Dear Professional Friends,
Vibrant Karnataka has just turned 61! Many of us in Karnataka having marked out November 1st on our calendar, would have planned short getaways and lazy breakfasts, secure in the knowledge that it’s a public holiday. In the real sense how many know what it signifies? It is the day state of Karnataka was formed. On this day, in 1956 all the Kannada speaking areas of South India were merged into a new state which was erstwhile known as Mysore state, but this was considered too reminiscent of the old princely regiment, and the name was changed to Karnataka on 1st November 1973. Kannada Rajyotsava is celebrated very enthusiastically all over the state. The state is dotted with Red and Yellow as the Karnataka flag is hoisted at important locations, and the state anthem is sung. The beauty of this day is that it is enjoyed with as much excitement across age groups, religion, gender and income, making it a truly wholesome and inclusive celebration. Kannada Rajyotsava is really a day to pay tribute to the rich cultural heritage of Karnataka, celebrate its progress and work towards its continued development.
On the most happening and debated GST front, the recent 23rd GST Council meeting that concluded in Guwahati on 10th November 2017 was much-awaited for easing hardships faced by business. The speculation surrounding the meeting was akin to that of the annual union budget announcements. For many it was a reason to cheer and for some there were more than one. On the rate front, the Council trimmed down 28% slab comprising 227 products to just 50. A large variety of consumer goods ranging from detergents to chocolates to beauty products faced rate cuts while rates for sin goods and cess applicable goods, durables like refrigerators, washing machines and cement were kept unchanged for obvious reasons. All restaurants whether air-conditioned or otherwise except those in star hotels with room tariff more than Rs.7,500/- per day were moderated to 5% without Input tax credit. Those falling in star hotels with room tariff exceeding Rs. 7,500/- per day will continue to be taxed at 18% with Input tax credit. On popular expectations by various associations, trade bodies, the Council for the second time increased the threshold for Composition Scheme from 1 Crore which had found few takers to 1.5 Crores and was further rechristened to a single rate structure of 1% for traders as well as manufacturers.
On the compliance front, the Council announced a series of extensions and suspensions aimed to help the tax payers, Government and the GSTN. The last dates of various filings have been extended in view of continuous technical glitches. The summary monthly return GSTR-3B instead of detailed filing has been extended for the entire financial year. The Council decided to temporarily suspend complex invoice matching procedure to reexamine it very closely. The penalty for late filing of returns are reduced substantially to bring in equity. To sum up, the decisions sounded a bold move and all ears to the industry noise. Instead of frequent monthly extensions, suspension for the entire fiscal year would provide much needed time for a softer landing. The rate cut should also provide a little succor to the tax payers as well, who have faced increasing tax rates always.
It is imperative to note that your association has made five representations (details may be accessed @ www.kscaa.com) on various pain points faced by the trade and this was well received by the ministry and officio. What is really heartening to see is the very points brought forth have been tinkered majorly to grant substantial relief. We sincerely are committed to take up the issues unaddressed and seek solutions in this regard. While we are keen to take up issues and populate before appropriate forums, what we really need from members is clarity on issues, brief suggestions to ease such issue so that we can make meaningful representations.
After prolonged tax compliance months meeting various regulatory deadlines, it’s a time to de-stress. In this regard, KSCAA organizes much anticipated Sports and Talent Meet jointly with Bangalore Branch of SIRC on 19th November and 26th November. Enthusiastic participants can register soon to help us organize the event even better.
Standing at the cusp of a growing entrepreneurship atmosphere in India and unprecedented growth in the new age business and emergence of ‘Start-Ups’, this sector is grappling with lack of knowledge about best practices and management experience evident from recent issues faced by nascent entrepreneurs. Therefore, there is a need for more statutory, accounting and management guidance to address challenges faced by the Start-Ups. In the effort to bridge this gap, KSCAA in association with Bombay Chartered Accountants Society (BCAS) is organizing ‘Startup Conference – Challenger Perspective’ on 1st and 2nd December 2017 at the Chancery Pavilion, Residency Road, Bengaluru. I request our members to actively participate in huge numbers and make this event a grand success.
We are organizing one-day seminar on ‘Direct & Indirect Taxes’ jointly with Belagavi Branch of SIRC of ICAI on Saturday 16th December 2017 at Belagavi in our effort to disseminate knowledge to mofussil members. I request our mofussil members to make most of this event.
For more details on the upcoming programs, please visit www.kscaa.com
We wish to inform you that we have constituted various committees like Taxation, Corporate and allied laws, Journals & Publications, Membership development and Public relations, Sports and Skill development, Mofussil programs, e-Initiatives and Social media to diversify the activities of the Association and to serve the members in a better way. To achieve this, we solicit seniors and members to join us in mentoring and building the committee activities and need valuable inputs to achieve the desired goal of ‘Growth, Share & Transform’ as envisaged motto of the term, and going forward. In this regard, we make an earnest appeal to the past presidents, subject experts and young chartered accountants who can devote their valuable time to support the Chairmen of respective committees towards this noble cause of our profession.
I wish to end my message with a provoking thought:
“Success is going from failure to failure without losing your enthusiasm” – Winston Churchill
Getting knocked around by failures is never fun or easy, but this advice reminds us that it’s vital that you remain enthusiastic when facing your next venture even while you are unsure of the outcome. It’s not an easy task, but it’s clear to see that if you let your defeats get you down you only make it that much harder to get that elusive success. Do make an effort to get enthusiastic about your current endeavor, regardless of past failures by taking it into stride as a valuable experience. This is the only sure way to succeed, and help build momentum on the path of success. It’s one phase of life “This too shall pass”
No matter what you’re going through, there’s always a light at the end of tunnel!
With warm regards,