investment advisors, legal consultants, etc.
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2020 DECEMBER | 19
Legal consultants allow businesses to make the correct legal decisions. They provide consultation regarding all aspects of the business that include legalities in it. Legal issues are something that all of us like to avoid because they can get tricky and out of control. The services provided by legal consultants are highly valuable to any business organization. Even a small legal mistake can prove to be a big hassle for the business. There are various services that legal consultants provide. Here is an industry-wise breakdown of services that they provide: Corporate Law Legal consultants attend general body meetings, shareholder meetings, board meetings etc. to make sure that all the decisions being made are within the law. Drafting and negotiations of contracts or agreements are also done by legal consultants. They help implementing a legal structure on the level of domestic sales and distribution channels, foreign sales and distribution channels, purchasing from domestic and foreign markets, etc. They keep all the clients’ departments informed and updated about the applicable regulations and legal information for the company to be able to operate in a sound legal way. Labour Law and Industrial Relations Legal consultant services include Labour Law and Industry Relations Consultancy services. At the level of the Human Resource Department, all the administrative documents are legally reviewed and improvements are made. Facilities like legal inspections of all kinds – applications, documents, trade union activities, etc. are available. Services also include any arrangement of legal situation of employees. They also provide assistance in settling possible disputes between employees and the company in compliance with the legal laws. Legal representation of any kind is offered by the legal consultants. Additional support is also given to the partners and executive managers of the company and their
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families in cases of accident, surveillance, labour accidents and other extraordinary cases. Industrial and Manufacturing The industrial and manufacturing sector is large and most of the players face a similar kind of challenge. Legal consultants help anticipate and effectively deal with any operational, project or transaction issues. With their experience of consulting various businesses, they can help you avoid some expected losses or problems. They will give you insight into the issues that you may encounter and ways of how they can be tackled. From the market intelligence and legal know-how they have gained through their work, their advice is practical, legal and commercially viable. International Legal Services and Cross-Practice Services Some legal consultants have foreign law offices which act in cooperation with each other. Such legal consultants or consultancies have the eligibility to provide effective and cost saving legal services. Their services will be useful for companies that have business proceedings or clients in foreign land. Banking and Finance With the ever changing market conditions, each person or organization needs advice regarding the best investments, approaches, new developments, etc. A team of legal consultants provides information in relation to the full spectrum of financial products like acquisition and mergers, assets management, financing for projects, etc. They provide a complete service to firms covering the entire financing needs of clients from small loans to large financing. Regular counseling regarding the latest banking laws and regulations to take clients through business turmoil is done. -Shreevarshita Gupta
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ARS SOLUTIONS Providing Expert Advice And Solutions On Taxation
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ccounting and Taxation are an integral part of our professional life, whatever be our role - a business, an entrepreneur or an employee. There have been multiple moving and ambiguous parts of taxation. They always challenge people involved in the taxation process, both consultants and clients. For ever-evolving rules and regulations, those involved in taxation need to quickly learn and adapt. With each passing tax year, there is a demand for consultants who strive for excellence and proactively work to stay ahead. While many view the dynamic nature as a deterrent, some like Abhishek Ranjan Singh, get inspired by the problem-solving opportunity in the industry. This very nature motivated him to start his firm, ARS Solutions to offer differentiated value to clients. Expert Solutions for All Tax Challenges A professional consultant managing the accounting and taxation firm ARS Solutions, Mr Singh’s professional career began while pursuing the Industrial Accounting course after completing his Bachelor of Commerce (B.Com.) and Master of Arts (M.A.) in Economics. Initially, he worked with reputed CA firms in Mumbai and Navi Mumbai to further develop his skills
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and knowledge in a real-life business environment.
accounting and taxation software to deliver better results for its clients.
In 2008, he founded ARS Solutions and has scaled it into a well-established group of competent and certified professionals. While growing the business, he continued to enhance his professional credentials. He completed the entire process to be an authorized and certified TRP of Income Tax Department of India, and a registered GST Practitioner of Department of Goods and Services Tax, India. He was also certified to be ECRP of Election Commission of India and registered financial advisor of The Association of Mutual Funds in India (AMFI) and Fund's India.
ARS Solutions started offering tax return e-filing as soon it was rolled out. In the beginning, it was tough to have clients trust the online processes. Their main concern was about the security of their sensitive and confidential financial data. The increasing rate of cybercrime did not help either. As we know, data is the new oil of the 21st century. Since the firm comprises authorized and certified professionals by the Income-tax department of India, it does follow various regulatory compliances. That helped the firm win clients’ trust. “We use latest technology tools to process and store data securely. We also ensure to be easily accessible for addressing clients’ concern”, adds Mr Singh.
ARS Solutions offers services for Accounting, Tax Consulting, Tax Returns e-filing and Financial Planning Solutions. It is a performance-based and technology-enabled firm. In 2015, the firm was shortlisted to be among the “25 Most Promising Accounting and Tax Consultants” in India by “Consultants Review” editorial board. Technology - the Enabler Technology has been one of the key enablers for ARS Solutions. The team has leveraged digital technology to make its business processes more efficient and team members more productive. The firm uses the latest
The continued efforts of tax authorities to make taxation processes more secure, more transparent, more fearless and faster have been a tremendous support. As a result, the ITR assessment that earlier used to be completed in years, is now completed within a few weeks or a month. Planning for Growth, Even in Adverse Conditions Mr Singh believes that tax return filing is not merely an obligation. When one files the tax returns, one creates a
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INDIA’S
MOST PROMISING
ACCOUNTING & TAX CONSULTANTS TO WATCH
financial record with the Income Tax department. The firm’s objective is to enable clients to have a well-thoughtout financial plan without much taxation worries. Accordingly, it also monitors implementation of the plan and tracks its progress to stay focused on clients’ financial goals and changing situation. If there is any significant change in the client's situation, it adjusts the goals and strategies of the financial and taxation plan. For the current and future tax seasons, Mr Singh strongly recommends digitizing all documents, opting for online tax consultancy, choosing efiling and e-verification, and preferring online payment. Choosing these options ensures multiple key advantages in any situation e.g. more accurate, more secure and more easily accessible information. Also, there are no constraints due to work time and place.
Abhishek Ranjan Singh
Upgrade on the Cards Team ARS Solutions believes in constant up-gradation of skills, knowledge and business practices to seize new opportunities. In the new normal, digital technology will play a huge role. So, they plan to invest more in technology to serve remotely, to secure data, and to create more value for the clients.
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Our di erentiated value is simplicity in our business processes.
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“Earlier some of our clients liked to complete taxation work in person, sitting across the table. However, due to the current pandemic, they are compelled to choose online services. They are finding these services super helpful, thanks to government’s relentless support and encouragement,” asserts Mr Singh.
Managing Director & Founder
2020 DECEMBER | 23
Tax
reforms
AND how to implement them - Ashok Dhingra and Sonia Gupta
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hings as certain as death and taxes, can be more firmly believ’d” was first written by Daniel Defoe in 1726 before more famous similar quote by Benjamin Franklin in a letter to Jean-Baptiste Le Roy in 1789. Of course, death and taxes are certain, but both must be as much painless as is possible. Globally, governments depend upon taxes to fund day to day functioning. Fair realisation of taxes at bare minimum costs is key to performance of governments in running not only administration but also welfare schemes. Citizens can see their tax money at work in every walk of life. Seamless and effortless administration of taxes is the
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objective of every government. With demographic and technological changes happening at fast pace, continued tax reforms and ease of paying taxes by subjects is a continued process, implementation of which is most challenging task for any tax administration. India has federal structure and written constitution under which taxes are levied by Central and State Governments. On account of multiplicity of taxes, taxpayers have to pay taxes to multiple authorities and ensure multiple cumbersome compliances. At the same time on account of revenue bias, complex tax laws casting heavy compliance burden on taxpayers and tax evasion by rogue elements, large volume of
tax litigation is ongoing, putting a heavy burden on tax administration and courts. Tax laws are enforced in India by respective administrative bodies working under the Ministry of Finance at Central Government i.e., direct taxes by Central Board of Direct Taxes (CBDT) and indirect taxes by Central Board of Indirect Taxes and Customs (CBIC). Similarly, state taxes are enforced by officers of finance ministry of respective state administrations. Both CBDT and CBIC have specialised all India cadre service officers for administration of respective tax laws seamlessly at field level. Happiness index of
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Expert Insight
ASHOK DHINGRA Senior Partner Ashok Dhingra Associates | Attorneys at Law Practice Group Leader:
White Collar Crimes, Investigations and Regulatory Group Ashok is attorney having unique advantage of working on both sides of table. Ashok has worked for more than 22 ½ years with Indian Customs and over 15 years with Big4 Consulting firms like Ernst & Young, KPMG and law firms Khaitan & Co. and J. Sagar Associates before setting up Ashok Dhingra Associates in 2014 along with Sonia Gupta. Ashok has assisted clients in conducting audits and investigations under FCPA, anticorruption laws, investigations of wrongdoing or fraud or ethical violations by management or employees of MNCs. He also assisted clients in making selfdisclosure to authorities. He advises clients in data security, privacy, retention, encryption and movement across jurisdictions. Ashok has assisted clients in investigation and adjudication under anti money laundering and black money laws.
–ABOUT THE AUTHORS –
SONIA GUPTA Managing Partner Ashok Dhingra Associates | Attorneys at Law Practice Group Leader: Custom and Trade Group Goods and Services Tax Group Sonia is chartered accountant and attorney, primarily focuses on Customs and Trade Laws including Export/ Import Controls and Sanctions; Foreign Trade Policy and Regulatory Laws, providing both advisory and litigation services to clients. She assists clients under customs issues such as classification and rate of Duty under Customs Tariff; Country of Origin Rules; investigation by Special Valuation Branch of Customs (SVB) to determine arms’ length price in case of transaction with Associated Enterprises; etc. Sonia advises clients on Export/ Import Policy and Sanctions under Foreign Trade Policy and other regulatory laws.
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2020 DECEMBER | 25
taxpayers and ease of doing business is direct result of objectiveness and fairness of such field officers. Inspite of honest intentions of governments to bring in tax reforms, the objective is lost in case field officers responsible for enforcement of tax reforms are not cooperative and do not follow law in letter and spirit. Where compliance to tax reforms is dependent upon technological platforms, which are either not fully geared to meet demands of new system or not able to keep pace with changes in law, it frustrates and defeat objectives of such tax reforms. Introduction of Goods and Services Tax (GST) on July 1, 2017 at Central and State level to create a unified market, improving ease of doing business, expand base of tax payers and address issue of tax evasion has been marquee project of Government of India. Notification of draft GST laws, holding wider consultations with industry bodies and stakeholders, bringing in political consensus leading to amendment of constitution and creation of constitutional body of GST Council comprising of central and state representatives was a long drawn and time- consuming process to pan India roll out of GST. However, unpreparedness of Common Portal for compliances and frequent technical glitches and changes in GST laws are embodiments of best intentions and hazy implementation. All this has led
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to dissatisfaction among taxpayers and advisors. This is coupled with unscrupulous elements exploiting system for tax evasion, leading to raids and denial of tax credits to taxpayers which is vital for effective functioning of GST system. Hence, even after more than three years of coming in force, GST law is far from settled. Mostly tax officers work with a revenue bias and pass orders ignoring clear provisions of law or judicial pronouncements both at assessment or departmental appellate levels, causing heavy burden on Appellate Tribunals, High Courts and Supreme Court. There is no administrative accountability of tax officers for passing adverse orders in clear defiance of law and interpretation thereof by courts. Even CBDT and CBIC turn a blind eye to such conduct of officers and at times issue circulars with a revenue bias. In many cases, tribunal and courts have passed strictures against tax officers, without any tangible response by tax administrators. Largely, departmental officers even do not respond to representations of taxpayers with impunity. Even escalation of such matters to commissioners and chief commissioners do not yield much result in violation of Citizens Charters adopted both by CBDT and CBIC. Cases of refunds to eligible taxpayers are not decided by officers
of CBIC, if they cannot reject the same, though this problem is not there in CBDT. This is one of the major grounds of resentment of taxpayers and defeat spirit of any tax reform and implementation thereof. It is high time that government and tax administrators put some mechanism in place to monitor objective implementation of tax reforms by officers. As is the practice, pre-enactment wider consultation with all stakeholders should be continued and their concerns addressed prior to implementing such tax reforms. Enough time should be given to industry and technological platforms to be built and extensive training of tax officers should be conducted. Government should also bring in administrative mechanism for addressing issue of defiance of law and interpretation by courts, which has become DNA of tax officers, by bringing in accountability and compliance to Citizen Charters. Unless administrative accountability and culture of following law in letter and spirit by tax officers is brought in, whole purpose of tax reforms will have no meaning and taxes will continue to be painful fate accompli, even if both taxes and death are inevitable and death is largely painless.
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M. B. Nayak & Co.: Rendering Quality Services Efficiently
W
ith a vision to create a value based organization which generates value for all its stakeholders, namely, partners, clients, government, staff and society, Dr. CA. Mayur B. Nayak PhD., B.com, FCA., founded the M. B. Nayak & Co., a firm of Chartered Accountants practicing for the past 33 years. Dr. Nayak is an author, poet, speaker, motivational trainer, counsellor, runner, and a spiritual healer. He has done Doctorate in the field of International Taxation with GAAR and Transfer Pricing as special focus areas. Clearing B.Com. in First Class from Mumbai University, he is a Rank Holder in C.A. final examination as well. Becoming a CA was his college days dream as he wanted to be a professional who can serve both the Nation and Clients. Besides he also wanted to have a respectful earning and a good standard of living. “I think CA Profession has given me much more than what I had desired,” says Dr. CA. Mayur B. Nayak. Here’s more about his firm.
Pricing Audit, and Tax Audit. The firm also undertakes Internal Audit, FEMA Audit, Due Diligence Audit and implementation and/or documentation of the process and Risk Control Matrix as mandated under the Companies Act, 2013 regarding Internal Financial Control System of a company. (iii) Financial Services & Business Advisory The firm is engaged in the Financial Analysis for leading banks in India for over 20 years. Other areas serviced by this vertical include “Project Financing and Venture Capital Funding”. The firm also undertakes consultancy in respect of business restructuring as well as turn around strategies. How do you utilize technology to help facilitate the services. What software do you implement/recommend. In our profession, service to client is very crucial. Client is always expecting some value addition from our part. Therefore, it is very important for us to satisfy the client in terms of providing services.
Tell us about your firm and its services. Established in August 1987, M. B. Nayak & Co. renders a range of services to its clients in three different verticals, each headed by competent professionals: (I) Consulting Practice Under this vertical the Firm renders consultancy services in the field of International Taxation, Foreign Exchange Management Act (FEMA), Cross Border Structuring/Investments and Transfer Pricing, to Indian Companies, Multi National Enterprises (MNEs) and high net worth individuals. (ii) Audit and Assurance PracticeThe firm provides services in respect of Statutory Audit under the Companies Act, Bombay Public Trust Act, etc., Transfer
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With the technological changes, we can arrange the meeting with client on virtual platform. With the applications like Google Meet, Microsoft teams etc. we can meet with the client virtually and provide our services. We can save a lot of time and energy as we need not visit to client office. We use multiple software such as Genius, Winman as well utility of the Income-tax Department. Each one has its own advantage and disadvantage. As such we do not recommend any particular software. How do you help companies/people align their financial growth goals while keeping up with taxes? How do you help them plan and track their growth? We always encourage our clients to focus on toplines and cash flows. Taxes are paid on profits. My clients do not
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A Multi-faceted Personality Dr. CA. Mayur B. Nayak held the office of President of the Bombay Chartered Accountants’ Society (BCAS) for the year 2010-11. He was Chairman of the Human Resources Committee for four years. Presently, he is Chairman of the International Taxation Committee. He is a Trustee of the BCAS Foundation. He has authored a monograph on “Permanent Establishment” published by the Chamber of Tax Consultants (CTC), Mumbai. He has co-authored a book titled “Mauritius- International Business and Tax Strategies” published in 2002, a publication entitled “Tax and Treaty Guide” published by BCAS and another publication entitled “Comprehensive Handbook on Non-Resident Taxation & FEMA”.
CA. Sanket Narolkar
He contributes to the monthly column “FEMA Update” in the “Income Tax Review” published by CITC.He has jointly contributed to the branch report on “Source and Residence: New Configuration of their Principles” on behalf of India Branch, discussed at the 2005 Buenos Aires Congress of the International Fiscal Association and published in the CAHIER. He has presented papers, led group discussions and delivered talks at various professional forums including BCAS, CTC, IFA, FIT, ICAI, Chambers of Commerce, as well as public sector banks and contributed articles to various professional journals and newspapers. He is an accredited trainer in “Spiritual Healing”; conducting regular courses on “Parashakti Chikitsa” with the blessings of Dr. Harish Joshi and Shri Shri Maha Avatar Babaji. He is Chairman of the MABAP Foundation. He is Chairman of the MILT Charitable Trust, Bombay. He has served as a trainer at the Chinmaya Mission, conducting workshops on the module of “Emotional Transformation” for the benefit of fellow humans.
Dr. CA. Mayur Nayak www.insightssuccess.in
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My clients have always appreciated our conservative approach. We firmly believe that any business model which is not profitable post taxes is not good. We do advise and encourage clients to take advantage of all legitimate tax incentives offered by the Government to remain competitive. We believe that if the mental energy is used in the right direction for right purposes it leads to exponential growth. Tax returns/tax systems have gone digital. What are your views regarding it. How easy or complex has the whole system become as compared to a decade ago? Tax returns and systems are more simplified as compared to that a decade ago. Tax returns can now be filed with more ease and convenience by sitting in any part of the world.We still remember that, a decade ago, we used to prepare the tax returns by filling up the forms manually, attaching all the supporting documents and stand in a long queue in the income tax department till late hours to file the returns. Moreover, we had to chase the client to get the signature on the returns before filing it. Now with Digital signature and OTP system it can be filed more quickly and we need not chase to the clients. Further, the returns are processed in very less time and refunds are issued to the assessees. Previously, we had to visit the income tax departments to follow up for the refund for the client which was very time consuming. Overall, with the digitization, the complex system has become easy and assessee friendly. The current and the following tax seasons are different due to the pandemic. What are your suggestions to companies/individuals on how to be prepared? We are faced with unprecedented challenge of the Pandemic, and therefore our response also has to be unique and unprecedented. Working from Home is a new normal. Digitization of documents is a must. Audits are also done remotely. Documents are verified remotely. Use of technology is playing and will further play an important role in days to come.
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haggle paying taxes, as see the benefits of being compliant and honest tax payers. Instead of wasting their time and energy on litigative or aggressive tax planning, they focus attention on their businesses and make more money and derive satisfaction.
We are big enough to specialize and small enough to personalize.
New methods for staff supervision and efficiency measurement will evolve. Luckily, Indian Government is two steps ahead in implementing E-filing, E-Assessment/ Appeals and now Faceless Assessments etc. Individuals need to acquire the new skill sets of being computer/technology savvy and companies need to hire skilled employees who can deliver the job without being physically supervised. Please share your ideas/plans for the near future. The year 2020 has been an unusual year with several challenges. Pandemic Covid has shattered many businesses and changed the outlook towards life and work. Survival in 2020 is the key to success. Thanks to technology, people have come closer despite physical distancing. Digitization of economy and life are new normal for everyone. Services of accountancy, audit and taxation are becoming sophisticated. Structures based on tax avoidance will no longer hold good. Businesses need to reconcile to pay their taxes honestly and on time. The dividing line between tax avoidance and tax evasion is getting blurred. Any structure perfectly legal in form will not be accepted unless there is an underlying substance. Compliances are on a rise, which will put further pressure on the profession. Availability of skilled staff will continue to be a challenge. The accounting firms need to invest more in staff training, especially in technical areas and soft skills up-gradation, infrastructure, and practice management software to remain competitive and relevant so as to increase the service standards eventually. For this, they will have to increase their fees substantially. The firms also need to factor in rising expectations from government, banks and financial institutions, clients and various other stakeholders. Appropriate safeguards will have to be built in to withstand risks which are part and parcel of any professional endeavor. We are committed to make Indian Multinationals valid and effective players on the world stage.
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Tips on
EMPLOYEE-EN
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Keeping them Hooked
NGAGEMENT during the PANDEMIC I
f there’s one thing that the Covid-19 pandemic has done, it’s to change the very meaning and scope of the word ‘employment’. What earlier meant being at the physical beck and call of an employer has today moved online to mean being there, and at the same time, not being there. Yes, the pandemic has affected us, but thankfully, technology has stepped in and filled the gaps in ways unthinkable. Some of them being novel and yet to be fully deciphered and appreciated. That said, not all of the new ideas of work-from-home work in favour of both employer and employee. From experience, we have filtered down a handful of tips which could help close the employee-employer divide that seems to have developed in these pandemic times. This is certainly not to say that the entire order is bad but to get the best of a remote way of working, remembering these tips could greatly help enhance productivity be it now or in the future while keeping relations positive and positively exuberant. 1. Daily face to face meetings are a must From the time that humans first became sociable beings to the present, if there’s one way of staying in touch productively and positively, it’s through in-person face-to-face meetings. This is one of the best ways to know the situation, the person and the matter at hand. Also, this is one of the best ways to communicate the important and at times painful matters which cannot be done in crowded surroundings. Working alone at home is anything but easy beyond a point given the loneliness and boredom that creeps in and the lack of colleagues who
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invariably are the best stress-busters. In the absence of the same, one-to-one meetings should be encouraged, be it between superiors and subordinates or between colleagues. These one-to-one in the present situation may take the form of online meets, the most effective, given the situation. 2. Incorporate in-person meetings where the same is feasible The pandemic has put paid to the idea of in-person meetings given the danger of the virus spreading. That said, one cannot carry on endlessly without meeting the person at the other end, be it a senior, a junior or a colleague. Chemistry is what forms when people meet in person, and if the same is positive, can result in taking organizational work to newer heights. In the present situation, and so too in the case of companies that have declared “work from home” as a norm henceforth, there should be set procedures to meet office folks at certain times, like once or twice a month for a certain number of hours. One’s performance vis-à-vis those in the organization, whether one’s work is appreciated or otherwise, what additional needs to be done etc are issues that can best be clarified in an office-type setting. Also, meeting colleagues in person gives out all the grapevine news as to who does what, something one may need to know to exist and grow in the organization. 3. Online meeting can be quite tiring so structure them for maximum effect Employee engagement during the pandemic and even after that for those who have declared permanent “WFH” means either phone calls with/ without video or similar chats in chat-rooms with or without other participants. Constantly peering at a screen in a semi-darkened room can strain the eyes. The best of internet connection does not guarantee uptime all the while which means one is left staring at a screen which has frozen or has to continuously strain to listen to either gibberish or voices at very low volumes. Doing that for the better part of a day means that in time the participant feels quite drained out. It’s precisely for these reasons that in-person online meetings or those in conference formats should be held only with a firm agenda in mind with a clear understanding that in the event of technology playing truant, they either end the meeting right there or move to voice mode. 4. Routine work (like accounts, finance, HR etc) should be encouraged to be tech-based. Office work typically is either strategy-driven which involves decision making, taking charge and leading from the front or are activities that emanate from these decisions like meetings to know of status, follow-ups, taking charge
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of production/ service deliveries, accounting and finance, human-resource issues and so on. The former cannot be framed into any “system” given the very nature of the activities therein and what it may entail. The latter can and should always be system-driven to the extent possible because in doing so, time and efforts can be saved and outcomes can be made to be result-oriented, open and clear. Accountability across the organization shall thus go up. As far as employee-engagement goes, a systems approach brings a lot more clarity without the need for constant supervision and reporting, issues which rankle most folks in organizations, besides reducing productivity. 5. HR-related issues should move to a self-service model Human resource in any organization is it’s most dynamic and also the reason things get dynamited if not handled with care and alacrity. What employment engagement in the times of Covid-19 pandemic has taught us is that when things move far away in physical terms and travel is an unnecessary pain, the organization ought to give the employee some leeway when it comes to entering personal details like leave applications, bills, queries etc. Ideally, these should be put through a cloud-based system so that they become equally accessible everywhere. In doing so, the patience of all is saved which leads to lesser conflict and as a consequence, higher productivity with a feeling of quite a satisfaction. 6. If need be, employers should conduct employee engagement surveys Detailed employee engagement surveys when filled from the convenience and seclusion of one’s homes invariably reflect one’s most profound of feelings and understanding. This, if done at regular intervals, could reveal what the existing system of employee engagement lacks and also ways to fix it. Sometimes the feedback could be purely personal in which case, a detailed one-to-one with the employee/ associate could change things for the better, both for the organization as also the person filling in the details. There’s a lot more to be done when a pandemic hits the world of employment as can be seen in the present situation. Being a completely new experience, humanity is yet to understand its full impact and device course correction strategies. For a start, the above steps may help. These invariably will be added to with time given that the pandemic has changed not only the dynamics of employment but also our understanding of industries, organizations, productivity, earnings and so on.
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