Dear Members,

Well! We are back from 6th International Residential Refresher Course, which was held in Sri Lanka and Malaysia.

Our experience was extremely good. We learnt a great amount of VAT System prevailing in both the countries. We also learnt about the culture and also enjoyed the beautiful natural scenery of both the countries. Though both the countries are far smaller compared to our country, India, but still they are much advanced so far as infrastructure is concerned. The way in which both the countries have preserved their temples and other monuments are praiseworthy.

The main noteworthy feature of this year’s International R.R.C. was that His Excellency, Dy. High Commissioner of India for both the respective countries had remained present and addressed our delegates.

In Sri Lanka, His Excellency, Mr. A. Manickam, the Deputy High Commissioner of India graced the occasion and addressed our delegates. Learned speaker, Lakmali Nanayakkara, Chartered Accountant, partner of Ernst and Young, gave very good presentation. We learnt that in Sri Lanka VAT is implemented only partially; i.e., it is applicable only to importers and manufacturers. Before introduction of VAT there was a Goods and Service Tax (GST). But still in VAT also services are taxable. In Sri Lanka, Turnover Tax is continued to be levied on wholesalers and retailers and to that extent there is a cascading effect of taxation. VAT is collected at import point. There are very few restrictions for input tax credit for capital goods.

In Sri Lanka, Mr. Prakash Advani, the director of Hotel Taj Airport Garden, Sri Lanka, was the guest of Honour. We also appreciate and thank for his gesture for sponsoring the event of presentation in Hotel Taj Samudra in Sri Lanka.

Mrs. Nilima Marathe and Mrs. Vaishali Joshi, daughters of our Ex-Tribunal Member, Shri A. B. Ghanekar had beautifully sung prayer of ‘Saraswati Vandana’ Ku. Rutuja Joshi, the grand daughter of Shri Ghanekar Saab, had performed a dance for the ‘Saraswati Vandana’.

Similarly in Malaysia, His Excellancy, Sanjay Panda, the Counsellor (Economics) had graced the occasion and addressed the delegates. Guest of Honour, Shri Harpal Singh Dhillon, the Secretary of the Malaysian Institute of Taxation also briefly addressed the gathering. Learned speaker, Mr. Thomas Selva Doss, Tax Consultant, gave a detailed presentation on Sales Tax in Malaysia. In Malaysia at present there is a Sales Tax and not VAT system. The government is in the process of introducing a goods and Service Tax (GST) in a near future. In Malaysia, the Sales Tax Act is administered by the Customs Department.

Again, like in Sri Lanka, imported goods are taxed (sales tax) at the time of their entry into the country. This raises many transfer pricing issues. E.g., value on which to levy sales tax.

One thing we found very common is that tax dodgers are there everywhere! When we were in Sri Lanka, we saw a prominent news item in a national daily that some hundred million dollars sales tax evasion scam was unearthed by the sales tax department there. Similar trend of tax evasion we noticed in Malaysia also!

Over all experience was very nice and educative.

I shall be failing to my duty if I do not mention the names of Mr. Yohan Perera, the President of the Institute of Chartered Accountants of Sri Lanka and also, of our member and the past President of the Institute of Chartered Accountants of India, Shri Ashok Chandak for using his good office in identifying the faculty at Sri Lanka.

Similarly, I shall be failing to my duty if I do not mention the names of the staff of the Malaysian Institute of Taxation, particularly Ms. Sunita Nathan, Executive Director of the Institute and
Ms. Mohana Devi Sukalingam for their assistance in organising the event in Malaysia. Right from the beginning their approach was very warm and enthusiastic.

I would also like to thank Shri Dilipbhai Shah and Vicky the CEOs of M/s Shah Tours and Travel for making excellent arrangements for our 6th International R.R.C. All the hotels selected were very good. Both the escorts, Shri Dilipbhai Shah (please do not confuse with Shri Dilipbhai Shah of Shah Travels, they both are different persons and both are personal friends) and Shri Shailesh Dave, were mature and took good care of us.

Now, coming back to our local affairs of the Association, Tax Audit issue is still like a hanging sword. Members from all over the Maharashtra are calling me up for the final fate of the issue. We have faith in the transparency and reasonableness of the Hon’ble Commissioner, Shri B. K. Khatua and I suppose he must have taken concrete steps in this direction by now. We would also be representing our case with the Finance Minister, Hon’ble, Shri Jayant Patil and see that justice is done to all.

And now, finally the time of ending my tenure as a president is coming nearer. You must have got circular for the next Annual General Meeting and details of next election by now. As for me, personally this year will remain ever in my memory.

Thanking you,

Yours sincerely,

(Ashvin A. Acharya)
President