Foreword

Esteemed Readers,

Bombay Chartered Accountants’ Society (‘BCAS’) since its inception has always nurtured talent and promoted knowledge that aids in professional upliftment.

The last three months of 2020 have not only witnessed a large majority of the human race being locked in a battle against a bio-threat but also seen the biggest economies of the world stoking fears of a global recession, all because of a virus called Covid-19. This has spread across the world with no immediate cure or vaccine available. The human race is under siege and social distancing norms seem to be the only effective remedy to deal with the pathogen.

The world today appreciates the measures taken by the Indian Government for containing the spread of Covid-19 effectively keeping in mind the population of our country. Police and the armed forces have worked day and night to create awareness and make sure that people at large follow the discipline of lockdowns religiously. The medical, health and sanitation staff are working extra hours and days to assure the speedy recovery of the patients who are infected by the virus and the safety of people who are at home. We all need to understand that the only way to protect ourselves is to keep practicing social distancing, personal hygiene and repetitive sanitization as a life-style. The is the new normal. BCAS also endorses and supports these activities to ensure a healthier environment for all.

Covid-19 poses as daunting a challenge to the livelihoods of millions, as it does to lives. To address these adverse impacts, the Government of India has been proactive in initiating measures for business continuity and sectoral revival with structural reforms. Measures to attract foreign investment in the Indian manufacturing segment are also underway. Through the “Atmanirbhar Bharat” initiative the Government has endeavoured to provide stimulus and support to businesses affected by announcing the ₹ 21 trillion economic package. Special focus has been on the MSME segment, which forms the backbone of the Indian economy. The MSME sector which contributes close to 30% of India’s GDP and 45% of India’s exports, after agriculture, is also the sector that contributes the most in terms of employment generation. The ₹ 3 lakh crore emergency credit line without additional collateral and guarantee fee along with other initiatives, aims to enable kick-starting this crucial sector post the lock-down.

In a concerted effort with the government, the Reserve Bank of India has also initiated several measures on the monetary policy front especially the deferment for repayment of loans and interest for two quarters. This, in addition to the reduction in repo rate and other policy matters is intended to make available enough liquidity in the hands of businesses. The size of the problem we face is of Himalayan proportions, and equally strong antidotes will be needed to see us through this pandemic. Looking ahead, stimulus to kick start industry in terms of manufacturing as well as consumption is a step to be considered to begin the consumption-manufacturing-employment cycle. Another step forward would be supporting infrastructure projects, as these large projects provide employment and cause a ripple effect in the economy by boosting other sectors. We are confident that the Government would consider this as the next step forward towards a more inclusive as well as stable economy.

BCAS is in its 71st year of existence and has always aimed to disseminate knowledge to its now 9000 plus members spread pan-India. BCAS acts as a catalyst for promoting professional excellence, leadership skills and networking opportunities.

For the past, more than 5 decades, BCAS Referencer has been a constant beacon of clarity and guidance. It has been a bridge of unity between professionals and non-professionals. Keeping in mind the growing complexities in various laws, and with the aim of assisting professionals and practitioners, the BCAS Referencer 2020-21 comprises of 6 separate booklets covering various domains namely: Accounting and Auditing, FEMA and International Taxation, Direct Taxes, Indirect Taxes, Company Law and Allied Laws. This year is Referencer’s 58th continuous year of publication and 23rd year in terms of theme-based publication. The BCAS Referencer 2020-21, simplifies the new provisions of the Finance Act, 2020 enacted recently and the numerous changes announced by the Government during the lockdown from time to time.

The theme for this year is “India Untraveled 2020” which was finalized well before Covid-19 made its presence felt. Like all things in life, the Corona phase too shall pass and our travel desires will rebound. India Untraveled 2020 is one such window into a calmer, more scenic and infinitely more relaxing twelve locales within India itself. These truly breathtaking locations have one thing in common – they offer you something truly unique, and bring excitement into your life through the simple act of travelling to these lesser-known places and just being there. Here, you come face to face with the true beauty of nature while getting a deeper understanding of the enduring human spirit which not only lives in these locations - but actually thrives. All these factors create a truly, once in a life experience for those adventurous enough to seek it.

Whilst every year BCAS brings to its readers this Referencer, as a one for all solution, exclusively designed by a team of experts in the profession. This year we also wish to extend wellness prayers and greetings to you, your family and colleagues. We all stand united together as one family in these testing times.

We firstly acknowledge and deeply thank our always friendly mentor Past President CA Pranay Marfatia for his guidance, dedication and decades of experience.

We also acknowledge the efforts made by the army of Compilers who stepped forward even during this lockdown. We thank our editorial team of CA Yatin Desai, CA Sangeeta Pandit, CA Zubin Billimoria and CA Kinjal Bhuta for their enthusiastic and proactive contribution. Their precise editing amidst such short deadlines in the middle of their work from home period is indeed praiseworthy. The designing and printing by our printer Finesse Graphics continue to outshine year after year. The BCAS staff too has put in a good amount of effort in providing administrative support to this Referencer.

We have taken great efforts to compile the matter in the Referencer from the latest available details with dates given accordingly. However, we request readers to go through amendments, if any, post the release of this Referencer when referring to the same

Take care, stay safe. Wishing you happy reading and referencing!!