President’s Message | April 2019
Dear Professional friends,
The season of election starts on 11th of April 2019, the largest democracy in the world steps to choose its leader who will lead India for next five years. The election in India has vast and interesting history, the sheer volume, demographic challenge and economic spending makes a case study of itself. The results of elections can be changed by voting and the franchisee needs to be exercised with diligence, caution and care. With around 280,000 Chartered Accountants, who associate themselves to an elite profession, must surely ensure to make time on the day of election and vote for the future of the country.
With Chaitra masa, shift of spring to summer signifies the change in climate – while its vacation for kids on one hand, time for Chartered accountants to join the family to refresh and enjoy. On the other hand, the closure of financial year clocks them to gear up for the upcoming financial audit season.
The season of summer is very scorching and the impact of deteriorating climate and its effect on the day today functioning is visibly seen, as a chartered accountant its impact should not be viewed individualistically but with its ever cursing and changing ratio of industry and business. Some of the most draught effected districts of Karnataka, have challenges on scaling up the means of economics while human gambles hard with nature. With credit facility severely monitored, dynamics would only somber with poor rain, constant raise in temperature and change in climate.
New Roundup
- The Income tax return for the AY 2019-20 has been released by the government with some major changes in disclosure and realignment of ITR forms. The departments ever hunger for data has to be seen with automation of IT scrutiny, therefore members may approach the filing with caution. We wish the government to release the schema also, so that my fellow professionals receive sufficient time to file the IT return and tax Audit.
- For the FY 2017-18, GSTR 9 is available online for filing and the last day to file is extended to 30th June 2019. Composition scheme for services has been introduced from 1st of April 2019 with 6% GST and the scheme needs to be opt for composition.
- Builders and home buyers are trying to understand the best deal for them under the new Goods and Services Tax (GST) rates for ongoing projects and it seems to be turning into a double-edged sword for some. Real estate developers have time until May 10 to decide on whether to stick to the old 12 (residential) or 8 per cent (affordable housing) rate with input tax credit or the new 5 per cent (residential) and one per cent (affordable housing) rate with no credits. However, the choice between the two rates for ongoing real estate projects is not proving to be an easy one with concerns over how the over-used credit will be calculated and adjusted in case the new rate is taken and the customer reaction if the builder chooses to stay with the old rate and there is no reduction in the prices.
- The anomaly regarding input tax credit utilisation due to insertion of Section 49A by the Central Goods and Services Tax (Amendment) Act, 2018 has been corrected by CBIC, which is a much needed relief to tax payers. The sequence of Integrated GST credit utilisation as per newly inserted Rule 88A will be, the IGST credit will first be utilised against IGST liability and the balance credit will be available for set off against Central GST or State GST based on the option of the taxpayer. This correction will do away the unwanted credit accumulation which had crept in due to insertion of Section 49A and improve the cash flow of retailers.
- The Ministry of Corporate Affairs (the MCA) in the month of January & February 2019 has issued the amendments notification under the Companies Act 2013 (the Act). Companies (Incorporation) Rules, 2014 mandating all the companies incorporated prior to 31 December 2017 to upload all their particulars of various compliances including details of registered office in Form INC 22A Active. Due Date is 25th April 2019. Changes in Companies (Acceptance of Deposits) Rules, 2014 mandating all companies to file a return of deposits in Form DPT 3 with the MCA, furnishing information about file the transactions that has not been considered as deposit or both under the Companies (Acceptance of Deposits) Rules 2014 (Deposit Rules). Due date of filling is on or before 22nd April 2019.
Upcoming Events and programs
We are organizing workshop on the topic ‘GST Annual returns and Audit guidance on filing and reporting’ on Friday 10th May 2019 at VVN Trust, Basavangudi, Bengaluru. We are also organizing workshop on the topic ‘Recent Amendment in GST, Analysis of notification and Circulars’ on Friday 17th May 2019 at VVN Trust, Basavangudi, Bengaluru.
I wish to conclude my current months message with a quote by Andy Warhol
“They always say time changes things, but you actually have to change them yourself.”
I feel it apt to the profession which is ever changing and adapting to business and regulatory requirement and will continue to do so.
Sincerely,
Raghavendra Shetty
President
