Souvenir Final Low

International Conference of CA Students
29th (Saturday) & 30th (Sunday) January, 2022 at Kolkata
Sponsor
The Institute of Chartered Accountants of India
29th (Saturday) & 30th (Sunday) January, 2022 (Virtual)
Organized by
Board of Studies - Operations
Hosted by
EIRC & EICASA, Kolkata
Disclaimer
The views expressed by the paper writers on their articles are their own views
and do not represent the views of either of BOS – Operations (SSEB) of ICAI, EIRC
of ICAI or The ICAI or any of the Branches of the ICAI or any of its Committees.
The Institute does not accept any responsibility for the views expressed in
different contribution / advertisement published in this Souvenir.
(1)
Content
1. About International Conference & ICAI with focus on BOS – Operations & EIRC 3
2. Council Members of ICAI 4
3. Composition of Board of Studies – Operations (SSEB), ICAI 6
4. Team EIRC 8
5. Team EICASA 9
6. Messages 11
7. Programme 24
8. AI, Machine Learing & Deep Learning - The Connect 26
9. Trends In AI In Contemporary Industry And Corporate Sector 34
10. Artificil Intelligene And Future of CA 39
11. Future of Work In The Era of Digital Profession 43
12. Start-Ups In India 49
13. Ease of Doing Business And Ease of Living to Promote Private Investments 54
14. Digital Opportunity And Digital Ecosystem 63
15. Achieving 5 Trillion Economy Via Net Zero Carbon Emission 68
16. Black Hat V/s White Hat (Ethical) Hackers 75
17. Digital Forensic & Cyber Crime 79
18. New Age Forensic Accounting Standards of ICAI - A Pathbreaker 85
19. Forensic Accounting - The Profession 93
20. Accounting & Financial Reporting Aspects In E-Commerce Sector 99
21. Facilitation of Taxpayers as well as Taxation System 104
22. Dynamic Power of Auditing and Inherent Regulatory Challenges 108
23. Walking A Different Path – Alternative Career For CAs 112
24. GST – Good & Simple Tax- Bane Or Boon? 119
25. Format of GST - Suitable to India? 124
26. E-Commerce & GST : Issues & Way Forward 127
27. Role of CAs In Litigation Support & Dispute Resolution In GST Domain 138
28. Emerging Global Career Options For Next-Gen CAs 145
29. Icai - Facilitator of Global CAs, through International Outreach 153
30. Digitization- Breaking the Barriers 161
31. Indian MSME: Contributing to Growth Engine 166
(2)
International Conference
The International Conference of CA students is a very prestigious event for the Institute and is organized once
every year.The Conference aims to provide a common platform wherein students of the Chartered Accountancy
profession fromacross the world join together and share their knowledge on contemporary topics.The event is
an excellent opportunity for students to share and learn about diverse socio-cultural environment prevailingin
different parts of the world. Students from International Bodies will also participate in the Conference. The
studentdelegates from International Accounting Bodies are also welcomed to present Papers virtually on
Technical Sessions.
It gives immense pleasure to share that Board of Studies-Operations (SSEB) is organizing International Conference
of CAstudents on the Theme: “AIM, ACT, ACHIEVE” at Kolkata on 29th and 30th January 2022.
About ICAI& BOS – Operations (SSEB)

The Institute of Chartered Accountants of India (ICAI) is a world’s leading Accountingstatutory body regulating
the profession of Chartered Accountants in India. ICAI is aregulator and developer of trusted and independent
professionals with world classcompetencies in Accounting, Assurance, Taxation, Finance and Business
AdvisoryServices.ICAI with more than 3.48 lakhs members and above 7.06 lakhs students, is thesecond largest
accounting body in the world. It is a non-profitable organisation,imparting world class education to create
global professionals.The Institute functions under control of Ministry of Corporate Affairs, Governmentof
India. It has its headquarters in New Delhi and 5 Regional Offices in Chennai,Kanpur, Kolkata, Mumbai and
New Delhi. It presently has 164 branches spread allover the country. In addition, it has also set up 44 chapters
outside India and an Overseas Office in Dubai.The ICAI through its Board of Studies - Operations (SSEB) is
taking various initiatives to develop the requisite Skill Sets forbudding Chartered Accountants and enrichment
of their Professional Skills. The Board formulates, implements and governsthe various policies of the Council
relating to practical education and training including industrial training, InformationTechnology and Soft Skills
Training of students.It also organises various students related activities like - Webinars, Conferences (Branch
level, National & Internationallevel), Seminars, Fairs, Co-Curricular activities, etc. for developing and enriching
personality,leadership qualities and communication skills of our students. Scholarships are also awardedto its
meritorious, differently abled, and needy students.ICAI waives off 75% fee for the students registering from the
newly formed Union Territoriesof Jammu & Kashmir, Ladakh and also from 8 North-Eastern States, for all level
of CA Coursei.e. Foundation, Intermediate and Final.
Eastern India Regional Council (EIRC)

The EIRC of ICAI was constituted in the year 1952 with its jurisdiction on 10 States of Eastern and North Eastern
part of the country and 1 Union Territory. The states being covered are Arunachal Pradesh, Assam, Manipur,
Meghalaya, Mizoram, Nagaland, Tripura Sikkim, Odisha, West Bengal and Union Territory of Andaman & Nicobar
Islands. EIRC has 13 Branches at Asansol, Durgapur, Ranigunj, Siliguri in state of West Bengal, Bhubaneswar,
Cuttack, Rourkela, Sambalpur, Jharsuguda, Brahmapur in the state of Odisha, Guwahati, Dibrugarh, Tinsukia in
the state of Assam.
Eastern India Chartered Accountants Students’ Association of EIRC (EICASA)
The student wing of EIRC is Eastern India Chartered Accountants Students’ Association (EICASA).
(3)
CENTRAL COUNCIL OF ICAI
CA. Nihar N Jambusaria CA.(Dr.) Debashis Mitra

President, ICAI Vice-President, ICAI
CA. Aniket Sunil Talati CA. Anil S Bhandari CA. Anuj Goyal CA. Atul Kumar Gupta
Council Member Council Member Council Member Council Member
CA. Babu Abraham Kallivayalil CA. Chandrashekhar Vasant CA. Charanjot Singh Nanda CA. Dayaniwas Sharma
Council Member Chitale Council Member Council Member
Council Member
CA. Dheeraj Kumar Khandelwal CA. Durgesh Kumar Kabra CA. G. Sekar CA. Hans Raj Chugh
CA. Jay Chhaira CA. Kemisha Soni CA. M P Vijay Kumar CA. Manu Agrawal
(4)
CENTRAL COUNCIL OF ICAI
CA. Nandkishore Chidamber Hegde CA. Prafulla P Chhajed CA. Prakash Sharma CA. Pramod Jain
CA. Pramod Kumar Boob CA. Prasanna Kumar D CA. Rajendra Kumar P CA. Rajesh Sharma
CA. Ranjeet Kumar Agarwal CA. (Dr.) Sanjeev Kumar Singhal CA. Satish Kumar Gupta CA. Shriniwas Yeshwant Joshi
CA. Sushil Kumar Goyal CA. Tarun Jamnadas Ghia

Council Member Council Member
Shri Manoj Pandey Shri Gyaneshwar Kumar Singh Ms. Ritika Bhatia Shri Chandra Wadhwa
Nominated Member Nominated Member Nominated Member Nominated Member
Dr. P. C. Jain Dr. Ravi Gupta Adv. Vijay Kumar Jhalani

Nominated Member Nominated Member Nominated Member
(5)
Composition of Board of Studies – Operations (SSEB)
CA. Nihar N Jambusaria CA. (Dr.) Debashis Mitra

President, ICAI (Ex – Officio) Vice-President, ICAI (Ex – Officio)
CA. Sushil Kumar Goyal CA. Pramod Kumar Boob CA. Anil S Bhandari CA. Jay Chhaira
Chairman Vice-Chairman Member Member
BOS - Operations (SSEB), ICAI BOS - Operations (SSEB), ICAI BOS - Operations (SSEB), ICAI BOS - Operations (SSEB), ICAI
CA. Prafulla P Chhajed CA. Dheeraj Kumar Khandelwal CA. Durgesh Kumar Kabra CA. Babu Abraham Kallivayalil
Member Member Member Member
CA. Dayaniwas Sharma CA. Prasanna Kumar D CA. Rajendra Kumar P CA. M P Vijay Kumar
CA. Ranjeet Kumar Agarwal CA. Anuj Goyal CA. Prakash Sharma CA. Satish Kumar Gupta
(6)
Composition of Board of Studies – Operations (SSEB)
CA. Hans Raj Chugh CA. Rajesh Sharma CA. Charanjot Singh Nanda CA. Chandrashekhar Vasant
Member Member Member Chitale, Member
Co-opted Members
CA. Vijaya Srinivas K CA. S G Mundada CA. Geetika Taneja CA. Rakesh Joshi
Co-opted Member Co-opted Member Co-opted Member Co-opted Member
BOS-Operations (SSEB), ICAI BOS-Operations (SSEB), ICAI BOS-Operations (SSEB), ICAI BOS-Operations (SSEB), ICAI
CA. Kedar Kumbhojkar CA. Ashima Jain CA. Jayesh Jobanputra

Co-opted Member Co-opted Member Co-opted Member
BOS-Operations (SSEB), ICAI BOS-Operations (SSEB), ICAI BOS-Operations (SSEB), ICAI
Special Invitees
CA. Girish Deodhar CA. Geetika Jain CA. Jayendra Kr Tiwari CA. Sanjay Agarwalla CA. Bimal Agarwalla
Special Invitee Special Invitee Special Invitee Special Invitee Special Invitee
BOS - Operations (SSEB), ICAI BOS - Operations (SSEB), ICAI BOS - Operations (SSEB), ICAI BOS - Operations (SSEB), ICAI BOS - Operations (SSEB), ICAI
(7)
EASTERN INDIA REGIONAL COUNCIL OF ICAI
CA. Sunil Kumar Sahoo CA. Ravi Kr. Patwa

Chairman Vice-Chairman & Chairman, EICASA
CA. Debayan Patra CA. Hari Ram Agarwal

Secretary Treasurer
CA. Nitesh Kumar More CA. Sumit Binani

Immediate Past Chairman & Member Past Chairman & Member
CA. (Dr.) Debashis Mitra CA. Ranjeet Kumar Agarwal CA. Sushil Kumar Goyal
Vice-President, ICAI Council Member Council Member
(8)
Eicasa Managing Committee - 2021-2022
CA. Ravi Kumar Patwa CA. Debayan Patra, CA. Hari Ram Agarwal
Chairman, EICASA Nominated Member to EICASA Nominated Member to EICASA
Ms. Sweety Paul Ms. Swati Benia Mr. Kaushik Agarwal Mr. Koushal Burnwal
Vice-Chairperson Secretary Treasurer Member
Ms. Prajnaparamita Panda Mr. Shivam kumar Mr. Shreyhans Agarwal Ms. Manisha Das
Mr. Ankit Das Mr. Sk Saddam Hussain Mr. Amit Kedia Ms. Harshita Raj
Member Member Special Invitee Special Invitee
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( 10 )
Messages
( 11 ) ( 11 )
Note : The Programme has been subsequently shifted from Biswa Bangla to ITC Sonar.
( 12 )
( 13 )
Note : The Programme has been subsequently shifted from Biswa Bangla to ITC Sonar.
( 14 )
( 15 )
Message President, ICAI
Dear Students,
The Institute of Chartered Accountants of India (ICAI) has always been committed for the welfare of its
Students, Members and Society as a whole. The demand of the Chartered Accountancy profession has
meteorically risen due to globalization. The days when the role of the Chartered Accountant was restricted
to mere book keeping and assessing books of account of the company and clients are gone. With changing
times, the role of a Chartered Accountant has grown leap and bounds.
Today, a Chartered Accountant is playing a multifaceted role in assisting the business and industry to help
the business houses in optimum utilization of their resources. The range of management advisory services
rendered by CAs nowadays includes providing financial planning and financial policy determination, portfolio
management etc. A Chartered Accountant is known as a True Business Solution Provider to the organization
due to the multiple roles played by him.
In the era of globalization and intense competition, mere technical skills are not sufficient for the industries.
A blend of technical as well as other skill sets is required to showcase the best in yourself. To develop and
enhance such skill sets of the budding Chartered Accountants, the Board of Studies (Operations), Students
Skill Enrichment Board (SSEB) of ICAI continuously works and provides different avenues to students for
learning and enrichment.
I am happy to learn that Board of Studies (Operations) is organizing a Two-days International Conference of
CA students on 29th - 30th January 2022 in hybrid mode at Kolkata. The theme of the Conference is “AIM,
ACT, ACHIEVE”. The theme is aptly chosen as in COVID times your aim will only decide your actions thereby
helping you to achieve your goals.I am sure that all the students will be highly benefitted by attending
the Knowledge Sessions along with motivation sessions included in the Conference by various eminent
speakers. The deliberation at the Conference helps you to sharpen the skills and knowledge by broadening
your horizons, so as to fully realize your potential to meet the challenges of the future.
I extend my best wishes for the success of the International Conference and compliments to Eastern India
Regional Council (EIRC) and Eastern India Chartered Accountants Students Association (EICASA) for hosting
the event. My compliments to all the organizers and to all those associated in organising and hosting of this
conference in most appropriate manner.
I convey my best wishes for your future pursuits and I am sure that the International Conference will be a
good knowledge enrichment experience for all participants.
Keep Healthy and safe!
CA. Nihar N. Jambusaria

President, ICAI
( 16 )
Message Vice-President
ICAI
Dear Students,
“An aim is the Master Key to unlock the path to Achieve.”
Over the years, the Chartered Accountancy profession has achieved rapid growth by virtue of professional
services being rendered by its members and has occupied a prominent role in the economy and society.
The budding Chartered Accountants of today are the future members of the profession. With the advent of
fast changing scenario across the globe the expectation level of the market has undergone a tremendous
change. Looking at the change it is rightly said that Nothing is permanent except change.
The Board of Studies (Operations), SSEB of ICAI is working with the prime objective to develop the requisite
Skill Set for potential Chartered Accountants and Enhancement of their Professional Skills so as to develop
CAs as complete Business Solution Providers with an all-round personality.
I am happy to know that Board of Studies (Operations), SSEB is organising the International Conference of
CA students on 29th - 30th January 2022 at Kolkata in hybrid mode. The theme of the Conference is “AIM,
ACT, ACHIEVE”. The Theme is extremely motivational as it states that to Achieve we must first Aim and
accordingly Act. If the goals are clear, we can put our resources to act accordingly.
I am sure that the Conference will be a great learning experience as the eminent speakers and dignitaries
from different walks of life under one umbrella will be sharing their thoughts and experiences in the various
knowledge sessions. The presence of student delegates from foreign countries will add flavour to the event.
I convey my warm greetings to EIRC and EICASA of ICAI for hosting this grand event and felicitations to all
who are part of the Conference.
I wish the Conference great success.
CA. (Dr.) Debashis Mitra

Vice-President, ICAI
( 17 )
Message Chairman, SSEB,
ICAI
Dear Students,
We all know that Chartered Accountancy is a most sought-after career Opportunity demanded not only by the
students but also by the Industry. A Professional having Chartered Accountancy Degree is able to get more
involved in running a successful business. A Chartered accountant is trained not only in taxation, Business Law,
Audit, Company Law…etc. but also in Management.
We are happy to announce that the Board of Studies- Operations, ICAI is organizing one of its Grand Event for
its CA Students on 29th - 30th January 2022 (Saturday and Sunday). The conference will be organized in a hybrid
mode at Kolkata. The theme of the Conference being “AIM, ACT, ACHIEVE”. Its rightly said:
“If you want to Achieve, start by setting your goal, putting all your Actions, at last, achieving what is Aimed.”
Becoming a Chartered Accountant combines innovative education with mentored work experience, to produce
accountants who possess a greater ability to analyze and interpret business problems and develop dynamic
solutions. That’s why Chartered Accountants have the edge over their counterparts: they rise further and faster
into more diverse and important roles in organizations.
The CA designation is your passport to a truly international career and allows you to work anywhere in the
world. Being a CA shows that person is hard working, determined and ready to sacrifice everything to get final
target. A CA deals with the highest level of business responsibilities such as mergers, demergers, amalgamation,
dissolution, conversion etc.
The Significant Achievements of the Board are:
1. Digitization of Scholarship Process - ICAI has come up with the digitization of Scholarship Process for
the award of Scholarship to CA Students. Applications from students are invited to apply for Scholarships
under various categories namely Need based for Economically Weaker students; Merit-Cum-Need Based
Scholarship and Merit Scholarship. The students are facilitated to submit online Scholarship application with
no manual intervention for selection of Scholarship.
2. Corpus Fund - Creation of Rs. 100 crores Earmark Corpus Fund for disbursement of Scholarship grant.
3. National Talent Hunt - Board of Studies- Operations (SSEB) also organized National Talent Hunt for CA
Students on 16th January, 2022 at COE, Hyderabad. The event comprised of Best Presenter (PPT) and
Debate Competition. National Talent Hunt comprising of Elocution Contest and Quiz Contest was organized
on 28th August at Puri, Odissa. It is a matter of pride for all of us that the winners of Elocution Contest at
National Level organized by ICAI bagged the winning position & 1st Runner Up position in the SAFA Quiz and
Elocution Contest, 2021.
4. Article Placement & Industrial Training Portal - The Board of Studies – Operations, (SSEB) had launched
the Article Placement & Industrial Training Portal. This portal acts as a seamless interface for both students
& industries to interact with each other. Students’ data is auto integrated with Self-Service Portal of ICAI,
Companies are getting online approval within 24 hour and creating vacancies and selecting students online.
The portal intimates the students well in advance through the system about their eligibility for industrial
training. 1130 companies are registered & have created vacancy on this portal till date.
5. SSEB booklets - Publication of SSEB booklets named Time and Stress Management.
6. Virtual Batches - Seamless Training has also been provided through Virtual Batches organized by the
Branches for IT and Soft Skills.
BOS- Operations, SSEB of ICAI endeavors to ensure the development of your skill set by transforming into a
Competent Professional. Keeping in spirit of the Aim, Act and Achieve, we would love to continue our tradition
of the best ethos and bring the best brains to the business world.
I wish the Conference a Grand Success.
CA. Sushil Kumar Goyal

Chairman, Board of Studies (Operations) Students Skills Enrichment Board, ICAI
( 18 )
Message Vice-Chairman,
SSEB, ICAI
Dear Students,
Warren Buffet who is known as the Oracle of Omaha and one of the richest persons on the earth for the
longest tenure once said that “Accounting is the language of Business” and it is a matter of great pride that
Chartered Accountants are the masters of the business world.
At ICAI, our aim is to uphold the highest standards of the Chartered Accountancy Course. We aim to produce
the finest talent and create an ever-lasting impact on the growth and success of our nation’s public and
private sector organizations.
It is a matter of pride to publicize that the Board of Studies- Operations, ICAI is organizing one of its Grand
Event for its CA Students based on the theme “AIM, ACT, ACHIEVE”. The Two-day International Conference
for CA students is on 29th - 30th January 2022 (Saturday and Sunday). The conference will be organized in
a hybrid mode at Kolkata. Students connected virtually from across the globe will join in the International
Conference. All eminent dignitaries from the world will join at this platform and students’ delegates from all
major Accounting bodies will also join this wonderful platform.
ICAI students are well respected across the ecosystem and held in the highest business integrity. We act to
produce and uphold the same level of quality education through many years of practice. With these strong
fundamentals, we have achieved the global recognition as the valued career of our members.
CA. Pramod Kumar Boob

Vice-Chairman,
Board of Studies (Operations), Students Skills Enrichment Board, ICAI
( 19 )
Message Chairman,BOS(A),
ICAI
Dear Students,
Students Skills Enrichment Board (BOS-O) has been organizing several students’ conferences, conventions,
and contests during the entire year. The objective is to provide and monitor high quality practical education
to students of CA course and take all possible steps on a continuous basis to motivate our students to be
keen through conducting various educational activities and programmes for the benefit of our students.
It is heartening that the SSEB is developing an ecosystem of learning by training the students in technology
and soft-skills through experiential learning as well as providing them a rare chance to meet their peers
from other regions, exchange ideas and supplement their knowledge by organizing such events. This would
indeed go a long way in preparing a prudent workforce by guiding young CA aspirants for challenges ahead.
Today’s International Conference is another endeavor in this direction that paves our way for scientific
cooperation by meeting and connecting with researchers from different countries. The theme for today’s
International Conference 3 A’s – “AIM, ACT, ACHIEVE” has been aptly titled as this elaborates the pathway to
success for any individual. The conference provides a wide platform for the students from different countries
to exchange their knowledge and vast experience with the dignitaries and distinguished speakers.
I am extremely confident that this event will be instrumental in invoking an innovative thought process and
will render the much-needed exposure to our students, providing them with an excellent opportunity to
broaden their perspective and widen their worldview.
I extend my best wishes for the success of the Conference and compliment the Students Skills Enrichment
Board, SSEB, Eastern India Regional Council, Eastern India Chartered Accountants Students Association and
team members of Kolkata branch for hosting such a grand event.
CA. Jay Chhaira

Chairman, BOS (Academic)
( 20 )
Message Vice-Chairman,
BOS(A), ICAI
Dear Students,
It gives me immense pleasure that the Students Skills Enrichment Board [Board of Studies (Operations)] is
organizing International Conference for CA Students on 29th - 30th January 2022 (Saturday and Sunday).
The theme for the conference is aptly titled “AIM, ACT, ACHIEVE”.
As the growing business complexities, burgeoning knowledge-intensive economy, dynamic regulatory and
legal frameworks, and protracting stakeholders’ expectations are posing constant challenges before the
Chartered Accountancy profession, there is an inevitable need to sharpen the skill sets and to develop the
overall personality of the students besides equipping them with requisite technical competence. These
conferences provide an excellent platform for shaping the persona, confidence, oratory skills and other skill
sets of the students which are the need of the hour.
I am extremely confident that the technical sessions at the conference would give you comprehensive
exposure, helping you to understand and appreciate the diverse points of view. Active participation in this
Conference would prove invaluable in honing and fine-tuning your communication skills besides providing a
wonderful platform for expressing your views and building camaraderie with fellow CA students. This would
boost your confidence, which in turn would help you in excelling at group discussions and future interviews.
It is heartening that the Students Skills Enrichment Board [Board of Studies (Operations)] is regularly
organizing such conferences and programmes which provide an excellent platform to you where you get
to connect and exchange your knowledge and experience with eminent speakers, dignitaries, and fellow
Chartered Accountant Students. These sessions play a pivotal role in sharpening your skill sets as also give
you an insight into the latest issues facing the profession.
I compliment the Students Skills Enrichment Board [Board of Studies (Operations)], Eastern India Regional
Council (EIRC), EICASA and team members at Kolkata for organizing such a grand event and extend my best
wishes for the success of the conference.
CA. Ranjeet Kumar Agarwal

Vice Chairman, BOS (Academic)
( 21 )
Message Chairman,EIRC
Dear Student,
It gives me immense pleasure to know that Eastern India Regional Council of the Institute of Chartered
Accountants of India and its Student wing Eastern India Chartered Accountants Students’ Association is
hosting the International Conference of CA Students being organised by Board of Studies - Operations (SSEB)
on 29th & 30th January 2022. The Conference though is organised in a virtual mode will also be organised
physically at ITC Sonar Bangla.
This Conference being an International one has drawn students from various parts of the globe. This will
provide an unique opportunity to the students of various countries to interact with each other.
The speakers selected are the students themselves who will be presenting papers on various topics. This
will help them not only to update themselves in the professional arena but also to improve their oratory
skills. The selected paper presenters with through knowledge of the subject will present relevant papers on
various topics.
The students will also have the opportunity to listen to the best of the motivational speakers in the country
like BK Sister Shivani, Aakash Gautam, Jaya Kishori, Gyanvatsal Swami where they will be deliberating on
“Building Emotional Resilience”, “Happitude”, “Spritual Auditing”, “Think Different, Be Different, Succeed
Different” respectively. This will motivate the students and will help them to overcome stressful situations.
I hope that the Conference will be a success for the overall development of the Students.
Regards,
CA Sunil Kumar Sahoo

Chairman, EIRC
( 22 )
Message Chairman,EICASA
Dear Students,
International Conference of CA Students, 2022 is an exceptional platform for exchange of knowledge and
promises to offer networking opportunities with delegates across the globe. The 3As added to its theme
“AIM, ACT, ACHIEVE” definitely provide an overview of the academic progression that it targets to accomplish.
The international Conference being one of its kind, is being held after almost a decade at the City of Joy,
Kolkata. My gratitude to the BOS (Operations) for allowing it to be held at Kolkata.
With immense pleasure, I would like to welcome all the delegates, resource persons, notable speakers who
shall be participating and sharing their experiences and knowledge before the academia.
Looking forward to having an excellent two-day conference with an enthusiastic student conglomerate
representing the whole country as well as several other nations of the world.
I would like to place on record my appreciation for the students’ team of EICASA for their collective efforts,
hard work, dedication and valuable contribution.
Best wishes always.
CA Ravi Patwa
Chairman, EICASA
( 23 )
Programme Schedule
Address by Chief Guest - Mr. Vivek Gupta, MLA & Editor In Chief, Sanmarg
10.00 am to 11.00 am
Address by Guest of Honour - Mr. Maninder Singh, Former Indian Cricketer
Address by - CA. (Dr.) Debashis Mitra, Hon’ble Vice President, ICAI
Inaugural Session Address by - CA. Nihar N. Jambusaria, Hon’ble President, ICAI
11.00 am to 12.00 Noon Building Emotional Resilience

by BK Sister Shivani
Day 1 – 29th JANUARY, 2022
Growth Session I
1. AI, Machine Learning & Deep Learning - the Connect.
Intelligence
12.00 Noon to 01.00 pm
Artificial 2. Trends in AI in Contemporary Industry and corporate sector.
3. Artificial Intelligence and future of Accounting Profession.
Knowledge Session: I 4. Future of work in the Era of Digital Profession.
Break for Lunch
Role of CAs
1. Start-ups in India.
in 5 trillion
02.00 pm to 03.00 pm
Economy
2. Ease of Doing Business and ease of living to promote private investments.

3. Digital opportunity and Digital Ecosystem.
Knowledge Session: II 4. Achieving 5 Trillion Economy via Net Zero Carbon emission.
03.00 pm to 04.00 pm Think Different, Be Different,

Succeed Different.
Growth Session II by Gyanvatsal Swami
1. Black Hat vs White Hat (Ethical) Hackers.

04.00 pm to 05.00 pm
Forensic
Audit
2. Digital Forensics and Cyber Crime.

3. New-age Forensic Accounting Standards of ICAI - a pathbreaker.
Knowledge Session: III 4. Forensic Accounting- The Profession and The Industry.
Accountancy
1. Accounting & Financial Reporting aspects in E-Commerce sector.

10.00 am to 11.00 am
Beyond
2. Facilitation of Taxpayers as well as Taxation system.

CAs
3. Dynamic Power of Auditing & inherent regulatory challenges.

Knowledge Session: IV 4. Walking a Different path - Alternative career for CAs.
11.00 am to 12.00 Noon

Spiritual Auditing
by Jaya Kishori
Growth Session III
Day 2 - 30th JANUARY, 2022
1. GST – Good & Simple Tax- bane or boon?

GST in India
Genesis of
12.00 Noon to 01.00 pm

2. Format of GST- Suitable to India?
3. E-Commerce and GST: Issues and way forward.
Knowledge Session: V 4. Role of CAs in Litigation support & Dispute resolution in GST domain.
Break for Lunch
1. Emerging Global Career options for Next-Gen CAs.
Opportunities
02.00 pm to 03.00 pm
2. ICAI - Facilitator of Global CAs, through international outreach.
for CAs
Global
3 Digitization- Breaking the Barriers.

Knowledge Session: VI 4. Indian MSMEs: Contributing to growth engine of Global Economy.
03.00 pm to 04.00 pm
Happiitude
by Aakash Gautam
Growth Session IV
04.00 pm to 05.00 pm Special Session on Aim-Act-Achieve

Aim-Act
Achieve
Power Session
( 24 )
Knowledge
Session 1
Artificial Intelligence
( 25 )
AI, Machine Learning & Deep
Learning – The Connect
Radha Iyer
“Some people call this artificial intelligence, but the reality is this
technology will enhance us.
So instead of artificial intelligence, I think we’ll augment our intelligence.”
— Ginni Rometty
INTRODUCTION
Artificial Intelligence as it sounds is as fascinating as one
could have ever thought of!
 From Medical science to Architectural design,
From Research to Space,
From Commerce to E-commerce,
From Offices to our Homes,
We are being driven by the one single intriguing
aspect and that’s AI!
 It can be evidently seen in immediate periphery
of our daily lives with the advent of AI, For e.g.
Using Google Assistant, Apple Siri, Bixby or
Amazon Alexa, to help us search via internet,
meeting our specifications forwhether finding
best routes to reach the destination, to make
phone calls, to play music, to read out the news, to search for the mails and much more!
 So now let us deep dive into the much interesting and trending technology yet so human, that is
the Concept of AI!
CONCEPT
 Artificial intelligence is something new, something more wider, something as abstract as well as
its presence can be strongly felt though being reckoned as artificial but it’s as real as we humans
have created this super modelling!
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 It is in fact our guide, a personal helper and moreover our digital friend!For attaining our goals
and objectives whether it’s in terms of business, professional or even for the development for
the overall mankind!
 For example say that we humans are able to function well due to our vital organs and brain.
 Similarly even AI has its vital organ as the “Machine Learning” and its brain as the “Deep learning
via neural networks” which facilitates us with the greatest boon in this fast pacing world!
UNDERSTANDING AI AND ITS ASPECTS
So the question arises, what is AI? How can
a machine be considered as intelligent? Else “The original question, ‘Can machines
can machines think intelligently? So, well the
answer to it is: - think?’ I believe to be too meaningless to
 AI is a discipline involving varied facets
deserve discussion.”
where the advancement in machine ― Alan Turing, Mechanical Intelligence:
learning and deep learning are creating Collected Works of A.M. Turing
a paradigm shift in every possible
sector globally.
 In the unconventional book Artificial Intelligence: A Modern Approach, the co-authors Peter
Norvig and Stuart Russell approach the question by integrating their work around the concept of
intelligent agents in machines.
They defined AI as “The study of agents that receive percepts from the environment
and perform actions.”
Norvig and Russell went on to explore the primarily four different approaches which ultimately
defined the field of AIas:-
ASPECTS OF AI
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Euler Diagram representing the AI and its aspects
EXPLANATION
In order to have a clear understanding of AI, we shall know about the aspects of AI, which are as
under: -
1. Neural Networks
 A neural network is a series of algorithms that attempts to identify underlying relationships in a
set of data by using a process that mimics the way the human brain operates.
 Neural networks have the ability to adapt to changing input so the network produces the best
possible result without the need to redesign the output criteria.
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(b) Supervised Learning
a)Unsupervised Learning:-
 For understanding Unsupervised Learning, let’s take an example of a new born baby being
growing from 0 year to a 1 year old. Each and every task that the baby learns is unsupervised
learning i.e. learning on its own.
 Similarly our Human Brain keeps on learning over the years. In life, the experienced people
are being valued by others so just like that in the arena of Computer World that set of
experience is termed as DATA.
b) Supervised Learning
Supervised learning can be simply termed as the Machine
Learning task of learning a function that maps an input to
an output based on example input-output pairs.
Example: DeepMind (Alphabet Inc.) making an AI based
weather forecasting.
2. Deep learning
Our human brain passes the information from one neuron to
another and then to another one until it reaches to the very
last 100 billionth Neuron.
 So in Neural Network, the input coming from one node
gets sent to another node which in turn processes it and
then it sends to the another one.
 So the more layer being present in that hidden nodes will constitute a Deep Learning.
3. Machine Learning
“Machine learning is the science of getting computers to learn without being explicitly
programmed.”
—Sebastian Thrun
As compared to Deep learning, Under Machine Learning there is only one layer receiving input from
another layer which processes it and it’s completed.
 Machine learning can be defined as a branch of
Artificial Intelligence and computer science which
emphasizes on the usage of data and algorithms
to imitate the way that humans learn by gradually
improving its accuracy
 Alan Turing a well-known mathematician in 1950s
had made a statement that “When you will be unable
to distinguish between a human and machine while
you are communicating then you are getting closer to AI.”
 With respect to Machine Learning, IBM has a rich history where Arthur Samuel is being credited
for coining the term, “machine learning” with his research around the game of checkers.
 Robert Nealey, the self-proclaimed checkers master, played the game on an IBM 7094
computer in1962, and he lost to the computer.
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 Although as in comparison of what is done today, this feat seems to be almost trivial, but it’s
considered to be the milestone with the field of AI.
 And over the next couple of decades, the development in technology around the storage and
processing power is going to enable a range of innovative products, of which we are already
aware of and love today such as Netflix’s recommendation engine and self-driving cars.
 ML systems can automatically learn and improve without being explicitly being programmed.
 Examples of ML: Image Recognition (X-rays, MRI etc.), Medical diagnosis, the recommendation
systems on music and video streaming services.
So AI is the Superset,
Machine learning the Subset,
And within Machine Learning, Deep Learning is the Subset.
SIGNIFICANT CONTRIBUTION OF AI IN RESPECTIVE AREAS

1. HEALTH
 In March 2020, The Government of India launched
a WhatsApp chatbot called MyGov Corona
Helpdesk to create awareness about coronavirus
and that bot was being created by Haptik.
 Haptik was awarded a special honour by the
Minister of State of External Affairs – Meenakshi
Lekhi, for partnering with MyGov on the Corona
Helpdesk.
 UK health secretary Sajid Javid gave permission
to go ahead with a series of AI-based Projects
that aim to tackle racial inequalities in National
Health Service (NHS).
2. Finance
 Out of the 45 international AI unicorns
identified – China has the largest share with 19
based in the country.(As per the research from
GlobalData)
 Priya Toppo, Analyst of Thematic Research at
GlobalData, comments:
Collectively, the Chinese AI unicorns are valued at $43.5 billion.
“China is a leading player in AI, with a number of established companies

such as Baidu, Hikvision, iFlytek, Tencent, and Alibaba.
The country also has a strong AI start-up ecosystem, which is evident
from the large number of AI unicorns (privately held start-up valued at
$1billion or more)”
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3. ROBOTICS
 Razer has partnered with marine waste cleaning start-up ClearBot to advance the use of AI
and robotics to reduce ocean pollution.
 Sophia (Hanson Robotics) is the world’s first robot citizen as well as the first robot innovation
ambassador for the United Nations Development Programme (UNDP).
REPLY BY GOOGLE ASSISTANT

Here is my own conversation with the Google Assistant: - The AI-powered virtual assistant developed
by Google Inc. where we can get an idea that till what extent an AI can correlate to a human as if the
person himself is sitting inside the device!
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ROLE OF CA IN AI: BRIEFING
Diagram featuring the streams of AI
 The Power of a Chartered Accountant’s brain can be very well understood via the above
diagram, where it is clearly seen that Expert System’s red line is shorter as compared to all the
other areas.
 It is so just because they are not having the experts to give the rule of the game.
 Whereas other areas have more because all of them are being created by the techies.
 Hence a Chartered Accountant’s expert knowledge is required for getting that red line till the
end.
CONCLUSION
AI, Machine Learning and Deep Learning with its super computational ability combined with its
cognitive capabilities is going to take us to the another different level of era where the world as a
whole will be viewed as Human cum super AI Partnering which will make this world proliferating and
enhancing towards serving the mankind!
REFERENCES
l https://www.researchgate.net/profile/Ma-Louella
Salenga/publication/324183626/figure/fig1/AS:611807588798464@1522877704466/Fields-of-
artificial-intelligence-10.png
l https://upload.wikimedia.org/wikipedia/en/5/55/Haptik-logo.png
l https://img.etimg.com/thumb/msid-74254499,width-640,resizemode-4,imgsize-412413/sophia-
in-red-bengali-saree.jpg
l https://press.razer.com/wp-content/uploads/2021/06/Clearbot_KV_1200_675-1024x576.jpg
l https://upload.wikimedia.org/wikipedia/commons/9/92/Official_portrait_of_Rt_Hon_Sajid_
Javid_MP_crop_2.jpg
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From YouTube: -
l How to use Analytics and AI in Audit by CA Babu Jayendran (In Technological Summit organised by
Digital Accounting and Assurance Standard Board (ICAI)
From Websites referred: -
l https://artificialintelligence-news.com/
l https://www.goodreads.com/author/quotes/87041.Alan_Turing
l https://builtin.com/artificial-intelligence
l https://artificialintelligence-news.com/2021/10/20/uk-health-secretary-hopes-ai-projects-can-
tackle-racial-inequality/
l https://artificialintelligence-news.com/2021/10/15/globaldata-china-is-ahead-of-global-rivals-for-
ai-unicorns/
l Wikipedia
l https://www.hansonrobotics.com/sophia/
l https://bigdata-madesimple.com/top-10-real-life-examples-of-machine-learning/#:~:text=But%20
what%20is%20machine%20learning%3F&text=For%20example%2C%20medical%20
diagnosis%2C%20image,past%20experience%20or%20historical%20data.
l https://www.ibm.com/cloud/learn/machine-learning
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Trends in AI in Contemporary
Industry and Corporate
Sector
Chanu Agarwal
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Artificial Intelligence & Future
of CA
Ritik Chopra
Y
ou may have already heard that AI is everywhere. When you scroll through content on social media, AI is
deciding what you see. When you walk into some banks and ask for loans, AI algorithms decides whether
you deserve it or not. Some companies even use AI to decide who to hire. What you may not have heard
though, is that you can play a part in this revolution.
Firstly, we shall ponder upon and answer the most
asked question in the era of technology- What is
Artificial Intelligence (AI) ?
AI refers to systems that mimic human intelligence
to perform tasks. In simple words these work by
analyzing the data for correlations and patterns, and
using these patterns to make future predictions.
Some basic examples of artificial intelligence which
we see in our day to day lives includes:
• Siri, Alexa
• Self-driving cars
• Chatbots
• Even your Netflix’s recommendations are based on AI
There are many truths and half-truths out there concerning the impact that Al will have across a range of
industries and professions. Estimates are that the use of artificial intelligence will grow approximately $125
billion by 2025.
But now let us address the elephant in the room- Why Should Auditors Care about Al?
To make you understand this, let us see the trend analysis of data.
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According to IBM, the build out of the “internet of things” will lead to the doubling of data every 12 hours.
McKinsey & Company predict that global data by 2025 will be approximately 180 trillion gigabytes. As Data
becomes exponentially large in size, it is difficult to check each and every transaction in limited time. With use
of AI tools, a chartered accountant can do his tasks more effectively and efficiently.
We need to understand that AI is no longer a theoretical possibility; it’s right here. It will continue to evolve,
presenting us with great opportunities. AI tools can be used in auditing, data analysis, accounting, taxation,
portfolio management.
Artificial Intelligence in Audit
While doing auditing, it takes hours if you do manual vouching and bill checking. while the same task would have
been done in about few minutes by using AI. Use of AI in auditing helps in better data analysis through data
segregation, It also helps to do auditing with more accuracy as it reduces human error and helps in detection of
fraud.
For example, a machine can scan a 100-page contract in seconds, whereas a human auditor would take at least
4 hours to complete the same exercise For instance, when PwC deals with mergers and acquisitions, in the
past a team would need to examine hundreds of thousands of lines of non-standardised accounts payable and
accounts receivable data. This was a manual nightmare. So much so that some professional service companies
didn’t dare do this until a deal was already completed. By implementing AI, what took 4-5 months to complete
could now be done within a week. Resulting in a 95% saving in time.
AI’s potential in Auditing

The big four accounting companies, KPMG, Deloitte, EY, and PwC, have already incorporated AI into their
accounting processes. In 2018 PWC used AI powered drones to audit coal reserves at power plant in Wales. The
images from the drone were used to create a point cloud ‘digital twin’ of the coal pile to measure its volume.
The value of the coal was then calculated to within 99% accuracy based on that volume measurement. It is the
first time the firm has used a drone in an audit but it plans to roll out their use when auditing other businesses
as the results were “groundbreaking”. This technology can be used in asset verification and stock audit process.
A concrete example of an AI-enabled process is the document-review platform developed by Deloitte US
innovation that went live in 2014. Deloitte claims that this platform has automated the process of reviewing
and extracting all the relevant information from contracts, and reducing meticulous, laborious human efforts.
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EY Australia has already adopted this digital auditing technology, claiming that 50% of its bank audit confirmations
were lodged using the AI-enabled system. This AI-enabled system can accept and confirm audit requests, process
and provide the auditors with the relevant documentation for final analysis and judgment.
Artificial Intelligence in Taxation
AI applications are now being used by tax agencies to identify cases having characteristics that could indicate
potential fraud. It often helps find subtle clues hidden in mounds of data that are sometimes missed or
overlooked by auditors.
For eg. Indian tax officials have successfully incorporated AI into Goods and service tax administration. In the
first year of this tax, only five cases of fake invoicing were detected and two people were arrested. However, the
next year saw improved detection with 1620 cases of fake invoicing being identified and 154 people arrested.
In the United States, IRS has been using Big Data on its phone surveillance records, tracking social media accounts
and using extensive data mining to develop analytical algorithms for identification of tax compliance issues.
Similarly, the UK Government had implemented big data analytics in their income tax segment and observed
an increase of $ 5.4 billion in tax return revenue.
With a rapid expansion in data, it is becoming increasingly difficult to analyze all of it through traditional
methodologies. Moreover, a country of the huge population like India cannot only rely on traditional methods
of survey.
The Income Tax Department has introduced Big Data Analytics to monitor and track the social networking profiles
of people and find patterns of inconsistencies between their income and spending. Therefore, the Income Tax
Department has launched Project Insight for this purpose.
This means that based on the activities on social
media and the purchasing history, IT departments
can analyze and find out the discrepancies in
the documented earning and actual spendings.
Moreover, the data gathered will include the
addresses of taxpayers and their IT return profiles
Also in Kanpur, IT dept used advance technology to
identify more than 250 street vendors as apparent
millionaires. Further investigation revealed they had
been evading taxes for years, investing in properties.
Artificial Intelligence in Analytics

AI may take away the pain of flipping through hundreds of pages for hours and making reports. A lot of data
collected during auditing and tax preparation is unstructured and prone to human error. AI-enabled technology,
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trained on this unstructured data is increasingly capable of recognizing the errors and streamlining parts of the
process.
• KPMG has built its own portfolio of AI
tools called KPMG Ignite. The KPMG
Ignite offering is designed to enhance
business decisions and process on a
digital platform.
• Call Center Analytics Engine- Utilizes
NLP to design a model to predict future
events and even convert customer
calls to unstructured text, which is
then streamlined to identify keywords,
customer sentiment and predict future
trends.
Next in line for augmentation and automation are advisory services. Using consulting and advisory data, firms
are now training AI networks to learn how to interact with client firms looking for business solutions.
The question of the hour is-
Is AI going to eradicate the prospective job opportunities for us?
OR
Is it a new horizon of possibilities?
Accountants, as expert decision makers, use both ways of thinking – they apply their knowledge to specific
situations to make reasoned decisions, but also make quick intuitive decisions based on extensive experience in
their field. Our intuitive thinking is particularly powerful, reflecting quick learning and high levels of flexibility.
We, humans, are not restricted to the information supplied to us we can think beyond that & that is where the
concept of Professional Skepticism comes as we do not blindly rely on the information provided. Understanding
what it means to be human and caring about human experiences are intrinsically linked to the analysis process.
For example, if we give AI an order to solve world hunger the easiest way to solve world hunger is just to kill
all the life on the planet & then nothing would ever be hungry again. But obviously, this is not what we want.
Therefore it is unlikely that.. an algorithm is going to eradicate our jobs.
AI will do administrative work, repetitive tasks, on the other hand, we will be involved in consultations, data
analysis, people skills, etc. Having better technology doesn’t mean anything if one cannot act on it. But here
we need to understand that:
“You can’t think of today’s job and what technology does to that; you must think of tomorrow’s job and where
technology meets that”
CA’s need to buckle up in the perception game of AI competence, or else they’ll lose business to someone who
puts up a better front.
AI has a remarkable capacity to change our lives. We as prospective Chartered Accountants must equip
ourselves with this astonishing technology. If data is the new oil, analytics is the combustion engine and artificial
intelligence is the steering wheel, then we must be the drivers of this revolution.
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Future of Work in the Era of
Digital Profession
Tanmay Sharma
I
am Tanmay Sharma and in this paper, I am going to discuss Artificial Intelligence and the future of work. Before
dwelling deep into it, let us briefly understand what Artificial Intelligence is? To put it simply and succinctly,
Artificial Intelligence is the intelligence shown by machines. This revolutionary technology has given birth to a
dramatically different class of machines that can think, can reason and can solve problems. It is already filtering
spam from our inboxes, correcting our spelling mistakes,
driving our cars, and deciding what will appear on top
of our social media feeds. A revolution is unfolding. This
phenomenal technology, in many ways, is reshaping the
world around us beyond recognition.
In profound insights, time-consuming tasks and
uninteresting chores; applying AI and Machine learning
have proved to be superior to humans. As a result, we
may leverage them to free up time for jobs that need
human interaction, such as customer service, strategy
planning, and so on.
AI IN MANUFACTURING
AI has a huge impact when targeting many of the largest enterprises. Also, it is increasing industrial competitiveness
in all sectors. Artificial intelligence makes a major contribution to manufacturing’s future development and
prosperity. According to a recent poll, 44 percent of manufacturing sector participants believe AI will be “very
vital” to the production process in the next five years, and 49 percent believe it would be “absolutely critical to
success.”
Undoubtedly, the manufacturing industry is at the forefront of the deployment of artificial intelligence
technologies. Manufacturers are using AI-powered analytics to enhance productivity, product quality, and
employee safety, ranging from large reductions in unexpected downtime to better-designed goods. AI for
corporate applications revenue is anticipated to boost from $1.62 billion in 2018 to $31.2 billion in 2025.
The “low hanging fruit” of AI adoption across sectors is intelligent maintenance of operational industrial
machinery. If applied to constraint resources, its ROI can be enormous, as demonstrated by the prior industrial
cases. In addition to reducing outages, AI-enabled intelligent maintenance lowers maintenance costs and boosts
productivity. It is relatively easy to implement, given the availability of good quality data and the expertise to
analyze. Several integrated solutions are available, both from specialized startups and large players. Intelligent
maintenance adds value in a few variants such as:
• Trying to anticipate when machines/equipment may break and advising on the best times to do maintenance
(condition-based maintenance).
• Establishing a link between events and issues and machine efficiency and failures. Volvo’s Early Warning
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System, for example, makes use of large-
scale databases. The system monitors about
one million events that take place over
machine operations every week, such as
temperature spikes or aberrant pressure
measurements. This enables the company
to analyse their influence on failure and
breakdown rates.
Audi, for instance, has implemented a deep learning-based picture identification system in its Ingolstadt press
shop. Pictures of hammered sheet metal are captured by many cameras mounted directly in the presses. The
AI algorithm analyses the photographs to find even the tiniest flaws in the metal sheets. Numerous million test
photos were pulled from presses in Audi’s Ingolstadt factory as well as several other Volkswagen sites to train
the system. This aided in achieving extremely high precision.
DATA ANALYTICS IN BUSINESS
The next one is analytics, in our profession, we regularly deal with an overwhelming volume of financial data.
With so much data brimming over our capacity, AI will not only remain an aid but a necessity over time. It has
enabled the analysis of complex data sets, at times when such data is in a constant state of change.
Look, the fate of our profession is clubbed with the optimal
usage of this data at our disposal. In my opinion, the
primary role of professional accountants in the future will
be to transform this
abundant financial data into valuable insights. Which in turn
will enable better decision-making. The ability to archive
and analyze relevant data is bringing
multidimensional benefits in the field of decision making,
fraud detection, supply chain management, customer
targeting, creation of new products, and whatnot.
Organizations that can evaluate and comprehend large
amounts of data have a huge advantage in figuring out what’s going on now and in the future. While the
discipline has been around for a long time, the emergence of artificial intelligence (AI) and machine learning
(ML) is allowing data to be analyzed in ways that were previously inconceivable in terms of breadth, depth, and
efficiency. Companies now have more accurate and relevant insights thanks to the availability of high-quality
data, accessibility to algorithms, increased software infrastructure, and increased processing capacity. There are
five key phases in the data analytics operational spectrum:
• Data collection and data cleaning
• Descriptive data analytics and data visualization
• Forecasting and prescription of actionable steps
• Autonomous systems and machine learning
• Artificial intelligence and decision-making
The role of AI in data analytics has allowed companies and organizations to increase their sales, reduce
irrelevant costs and enhance crucial performance indicators such as logistics time, response time and other
essential activities. By 2030, it is expected that 70% of enterprises across the world would use AI in some way in
their operations, generating an additional $13 trillion in US economic activity. 1 The high-tech scene in Calgary
is evolving at a rapid pace, indicating that businesses are eager to embrace digital change. Companies have
demonstrated competence in developing practical solutions for business-to-business (B2B) sectors, having
pioneered the use of intelligent systems’ better decision-making skills in the energy industry. More organizations
are incorporating AI to create solutions in areas such as energy, financial services, marketing, construction,
insurance, retail, agriculture, transportation, life sciences, aerospace, and digital media.
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THREATS
However, a sword is hanging on our heads. AI is encroaching
more and more into our professional territory. See, any task
which has repetition in it can be easily automated. Given
enough time this remarkable technology can surpass human
capabilities in various fields. It’s not a matter of if, it is just a
matter of when.
So, is AI going to eradicate all the prospective job opportunities
for us? Will we become irrelevant in the future or are there new
horizons of possibilities waiting for us? What do you think? Let
me make it clear, that if we consider our future as a person who
is only capable of executing repetitive and monotonous tasks,
AI will certainly replace us sooner than we think. But if we can
go beyond digits and decimals and can offer something more
valuable to our stakeholders and society then only, we will be able to remain relevant and significant.
Technology-driven societal changes, like what we’re experiencing with AI and
automation, always raise concerns and risks. A two-year study from McKinsey
Global Institute suggests that by 2030, intelligent agents and robots could
replace as much as 30 per cent of the world’s current human labour. McKinsey
suggests that, in terms of scale, the automation revolution is as impactful as
the Industrial Revolution during the 1900s in the United States and Europe,
and more recently, the explosion of the Chinese labour economy.
McKinsey reckons that, depending upon various adoption scenarios, AI will displace between 400 and 800
million jobs by 2030, requiring as many as 375 million people to switch job categories entirely. How could such
a shift not cause fear and concern, especially for the professions and activities which are extremely prone to
automation due to AI?
OPPORTUNITIES
Friends, Artificial Intelligence through its advanced analytics can generate massive volumes of information,
data, numbers, and statistics for businesses. We as working professionals must evolve in such a manner that
we can transform information into insight, data into the decision, numbers into the narrative, and statistics into
strategy. Now, it’s time for all of us to reset, reskill and redefine.
Still, to do so, we must continually adapt and evolve and match the pace with this technological advancement.
In 2020 the World Economic Forum has given a list of 10 skills that we need, to thrive in the era of AI. Which
involves skills like Complex problem solving, Critical thinking, Creativity, Judgment, and Negotiation. Therefore,
along with our resolute technical know-how, we must focus on developing these essential skills to touch human
life to its core.
While there are evident perks to AI, using such technology in financial activities can be tricky. AI technology in
accountancy may be as good as the coin with two contrary faces, offering both enticing benefits and drawbacks
that must be addressed adequately.
CONCLUSION
My dear friends, AI has a remarkable capacity to change our life. Business is a continuously evolving domain,
and professionals must conform to these developments. They risk being left behind by many who have adopted
new AI-powered software and services to benefit from the cost and time efficiencies they
promise.
We as prospective Chartered Accountants must equip ourselves with this astonishing
technology. If data is the new oil, analytics is the combustion engine and artificial
intelligence is the steering wheel, then we must be the drivers of this revolution.
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Knowledge
Session 2
Role of CAs in 5 Trillion
Economy
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Start-Ups in India
Sparsh Gupta
S
hri Hardeep Singh Puri in his recent address as the Minister of
Petroleum and Natural gas for India said that India will become
a USD five-trillion economy by 2024-25 and USD 10-trillion by
2030. He further elaborated the contributing sectors towards the
achievement of this feat.
According to various analysis and reports published, a considerable
amount of contribution will be made by the new and young
businessestowards the achievement of this 5 trillion Economy.
Such new businesses are called start-ups.
A business is known as a start-up in India in the initial 10 years of its
incorporation and until it does not cross the threshold of 100 Crores
of Turnover in any of these 10 years.
The idea of Start Up in India
Start-ups were always believed to be Projects for MBA students, until some of them became big corporate
Houses in the past decade.
The examples of such start ups are
1. SpaceX
2. Canva
3. Telegram
4. Byjus
5. Shein
6. OYO
7. Dream 11
All these are Unicorn Start-ups, i.e.,they have crossed the valuation of USD 1Billion.
India alone has 70 such Unicorn Start-ups which is the third highest number in all of the world after USA and
China.
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The idea of start-up was always wandering in India,
until 2016 when PM Modi gave the idea of STARTUP
INDIA in one of his MAN KI BAAT. He introduced
many schemes for the further growth of Start-ups
in India and introduced many Tax holidays as well.
(Will be discussed further.) Recently, the Minister
of Textiles, Commerce and Industry and Consumer
Affairs, Food and Public Distribution Shri Piyush
Goyal launched Start up India Seed Fund Schemeto
provide financial Assistance to start ups in the early
stages of their business.
After the several announcements about tax
holidays and initial funding support, we have seen
many start-ups achieve glory in the past few years. Few of them even became big Corporate Houses and got
listed on the NSE, BSE.
Examples are-
1. Nykaa
2. Zomato
3. Paytm
4. OYO
5. Policy Bazar
WHY Start-ups
If this question is to be answered in one sentence, then I would say that, “The time is now for Job Creators and
not Job Getters.” This statement clearly specifies that the government main objective towards the launching of
such schemes is to create more jobs in the economy for the rising young population, ultimately resulting in the
growth of GDP and achievement of the 5 trillion mark.
India holds a unique position in the world for several reasons, and having one of the youngest populations is
perhaps the most pivotal. With 62 per cent of the population in the working age group and 54 per cent below
the age of 25, we have the advantage of leveraging the skill and ability of our youth to drive the nation forward
through productive output and innovation and hence the Start-Up Market is the best suitable for the Indian
Economy.
Another important factor that answers the question of WHY START-UP, is the presence of such attractive finance
schemes and tax holidays for start-up in India. Some of them are listed below.
a. Pradhan Mantri Mudra Yojna
b. Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTSME)
c. Start-up India Seed Fund
d. 3 YR Tax holiday in 7-year period
e. Exemption from tax on LTCG
And many more...
Role of CA
A CA can either act in his/her capacity as a CA for a start-up or as an Investor/Stakeholder in companies where
he/she is providing Non-Audit Services.
1. Capacity as a CA
a. Tax specialisation
We know that chartered accountants are professionally trained tax professionals. The fact that taxation is
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one of the main areas which are start-up faces beyond the fundamental areas of finance and fundraising
is one of the criteria why chartered accountants play a significant and crucial role to help smoothen the
business operations.
We know that most of the transactions in start-ups specially in the start-up is the e-commerce player requires
a complete an exhaustive structuring in terms of the taxation and the relevant events that a company faces.
Hence the relevancy of a person well equipped with the tax laws whether it may be direct taxation, indirect
taxation or any other tax involved.
b. Finance professional
Chartered Accountants are trained professionals who work in the finance field. For start-ups undoubtedly
one of the most key areas still remains to be fundraising and managing their capital. It is a difficult job to
ensure the important expenses are being met off at the same time the start-up remains in a situation which
is manageable in terms of financial profitability.
In such a situation there are very important areas to manage in terms of the working capital and the core
seed capital of the start-up. Now here how can chartered accountants play a crucial role is important to
understand. I see personally that there are two key areas that to look for, one that one must manage the
banking affairs of the organisation in regard to financial needs like the banking overdraft etc, second is
broader activity of raising capital either by venture capitalists, angel networks or by banking networks.
c. Secretarial matters
Chartered accountants along with other professionals like company secretaries are specialists in the matter
of secretarial compliances. As start-up generally are in the form of a registered company ensuring the
compliances of companies act 2013 is of high relevance. Now the companies act 2013 is an Act full of
complexities and jargons which are changing every day and the notifications are coming very frequently that
are resulting into changing of the law every next day or two. The penal consequence is the act are significant
and start-ups cannot afford to miss the compliances which are relevant to be duly complied with.
Being professionals, it is the role of chartered accountants, company secretaries and cost accountants to
ensure that the start-ups are able to comply and adhere to the norms laid down by the companies act 2013.
d. Start-up scheme
We know that recently our Prime Minister have launched a start-up scheme for developing and promoting
start-ups in India. A lot of of tax benefits and other key liberalisations have been offered these start-ups to
ensure that the country booms with start-ups and the economic growth following it.
The income tax benefits, the tax holiday period benefits, the freedom from inspector raj, the reduction in
the cost of patenting, digitalisation, smoother incorporation and number of other matters will require a
clear due diligence before it is implemented in the start-up.
e. Compliance check up
In this modus of operation instead of choosing a full-time or part-time compliance officer one can appoint
a chartered accountant to do the compliance audit of the organisation and identify key areas of non-
compliances which should be addressed and immediately worked upon.
A chartered accountant is in a situation to best understand and identify what are the areas which will require
an addressable and attention before the company can be presented to a venture capitalist for the infusion
of funds.
2. Capacity as an Investor/ Top Management Official
When Chalo.com founder Vinayak Bhavnani broached an idea for fundraising
with his Chartered Accountant, he was in for a surprise. He further made an
offer to Mr. Bhavani that he couldn’t refuse, he ended up taking a stake in his
company, although to comply with the code of ethics he no longer provided
any Audit or other related services to the Company.
The above is not the only case where a CA ended up as an Investor in any Start-up Companies. Another
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example could be 100x. VC. It’s a Venture Capital Company that provides financial assistance to budding
start-up companies.
Mr. Ninad Karpe who was a practicing CA for the last 13 years joined
100x VC as a Partner in 2019, and since the past 2 years the company
has invested in 60 Early Age Start-up and plans to invest in 100 more
till the end of the year 2022.
The question that comes up now is that, whyis CA nowadays investing
in such start-up companies and why are some even starting their
own start-up company and why are the existing start-up companies encouraging the CA fraternity to join
their business??
The following points answer the above questions.
1. WIN WIN for all
This is proving to be a win-win situation for both the start-up and the investor. While the start-up gets all the
services, including ideation on technical grounds, incubation and mentoring, the investing CA can see the
upside of an investment if the start-up makes it big.
2. Holistic Advice
With a CA, a start-up gets holistic advice on all corporate law, accounting, tax and legal matters. A CA is a
generalist and can manage all non-business services for a start-up, which can then focus on the business and
operations.
3. Delegation of Authority
According to industry executives, most of the time techies who are starting their own venture are not
comfortable around taxation and legal issues. This is where they hire a CA to be the CFO or any other related
post and delegate the authority of Finance to him/her so that the founder members can explore more
business opportunities and communicated the finance needs to their CFO. Many big corporate houses have
their CFO as a CA.
Examples of these can be
a. Samir Seksaria, CFO TCS
b. Nilanjan Roy, CFO Infosys
c. Sameer Shah, CFO Godrej Consumer Products
d. Niranjan Gupta, CFO Hero Motocorp
e. Vikas Garg, CFO Paytm
f. Akriti Chopra, CFO Zomato till from April 19 to October 20, now Founder.
The Way Ahead
Other than joining a Start-up Firm as a CFO or as an Investor, there exists one other opportunity that the Indian
CAs are yet to explore in the start-up world.
TO START THEIR OWN CONSULTANCY STARTUP FIRM.
The future of our profession is in Consultancy Service and not Compliance.
Question now arises, how will it be different from a regular CA Partnership Firm/LLP??
In the years ahead our fraternity has to build circumstances wherein the client is forced to avail our services as
his business needs our advice on any subject possible, be it Treasury Consultancy, IT Consultancy, Tax Planning
not Tax or Statutory Audit wherein the client has nowhere else to go other than a Chartered Accountant.
Conclusion
The role of a CA and Start-up is crucial for the achievement of the 5 trillion Mark and it is India’s best bet as to
achieve this feat on target time.
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Start-up are basically businesses and no other profession in the world generates as much Job Opportunity and
Cash Flows to the country as a business does.
We have real lige examples such as CA. Kumar Mangalam Birla who is said to be the richest CA in all of India.
He is the Chairman of the Aditya Birla Group and Vodafone Idea Limited with a net worth of 13.7 Billion USD.
CA have always proved to be good and sucessful businessmen because of the Finance Knowledge that we
inherit. We are not only qualified to sign a balance sheet of a listed entity but are also capable of running one.
Hence, the idea of CA, Start-up, Business, they all go hand in hand.
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Ease of Doing Business and
Ease of Living to Promote
Private Investments
Sai Charan
A beneficiary of Jan Aushadhi Scheme says -
Another beneficiary named Sandeep says–
Above examples are related to Ease of Living in India but what exactly is “Ease of Living”?
We all want a smooth, hassle free, tension free, pleasant and comfortable life. We also want as citizens a
dignified, respectable existence devoid of shortages and struggles in our daily lives.
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Ease of Living is all about making “Life Easy”& hassle free through “Reduced Burden of Compliances”.
 How it started?
In 2019, Prime Minister Shri Narendra Modi envisioned an interface between citizens and government for the
Ease of Living in Independence Day speech in 2019, to remove all hassled related to government offices work
which will indirectly lead to Ease of Doing Business & Promote Private Investments in India.
To translate this vision into reality, DPIIT (Department for the Promotion of Industry & Internal Trade) was
created as a Nodal department for this exercise.
 Ease of Living of Doing Business

Before connecting Ease of Living & Ease of Doing Business, let’s know the following fact - “India ranks 63rd in
the World Bank’s annual Doing Business Report (DBR), 2020 as against 77th in the DBR 2019 registering a jump
of 14 ranks”.
 What is “Ease of doing Business” by the way?

The Ease of Doing business index is meant to measure regulations directly affecting business and a Nation’s rank
is based on the average of 10 indicators viz.
 Starting a business
 Dealing with Construction Permits
 Getting Electricity
 Registering Property
 Getting Credit
 Protecting Minority Investors
 Paying Taxes
 Trading across Border
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 Enforcing Contracts
 Resolving Insolvency.
Making each of the above step easy is “Ease of Living” & it leads to “Ease of Doing Business”.
The Rank of a nation in the above index will attract large private investments & will show how easy and feasible
it is to start a business in India.
 How Business became Easy in India?
1. Starting a Business:
Introduction of SPICE+ and AGILE PRO form by Ministry of Corporate Affairs (MCA) saves time and effort required
for a nascent Company Incorporation. This form combines various services like PAN/TAN/Director Identification
Number/GSTN etc.
2. Dealing with Construction Permits:
India made dealing with construction permits less cumbersome by implementing an Online Building Permission
System (OBPS) that has streamlined the process at the Municipality of New Delhi and Municipality of Greater
Mumbai. The online system has streamlined the process of obtaining a building permit, thereby reducing the
number of procedures and time required to obtain a building permit in India.
India will now be counted among the top nations in the world where it is easiest to obtain all permits related to
construction.
3. Registering Property:
Digitization of land records has been one of the top priorities to bring efficiency and transparency in property
related transactions. It allows citizens to view property transaction records in a digital mode (In Delhi & Mumbai).
4. Enforcing Contracts:
Faster resolution of commercial disputes is pivotal to boost investor confidence in the dispute resolution
mechanism of the country. Dedicated Commercial Courts have been established in Delhi and Mumbai dealing
exclusively with commercial cases. Adoption of technology for case management by lawyers and judicial officers
is leading to speedier dispute resolution.
A portal has been started by Department of Justice for Enforcing Contracts:
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5. Resolving Insolvency:
Introduction of Insolvency and Bankruptcy Code of India (IBC) in 2016 was a game changer in resolving insolvency.
The Code has seen success as the creditor is in charge rather than debtor in charge. The increase in recovery rate
to 71 % is evidence of its success. This law is evolving and once a long drawn and painful process, of closure of
business is now a faster and more efficient process.
6. Trading across Borders:

Time and cost to export and import has been considerably reduced by electronic sealing of containers,
upgradation of port infrastructure and allowing electronic submission of supporting documents with digital
signatures.
India Customs Electronic Gateway (ICEGATE) has been introduced which allows traders the facility to lodge their
clearance documents online at a single point.
7. Decriminalization of Companies Act 2013 & LLP Act 2008:

The Companies Bill has decriminalised 48 sections by removing or reducing penal provisions and omitting
imprisonment for various offences that were considered procedural and technical in nature, a move that will
help corporates in ease of doing business.
Following were the major highlights in LLP Amendment Act 2021:
 Penalty threshold reduced from Rs 5 lac to Rs 1 lac for LLPs & Rs 50,000 for partners.
 Term of Imprisonment for any fraudulent activity increased from 2 years to 5 years.
 Setting up of Special Court for offences under the Act.
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 Concept of Small LLPs introduced.
 Ease of Living Reforms in India
The Government of India is determined to put in place an investment friendly ecosystem that strongly supports
domestic as well as foreign investments.
To translate this vision into reality, the next generation of reforms are focused on reducing compliance burden
for businesses and citizens. Many compliance requirements have become irrelevant and unnecessary with
changing times and technological development.In line with the same, a time bound systematic exercise across
Ministries and States is being coordinated by DPIIT.
Following are some of the examples of reforms taken by DPIIT:
1. DGFT Trade Facilitation App
It helps to access your trade dashboard anytime anywhere; Explore item-wise Export-Import Policy and statistics;
Track your IEC Portfolio; Real time alerts on status of applications and many more services at your fingertips.
2. e-Courts Services App

To access laws, regulations and case law, forms to be submitted to the court; file briefs & documents with the
court; view court orders; and so much more in a few clicks.
3. Mera Ration App
National Food Security Act (NFSA) beneficiaries can locate the nearest fair price shop, verify details about their
food grain entitlement, manage transactions, and get food grains from any fair price shop in India.
4. Umang App
UMANG (Unified Mobile Application for New-age Governance) is a single platform where more than 2100
e-Governance services, from Central to local government bodies, can be accessed from anywhere at any time
from a mobile phone.
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5. Parivahan
The Parivahan portal has led to computerization of over 1300 Road Transport Offices across India. Thus, digitizing
vital services like Driving and Learners’ license, renewal of license, updating of address and a plethora of other
such services.
6. NIDHI
National Integrated Database of Hospitality Industry (NIDHI) portal ensures electronic delivery of various services
and benefits to the hospitality industry. The Portal integrates all hospitality organizations on one platform
thereby facilitating adoption of best practices.
7. SUGAM
Termed as ‘e-Governance solution for CDSCO & State Food and Drug Administration’, the new version of SUGAM
portal provides a comprehensive database of various permissions and licenses issued by State FDAs. The portal
includes details of manufacturers, manufacturing site and drug formulations.
8. PARAKH
‘PARAKH’ portal brings all accredited, certified and recognized laboratories in the country on one single platform.
The Portal is a landmark initiative to strengthen the quality ecosystem.
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9. VIDYANJALI
Vidyanjali is an initiative taken by the Ministry of Education, Government of India. It connects schools with
volunteers who can contribute towards strengthening school education in the country.
10. e-SHRAM
The first time in India, e-Shram enabled building of a comprehensive national database of workers in unorganized
sector, thereby making them eligible for social security schemes of the Government of India.
• With an aim to improve cities – GOI has started releasing the Ease of Living Index &the report focused on
four parameters to determine the ease of living index score of each city, which are:
 Quality of life
 Economic ability
 Sustainability
 Citizens’ perceptions.
Now, let’s find How Ease of doing Business Reforms and Ease of Living have impacted Private Investments in
India and their position.
 Investment Climate in India
Investment climate in India has improved considerably since the opening up of the economy in 1991.
This is primarily attributed to ease in FDI rules in India which made India today to be part of the top 100
countrieson Ease of Doing Business.
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Total FDI inflows in the country in the last 21 years (April 2000 - March 2021) are $763.5 Bn while the total FDI
inflows received in the last 5 years (April 2014- September 2019) was $319 Bn which amounts to nearly 50% of
total FDI inflow in last 20 years.
 Major Credit behind FDI & Private Investments: INVEST INDIA
Setup back in 2010 & revamped in 2015-16, Invest India is the most awarded investment promotion agency in
the world.
Invest India is the advisor, guide, and facilitator to every investor looking to make a home in India.
Stakeholders being the Government of India (GOI) holding 49% equity, the rest is equally divided among three
industry bodies — CII, FICCI and NASSCOM.
Between October 2014 and September 2017, Invest India brought in foreign investments worth $7.4 billion,
leading to the creation of 94,312 jobs.
 The way forward: CA’s role in 5 Trillion Economy
India set to be USD 5 trillion economy by 2025, says President Ramnath Kovind at the Platinum Jubilee
Celebrations of The Institute of Chartered Accountants of India (ICAI).
In his speech, he added the important role of CA’s as facilitators of taxpayers and of the taxation system as well
as watchdogs of public trust.
 CA’s Role in Start-ups and Private Investments:
Start-ups are the power boosters of Economy. They play a huge role in Rankings of EODB & promoting Private
Investments& a CA plays a huge role here at the beginning.
Usually, start-ups are formed by Engineers and New Businesses by other people who usually do not possess
the knowledge about legal environment. This is where the Chartered Accountants prove helpful - Experienced
Chartered Accountants are skilful and therefore, they know everything that you and your startup would need.
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CA’s can provide the following types of Services in start-ups:
 Formation, Registration & Compliance
 Registrations under Tax Laws
 Annual Compliances
 All kinds of Audit
 Due diligence
 Project Report, Subsidy approvals
 Controls & Process Designing
 Conclusion:
Coming to the Role of CA in a Start-up – It’s of a Spouse. CA’s play the role of a Spouse to the start-ups. Startup
is difficult & CA’s understand their pain, so CA’s shoulder their responsibility, partially.
India’s progress in Ease of Doing Business (EODB) & Ease of Living to promote private investments has been
phenomenal in last few years.
It is said – “Improvement should never stop & there’s always a Scope”. With consistent Efforts of Nation & the
contribution of our profession, India’s target of achieving the 5 Trillion Dollar Economy is not far away.
Major References:
 https://www.investindia.gov.in/
 https://dpiit.gov.in/
 YouTube Channel: Ease of Doing Business EoDB India
 Quora Articles
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Digital Opportunity and
Digital Ecosystem
Bikash Kumar Singh
Introduction
N
ew technology emerges daily in this digital world. Businesses have been integrating technologies into
their different processes to streamline tasks, boost productivity and offer a better experience to clients
and customers.
We see hundreds of new and emerging startups rising every day across all the industries. The secret of success
is not coming from any crystal ball; perhaps it solely depends on ,“What are you trying to solve with your idea
and how?” The concept and success of companies like Uber, Lyft or AirBnB is driven by answering that very
question. Someone somewhere identified a few general problems faced by people in their daily lives and simply
spun off ideas to solve those problems. I don’t deny that some successes results from a random apple falling on
a passing Newton to spark an idea, but easy access to technology catalyzes these ideas into successful business
models. In any industry, the distinct line between providers, consumers, and mediators is slowly fading. What
is making all this possible?
No matter what industry we talk about, there are usually three pillars of any organization. People, process, and
technology. To be successful at what anyone does, they need to clearly identify these three factors in their line
of business and design strategy to drive them.
What is Digital Opportunity?
Suitable circumstances that leads to increasing your digital or online presence is called digital opportunity. It
starts with you having clear goals regarding your approach towards making your presence more useful to your
audience. Then comes the technology or way through which you want to establish your online presence. The
final step is the investment that you are going to make for this long term goal.
What is Digital Ecosystem?
A digital ecosystem is a network of inter-connected companies or products. In some cases, digital ecosystems
consist of two or more companies partnering together to offer a wider range of products or services than they
could on their own. In other cases, a single company creates an ecosystem of connected products in a suite
offering.
Example Of Ecosystem
Amazon is one of the world’s top seven companies and a well-known example of a robust digital ecosystem. It
has a variety of in-house products and platforms, as well as a network of partnerships with other companies.
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How Digital Ecosystem Creates Opportunity ?
1. Better prepared for economic change or global issues
A robust set of partnerships or products can help your company adapt to rapid economic changes. If demand
drops for one product, you can change your strategy to focus on another without having to start from scratch.
Or you can lean on your partner companies. With combined resources, you might be able to pivot more quickly
to meet changes in demand.
You can see this in action by looking at how companies with robust ecosystems could adapt to economic changes
brought on by the COVID-19 pandemic. Uber’s in-house ecosystem consists of ride-sharing services and other
transportation-based services, such as its food delivery program Uber Eats.
The pandemic caused ride bookings to drop by 75%. But at the same time, demand for Uber Eats more than
doubled. Having a strong internal ecosystem enabled the company to withstand what could have been a
devastating economic event.
2. Build customer loyalty with a ‘family’ of products
Encourage people to buy from you by offering a suite of interconnected products. It’s more convenient for
customers if they can get everything they need in one place. Incentivize them even further by providing package
discounts if they buy multiple products at once.
For software companies, offer a single sign-on process. This way users don’t need to make multiple logins for
each of your products. This added convenience further encourages them to buy everything from you.
Apple has one of the most complete product families of any company. It sells a full range of products that work
together in a user-friendly manner but aren’t easy to pair with non-Apple devices. Apple laptops, tablets, and
smartphones all come equipped with Safari (Apple’s browser), iCloud (Apple’s cloud platform), and the Apple
App Store. As an added brand-loyalty incentive, Apple offers discounted product packages.
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Once a customer has an Apple product, there’s no reason for them to look elsewhere for related devices or
services—the company offers just about everything you need. On top of that, Apple products work very well
with each other, but they don’t integrate well with products from other companies – meaning easy integration
with your existing products and services.
This benefit will continue to grow as consumers and businesses alike adopt IoT-powered smart devices. For
example, Google offers smart-powered lights, blinds, home security systems, door locks, and more – all
interconnected in a digital ecosystem.
3. Quickly create new revenue streams
Partnering with companies that already have the infrastructure in place allows you to roll out new products or
services in a shorter time. In some cases, it can shorten your time-to-product by months. This is the case for
companies that partner with Bond, a fintech startup.
Bond connects with companies that want to offer branded banking products, like credit or debit cards. It can
take upwards of 18 months for companies to build these products on their own. Partnering with Bond shortens
this time considerably because Bond already has all of the software and infrastructure in place.
Another example comes from Alipay, an online payment platform. Alipay worked with partners to expand its
lifestyle platform in response to COVID-19. Within three weeks of the onset of the pandemic, the company
rolled out multiple new features, including:
• Online consultations with doctors
• Live infection-tracking map
• Insurance offerings for frontline workers
• Food delivery services.
In both of these examples, creating a digital ecosystem enabled the business to build new products or features
in a much shorter time frame than they could have otherwise achieved.
4. Lower customer acquisition costs
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One other way a digital ecosystem can benefit your company is by making it less expensive to acquire new
customers. Multi-company ecosystems give you access to an expanded customer base without spending
additional money on advertising or other customer acquisition costs (CAC). According to a McKinsey study,
banks with robust ecosystems see 10-20% savings on CAC.
In part, this is because of the new features or products you have access to, thanks to the partnership. You can
offer these features as a value-add for new customers without the cost of creating them from scratch.
You also lower your CAC costs by adding your partners’ customer base to yours. You can see this in Citibank’s
partnerships with PayPal. The company instantly expanded its potential client base to include PayPal’s 300
million customers.
Citibank’s network of partnerships also includes Google. The connection helps Citibank attract younger, more
digitally minded customers, and it gives the company access to Google’s data analytics capabilities. Since Google
already has analytics tools in place, this is less expensive and time-consuming than if Citibank had to build its
own.
The Way Towards $5 Trillion Economy.
1. Increase Ease of Business and Ease of Living to promote private investments Over the last four years, the
government has scrapped over 1,300 antiquated law. It has done away with a lot of archaic procedures, rules
and regulations. Through a series of reforms, India has jumped up 65 positions in The World Bank Ease of Doing
Business. No other large country has been able to do this. India has jumped up 65 positions, but our challenge
is that in the next two years India must reach the top 50 and in the next five years reach the top 25.
2. Urbanization – a big driver of growth Cities account for less than 5% of the earth land mass, but they account
for over 75 % of the global GDP! So, Urbanization in cities is important as they are centres of economic growth.
While the process of urbanization has ended across America and Europe, and matured in China, it has just begun
in India. In the next 5 decades, India should see more Urbanization than what we’ve done in the last 500 years.
While there will be many challenges, India needs more Urbanization to grow rapidly.
3. Globalization for growth India exists in a globalized and interdependent world. Like in Japan, Korea and China,
Globalization has helped large sections of population to be lifted above the poverty line. India’s share in global
export is less than 2%. So, India must learn the art of size and scale, of manufacturing to size of scale and to
penetrating.
4. Women Participation is key India cannot grow at high rates over a 3-decade period without gender parity.
In India, only 26% of the women work; the worldwide average is 48%. If such a major chunk of the population
is not working and we consciously don’t put women into positions of power, it will be very difficult for India to
grow.
Role Of Chartered Accountant In The Process
Develop a robust audit ecosystem
• Commitment to continuous improvement, such as through the creation of resources for the auditing
profession;
• Collaboration with partners across the financial supply chain on key issues like strengthening audit
committees and fighting fraud;
• Policy engagement on top issues, such as the development of audit quality indicators, enhancing disclosure,
and the debate over mandatory retendering and rotation;
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Auditors as Enabler of Trust
• By fostering high quality performance by public company auditors;
• By convening and collaborating with other stakeholders to advance the discussion of critical issues requiring
action and intervention;
• By advocating policies and standards that promote public company auditor’s objectivity, effectiveness, and
responsiveness to dynamic market conditions.
Challenges in the Process
• The increasing complexity of business transactions,
• The development of principles-based auditing and accounting standards, and
• The increasing focus on estimates and other highly subjective elements.
Conclusion
Digital Ecosystems are commonly described as open, loosely coupled, self-organizing digital environments in
which the constituent agents or species are proactive and responsive for their own benefit. Digital ecosystems
show interesting research and applications in economic, social, and political sectors and deal with the complex
dynamic problems in complicated digital environments. In this paper I have discussed what is digital opportunity,
Digital Ecosystem and how they are related. We also discussed how India can become a $5 Trillion economy and
the role of Chartered Accountant in the process.
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Achieving 5 Trillion Economy
Via Net Zero Carbon Mission
Anup Kumar
I
ndia is at the cusp of two significant transformations. The first is its economic transformation. India will
soon be the most populous country in the world – and will be home to one of the youngest populations
in the world. The country is also home to a large population that lives below the poverty line. A rapid and
equitable economic growth will be critical to meet the growth and lifestyle aspirations of 1.4 billion people. The
manufacturing sector will need to grow to supplement the impressive services sector economy and cater to the
large population living off the agrarian economy.
India is the 6th largest country in the world in the terms of GDP as per 2020 census having $2.63 Trillion
economy. According to World Bank data, India became the world’s sixth largest economy in 2017 surpassing
France.
But $5 trillion economy via Net Zero Carbon is a Reality or fantasy?
At current exchange rate of $ i.e. ` 74.47, It is `3,72,35,000 crore
of gross domestic product (GDP) at current prices.
As India is competing with the developed nations, it is difficult to
achieve $5 Trillion economy via Net zero carbon but not impossible.
Before we know that we can do it is important to know what is Net
Zero Carbon.
Net-zero, which is also referred to as carbon-neutrality, does not mean that a country would bring down its
emissions to zero. Rather, net-zero is a state in which a country’s emissions are compensated by absorption and
removal of greenhouse gases from the atmosphere. Absorption of the emissions can be increased by creating
more carbon sinks such as forests, while removal of gases from the atmosphere requires futuristic technologies
such as carbon capture and storage. This way, it is even possible for a country to have negative emissions, if
the absorption and removal exceed the actual emissions. A good example is Bhutan which is often described as
carbon-negative because it absorbs more than it emits.
US President’s Climate Envoy in India. One point of discussion could be the net-zero goal for 2050, which the US
wants India to be on board on. What is net-zero, and what are India’s objections?
Visit to India trying to rekindle a climate change partnership that had been all but put on hold during the four
years of the Donald Trump administration.
In its bid to reclaim the global climate leadership, the US is widely expected to commit itself to a net-zero
emission target for 2050 at the summit.
Several other countries, including the UK and France, have already enacted laws promising to achieve a net-zero
emission scenario by the middle of the century.
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Canada, South Korea, Japan and Germany have expressed their intention to commit themselves to a net-zero
future. Even China has promised to go net-zero by 2060.
India, the world’s third biggest emitter of greenhouse gases, after the US and China, is the only major player
holding out. One of the objectives of Kerry’s visit is to explore whether New Delhi can be nudged to drop its hard
opposition, and open up to the possibility of pledging itself to a 2050 net-zero goal.
The UK will host the COP26 UN climate change conference from October 31 to November 12. The event will
see leaders from more than 190 countries, thousand of negotiators, researchers and citizens coming together
to strengthen a global response to the threat of climate change. It is pivotal movement for the world to come
together and accelerate the climate action plan.
This year marks the 26th conference of parties and will be held in the Scottish event campus of Glasgow. The
conference comes months after the intergovernmental panel on climate changes (IPCC) published its assessment
report on earth’s climate, Highlighting heat waves, droughts, extreme rainfall and sea-level rise in the coming
decades.
Since the Paris Agreement on climate change in 2015 there have been major changes to the context surrounding
the global effort to combat climate change. Across the world, efforts towards “green new deals” have intensified
— policy packages that combine measures towards de-carbonization and adaptation with those that would
increase livelihoods and create wealth.
IN THIS CONFERENCE PM NARENDRA MODI SAID “ INDIA IS THE ONLY COUNTRY THAT IS DELEVERING IN “LETTER
AND SPRIT” ON DECLERATION COMMITMENTS ON TACKLING CLIMATE CHANGES”. Promised in Paris agreement
WHERE OTHER COUNTRY IS NOT ABLE TO DO SO.
PM MODI ‘PANCHAMARIT’ TO TACKLE CLIMATE CHANGE
 BY 2030- Non fossil Fuel generation to increase by 500 GW.
 By 2030 India will increase 50% renewable energy.
 Carbon emission to reduced by 1 Billion Tonne.
 45% reduction in Carbon intensity.
 Net Zero emission by 2070.
If we want to achieve the set target of $5 Trillion economy
De-carbonization of Energy-
via Net Zero Carbon then the following pillars will help us
to do that.
1 Intensive Industries
PILLAR 1: DE-CARBONIZATION OF ENERGY INTENSIVE

INDUSTRIES ----.India’s manufacturing industries are a key
2 Renewable Energy
contributor to its CO2 emissions, with the iron and steel,

cement, and chemicals and fertilizers sectors having the 3 Electric Vehicles
highest emission footprint13. Given projected economic

growth and urbanization, demand from these sectors is
expected to grow. Unfortunately, this growth will mean
4 Sustainable Agriculture
proportionately higher GHG emissions in the business

as- usual scenario. At a time when India is substantially
5 Green Buildings, Infrastructure and Cities
accelerating its manufacturing growth, it will be critical to evolve a carbon-neutral, industrial-growth model.
With energy/feedstock contributing to a significant proportion of the overall cost of the final product in
these sectors, and given inadequate willingness/ability from customers to pay a premium for green products,
investments in GHG reduction technologies are often financially unviable. Over the past decade, regulatory
mechanisms such as the Perform, Achieve and Trade (PAT) scheme have helped drive adoption of specific
quick-win measures where GHG reduction is also EBITDA positive – improved energy and thermal efficiency,
waste heat recovery systems, and partial substitution of high GHG feedstock (e.g. clinker reduction in cement).
However, radical de-carbonization of these sectors will require a combination of:
 Demand-management measures such as circular economy
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 Continued energy-efficiency improvements
 Electrification of heat with zero-carbon electricity where applicable
 Carbon capture, utilization and storage technologies.
 Zero-carbon fuels such as biomass and green or blue hydrogen.
PILLAR 2: RENEWABLE ENERGY ----- India is the world’s third-largest electricity consuming nation. The energy
sector (comprising electricity, heat, and other fuel combustion) accounts for ~40% of India’s emissions, with the
combustion of coal contributing to 65% of total fossil CO2 emissions. Both oil and natural gas have been steadily
gaining share in India’s total energy supply4. Over the coming decade, Indian energy consumption is expected
to grow at ~4%-5% CAGR, driven by overall economic growth and rising per capita income levels. India’s energy
sector de-carbonization will need holistic interventions across all its fossil-fuel sources (coal, gas, oil). In addition,
innovative ways need to be identified to reduce emissions in energy transfer to consumers via transmission and
distribution networks While renewable are already cheaper than new-build, coal-fired plants in India, new coal
plants might still be needed to meet India’s growing energy needs. In this context, India’s green energy transition
can be accelerated with more sophisticated renewable solutions (hybrid+ thermal, storage, bundled solutions).
As per recent estimates, achieving India’s net zero aspiration by 2070 will need its coal power to be entirely
phased out by 2060 and it’s solar and wind capacity to grow from 100 GW today to more than 7400 GW by 2070.
This accelerated green replacement journey will need substantial investment in new energy infrastructure in the
coming decades to reconfigure the electrical grid and fuel supply chains for new energy flows.
PILLAR 3: ELECTRIC VEHICLE ---- India’s transport sector contributes to ~10% of its GHG emissions. In 2020, an
estimated 60% of India’s final energy use in transport arose from passenger transport and 40% from freight
transport.
India’s green mobility transformation will be driven by two critical levers:
 Shift in Transport Modal Mix (from Road to Rail and other public transport).
 Green Fuel and Green Vehicles (like electric vehicles, sustainable fuels, fuel efficiency, hydrogen mobility).
PILLAR 4: SUSTAINABLE AGRICULTURE ----- Agriculture and livestock account for 18% of gross national emissions.
Agriculture typically accounts for ~80% of total nitrous oxide emissions, mainly from the application of fertilizers
– both synthetic nitrogen and manure added to soils or left on pastures. It also contributes to an estimated 45%
of total methane emissions21. Around 80% of agricultural methane are emissions from livestock production,
including enteric fermentation and manure management.
The second largest contributor of agricultural methane emissions is rice production, with the remaining
emissions from the burning of savanna and the use of crop residues for agricultural purposes. Both nitrous
oxide and methane are significantly more powerful than carbon dioxide in driving warming over a span of 20
years – making sustainable agriculture an urgent priority.
While the agriculture sector contributes to climate change due to GHG emissions, it is also severely impacted
by the effects of changing climate. Climate change is threatening India’s agricultural growth with frequent dry
spells, heat waves and erratic rainfall. With a growing population and the need to enhance food production,
the challenge of meeting the increasing demand for food production while controlling and reducing the GHG
emissions from agriculture is likely to be a tricky balance to achieve. In the coming decades, the shift to sustainable
agriculture will be one of the most complex transitions for India. It will require a campaign to empower, educate
and enable more than 100 million farmers to adopt precision agriculture (especially in terms of modernizing
rice cultivation, reducing nitrogen/urea usage, and scaling low- and no-tillage practices), sustainable animal
husbandry (a series of measures to reduce methane emissions from livestock), and green energy (shifting diesel
pumps to renewable energy and adoption of electric farm equipment).
PILLAR 5: GREEN BUILDING, INFRASTRUCTURE AND CITIES : ---- India’s top 25 cities contribute to more than 15%
of India’s estimated GHG emissions. Further, the top cities are estimated to have average per capita emissions of
2.6 tons of CO2 equivalent, which is 40% higher than India’s per capita emission of 1.8 tons of CO2 equivalent.
India will continue to urbanize through this century, with urban population projected to grow from ~480 million
today to 814 million by 2050.
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This relentless growth in urbanization has led to the emergence of unplanned and unstructured urban sprawls.
The cost of unplanned urban cities has already manifested in a multitude of ways, as witnessed in deteriorating
green cover, urban heat islands, the exhaustion of energy resources and high pollution levels.
In India, there is a growing need to plan cities better and build low-carbon infrastructure as cities evolve. We
identify two critical levers for India’s transition to Greener Cities, Buildings and Infrastructure:
 Efficient urban planning
 Low-carbon buildings and infrastructure
Conclusion
The five pillars and four enablers for a green transition in India are all dependent on the continuing advancement
of the three drivers of Indian growth: technological development, financial innovation and strong political
leadership. These three drivers have put India in a position where it can put together two challenges, such as
development aspirations and the climate crisis, and emerge with a solution.
It is time to expand the benefits of technology, finance and leadership to the other pillars of an Indian Green New
Deal discussed above. Over time, as India restructures its mobility sector, its land use, and its cities in keeping
with a new green development paradigm, it will demonstrate its own global leadership and create templates for
other emerging economies to follow. India’s green growth is not for itself alone: it will have a multiplier effect,
blazing a trail that combines inclusive prosperity with de-carbonization.
Name - Anup Kumar
SRN- CRO0613721
City- Ranchi, Jharkhand
Contact No.- 6204859148
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Knowledge
Session 3
Forensic Audit
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Black Hat v/s White Hat
(Ethical) Hackers
Saumya Shah
INTRODUCTION
If you watch the news and keep up with the technology, you know what a hacker is, but you may not realize
hackers fall into different categories known as black hat, white hat and grey hat. The terms derive from the old
western movies of American popular culture, where the protagonists wore white or light colored hats and the
antagonists wore black hats.
This paper explores hacking from the perspective of ethics. It starts by defining hacking together with giving its
brief history. The paper then explores a case study where a big accounting consultancy firm was trapped in the
hands of the hackers.White hat and black hat hacking are the actions being tested for ethics, and the ethical test
is utilitarianism. The specific provisions of utilitarianism are given and incorporated in determining whether the
ethical test is pro ethical or con ethical.
HACKING
• Meaning:
Hacking is an attempt to exploit a computer system
or a private network inside it. Simply put, it is the
unauthorised access to or control over computer
network security systems for some illicit purpose.
Hacking in most cases, is illegal.
• History of Hacking:
The history of hacking goes back to 1965 when
William Mathewsworking at Massachusetts
Institute of Technology (MIT) discovered that the
Compatible Time-Sharing System (CTSS) could
be compromised to display system password to anyone logged into the system.This discovery, albeit
accidental, laid the foundation for hacking as known today.
However, the first known hacker was John Drapper, who invented “a method of making free long distance
calls, with the help of a toy whistle given away with his cereal”. The method was nicknamed as ‘Blue-Box’,
which was mainly used for communication purpose.
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HACKERS
• Meaning:
It refers to someone highly skilled who can gain unauthorized access to other computers. One can easily
assume them to be intelligent and highly skilled in computers. In fact, breaking a security system requires
more intelligence and expertise than actually creating one.
• Types of Hackers:
What determines the type of hackers is their motivation and whether they are breaking the law. The
difference between the several forms of hacking hinges on the hackers’ motives, on which the ethicality
of hackers depends.
Currently, there are two common forms of hackers, i.eBlack Hat and White Hat hackers.
BLACK HAT HACKERS
Black hat hackers are criminals who break into computer networks with malicious
intent. They may also release malware that destroys files, holds computers hostage,
or steal passwords, credit card numbers, and other personal information.
Their motivations are of diverse nature, some are political, environmental, monetary
or recognition. Sometimes their motivation might be ideological, by targeting people
they strongly disagree with.
The leading black hats tend to be skilled hackers who work for sophisticated criminal
organizations which sometimes provide collaboration tools for their workers and offer
service agreements to customers, just like legitimate businesses.
Their Workings~
Black hat hackers often develop specialties, such as phishing or managing remote access tools and work alone
or with organized crime organizations for easy money.
Some black hat organizations even have call centers, which they use to make outbound calls, pretending to work
for a well-known technology organization such as Microsoft. In this scam, the hacker tries to convince potential
victims to allow remote access to their computers or download software. By granting access or downloading
the recommended software, the victim inadvertently enables criminals to harvest passwords and banking
information or surreptitiously take over the computer and use it to launch attacks on others.
Black hat hacking is a global problem. Although authorities sometimes succeed in shutting down a hacking site
in one country, the same operation may run elsewhere, allowing the group to keep going.
Examples~
Kevin Mitnick: One of the most famous Black hat hackers who, at one point, was the most wanted cybercriminal
in the world. He hacked into over 40 major corporations, including IBM and Motorola, and even the US National
Defense warning system. Later on he was arrested and following his release, he became a cybersecurity
consultant serving as a white hacker.
Tsutomu Shimomura: Another well-known example, who is a cybersecurity expert credited with tracking down
Kevin Mitnick. A computational physics research scientist, Shimomura also worked for the US National Security
Agency. He was one of the leading researchers who first raised awareness of cell phones’ lack of security and
privacy.
WHITE HAT HACKERS
White hat hackers, i.e. Ethical Hackers are the antithesis of black hats. They use
their capabilities to uncover security failings to help safeguard organizations from
dangerous hackers.
White hat hackers are one reason large organizations typically have less downtime
and experience fewer issues with their websites. Most hackers know, it will be harder
to get into systems managed by large companies than those operated by small
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businesses that probably don’t have the resources to examine every possible security leak. He is a “hacker who
is committed to full compliance with legal and regulatory statutes as well as published ethical frameworks”
In order for a White Hat hacker to be effective, he has to be proficient as a Black Hat.
“To beat a hacker, you need to think like a hacker”
Their Workings~
Instead of exploiting vulnerabilities to spread code, white hat hackers work with network operators to help fix
the issue before others discover it.
Their tactics and skills include:
1. Social Engineering It’s commonly used to discover weaknesses in an organization’s

“human” defences. It’s about tricking and manipulating victims into
doing something they should not (making wire transfers)
2. Penetration Testing Penetration testing aims to uncover vulnerabilities and weaknesses
in an organization’s defenses and endpoints so they can be rectified
3. Reconnaissance and research This involves researching the organization to discover vulnerabilities
within the physical and IT infrastructure.The objective is to gain
enough information to identify ways to legally bypass security
controls and mechanisms without damaging or breaking anything.
Examples~
Tim Berners-Lee:Famous for inventing the World Wide Web, Tim Berners-Lee is also a member of the white-hat
hacking camp. Today he serves as the director of the World Wide Web Consortium (W3C), which oversees the
development of the web.
Greg Hoglund:Greg Hoglund is a computer forensics expert who is best known for his work and research
contributions in malware detection, rootkits, and online game hacking. Previously, he worked for the US
government and the intelligence community.
UTILITARIANISM
• Meaning:
Utilitarianism is a normative ethics theory, which holds
that a “morally good action is one that helps the greatest
number of people”. Utilitarianism is the test being applied
in the case of hacking.
• Ethical standards of Utilitarianism society:
The first ethical standard of a utilitarian society is the utility
approach.The right approach focuses on the most ethical
action that protects, in the best way possible, the moral rights of individuals in that society. Another
standard is the fairness or justice standard, whereby individuals living in society should be treated equally
or fairly in case inequality is necessary.The common good ethical standard emphasizes that any action
should promote the well-being of everyone in a given setup.
Any form of hacking that seeks to promote the fidelity of a system can be termed as ethical i.e. White hat
hacking.
CASE STUDY
One of the World’s Biggest Accounting Firms Hacked
After Basic Security Goof
In 2016-17 , for months, the systems of Deloitte, a
consulting and accounting firm that ranks among
the world’s “big four,” were compromised and hardly
anyone knew it. The breach has been kept under
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wraps since it was noticed by administrators in March. The attack happened in late 2016 and discovered in
March 2017 but nothing got out until September 2017.
The work was being undertaken at Deloitte’s Hermitage office in Nashville, Tennessee.
In an online world, you can never be too safe. This is especially true today when accounting firms rely on cloud-
based systems more than ever before.
Deloitte is a perfect example of this. It’s safe to assume that the firm can afford high-end security measures. Yet,
attackers managed to find a hole in their system.
So how did this happen?
The attackers were able to access information from Deloitte’s major corporate and govt. clients in the US -- All
because they did not use two-factor authentication.
the hackers reportedly just needed to acquire a single password from an administrator of the firm’s email
accounts. The reports says that the intruders had “access to all areas” of the email system. Internal investigators
say they’ve been able to follow an electronic trail that shows major clients were the point of interest.
Deloitte insists that only a small fraction of its clients have been “impacted” by the breach. So far, six clients have
been notified that the hackers were able to access “usernames, passwords, IP addresses, architectural diagrams
for businesses and health information,” and in some cases sensitive security information. In total Emails to and
from Deloitte’s 244,000 staff were stored in the Azure cloud service, which was provided by Microsoft. This is
Microsoft’s equivalent to Amazon Web Service and Google’s Cloud Platform. It’s possible that the attacker had
access to all these of information for months.
It has involved specialists trying to map out exactly where the hackers went by analysing the electronic trail of the
searches that were made.Now, if the hackers had been unable to cover their tracks, it should be possible to see
where they went and what they compromised by regenerating their queries. This kind of reverse-engineering is
not foolproof, however.
“Cyber risk is more than a technology or security issue, it is a business risk”.
CONCLUSION
In the light of this paper’s discussions, it suffices to conclude that white hat hacking is pro ethical while black hat
hacking is con ethical. According to the utility provision of utilitarianism, an action is termed ethical if it brings
utility to the greatest number of people.
The negative connotation of hacking is here to stay.The unauthorized access and use or dissimilation of private
information or computer resources, and possible lawsuit form part of the illegal hacking. The legal or ethical
aspect consists of the former with some legal boundaries and no charges to be press. It is morally and legally
justifiable.
Additionally, four critical factors redefine hacking and ethics from the hacker perspective: the intent, competence,
recognition and the material reward. These common factors between Black and White Hats hacker have reduced
the ethical burden and create a thin line of ethics which appears to be a demilitarized grey area where a mutation
is allowed. This grey area gave birth to the grey hat hacker.
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Digital Forensic & Cyber
Crime
Vaishnavi Bharatkumar Panchal
INTRODUCTION
“Change is the only constant thing in the world”
With the rapid change in the technology, the business environment, business problems and business solutions are
also changing at a skyrocketing speed. And along with that the role of Chartered Accountants (“CAs”) in society
has changed drastically. Because of the use of technology in data processing, data storing and in implementing
controls in organizations, CAs are also required to take active part in Cyber Security issues and Digital Forensics.
CYBER CRIME
“There are only two types of companies: Those that have been hacked and that will be hacked”
– Robert Mueller
WHAT IS CYBER CRIME?
The major motivation behind cybercrime is financial gain (example: spreading malware to steal access codes to
bank accounts). However, a good portion of cybercrime has different motivations, like interrupting service (for
example, DDoS attacks to stop services offered by the target organization), stealing confidential data (example:
consumer data, medical information), exchanging copyrighted Cybercrime includes any illegal activity committed
using a type of computing device or computer networks such as the Internet. The US Department of Justice
(DOJ) defines cybercrime as “any criminal offense committed against or with the use of a computer or computer
network.” materials in an unlawful way, and cyber espionage (corporate trade and military secrets).
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CYBERCRIME ATTACK MODE
Cybercrime can be originated from two main sources: insider attacks and external attacks.
INSIDER ATTACKS:
This is the most dangerous cyber risk facing organizations today, as it can last for
a long time without them knowing about it; such attacks come when there is a
breach of trust from employees—or other people like former employees, third
party contractors, or business associates—working within the target organization
who have legitimate access to its computing systems and/or information about
its cyber security practices and defences. Economic espionage falls under this
category.
EXTERNAL ATTACKS:
This kind of attack originates from outside the target organization, usually
coming from skilled hackers. Such attacks constitute the largest attacks against
organizations around the world. A black hat hacker can try to penetrate the target
organization’s computing networks from another country to gain unauthorized
access. Sometimes external attackers gain intelligence from an insider (disgruntled
employee) in the target company who has information about its security systems
to facilitate their illegal access.
TYPES OF CYBER CRIME
Today, criminals are smarter than ever before, and malicious programs are more sophisticated. The motive
behind the majority of cyber-attacks nowadays is not to damage your machine, but instead to steal your money,
to access your private information, or to acquire your log in credentials. Some types of Cybercrime have been
listed below.
Sr. No Type of Cyber crime

1 Malware Distribution
2 Ransom ware Distribution
3 Crypto Jacking
4 Hacking
5 SQL Injections
6 Pharming
7 Phishing
8 E-mail Bombing and Spamming
9 Identity Theft
10 Using Internet Network Illegally
11 Software Piracy
CYBERCRIME IN INDIA
CYBERCRIME CASES REPORTED IN VARIOUS YEARS AND STATE-WISE CASES IN 2020
As per the latest report by the “National crime report bureau of India”, cybercrime cases in India increased
from 5,693 reported in 2013 to 50,035 during 2020. Further, as per the data analysed by CNN-News18, between
2018 and 2020, the cases have jumped by nearly 85 percent.
In 2020, Uttar Pradesh recorded the most cases of cybercrime -11,097, followed by Karnataka with
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10,741 cases, Maharashtra with 5,496 cases and Telangana with 5,024 cases. In Bihar and Telangana,
cases of cybercrimes have increased by over four times, while in Uttar Pradesh; there has been an
increase of over 75 percent since 2018.
WELL KNOWN CYBER-ATTACKS IN INDIA

COSMOS BANK CYBER ATTACK IN PUNE
A recent cyber-attack in India in 2018 was deployed on
Cosmos Bank in Pune. Hackers hacked into the bank’s
ATM server and took details of many visas and rupee debit
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cardholders. This daring attack shook the whole banking
sector of India when hackers siphoned off Rs. 94.42 crores
from Cosmos Cooperative Bank Ltd. in Pune.
UIDAI AADHAAR SOFTWARE HACKED
2018 started with a massive data breach of personal records
of 1.1 Billion Indian Aadhaar cardholders. UIDAI revealed
that around 210 Indian Government websites had leaked
the Aadhaar details of people online. Data leaked included
Aadhaar, PAN and mobile numbers, bank account numbers,
IFSC codes and mostly every personal information of all individual cardholders.
SIM SWAP SCAM
Two hackers from Navi Mumbai were arrested for transferring
4 crores rupees from numerous bank accounts in August
2018. They illegally transferred money from the bank
accounts of many individuals. By fraudulently gaining SIM
card information, both attackers blocked individuals’ SIM
cards and with the help of fake document posts, they carried
out transactions via online banking. They also tried to hack
accounts of various targeted companies.
DIGITAL FORENSICS
“The only thing that can stop a bad guy in Internet is a good guy in Internet”
The threat of cyber crime is unquestionably growing more serious over time. Latest report by IBM says
that data breach costs rose from USD 3.86 million to USD 4.24 million, the highest average total cost in
the 17-year history of this report in 2021. The increase in cybercrimes, terrorist threats, and security
concerns in addition to the increased awareness of the importance of data on the part of authorities
and business corporations has encouraged them to act and develop different digital forensics tools and
methodologies to counter such threats.
WHAT IS DIGITAL FORENSICS?
Digital forensics is a branch of forensic science that uses
scientific knowledge for collecting, analysing, documenting,
and presenting digital evidence related to computer crime
for using it in a court of law. The ultimate goal is to know
what was done, when it was done, and who did it.
The term “digital forensics” is widely used as a synonym
for computer forensics (also known as cyber forensics) but
has expanded to cover investigation of all devices that are
capable of storing digital data, like networking devices,
mobile phones, tablets, digital cameras, Internet of Things
(IoT) devices, digital home appliances, and other digital storage media like CD/DVD, USB drives, SD
cards, external drives, and backup tapes.
CATEGORIES OF DIGITAL FORENSICS
Digital forensics can be grouped according to the source of the acquired digital evidence.
COMPUTER FORENSICS
It is concerned with investigating digital evidence found on desktop computers, on laptops, on
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digital storage devices (like external hard drives,
thumb drives, and SD cards), and in random
access memory (RAM), in addition to operating
systems and installed application traces and their
associated logs. The main activity of this type is
recovering deleted data from the target device’s
storage and analysing it for incriminating or
exonerating evidence.
MOBILE FORENSICS
Mobile forensics is a type of digital forensics
concerned with acquiring digital evidence from
mobile devices. The proliferation of mobile
technology among users globally will soon make
mobile forensics the most used branch among
other digital forensics types.
NETWORK FORENSICS
This type of digital forensics is concerned with monitoring and analysing traffic flow in computer
networks to extract incriminating evidence (e.g., discovering the source of security attacks) or to detect
intrusions. Network forensics deals with volatile (live) data only, unlike other digital forensics types.
DATABASE FORENSICS
Database forensics is concerned with the analysis of data and metadata existing within a database
such as Microsoft SQL Server, Oracle, MySQL, and others. Database forensics looks for who accesses a
database and what actions are performed to help uncover malicious activities conducted therein.
FORENSICS DATA ANALYSIS
This branch deals with analysing corporate structured data to prevent and discover fraud activities
resulting from financial crime.
VALIDITY OF EVIDENCE OBTAINED WITH THE HELP OF DIGITAL FORENSICS
The ultimate aim of digital forensics is to acquire, preserve, and analyse digital evidence in a forensically
sound manner to be used in a court of law. The best evidence in forensic science may not be accepted
in court of law if proper methodology is not used while acquiring, preserving or analysing it.
The Evidence Act was amended by virtue of Section 92 of the Information Technology (“IT”) Act
and the term “evidence” was amended to
include “electronic record”, thereby allowing
for admissibility of the digital evidence. As
per these provisions, the electronic evidence
gathered through various means by applying
cyber forensics was deemed as a “document”
and the printed reproductions were considered
secondary evidence, which required certification
of authenticity from a competent signatory who
was susceptible to cross-examination relating to
the certified document.
Section 65B of the Evidence Act provides for both
technical conditions and non-technical grounds
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for admissibility of electronic evidence. Sub-section (2) of Section 65B of the Evidence Act lists the
technological conditions upon which a duplicate copy (including a print-out) of an original electronic
record may be used. These are
a) At the time of the creation of the electronic record, the computer that produced it must have
been in regular use;
b) The kind of information contained in the electronic record must have been regularly and ordinarily
fed in to the computer;
c) The computer was operating properly; and
d) The duplicate copy must be a reproduction of the original electronic record.
ROLE OF CHARTERED ACCOUNTANTS IN CYBER SECURITY & DIGITAL FORENSICS
“I need MBAs to run my business, but I need CAs to teach MBAs how to run the business.”- Ratan Tata
Information is oil in every organization. Corporates have lots of information about their customers,
suppliers and many people linked to them. This data is prone to cyber-attacks. Financial assets are at
risk of being targeted by hackers.
Chartered Accountants possess professional strengths and qualifications that make them ideal for
cyber risk management. First, they know how to quantify the costs and comparative cost-effectiveness
of different security measures. A cyber security strategy must prioritise areas of vulnerability and
commit resources to them.
Though they are not IT-focused, Chartered Accountants can comprehend basic cyber security knowledge
that allows them to contribute toward their organisation’s defences.
Finally, Chartered Accountants are typically leaders in the control process that ensures risks are
mitigated and have a well-deserved reputation for always being concerned with safety for their clients
and employers.
CONCLUSION
Cyber security and Digital Forensics are still emerging fields for CAs to practise and lot of opportunities
are lying here, because for every company:
“At the end of the day, the goals are simple: safety and security. - Jodi Rell”
But along with, these are also rapidly changing fields; requiring CAs to acquire knowledge and develop
practice along with changes in technology.
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New-Age Forensic Accounting
Standards of ICAI -
A Pathbreaker
Piyush Bathwal
“Fraud and falsehood only dread examination. Truth invites it.”

Forensic Accounting and Investigation
Forensic accounting is the integration of auditing, accounting and investigative skills to conduct investigations,
and frauds cases. It is conducted to prosecute a party for fraud, embezzlement or other financial claims, and
helps trace money laundering and identity theft activities as well as tax evasions.
A forensic accountant should possess practical knowledge of not only accounting principles and standards, but
also of banking, insurance, law and human psychology. He must scrutinize details and at the same time see the
big picture.
How Forensic Accounting is different from Auditing and Review
“It is often said Accountants look at the numbers but Forensic accountants look behind the numbers.” -Adaeze
Okoye, 2009
Our ICAI President, Shri Nihar Jambusaria had pointed out, “An auditor’s job is not to become a bloodhound and
should not be seen as an investigator. An auditor can be a little bit of a watchdog and at the most what one can
expect them to become is a sniffer dog…”. In this respect, forensic accounting converges with this idea because
it attempts to sniff out frauds and financial irregularities.
Audits are designed to detect material misstatements and not immaterial frauds. Although many financial
statement frauds should have been detected by auditors, a vast majority could not be detected. This is because
of auditors’ dependence on sampling and reliance on examining the audit trail versus examining events and
activities behind the documents. The latter is resource prohibitive in terms of costs and time.
Need for Forensic Accounting
A joint 2016 Grant Thornton and ASSOCHAM survey explained that financial fraud in India has risen over the last
few years and is one of the main factors deterring foreign companies from investing in India. India is currently
ranked as the 86th most corrupt nation out of 180 countries by Corruption Perceptions Index released by
Transparency International. Some major scams that took place in India are as follows:
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Understanding New age Forensic Accounting Standards and its need
ICAI is the only Institute in the world to develop a full set of Forensic Accounting and Investigations standards
for Forensic Professionals.
The Standards seek to streamline the entire process of investigation and act as a guideline to identify frauds.
In the absence of Standards, every self-acclaimed forensic accounting expert would use his own rules and
procedures to present reports based on their judgements.
These would be ambiguous and devoid of reliable evidence. Since the introduction of Standards, reports need
to be backed by reliable evidence to support conclusions. Additionally, Principle of Natural Justice has been
introduced, which allows subject party’s views to be incorporated in the report. The suspects have an equal
right to defend their innocence. Before the Standards, reports would be released without documenting subject
party’s perspective.
As per Standards, the report will not express an opinion or pass any judgement on the guilt or innocence. It
will merely present facts and observations and conclusions reached thereupon. The Standards are principle-
based and define the desired outcome, rather than prescribing a series of procedures to be performed, thereby
providing adequate scope for professional judgment.
The Standard runs from Series 100 through 600 and covers important topics like key concepts, engagement
management, executing assignments, reporting and quality control.
STANDARDS ON KEY CONCEPTS (100 SERIES)
110: NATURE OF ENGAGEMENT
It is the Professional’s responsibility to understand nature of engagement to determine scope and approach.
Main objectives:
(a) Professional has clarity on the purpose of engagement and end result.
(b) Scope and approach within which work is performed is determined.
(c) Specialized skills/resources necessary for execution are determined.
( 86 )
120: FRAUD RISK
The Professional prioritises the work based on identified fraud indicators due to time constraints and sensitive
nature of the engagement. Since fraud is concealed, it can be difficult to detect. The Professional identifies
events or conditions which indicate incentive or pressure to commit fraud.
Main objectives:
(a) High risk and vulnerable areas where fraud can be possible are identified for prioritising work
(b) Fraud risk-based evaluations are undertaken to establish the focus to be given on reporting.
130: LAWS AND REGULATIONS
The Professional needs to adhere to provisions of statutes in addition to general applicable laws while conducting
any engagement, and also evidence or testimony that needs to be presented.
Main objectives:
(a) Engagements undertaken by the Professional should be as per relevant laws and regulations.
(b) Work procedures should be in accordance with provisions of laws and regulations.
(c) A process driven approach is adopted to identify and report violation of laws and regulations.
140: APPLYING HYPOTHESES
“A hypothesis is a provisional, unproven theory based on limited facts and assumptions which needs to be
established through further examination and study of evidences.”
The Standard provides for the need to test the evidence based on various objective parameters and the
hypothesis is verified by testing transactions and balances to prove or disprove the possibility of some exceptions.
Hypothesis helps in making the process of evidence discovery more methodical and effective. The quality of
evidence becomes more reliable and suitable for a Court of law.
After conclusion of investigation, the Professional can either prove, disprove, or not prove the hypothesis as
formulated.
STANDARDS ON ENGAGEMENT MANAGEMENT (200 SERIES)
210: ENGAGEMENT OBJECTIVES
An understanding of objectives of the engagement is required, because output of the engagement may be used
in legal proceedings. However, the objective of any engagement shall not be designed in such a way, to commit
to a particular outcome, since the outcome depends upon discovery of facts and evidence.
The engagement’s scope is designed in accordance with the objectives to be clear of what is included or excluded
from the scope. For example, if Forensic Accounting procedures go beyond the discovery of evidence to include
the need to testify before competent authorities, this should be included in the scope.
220: ENGAGEMENT ACCEPTANCE AND APPOINTMENT
The Professional needs to conduct preliminary procedures and due diligence to understand inherent risks, while
evaluating suitability for appointment. All terms of agreement should be documented in the form of a formal
Engagement Letter.
The professional looks into the following matters:
( 87 )
An Engagement Letter contains:
230: USING THE WORK OF AN EXPERT

The Professional may seek help and rely on the work of an expert if required skills are not possessed
by the Professional.
Main objectives:
(a) Expert’s technical assistance is needed when the Professional does not possess necessary skills.
(b) Credible and reliable evidence may be gathered with the help of the Expert.
If there is any personal, financial or organizational relationship of the Expert with those subject to
scrutiny, the objectivity of the Expert may get compromised, preventing the Expert from rendering an
unbiased Report.
240: ENGAGING WITH AGENCIES
Professionals are required to work closely with Law Enforcement Agencies and Regulatory Bodies and
agree on the objectives, scope and procedures of engagement with the Agencies either through a Letter
of Appointment/Work Order issued by Agency, or an Engagement Letter issued by the Professional.
Indicative list of Agencies in India includes CBI, Enforcement Directorate, Economic Offences Wing,
SFIO, SEBI, IRDAI, NCLT, ITAT and RBI.
If agencies may include international bodies, the engagement is governed by rules relevant to the
particular agency.
250: COMMUNICATION WITH STAKEHOLDERS
It is the Professional’s responsibility to have a clear, unambiguous, two-way communication with
stakeholders. The responsibility of the Professional is to communicate directly with the clients. The
responsibility to communicate with Other Stakeholders is the client’s responsibility.
( 88 )
Sometimes, the Professional can engage with other stakeholders provided the client has prior knowledge
of the same. This understanding to communicate with other stakeholders should be formalised in the
terms of engagement.
STANDARDS ON EXECUTING ASSIGNMENTS (300 SERIES)
310: PLANNING THE ASSIGNMENT
Planning is an ongoing activity, which is prepared and periodically reviewed by the Professional. Its
main objectives are:
(a) To ensure that planning process is in accordance with terms of engagement and regulations.
(b) To consider risk factors and limitations and take steps to mitigate these. (c) Determine the
appropriate work methodology to be followed.
320: EVIDENCE AND DOCUMENTATION
Evidence is the information in written, oral, or electronic form, which is used by Professionals to arrive
at conclusions on which their report is based. It is obtained both from work procedures or gathered
from internal or external sources.
The Professional shall obtain sufficient and appropriate evidence from reliable sources and ensure that
relevant and sufficient documentation is maintained. He should ensure that the evidences collected
are appropriate to the objectives of the assignment.
330: CONDUCTING WORK PROCEDURES
Work Procedures are first conducted behind the scenes (Phase 1). If suspicious transactions are
identified in Phase 1, they are further assessed and examined in Phase 2.
340: CONDUCTING INTERVIEWS

Interviews are structured meetings with individuals to elicit information. They are well planned and
conducted within the framework of existing laws and rules.
Prior to the interview, the Professional should scrutinise relevant documents and evidences. The
( 89 )
interviewer can also modify questions and sequence based on interviewee’s responses. The outcome
should be documented for subsequent reference and legal proceedings. A declaration may be taken
from interviewee as a safeguard against any subsequent claim of use of inducement or threat.
350: REVIEW AND SUPERVISION

“Review, refers to the examination of planning and work procedures, discovery of evidence, conclusions
drawn therefrom and documentation of working papers.”
“Supervision, refers to the oversight of these activities”
Main objectives:
To ensure that:
(a) The work procedures are performed effectively in line with engagement terms
(b) Process of discovering evidence, information, data is comprehensive
360: TESTIFYING BEFORE A COMPETENT AUTHORITY
A Professional may be asked to testify as a Face Witness or Expert Witness before a Competent
Authority in relation to legal proceedings.
Where a Fact Witness is limited to presenting facts as observed without expressing any opinion, an
Expert Witness also expresses opinion by reaching a conclusion.
The Testifying Professional should be independent and ensure there is no conflict of interest. If there is
a conflict, the Testifying Professional’s paramount duty shall be towards the Competent Authority and
not the client, notwithstanding the fact that Testifying Professional may have been appointed by the
party being investigated. The Testifying Professional should not be presumptive in nature.
STANDARDS ON SPECIALISED AREAS (400 SERIES)
410: APPLYING DATA ANALYSIS
Data analysis is applied to examine information and discover patterns of inconsistent activities. It helps
to gain confidence over the reliability of results derived from DA techniques.
Some steps in data analytics include:
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420: EVIDENCE DISCOVERY IN DIGITAL DOMAIN
These are procedures to be followed for discovering electronic evidence. It must be capable of satisfying
requirements of judicial scrutiny. As business activities are shifting to the Digital Domain, the evidence
needs to be discovered in a new way, referred to as “electronic discovery”.
Digital Evidence (DE): This term refers to data acquired, stored and used in electronic form. Discovery
and gathering of evidence in Digital Domain shall be conducted by those having requisite skills and
experience to preserve admissibility of digital evidence in a Court of law.
430: LOANS OR BORROWINGS
This Standard relates to loans extended by financial and other institutions, including banking and
NBFCs.
Matters requiring investigation include:
( 91 )
STANDARDS ON REPORTING (500 SERIES)
510: REPORTING RESULTS
The Professional issues a written report which is precise and unambiguous at the conclusion of the
assignment. The report shall include certain key elements to enable the recipient understand the
purpose, extent and scope of work performed, any limitations, facts and evidence discovered and the
conclusions drawn.
A summary of the responses received from subject party shall also be included in the report.
“The report shall not express an opinion or pass any judgement on the guilt or innocence.
Determination of culpability is either a disciplinary process internal to the organization, or a judicial
process. The report can, at best, highlight the circumstances and facts that may aid a stakeholder
decision or further a civil or criminal investigation.”
STANDARDS ON QUALITY CONTROL (600 SERIES)
Work performed by the Professional follows a systematic and disciplined approach to achieve quality
control requirements. The Standard sets out requirements in areas of Quality Control Review and
Continuing Professional Education (CPE) which need to be adhered by the Professional providing FAI
services. The Professional shall establish a quality control system designed to specify quality control
requirements and how these requirements will be met during all stages of assignment.
610: QUALITY CONTROL
Continuing Professional Education: The Professional shall have in place a process to monitor
CPE compliance requirements and take necessary steps to:
(a) Develop plans to ensure timely completion of CPE programs during a set time-frame.
(b) Annually obtain written confirmation from everyone of compliance with CPE requirements.
Conclusion
Due to increasing number of financial and accounting irregularities, ICAI has acknowledged need to
be proactive in this area. Forensic accounting and investigations need to be conducted in a highly
professional manner, such that evidences can withstand scrutiny in a Court of law. Conventional
accounting is unable to bring to light many financial irregularities due to failure of internal and external
audits in the organizations. Additionally, culprits are using sophisticated technologies to commit frauds.
Indian CAs with their extensive theoretical and practical knowledge can therefore create a niche in this
area and the new forensic standards issued by ICAI are indeed a pathbreaker in this positive direction.
( 92 )
Forensic Accounting – The
Profession
Prishita Agarwal
India has recently witnessed some of the biggest financial frauds in its corporate history. The Satyam Scam in
2009 of ₹14000 crore.Vijay Maliya’s9000 crore, Kingfisher Scandal and the latest not to forget Nirav Modi’s
11400 crores PNB scam.
Forensic Accountants have a big role in unearthing this scams and gathering strong tangible evidences to put the
culprits behind the bars. Forensic Accounting is a wonderful area of investigation of white collar crimes.
It’s a field of study that combines accounting, auditing and investigative acumen to scrutinize a company’s
financials statements. In short Forensic Accountants are trained to offer accounting analysis from a litigation
perspective.
Financial statements are one of the most important factors affecting the overall business, in particular. External
audit aims to determine accuracy and objectivity of financial statements, i.e., disclosure of funds, resources
and business performances in the financial statements, and to form an opinion based on the information
provided. Therefore, the purpose of external traditional audit is not fraud detection that frequently appears in
the background of an incorrect, unfair and unlawful presentation of financial statements. This has triggered the
necessity to provide a new kind of accounting services that would be directed towards fraud Prevention and
detection. The answer to this need is the emergence of forensic accounting, which differs from External audit in
terms of its goals and character. There is no generally accepted definition of this concept. Discipline, which has
justified its existence and indicated the necessity.
What is Forensic Accounting?
Forensic accounting is the investigation of fraud or financial manipulation by performing extremely detailed
research and analysis of financial information. Forensic accountants are often hired to prepare for litigation
related to insurance claims, insolvency, embezzlement, fraud, skimming, any type of financial theft and
Preparing for Litigation.
You might have heard the phrase “forensic evidence” before, which simply means evidence that is able to be
presented in a court of law. Hence, forensic accounting is a term to describe an analysis of financial information
that can be used to support a case in a court of law.
( 93 )
The process of digging through all of a company’s or individual’s financial information can take months or even
years and requires a team of specialized accountants that act like detectives trying to solve a mystery.
Typically, an accounting firm will be engaged by a client either looking to defend themselves, or one looking
to prosecute someone. Most medium- to large-sized firms have a forensic accounting department, which may
consist of various forensic auditors
Need For Forensic Accounting?
1. Detection of Corruption or Fraud
2. Conflicts of Interest—when a fraudster uses his or her influence for personal gains to the detriment of the
company. For example, if a manager allows and approves inaccurate expenses of an employee with whom
he has personal relations.
3. Bribery—offering money to get things done or influence a situation in one’s favour.
4. Extortion—the wrongful use of actual or threatened force
5. Asset Misappropriation-This is the most prevalent form of fraud. Examples include: misappropriating
cash, submitting falsified invoices, making payments to non-existent suppliers or employees, misusing
assets (like company equipment), and stealing company inventory.
6. Financial Statement Fraud-A company can get into this type of fraud to try to show that its financial
performance is better than it actually is. The goal of presenting fraudulent numbers may be to improve
liquidity, ensure that C-level executives continue to receive bonuses or to cope with the pressure to
perform.
WHAT IS THE SCOPE OF FORENSIC ACCOUNTING ?
Scope / Areas of Forensic Accounting –
The new and ground-breaking accounting has two main areas which are :
1. Litigation support and investigation –
The former represent the factual presentation of economic issues related to existing litigation. In this
capacity, the forensic accounting Sustained by parties involved in the legal disputes and can assist in
resolution dispute, even before they reach the contraction, if dispute researchers the court room, the
forensic accountant may testify as an expert witness.
2. Dispute resolution –
On the other hand the latter is the out of determining, whether criminal matters such as securities fraud
which include financial settlement, identify theft and insurance fraud etc. in such Complex cases forensic
accountants make some recommendations / actions that can be taken to minimize future risk or loss.
Forensic Accounting-An emerging Profession
Steps to Forensic Accountant Careers
Enroll in an Accounting Program: Candidates need a bachelor’s degree in accounting to qualify for entry-level
positions in the field. Choosing an accounting program and completing the application process can take several
weeks or months. When evaluating accounting programs, prospective students should look for schools offering
a forensic accounting concentration or many electives in fraud examination and forensic accounting.
Complete Specialized Courses in Forensic Accounting: During their bachelor’s studies, aspiring forensic
accountants should take as many forensic accounting classes as possible. Learners should consider programs
that offer a concentration or major in the field.
Earn Your Bachelor’s Degree: Most full-time students take four years to complete general education coursework
and accounting major requirements. After earning a bachelor’s degree with a focus in forensic accounting,
graduates qualify for entry-level positions in the field.
Consider a Master’s Degree: A bachelor’s degree meets the minimum education requirements for most entry-
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level accounting positions. Still, some employers prefer candidates with master’s degrees or graduate certificates
in forensic accounting. Master’s in forensic accounting programs help students gain advanced skills.
Some certificates, including the CPA credential, require credits beyond a bachelor’s degree. Earning a master’s
degree takes two years, while passing all parts of the CPA exam can take up to 18 months.
Look for Job Opportunities: Graduates can pursue forensic accounting positions. Forensic accountants can
demonstrate advanced skills in the field by earning certification. Some certifications require examinations
with multiple parts that can take several months to complete. Certification also includes work/experience
requirements.
Expected Payscale:-
Entry-level Forensic Accountant with less than 1 year experience can expect to earn an average total compensation
(includes tips, bonus, and overtime pay) of ₹727,039 based on 8 salaries. An early career Forensic Accountant
with 1-4 years of experience earns an average total compensation of ₹727,039 based on 7 salaries. A mid-career
Forensic Accountant with 5-9 years of experience earns an average total compensation of ₹1,175,000 based on
6 salaries.
WHAT IS THE ROLE OF FORENSIC ACCOUNTANT ?
Role of Forensic Accountant –
A forensic accountant is often retained to analyze, interpret, summarize and present complex financial and
business information in a manner, which is both understandable and properly supported.
A forensic accountant is time and again involved in the investigating and analyzing financial evidence development
of computerized application to assist in the analysis and presentation of financial evidence communicating their
findings in a form of report exhibits and collection of document and assisting in legal proceedings, including
testifying in court as an expert witness and preparing visual aids to support trial evidence.
The role of forensic accountant can be explained with the following points :
1. Advice –Giving preliminary advice as an initial appraisal of the pleading and evidence available at the start
of proceedings.
2. Identification of key documents –Identifying the key documents which should be made available as
evidence. This is important when the forensic accountant is acting for the defense and lawyers are
preparing lists of documents to tender in court.
3. Preparation of report –Preparing a detailed balanced report on quantum of evidence, written in a language
readily understood by a non accountant and dealing with all issues, irrespective of whether or not they
are favourable to the client.
4. Review of reports –Reviewing the expert accounting reports submitted by the other party which may
have impact on the quantum of evidence and advising lawyers on these reports.
5. Briefing –Briefing legal counsels of the financial and accounting aspects of the case during pre trial
preparation.
6. Initiative in Environmental accounting –The other plane of the forensic accountant can initiate measure
for introduction of environment accounting to highlight the damage done to the environment by the
possible recoupment of such damages or replenishment of lost properties through environmental
management continually.The occupational fraud committed by employees usually involve the theft of
Assets and embezzlement and the involvement of employees in kick back schemes or conversion of
corporate assets for personnel use, the forensic accountant can intervene and observe the suspected
examination of assets, invigilation, inspection or documents and interview of those involved to control
such practices.
7. Suggestions –Experience and these type of engagement enables the forensic accountant to offer
suggestions as to internal control that owners could implement to reduce the likelihood of fraud.
8. Criminal investigation –Besides, the forensic accountant will also engage himself in criminal Investigation
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on behalf of Police Force, where his report is prepared with the objective of presenting evidence in a
professional and concise manner.
These assumptions often involve a detailed analysis of numerous years accounting records to qualify the issues
in dispute. He does need an understanding of legal issues of business activities.
Skill Needed to excel in Forensic Accounting Profession:-
Arising from the need for forensic accountant is the quality and skill required for the performance of his duties.
A study suggested that a forensic accountant requires high level of competence, integrity and honesty to
perform his job. He is one of opinion that a forensic accountant must be thoroughly trained and must prove
his competence by passing all relevant examination to become a member of the recognised accountancy body.
He maintained that a forensic accountant should always out with integrity, honesty and probity and must
maintain a professional attribute in the performance of his responsibilities.
The skills which are required are numerous but many he must training development during the training years.
1. Ability to review –An ability to review a large volume of documentation ranging from the more usual
accounting records and management information system to memos correspondence and other less
obviously financial data and to exact the key issue quickly.
2. Sense of urgency and commitment –A sense of urgency and commitment which will be ensure promote
response when required however slow civil litigation may appear to the onlooker or even to the
participants in the dispute.
3. Understanding –A sound understanding of peculiarity of the various business methods.
4. Hard working –Adherence of strict time table even when need arises to work for more hours of meet
targeted time.
5. Ability to appear objective and professional –Most essentially an ability to appear objective and
professional even when taking part in the inherently partisan process of a court case.
6. Ability to communicate –An ability to communicate complex theoretical ideas in the manner which is
readily understandable by the layman supporting with the fact of figure when necessary without giving
an impression of superiority.
The future of forensic Accounting:Adapting to changing times:-
Covid-19 has accelerated the adoption of various technologies by organisations
The Reserve Bank of India (RBI) reported bank frauds amounting to ₹1.38 trillion in 2021. While there are no
official figures for losses due to frauds (in organisations), the current spurt in forensic engagement is indicative of
a significant increase in fraud incidents. The Covid-19 pandemic, along with its disruptions, has accelerated the
adoption of various technologies by organisations. Many were focused on developing cyber and data security
strategies and risks where, other than specific areas of spend management, fraud, waste, and abuse controls
may have taken a back seat.
Contingency spends on computers and other support for employees working from home may not have gone
through the standard procurement processes. There could have been data leaks, including those of business
secrets, intellectual property, and customer details. Cyber criminals had the opportunity of a lifetime to prey on
the chaos that prevailed. However, the new normal has finally moved beyond lip-service to actually becoming
the new operating paradigm for most. With that, the realisation that controls, monitoring, and subsequent
exception management have to evolve with the times has set in.
The future is here and we need to adapt.
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Knowledge
Session 4
CAs Beyond
Accountancy
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Accounting & Financial
Reporting Aspects in
E-Commerce Sector
Kairav Saha
Paul Graham stated and I quote, “You can’t wait for customers to come to you. You have to figure out where they
are, go there and bring them to your doorstep.”
The world is moving forward by leaps & bounds and E-commerce is the centrepiece.
The Indian E-commerce market is expected to grow to US$ 111.40 billion by 2025 from US$ 46.2 billion as of
2020. Indeed, there is no façade in stating that the accounting & Financial reporting in E-Commerce sector will
be a significant area to look out for.
E-commerce entities may operate in various major market segments:
• B2B - Examples indiaconstruction.com, clickforsteel.com
• B2C – Examples flipcart.com, amazon.com, urban clap
• C2C – Examples snapdeal.com, olx.com
• C2B – Examples razorfinish.com, priceline.com
The Accounting Terminology
Revenue Recognition
The main sources of revenue of e-commerce companies presently include:
• Merchandising activities;
• Membership and subscription;
• Advertising services; and
• Other services like web-hosting, content selling, etc.
E-commerce companies are often valued based on revenue multiples and, therefore, it is one of the most
important performance parameters.The delivery is the responsibility of the entity and, hence, it is important to
determine when does the ‘risk and rewards’ transfer. In evaluating the point at which the risks and rewards of
ownership transfer from the seller to the buyer, one of the key considerations is the shipment terms.
Revenue from sales or service transactions should be recognised when the requirements as to performance set
out herewith are satisfied, provided that at the time of performance it is not unreasonable to expect ultimate
collection.
The following conditions have to be fulfilled:
(i) the seller of goods has transferred to the buyer the property in the goods for a price or all significant risks
( 99 )
and rewards of ownership have been transferred to the buyer and the seller retains no effective control of
the goods transferred
(ii) no significant uncertainty exists regarding the amount of the consideration that will be derived from the
sale of the goods
In a transaction involving the rendering of services, performance should be measured either under the completed
service contract method or under the proportionate completion method.
Membership and subscription
Many a times, entities receive upfront payments from customers before they provide the contracted service or
deliver a good.
• If the membership fee permits only membership and all other services or products are paid for separately,
or if there is a separate annual subscription, the fee should be recognised when received.
• If the membership fee entitles the member to services or publications to be provided during the year, it
should be recognised on a systematic and rational basis.
• The capitalised/ deferred membership fee may be presented in a separate line item such as, “deferred
membership fees”, under liabilities in the balance sheet.
Non-refundable fees that entitle a member to use the services of the website indefinitely should be recognised
as revenue over a reasonable period on a systematic and rational basis, i.e., on time proportion basis or any
other basis, e.g., usage basis.
In respect of membership fees that are refundable to members subject to fulfilment of certain conditions, the
revenue from such transactions should be recognised when it becomes reasonably certain that conditions would
not be fulfilled. Pending the recognition of revenue as aforesaid, the amounts received from customers should
be credited and retained in a liability account such as ‘Customers Refundable Fees Account’.
Merchandising activities
One of the significant issues in accounting by e-commerce companies is whether to recognise gross amount of
revenues and the related cost of sales or to recognise the revenue on net basis.
In assessing whether revenue should be reported on gross basis with separate recognition of cost of sales or on
net basis, it should be considered whether the e-commerce entity:
• acts as a principal in the transaction, i.e., it assumes significant risks and rewards of ownership or
• acts as an agent or broker for sale of goods or rendering of services. In this case, the e-commerce entity
is merely engaged in providing the service of bringing the purchaser and the seller together.
Where an e-commerce entity acts as a principal in the transaction, it is appropriate to recognise revenues and
the related costs on a gross basis. If the e-commerce entity merely acts as an agent, it would be appropriate to
recognise only the service charges as revenue, similar to commission.
Shipping and handling activities
In determining accounting treatment ,one of the considerations would be whether the products sold on-line are
invoiced to the customers at a composite rate including shipping and handling charges or whether shipping and
handling charges are recovered separately.In the former case, it may be appropriate to include such charges as
a component of sales revenue. In the latter case ,shipping and handling charges should be recognised separately
as an income and the actual cost incurred in respect thereof should be recognised as an expense.
Right of Return in exchange for cash
In the case of retail sales offering a guarantee of “money back if not completely satisfied” it may be appropriate
to recognise the sale but to make a suitable provision for returns based on previous experience. Sales recognised
during the period should be reduced by the estimate of the returns.
Illustration: An online retailer, sells shirts with a right to the customers to return the shirts within 60 days.
Historically, 10% of the sales are returned by customers.Retailer has sold shirts of sale value of ` 1000 and the
( 100 )
period of return is not expired till the end of the financial year.There are returns of ` 80 in the following financial
year before the expiry of return period.
Accounting Entires:
At the time of intial sale:
Cash/Bank A/c Dr. 1000
Sales Cr. 1000
At the time of year end:
Sales Dr. 100
Provision for expected right to return(Current Liability) Cr. 100
Provision for expected right to return(Current Liability) Dr. 100
Cash/Bank A/c Cr. 80
Sales Cr. 20
Right of return against goods or services or coupons
In the case of right of return in exchange of goods or services or coupons, the sales against which such right
of return is given, should be treated to have been effected and simultaneously provision for expected returns
should be made. Provision should be measured as the best estimate of the loss expected to be incurred by the
retailer.
Illustration: X is an e-tailer. The customers have a right to return the goods within thirty days. They do not get
cash in return, but get goods/coupons. Estimates show that 10% of all goods sold are returned/exchanged. At
the end of the financial year, the period of right to return has not expired in case of goods sold for ` 1000. It is
expected that the returns, if any, will be sold at 90% of original sale price. The margin on sale is 20% with regard
to such sale of ` 1,000 .
Accounting Entries:
At the time of making the sale:
Cash/Bank A/c Dr. 1000
Sales Cr. 1000
At the end of the year: No journal entry
The reason would be that though 10% of ` 1000 worth of goods sold are likely to be returned as per the trend,
no loss is expected as the goods are not expected to be sold below cost. (Since expected returns at sale price
would be 10% of ` 1000 i.e. ` 100 and cost would be 80% of ` 100 i.e. ` 80.)
However, if it is expected that the returned goods will be sold for say 70% of the original sale price (70% of ` 100,
i.e., ` 70), provision for expected loss should be made. The entry will be as under:
Profit & Loss A/c Dr. 10
To Provision for expected loss on returns Cr. 1000
Since the cost is ` 80 and expected selling price being 70% of original sale price of ` 100 i.e. ` 70 and thus
expected loss is ` 10.
Significant financing component
Certain e-commerce entities give extended financing to customers, for example, through a ‘buy now, pay later’
scheme or an extended EMI payment scheme.
In such cases, revenue is recognised at the contractual value of the consideration receivable.
Warranties
Such sale of additional or extended warranties are, in substance, sale of separate product/service, distinct from
the sale of goods/services with which the same are sold.
( 101 )
Accounting Treatment Illustration:
A retailer offers customers the option of purchasing an extended warranty to cover a further three-year period
after the expiry of the manufacturer’s warranty.
The sales price of the extended warranty is ` 120. The retailer typically receives valid warranty claims from
3% of customers during the extended warranty period. The average cost of repairing or replacing the goods
under the warranty is `400 per valid claim. The Revenue associated with the extended warranty is deferred and
recognised on a straight-line basis over the period for which the extended warranty service is provided. Thus,
annual revenue of ` 40 (` 120 divided by 3) is recognised each year as income from services- ‘warranty’ or as
‘other operating income’ .
Advertising services
One of the principal sources of revenue of e-commerce companies is from the sale of banner and sponsorship
advertisements. Visitors to the website are ordinarily encouraged to click on a hypertext link, also known as ‘click-
through’. An e-commerce entity’s obligations typically include guarantees of minimum number of impressions
or click-through . It is appropriate to recognise revenue on the basis of the number of impressions or ‘click-
through’.
Rebates & Discounts
Where an entity offers rebates or introductory offers at heavily reduced prices in order to stimulate sales and
generate new customers, the value of such rebates should be reduced from turnover. This treatment is similar
to that accorded to trade discounts. Other forms of rebate or discount, which are general in nature, should be
treated as a selling and marketing expense and charged separately in the profit and loss account.
Point and loyalty programmes
There are primarily two methodologies for accounting of sale of goods and services under loyalty programmes :
1) Deferment Model- This model treats such sale of goods or services as multiple element transactions; one
element being the initial sale and another being the future sale at discounted price/free against redemption
of the loyalty programmesbenefit .
2) Provision Model- This model treats the sale as a single element transaction and recognise revenue for
the entire transaction at the time of initial sale. However, since a further cost is expected to be incurred in
future with regard to the obligation to provide free/discounted goods or services, a provision is recognised
towards the cost of such free/discounted goods.
Illustration:
Entity A awards 80 points with each purchase of goods of ` 100. The customer has a three year period over
which he/she can use the credits. For every 1,000 points, goods with a retail sale price of ` 60 can be obtained.
If the entity provides these goods itself, its cost is ` 12. The Entity has sold goods of `150 under the Scheme. It
has thus, awarded 120 points in connection with sale of goods of ` 150.
Entity expects 100 points to be redeemed in Year 1. For year 2 , entity revises its estimation to 90 points. Actual
Redemption is :
Year 1: 50 points redeemed
Year 2: 10 points redeemed
Year 3: 30 points redeemed or expired
Deferment Model
Value of the Award Credits = ` 7.20 [(60*120/1000)]. Since only 100 points are expected to be redeemed, the
fair value of the total award credits = ` 6 (` 7.2 *100/120)
Accounting Treatment:
Cash/Bank Dr. 150
Deferred revenue (liability) Cr. 6
Sales Cr. 144
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At the end of year 1:
Since 50 points have been redeemed, the entity will recognise revenue of ` 3 (50/100*` 6).
Deferred revenue (liability) Dr. 3
Sales Cr. 3
The entity will book the cost incurred towards redeeming the points. The entity incurs ` 12 when it redeems
1000 points, accordingly, for 50 points the cost is worked out to ` 0.60 i.e. (50/1000*12).
Cost of Goods Sold Dr. 0.6
Inventory Cr. 0.6
Year 2: 10 points have been redeemed. Since management now expects a total of 90 points to be redeemed, it
should recognise a revenue of ` 4 i.e. (60/90*` 6). As ` 3 has already been recognised, the entity recognises a
further ` 1 of the revenue.
Sales Cr. 1
Cost of goods sold Dr. 0.12

Inventory Cr. 0.12
Year 3: Since out of the total deferred revenue of ` 6, ` 4 has been recognised as revenue in the earlier years,
the balance of ` 2 of deferred revenue is recognised in year 3.
Sales Cr. 2
Provision Model
The entire revenue is recognised at the time of initial sale, along with the entire expected cost of redemption
for which a provision is recognized:
Cash/Bank Dr. 150
Sales Cr. 150
Marketing expense Dr. 1.2

Provision for marketing expense Cr. 1.2
{Expected cost [` 12*100 points /1000 points] }
As and when the points are redeemed in the subsequent years, the provision recognised as above is utilised. For
example, in year 1, since 50 points are redeemed, provision for marketing expense is utilised as follows:
Provision for marketing expensed Dr. 0.60 (50/1000*` 12)
To Inventory Cr. 0.6
Conclusion
The above mentioned aspects of accounting in E-Commerce sector are some of the key takeaways. Acquiring
in-depth knowledge of such aspects is indeed necessary for the CA Fraternity in order to prevent & detect
misstatements in the financials of E-Commerce entities at large.
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Facilitation of Taxpayers
as well as Taxation System
Shubham Malhotra
I. Introduction
“Today, it takes more brains and effort to make out the income-tax form than it does to make the income.”
- Alfred E. Neuman
Today, there is a general consensus that the basic strategic objective of modern Tax Administrations (TAs) is
to increase the levels of voluntary compliance by taxpayers, through two main lines of action, by providing
facilities to those who wish to comply, and on the other hand by carrying out a radical fight against fraud.
Our taxation system, both direct and indirect tax law, is based on the principle of self-assessment under a
system of voluntary compliance (meaning that taxpayers comply with their basic tax obligations without
the intervention of a tax official). The taxpayer has to compute and deposit his tax liability to government
sou-moto, failure of which may lead to adverse consequences in the form of penalties and prosecution.
Similarly, tax department globally is also adversely affected by rising cases of tax evasion and tax avoidance
methods adopted by taxpayers.
Facilitation is the first line of tax control to curb this. It means having good information and assistance
services, and also that all areas of the Tax Administration assume that their actions have an impact on this
area.
Facilitating tax compliance, I understand, is a concept that goes far beyond traditional information and
assistance and includes all types of measures adopted by the TAs, with the purpose of reducing tax
compliance costs, i.e., the costs incurred by taxpayers to comply with their tax obligations, the time spent
to comply with tax obligations and the payment of fees to their tax advisors.
II. Challenges faced by countries
Significant progress has been made by many developing countries in order to improve tax compliance but
weak capacity, corruption and the missing reciprocal link between tax and public and social expenditures
remain as challenges. The vicious circle of low tax morale and compliance — which reduces the lifeblood
for funding public services — needs to be broken.
Specific challenges that loom especially large in developing countries include:
l Weak tax administrations : A well-functioning tax administration is key to mobilising domestic resources
in developing countries and the design of the tax system should be influenced by the ability of tax
administrations to administer it. Yet many administrations continue to be staffed by poorly trained and
low paid officials, have structures which do not encourage an integrated approach to different taxes,
and are marked by imbalanced service and enforcement functions.
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l Low taxpayer morale, corruption and poor governance are often deeply entrenched. Corruption
indicators are strongly associated with low revenue (indeed corruption functions like a tax itself and is
likely to be a particularly regressive and inefficient form of taxation), as are other governance indicators
(weak rule of law, political instability).
l Dealing with sectors that are ‘hard-to-tax’ everywhere, including small businesses, small farms, and
professionals. This is particularly important where administrative capacity and incentives to comply are
weak. ‘Informality’ is extensive in developing countries and is one of the most egregious evasion. The
issue is perhaps better framed as one of non-compliance.
III. Best Practices
The digitalization process in the structures and functions of the Tax Administrations, which have accelerated
exponentially due to the ongoing pandemic, is of vital relevance in all this and is having a strong impact on
various measures to facilitate tax compliance, thus giving rise to new ways of relating with taxpayers, such
as the virtual office.
The virtual office stands out as a general access point that the Tax Administrations make available to
taxpayers so that they can easily carry out their tax procedures online. In many countries, progress has been
such that the same information and assistance services can already be carried out through it as in person.
Related to this, the web portals of the TAs are a vital element, which is why it is very useful to have tools
such as a single portal and a citizen folder where citizens can access their records, view their ongoing
procedures, and even start new procedures, all in one place. Income tax department do provide such some
details to taxpayers in form of Annual Information System and Form 26AS.
Another novel facilitation mechanism is the option of Virtual Assistants that work on the basis of Artificial
Intelligence to fulfil information and assistance functions. These are already used in many countries in
America such as Brazil, Chile, Mexico, Guatemala, Peru, Colombia, Canada, and also in Europe such as
Spain, United Kingdom, Sweden, Finland to name specific examples.
Another way of facilitating tax compliance is to communicate the data that the TA has on each taxpayer,
prior to the expiration of the obligation to file the return, always with the warning that the data may not be
correct and that, if there are more data with tax significance, they must be declared by the taxpayer, even
if they have not been communicated by the TA.
A very important facilitation tool is the simplification of forms, procedures, and processes within the TAs,
as well as the simplification of the tax system in general, an aspect in which I understand that digitalization
should contribute a lot.
IV. India Scenario
Over the past few years, the government has embarked on a mission of major tax reforms, with the focus
on reduction in tax rates, simplification of tax laws, efficiency, transparency, and ease of paying taxes. The
sustained efforts of the finance ministry at making India’s tax administration taxpayer-friendly and gearing
it towards the facilitation of voluntary compliance is commendable. There has been a marked shift in the
role of the tax department in recent years, from being just a revenue collecting organization to becoming a
more citizen-centric one.
The country’s tax agencies have been responsive to the needs of taxpayers during the pandemic period.
They have relaxed various compliance requirements and addressed their liquidity concerns. It is hopeful
that not only would the tax department continue to play a critical role in the growth of the nation but will
also strive to continue setting new standards.
Ease-of-doing-business efforts have been made in providing efficient taxpayer services across the spectrum.
E-governance has been a key endeavour, while the Vivad Se Vishwas Act has helped to reduce litigation and
provide dispute resolution, among other measures.
Over the past few years, the government has taken various steps to improve the taxpayer experience
by reducing physical interaction between tax officers and taxpayers and by making available various
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functionalities online. Some of the important steps introduced recently include a facility to verify authenticity
of tax notices through the use of a document identification number (DIN), allotment of an e-PAN using the
taxpayer’s Aadhaar card within 10 minutes, and PAN-Aadhaar interchangeability.
The Income Tax Department has moved forward with prefilling of income tax returns to make compliance
more convenient for individual taxpayers. Compliance norms for startups have also been simplified. Several
measures have been taken to promote digital transactions and electronic modes of payment.
The faceless e-assessment system for income tax that is currently being piloted is a milestone initiative
towards these goals. This places India as one of the few countries in the world to adopt a system of faceless
assessment. The scheme will go a long way in eliminating a human interface in the income tax assessment
system.
V. Ranking
While major steps have been taken by our taxation department in recent times to improve the facilitation
between taxpayers and tax department, it is always best to get our performance benchmarked from the
best countries.
As per a report of World bank, India ranks 115 in the ranking of ease of tax compliance in the world requiring
average 252 hours annually to do such compliance as against just 23 hours in Bahrain. Hence, there is a lot
of scope for improvement in tax paying score of India.
Location Paying Taxes scorePayments (number Time (hours per Paying Taxes
per year) year) rank
Bahrain 100 3 23 1
Hong Kong SAR, China 99.7 3 35 2
Qatar 99.4 4 41 3
Ireland 94.6 9 82 4
Mauritius 94 8 140 5
Kuwait 92.5 12 98 6
Singapore 91.6 5 64 7
Denmark 91.1 10 132 8
New Zealand 91 7 140 9
Finland 90.9 8 90 10
India 67.6 11 252 115
Sri Lanka 59.8 36 129 142
Bangladesh 56.1 33 435 151
Nepal 47.1 46 377 175
Source : https://www.doingbusiness.org/en/data/exploretopics/paying-taxes/good-practices
VI. Brainstorm – What’s the solution ?
The main reason for adverse tax score of India is the complex tax structure of Indian tax legislation. While
on paper, it seems like there are only two taxes (income tax and GST), the compliance requirement for each
and every transaction is not as easy as it seems.
Let’s analyse a transaction wherein a company A is paying fee for software maintenance service to a
company B. Following compliances need to be done for this transaction :
A. TDS : Company A will have to identify whether any TDS is required to be deducted in the instant case
and the rate for the same since, different rates has been notified in different sections. It will pay the TDS
to government by a challan using a website (let’s call it Portal 1) and file its TDS return through another
portal (Portal 2).
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B. Books of account : Both company A and company B will have to record such transaction in its books of
accounts using their accounting software (Portal 3 and 4).
C. GST : Company B will collect GST from company A and will deposit the same to government using
portal 5.
D. Payment : Payment for such transaction will be made using bank portal (Portal 6).
As one can see, a single transaction needs reporting/ processing on 6 different portals with no interlinking
among each other. If all transactions can be done using one common portal staring from accounting to taxes
and invoicing to payment, it will substantially reduce the cases of underreporting and also enable ease of
compliance.
While that looks like a good solution, but one cannot overlook the challenges which this will introduce
including possibility of downtime of portal, processing capabilities of portal etc.
VII. Conclusion
Taxation provides governments with the funds needed to invest in development, relieve poverty and deliver
public services. It offers an antidote to aid dependence in developing countries and provides fiscal reliance
and sustainability that is needed to promote growth.
To serve the two-fold objective of ease of doing business for taxpayers and maximum revenue collection for
taxation department, there has be a clear and hassle-free channel of communication between the two.
The taxpayers should not see the tax compliance as a statutory mandate, rather should be encouraged
to contribute to the development of the economy by ensuring full disclosure and timely compliance of
provisions.
On the same note, the taxation departments should ensure that the taxpayers are not overburdened with
compliance affecting their day to day operations.
Efficient tax administration can help encourage businesses to become formally registered, thereby expanding
the tax base and increasing tax revenues. Tax administration that is unfair and capricious is likely to bring
the tax system into disrepute and reduce the government’s legitimacy.
References:
https://www.oecd.org/ctp/48993634.pdf
https://www.doingbusiness.org/en/data/exploretopics/paying-taxes/why-matters
https://www.ciat.org/ciatblog-digitalizacion-de-las-administraciones-tributarias-y-facilitacion-del-
cumplimiento-tributario/?lang=en
https://www.elibrary.imf.org/view/books/071/07173-9781589060265-en/ch13.xml
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Dynamic Power of Auditing
& Inherent Regulatory
Challenges
Unnati Kotecha
Auditing as a process has evolved since time. In the Eighteenth Century, auditing was synonymous to detection
of fraud, and the processinvolved detailed verification.All without concepts like testing and sampling even
coming into place. The process had the only objective of verifying the honesty of persons charged with fiscal
responsibilities.
If you are familiar with the police men theory, you might as well have heard:
“An Auditor is a Bloodhound and not a Watchdog”.
When time passed and nations developed, with various laws being enacted, auditing became more formal in its
approach. Appointment of Auditors was provided to ensure auditing of companies but as law making was rigid,
duties of auditors were influenced by the decision of courts.
With the advent of functioning financial markets, auditing hadexperienced a widespread change. Emphasis was
laid on providing credibility over a company’s financial statements to its shareholders. The concept of materiality
was used in this period. Sampling techniques began to be used due to the voluminous transactions involved in
the conduct of business by large corporations operating in widespread locations. As size of organizations grew
over time, auditors began to rely on companies’ internal control in their audit procedure.
Then came the period after 1960s to till date. Technology had set its foot in all arenas and industries. Business
Risk approach was a major factor now, driving all auditing objectives to focus on those areas which are more
likely to contain errors. CAATs (Computer Assisted Audit Techniques) were introduced now to facilitate data
extraction, sorting and analysis procedures.
The chief utility of audit lies in reliable financial statements on the basis of which the state of affairs may be easy
to understand. Apart from this, auditing is significantly important from the vantage point of various aspects:
1. It safeguards the financial interest of persons who are not associated with the management of the entity,
whether partners, shareholders, etc.
2. Audit ascertains whether the necessary books of accounts and allied records have been properly and
accuratelykept.
Inherent Regulatory Challenges
The auditor is not expected to, and cannot reduce audit risk to zero. This is because of the inherent limitations
of audit.
These limitations vary, by and large, from - The Nature of Financial Reporting, Nature of Audit Procedures, to
Timeliness and risk factors and regulatory challenges.
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Business-related regulation and framework:
Compliance Auditors need to evaluate the laws identified,check whether proper system and processes are
established for timely compliance andreview various compliances with related regulations and frameworks.
For example, if the corporation is listed on the stock exchange outside the country that they are operating. Then
they need to make sure that the entity complies with the requirement of that stock exchange requirement.
Copious number of compliances and other laws that need to be considered are:
• Companies Act, 2013
• SCRA
• SEBI
• FEMA
• Depositories Act, 1996
• Takeover Laws
• Industry Specific Laws (Banking, Insurance, Shipping, Mining, etc.)
• Other Laws (e.g., Competition Law, Labour Law, etc.)
Can we do all this manually with so many laws and compliances(Legal, Corporate,Periodic, Event-based
Compliances, etc.)?
Or can we expect the auditing process to be free of or lenient when it comes to following the regulatory
challenges?
The obvious answer is no.
Latest technology has to be adopted with time and adopting technology to defeat technology is the next survival
strategy.
With unprecedented advances in information technology, audit professionals need to gear up to face the
challenge of auditing emerging technologies. Auditors are well learning new skills and acquiring knowledge
related to predictive analytics, robotic process automation (RPA), blockchain, machine learning and artificial
intelligence (AI).
Recent Amendments:
The Ministry also made amendments in Rule 11 of Companies (Audit and Auditors) Rules, 2014 with respect to
comments to be made by auditors:
“The auditor’s report shall also include their views and comments on the following matters, namely:
Whether the company, in respect of financial years commencing on or after the 1st April, 2022 has used such
accounting software for maintaining its books of account which has a feature of recording audit trail (edit log)
facility and the same has been operated throughout the year for all transactions recorded in the software and
the audit trail feature has not been tampered with and the audit trail has been preserved by the company as per
the statutory requirements for record retention.”
These recent amendments have brought a storm in the regulatory as well as auditing services sphere as reporting
requirements have increased on the part of both the auditee as well as the auditor.
Changing risks
A large class of “digital” goods and services have emerged and the use of digital methods of promoting goods
and services (digital marketing), as well as the capabilities of artificial intelligence and the growing cyber threats
are increasing.
Examples: remote asset management using gadgets with biometric user identification, analysis of consumer
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preferences. Extensive automation leads to the presence of system vulnerabilities that can be exploited to harm.
Internal auditors, therefore, need to re-prioritize their different risk categories, allocating more time and
resources to the areas of cyber security and undertaking strategic risk management audits.
SA 250 Consideration of Laws and Regulations in an Audit of Financial Statements
• Responsibility for compliance with Relevant Laws and Regulations:
o According to SA 250, it is the responsibility of the management, with the oversight of Those Charged
with Governance (TCWG) to ensure that the entity’s operations are conducted in accordance with the
applicable laws and regulations.
• Impact on the Financial Statements:
o The provisions of laws and regulations may either have a direct or an indirect effect on the reported
amounts and disclosures on the financial statements.
o Non-Compliance may result in fines, penalties, litigations or other consequences for the entity that may
have a material effect on the financial statements.
• Auditor’s Consideration for Compliance with Relevant Laws and Regulations:
o The auditor has to obtain a general understanding of the following:
1. The legal and regulatory framework applicable to the entity or sector in which the entity operates;
2. Entity’s compliance with the relevant framework.
o The auditor shall obtain sufficient appropriate audit evidence regarding compliance with other laws and
regulations generally recognized to have a direct impact on the determination of material amounts and
disclosures in the financial statements;
o Auditor shall perform the following audit procedures to identify the instances of non-compliance:
1. Inquiry with the management; and
2. Inspecting, correspondence, if any, with the relevant licensing or regulatory authorities.
o To maintain professional scepticism throughout the audit;
o Obtain a written representation as per SA 580, from the management stating that all the instances of non-
compliance or suspected non-compliance with laws and regulations have been disclosed to the auditor.
Challenges when Auditing Cryptocurrencies
The novelty, ambiguity, and the lack of official guidance surrounding cryptocurrency transactions impose
additional audit risks that should be considered during client acceptance and retention and planning audit
procedures.
The auditor should consider the volume and/or dollar value of the cryptocurrency transactions and the valuation
within the account(s). Risks would be higher for accounts with cryptocurrency assets or transactions exceeding
the portion of overall materiality allocated to a specific account balance. The emerging nature of the currency,
the lack of authoritative guidance for accounting, reporting, disclosure and auditing, the lack of consistent laws
and regulations increase the risk of material misstatement in an account balance.
Given the rapid advancements and creation of new cryptocurrencies, audit procedures need to be consistently
reviewed and updated to consider additional risks that have not been mitigated.
Auditing is now at a significant juncture. Specifically, advances in information technology in conjunction with
real-time approaches to conducting business are challenging the auditing environment.
Auditing of Artificial Intelligence:
The use of AI is projected to grow exponentially in the near future. The market for artificial intelligence software
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automation is expected to grow substantially in the next five years. Estimates are that the use of artificial
intelligence will grow from approximately $10 billion in 2019 to $125 billion by 2025. As artificial intelligence
grows in importance and use, the role of internal auditors will have to evolve in lockstep to address a variety of
new challenges that have yet to be fully contemplated.
AI also represents opportunities for internal audit to provide leadership in audit assurance as well by educating
business leaders on the safe use and implementation of AI systems.
There should not be a “one size fits all” audit framework for artificial intelligence, nor should any standard
remain static given the rapid pace of change in technology.
Conclusion
Audit can be more than just a form of assurance; it can be valuable in itself rather than being dependent on
the value of the information that it is assuring. Stripped to its raw conceptual elements, audit is a form of
social conscience. It is an alternative voice that through listening and subsequent action makes a difference that
causes people to stop and reflect, to act before an issue arises.
Future audit approaches would likely require auditors, regulators, and standards setters to make significant
adjustments.
Such adjustments might include (1) changes in the timing and frequency of the audit, (2) increased education
in technology and analytic methods, (3) adoption of full population examination instead of sampling, (4) re-
examination of concepts such as materiality and independence, and (5) mandating the provisioning of the audit
data standard. Auditors would need to possess substantial technical and analytical skills.
Auditing has made great strides in the past decade, but it has not seemingly kept pace with the real-time
economy. Some auditing approaches and techniques that were valuable in the past now appear outdated. The
auditing evolution has reached a critical juncture whereby auditors may either lead in promoting and adopting
the future audit or continue to adhere to the more traditional paradigm in some manner.
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Walking a Different Path –
Alternative Career
for CAs
Shubhankar Jaiswal
A BRIEF BACKGROUND
CA is one of the most prestigious degrees and respected professions. When I started pursuing CA, everyone
around me opined –“After CA, you have to build career in Accounts, Finance or Tax. That’s what a CA does”. I
assumed that to be true until years later when I realised how myopic that mind-set was and that’s how fallacy
of qualification is.
Today, I personally know:
- CA who is a digital marketing expert,
- B.Tech who heads a financial Institution,
- CS who is playing state level cricket,
- MBA who is stand-up comic,
- Lawyer who is a teacher, and
- College drop-out who runs a BPO.
Degree/Qualification is never intended to lock or restrict
Careers. Infact,it is meant to give you freedom, confidence
and a backup to fall upon if nothing works out.
Degree is not a certificate of “Future Capability”, of what can do
in future but it’s justan evidence of past focus, determination
and perseverance.
WALKING A DIFFERENT CAREER PATH
If you’re contemplating a career change, you’re not alone.
An EdX survey found that 32% of people between the ages
of 25 and 44 considered making a career change, and 29%
already had! It’s not uncommon to meet a lawyer who’d like
to work in renewable energy, or an app developer who’d like
to write a novel, or an editor who fantasizes about becoming
a landscape designer.
Today’s millennials want more out of their careers than just
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a regular 9-5 job and decent pay. Gone are the days when traditional career paths like engineering, banking,
teaching and accountancy held sway and were sought after by everyone. Chartering the unconventional route is
the latest norm for anyone who dares to think out of the box or wishes to create a niche space for themselves
in the world.
No matter how many inspirational quotes you memorize about following your passion, Career change was, is
and will never be a straightforward process. However, the key is to take the first step.
ALTERNATIVE CAREERS FOR CAs
How many career alternatives do you have?
The answers vary, but the reality is that the options and alternatives are likely greater than you think. Discovering
your passion requires you to stop and try something different, even though you are moving into unfamiliar
territory.It’s a chaotic journey of exploration and to do it right, you have to experiment with, test, and learn
about a range of possible opportunities.
Belonging to CA fraternity, already sets the bar really high. Often quoted as one of India’s toughest degrees to
accomplish, we are blessed to have a mother-board such as ICAI who not only has a diverse pool of people in
the community but also helps us connect to India’s most respected professions.We as a community, have always
played pivotal roles as Partners in nation building to being financial doctors of the economy.Below is an exclusive
list of all under-explored career options that has immense potential for us- CAs and our community, in each role
serving the nation and world, to the utmost.
l POLITICS:
Breaking into the world of politics can be difficult if
you aren’t familiar with its structures and nuances.
But not, if that’s all what excites you and you have the
determination to serve the country with good deeds,
both in letter and spirit.
Shri Rameshwar Thakur (Hon’ble Governor),ShriK
Rahman Khan (Deputy Chairman of Rajya Sabha-
Congress), Shri ND Gupta (Former ICAI President, is
Current Member of Rajya Sabha- AAP),ShriSuresh
Prabhu (Current Minister in Modi Government), Shri
Piyush Goyal (Current minister in Modi Government), Shri Kirit Somaiya (BJP MP from Mumbai North East,
has record of submitting maximum petitions),Shri N.K.P Salve, ShriRaghav Chadha (AAP Delhi),Shri Rajesh
Sharma (BJP spokesperson)can be looked upon as a role model for every aspiring CA who potentially
wants to turn to politics.
l INTERNATIONAL LIGITATION & JUDICIARY:
A career which has huge opportunities and fame to look
upon. Surely, international litigation & judiciary is one
career which attract huge youth population in a country
like ours. ShriAnil R. Dave, Judge of the Supreme Court
of India&Shri Harish Salve, recipient of Padma Bhushan,
who fought the case of Kulbhushan Jadhav at the
International Court of Justice and is India’s highest paid
lawyer is one suchpersonality to look upon for required
courage and inspiration.
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l CIVIL SERVICE:
Moving on to the most reputed and glamorous profession in

India. I’m sure many of us would have a long-pending desire
to be an IAS, IPS or IRS officer and serve the country and
I strongly believe CAs are best administrators country can
produce. Shri Ruchika Katyal (AIR-5 CSE, IAS),Shri Navneet
Sehgal IASof Uttar Pradesh cadre,Shri R Rangarajan CA-cum-IAS
turned to politics,Shri Praveen Garg the Additional Secretary of
MoEFCC,Shri Praveen Gargthe Additional Secretary of MoEFCC andShri Sanjay Agarwal, the Secretary of
Bihar’s Transport Department to name a few are from CA community serving the country as IAS officers.
l ENTREPRENUERSHIP & BUSINESS:
Entrepreneurship isn’t easy and certainly not for the faint-hearted. To be an entrepreneur, you need to
be extremely resilient. There’s always the risk that the business doesn’t succeed and if it does, growing a
company can take a great deal of time and commitment.We really do come from two Indias: one, where
some successful people set a trend and make it big, and other, where masses chase that trend to get lost
in oblivion.
Entrepreneurship& business is a path that’s quite less trodden

upon! Interestingly, CA community is nowaccelerating at an
unparalleled speed in entrepreneurial& business space.
Shri Radhe Shyam Agarwal, co-founder and Executive Chairman

of Emami, Shri Srikanth Balachandran, Global CHRO of Bharti
Airtel,Shri Pramod Bhasin, President, CEO, Genpact, Shri Kumar
Mangalam Birla, chairman of Aditya Birla Group,Shri Nitin
Soni,CEO of Adhayyan Books International, Shri Niranjan Hiranandani, real estate businessman, founder
of Hiranandani Group,Shri Krish Iyer, CEO of Walmart India,Shri Nirmal Jain, founder and chairman of IIFL,
Shri T. K. Kurien, CEO of Wipro, Shri Keki Mistry, ex-CEO of HDFC Bank, Shri R. S. Lodha, former chairman
of Birla Corporation, Shri Vinay Maloo, founder and chairman of Enso Group, Shri Keshav R Murugesh,
Group CEO of WNS Global Services, Shri George Alexander Muthoot, CEO of Muthoot Group,Shri Dinesh
Nandwana, founder and managing director and CEO of Vakrangee Limited,Shri Motilal Oswal, chairman
and MD of Motilal Oswal Group,T.V. Mohandas Pai, chairman of Manipal Global Education, former CFO of
Infosys, Padma Shri awardee, Shri Deepak Parekh, Chairman of Housing Development Finance Corporation
& HDFC Bank, Shri Aditya Puri, MD & CEO of HDFC Bank, Shri Chitra Ramkrishna,former CEO of National
Stock Exchange (NSE),Shri Sethurathnam Ravi, former Chairman Bombay Stock Exchange, Shri Subhash
Runwal, founder and chairman of Runwal Group, Shri Dhivya Suryadevara, CFO of General Motors,Shri
N.J. Yasaswy, founder of the ICFAI Business School, Shri Aman Gupta, Co-founder Boat &Shri Namita
Thapar, CEO of Emcure Pharmaceuticals to name a few.
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Seeing this list, it could be right to call ICAI as “The CEO Factory of India”
But why do we need more CA entrepreneur?
l Let’s remember the speech delivered by Prime Minister
Shri Narendra Modi, on the occasion of ICAI’s foundation
day and GST day in 2017.
l He addressed us, the CA fraternity, as “big pillars” of
Indian Economy and expressed his vision to see “New
Big 4s” which have Indian origins.
l We, CA fraternity, have to make the New Big 4s of
Indian origins, a reality; for which to happen, we need
to explore & capitalize this entrepreneurship ventures.
l FINANCE:
Finance as a field is quite diverse and CAs were kept at
bay for a long span at the cost of IIM Grads. However, now
gradually things are changing, CA s are getting into niche
core finance fields like Investment banking, Private equity,
Risk Management, Equity research and Venture capital. CAs
has proven to have stock market insights and are trusted
by many form day-to-day stock handling to managing
high value hedge funds. Shri Rakesh Jhunjhunwala,
investor&India’s own Warren Buffet, lead the rally when
it comes to stock market and Shri Girish Paranjpe, venture
capitalist sets the bar high for VC networks across the country.
l DIGITAL ERA ENTHUSIASTS:
With the 4th industrial revolution (Industry 4.0) underway, future trends present a great opportunity for
us, the CA community, to disrupt and innovate by using technologies such as Blockchain, NFTs, Metaverse,
the Internet of Things (IoT), Artificial Intelligence (AI) & Machine Learning (ML), among others.Adoption
of these will not only help the community to grow and resist the ever-changing landscape but also help us
take the leadership role as innovators in the world, thus providing a trigger to economic growth in India
and creating jobs, prosperity for people at large.
l OUT-OF-THE-BOX:
Some honourable mentions to the CA in the community
for following and achieving heights are Shri Srikant Datar,
Dean of Harvard Business School, Shri Naina Lal Kidwai, first
Indian woman who pursued MBA from Harvard University,
Group General Manager and Country Head of HSBC India,
Shri Shekar Kapur, film director, Shri Sunil Kothari, Padma
Shri & historian, Shri T. N. Manoharan, Padma Shri awardee,
Shri Aroon Purie, founder and editor-in-chief of India Today
and Chief Executive of the India Today Group, Shri Prannoy
Roy, chairman of NDTV, Shri Buddhadeb Guha, novelist,
Shri Vijay Govindarajan, NYT and WSJ best selling author, Coxe Distinguished Professor at Tuck School
at Dartmouth, Shri Gurumurthy, co-convenor of the Swadeshi Jagaran Manch, journalist, Shri Bhupen
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Khakhar, painter, Shri Atul SatyaKoushik, Indian theatre director and playwright, Shri Pragnya Mohan,
international sportsperson, Shri Shyam Pathak, actor, Shri Narendra Kumar Salve, former Union minister
and President of Board of Control for Cricket in India (BCCI), Shri Sanjay Subrahmanyan, musician, Shri
G. Venkateswaran, film producer,Shri V. G. Narayanan, Professor of Accounting & Management, Harvard
Business School, USA.
Next Gen CAs are more focused on passion & do something out of the box rather than to work 9 to 5.
This has opened many non-conventional opportunities for us and thanks to COVID and subsequent, “the
great resignation” across the world, it has main-streamlined the non-conventional more.Be it being Artist,
YouTuber, Travellers, Marketing specialist, Sports or anything, CAs are rising exponentially at ease.
CONCLUSION:
It is quite relevant to recall our founder President Shri Gopaldas
Padamsey Kapadia, who had said:
“…it will take time to build up its (Institute’s) traditions and I
am sure that in course of time the Institute will have the best of
traditions of which the profession and the country will be proud
of. The assistance of the members of the profession as also the
Government and public is necessary in building up the Institute
and I am sure that this be had in the fullest measure.”
His words were both wise and prophetic. Our membership has
been contributing to the economy of our nation and in all possible
ways strengthening the foundations of the Institute. Our glorious
past puts more onerous responsibilities on all of us to continue to be the custodians of public interest & welfare,
and will continue to discharge all responsibilities in the best interest of the nation.
The future holds immense promise and we are humbly contributing to its creation.
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Knowledge
Session 5
Genesis of GST in India
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GST – Good & Simple Tax -
Bane or Boon?
Divya S Jain
PART I - INTRODUCTION:
On the historic date of 1st July 2017, the Indirect Tax Structure of India was revamped when the Goods &
Services Tax (GST) Law was made applicable by subsuming almost 13+ indirect taxes which included CENTRAL
EXCISE, State Vat, Services Tax etc.
The objectives of implementation of GST law, inter alia, included –
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However, if we look at the scenario today, i.e. after 4.5+ years of experience, the dream of simple indirect tax
structure seems to have been shattered. Without any doubt, there are flaws in GST law and its implementation.
Without prejudice to others’ view, the reasons in our understanding as to why GST law has not been able to
achieve its primary objectives of simplification, would include:
• Enormous Confusion: With the existence of 800+ notifications, 170+ circulars, numerous advance rulings,
judgments etc., the law has created confusions rather than simplicity.
• Divergent Views: Every law is subject to interpretation issues. Similarly placed GST law is not an exception.
Consequently, there are possibilities of divergent views leading to disputes.
GST Portal Glitches and many more such reasons could be there.
Through this article, the author wishes to express her views on various issues that still persists under GST,
analyse the same from various perspective.
PART II – GOODS & SERVICES TAX IN INDIA – A JOURNEY SO FAR:
Taxpayers’ Perspective:
Taxpayers and business houses are the heart of the country from fiscal viewpoint. The primary assessment
whether GST law is a bane or boon, should be made from the perspective of the taxpayers. Talking about
journey of GST law in India in last 4.5+ years, certain aspects need to be evaluated.
Compliances.
What was promised to the taxpayers, was online and easy compliance mechanism where auto matching of data
furnished by supplier with the data furnished by recipient would be there. However, the glitches on GST portal
never allowed the implementation of the same. In fact, what has been implemented, could not smoothly be
functional as well. Further, changes in returns, promise to bring new returns system (eventually undelivered)
etc. are other failures experienced.
Along with that, the provisions related to E – Way Bills, E – Invoices etc. have also been introduced. Despite its
positive objectives, these provisions are detrimental to the businesses to the extent that non-compliance attract
huge penal provisions even in genuine cases.
Input Tax Credit: Seamless or Seems Less?
At the very outset, a dream of seamless Input Tax Credit (ITC) was shown to the taxpayers. The primary purpose
was to remove cascading effect of taxes and reduce the overall burden on taxpayers. However, considering the
current position of law, there seems a huge gap between what was promised and what is being delivered. The
reasons for such comments would be:
• Denial of ITC to genuine recipient because of the fault of supplier.
• Blocking of ITC electronic ledger of the taxpayer even on grounds of default by the supplier.
• Impractical expectations from recipient to check payment of taxes by supplier to Government, to claim
ITC.
• Blocked credit even in genuine cases.
Government’s Perspective:
Eradication of Fraud Cases – Analysis.
With an intention to curb tax evasion cases, a new indirect tax era was expected. Despite the fact that there have
been instances where tax authorities have unearthened fraud cases in GST. Entities like Manpasand Beverages,
WAZIR X and many more have been alleged of tax evasion of crores of tax, the question on reduction in fraud
cases is still unanswered. Further, none of such cases have attained finality and none of the accused has been
prosecuted yet. This raises a question on the genuineness of allegation as well.
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Whether Litigation Reduced?
The answer to the question might be subjective. However, the primary aim of simplifying the indirect tax law
seems to have been hibernated. If we look at practical cases, there are 100s of judgments from High courts or
supreme courts deciding various issues related to law. These litigations are only products of complexity and
some sort of repugnancy.
Economy’s Perspective:
Ease of Doing Business?
Certainly, the law does not seem to have achieved
its objective of promoting ease of doing business.
Undoubtedly, the law is new and needs time to
settlement. However, in the experience so far,
taxpayers seem to have been feeling like its “end of
doing business” and not “ease of doing business”.
Sometimes, the reasons is complex law, while
sometimes its bureaucrats’ activities.
Revenue Collection.
Although the GST collections were not as robust
as expected in the initial years, there has been a
steady increase every year on account of the efforts
put in by the government in rationalizing the law
as well as using technology to detect fraud and tax
evasion.
Further, if we exclude the first six months of FY 21
which were impacted due to the first wave of COVID-19, the second half of FY 21 witnessed an average GST
collection of approximately Rs. 1.13 lakh crore per month.
PART III – 3. ISSUES AND CHALLENGES IN GOODS & SERVICES TAX LAW:
Interpretational and Constitutional Issues:
Taxability of Liquidated Damages.
In case of a contract, if as a part of contract, one party agrees to pay certain
some of money on account of damages caused to another party by non /
improper fulfilment of a contract, whether the same shall be treated as a
consideration by the payer for a supply and thus taxable?
The definition of “supply”, read with the definition of “services” includes
the same. Further, Entry 5(e) of Schedule II provides that ”agreeing to the
obligation to refrain from an act, or to tolerate an act or a situation, or to do
an act”.Now, the person accepting the damages can be said to be tolerating an act of non fulfilment of contract
by another party.
However, some may be of the opinion that the said consideration is not for a separate supply, but a condition
to the main contract.
Presence of multiple verdicts and interpretation in this regard create dispute and leads to litigations.
Blocked Credit in Case of Construction of Immovable Property.
Pursuant to Sec 17(5)(c) / (d) of CGST Act, 2017, ITC on goods / services or works
contract services for construction of immovable property is not allowed. In fact, ITC
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in such case is disallowed even if such immovable property is used in normal course of business. This leads to
cascading effect and seamless flow of ITC does not seem to be there.
Excessive Delegation Exercised by Rules.
It is not debated that Government has powers to make rules for carrying out provisions
of CGST Act, 2017. However, can rules be made without getting powers conferred from
the Act itself? Certainly no. However, following are some situations where Rules have
overridden the Act.
• Sec 37 empowers rules to prescribe manner for filing form GSTR – 1. However, Rule 59(6), without any
power from Act, restricts on filing GSTR – 1 in case GSTR 3B for previous period is not filed.
• Sec 16(2)(aa) provides that ITC is allowed to recipient if supplier communicates the same in the manner
provided in Sec 37 (it does not mention time limit). However, Rule 36(4), w.e.f. 01st Jan 2022 prescribes
that ITC shall be allowed to recipient only if it is reflected in GSTR 2B (time bound static form).
• Sec 54(1) provides that Rules may prescribe the form and manner of application for refund. However,
Rule 89(4), in case of refund related to ITC on zero rated supply made without payment of taxes, provides
maximum capping on the value of “Zero Rated supply of goods” for the purpose of calculation of refund.
Punishing Genuine Recipient for the Fault of Supplier.
Whether we talk about Sec 16(2)(aa) where recipient can take ITC only when details of such supplies have been
furnished by supplier in GSTR – 1, or we talk about Sec 16(2)(c), where ITC can be taken by recipient only when
tax has actually been paid to the Government by the supplier, or we talk about Rule 86A where ITC of recipient
is blocked in case the supplier is engaged in fraudulent activity, the of the question in dispute is why genuine
recipient is punished for the fault by the supplier?
Issues Arising During Assessment Proceedings:
Well, in a self - assessment based tax structure, it is imperative that the revenue department assesses the details
furnished, taxes paid, input tax credit claimed etc. by the taxpayer and to ensure that everyone is complying
with the law as required. While exercising the duties related to assessment and adjudication, many times,
department also creates a situation of unnecessary litigations. This includes:
Extra – Ordinary Powers to Officers in Certain Cases.
“Power Corrupts and Absolute Power Corrupts Absolutely”. This statement suits very well in tax laws. With
the imposition of powers like blocking of credit ledger of the recipient u/r 86A or cancellation of registration,
demands and recovery etc., the GST law has left the taxpayers exposed to harassment and disruption in business.
Baseless Notices by Officers in Some Cases.
This is the main problem of our adjudication system, as SCN is a first level or beginning state of any litigation
and the department without any proper grounds or basis are initiating the same. This has led to unnecessary
litigation in the country. For instance, notices are still being issued for paying Interest on Gross Liability instead
of Net Liability even after retrospective amendment in the law. Such notices per incuriam are detrimental to the
economy as a whole.
PART IV-IMPORTANT MEASURES BY GOVERNMENT SO FAR:
As mentioned earlier, the implementation of GST law was with the ray of hope
that it will promote ease of doing business, reduce burden of small businesses and
improve overall economy of the country. Undoubtedly, the Government has been
continuously working to bring out changes in the law, for the favor of the economy.
This would include:
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Reducing the Claim of Fake ITC.
With the provisions like Sec 16(2)(aa), Government has tried every possible way, even if harsh for some genuine
taxpayers, to make sure that no person should avail any input tax credit, the details of which are not furnished
to the Government by the supplier. Further, provisions like Sec 16(2)(c) requires that the tax must be paid to the
Government and then only the recipient can claim ITC of the same.
Reducing the Passing of ITC without Actual Payment.
Provisions of Rule 59(6) ensures that no taxpayer shall be able to file
GSTR – 1 (to pass on ITC) in case of failure to file GSTR 3B for preceding
period.
This however, ensures the filing of GSTR 3B and not actual correct tax
payment. To cover that aspect, provisions of Sec 75(12) and Sec 79 are
placed as safeguards. So, if a person discloses liability in GSTR – 1 but
does not pay the same through GSTR3B, the same may be recovered u/s 79.
E – Way Bills and E – Invoicing.
Provisions like e-way bills and e-invoicing bills are in place to ensure that
movements of goods can be tracked to some extent, real time reporting
of invoices etc. Keeping in mind the interest of small businessmen and
also their hardships, these provisions have been made mandatory only
above a certain threshold.
Other Provisions FOR Trade Facilitation.
• Common GST portal, instead of multiple portals for filing returns, reply to notices,
appeals etc. have reduced hardships to some extent.
• Guidelines issued w.r.t. Rule 86A, Sec 83 to ensure that powers are exercised by
officers with due care and regards to law and facts.
• Instruction issued to ensure that mere differences between GSTR 1 and 3B should
not be the reason for recovery u/s 79 without hearing the taxpayer’s contentions.
PART V-CONCLUDING REMARKS
The discussions made in Part I to Part IV till here makes it crystal clear that GST law lacks
simplicity as promised. With such a paradigm shift in the tax structure, both taxpayers and tax administrators
are struggling to settle. The steps taken by Government so far are appreciated but at the same time, the burning
issues and hardships to the taxpayers cannot be ignored. A wise person would need no explicit explanation
whether GST is a bane or a boon. The issues discussed and the probable future litigations are the reasons to
form a basis to decide the same.
We hope the law would attain simplicity and settlement soon.
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Format of GST – Suitable to
India?
Ritika Mayaramka
INTRODUCTION
“Taxation should not be a painful process for the people. There should be leniency and caution while deciding
the tax structure. Ideally, Governments should collect taxes like a honeybee, which sucks just the right amount of
honey from the flower so that both can survive. Taxes should be collected in small and not in large propositions”.
• Chanakya
What is GST?
GST is a destination-based consumption tax levied at multiple stages of production and distribution of goods
and services, with taxes on inputs credit against taxes on output.
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VARIOUS MODELS OF GST
There are various broad models of GST prevalent across the globe viz. National GST, State GST, Non- concurrent
Dual GST, Concurrent Dual GST and Quebec Model. However, for India, the policy makers have opted for the
“Dual GST” model wherein both the Centre and the State(s) will have the concurrent powers to levy taxes on
both goods and services. This model would take care of the federal character of the Indian Constitution and the
concern for retaining the fiscal autonomy of the State(s).
A detailed view on structure of GST to be introduced in India was presented in the form of “First Discussion
Paper on GST in India” and was published on 10-11-2009. The report also favoured a dual GST system.
Some Salient features of the GST Model:
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IMPACT ON GST ON VARIOUS SECTORS
Power – Electricity Sector:
Power or electricity plays a vital role for infrastructure development and growth of an economy. Even though
generation of power is exempted from Excise Duty, VAT, Service Tax, still condition of power sector is not
favourable due to multiplicity of taxes on capital goods and inputs like Basic Excise Duty, Customs Duty, Royalty
on Cost, State Electricity Duty, etc leading to cascading effects on electricity generation, transmission and
distribution.
If Electricity Duty gets subsumed in GST, then full credit would be available for the taxes paid on the capital
goods, raw material, etc and thereby would significantly reduce the cost of power projects and create base for
industrial development in an economy.
Tobacco Industry:
First Discussion paper on GST in India by the Empowered Committee of State Finance Ministers dated
10-11-2009
It is recommended that Tobacco products would be subjected to GST within Input Tax Credit. Centre may be
allowed to levy Excise Duty on tobacco products over and above GST without Input Tax Credit.
In nutshell, Tobacco and Tobacco products would be included in GST as well as also chargeable to Central Excise
Duties. Thus, the consumers are likely to face the burnt of Double Taxation in GST regime as well.
Petroleum Industry:
As regards Petroleum crude, diesel, petrol, Aviation Turbine Fuel and Natural Gas are concerned, they are not
presently leviable to GST. GST will be levied on these products from a date to be notified on the recommendation
of the GST Council. Therefore, the cascading will continue to remain in the GST regime as well and such products
are chargeable to following levy of present taxes:
• Central Excise Duty
• VAT/CST, as applicable
Alcohol Industry:
First Discussion paper on GST in India by the Empowered Committee of State Finance Ministers dated
10-11-2009
It is recommended that Alcoholic Liquor for human consumption would be kept out of the purview of GST. Sales
Tax/VAT can be continued to be levied on alcoholic beverages as per the existing practice. Excise Duty, which is
presently levied by the states may not also be affected.
So, therefore Alcoholic Liquor for human consumption is out of the ambit of GST and continues to be chargeable
to following existing taxes-
• Sales Tax/VAT,
• State Excise Duty, and
• Other taxes, if any.
CONCLUSION
The GST system as being introduced is result of deliberations of committee of representatives from 29 States.
Each State has its own views and peculiarities. Hence, having uniform nationwide GST is very difficult and some
compromises/ adjustments are inevitable.
It is rightly said that “A camel is a horse designed by Committee”. As the story goes, a committee was formed to
design a horse. As usual, each committee member had his own ideas, whims and fancies, due to which some
adjustments and compromise were inevitable. The result was that finally, the design that came out was of a
camel.As we all can see that without a doubt GST is the need of the hour which truly helped us to overcome
the shortfalls which were present in the Pre-GST regime and to minimal tax cascading and smooth Input Tax
Credit chain to the great extent. But still there are some issues which needs to be noticed and corrected by the
Government to make the GST Format more suitable.
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E-Commerce & GST : Issues &
Way Forward
Jahnavi Patel
E-COMMERCE- SUNRISE INDUSTRY OF INDIA?

“38.5 Billion US$ in 2017 to soaring 200 Billion US$ in 2026”
Growth potential of more than 400% in less than 10 years with a potential to contribute 4% towards the GDP
of India. Wondering what these statistics relate and what they dignify? Well it relates to the Indian E-commerce
markets and it’s tremendous growth potential in the coming decade.
Much evident from the above statistics, the Indian E-commerce sector is on a growth trajectory having a
cascading effect on all sectors of the economy which gives it the potential to reshape the Indian economy.
Realising the potential of E-commerce sector and that of tax compliance for realising the full economic benefits
of any Industry, the GST Council Secretariat, in December 2020 constituted a committee to suggest measures
for monitoring of businesses run through online.
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WHY GST INE- COMMERCE?
“Old is not always Gold”
Under the old tax structureeCommerce companies in India were mired in a plethora
of taxeson any given transaction. This had led to confusion and uncertainty on the tax
treatment of online marketplaces.
TWO MAJOR ISSUES

faced by suppliers under the erstwhile indirect tax regime
As a result of these problems a need for unambiguous indirect taxation law was felt that could unify common
markets with smooth compliance and bring reforms in the E- commerce sector. Hence, GST was introduced in
the E- commerce.
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The E- commerce market has two primary business models which fall within the ambit of GST. The provisions
of GST, with respect to levy of tax, collection of Tax at Source, registration and claiming input creditare applied
differently on these models.
STRUCTURE OF GST IN E- COMMERCE
GST Provisions for E- Commerce Operators (ECO)
LEVY AND COLLECTION OF TAX

In both the business models, it is the duty of the supplier to collect GST from the buyer and
pay to the government however, when the supplier is involved in provision of the specified
services under section 9(5), it is the duty of the ECO to pay taxes except when supplier
provides accommodation and housekeeping services and is registered under the GST law.
In addition to this, the ECO is also liable to pay tax to the government that it collects from
the supplier as commission.
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GST REGISTRATION
It is mandatory for those ECOs to get registered under the GST Act,
who are liable to collect Tax Collected at Source (TCS) under section
52 of the CGST Act, 2017. Nevertheless, the suppliers are liable to get
registration only when their aggregate turnover exceeds the threshold
limit except, in case where the supplier is involved in supply of goods
through ECO it is mandatory for them to get GST.
INPUT TAX CREDIT (ITC)

Input credit can be availed by the ECO as well as the supplier if they meet
all the conditions laid down by the CGST and ICSG Acts for claiming ITC.
TAX COLLECTION AT SOURCE (TCS)

“TCS!under GST?”
Yes, you heard it right! TCS under Indirect taxation. A unique feature introduced under
the new tax regime for the E- commerce sector. According to section 52 of the CGST Act
2017, the ECO has to collect an amount @ 1% (0.5% CGST + 0.5% SGCT) of the net value
of taxable supplies made through it by the suppliers. Nevertheless, no such TCS shall be
collected when the supplier provides services specified u/s 9(5) of the CGST Act 2017. Thus,
those ECOs who are liable to collect TCS u/s 52, have to mandatorily get TCS registration.
ISSUES UNDER GST IN E- COMMERCE

“NOTHING worth having COMES EASY”
Clearly GST has an incredible potential to boost the e-commerce business by bringing in smooth taxation
and compliance provisions nonetheless, the Marketplace based business model of E-commerce, is
still subject to complicated GST rules which has given birth to serious hinderances on the way of GST
implementation in this model.
MAJOR CONCERNS OF THE E- COMMERCE SECTOR UNDER GST
REGISTRATION
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From the above given chart, it is clearly evident how important is the Medium, Small and Micro
Enterprise (MSME) sector is for Indian Economy. There are approximately 48 million MSMEs operating
in India providing employment to over 40 million people. In addition, as per the MSME Annual Report
2020-21, the new entrants in MSME sector is growing at 23%.
This achievement of the SMEs is majorly attributable to the penetration of internet in this sector. More
and more MSMEs are trying to upgrade from neighbourhood sales to e-commerce platform but are
facing major entry barriers because of GST rules, hurting their ambition to access large consumer base.
Retailing through online markets require the suppliers to compulsorily register themselves under GST
irrespective of their turnover not exceeding the threshold. Upon registration the suppliers become
liable to file returns, issue required invoices and meet other statutory compliance thereby, increasing
their compliance costs. Only a small relief has been provided to suppliers of services involved in
providing services specified u/s 9(5) wherein these suppliers are required to obtain GST registration
only when their turnover exceeds Rs. 20Lakhs (or 10L in special category state).
NON AVAILIBILITY OF COMPOSITION SCHEME
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The offline businesses with turnover below Rs. 1.5 Crore, can avail this composition scheme,
paying tax at a small flat rate on their sales turnover without getting into the complexities
of tax credits and issue of invoice. However, this scheme is NOT AVAILABLE to the suppliers,
supplying goods and services through online platforms.
When on one hand, more of small businesses are trying to go digital, on the other hand
non availibility of composite scheme under GST is increasing tax compliance and increasing
the cost of such small manufacturers and service providers therby, discouraging them to
harness the digital potential.
The ECO engaged in managing online platforms are required to collect tax at source at the rate of 1% of
net value of taxable supplies in case of supply of goods and services other than specified in section 9(5)
while remitting this amount to the supplier, accordingly, in the above example Amazon shall pay the
supplier net Rs. 1111/- which is net of TCS as well as commission for provision of marketplace service.
The ECO is liable to collect TCS from all the suppliers whether their sales turnover exceeds the
registration limit or not.
TCS is a significant change that has led to surge incompliance cost of not only the ECOs, now that they
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have to take compulsory TCS and GST registration and file quarterly returns, but has majorly affected
the SME sellers.
Additionally, the credit of TCS so collected can be availed by the suppliers only when:
• They are registered under GST; and
• The details of TCS deduction, reported by the ECO in the return matches with GSTR- 01 of the
supplier, in case of inconsistency, the output liability of the vendor shall be redetermined;
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Tax on Transfer of Stock
In e- commerce model, goods may be stock-transferred from vendor location to warehouse(of the
e-commerce company), or from one warehouse to another. Previously, stock transfers are not liable
to any tax, but under IGST Law, specified transactions without consideration which are permanently
transferred or disposed on which ITC has been availed, shall be treated as supplies. Thus, bringing
interstate stock transfer in the ambit of GST however, additional tax of 1% may not be levied. This could
have a severeimpact, especially on MSME, which are supported through the e-commerce industry.
HOW DOES IT AFFECT THE ECO AND SMALL SUPPLIERS?
PLACE OF SUPPLY OF SERVICES

“Determining where goods are supplied from is easy, but where do services come from?”
Place of Supply (POS) is nothing but the place of delivery of goods or consumption of services, i.e., the
registered location of recipient of goods or services.
GST is a destination- based tax, i.e., goods & services shall be taxed at the place where they are
consumed and not at the origin. Hence, the state where they consume shall have to right to collect tax.
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As shown in the chart above, the Place of Business of in case of Supply of services is depends upon the
type of transaction entered into. This is a major drawback for the Service Providers upon introduction
of GST.
In the old tax sysytem, i.e., under Service Tax, the service providers had a centralised sysytem for
registration, but now under GST the centralised system is no more available to them thus, forcing them
to take registration in every state where they provider services. Hence, GST requires them to take state
wise registration which shall considerably increase their registration compliance cost as compare to
that in the old regime.
DOES E- COMMERCE AND GST HAVE WAY AHEAD?

“A road with potholes and speed bumps, make you a better driver”
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HOW WILL GST BRING TRANSPERANCY AND EASE OF TRANSPORTATION?
GST is a destination-based tax which is levied on the point of
delivery. The concept of “Place of Supply” though increasing
compliance of the service providers, shall make it easy for E-
commerce industry having PAN- India geography in locating
the supply, whether it is inter or intra state, which will help in
deciding which tax to charge IGST or CGST and SGCT/ UTGST?
This will draw a clear cut line between taxes to be collected by the state and the centre which will
reduce the complexities and disputes between the state governments as well the centre and the states
thus, improving the credit flow in the tax structure.
E- commerce platforms interact with over thousands of sellers and buyers everyday which required it
to maintain multi- tier supply systems. In old tax regime, supply chain was subjected to various taxes
and related paperwork which use to increase reporting and compliance costs. However, upon GST
subsuming these taxes, shall remove the complexities in supply chain reducing the paperwork and
compliance. This will allow smooth flow of goods and services from sellers to online entities as well as
between business and the consumers.
HOW WILL INFORMATION TECHNOLOGY HELP IN OVERCOMING ISSUES OF E- COMMERCE SECTOR
FACED UNDER GST?
With introduction of GST an important factor was to migrate and adapt quickly however,
amisdt the bottlenecks posed by GST, it was difficult for the industry to adapt to these
changes.
Now the question is-
“How will E- commerce industry sustain itself in under the GST regime with its PAN- India
operations? How will it meet its multi digit growth forecats?”
Since, the operations of E- commerce are spread Pan – India, it becomes more important
for the company to have a system strong enough which will help them calculate the huge
interstate and intra state transactions along with GST.
For bigger and popular E- commerce sites like Amazon, Flipkart, Snapdeal, etc. there are
a lot of issues faced with respect to logistics and warehousing since they have more than
1000 sellers on their platform that come together to sell their products.
Over here, periodic and regular reporting is a must for taxation and record purposes
which will be facilitated by ERP Sysytem. It will provides extensive reports to address GST
transactions on periodic basis and allow online business (E-commerce) to fetch tax related
reports which shall also facilitate in reconciliation in case of any discrepancies and disputes.
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GST has enormous benefits for the E- commerce sector however, its major drawback is
increase in compliance cost of the sellers as well as the online firms. Thus, for the firms
to gain upper hand under the GST tax regime have to adapt to a sysytem whose bemefits
supersede the increase in compliance cost of GST.
Hence, online firms will have to make several changes to their ERPs to handle the new
requirements emerging due to GST. ERPs will need to be tweaked to deduct and account
for TCS, reverse all charges appropriately when buyers return goods, keep proper tracking
of the input tax credits for avoiding any disputes and facilitating in return filing by providing
all required and appropriate data.
Based on the earlier discussion, it is understood that one major problem of GST for India’s sunrise
industry is the TCS collection, which is one of the core reason for increasing compliance, disclosures,
compulsory registration and blockage of funds.
Though TCS provisions have led to increase in prices of certain goods and services on the online
marketplaces, this increase in price is compensated by the availability of input tax credits to the firms
as well as the suppliers.
How will availability of ITC compensate the increase in costs of goods and services due to TCS
compliance?
GST AND E-COMMERCE: A LONG WAY AHEAD

GST was introduced with the objective of overcoming the flaws of old tax regime and implementation
of smooth indirect taxation structure in the sunrise sector of Indian economy. But as quoted earlier,
“Nothing worth having comes easy”. Same is with GST, though there are many roadblocks being faced
by the online market firms and the suppliers, we cannot deny the positive side of the new law and the
luscious benefit it brings to digital businesses.
The GST council along with various state government in cooperation with the businesses and IT
sector, is making efforts to overcome these problems and concerns. Thus, at the very moment the e-
commerce sector needs to hold on strong and focus on improving its efficiency to mould in the new
taxation era smoothly.
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Role of CAs in Litigation
Support and Dispute
Resolution in GST Domain
Ashis Chowdhury
INTRODUCTION
Chartered Accountants. They are the backbone
of the Indian Economy.
From the words of our honorable Prime Minister
Mr. Narendra Modi, it is clearly evident that the
role of a Chartered Accountant is very crucial in
the Indian Economy in the context of both Nation
building as well as in the Litigation sector.
Introduction of GST can also be termed as the long-awaited journey of biggest indirect tax reform
in the country since independence. It paved its way on 1st July 2017 with the aim to replace all the
hindrances and was focused towards removing various legal issues prevailing in the earlier regime.
However, what is still questionable is whether the GST law has decreased / reduced the litigations or
is the litigation increased.
Unfortunately, the hindrances never stopped. The legal issues are still burning in the flame of these
compliance-based litigation which would definitely pave its way forward in the near future. At this
Juncture having said the above points, this instant article is focused towards some of the litigated
matters which currently are prevailing and hitting the taxpayers and the role of a CA in resolving the
Disputes.
Why Litigation under GST? – Outcome of Disputes
With the advent of GST, various disputes paved their way in the Business and Taxation world. Multiple
opinions in relation to the applicable Tax rate (depending upon the appropriate HSN/SAC code) and
the levy of tax under appropriate head (IGST and CGST/SGST/UTGST) gave rise tovariousdisputed areas
under GST.
These disputes eventually gave rise to various Litigations in the entire sunshade of Indirect taxes in
India. Needless to mention that the Litigations under GST is an emerging market for the professions
(CAs and Advocates) in oureconomy.
However, the larger question to ponder is the reasons forsuch litigation. Some possible reasons may
be: -
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1. Irregularitiesin Act and Rules under GST
The main aim to introduce GST is to make its implication
simpler than the previous tax regime. But, after its
introduction, the law has undergone so many changes that
instead of being simpler, it has resulted in ambiguity and
chaos in the market. Currently, there are 820+ Notifications,
170+ Circulars and 100s of Judgments andRulingsunder GST.
Hence, it is a challenging job for a taxpayer to comply with all
the applicant provisions and the encounter with the various irregularitiesunder the Law.
2. Trade Parlance v/s Clarity in Law
Though the main aim was to follow ‘One Nation one Tax’,
various instances of difference in opinions and viewpoints
have been observed under GST.The interpretation of a
particular provision may be different for different individuals.
For instance, in relation to any sale invoice, it is a common
industry practice that the Credit and Debit Notes can be
issued by both supplier and recipient. But,under the preview
of GST, any document has to be issued by the supplier only. This creates a lot of confusion in
procedural reporting and eventually leads to litigation of mismatch.
3. Divergent verdicts over the same matter
Different benches of Advance Rulings have taken
different interpretation on similar matters making it
even more complex to follow.
For instance, in case of Refund of balance in Electronic
Credit Ledger accumulated due to presence of Inverted
Duty Structure, Rule 89(5) of CGST Rules denies the
right of the taxpayer to claim the refund if such ITC pertains to that of Input Services. However, the
Hon’ble Gujrat High Court has pronounced its judgment, in the case of VKC Footsteps India Pvt Ltd,
that such ITC is eligible for Refund. Subsequently this judgement has now been overturned by the
Hon’ble Supreme Court, even though the SC has observed the anomaly in the drafting of Provisions.
Hence, it leaves a gap in the minds of taxpayers about future results of any judgements that are
favorable now.
Instances of Litigative Issues under GST
As highlighted in preceding part, the interpretation of a particular provision may be different for
different individuals. Whether it’s about taxability vs exemption, valuation, classification, input tax
credit or about refund etc., almost every topic has some or other disputes. In this part, let us throw
some light over certain grey areas and related disputes:
1. Eligibility to claim ITC:Section 16(2)(c) and the case of M/s D.Y. Beathel Enterprises vs the State tax
Officer
Section 16 (2) (c) of the CGST Act 2017, mentions that the tax
charged in respect of the supply for which ITC has been claimed
by the recipient has to be actually paid to the government by
the supplier. However, on 24th February 2021, the Hon’ble
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Madras High Court has pronounced its judgment in the case of M/s D.Y. Beathel Enterprises Vs the
State tax Officer, in favor of the recipient and allowed the ITC to the recipient of goods.
Hence, a dilemma in the thought process of the readers whether the recipient would be able to
claim ITC if the supplier defaults in payment of tax to the government.
2. Inverted Duty Structure: Unjust treatment to Input Services
In case of Refund of balance in Electronic Credit Ledger accumulated due to
presence of Inverted Duty Structure, Rule 89(5) of CGST Rules denies the right of
the taxpayer to claim the refund if such ITC pertains to that of Input Services.
Hon’ble Gujrat High Court has pronounced its judgment, in the case of VKC
Footsteps India Pvt Ltd, that such ITC is eligible for Refund.However, the
said verdict has been opposed by Hon’ble Madras High Court in the case
ofTranstonnelstroy Afcons Joint Venture.
Currently, the said dispute has been resolved by our Hon’ble Supreme Court by reversing the
decision of Hon’ble Gujrat High Courton 13th September 2021.
Role of a CA in handling Litigation and Dispute resolution
From running a profit earning business entity like Mr.Kumar Mangalam Birla, to
leading the success story of flourishing products in the market; from the greatest
entrepreneurs providing Advisory services to the entire Nation, to be the Indian
Stock Guru like Mr.Rakesh Jhunjhunwala; you name it and you will get the mind
of a CA behind it.
The role of a CA in uplifting our economy is incomparable.
In the light of aforesaid scenarios, the role of a CA as a representative
is a crucial one.
The word ‘representation’ refers to appearing in a client’s cause to
offer explanation, information or defense in relation to proceedings
before the relevant authorities.
The specific provisions in the taxing statues permits a taxpayer to
appear before any Adjudicating Authority through a representative rather than appearing in person.
Hence, it is advisable to implement the same as appearing in personmay not be very effective due
to reasons like lack of knowledge of the subject, lack / absence of legal and communication skills,
inadequate time at disposal, etc.
For instance, Rule 89(2)(m) requires certification of a CA / CMA in case of any refund application,
subject to certain exclusions, in the Form GST RFD-01.
Also, section 66 of CGST Act specifies that in case of any scrutiny, inquiry or investigation, the
Commissioner can direct the audit of the Books of the taxpayer by a CA or CMA.
Thus, a CA can provide various services ranging from assisting the client in filing returns, advising
on critical issues, assistance in assessment, drafting and filing replies to notices and appeals and
representing before authorities and Tribunal. Majority of the litigation under GST, up to the Tribunal
level, are handled mostly by CAs who are abreast with latest provisions, case laws and most important,
its financial connotation with books of accounts.
Representation in GST litigations before the authorities or Tribunal is a service which a CA can provide
to his client irrespective of whether the said CA has been associated with auditing its books of accounts
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or not. Hence, the need of specialists in the field of GST Litigations is the undisputed future for GST
practice, However, for the matter advances to High Court or Supreme Court, although a CA cannot
legally represent the client, it can provide valuable assistance to Lawyers in the form of preparation of
briefing material.
l Hence, a CA can provide assistance to their clients in the
following areas:
a) Assisting to client to prepare for department audit and due
diligence audits.
b) Advising the client during audit and investigation an assistance
in clarifying the issues raised by the audit team, preparation
of statements / reports to be submitted to the audit team,
preparation and submission of documents requested by the department, drafting of letters,
correspondence and reply to audit observations.
c) Advising the client on the course of action to be adopted i.e., whether to litigate or not on the
issues raised by the department in the course of audit.
d) Representing client in adjudication proceedings by drafting reply to SCN, submissions and
attending hearings and post-hearing filing of submissions/evidence.
e) Representing client in appellate proceedings before the first appellate authority or Tribunal.
The professional assistance would encompass drafting of appeal including statement of facts
and grounds and appearance before the authority or Tribunal.
f) Support function in (a) and (b) by assisting the counsel (CA or Advocate) in the above areas
including preparation of notes and briefing other counsel.
g) Assisting Advocates in matters before the HC/SC and also in understanding facts for preparation
of grounds of appeal, counter, rejoinder and legal research.
Conclusion
Looking at the journey of GST in past 4.5+ years, the way notices are being issued and bundled up, the
petitions being filed with High Courts, complex legal provisions etc., the immense scope of litigation
under GST law seems to be inevitable in the future. The expectation with the implementation of GST
law was to reduce litigations that were there in erstwhile tax laws. However, the reality has been
different as we have discussed. To make GST law simple and reduce litigations, many changes would be
required in the law itself and the way it is being carried out to keep the spirit of law above just textual
form.
With changing economic scenario leading to increase in manufacturing and service activity and widening
of tax base under the GST regime, the scope for CAs under indirect tax as a whole has enflamed.
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Knowledge
Session 6
Global Opportunities
for CA Professionals
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Emerging Global Career
Options for Next-Gen
Chartered Accountants
Rajeshwari Sharma
INTRODUCTION
A wide range of global career options after CA are available in today’s world. Chartered accountancy
is the core of all businesses, be it big or small. A Chartered Accountant’s work involves auditing,
taxation, accounting and financial planning. It will not be wrong to claim that Chartered Accountant’s
life is usually full of challenges which certainly call for enormous courage and leadership skills. To
summarize, life of an average CA is all about respect, leadership and opportunities. The qualification
of CA is globally recognized hence industry outlook for CA is bright indeed. Much recognition for CA
degree is due to the fact that the CA course has been able to keep pace with changes in industry
scenario. Several new modules and topics have not only been incorporated into the CA course but have
been very effectively implemented to give increasing more power to the CA degree. In spite of the fact
that several top-notch B-schools (including IIMs) have produced some of the most brilliant B-school
grads, it is noteworthy that CA has been able to retain their prominence in present world order.
CAREER PROSPECTS FOR INDIAN CHARTERED ACCOUNTANTS
The course of Chartered Accountant has a wide-ranging scope of practice which includes areas like
accounting, auditing, corporate finance, corporate laws and taxation. Since the ambit of the practice
of a CA is no longer limited to its traditional pursuits, the employment option has also been extended.
With the advancement of the economy and the development of society, the roles performed by a
CA professional have been upgraded in accordance with the requirements. Considering the global
perspective, some of the roles that have attained growing relevance in recent times are:
l Internal Auditor
l Tax Auditor
l Forensic Auditor
l Statutory Auditor
l Share Valuer
l Financial Reporter
l Management and Corporate Consultancy
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l Tax Advisor (both international tax and domestic tax)
l Management Accountant
l Cost Accountant
l Company Liquidator
l Corporate Financing
COUNTRIES PROVIDING PROFESSIONAL OPPURTINITIES TO INDIAN CA’s
The professional course of Chartered Accountant has been widely accepted by many countries. As far
as the degree obtained by a CA professional is concerned, foreign countries that have either entered
into a Mutual Recognition Agreement (MRA) or Memorandum of Understanding (MoU) with the
Institute of Chartered Accountants of India would provide the members registered with ICAI to practice
in the respective countries in accordance to their terms and conditions. This does not conclude that
an Indian CA would only be able to practice in these recognized countries. The countries that have
not entered into any agreement with India, allow people to consider the option of CA only after
fulfilling the prerequisites for the same in their home countries like passing their notified exams. In
many unrecognized countries, such criteria involve attempting their respective papers. However, there
can be exemptions that can be provided to the Indian members in these countries. With the broad
objective of the Institute to expand the opportunities for professionals in the foreign jurisdiction, the
Institute has a global presence in 36 overseas chapters and 17 representative offices across the globe.
This has, however, not limited the scope of proliferating the object of a global presence as the Institute
continues to make efforts to observe the same. Let us discuss some of the countries that have signed
agreements with
India to provide career opportunities to Indian Chartered Accountants.
l Middle East Countries
1. Kenya:
l The ICAI has signed the MoU with the Institute of Certified Public Accountants of Kenya (ICPAK)
in January 2019.
l It supports the development of the accountancy profession through capacity building
initiatives and promotes its sustainable development.
l The members have to mandatorily get them registered under ICPAK to become eligible to
practice in Kenya.
l Members of ICAI are employed as financial controllers, auditors, tax/corporate advisors,
financial/ management consultants, corporate recovery etc.
l Members are also empowered to work as independent practitioners.
l There are various Indian owned businesses and audit firms that are established in Kenya which
will boost employment opportunities for the members of ICAI.
l Since the Companies Act of India is similar to that of Kenya, members do not have to struggle
much to start their practice immediately on receiving the work permit.
l The opportunities are favourable to freshers as well as experienced CAs.
2. Kuwait:
l The ICAI has signed the MoU with the Kuwait Association of Accountants and Auditors (KAAA)
in 2019.
l The objective is to strengthen the accounting, financial and audit knowledge base in Kuwait.
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l Greater opportunities are provided to fresh Chartered Accountants in both large and mid-size
accounting firms as compared to practicing CAs.
l In Kuwait, CAs are well reputed and are well established in top-tier organizations and banks.
l Various roles that are prominent among the CA group include Finance Manager, CFO, CEO,
Financial Analysts, etc.
3. Oman:
l Recently, the ICAI has renewed its MoU with the College of Banking and Financial Studies
(CBFS), Oman.
l Some major positions in the finance sector have been occupied by the Indian citizens in Oman.
l The members of ICAI occupy senior positions in various private, public and government sectors
in Oman.
l Indian CAs majorly prefer Oman and UAE for their career prospects due to the rising demand
for CAs in these places.
l CBFS also regularly conduct professional seminars, conferences, panel discussions, certificate
courses etc. to enhance the knowledge of the professionals.
4. Qatar:
l The Doha chapter in Qatar is affiliated with the Indian Embassy in Qatar and is registered
under Qatar Financial Center (QFC) laws.
l The industries that require the expertise of a Chartered Accountant include oil and gas,
construction, retail and infrastructure sectors.
l Local conglomerates also provide career prospects to Indian CAs.
l With the technological advancements, companies in Qatar are looking for professionals who
are well versed with soft skills to complement the new working system.
5. Saudi Arabia:
l The ICAI entered into the MoU and later renewed the same with the Saudi Organization for
Certified Public Accountants (SOCPA) in Saudi Arabia.
l It promotes mutual cooperation in the areas of corporate governance, technical research and
advice, quality assurance, forensic accounting, issues for Small and Medium-sized Practices
(SMPs), Islamic finance, Continuing Professional Development (CPD) and other subjects of
mutual interest related to the accountancy profession.
l While considering the role of Indian CA in small or mid-tier companies, finance managers and
finance controllers are the most common.
l As far as large corporations are concerned, opportunities exist from lower-level like Finance
Executive for fresh Chartered Accountants to Chief Accountant to Assistant Finance Manager
to Finance Manager to CFO at higher levels.
l However, there are some preferences given to those having prior experience of a large
accounting firm, experience in the Middle East, or experience in banks.
l For being recognised as a Certified Public Accountant under SOCPA, the applicant should be a
Saudi national. Indian Chartered Accountants can be partners in big firms without having any
signing authority.
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6. UAE:
l The ICAI has been able to renew the MoU with the Higher Colleges of Technology (HCT) of the
United Arab Emirates (UAE).
l UAE has provided Indian CAs with wide-ranging employment opportunities in firms as well as
boosted the setting up of businesses.
l Big firms usually hire 100-200 Indian CAs every year in accordance with the requirements.
l As far as mid-tier firms are concerned, they hire around 15-30 fresh Chartered Accountants
every year.
l A strong trend along with robust relations with the UAE has enormously contributed in
escalating the employment opportunities for the members of ICAI.
7. Bahrain:
l The ICAI signed the MoU with the Bahrain Institute of Banking and Finance (BIBF) in 2018.
l Bahrain lacks a local professional accountancy institution and since ICAI is in collaboration with
it, Bahrain is desirous to obtain the proficiency and assistance of ICAI members in developing
its own nationals in the field of accounting and finance. This paves way for immense career
opportunities for a CA.
l Many renowned international firms find their way in the Kingdom that, in turn, provides
ample opportunities to Indian Chartered Accountants to get themselves employed under
these firms.
l For an expatriate to establish an audit firm, several prerequisites have to be satisfied as it is
regulated by the Ministry of Commerce.
l One of the major requirements is that the expatriate professional should collaborate with a
local professional to incorporate an audit firm.
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l Asian Countries
1. Hong Kong:
l By virtue of being a member of the International Federation of Accountants, the ICAI has been
admitted as an International Affiliate of the Hong Kong Institute of Certified Public Accountants
(HKICPA).
l The members of ICAI enjoy the same level of rights as enjoyed by the members of HKICPA.
However, they are prohibited from practicing the right to be elected to the Institute’s Council,
vote at Council elections, attend the Institute’s general meetings and the right to be registered
as a voter.
l Fortunately, there is a probability that the ICAI would secure a Reciprocal Membership
Agreement or a Mutual Recognition Agreement to avoid all the discrepancies.
l Apart from the financial sectors, CAs in Hong Kong have explored other avenues like IT, HR,
digital advertising and legal firms.
l As far as industrial training is concerned, it is completely domestic as they do not permit
student/ employment visas for these kinds of purposes.
2. Singapore:
l An MRA between ICAI and the Institute of Singapore Chartered Accountants is on the verge of
being recognised under the Comprehensive Economic Cooperation Agreement (CECA).
l For an applicant to be eligible for the Singapore CA foundation programme, one should bear
the accredited degree or undergraduate degree.
l For people who are eligible for direct entry to the professional programme, they should have
a local accountancy degree from a recognized Singapore University.
l With a low labour force and a considerable presence of MNCs, Singapore can be considered as
a prospering hub providing opportunities in accounting, finance business partnering, banking
and treasury, financial analysis etc.
l Additionally, due to the change in the tax regime and incorporating GST, demand for compliance
and accounting roles have boosted up.
3. Australia and New Zealand:

l The ICAI has entered into a mutual agreement with CA Australia and New Zealand to recognize
each other’s qualifications.

l In order to obtain the membership of the Chartered Accountants Australia and New Zealand
(CA ANZ), the members have to take the CAPSTONE module.

l One can also appear for a 2-day pilot workshop and complete 40 hours of self-study to receive
the membership of the CA ANZ.
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l The avenues undertaken by the members of ICAI include the banking sector, financial analysis,
planning, credit, audit, and accounting operations.
l It further provides an opportunity for Relationship Management (RM) roles in SME banking,
Corporate Banking, Wholesale banking etc. to the ICAI members.
l The members are prevented from practicing independently. However, they can form part of
the corporate houses and firms.
l Europe
1. Netherlands:
l Even though no formal agreement has been entered into by the ICAI and the Netherlands
Chapter, yet the companies prefer to hire Indian CA for the roles not restricting to accounting,
taxation, audit, treasury and banking.
l The companies, however, prefer to provide opportunities to those who have gained prior
experience in the field rather than freshers.
l North American Countries
1. Canada:
l The ICAI has entered into an MoU with the Canadian Institute of Chartered Accountants (CICA)
which was later replaced by an MoU between the ICAI and the CPA Canada.
l This simplified the complexities underlying the previous system. Now, the members of ICAI
interested in obtaining a membership should have the requisite experience to become eligible
for exemptions from practical training requirements of CPA Canada as well as appearing in the
CPA exam in Canada. By merely passing the 3-day Common Final Examination (CFE), a person
can attain membership.
l With constant growth, the opportunities for employment have extended to both public and
the private sector.
l Since the skills acquired by an Indian CA is similar to the skills acquired by a Canadian CA, the
most opted choices for career prospects remain the roles of CEO, president, CFO, treasurer,
consultant, controller, tax auditors, policy planners and financial analysts.
l Other types of assistance provided by CAs to their clients include startup counselling, purchase
and sale of a business, business valuations, business planning and financial projections etc.
2. USA:
l India does not have any recognition agreement with the USA and therefore, it becomes
necessary for an interested candidate to give all the exams in order to obtain a CPA degree
under the American Institute of Certified Public Accountants (AICPA).
l Most accounting firms recognize a CA degree equivalent to that of a CPA degree. However,
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some companies hire only a CPA professional for tax and assurance roles.
l An Indian CA can work as an auditor/ tax intern/ accountant for a CPA firm or as a finance
professional for any financial institution or within any company that needs a finance division.
l A CA can become an independent consultant as well thereby assisting businesses to maintain
their books, budgets, obtaining loan financing through writing business plans, etc.
l If a professional does not have any licence or legal status but is capable of rendering services,
he/she may tie up with a CPA firm in the US.
l Indian CAs can work with Indian companies abroad or foreign countries that have operations
in India.
l United Kingdom
l The ICAI has signed an MoU with the Institute of Chartered Accountants in England & Wales
(ICAEW).
l The membership granted by the ICAEW is similar to that of Australia whereby independent
practice is restrained in the UK.
l However, the Association of Chartered Certified Accountants, a financial body established in the
UK, provides exemptions in CA exams in the UK.
After clearing the non-exempted papers, one becomes eligible to the membership of the same
and can even practice independently.
A FLOURISHING INDUSTRY WITH AN AFFIRMATIVE GROWTH
l There have been a total of around 13,000 members who have settled abroad and among them,
around 3200 members have the certificate of practice.
l The demographic distribution of the members of ICAI has been spread throughout. It can be
seen in the below representation.
l UAE and the other Middle East countries have the largest resource of oil and gas and it contributes
more than half of the entire GDP of the UAE. With recent developments in the oil sector, these
countries have established a growing demand for Chartered Accountants.
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l The robust relations between India and the USA has led to the establishment of various
opportunities within the country. The IT sector in the USA is the most supported sector by the
Indian nation as major outsourcing of US IT services are through India due to efficient workforce.
l Kenya is a major tourist spot and attracts a large population thereby, promulgating the ever-
growing career prospects.
l Hong Kong has established a business-friendly environment characterized by free trade, a mature
financial regulatory regime and a legal system.
l Australia, though being the 6th largest nation population-wise, faces a shortage of professionals
for performing tasks in auditing and advisory roles. This calls for a blooming demand for
professionals like CA.
l With the constant change in the tax regime, VAT implications, foreign exchange, licencing schemes
and promotional activities, the demand for Chartered Accountants is on the rise.
CONCLUSION
With the developing economy, the growth of future prospects and job opportunities have taken an
upstage. Every firm and corporation has recognized the importance of structuring and planning their
financial sector to strengthen the core of the business. Right from startups to the Big-4 or the MNCs, each
company understands the negative implications that would be faced by their companies on account
of failure to satisfy the various financial compliances. In addition to this, the dynamic industries in the
world, now and then, introduce new avenues that are readily available to be explored. Such affirmative
prospects not only proliferate one’s salary expectations but also ensure growth in their career. Thus,
pursuing CA can prove to be one of the best career options of all time.
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ICAI - Facilitator of Global
CAs, through International
Outreach
Uday Gupta
Introduction
Are you interested in pursuing the path to become
a Chartered Accountant? Are you confused about
the future prospects available for an Indian CA?
Considering the option to practice in the field of CA
in a foreign country? Well, look no further. This article
covers the entire gist of your future aspirations and
goals related to Chartered Accountancy.
Chartered Accountancy, being a professional degree,
is one of the most favorable professions of many
students because of the prospering ability inherited by
it. This profession has gained prominence not just in India, but abroad as well. It has grown multi-fold,
thereby broadening the budding avenues in the domain within and beyond the national boundaries.
The Institute of Chartered Accountants of India (hereinafter called ICAI) has entered into a Mutual
Recognition Agreement (MRA) and Memorandum of Understanding (MoU) with a number of

International Accounting Bodies that enabled the members of the Institute to practice the profession in
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the concerned country. This has helped India to tap the budding opportunities and provides a platform
for growth and expansion. In order to exploit such extensive opportunities, one needs to understand
the various prospects that are available for the same.
Countries providing professional opportunities to Indian CAs
The professional course of Chartered Accountant has been widely accepted by many countries. As far as
the degree obtained by a CA professional is concerned, foreign countries that have either entered into
a Mutual Recognition Agreement (MRA) or Memorandum of Understanding (MoU) with the Institute
of Chartered Accountants of India would provide the members registered with ICAI to practice in the
respective countries in accordance to their terms and conditions.
This does not conclude that an Indian CA would only be able to practice in these recognized countries.
The countries that have not entered into any agreement with India, allow people to consider the
option of CA only after fulfilling the prerequisites for the same in their home countries like passing
their notified exams. In many unrecognized countries, such criteria involve attempting theirrespective
papers. However, there can be exemptions that can be provided to theIndian members in these
countries. The CA intermediate certificate under ICAI is equivalent to Emirates level seven.
With the broad objective of the Institute to expand the opportunities for professionals in the foreign
jurisdiction, the Institute has a global presence in 36 overseas chapters and 17 representative offices
across the globe. This has, however, not limited the scope of proliferating the object of a global presence
as the Institute continues to make efforts to observe the same.
MIDDLE EAST COUNTRIES
Kenya
• The ICAI has signed the MoU with the Institute of Certified Public Accountants of Kenya (ICPAK) in
January 2019.
• It supports the development of the accountancy profession through capacity building initiatives and
promotes its sustainable development.
• The members have to mandatorily get them registered under ICPAK to become eligible to practice
in Kenya.
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• Members of ICAI are employed as financial controllers, auditors, tax/corporate advisors, financial/
management consultants, corporate recovery etc.
• Members are also empowered to work as independent practitioners.
• There are various Indian owned businesses and audit firms that are established in Kenya which will
boost employment opportunities for the members of ICAI.
• Since the Companies Act of India is similar to that of Kenya, members do not have to struggle much
to start their practice immediately on receiving the work permit.
• The opportunities are favorable to freshers as well as experienced CAs.
Kuwait
• The ICAI has signed the MoU with the Kuwait Association of Accountants and Auditors (KAAA) in
2019.
• The objective is to strengthen the accounting, financial and audit knowledge base in Kuwait.
• Greater opportunities are provided to fresh Chartered Accountants in both large and mid-size
accounting firms as compared to practicing CAs.
• In Kuwait, CAs are well reputed and are well established in top-tier organizations and banks.
• Various roles that are prominent among the CA group include Finance Manager, CFO, CEO, Financial
Analysts, etc.
Oman
• Recently, the ICAI has renewed its MoU with the College of Banking and Financial Studies (CBFS),
Oman.
• Some major positions in the finance sector have been occupied by the Indian citizens in Oman.
• The members of ICAI occupy senior positions in various private, public and government sectors in
Oman.
• Indian CAs majorly prefer Oman and UAE for their career prospects due to the rising demand for
CAs in these places.
• CBFS also regularly conduct professional seminars, conferences, panel discussions, certificate
courses etc. to enhance the knowledge of the professionals.
Qatar
• The Doha chapter in Qatar is affiliated with the Indian Embassy in Qatar and is registered under
Qatar Financial Center (QFC) laws.
• The industries that require the expertise of a Chartered Accountant include oil and gas, construction,
retail and infrastructure sectors.
• Local conglomerates also provide career prospects to Indian CAs.
• With the technological advancements, companies in Qatar are looking for professionals who are
well versed with soft skills to complement the new working system.
Saudi Arabia
• The ICAI entered into the MoU and later renewed the same with the Saudi Organisation for Certified
Public Accountants (SOCPA) in Saudi Arabia.
• It promotes mutual cooperation in the areas of corporate governance, technical research and
advice, quality assurance, forensic accounting, issues for Small and Medium-sized Practices (SMPs),
Islamic finance, Continuing Professional Development (CPD) and other subjects of mutual interest
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related to the accountancy profession.
• While considering the role of Indian CA in small or mid-tier companies, finance managers and
finance controllers are the most common.
• As far as large corporations are concerned, opportunities exist from lower-level like Finance
Executive for fresh Chartered Accountants to Chief Accountant to Assistant Finance Manager to
Finance Manager to CFO at higher levels.
• However, there are some preferences given to those having prior experience of a large accounting
firm, experience in the Middle East, or experience in banks.
• For being recognized as a Certified Public Accountant under SOCPA, the applicant should be a Saudi
national. Indian Chartered Accountants can be partners in big firms without having any signing
authority.
Tanzania
• The ICAI has signed the MoU with the National Board of Accountants and Auditors (NBAA), Tanzania
in 2018.
• To practice as auditors, accountants or tax consultants, formal approval and registration is required
from NBAA.
• For practising as a tax consultant, additional registration with Tanzania Revenue Authority (TRA) is
required.
• Some of the ideal employment opportunities opted by the members of ICAI include the application
of International Financial Reporting Standards (IFRS) to accounting, multiple currency accounting,
foreign currency translation problems etc.
• The prospective changes in the tax regime, licensing of the foreign banks, floating exchange rate,
creating investment promotion centres etc. has further expanded the opportunities for CAs to
showcase their expertise.
UAE
• The ICAI has been able to renew the MoU with the Higher Colleges of Technology (HCT) of the
United Arab Emirates (UAE).
• UAE has provided Indian CAs with wide-ranging employment opportunities in firms as well as
boosted the setting up of businesses.
• Big firms usually hire 100-200 Indian CAs every year in accordance with the requirements.
• As far as mid-tier firms are concerned, they hire around 15-30 fresh Chartered Accountants every
year.
• A strong trend along with robust relations with the UAE has enormously contributed in escalating
the employment opportunities for the members of ICAI.
Bahrain
• The ICAI signed the MoU with the Bahrain Institute of Banking and Finance (BIBF) in 2018.
• Bahrain lacks a local professional accountancy institution and since ICAI is in collaboration with it,
Bahrain is desirous to obtain the proficiency and assistance of ICAI members in developing its own
nationals in the field of accounting and finance. This paves way for immense career opportunities
for a CA.
• Many renowned international firms find their way in the Kingdom that, in turn, provides ample
opportunities to Indian Chartered Accountants to get themselves employed under these firms.
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• For an expatriate to establish an audit firm, several prerequisites have to be satisfied as it is regulated
by the Ministry of Commerce.
• One of the major requirements is that the expatriate professional should collaborate with a local
professional to incorporate an audit firm.
ASIA
Hong Kong
• By virtue of being a member of the International Federation of Accountants, the ICAI has been
admitted as an International Affiliate of the Hong Kong Institute of Certified Public Accountants
(HKICPA).
• The members of ICAI enjoy the same level of rights as enjoyed by the members of HKICPA. However,
they are prohibited from practicing the right to be elected to the Institute’s Council, vote at Council
elections, attend the Institute’s general meetings and the right to be registered as a voter.
• Fortunately, there is a probability that the ICAI would secure a Reciprocal Membership Agreement
or a Mutual Recognition Agreement to avoid all the discrepancies.
• Apart from the financial sectors, CAs in Hong Kong have explored other avenues like IT, HR, digital
advertising and legal firms.
• As far as industrial training is concerned, it is completely domestic as they do not permit student/
employment visas for these kinds of purposes.
Singapore
• An MRA between ICAI and the Institute of Singapore Chartered Accountants is on the verge of
being recognized under the Comprehensive Economic Cooperation Agreement (CECA).
• For an applicant to be eligible for the Singapore CA foundation programmed, one should bear the
accredited degree or undergraduate degree.
• For people who are eligible for direct entry to the professional programmed, they should have a
local accountancy degree from a recognized Singapore University.
• With a low labor force and a considerable presence of MNCs, Singapore can be considered as a
prospering hub providing opportunities in accounting, finance business partnering, banking and
treasury, financial analysis etc.
• Additionally, due to the change in the tax regime and incorporating GST, demand for compliance
and accounting roles have boosted up.
AUSTRALIA AND NEW ZEALAND
• The ICAI has entered into a mutual agreement with CA Australia and New Zealand to recognise each
other’s qualifications.
• In order to obtain the membership of the Chartered Accountants Australia and New Zealand (CA
ANZ), the members have to take the CAPSTONE module.
• One can also appear for a 2-day pilot workshop and complete 40 hours of self-study to receive the
membership of the CA ANZ.
• The avenues undertaken by the members of ICAI include the banking sector, financial analysis,
planning, credit, audit, and accounting operations.
• It further provides an opportunity for Relationship Management (RM) roles in SME banking,
Corporate Banking, Wholesale banking etc. to the ICAI members.
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• The members are prevented from practicing independently. However, they can form part of the
corporate houses and firms.
EUROPE
Netherlands
• Even though no formal agreement has been entered into by the ICAI and the Netherlands Chapter,
yet the companies prefer to hire Indian CA for the roles not restricting to accounting, taxation, audit,
treasury and banking.
• The companies, however, prefer to provide opportunities to those who have gained prior experience
in the field rather than freshers.
United Kingdom
• The ICAI has signed an MoU with the Institute of Chartered Accountants in England & Wales
(ICAEW).
• The membership granted by the ICAEW is similar to that of Australia whereby independent practice
is restrained in the UK.
• However, the Association of Chartered Certified Accountants, a financial body established in the UK,
provides exemptions in CA exams in the UK. After clearing the non-exempted papers, one becomes
eligible to the membership of the same and can even practice independently.
NORTH AMERICA
Canada
• The ICAI has entered into an MoU with the Canadian Institute of Chartered Accountants (CICA)
which was later replaced by an MoU between the ICAI and the CPA Canada.
• This simplified the complexities underlying the previous system. Now, the members of ICAI interested
in obtaining a membership should have the requisite experience to become eligible for exemptions
from practical training requirements of CPA Canada as well as appearing in the CPA exam in Canada.
By merely passing the 3-day Common Final Examination (CFE), a person can attain membership.
• With constant growth, the opportunities for employment have extended to both public and the
private sector.
• Since the skills acquired by an Indian CA is similar to the skills acquired by a Canadian CA, the most
opted choices for career prospects remain the roles of CEO, president, CFO, treasurer, consultant,
controller, tax auditors, policy planners and financial analysts.
• Other types of assistance provided by CAs to their clients include startup counselling, purchase and
sale of a business, business valuations, business planning and financial projections etc.
USA
• India does not have any recognition agreement with the USA and therefore, it becomes necessary
for an interested candidate to give all the exams in order to obtain a CPA degree under the American
Institute of Certified Public Accountants (AICPA).
• Most accounting firms recognize a CA degree equivalent to that of a CPA degree. However, some
companies hire only a CPA professional for tax and assurance roles.
• An Indian CA can work as an auditor/ tax intern/ accountant for a CPA firm or as a finance professional
for any financial institution or within any company that needs a finance division.
• A CA can become an independent consultant as well thereby assisting businesses to maintain their
books, budgets, obtaining loan financing through writing business plans, etc.
• If a professional does not have any licence or legal status but is capable of rendering services, he/
she may tie up with a CPA firm in the US.
• Indian CAs can work with Indian companies abroad or foreign countries that have operations in
India.
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Below is the table that illustrates the various agreements which are entered into by India.
Qualification Reciprocal Agreements
IRELANDMRA with CPA Ireland ENGLAND & WAlESMoU with CANADAMoU with CPA Canada
the Institute of Chartered
Accountants in England and
Wales (ICAEW)
SOUTH AFRICAMRA with NepalMRA with Institute of AUSTRALIA & NEW
the South Africa Institute of Chartered Accountants of Nepal ZEALANDMoU with Chartered
Chartered Accountants (SAICA) (ICAN) Accountants – Australia & New
Zealand (CA ANZ )*
MalaysiaMRA with Malaysian AUSTRALIAMRA with CPA
Institute Of Certified Public Australia*
Accountants*
Agreements for Technical
Cooperation
SAUDI ARABIAMoU with Saudi KENYAMoU with Institute of NEPALMoU with Institute of
Organisation for Certified Public Certified Public Accountants of Chartered Accountants of Nepal
Accountants (SOCPA) Kenya (ICPAK) (ICAN)
TANZANIAMoU with National BAHRAINMoU with the Bahrain KUWAITMoU with KAAA, Kuwait
Board of Accountants and Institute of Banking and Finance
Auditors (NBAA), Tanzania (BIBF), Bahrain
OMANMoU with ICAI and NETHERLANDSMoU with VRC, PAPUA NEW GUINEAMoU with
College of Banking & Financial the Netherlands* CPA PNG*
Studies (CBFS), Oman
DubaiMoU with HCT Dubai** AFGHANISTANMoU with CPA
Afghanistan**
(* Awaiting clearances from government authorities)
(** Pending for Signing)
A flourishing industry with an affirmativegrowth
The ICAI has so far been successful in tapping some of the most handsome employment opportunities
for the members. The results were visible not only domestically but even internationally. Many
countries have now recognized its qualification ties with that of India. This has led to the removal of
professional barriers and allowed the members to explore the vast avenues available to them.
Growing industry
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• UAE and the other Middle East countries have the largest resource of oil and gas and it contributes
more than half of the entire GDP of the UAE. With recent developments in the oil sector, these
countries have established a growing demand for Chartered Accountants.
• The robust relations between India and the USA has led to the establishment of various opportunities
within the country. The IT sector in the USA is the most supported sector by the Indian nation as
major outsourcing of US IT services are through India due to efficient workforce.
• Kenya is a major tourist spot and attracts a large population thereby, promulgating the ever-growing
career prospects.
• Hong Kong has established a business-friendly environment characterized by free trade, a mature
financial regulatory regime and a legal system.
• Australia, though being the 6th largest nation population-wise, faces a shortage of professionals for
performing tasks in auditing and advisory roles. This calls for a blooming demand for professionals
like CA.
• With the constant change in the tax regime, VAT implications, foreign exchange, licencing schemes
and promotional activities, the demand for Chartered Accountants is on the rise.
Salary expectations
• While working independently, a Chartered Accountant’s salary will be determined according to its
services.
• As far as working in corporate firms are concerned, foreign countries can pay handsomely to CAs.
• Interestingly, the highest salary package according to the U.S. Bureau of Labour Statistics (BLS),
most accountants or auditors earned money from $ 40,370 up to $ 113,740.
Conclusion
With the developing economy, the growth of future prospects and job opportunities have taken an
upstage. Every firm and corporation has recognized the importance of structuring and planning their
financial sector to strengthen the core of the business.
Right from startups to the Big-4 or the MNCs, each company understands the negative implications that
would be faced by their companies on account of failure to satisfy the various financial compliances.
In addition to this, the dynamic industries in the world, now and then, introduce new avenues that
are readily available to be explored. Such affirmative prospects not only proliferate one’s salary
expectations but also ensure growth in their career. Thus, pursuing CA can prove to be one of the best
career options of all time.
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Digitization - Breaking the
Barriers
Muskan Agarwal
1. INTRODUCTION
History has witnessed the core transformation of the human civilization from early man to human
settlements and from industrial revolution to digitization. Today, it can be rightfully said that
technology and digitization, like air, water, food, clothes and shelter, are basic necessities and
indispensable. From being “nice to have” a few years back, digitization today has turned into “must
have”.
From CDs to MP3s, books to e-books, maps to GPS, photo albums to Instagram, post to email and
cash to e-wallets, our lives have evolved since digitization. It has impacted every aspect of our lives
and also every profession in one way to the other. And the Chartered Accountancy profession is
no exception. The CA Profession has been known to be an institution of accounting, taxation and
finance. However, long gone are the days when a CA was just a tax consultant or an accounting and
auditing expert. Today, CAs are responsible to report on the past, manage the present and create
the future. Today’s CA is no longer just a statistician but a versatile strategist and value-creator for
modern business. To stay competitive in this new business and economic environment, we requires
new strategies and practices.
Digitization has ramped up the process of world becoming a global village and has definitely broken
the barriers, justifying the title of this paper. In the present day, owing to digitization, a practising
chartered accountant is serving clientele all over the country as well as overseas from the comfort
of their homes, while non-practising CAs are availing overseas career opportunities without moving
out to those countries, thanks to VPNs. All major services provided by CA professionals in the Indian
market, be it incorporating a company via SPICe or litigations and faceless assessments in income
tax, are all digitized. The Indian government has enabled the DBT (Direct Benefit Transfer) via the
JAM Trinity- J: Jandhan Yojana, A: Aadhar Linkage and M: Mobile Linkage, again due to digitization.
But this is only the beginning and we are yet to witness what it unfolds in the future. Any happening
today not just impacts the local territory or the nearby areas, but it is exposed globally. The new
ABCDEF for CA profession to be able to take global career options in this digitized world can be with
required skills, resources and parameters of service could be:
A: Artificial Intelligence (Ai) B: Blockchain
C: Cryptocurrency
D: Data Analytics
E: E- Commerce Accounting/Electronic Signature
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F: Fintech
G: Gloal Shared Services/Global Designed Services (Gss) H: Hybrid Offices
I: Internet
J: Jupiter
K: Knowledge Process Outsourcing (Kpo) L: Lending Space and Banking
M: Machine Learning
N: Network
O: Online CFO
P: Python
Q: Quality
R: Remote Access
S: SQL/Smart Contracts
T: Tableau
U: Underclock
V: Virtual Workspace W: Work From Home X: Xerox
Y: Yearn.Finance/Youth
Z: Zoom
2. AREAS IN WHICH CA PROFESSIONALS CAN MAKE GLOBAL CAREER OPTIONS ARE:
2.1 Artificial Intelligence (AI), Block Chain, Cryptocurrency and Data Analytics:
As the name suggests, it is the intelligence in an artificial form just like the natural intelligence
possessed by humans and animals. AI today is being widely used in numerous industries including
accounting and finance. Blockchain, Big Data, Data Analytics and Cryptocurrency are all sub-parts
of AI.
Blockchain technology may represent the next step for accounting where companies can write
their transactions into a joint register instead of keeping separate records on transaction receipts.
It has the potential to increase the efficiency of the process of accounting for transactions and
assets, operating as a system of universal entry bookkeeping. With Blockchain enabled digitization,
auditor deploys more automation and machine learning capabilities such as automatically
alerting relevant stakeholders on a real-time basis. Accounting professionals who understand
and can use (and teach others about!) distributed ledger technologies will be in high demand for
process development, auditing and records management and more.
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it
nearly impossible to counterfeit. Many cryptocurrencies are decentralized networks based
on blockchain technology—a distributed ledger enforced by a disparate network of computers.
In today’s era, when savings and investments are the need of the hour, cryptocurrency has
emerged as one of the disruptive investments based on digitization.
As Cloud computing and compliance is coming up to be the new norms, CAs need to be more
tech- savvy and can become financial data persons for organisations.
2.2 E-Commerce Accounting and Fintech Sector:
Businesses that are registered on E-Commerce sites are generating more revenue compared to
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their brick-and-mortar counterparts. However, sales, returns, supplier payments, banking fees
— all of the in-and-out money movements will need to be properly categorized, analyzed, and
then reported to the tax authorities, thus making their accounting and financial functions also
complicated as compared to their counterparts. CAs can gear up for global opportunities in the
E-Commerce sector by skilling themselves in Order to Cash (O2C), Record to Return (R2R) and
Procure to Pay (P2P) processes.
Fintech, the word, is a combination of “financial technology”. Fintech is used to describe new
tech that seeks to improve and automate the delivery and use of financial services. At its core,
fintech is utilized to help companies, business owners and consumers better manage their
financial operations, processes, and lives by utilizing specilaized software and algorithms that are
used on computers and increasingly, smartphones. From cryptocurrencies changing how banking
is done around the world to creating new asset classes, block chain technology making headlines
every day, digital goods in games like Second Life becoming a billion dollar economy, fintech
is probably the fastest growing sunrise industry today. Many professionals would love to get a
piece of this pie except that they have no idea how to. Fintech-specific laws have still not been
placed in most countries, although some countries have certain regulations in place. Absence of
stable laws is a perfect sand-box situation for CAs. This gives every CA a unique opportunity as
a man with the know-how. You can utilise the pre-existing knowledge of corporate laws, acquire
fintech specific knowledge and make good money by helping out the burgeoning bandwagon
of companies starting up in this space. Financial analysis, credit risk identification, regulatory
and compliances are some areas in which CAs are already a veteran and they can harness their
existing expertise in this blooming sector.
2.3 Global Shared Services (GSS) and Knowledge Process Outsourcing (KPO):
Knowledge process outsourcing (KPO) is the outsourcing of core, information-related
business activities. KPO involves contracting out work to individuals that typically have advanced
degrees and expertise in a specialized area. Global shared service entities are entities specialising
in catering to the KPO service requirement of their clientele. Many top-notch consultancy firms
including Big4s have separate entities handling their KPO services such as the EY GDS, Deloitte
US GSS, etc. Today, around 30% of qualified CA professionals are hired in the GSS domain of
consultancy firms.
2.4 Digitized Lending Space and Banking:
Every business, no matter how big or small, requires funds and CAs act as financial management
experts for many organizations. Since times immemorial, equity and debt have been the two
major sources of finance. Although, this hasn’t changed, but there has been a paradigm shift
in the way funds are raised. In a rapidly evolving world where change is the mainstay, it should
come as no surprise that the banking sector has also witnessed tremendous transformation.
One of the most significant and evident transformations is the advent of digital banking.
Digital banking has, of course, addressed the gap in the lending ecosystem and has carefully
curated products/services to cater to the rapidly evolving demands of consumers, such as offering
personalized and more flexible borrowing experiences. It provides people with the convenience
of acquiring a loan right from the comfort of their homes. Today, a few clicks on one’s mobile
phone can help them get a loan sanctioned and credited into their accounts while helping them
save multiple back-and-forth trips to the bank. Jupiter Neobank is one of the examples of digital
bank. However, be it traditional banking or digitized, CAs continue to play major role in this
sector as auditors, credit managers and solvency professionals, to name a few.
2.5 Smart Contracts:
Most to the digitized financial and accounting technologies is based on the concept of
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smart contracts. Smart contracts are simply programs stored on a blockchain that run when
predetermined conditions are met. They typically are used to automate the execution of an
agreement so that all participants can be immediately certain of the outcome, without any
intermediary’s involvement or time loss. Parties need permission to access and engage in the
network and CAs can verify the logic of the smart contract. We as independent parties in the
entire network, can give the requisite permissions to the persons,based on the individual’s roles
and responsibilities.
2.6 Online or Virtual CFO:
Virtual CFO (or vCFO for short) stands for virtual chief financial officer. A virtual CFO is an
outsourced service provider offering high skill assistance in financial requirements
of an organization, just like a chief financial officer does for large organizations. In the present
scenario, many challenges are being faced by the organizations in terms of growth, financial
aspects, accounting as well as management. Hence, CAs can harness this opportunity to cater to
clients all over the globe providing them the requisite services.
3. SKILLS BEYOND EXCEL:
Excel has been the bread and butter of CA professionals and it continues to be so. However, in this
rapidly changing era, alone Excel is not enough. Machine Learning and languages such as Python,
SQL and Tableau helps us become tech-savvy for global accounting and financial practices thus
opening doors for global avenues.
4. RESOURCES REQUIRED:
Any task, process or learning can be successfully executed or carried out with the requisite
resources. Internet and network are inevitable resources to carry out any task, process or learning
related with digitization. Also, to harness any global opportunities, remote access, virtual workspace
and work from home facilities are a must.
5. DIGITIZATION AND COVID-19 PANDEMIC:
Covid-19 has evolved as a catalyst for the adoption and increased use of digitization. Children with
at-home Internet access began attending classes remotely; employees started working from home;
and firms adopted digital business models to maintain operations and preserve some revenue flows.
Needless to mention, Zoom, has been indispensable. Meanwhile, mobile applications were
developed to help “track and trace” the development of the pandemic; and researchers employed
artificial intelligence (AI) to learn more about the virus and accelerate the search for a vaccine. What
seemed to be science fiction a few years back, are now science realities.
6. CONCLUSION: THE FUTURE CHARTERED ACCOUNTANTS
As it is said, be future-proof or perish, or we can say develop digital skills or perish, because
digitization is the future. As CA professionals, we need to embrace the world’s breathtakingly rapid
technological advances without sacrificing the values and ethics that have so long sustained and
defined the profession. We know the world is changing at a rapid pace and so the world of
Chartered Accountancy is adapting to this change. It’s true that automation is influencing how we
perform our day to day jobs but that’s progress. These advancements have helped free up time for
Chartered Accountants to concentrate on higher value tasks and to deliver the truly insightful
support to our client businesses - at which we excel. The need of the hour is to de-skill, re-skill and
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up-skill ourselves.
Why do we need to send staff to count stock when a drone can do it more efficiently? Yes, analytics
and powerful software is replacing some traditional audit techniques, but that is just making us
more powerful - we can say to our clients we have tested 100% of your balances end to end. The
profession is evolving, not becoming obsolete. Computers may replace the transactional work, but
we as Chartered Accountants can’t and shouldn’t be replaced. A computer will never have the skills
to be able to make the judgments we make every day. In a business world that is moving faster than
at any time in history and where more data is available than ever before, holistic judgment is crucial
for our clients, our communities and our economies. As professionals, independent parties and a
champion of free markets, we represent the public interest, trust and integrity when it comes to
financial information.
Time has taught that whether it be small practitioners or big firms all have to update their
infrastructure and technologies to remain in the profession. The advancement in technology will
change the processes as well as the skill sets required of future professionals. When books and
records were first converted to computers, CAs had to improvise and test IT controls accordingly.
Later, audit documentation was converted from paper to digital form and since day one auditors
have used various forms of data analytics. For those pursuing careers in accounting and auditing,
the future is quite big and exciting with digitization.
I would like to conclude by quoting a famous quote of Mahatma Gandhi – “The future depends on
what you do today.”
So, utilise the opportunity to make it big. The world wants to witness your innovativeness.
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Indian MSME : Contributing
to Growth Engine
Pranaav Vatani
Introduction
The consistent growth of India’s economy cannot be mentioned without acknowledging the
contribution of the MSME’s a highly vibrant and dynamic sector of the Indian economy, it fosters the
economic and social development, promotes entrepreneurship and generate large scale employement
opportunities. It serves as an ancillary to larger industries and rightfully justfies the term inclusive
industrial development of the country.
The MSMEs are widening their domain across sectors of the economy. The MSMEs in India are dispersed
across the length and breadth of the country, and produce in thousands a diverse range of products
and services of products and services to meet the demands of the local as well as the global markets
and integrating into domestic and global value chain.
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The Micro, Small and Medium Enterprises Development (MSMED) Act
The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address
different issues affecting MSMEs, inter alia, the coverage and investment ceiling of the sector. The MSMED
Act seeks to facilitate the development of these enterprises as also enhance their competitiveness.
In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act,
2006 the Micro, Small and Medium Enterprises
(MSME) are classified as below:
Enterprise Investment in Plant and Turnover
Machinery
Micro Enterprise Does not exceed ₹ 1 crore Does not exceed ₹ 5 crore
Small Enterprise Does not exceed ₹ 10 crore Does not exceed ₹ 50 crore
Medium Enterprise Does not exceed ₹ 50 crore Does not exceed ₹ 250 crore
(This revision in MSME criteria of classification was announced in the Aatmnirbhar Bharat package on
13th May, 2020.)
Objective of Research Paper
The broad objective of study in this paper is to understand the contribution of MSME sector of India
towards the country’s economic growth and towards the global economy by assessing;
l Contribution of MSMEs to the GDP
l Importance of MSMEs in employment creation
l Contribution of MSMEs to the exports
A brief overview
The MSME sector has evolved as a powerful engine of country’s economic growth, in turn paving the
way to contribute to India as a global economy. Indian economy, the 6th largest in the world, sizes
roughly US$ 3 trillion, even in a pandemic hit state makes an export of around US$ 300 billion. The
number of MSMEs in India are about 64 million, which constitute 40% of India’s total exports. The
sector employs more than 11 crore people throughout the country. MSME sector accounts for 45% of
all industrial productions and 30.5% of the services sector output in India. India is expected to reach
$5 trillion in the coming years of which MSMEs have the potential to act as an engine for growth in
achieving this target.
Contribution to Indian Economy
The Micro, Small & Medium Enterprises (MSMEs) have been contributing significantly to the expansion
of entrepreneurial endeavours through business innovations. The MSMEs are widening their domain
across sectors of the economy, producing diverse range of products and services to meet demands of
domestic as well as global markets.
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Figure 1: Share of Gross Value Added (GVA) of MSME in all India GDP
Year MSME All India GDP Share of MSME in All India

GDP (in %)
2014-15 3658196 12467959 29.34
2015-16 4059660 13771874 29.48
2016-17 4502129 15391669 29.25
2017-18 5086493 17098304 29.75
2018-19 5741765 18971237 30.27
It could be seen that from 2011-2012 to 2015-2016 financial years, MSMEs contributed averagely 32%
to the GVA of India and an average of 30% to the GDP growth of the country within the same financial
years.
Figure 2: Chart of MSME share trend in India GDP

Employment created by MSMEs
Activity wise
The MSME sector contributes about 40% of the total employment in India becoming the second largest
employer apart from agricultural
Activity Category Employment (in lakh) Share (%)
Manufacturing 360.41 32
Trade 387.18 35
Other Services 362.22 33
All 1109.89 100
Figure 3: Estimated Employment in the MSME Sector (Activity Wise)
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Figure 4: Distribution of employment in the MSME sector activity wise
The manufacturing sector and service sector employ almost equal share or total employment, while
rest third of the total is engaged by others.
Rural and Urban (Geographical distribution)
Sector Micro Small Medium Total Share (%)
Rural 489.30 7.88 0.60 497.78 45
Urban 586.88 24.06 1.16 612.10 55
All 1076.19 31.95 1.75 1109.89 100
Share 96.95 2.89 0.16 100
Figure 5: Distribution of employment in the MSME Geographically and Category wise
Figure 6 Distribution of employment in the MSME sector geographically
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Figure 7: Distribution of employment in the MSME sector Category wise
Exports by MSMEs
MSMEs have a considerable amount and varieties of various goods and services amongst exports from
India. India’s total exports are around US$ 300 billion and expected to surpass the US$ 400 billion mark
in the year 2022.
Year Percentage share in exports
2014-15 45
2015-16 49
2016-17 50
2017-18 49
2018-19 48
Figure 8: Chart showing MSME export share
Figure 9
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Challenges faced
The micro, small and medium scale enterprises in India irrespective of their success story still have
a number of constraints they face in running their enterprises which hinder them from competing
globally. Some of the challenges are;
l Funding: Access to finance has been a major hindrance to the growth capabilities of Indian MSMEs.
Access to credit has always been a headache these enterprises as they mostly do not meet the
credit requirements of the banks. The micro and small enterprises in particular are usually a sole
proprietorship ventures and had to rely on their personal capital or depend on money lenders who
charge high ROI.
l Infrastructural problems: It is an undeniable fact that infrastructural constraint is part of the
numerous problems faced by MSMEs in India. Although improving at a steady rate, Indian
infrastructure hinders the possibility of MSMEs comfortably competing on global platforms.
l Competition: The micro, small and medium scale enterprises are usually face with fierce competition
from larger firms of both local and foreign origins which uses advance technologies, equipped with
the managerial capabilities, technical knowhow, good finished products and marketing advantage.
Role of the Government

Government has set up the following statutory bodies under the MSMED Act for better and progressive
governance as well as providing a strong framework, and aiding with government schemes and policies
for the MSME sector;
l Khadi and village industries commission (KVIC)
l Coir Board
l National small industries corporation Ltd(NSIC)
l National institute for micro, small and medium enterprises (NI-MSME)
l Mahatma Gandhi institute for rural industrialization (MGIRI)
( 171 )
The Ministry of MSME runs numerous schemes targeted at:
l providing credit and financial assistances,
l skill development training,
l infrastructure development,
l marketing assistance,
l technological and quality upgradation and,
l Other Services for the MSMEs across the country.
Conclusion
The analysis of data regarding MSMEs role in the development of Indian economy and in turn the
Global economy suggests that MSMEs despite facing a number or drawbacks, play a pivotal role in
contributing to GDP of India.
In the employment sector, MSMEs have created a balance with an equitable distribution of employment
generation in urban as well as rural areas thereby assisting in reducing the inequalities and imbalance
in the economy. Also As much as 51% of Indian MSMEs operates from the rural areas whereas 49%
operates from the urban cities.
MSMEs are playing a very vital role in this era of globalized market. The consistent growth of India’s
economic cannot be mentioned without acknowledging the contribution of the MSMEs. The MSMEs
sector contributes as much as between 40 and 50 per cent of India’s total export. The MSMEs averagely
contribute 30% share of the Gross Domestic Product
Way Ahead
There should be level playground for the MSMEs to be able to compete with the larger companies in
the global market.
Assistance should be given for developing in a gradual manner Micro enterprises into Small, Small
enterprises to medium, and medium enterprises to large.
The government of India in the bid to grow the MSME sector has embarked on a host of initiatives
to remove all bottlenecks affecting the sector. The Digital India initiative on the other hand provides
enough opportunity for MSMEs promotion and greater participation of MSMEs in the ICT sector. The
digital transition facilitated the emergence of globalization, which presents new opportunities for the
MSMEs to gather their own market intelligence, spread scales without mass and have access to global
markets, and acquires knowledge networks at affordable cost. Digital India provides entrepreneurs
with new opportunities to help their competition in both local and global markets through products
and services innovation.
It can be evidently seen that the government is providing various relief measures for credit availability
to MSMEs easily. Atmanirbhar Bharat is one such catalyst for MSME sector.
( 172 )
With Best Compliments :
( 173 )
NOTES
( 174 )
NOTES
( 175 )
NOTES
( 176 )
29th (Saturday) & 30th (Sunday) January, 2022 at Kolkata
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International Conference of CA Students

29th (Saturday) & 30th (Sunday) January, 2022 at Kolkata

International Conference of CA Students

29th (Saturday) & 30th (Sunday) January, 2022 (Virtual)

Board of Studies - Operations

EIRC & EICASA, Kolkata

About ICAI& BOS – Operations (SSEB)

Eastern India Regional Council (EIRC)

CA. Nihar N Jambusaria CA.(Dr.) Debashis Mitra

CA. Sushil Kumar Goyal CA. Tarun Jamnadas Ghia

Dr. P. C. Jain Dr. Ravi Gupta Adv. Vijay Kumar Jhalani

CA. Nihar N Jambusaria CA. (Dr.) Debashis Mitra

CA. Kedar Kumbhojkar CA. Ashima Jain CA. Jayesh Jobanputra

CA. Sunil Kumar Sahoo CA. Ravi Kr. Patwa

CA. Debayan Patra CA. Hari Ram Agarwal

CA. Nitesh Kumar More CA. Sumit Binani

CA. Nihar N. Jambusaria

CA. (Dr.) Debashis Mitra

CA. Sushil Kumar Goyal

CA. Pramod Kumar Boob

CA. Jay Chhaira

CA. Ranjeet Kumar Agarwal

CA Sunil Kumar Sahoo

Best wishes always.

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