President’s Message | September 2019
Dear Professional friends,
The month of September is one of the busiest months for finance and accounting professionals in India and this comes with toiling up the time to meet deadlines and matching the expectation of deadlines. My professional colleagues have acclimatized with the ever-demanding compliances and reports. Not only are accounting professionals over working, as per news report even the legislative productivity is high during the recent sessions, this only assures the country of better future. The recent attempt of Chandrayan-2 has been an unimaginable attempt by a country which on other side is yet to ebb many out of poverty.
My heartily wishes for the upcoming festive season of Dasara. Dasara, which is known as ‘Nada Habba’, has to its tradition and culture of Karnataka for long. It was celebrated during the time of Vijayanagar-King and was later adopted by rulers of Mysore and from then has been engrained as the tradition of the state.
News Round up
Goods and Service Tax
Introduction of Sabka Vishwas (Legacy dispute resolution Scheme 2019) is a bold step taken by the Government for closing all the baggage of legacy disputes related to the Central Excise, Service tax and slew of 26 cesses payable under different indirect tax enactments. This scheme also gives an amnesty to those who have failed in discharge of correct tax liability by way of voluntary disclosure. This indeed is a great opportunity for assesses with legacy tax issues to close them once for all and divert their energy and focus on GST, which is a way forward.
We Chartered Accountant professionals are the harbingers for the success of any such scheme which government promulgates and therefore it is incumbent upon us to be well versed with pros, cons and procedures involved in this scheme.
Corporate and Business law
With a view to simplify the process for incorporating Section 8 Companies, the MCA has removed the requirement of prior filing of INC-12 for new section-8 companies. Hereafter, Section 8 Companies can be incorporated by either reserving names through “Run” and filing “SPICe” thereafter or by directly filing “SPICe”. Section 8 companies will be allotted with License No at the time of incorporation itself. This would ease the process of incorporating the “not for profit” companies. Central Board of Trustees (“CBT”) in a meeting held on 21 August 2019 took a major decision of approving the amendment in Employees Pension Scheme for restoration of commuted value of pension to the Pensioners after 15 years of drawing commutation.
Income Tax
- To encourage Startups, the Government has provided relief on angel tax provisions i.e., non-applicability of Section 56 (2) (viib) of the Income Tax Act. CBDT has also clarified that start-ups with turnover up to ?25 crore will continue to get the promised tax holiday as specified in Section 80-IAC, which provides for 100% deduction of income of an eligible start-up for 3 out of 7 years from the year of its incorporation.
- CBDT in order to reduce the litigation has also rationalised the monetary limits of filing departmental appeals/Special leave petition.
- To mitigate genuine hardship, the CBDT has relaxed the timeframe prescribed in second proviso to Section 143(1) and directs that all validly filed returns up to AY 2017-18 with refund claims, which could not be processed under section 143(1) and have become time- barred, can be processed now with prior approval of Pr. CCIT/CCIT concerned and intimation of such processing under section 143(1) can be sent to the assessee concerned by 31 st December, 2019
Representations
We together with Bombay Chartered Ahmedabad Accountants’ Society, Chartered Accountants Association (Ahemdabad), Chartered Accountants Association (Surat) and Lucknow Chartered Accountants’ Society have submitted a detailed representation on the matter of Income Tax and GST, summing to around 15-20 areas for the government to dwell and remove the hurdles for professionals and businessman.
It is happy to note that Government of Karnataka has been kind to provide relief to Cooperative Societies of specified districts, by extending the due date of Audit. This relief was well in time with our representation for the same made by us.
Upcoming Programs
By the time this issue of the Newsletter has reached you we would have conducted One Day Workshop on Practical Approach to Tax Audit & Changes in 3CD, Recent Amendments in Finance Act 1 & 2, 2019 at Shivamogga on 14th September 2019 and One Day Workshop on GST and Career Counselling Program at KLE Society’s Lingaraj College, Belagavi on 16th September 2019.
With Tax audit round the corner, we have planned following program for the month of September 2019
- Demystifying issues in 44AB, AD, AE and clause by clause analysis of 3CA, 3CB and 3CD by CA. Naveen Khariwal on 18th Sep 2019 at KLE Nijalingappa college, Rajajinagar and on 19th Sep 2019 at Vasavi Vidyanikethan Trust, Basavangudi.
- ‘Proposed changes in Audit Report Applicable to charitable or Religious Trust or Institution’ by Dr. N Suresh on 20th Sep 2019 at KSCAA’s Rajajinagar office.
KSCAA inaugurated a unique program called, ‘Eloquent professionals’ catering the needs for growing demands among professionals in their day today conduct of practice. The program is a closed meeting of professionals on weekly basis and would convey 360 degree development to professionals covering some of the daily and sundry challenges of professionals in practice.
I thought to share this piece of saying by the Indian born American Astronaut, Kalpana Chawla, which probably requires us to move the life with vision and perseverance “The path from dreams to success does exist. May you have the vision to find it, the courage to get on to it, and the perseverance to follow it.”
Yours Sincerely,
CA. Chandrashekara Shetty,
President.
