December 2015

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President’s Message
Dear Professional Colleagues, All Good things come to an end…only to mark a new beginning. Another year starts and with it, new hopes and aspirations – a faint desire that sprouts in every human heart that speaks of happiness, prosperity and goodness to come. The year gone-by might have shown many successes with grim state of affairs around the world with stories of tragedies and human failures never ceasing to seize the headlines. But the excitement of a new year brings about an anticipation of a better future. This is one real moment that will touch the fabrics of human emotions that entails not only hope, but a reason to keep smiling and living life as it is. As year 2015 is coming to an end, the dawn of another year welcoming us, awakening oneself to embrace new skills to convert challenges into better opportunities. A historic moment in the GST exercise, the Chief Economic Advisor (CEA) presented GST report to Honorable Finance Minister on 4th December 2015 on Revenue Neutral Rate (RNR). Contrary to the rumors of a high GST RNR, the recommendations from the committee headed by Chief Economic Advisor are very reasonable. The CEA recommended RNR at 15% to 15.50% and the Standard GST Rate to be in the range of 17% to 18%. The CEA also made a recommendation for removal of 1% additional tax by manufacturing states, concessional rate at 12% and demerit tax rate of 40%. Introduction of GST will improve tax administration and governance. It will also bring fairness and rationality in tax system. The CEA Report will pave the way for creation of a common market and getting rid of barriers between states. Another hectic month of statutory compliance for Chartered Accountants as due date for filing of Annual Returns under the Companies Act, 2013 and VAT Audit Report under the Karnataka Value Added Tax Act, 2003 is around the corner. We earnestly hope that we all comply with the due dates efficiently. As you aware Association had filed a case before the honorable Karnataka High Court in the month of January 2015, challenging the inclusion of Cost Accountants in Co-operative Audit. As a relief in this much awaited case, the honorable Karnataka High Court passed an interim order not to include Cost Accountants in the Co-operative Audit. It is only a temporary relief to us as the case is to be decided and the final order yet to be passed. We urge all the members not to leave any stone unturned till we get a final and permanent relief in this regard. We also extend our gratitude to all those who participated and contributed to this success. Our Association jointly with Bangalore Branch of SIRC of ICAI successfully organized CA Cricket league, Sports and Talent Meet on 22nd and 29th November 2015. We congratulate winners of the events and wish success to participants. We are thankful to Bangalore Branch of SIRC of ICAI for their co-operation in conducting the meet. First round of Council Elections are over, poor turnout is haunting our Institute. Bengaluru voting percentage was 34.71%, however rest of Karnataka, except postponed booths, shown improved statistics. Total Karnataka’s voting percentage was 36.75%. We hope next term elections are on e-voting platform to increase the participation of other members in the process. Association is planning to hold its 28th Annual Conference on 5th & 6th of March, 2016. It is a mega event for the Association, hence we request all the members to block their calendar and actively participate in this knowledge sharing and networking exercise. We earnestly request all Branches of ICAI and all District Associations of Karnataka State, not to hold any events on these dates and support this Annual Conference. The recent floods in the state of Tamil Nadu have caused extensive devastation. A large number of people have died and thousands have been rendered homeless. At this moment, the affected people in Tamil Nadu need help to tide over this natural calamity that has fallen upon them, to survive and to rebuild their lives. In this scenario, ICAI has decided to stand with our distressed fellow countrymen, and actively participate in the national effort to support them at this difficult time. To provide the relief for the people affected by the devastation, ICAI has opened a bank account exclusively for the purpose of collecting donations from members and students. Please visit ICAI website for information and contribute generously to the cause. Two major festivals Christmas and Makar Sankranti celebrated in these months. Christmas marks Birth of Christ into this world, the savior of humankind. Makar Sankranti, a festival marks the transition of the Sun into the zodiac sign of Makara rashi (Capricorn) on its celestial path. Scientifically, this day marks the beginning of warmer and longer days compared to the nights. In other words, Sankranti marks the termination of winter season and beginning of a new harvest or spring season. This is thus considered as the holy phase of transition. May the air of Christmas and Sankranti lift your spirit; the sun brighten your destiny and may moon of the season glow with God’s favour in everything you lay your hands. We wish for peace and happiness at Christmas and throughout the New Year. Always in service of profession, Executive Committee Karnataka State Chartered Accountants Association.