THECHARTERED ACCOUNTANT
THECHARTERED ACCOUNTANT
THECHARTERED ACCOUNTANT
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EDiTORiaL BOaRD VOiCE<br />
EDITOR CA. JAYDEEP NARENDRA SHAH,<br />
President<br />
JOINT EDITOR CA. SUBODH KUMAR AGRAWAL,<br />
Vice-President<br />
MEMBERS CA. ANUJ GOYAL<br />
CA. K. RAGHU<br />
CA. MAHESH P. SARDA<br />
CA. M. DEVARAJA REDDY<br />
CA. NAVEEN N. D. GUPTA<br />
CA. NILESH S. VIKAMSEY<br />
CA. P. RAJENDRA KUMAR<br />
CA. RAJKUMAR S. ADUKIA<br />
CA. RAVI HOLANI<br />
CA. SUMANTRA GUHA<br />
CA. V. MURALI<br />
SHRI PRITHVI HALDEA<br />
SMT. USHA SANKAR<br />
SECRETARY NADEEM AHMED<br />
ICAI EDITORIAL TEAM SUSANTA K. SAHU<br />
DR. N. K. RANJAN<br />
NIMISHA SINGH<br />
THE INSTITUTE OF CHARTERED <strong>ACCOUNTANT</strong>S OF INDIA<br />
ICAI Bhawan, Post Box No.7100, Indraprastha Marg,<br />
New Delhi-110002, Tel: +91 (11) 39893989.<br />
E-mail: icaiho@icai.org, Website: www.icai.org<br />
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Please contact: The Journal Section at ICAI Bhawan, A-29, Sector-<br />
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EDITORIAL SUPPORT, DESIGN, ADVERTISEMENT & MARKETING<br />
SPENTA MULTIMEDIA<br />
Aaron Rodrigues, Robert George, Nilesh Juvalekar, Ganesh<br />
Waradkar & Anand Dhuri.<br />
MUMBAI: Spenta Multimedia, Peninsula Spenta, Mathuradas Mill<br />
Compound, N. M. Joshi Marg, Lower Parel. Mumbai-400013.<br />
Tel: +91 (22) 24811022/24811025, Telefax: -91(22) 24811021.<br />
DELHI: No.7, 1st Floor, Nizamuddin (West) Market.<br />
New Delhi-110013. Tel: +91 (11) 4669 9999.<br />
BENGALURU: Old No. 583, New No. 9, Sri Manjunatha Krupa,<br />
80 Feet Road, 3rd Cross, Opp. Koramangala Police Station,<br />
Bengaluru-560095. Tel: +91(80) 4161 8966/77.<br />
KOLKATA: 206-Jodhpur Park, Kolkata - 700068. Tel: +91(33) 2473<br />
5896. Telefax: +91(33) 2413 7973.<br />
CHENNAI: AKS Pooja Complex, 2nd Floor, Old No: 203 New No:<br />
154, R. K. Mutt Road, Mandevelli (Next to Jagan Mohan Clinic),<br />
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Tel.: +91 9676666691.<br />
ICAI RESERVES THE RIGHT TO REJECT ADVERTISEMENTS<br />
Printed and published by Vijay Kapur on behalf of The Institute<br />
of Chartered Accountants of India (ICAI)<br />
Editor – CA. Jaydeep Narendra Shah<br />
Published at ICAI Bhawan, P. O. Box No. 7100, Indraprastha Marg,<br />
New Delhi - 110 002 and printed at Spenta Multimedia. Peninsula<br />
Spenta, Mathuradas Mill Compound. N. M. Joshi Marg, Lower<br />
Parel, Mumbai - 400013<br />
The views and opinions expressed or implied in THE CHARTERED<br />
<strong>ACCOUNTANT</strong> are those of the authors and do not necessarily<br />
reflect those of ICAI. Unsolicited articles and transparencies are<br />
sent in at the owner’s risk and the publisher accepts no liability for<br />
loss or damage. Material in this publication may not be reproduced,<br />
whether in part or in whole, without the consent of ICAI.<br />
DISCLAIMER: The ICAI is not in any way responsible for the result of<br />
any action taken on the basis of the advertisement published in the<br />
Journal. The members, however, may bear in mind the provision of<br />
the Code of Ethics while responding to the advertisements.<br />
TOTAL CIRCULATION: 2,17,924<br />
Total No. of Pages: 156 including Covers<br />
Cover image, Inside images and Graphics: www.dreamstime.com<br />
4<br />
THE CHARTERED <strong>ACCOUNTANT</strong> April 2012<br />
CONTENTS<br />
1463 Editorial<br />
1466 From The President<br />
MEMBERS<br />
1472 Branch Audit of Public<br />
Sector Banks for the year<br />
2011-12: An Update<br />
1474 Photographs<br />
1584 Opinion<br />
� Accounting for<br />
payments made in<br />
respect of land pending<br />
execution of conveyance<br />
deeds and borrowing<br />
costs incurred in respect<br />
thereof<br />
1592 Vision 2030<br />
1607 Classifieds<br />
UPDaTES<br />
Legal Update<br />
1564 Legal Decisions<br />
1588 International Update<br />
1590 Accountant’s Browser<br />
1591 Economic Update<br />
VOLUME 60 NO. 10 APRIL 2012<br />
THE CHARTERED <strong>ACCOUNTANT</strong> R100<br />
VOLUME 60 NO. 10 APRIL 2012 R1 0 0<br />
THE CHARTERED<br />
<strong>ACCOUNTANT</strong><br />
THE INSTITUTE OF CHARTERED <strong>ACCOUNTANT</strong>S OF INDIA<br />
SET UP BY AN ACT OF PARLIAMENT<br />
Chartered accountants should account for<br />
and work for ensuring transparency and good<br />
accounting practices in whatever capacity they<br />
work. They can be instrumental in ‘sustained growth<br />
story’ of India…ICAI, as the premier accounting<br />
body, will help in the smooth transition to the new<br />
tax regime in the coming years …(and)… strive<br />
to constantly adhere to the higher standards of<br />
credibility, reliability and accountability.<br />
Shri Pranab Mukherjee<br />
Union Finance Minister<br />
(during International Conference in Chennai organised by ICAI<br />
on 6th January, 2012)<br />
1464<br />
1574 Circulars and Notifications<br />
iCai NEWS<br />
1594 Draft Chartered Accountants (Amendment) Regulations, 2012<br />
1602 Setting up of Branches of WICASA, CICASA and EICASA<br />
1603 Request to Contribute Articles - Journal on Management Accounting<br />
and Business Finance<br />
1604 Committee on Management Accounting Invites Applications for Visiting/<br />
Regular Faculty for Certificate Course in Master in Business Finance<br />
(MBF) At New Delhi, Mumbai, Chennai, and Kolkata<br />
1604 Invitation for Empanelment of Resource Persons for Investor Awareness<br />
Programmes<br />
1605 Invitation to Contribute Articles for E-Newsletter - Prudence<br />
1606 For the Attention of the Members: Expert Panel for Addressing Queries<br />
Arising During Bank Branch Audits for Year Ending 31st March 2012<br />
1606 Faculty Required: Post-Qualification Course on Information Systems<br />
Audit, Workshops, Conferences and Seminars in IT-related areas<br />
1607 New Publications<br />
JOURNAL
1465<br />
iN THiS iSSUE...<br />
1478 Salient Features of the Finance Bill, 2012: Direct Taxes<br />
– CA. Ved Jain<br />
1502 Union Budget - An Economic Perspective<br />
– CA. T. N. Manoharan<br />
1507 Budget 2012-13: Treading a Middle Path<br />
– Dr. Pratap Ranjan Jena<br />
1511 Union Budget 2012-13 – Key Tax Proposals in Respect<br />
of International Taxation<br />
– Committee on International Taxation of the ICAI<br />
1517 Procedural Aspects of Finance Bill, 2012 – Direct Taxes<br />
– CA. T. Banusekar<br />
1525 The Finance Bill, 2012 – Proposed Amendments In<br />
Provisions Relating to Various Deductions<br />
– CA. Barun Kumar Ghosh<br />
TECH fOR yOU<br />
1608 eCommerce and Avenues for CAs<br />
– CA. A. Rafeq<br />
volume 60 no. 10 april 2012 R100<br />
THE CHARTERED<br />
<strong>ACCOUNTANT</strong><br />
THE INSTITUTE OF CHARTERED <strong>ACCOUNTANT</strong>S OF INDIA<br />
SET Up by AN ACT OF pARlIAmENT<br />
Union BUdget 2012-13<br />
1528 Shift from Profit-Linked Deduction to Investment-<br />
Linked Incentive<br />
– CA.(Dr.) Girish Ahuja and Dr. Ravi Gupta<br />
BaCKPaGE<br />
1613 Cross Word 070<br />
Smile Please<br />
JOURNAL<br />
1531 Amendments Relating to the Capital Gains Taxation<br />
– CA. Milin Mehta<br />
1535 Union Budget 2012: Extension of TDS and TCS<br />
Provisions to more Areas<br />
– T. N. Pandey<br />
1538 Service Tax Perspective of Finance Bill, 2012<br />
– CA. Ashok Batra<br />
1547 Negative List of Services — A Paradigm Shift in<br />
Service Tax Law<br />
– V. S. Datey<br />
1552 Impact of Budget 2012-13 on Central Excise<br />
– CA. V. Raghuraman and CA. J. S. Bhanu Murthy<br />
1560 Finance Bill-2012: An Analysis of Major Amendments<br />
in Penal Provision under Direct Taxes<br />
– CA. Sudhir Halakhandi<br />
THE CHARTERED <strong>ACCOUNTANT</strong> April 2012 5
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