Dear Professional Friends,
Season’s Greetings to you all in advance for Christmas, New Year and Sankranti! The last month of the calendar year is dawning upon one and all. It’s a time to ponder on our pleasant achievements and take positive things therefrom. Also, it is a time to dwell upon the unpleasant things to cast away, unlearn, work upon and transform in the coming year. In a way this has been a really eventful year with the GST implementation and culmination of various indirect taxes into a single fold, thereby forming a unified regime. Though unpleasant initially, hopefully we expect things to get better. With hope lies life and beautiful things unravel.
Our new theme conference on Startups titled ‘Startup Conference – Challenger Perspective’ jointly with Bombay Chartered Accountants Society on 1st & 2nd December at The Chancery Pavilion, Bengaluru was well-received by Start-up community as well as consultants and VC / Angel funds and was a resounding success and a very satisfying one. The entire conference was themed around the three segments, one where the Venture Capitalists/ Angel Investors showcased what they are looking for; two the Start-ups shared their journey of ups and downs on their success path; and three the consultants how to adapt to the needs of the Start-ups on the valuation and accounting and tax aspects of the Start-ups. The highlight of the conference was the talk of the Honorable Minister for IT, BT & Tourism Shri. Priyank M. Kharge who was very insightful of the Start-ups ecosystem and shared enormous possibilities for the businesses interested in enrolling with the Karnataka Startup Cell and extended the goodies in store for the start-ups. The panel discussions with the Start-ups who made it big and the one with Venture Capitals was highly appreciated by the delegates for the sheer content and live experience on the field being shared for the enlightenment of the aspiring start-ups in such ecosystem.
The Central Board of Direct Taxes has given more time for tax payers to link their Aadhar with PAN and has extended the earlier specified deadline of 31st December 2017 to 31st March 2018. Under the provisions of recently introduced section 139AA of the Income Tax Act, 1961, with effect from 1st July 2017, all tax payers having Aadhar number or Enrolment number are required to link the same with their PAN. In view of difficulties faced by some of the tax payers in the process, the due date for linking of Aadhar with PAN was initially extended till 31st August 2017, which was further extended to 31st December 2017. Now the deadline has been extended to 31st March 2018.
Indian Chartered Accountants who have gone through the rigours of interpreting and implementing the Goods and Services Tax, dubbed the most complicated tax law, are in great demand in the United Arab Emirates and other Gulf countries these days. Their knowledge of Hindi has come as an added advantage for Indian professionals, as many residents of the Gulf are comfortable with the language. UAE will be introducing Value Added Tax from 1st January 2018. This is similar to the GST, which came into force in India from July this year. After UAE, other Gulf countries will also be implementing the new tax. This has led to a demand for Indian experts to help businesses understand the indirect tax system. In fact, Indian professionals find the tax in UAE much simpler than the Indian GST. Chartered Accountants across the country are camping in UAE or making frequent visits to help host of clients understand the new law.
The digital currency Bitcoin is rallying at phenomenal speed, leaving many high and others dry in markets around the world. While the Bitcoin bull run has been welcomed by many, financial regulators in emerging economies are still trying to find a way to understand it. A gravity-defying bitcoin rally to over Rs.10 lakh a piece, interspersed with stories of people making crores from thousands, has left the regulators flummoxed amid fears that a complete lack of regulatory regime for such cryptocurrencies may give rise to ‘e-ponzi’ scams. In the absence of any specific legal framework, online Bitcoin trading platforms are operating freely even as the Reserve Bank of India getting jittery. The RBI has already issued multiple warnings about such risks, while reiterating that it has not given any license or authorization to any entity or company to operate such schemes or deal with bitcoin or any virtual currency. And now Income Tax department is also jumping into the party to get its fair stake by conducting surveys nation-wide.
The Ministry of Corporate Affairs has moved the National Company Law Tribunal (NCLT) seeking management control of debt-ridden real estate company Unitech Ltd on the grounds of alleged mismanagement and diversion of funds. If the Government has its way, this could be the third instance in history, after the Satyam and NSEL cases, where the government takes over the board of a company and makes efforts to turn it around. The move will help thousands of Unitech homebuyers who are yet to receive possession of their houses. The NCLT debarred all eight Unitech directors and allowed the Government to appoint 10 nominee directors. Just that during the pendency of SC hearing, the move is a bit surprising.
The FRDI Bill proposes to create a framework for overseeing financial institutions such as banks, insurance companies, non-banking financial services (NBFC) companies and stock exchanges in case of insolvency. The Resolution Corporation proposed in the draft FRDI Bill, would look after the process and prevent the banks from going bankrupt. The Bill empowers Resolution Corporation to cancel the liability of a failing bank or convert the nature of the liability. Seeking to allay concerns of depositors over provisions of FRDI Bill, the Hon. Finance Minister said the government will fully protect public deposits in financial institutions even as he hinted at openness to changes in the proposed Financial Resolution and Deposit Insurance Bill 2017. He said the government’s massive Rs. 2.11 trillion bank recapitalization plan was to strengthen banks and there was no question of any lender failing. If any such situation arises, the government will fully protect the deposits made by customers.
There were some messages being aired in social media that some persons have approached the Court of Law seeking direction to the Institute of Chartered Accountants of India for making provisions for reservation in the Chartered Accountancy course. ICAI has clarified that no such case has been instituted in any Court of Law by any person seeking direction to the ICAI for making provision for reservation in Chartered Accountancy course.
KSCAA is organizing a workshop on ‘Recent Changes and Provisions & Issues in Exports under GST’ in Bengaluru on Friday 12th January 2018. Eminent speaker CA. Siddeshwar Yelamali will be addressing the members in this workshop.
I wish to end my message with a provoking thought:
“Our greatest glory is not in never failing, but in rising every time we fall” – Confucius
Failure and success are the part of life. Many people give up after facing failure. But one should not do that. One must get up and try again with double the level of one’s energy, because one has now gained more experience. Never forget that the failures are the pillar of success. Life is great teacher. Learn from it and be a real winner.
With warm regards,