President's Desk

President’s Message | December 2019

16/12/2019 Comments Off on President’s Message | December 2019

Dear Professional friends,

Merry Christmas and Happy new year members!

Wishes for the new year is not an indication of plain year spent by us but for the virtues and learning we have acquired during the times of this year. It probably is symbolic to wrap up lot of learning, consciously decide to aspire high and develop the faculty which would be accessory to success. So it is that part of the year which requires us to reveal to ourself the goals met and unmet, to conspire and turn those unmet.

KSCAA is conceptualizing its State Level Conference to be held on 6th and 7th of March 2020 in Bengaluru and is chalking topics and speakers for the event. Members are requested to pass on the suggestion of topics which can be of interest to the profession at large. ICAI in its recent announcement has clarified that members cannot be associated with any form of network other than those approved by ICAI, it is in the members interest to exercise caution and stay away from such network.

ICAI has impleaded in the case of KSCAA, preferring a Special Leave petition in Supreme Court against amendment allowing CWA/CMA to conduct financial audit of Co-Operative Society. Court has taken cognisance and is yet hear the contention and objection in the case.

News Roundup

Goods and Service Tax

Recognizing practical difficulties being faced by professionals, trade and industry in submission of Annual Return (GSTR-9) and Reconciliation Statement (GSTR-9C), the Government has finally simplified these forms to make the process of submission of data in these forms much more simpler and relevant. The new versions of these forms have been released for use. Furthermore, the Government has also decided to extend the due dates of filing these forms for FY 17-18 to 31st December 2019 and FY 18-19 to 31st March 2020.  With these changes and extension of due dates, it can be expected that all GST taxpayers would be able to file their Annual Returns along with Reconciliation Statement for FY 17-18 and 18-19 in time.

Corporate and Business Law

The Company Law Committee, constituted by the Ministry of Corporate Affairs (MCA) vide order dated 18.09.2019, has submitted the first phase report to the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman on 18th November, 2019, proposing amendments in the Companies Act, 2013 for further decriminalising the offences under the said Act and to facilitate ease of doing business and ease of living.

The main recommendations of the Committee with regard to decriminalization of compoundable offences are as under:

  1. Re-categorising 23 offences out of the 66 remaining compoundable offences under the Act, to be dealt with in the in-house adjudication framework wherein these defaults would be subject to a penalty levied by an adjudicating officer.
  2. Omitting, altogether, 7 compoundable offences; limiting punishment for 11 compoundable offences to only fine by removing provision for imprisonment and recommending that 5 offences be dealt under alternative frameworks;
  3. Reducing the quantum of penalties in respect of certain provisions, which were shifted to the in-house adjudication framework through the recently passed Companies (Amendment) Act, 2019;
  4. Retention of status-quo in case of the non-compoundable offences.

Income Tax

Lok Sabha passed Taxation Law Amendment Bill 2019 on the 2nd of December 2019 to give effect to reduction in Corporate Tax.

Recently CBDT has notified that any sum deducted under section 194M shall be paid to the credit of the Central Government within a period of thirty days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QD.

Conclusion

A great German Philosopher, Mr. Immanuel Kant once said “In law a man is guilty when he violates the rights of others. In ethics he is guilty if he only thinks of doing so”. The Word ethics stand at the heart of our profession. And our profession has to its credit, some of the highest order of codified ethical requirement and whilst we may perceive that ethics and law to be the same, general temptation of its meaning is understandable, the Juxtaposition is equally interesting to read and moralise. I request members to dwell on this more and understand the changing requirement of ‘ethics’ and ‘law’.

My Wishes to you all for a great learning and enriching experience.

Yours Sincerely,

CA. Chandrashekara Shetty,

President