Dear Professional Friends,
I am highly delighted time and again to write in this forum, especially when the readers are a wider diaspora of unique talent breed, which to say the least are multi-faceted personalities in their own right. As I ponder as to what can I write, a thought came into my mind as to highlight few illuminaries who qualified as a Chartered Accountant and went on to don and contribute in as many ways to the society. I salute the visionary zeal and see them in the light of a Karmayogi. To name a few amongst them, Kumara Mangalam Birla, Deepak Parekh, Naina Lal Kidwai, Aditya Puri, Gurumurthy, Rahman Khan, Y. H. Malegam, Honourable Justice Vineet Kothari, Rakesh Jhunjhunwala, Motilal Oswal, Yendamuri Veerendranath. They carry with them a shield of disciplined being, persistence, patience, wisdom, depth, possess and get possessed of an air of respect in whatever they are and do.
I wish to pay homage to a special personality, who after completing CA course, went on to become a cop solving few high profile cases, Late Himanshu Roy, who unfortunately could not bear the brunt of ailment and ended his life on 11th May.
On the representations front, I am happy to bring to the fore, we have made a representation to Central Board of Direct Taxes expressing concerns regarding instructions dated 8th March 2018 relating to irregularities in appellate orders and instructions dated 28th March 2018 regarding processing of returns under Section 143(1) of the Income Tax Act, 1961 which are pushed to Assessing Authorities by CPC. Copy of the above representations are published elsewhere in the News Bulletin. Alternatively, you can access all our representations at www.kscaa.com.
We request members to write to us giving pointers where they need support and we are more than willing to build around it and populate before right forums.
The Central Board of Direct Taxes has notified Income Tax Return (ITR) Forms applicable for the Assessment Year 2018-19. Significant changes have been made to new ITR Forms with additional disclosure requirements. Residents with income up to Rs.50 Lakhs from Salary, House Property and other sources will be required to file ITR-1, Residents with income more than Rs.50 Lakhs and non-residents are required to file ITR-2 or other forms with elaborate additional particulars. Presumptive tax payers are mandatorily required to furnish GST Registration number, turnovers declared in GST Returns, and additional information such as Partners / Member’s Capital, Fixed Assets, Advances, Secured and Unsecured Loans in ITR-4 (Sugam), which are burdensome for tax payers who are not required to maintain books of account as per the provisions of Income Tax Act. With the introduction of GST related fields, the Income Tax Department will link turnovers and other related information. This was much anticipated as the Government is building its capabilities in use of the latest new age technologies like data mining techniques and artificial intelligence to capture leakages. Overall, the revised forms require lot of additional disclosures for which we as tax professionals need to gear-up, plan ahead of tax filing season and create awareness among the tax payers for proper and timely tax compliance.
The GST Council in its meeting held on 27th April 2018 approved making the GST-Network (GSTN), a government entity by allowing the regime to take over the stake held by private entities. Post the deal, the Central Government will own 50% of the GSTN and the State Governments will collectively hold remining 50%. The Council unveiled a new simplified return filing process that will require a taxpayer to file only one return every month which will come into force in six months. Composition dealers and dealers having Nil transaction will continue to file returns on a quarterly basis. After deliberations, the Council referred the issue of giving a two percent incentive for digital payments, to a five-member committee of State Finance Ministers, while most states favour giving the incentive, if all payments are paid digitally or through cheques, but some want a small negative list. The Council also deferred the decision of imposing cess on sugar and reducing GST on ethanol.
The Companies (Registration, Offices and Fees) Second Amendment Rules, 2018 has been notified on 7th May 2018. Accordingly, in case the due date of filings under Section 92 (Annual Return) or 137 (Annual Financial Statement) of the Companies Act, 2013 expires after 30th June 2018, the additional fee of Rs.100/- per day shall become payable in respect of MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS. In all other cases where the belated annual returns or balance sheet/financial statement which were due to be filed whether under the Companies Act, 1956 (Form 23AC, 23ACA, 23AC XBRL, 23ACA XBRL, 20B, 21A) or the Companies Act, 2013 (MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS) additional fee as per the applicable slab for the period of delay up to 30th June 2018 plus Rs.100/- per day w.e.f 1st July 2018 shall become payable. Members are advised to take note, create awareness among stakeholders and plan accordingly.
Upcoming events and programs for the month:
KSCAA jointly with Tumkur District Chartered Accountants Association (TDCAA) is organizing a discussion on “New e-Way Bill System and practical issues in GST Returns” and “Analysis of changes in new ITR Forms” on Saturday 26th May 2018 at TDCAA premises, Tumakuru. I request mofussil members to make most of this event.
For more details on the upcoming programs, please visit www.kscaa.com
I wish to conclude this message with a provoking thought:
“Today’s pain is tomorrow’s power. The more you suffer today, the stronger you are tomorrow.”
Self-pity is self-defeating. Tomorrow’s success is based on today’s discomfort. Plus, willpower is like a muscle; The more you exercise it, the stronger your will gets. And easier it is to call on when dedication and persistence make all the difference. Embracing pain in a proactive manner only transforms and helps individuals set themselves for great trajectory and positioning.
With warm regards,