Archive for the ‘Frequently Asked Questions (FAQs)’ Category


Frequently Asked Tax Questions by Qualified Foreign Investors (QFIs)*

Press release, dated 26-12-2012

Q.1. What is Permanent Account Number (PAN) Card?

Ans: Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued by the Income Tax Department of India to any “person” to facilitate him in making tax payments filing, returns and claiming refunds. The number, along with other relevant details, is printed on a card called PAN card.

Q.2. Are QFIs required to obtain PAN Card to comply with tax norms in India?

Ans: Yes. Under the current provisions, QFIs would be required to obtain PAN card. The process of obtaining a PAN card is simple, and user friendly. An application can be filed by a foreign investor online and the process can be completed within 2 to 3 weeks.

Q.3. What are the benefits to QFIs of having a PAN Card?

Ans: QFIs who have a PAN card would be eligible for tax deduction at source (TDS) as per the rates applicable in the Double Taxation Avoidance Treaty (DTAA) of the country of which the QFI is a resident, if it is more beneficial than the rate prescribed under the domestic law. If a QFI has not obtained a PAN card it would be subject to a higher rate of tax deduction under Section 206 AA of Income Tax Act, 1961.

Q.4. How QFIs can apply for a PAN Card?

Ans: In order to facilitate QFIs in applying for a PAN as well as to comply with Know your Customer (KYC) norms of the Securities Exchange Board of India (SEBI), a combined form (FORM 49 AA) has been notified by the Central Board of Direct Tax (CBDT). Form 49 AA and detailed instructions regarding how it is to be filled up are available at :

http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62form49 aa.pdf

http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/Not58_2011.pdf

Q.5. Can QFIs make an On-line application for PAN Card?

Ans: Yes, application for allotment of PAN can be made online through the Internet. Further, requests for changes or correction in PAN data or request for reprint of PAN card (for an existing PAN) may also be made through the Internet. Online application can be made either through the portal of National Securities Depository Limited (NSDL) (https://tin.tin.nsdl.com/pan/index.html) or portal of UTI Infrastructure Technology and Services Limited (UTITSL) (http://www.utitsl.co.in/utitsl/uti/newapp/new-pan-application.jsp). Supporting documents required to be submitted by QFIs to obtain PAN card are listed at the following link:

http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/Not58_2011.pdf

Q.6. What are the attestation requirements for a QFI for obtaining PAN card?

Ans: For a QFI who is an individual, Rule 114 of the Income Tax Rules, 1961 read with Form No. 49AA, requires a copy of the passport to be filed (without any attestation), this will be taken as both proof of identity and proof of residence. For QFIs other than individuals, the process requires filing of copy of certificate of registration duly attested by an “apostille” or at the Indian Embassy in that country.

In order to meet the know you client (KYC) requirements as prescribed by Securities Exchange Board of India (SEBI), the list of documents to be submitted by a QFI for KYC are available at:

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1340167306959.pdf

Q.7. What are the tax related responsibilities of Qualified Depository Participants (QDPs)?

Ans: In order to facilitate investments by QFIs, the QDPs have been assigned the responsibility to act as a single point of contact for QFIs for all purposes including tax. For tax purposes, a QDP will facilitate the QFI to obtain a PAN card. QDPs will be responsible for any withholding tax in India before making remittance to QFIs. QDPs will also be treated as a representative assessee/agent of the QFI. For this purpose QDPs would be required to submit a declaration that they have no objection to being treated as a representative assessee/agent of QFI. A QDP may ensure that the broker engaged by it for undertaking QFI transactions deducts and deposits tax at source failing which the QDP should deduct and deposit the tax on such transactions.

Q.8. Can QFIs claim refund from Income Tax Department in India?

Ans: Yes. QFIs can claim refund from Income Tax Department for which the QFI would have to file its return of Income in India for that year.

Q.9. Can a QFI carry forward losses over the years?

Ans: Yes. QFIs are allowed to carry forward losses over years provided the QFI files its return of income declaring the loss for the relevant year within the stipulated time limits.

Q.10. Whether profits earned by QFI from their investments in Indian securities market would be treated as Capital Gain or business income?

Ans: As per the Income-Tax Act, 1961, whether the profits earned from transaction in securities would be capital gains or business income will depend on facts and circumstances of each case like the number and frequency of transactions etc. Please refer to circular No.4/2007 dated 15/6/2007 issued by the Central Board of Direct Taxes.

Q.11. Whether QDPs should compute tax deduction at source (withholding tax) on QFI income for one settlement period on settlement basis or on transaction basis?

Ans: Currently, settlement on Indian stock exchanges is done at the end of every trading day. Tax deducted at source under the Income-tax Act, 1961 is to be deposited by the seventh day succeeding the end of each month. The withholding tax on QFI income will be computed on settlement basis and not on transaction basis since the stock broker would credit the net proceeds of all transactions to QFIs on settlement basis for one settlement period.

Q.12. For determining the tax deducted at source (withholding tax) liability, can QDPs set off losses of QFIs against profits earned on monthly basis in a given year?

Ans: As per TDS provisions, the deductor has to deduct tax either at time of payment of the amount or at time of credit of such amount (whichever is earlier). Therefore, any loss of current year available at such time of deducting tax would be eligible to be set off against the sum payable and the TDS shall be effected on net basis. However, TDS once effected cannot reduced by the deductor even if there is loss in subsequent transaction.

Example, in a given year, a QFI makes three settlements, it earns profit of Rs. 200 on day one settlement, incurs a loss of Rs. 250 on day two settlement and earns profit of Rs. 100 on day three settlement. The TDS would be deducted on credit of net profit of Rs 200 whereas, no TDS shall be effected against profit of Rs. 100 as at time of credit of Rs. 100 a loss of Rs. 250 is available for set off and net basis there is no amount chargeable to tax.

Q.13. For the purpose of computing tax deducted at source (withholding tax) Can QDPs set off in the case of QFIs, the profits earned in one security against losses earned in another security during a given year?

Ans: Yes. For computing tax deducted at source (withholding tax) QDPs can set off profits earned by the QFI in one security against losses earned in another security as long as these securities are subject to Securities Transaction Tax (STT). Therefore, this would not be applicable in case of QFI investments in bonds as bond transaction are not subject to Securities Transaction Tax Such setting off for computing tax deduction at source would therefore be permissible only in the case of listed securities and mutual fund Units and redemption by mutual funds as these are subject to STT. The set off would again be subject to the general principle that an earlier loss of current year can be set off against subsequent profit which is credited or paid to the QFI. However, if tax deduction at source (TDS) has already been effected for a particular credit or payment, it cannot be reduced by subsequent loss. A QFI is, however, eligible to claim refund of excess amount of tax deducted at source (withholding) by filing a return of income for the relevant year.

Q.14. For the purpose of computing tax deducted at source (TDS), can QFIs Set off of profits earned by a QFI in the current year against losses incurred in previous years?

Ans: No, A QDP cannot set off losses of a previous year of a QFI against profits earned in the current year by the QFI while computing the tax liability for deduction at source, which would therefore be based only on the profits of the year. However, QFIs can themselves set off their profits earned in the current year against losses incurred in previous years. For the purpose, the QFI would need to file its return of income within the time limits stipulated in the Income-tax Act, 1961. For this purpose, QFIs need to file return for the relevant year within the time limits stipulated in the Income-tax Act, 1961.

Q.15. What would be the applicable rates of taxation if a QFI comes from a jurisdiction with which India has a Double Taxation Avoidance Agreement (DTAA) as against one which comes from a non-DTAA Jurisdiction?

Ans: The applicable rates of taxation in the case of investment from a country will be at the rate provided in the Income-tax Act or the rate provided in the Double Taxation Avoidance Agreement, whichever is more beneficial to the investors.

Q.16. Whether the capital gains arising on sale of shares are computed in Indian currency or in other currency?

Ans: The capital gains arising on sale of shares shall be computed by converting the cost of acquisition, expenditure incurred and full value of consideration in the same currency, as was initially utilized for purchase of shares and the gains so computed shall be reconverted in India currency.

Q.17. Whether DTAA provisions will apply while deducting tax at source?

Ans: Yes. Also see answer to question No. 15.

Q.18. Will the QDPs be held responsible for withholding taxes against profits on mutual fund investments by QFI’s?

Ans: Income from investment from mutual fund may arise by way of distribution of profits by the fund or by way of redemption by the fund or by way of sale of units of the fund. In case of distribution of profits by the mutual fund, the mutual fund itself pays tax on distribution of profits. In case of sale of units of the fund, the QDP would be required to withhold tax if the buyer of the mutual fund units has not deducted tax. In case of redemption of units by the fund or sale of units of the fund, the QDP would be required to withhold the tax.

Q.19. If the QFI is no longer the client of the QDP, then can the QDP be called upon to make good the shortfall in tax and liable to interest and penalty having acted in bonafide and good faith?

Ans: QDP, being a deductor, shall be liable for any short deduction or non-deduction of tax even after the QFI ceases to be the client of QDP.

Q.20. What are the deductible expenses that may be incurred by QFI for purchase & sale of shares and Mutual Funds?

Ans: The deductibility of expenses would depend on the fact that whether the income on the sale of shares is treated as business income or capital gains. In general if the income is treated as capital gains expenses like brokerage fees would be allowed.

Q.21. Whether QDP should treat residence certificate as a sufficient proof of residence and beneficial ownership of the shares in India by the QFI?

Ans: Prima facie, the Tax Residency Certificate is evidence of residence in a particular country and the QDP may rely on such a certificate.

However, as per Explanatory Memorandum to the Finance Bill, 2012, the amended section 90 and 90A of the Income-tax Act makes submission of Tax Residency Certificate containing prescribed particular, as a necessary but not sufficient condition for availing benefits of the tax treaties.

Q.22. Whether the QDP is required to obtain an Income Tax Order under Section 195(2) of the Act for determining the income component (capital gains) on the sale of shares?

Ans: Central Board of Direct Taxes (CBDT) Circular No. 4/2009 dated 29/06/2009, clarifies that the term ‘payer’ also means a remitter. As the QDP is making the payment of the income to the QFI, the QDP could be considered as a ‘payer’ Under Section 195(2) of the Act, if any person responsible for paying any sum chargeable under the Act to a non-resident, considers that the whole of such sum would not be income chargeable in the case of the recipient, he may make an application to the Assessing Officer(AO) to determine the appropriate proportion to such sum on which tax is to be deducted (TDS).

The requirement of obtaining CA Certificate is only in the context of remittance of money outside India. It is not in the context of TDS liability. The QDP is custodian of all data in respect of transactions on which income has arisen to a QFI. It will also maintain the QFI account, wherein the QFIs’ income is determined. Therefore, the QDP is supposed to deduct tax on the basis of sum chargeable to tax. In normal situations such as working out the capital gains on a transaction, there would not be any difficulty and QDP can itself determine the amount chargeable to tax and deduct tax thereon or take help of Chartered Accountant in this behalf. However, in case there is complexity in determining such income the QDP should approach the Assessing Officer for determination u/s 195(2). Even for other deductees, it is not mandatory that in each and every case, they should obtain 195(2) order before deducting TDS. However, in case a complex issue, it is advisable to do so. This is because the liability to deduct proper taxes remains on the deductor (i.e. QDP).

Q.23. For the purpose of computing tax deduction at source (withholding tax), what is the proof and declaration that the QDP can rely upon for allowing the full time benefit of a DTAA to a QFI?

Ans: There is no standard set of documents on the basis of which the DTAA treaty benefit can be said to have been rightly allowed. It depends on the facts of each case. The treaty benefit is to be claimed by the person concerned before it can be allowed. For this purpose, the QDP should obtain the Tax Residency Certificate from the QFI.

Q.24. Having relied on the documentations and given the treaty benefits, if later the same is held not allowable by the tax officer, can the QDP be held responsible and called upon to pay for any shortfall in tax, interest and penalties?

Ans: The liability to deduct and pay proper taxes remains that of the QDP as a deductor. Therefore, for any shortfall in tax QDP can be held responsible. The responsibility remains both for non-deduction or short deduction of tax if it is found that the treaty benefit have been incorrectly claimed or considered.

Q.25. What is the maximum number of years in which an assessment can be done or reopened in case of TDS returns filed by the QDP?

Ans: As the payment would be made to QFIs, who are non-residents, the Act does not prescribe any time limit for scrutiny of transaction for TDS purposes under section 201 of the Act.

Q.26. Can the QDP be held responsible for withholding of tax at source in case of a QFI on sale considerations received under an open offer or buy back of shares where the purchaser of the shares is responsible for withholding tax and complying with the TDS filings under the Act?

Ans: Under the Income-tax Act, any person responsible for paying to a non-resident (not being a company) or to a foreign company, any sum chargeable under the provisions of the Act, has to deduct tax at the time of credit of such income to the account of the payee or at the time of payment, whichever is earlier. The responsibility of tax deducted at source by the QDP in the case of sale consideration received by a QFI on account of an open offer or a buyback of shares would depend upon the facts of the case. In case the purchaser of shares is crediting the sum to the account of the QFIs or making payment to QFIs, the purchaser would be required to deduct the tax. However, if the QDP is crediting the sum to the account of the QFIs or making payment to the QFIs, the QDP would be required to deduct the tax. Please also refer to question no.

_________________________

* Disclaimer: These FAQs are prepared with a view to help QFI applicants to get generic understanding of the tax framework. These FAQs cannot be used in a court of law to interpret any circular, rules, regulations, statutes etc., one way or the other.

Source: Income Tax Department- India.

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Frequently Asked Questions (FAQs) on Direct Entry to Chartered Accountancy Course

1. Who is eligible to register directly for Chartered Accountancy Course without passing Common Proficiency Test (CPT)?

The following categories of students are eligible to register directly for Intermediate (Integrated Professional Competence) Course without passing the Common Proficiency Test (CPT):-

  1. Graduates or Post Graduates from Commerce stream having secured in aggregate a minimum of 55% of the total marks or its equivalent grade or other Graduates or Post Graduates having secured in aggregate a minimum of 60% of the total marks or its equivalent grade in the examination conducted by any recognised University (including Open University).
  1. Candidates who have passed the Intermediate level examination or its equivalent examination by whatever name called conducted by The Institute of Cost Accountants of India or by The Institute of Company Secretaries of India.

2. Who is considered to be a Commerce stream student?

A student shall be deemed to be of Commerce stream, if he has passed Graduation/Post Graduation examination by studying any three papers of 100 marks each out of Accounting, Auditing, Mercantile Laws, Corporate Laws, Economics, Management (including Financial Management), Taxation (including Direct Tax Laws and Indirect Tax Laws), Costing, Business Administration or Management Accounting.

3. If a Graduate/ Post Graduate student studies subjects which are not considered for awarding grades and only required to pass such examination, whether such subjects/ papers marks shall be considered in calculating the aggregate percentage of marks?

As per the scheme of education in any University, if a student is required to secure only pass marks and for which no special credit is given, such marks shall be ignored while calculating prescribed percentage of marks for determining the prescribed percentage of marks for admission to the chartered accountancy course under Direct Entry scheme.

4. Will a Graduate/ Post Graduate student who has secured in aggregate a minimum of 54.4% of the total marks in Commerce Stream or 59.4% in other stream be eligible to register under direct entry scheme of chartered accountancy course?

No. As per the rounding off provision, any fraction of half or more shall be rounded up to the next whole number. Accordingly, if a student secures a minimum 54.4% or 59.4% of the total marks in Commerce stream or in other stream respectively shall not be eligible to register under direct entry scheme of chartered accountancy course.

5. Whether students who are pursuing Graduation Course can register for Intermediate (Integrated Professional Competence) Course?

Yes, students who are pursuing the Final year of Graduation Course are eligible for provisional registration to the Intermediate (Integrated Professional Competence) Course. Such students would be required to submit satisfactory proof of having passed the graduation examination with the specified percentage of marks within six months, from the date of appearance in the final year graduation examination (i.e. from the day of commencement of the examination). During the period of provisional registration, a student can undergo and complete Information Technology Training (ITT) and Orientation Course. It is clarified that in such cases the practical training shall commence only on becoming a Graduate with specified percentage of marks. Such students shall be eligible for appearing in the Intermediate (Integrated Professional Competence) Examination on completion of nine months of practical training. If such students fail to produce the proof within the aforesaid period, provisional registration shall stand cancelled and the registration and other fees, as the case may be, paid shall not be refunded/ adjusted and no credit shall also be given for the theoretical education undergone.

6. When can directly registered student be eligible to join for practical training?

Graduates or Post Graduates from Commerce or other streams, with specified percentage of marks shall be eligible for admission to three years articled training, on completion of –

(a) Information Technology Training;

and

(b) Orientation Course

Students who have passed Intermediate level examination of The Institute of Cost Accountants of India or The Institute of Company Secretaries of India shall be eligible for admission to three years articled training on –

(a) Passing of Group I or Both Groups of Intermediate (Integrated Professional Competence) Examination; or Accounting Technician level Examination;

(b) Completion of Information Technology Training; and

(c) Completion of Orientation Course

However, the Council, in order to mitigate the hardships that might be faced by the students registering under Direct Entry Scheme to Chartered Accountancy Course upto 30th September, 2012 has relaxed the requirement of completion of ITT and Orientation Course upto 31st March, 2013, as a one-time dispensation.

7. Whether a student who registers during August/ September 2012 will be eligible to appear in the May, 2013 Intermediate (IPC) Examination?

As per the requirement of the Regulations, a student registered under Graduate/ Post Graduate scheme can appear in the Intermediate (IPC) Examination on completion of nine months of practical training (including study course for a period of eight months commencing from the date of registration to the Course) and student registered for the Intermediate (IPC) Course after passing Intermediate level examination of the Institute of Cost Accountants of India/ the Institute of Company Secretaries of India can appear in the examination after undergoing a study course for a period of eight months commencing from the date of registration to the Course.

However, the Council, in order to mitigate the hardships that might be faced by the students registering under Direct Entry Scheme to Chartered Accountancy Course upto 30th September, 2012, has relaxed the eligibility criteria as a one-time dispensation, as under, so as to be eligible to appear in the Intermediate (Integrated Professional Competence) Examination to be held in May, 2013.

  • Students registered for the articled training till 30th September, 2012 are required to complete Orientation Course and Information Technology Training (ITT) latest by 31st March, 2013 instead of before registration for practical training.
  • Such students shall be eligible to appear in the Intermediate (IPC) Examination to be held in May, 2013 by completing 7 months of articled training and study course concurrently, instead of 9 months of articled training and 8 months of study course respectively.
  • Students registered for Intermediate (IPC) Course by passing Intermediate level examination of The Institute of Cost Accountants of India/ The Institute of Company Secretaries of India shall have to undergo 7 months of study course instead of 8 months as prescribed under Regulations, so as to become eligible to appear in the May, 2013 Examination”.

Accordingly, students who register under Direct Entry Scheme to Chartered Accountancy Course upto 30th September, 2012 shall be eligible to appear in the Intermediate (IPC) Examination to be held in May, 2013 as per the above decision of the Council, as a one-time dispensation.

8. Whether students who are registered for Common Proficiency Course (CPC) are also Graduates/ Post Graduates can register for Intermediate (Integrated Professional Competence) Course and commence practical training?

Yes, existing CPT students who have secured either 55% or 60% of the total marks or its equivalent grade in Graduation/ Post Graduation either in Commerce stream or in other streams can commence articled training on converting to Intermediate (IPC) Course by paying the following fees:

Particulars

Fee in

(Rs.)

Fee in

(US$)

Conversion Fee

500

30

Registration fee for Both Groups

9000

550

Articled Registration Fee

2000

120

ATC (Optional ) Fee

1000

60

 

Payable for undergoing the course:

Orientation Course fee

3000

180

IT Training Fee

4000

250

9. Whether students who are registered for Integrated Professional Competence Course (IPCC) and have not passed any of the Groups but fulfill the requirement of prescribed percentage of marks can commence practical training?

Yes. Graduates or Post Graduates with specified percentage of marks shall be eligible for admission to three years articled training, on completion of –

(a) Information Technology Training;

and

(b) Orientation Course

However, the Council, in order to mitigate the hardships that might be faced by the students registering under Direct Entry Scheme to Chartered Accountancy Course upto 30th September, 2012, has relaxed the requirement of completion of ITT and Orientation Course upto 31st March, 2013, as a one-time dispensation.

Such students are required to pay the following fee for converting to Direct Entry Scheme of Chartered Accountancy Course:

Particulars

Fee in

(Rs.)

Fee in

(US$)

Conversion Fee

500

30

Registration fee for Both Groups OR

9000

550

Registration fee for 1st Group

8000

500

ATC (Optional ) Fee

1000

60

 

Payable for joining the Articled training:

Articled Registration Fee

2000

120

 

Payable for undergoing the course:

Orientation Course fee

3000

180

IT Training Fee

4000

250

10. Whether a student who is registered for Integrated Professional Competence Course (IPCC) and has passed Group II and fulfills the requirement of prescribed percentage of marks can commence practical training?

Yes. Existing students of IPCC who have passed Group II, can convert under direct entry scheme of chartered accountancy course and commence articled training on registration for Group I, if not registered earlier and complete –

(a) Information Technology Training;

and

(b) Orientation Course

However, the Council, in order to mitigate the hardships that might be faced by the students registering under Direct Entry Scheme to Chartered Accountancy Course upto 30th September, 2012 relaxed the requirement of completion of ITT and Orientation Course upto 31st March, 2013, as a one-time dispensation.

Students who have not registered for both groups earlier shall be required to register for Group I by paying the following fee:

Particulars

Fee in

(Rs.)

Fee in

(US$)

Conversion Fee

500

30

Registration fee for 1st Group, if not paid earlier
1st Group

7000

430

Articled Registration Fee, if not paid earlier

2000

120

ATC (Optional ) Fee

1000

60

 

Payable for undergoing the course:

Orientation Course fee

3000

180

IT Training Fee

4000

250

11. Whether students of erstwhile Intermediate/ Professional Education (Course-II) who have not passed either of the groups can switch over to Intermediate (Integrated Professional Competence) Course and commence practical training?

Yes. Students who have registered earlier for Intermediate/ Professional Education (Course – II) and have not yet switched over to Integrated Professional Competence Course (IPCC) as per announcement dated 27th July, 2010 can switch over either to Direct Entry Scheme of Chartered Accountancy Course if they fulfill prescribed percentage of marks or to the existing route of Intermediate (IPC) Course by paying the applicable fee:

Student, who opts for direct entry scheme shall be eligible to appear in the Intermediate (IPC) examination on completion of nine months of articled training (including study course for a period of eight months which shall commence from the date of registration to the Course). Such student shall be required to pay the following fee:

Particulars

Fee in

(Rs.)

Fee in

(US$)

Conversion Fee (including Study Material)

500

30

ATC (Optional ) Fee

1000

60

Articled Registration Fee

2000

120

 

Payable for undergoing the IT Training, if not completed earlier:

 

IT Training Course Fee

4000

250

However, the Council, in order to mitigate the hardships that might be faced by the students registering under Direct Entry Scheme to Chartered Accountancy Course upto 30th September, 2012 as a one-time dispensation, has relaxed the requirement of completing of 9 months articled training (including concurrent 8 months study course) or 8 months study course period to 7 months so as to appear such students in May, 2013 Intermediate (IPC) Examination.

If a student opts for the existing route of Intermediate (IPC) Course, he shall be eligible to appear in the next available attempt of Intermediate (IPC) Examination on conversion to the Intermediate (IPC) Course and shall be eligible to commence articled training on passing either Group I or Both Groups of Intermediate (IPC) Examination. As per the decision of the Council, these students are exempted from undergoing study course.

Particulars

Fee in

(Rs.)

Fee in

(US$)

Conversion Fee (including Study Material)

500

30

ATC (Optional ) Fee

1000

60

 

Payable for undergoing the IT Training, if not completed earlier:

 

IT Training Fee

4000

250

12. Whether a student is required to fill separate form for undergoing Orientation Course and Information Technology Training (ITT)?

Yes. Students, who wish to commence practical training, may register for undergoing Orientation Course and Information Technology Training by submitting the prescribed form(s) which can be obtained from the concerned Regional Office or its Branches or a copy of the form can be downloaded from www.icai.org as well.

The Orientation Course is organized by the Regional Councils, Branches and Chapters of ICAI which would charge a separate fee of Rs. 3,000/-.

The 100 hours Information Technology Training can be undergone through Regional Councils and Branches of the ICAI which would charge a separate fee of Rs. 4,000/-.

13. Whether a student can opt for Accounting Technician Course (ATC) alongwith registration for Intermediate (Integrated Professional Competence) Course?

Yes. It is advisable to opt for Accounting Technician Course (ATC) alongwith registration for Intermediate (Integrated Professional Competence) Course.

14. Whether a student, who has completed 7 months of articled training in PCC and converted to IPCC but not passed any of the groups, can appear in the November, 2012 Intermediate (IPC) Examination on switching over to Intermediate (IPC) Course?

The eligibility requirement to appear in the Intermediate (IPC) Examination under Direct Entry Scheme is completion of 9 months of practical training. If a student, on converting to Intermediate (IPC) Course and re-joining for the remaining period of articled training under direct entry scheme, completes prescribed period of 9 months articled training on or before the last day of the month (i.e. 31st October, 2012) preceding the month in which the examination is to be held, such students can appear in the Intermediate (IPC) Examination to be held in November, 2012. Such students shall have to serve balance period of practical training. It may be noted that total period of articled training for PCC student is three and half years. Such students shall be required to pay the following fee for converting from PCC to Intermediate (IPC) Course:

Particulars

Fee in

(Rs.)

Fee in

(US$)

Conversion Fee (including Study Material)

500

30

ATC (Optional ) Fee

1000

60

 

Payable for undergoing the IT Training, if not completed earlier:

 

IT Training Fee

4000

250

15. Whether a student who has appeared in IPC Examination held in May, 2012 or earlier can convert and appear in the November, 2012 Intermediate (IPC) Examination?

No. such students, on conversion to direct entry scheme, shall be eligible to appear in the Intermediate (IPC) Examination only on completion of 9 months of practical training on or before the last day of the month preceding the month in which the examination is to be held.

However, the Council, in order to mitigate the hardships that might be faced by the students registering under Direct Entry Scheme to Chartered Accountancy Course upto 30th September, 2012 as a one-time dispensation, has relaxed the requirement of completing of 9 months articled training (including concurrent 8 months study course) to 7 months so as to appear such students in May, 2013 Intermediate (IPC) Examination.

16. Whether exiting CPT student instead of paying Conversion fee Rs. 500/-, can register afresh for Intermediate (IPC) Course on fulfilling the prescribed percentage of marks?

No, existing CPT students are mandatorily required to pay Rs. 500/- as conversion fee alongwith other prescribed fees applicable for converting to direct entry scheme of chartered accountancy course. The Conversion fee is levied to maintain and shift the data from CPT to Intermediate (IPC) Course. If existing CPT student applies as a fresh candidate under the direct entry scheme, such candidate’s registration may lead to delay in registration to the course and on identification of such instances, conversion fee will be recovered in due course from such candidate.

17. Whether a student who has registered for the CPT course by paying Rs.6000/- for appearing in the December, 2012 examination, can get any concession/ adjustment in conversion fee payable for Intermediate (IPC) Course?

No. Students who wish to shift from existing CPT to Intermediate (IPC) Course on fulfilling the prescribed percentage of marks shall be required to pay the following fee and no concession/ adjustment shall be allowed:

Particulars

Fee in

(Rs.)

Fee in

(US$)

Conversion Fee

500

30

Registration fee for Both Groups

9000

550

Articled Registration Fee

2000

120

ATC (Optional ) Fee

1000

60

 

Payable for undergoing the course:

Orientation Course fee

3000

180

IT Training Fee

4000

250

18. Can existing IPCC students who have applied for Intermediate (IPC) Examination to be held in November, 2012 convert to Intermediate (IPC) Course and commence articled training and also appear in the November, 2012 examination?

No. Students, who have applied for Intermediate (IPC) Examination to be held in November, 2012 can opt either to appear in the November, 2012 examination or commence articled training on converting to Intermediate (IPC) Course.

Students, who opt for joining articled training, shall be eligible to appear in the Intermediate (IPC) Examination only on completion of 9 months of practical training.

Further, the Council, in order to mitigate the hardships that might be faced by the students registering under Direct Entry Scheme to Chartered Accountancy Course upto 30th September, 2012, as a one-time dispensation, has relaxed the requirement of completing of 9 months articled training (including concurrent 8 months study course) to 7 months so as to appear such students in May, 2013 Intermediate (IPC) Examination.

19. In case student undergoes Information Technology Training (ITT) during the articled training period whether the same is treated as period actually served under articled training or is treated as leave period?

Student who undergo Information Technology Training (ITT) with the consent of the Principal during the articled training period is treated as period actually served under articled training as per Regulation 59(7) of the Chartered Accountants Regulations, 1988.

20. In case student undergoes Orientation Course during the articled training period whether the same is treated as period actually served under articled training or is treated as leave period?

Students who undergoes Orientation Course during the articled training period is treated as leave period.

21. What is the fee structure for fresh students to be registered for Intermediate (IPC) Course?

Students who fulfill the requirement of securing prescribed percentage of marks or students who have passed Intermediate level examination of the Institute of Cost Accountants of India or the Institute of Company Secretaries of India shall be required to pay the fee as given in Annexure ‘A’ for registering to the Intermediate (IPC) Course.

22. Whether students who have valid exemption obtained in Professional Competence Examination can carry forward and avail in the Intermediate (IPC) Examination?

Yes. Student who has valid/ unexpired exemption obtained in the Professional Competence Examination shall be carried forward to Intermediate (IPC) Examination for the remaining unexpired chances of exemption. Paper-wise comparison of PCC and Intermediate (IPC) Course is given below for availing exemption for the un-expired chance(s) on the basis of having secured a minimum of 60 percent marks.

PAPER-WISE EXEMPTION TO THE CANDIDATES APPEARING IN INTERMEDIATE (INTEGRATED PROFESSIONAL COMPETENCE) EXAMINATION FOR THE UN-EXPIRED CHANCE (S) ON THE BASIS OF HAVING SECURED A MINIMUM OF 60 PERCENT MARKS IN A PAPER IN THE EARLIER EXAMINATIONS

Papers of the Professional Competence Examination under Regulation 28C (3) of the Chartered Accountants Regulations, 1988

Paper-wise exemption in Intermediate (Integrated Professional Competence) Examination under Regulation 28D of the Chartered Accountants Regulations, 1988

Group I

Paper 1 : Advanced Accounting

 

Group I  Paper 1 : Accounting and

Group II Paper 5 : Advanced Accounting

Paper 2 : Auditing and Assurance Group II Paper 6 : Auditing and Assurance
Paper 3 : Law, Ethics and Communication Group I Paper 2 : Business Laws, Ethics and Communication
Group II

Paper 4 : Cost Accounting and Financial Management

 

Group I Paper 3 : Cost Accounting and Financial Management

Paper 5 : Taxation Group I Paper 4 : Taxation
Paper 6 : Information Technology and Strategic Management Group II Paper 7 : Information Technology and Strategic Management

23. Whether students who have passed one of the Groups in Intermediate/PE-II/ PCC Examination are exempted from appearing in the same Group in Intermediate (IPC) Course?

No. Students who have passed one of the groups in Intermediate/ Professional Education (Examination – II)/ Professional Competence Examination will get paper wise exemption (NOT Group wise Exemption) in Intermediate (Integrated Professional Competence) Examination and have to appear and pass remaining papers in Intermediate (IPC) Examination under ‘Unit Scheme’ as given under –

UNIT SCHEME UNDER Intermediate (IPC) Examination

Intermediate (IPC) Course

DETAILS OF PAPERS IN WHICH CANDIDATES ARE RE QUIRED TO APPEAR AND PASS IN ONE SITTING AS A UNIT CANDIDATE IN IPCE

STUDENTS WHO HAVE PASSED GROUP-I

 

(IN INTERMEDIATE EXAMIANTION UNDER PARAGRAPH 2A OF SCHEDULE ‘B’ OR PROFESSIONAL EDUCATION

(EXAMINATION– II OR PROFESSIONAL COMPETENCE EXAMINATION )

Student to pass Group I of

Intermediate (IPC) Course has to appear

Student to pass Group II of Intermediate (IPC) Course has to appear

Student to pass Both Groups of Intermediate (IPC) Course has to appear

UNIT – 4

Group I Paper 3 : Cost Accounting and Financial Management

Group I Paper 4 : Taxation

UNIT – 6

Group II Paper 7 : Information Technology and Strategic Management

UNIT – 8

Group I Paper 3 : Cost Accounting and Financial Management

Group I Paper 4 : Taxation

Group II Paper 7: Information Technology and Strategic Management

STUDENTS WHO HAVE PASSED GROUP-II

 

(IN INTERMEDIATE EXAMIANTION UNDER PARAGRAPH 2A OF SCHEDULE ‘B’ OR PROFESSIONAL EDUCATION

(EXAMINATION– II OR PROFESSIONAL COMPETENCE EXAMINATION)

Student to pass Group II of

Intermediate (IPC) Course has to appear

Student to pass Group I of

Intermediate (IPC) Course has to appear

Student to pass Both Groups of Intermediate (IPC) Course has to appear

UNIT – 5

Group II Paper 5 : Advanced Accounting

Group II Paper 6 : Auditing and Assurance

UNIT – 7

Group I Paper 1 : Accounting

Group I Paper 2 : Business Laws, Ethics and Communication

UNIT – 9

Group I Paper 1 :  Accounting

Group I Paper 2 : Business Laws, Ethics and Communication

Group II Paper 5 : Advanced Accounting

Group II Paper 6 : Auditing and Assurance

Click here to download Annexure ‘A’.

Click here to download the complete text of the above Frequently Asked Questions on Direct Entry to Chartered Accountancy Course in PDF Format. [Format: PDF], {No. of Pages: 12}, (Size: 99 KB).

Source: The Institute of Chartered Accountants of India.


The Direct Taxes Committee of ICAI in its endeavor to enable our members to e-file the income-tax returns easily, had requested the CPC to provide the Frequently Asked Questions (FAQ’s) on matters relating to e-filing, CPC and refund. In response to our request, the FAQ’s on E-filing of Income-tax Returns have been received as per following bifurcation. Please click on the links below to download the relevant FAQ.

Source: The Institute of Chartered Accountants of India.

 

 

 


Frequently Asked Questions on Verification of Marks:

Please note that this paper is merely an attempt to provide answers to questions on the subject, posed to us, by the candidates from time to time, to the extent possible and with reference to the extant scheme of examination. However, this compilation is neither exhaustive not does it purport to be a source of complete information on the subject. Hence, candidates are advised, in their own interest, to refer to the “Guidance Notes” supplied along with the examination application form, besides referring to the Chartered Accountants Regulations, 1988.

1. What is meant by verification of marks?

The process of verification of marks covers the following:

Checking:

  • Whether the answer book(s) compilation is complete
  • Whether any question or part thereof has remained unvalued
  • Whether there is any totaling error in any question or total marks on the cover page
  • Whether there is any discrepancy between the marks for each question and or/part thereof and marks for each question indicated on the cover page of the answer book
  • Whether the handwriting of the candidate in all the answer books is the same.

However, there is no provision for re-evaluation of the answer books.

2. What is the procedure for verification of marks?

A candidate can apply for verification, either physically in his own handwriting, or on-line from http://icaiexam.icai.org within a month from the date of declaration of results, giving specific details of the following along with the requisite fees:

  • Student Name
  • Student Registration No
  • Exam-IPCE/PCE/Final/CPT
  • Month and year of the exam
  • Roll No
  • Paper(s)/subjects to be verified
  • Address for communication

If the candidate makes a physical application, it must be in the handwriting of the candidate. If the candidate had appeared in Hindi medium, his/her application should be in Hindi.

Typewritten applications will not be entertained.

There is no standard format as such for such application. However, the application should be duly signed by the candidate.

3. Where should the physical application be sent?

The physical application for verification along with the fees should be sent so as to reach us within a period of one month from the date of the declaration of results, at the following address, by Speed Post or Registered Post:

The Additional Secretary, (Exams)

The Institute of Chartered Accountants of India

ICAI Bhawan

Indraprastha Marg

New Delhi 110 002

Do not send your application by courier/ordinary post. Please superscribe the envelope with the name of the exam, i.e. Final or PCE or IPCE as the case may be.

4. What is the fees for verification of marks?

  • For Final, PCE, IPCE/ATE/Units-Rs 100/- per paper subject to a maximum of Rs 400/- for all the papers of a group/both groups.
  • For CPT: Rs 200/-.
  • For Post qualification courses ISA, DIRM, ITL&WTO, MAC/TMC/CMC: Rs 500/-

5. What is the mode of payment of the verification fees?

In case you are submitting a physical application, verification fees is to be paid by way of a demand draft drawn in favour of “The Secretary, The Institute of Chartered Accountants of India” payable at New Delhi.

In case you are submitting your application on-line, you can make the pay the verification fees on-line by using debit/credit card either Master/Visa card.

6. Can I submit my application for verification of answer books, on-line?

Yes. The facility for submission of verification applications on-line, is available for candidates of CA Final, IPCE and PCE examinations. You can submit your applications from http://icaiexam.icai.org and also pay the verification on-line.

Detailed steps in this regard are given in the above mentioned website.

You will have to upload the scanned copy of your handwritten request.

However, there is no need to send the print-out of the on-line verification application by post.

Both options, i.e., manual as well as on-line, are open to you. You can choose to send your application manually along with the Demand Draft for the applicable fees, by registered post or speed post or submit your application on-line.

7. Is there any difference in the verification fees between on-line submission and physical submission of verification application?

No. The verification fees is the same, whether you submit your application on-line or send it physically.

8. I have already applied for inspection/certified copies of my evaluated answer books. Can the same application be treated as an application for verification also? Can I apply for verification after I inspect/get copies of my evaluated answer books?

An application by an examinee seeking inspection of his/her evaluated answer books and/or certified copies thereof is independent of and distinct from an application made by him/her for verification of marks under the existing Regulation 39(4) of the Chartered Accountants Regulations, 1988.

An application for inspection/certified copies is not treated as a verification application.

Inspection/certified copies of evaluated answer books provides information for your academic guidance but does not provide any remedy in case of any discrepancies that may be noticed in inspection/certified copies.

The remedy lies in the process of verification of answer books, which is independent and distinct from the inspection/certified copies process. Hence, you may make a separate application for verification of answer books, without waiting for inspection/certified copies of answer books.

9. Can I apply for, both, verification as well as inspection/copies of my evaluated answer books?

Yes. You can apply for both verification as well as inspection/copies of your evaluated answer books by following the prescribed procedure. However, in case you send them by post, do not send both the applications together in the same envelope. Send them by separate envelopes. Take care to superscribe the envelope with the name of the examination, the application relates to.

10. How long does it take to get verification result?

The verification process is meticulously drawn up exercise and it therefore takes time which may run to about 6-8 weeks. Though it will be our endeavour to inform the outcome of verification in respect of an exam at the earliest, yet the same cannot be assured, due to time consuming processes involved. However, all such candidates who do not receive the response latest upto 15 days before commencement of the next exam, may send an email to the exam dept. at the contact details as given below.

11. What are the possible outcomes, that may arise out of verification of marks:

The verification exercise may result in

  • No change of marks
  • Increase of marks, impacting result or exemption in one or more paper(s)
  • Increase of marks, which does not have an impact on result or exemption in one or more paper(s)
  • Decrease of marks

Candidates can check the outcome of their application for verification (whether submitted physically or on-line) from http://icaiexam.icai.org. A written communication is also sent to the candidate concerned, at the address mentioned by him/her in his/her application. In case of revision of marks, a revised mark statement/result (as the case may be) is also sent to the candidate.

12. Can a candidate get a refund of verification fees in case of change in marks pursuant to the verification?

Yes. In case of change in marks, the verification fee is refunded to the candidate automatically. There is no need to make a separate claim for refund. In case, he/she had also applied for the next exam, pending the outcome of the verification and the outcome of verification, results in his passing the earlier exam, the examination fees paid by him/her for the next exam is also refunded.

13. I have not received any communication from the Institute regarding my application for verification of marks of the previous exam, so far. However, the last date for submission of application form for the next exam, is fast approaching. Should I apply for the next exam or not?

You may submit your examination form for the forthcoming examination, if you so wish, pending receipt of the outcome of verification of answer books of the earlier exam. However, no extension of time for submitting of examination application form will be allowed under any circumstances.

14. How does a candidate contact the Institute to check the outcome of his/her verification application?

The outcome of the verification of all those who had applied (whether through on-line mode or physical mode) will be hosted on the website http://icaiexam.icai.org and a written communication will also sent to the concerned candidates individually.

The candidates are advised to check the said website from time to time regarding the outcome.

They can also send an email at the following email IDs, as per the exam:

cpt_exam@icai.org

pce_examhelpline@icai.org

ipce_examhelpline@icai.org

final_examhelpline@icai.org

Click here to download the above FAQ in PDF Format- FAQs on Verification of Marks.

Source: The Institute of Chartered Accountants of India.


Frequently Asked Questions (FAQs) on Revised Schedule VI to the Companies Act 1956

Format- PDF

No. of Pages- 17

File Size- 85.9 Kb

No. of Questions: 50

General- 1 to 7

Classification- 8 to 14

Current vs Non-Current Classification- 15 to 33

Operating Cycle- 34 to 39

Cash Flow Statement- 40

Other Disclosures- 41 to 50.

Click here to download the Frequently Asked Questions (FAQs) on Revised Schedule VI to the Companies Act 1956 in PDF Format.

Source: The Institute of Chartered Accountants of India.