President's Desk 

President’s Message | August 2021

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Dear Professional friends,

This is the last communication as a president for the present term of Executive committee. I occupied the chair as the President amidst peak of pandemic and have seen the committee responding favorably to the changed demands of members. Rather, even when I write this message, the fear of third wave is lingering in the minds of many and I only good hope that business, profession and livelihood would not unsettle.

I wish all the members a very Happy Independence Day. The country saw a spectacular performance from the India contingent, Tokyo Olympics 2021 has too much to cheer for us as a nation and it is nice that India as a country participated in many events resulting in some extra ordinary finishes and few near misses. I hope that in coming years, we maintain the dominant posture even in medal ranking.

News Roundup

Direct Tax

  1. Introduction of the Taxation Laws (Amendment) Bill 2021 in the Lok Sabha seeking to remove the retrospective application of explanation 3A to Section 9(1)(i).
  2. The CBDT extended the due dates for filing of various forms electronically vide Circular No. 15/2021.
  3. Intermediate extensions for filing of Form 15CA/15CB due to the technical glitches that still plague the new income tax portal.
  4. Notification of Rule 8AC with respect to computation of short-term capital gains and written down value of block of assets, where goodwill is a part of such block and depreciation has been obtained.
  5. The extension of the timeline to process refunds for non-scrutiny cases to 30 September 2021, for AY 2017-18.
  6. Apart from the above, KSCAA had made a representation to the Ministry of Finance seeking to extend the transfer pricing assessment timelines that were falling due by 31 July 2021.

Indirect Tax

Covid and GST have had inversely proportional relationship, this was clearly visible in the month of July, 2021 where the Gross GST Collections reached 1.16 lakh crores and Covid cases were only 10% of the peak cases. Let us ensure that we maintain Covid Complaint and GST Compliant behaviour. There has been double digit growth in terms of number of e-way bills being raised which only points out to the fact that the economy is on the growth trajectory. Not to forget, the latest notifications issued has made effective the Budget Amendments relating to GST Annual returns and GST Audits, it is no longer required for a CA/CMA to sign, this may lead to more litigation than ease of business.

Corporate Law

MCA, in continuation of its General Circular No. 10/2020 dated March 23, 2020, has clarified that spending of CSR funds for COVID-19 vaccination for persons other than the employees and their families, is an eligible CSR activity under item no. (i) of Schedule VII of the Companies Act, 2013 relating to promotion of health care including preventive health care and item no. (xii) of the aforesaid Schedule, relating to disaster management.

The Rajya Sabha cleared the ‘Limited Liability Partnership Amendment Bill’ that aims to accelerate the ‘Ease Of Doing Business’ campaign of the government and brings regulations for this segment at par with other large companies. The new amended legislation has decriminalised 12 offences for LLPs, and three sections of earlier laws have been omitted.

Further, to support growth of the LLP a new definition of small LLP has been introduced that has raised individual or partner contribution levels from present Rs 25 lakh to Rs 5 crore and turnover limit from Rs 40 lakh to Rs 50 crore.

Conclusion

I read somewhere what Aesop wrote “Gentle persuasion where force fails”, the logic of persuasion is what Aristotle determined that it comprises a combination of three appeals: logos, pathos, and ethos. This he wrote 2,000 years ago to mean, logos to mean a logical appeal to reason, Pathos is emotional appeal and persuasion cannot occur in the absence of emotion and Ethos to mean the part of a speech or presentation when your audience gains some insight into your credibility. With logos and pathos and missing ethos, we fail to persuade the point which we tend to implore at a larger level. The fraternity must retain the ethos to main the dominant and credible position.

The current theme conceived the idea of evolve empower and excel, we hope that the engagement with members have lead them in those lines which we perceive to have succeeded in out humblest attempt. I must thank all who held, corrected, guided and mentored me in my journey as a president so as to get the best out of me. I’m confident that my successors in the committee would engage you all in equally meaningful fashion and scale this Association to higher level.

I thank my fellow members in the Executive Committee, mentors, past presidents and all members once again for your love, affection and respect and for giving me the opportunity to serve you to the best of my ability.

Stay Safe and Happy reading!

Yours Sincerely,

CA. Kumar S Jigajinni,

President