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    Ind AS – 101 “First Time Adoption of IND AS” Overview


    1. Applicability 
    2. Definitions 
    3. Opening Ind AS Balance Sheet 
    4. Retrospective Application of Ind AS 
    5. Exemption from Retrospective Application of Ind AS

    This article is contributed by Partners of SBS and Company LLP - Chartered Accountant Company. You can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.


    1. Introduction: 

    Foreign Exchange Management Act, 1999 (FEMA) is administered through the Authorised Persons. It is based on the declarations made to them by persons while undertaking the transactions. The Reserve Bank, therefore, has prescribed various reports and forms under FEMA to be submitted by/through Authorised Persons/ Authorised Dealer (AD) Category – I Banks/ Authorised Banks. Accurate compilations and timely submission of these reports are of critical importance as they not only act as a supervisory tool but also help in fine-tuning the policies relating to Foreign Exchange transactions regulated under FEMA. 

    1. Reporting under statutory requirements: 

    As per paragraph-9(A)(1) of Schedule I of FEMA Regulations, 2000 and Regulation 13.1(1) of FEMA FDI Regulations, 2017 ,an Indian company which has received amount of consideration for issue of capital instruments (Shares/ Convertible Debentures or any other instruments as per Foreign Direct Investment Scheme) and where such issue is reckoned as FDI, then Indian company shall report each receipt (including each upfront/ call payment) mentioning below details in ARF to the concerned Regional Office (RO) of the Reserve Bank of India (RBI) within 30 days of receipt of funds from the Foreign Entity. 


    The place of supply provisions determines whether the supply transaction is Inter-State or Intra-State. Depending upon the type of transaction, the tax to be levied is either IGST or CGST and SGST/UTGST. Hence, every transaction involving supply of goods will have to go through the test of provisions relating to place of supply of goods in order to determine which tax is to be levied. Thus, under GST Regime, the place of supply is not only relevant for services but also for the supply of goods. In this article, we shall be discussing on provisions relating to place of supply for goods. 

    In GST, the manner in which a supply is to be determined as Inter-State Supply or Intra-State supply has been provided in the Integrated Goods and Service Tax Act, 2017.To determine whether a transaction is an Intra-State or Inter-State, we have to identify two aspects i.e., location of Supplier and the place of supply. Where the location of supplier and the place of supply is within the State/Union territory then the transactions is said to be an Intra-State transactions and where the location of supplier is in one State/Union territory and the place of supply is in another State/Union territory, then the transactions is said to be an Inter-State transaction. The Imports and Export transactions are always considered as Inter-State Supplies. Similarly, the supply to SEZ units or developer is always treated as Inter-State transaction even the location of supplier and place of supply are in same State.


    1. Introduction
    • As per Rule 22 of the Special Economic Zone Rules, 2006 (“Rules”), the SEZ unit has to prepare a report showing SEZ unit post commencement of production and submit the same to the Development Commissioner who shall place the same before the Approval Committee for consideration. The preparation of Annual Performance Report (APR) has to be done independently by each SEZ unit located in SEZ area. An APR, which has to be duly certified by an independent Chartered Accountant [[i]], has to be filed with the Development Commissioner of the subject unit, who shall place the same before the Approval Committee for consideration [[ii]]. The Approval Committee does annual review of the performance of every unit and the compliance with the conditions of approval on the basis of the APR.



    Under the erstwhile service tax regime, the services by way of transportation of goods by vessel or aircraft from a place outside India up to the Customs Station of Clearance in India were originally covered under the Negative list as given under section 66D. With effect from 01.06.2016, these services are taken away from section 66D. While the transportation services by air remains exempted, services of vessel are made taxable. Doubts have been expressed by the industry and tax experts about the vires of taxing such services as the said services are subject to customs duty as part of the value of goods imported. These doubts continued even under GST regime also. 

    Governments have subjected these services to tax even under GST regime, without appreciating the reasons for levy under erstwhile Service tax regime and examining whether levy of GST on such services is really warranted in view of those reasons.