President’s Message | August 2020
Dear Professional friends,
I’m excited to write to you as the president of this association for the 13th time in year and would be only fortunate president to have done this. The month of August and subsequent few months for a Chartered Accountant is of test of his professional endurance, with frequent fun frolic festive times. This year has been an introspection year to all of us to go more deeper into what we believe and build professional stamina for the better day to come.
When I assumed the post of President last year, my ideas revolved around the area of welfare to my fellow professionals and empowerment to my younger colleagues, whose strata would have subsidised their confidence to face the world like many others. Alike any other assignment or engagements, there have been hits and misses in equal proportion, and we acknowledge both of them with utmost sincerity and humbleness. I’m Confident that the line of upcoming leadership would do a wonderful job and this only shows that the association is in safe and able hands.
This would be the last message of mine as the President of the association and I’ve a satisfaction to have carried the business of the association to my fullest strength. As elsewhere stated by me, in this message, things undone always stay with us, but that must take the joy of what has be genuinely done. The AGM of the association has been scheduled; in short time we may have a new president who would lead this association to a newer height.
News Roundup
Goods and Service Tax
The Government’s stance remains firm on the rolling out of e-invoicing system from 1st October 2020. However due to Covid-19 pandemic the threshold of turnover limit on the applicability of this requirement is recently enhanced from Rs. 100 Crore turnover to Rs. 500 Crore turnover in FY. Further SEZ have been saved from the applicability of e-invoicing requirement.
As further relief in the compliances, the composition taxpayers have been given further extension in the filing of GSTR-4 return for the FY 2019-20 from 15-07-2020 to 31-08-2020.
Hon. Gujarat HC in the case VKC Footsteps India Pvt Ltd has recently read down the pernicious explanation (a) to Rule 89(5) of CGST Rules 2017 which purportedly disregarded the input tax credit related to input services in the computation of eligible refund of tax on account of Inverted duty structure. This explanation is held to be ultra vires plenary refund provision of section 54(3) of CGST Act 2017. It is welcome decision for all those taxpayers who fall under inverted duty structure with substantial input tax credits on account of input services in their kitty.
Corporate and Business Law
The Ministry of Corporate Affairs has published the Companies (Indian Accounting Standards) Amendment Rules 2020 on 24th July 2020. The amendments have been made in IND AS 103, IND AS 107, IND AS 109, IND AS 116, IND AS 1, IND AS 8, IND AS 10, IND AS 34 and IND AS 37. Some of these amendments have come in the wake of pandemic such as the amendment to IND AS 116. The ministry has amended the rules whereby entities would get relief from lease modification accounting due to COVID-19 related rent concessions. The amendments can be followed by lessees for annual reporting periods beginning on or after April 1, 2020. This amendment was keenly awaited by the Indian Companies who are waiting for quarterly results.
Among others, the ministry has also amended rules regarding IND AS 103. These are aimed at helping entities to determine whether a transaction needs to be accounted as a business combination or as an asset acquisition. Definition of “business” has been inserted in IND AS 103 and the acquiring entity needs to check whether the acquired assets and liabilities constitute a “business” as per this definition. If the assets acquired are not a business, the reporting entity shall account for the transaction or other event as an asset acquisition.
Further, the MCA vide a general circular dated 6th July again extended the last date of filing form NFRA-2 for financial year 2018-19 to 270 days from the deployment of the form in NFRA website.
Direct Tax
- In view of the constraints due to the COVID pandemic & to further ease compliances for taxpayers, CBDT has extended the due date for filing of Income Tax Returns for FY 2018-19(AY 2019-20) from 31st July 2020 to 30th September 2020, vide Notification in S.O. 2512(E) date 29th July 2020.
- Extension of due date for Tax Deducted at Source (TDS) and TCS related compliances by Central Board of Direct Taxes (CBDT).
- An MOU was signed between CBDT and Ministry of MSME on 20th July 2020 to facilitate seamless sharing of certain ITR related info by CBDT with MoMSME and enable it to check/classify enterprises in Micro, Small and Medium categories. This marks a new era of cooperation between CBDT and MoMSME.
- Refunds worth Rs. 71,229 crore have been issued by CBDT in more than 21.24 lakh cases up to 11th July 2020, to help taxpayers with liquidity in COVID days, following the Govt’s decision to issue pending income tax refunds at the earliest.
Conclusion
At this juncture I remember what John Dryden’s wrote‘Even victors are by victories undone’. It contains a germ of hope for those who find themselves defeated, and it cautions those who appear to have carried away the prizes. I thought to share this to mean, we may perceive ourself as victorious and move confidently ahead. While the conspiring event may defy this victory for prolonged time, as things undone would eventually catch up with victors on what is undone. I during my Presidentship move with this hope that things undone will someday overshadow but that’s not the premise we need to work in any part of our life. Rather victors have shelf life, this brings humbleness and gratitude to what is done and gained and submission to what is undone.
Stay Safe and Happy reading!
Yours Sincerely,
CA. Chandrashekara Shetty,
President