President's Desk 

President’s Message | December 2020

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Dear Professional Friends,

On the global business front, America’s competition regulator filed an antiTRUST lawsuit against Facebook, alleging that it bought social-media rivals (WhatsApp and Instagram), to suppress competition. This follows a similar sweeping antiTRUST lawsuit against Google, arguing the company struck deals and engaged in other tactics to expand its search and advertising empires. With Apple and Amazon being on the radar of the competition watchdog, market dominance may become a thing of the past.

Back home, similar antiTRUST issues (Farm Bills, Anti-Cow Slaughter Bill, Anti-Conversion Bill, and the feud between Mistry and Tata Sons) have occupied the limelight and seems to be a long-drawn battle. Daily Coronavirus cases in the world’s second-most populous country have stayed below 50,000 for a month, despite a busy festival season. Positive vaccination views, falling Coronavirus cases, and economic revival led to Nifty (breaching 13500 levels) and Sensex (above 46000 levels) making all-time highs. These Indices, considered to be a barometer / representative, bring cheers to otherwise dull 2020.

Representations

Our Association has made representation to the Hon’ble Finance Minister for extension of various time limits under Sections 54 to 54GB of the Income-tax Act, 1961 (the Act). Hoping that the concerned will lend ears to the difficulties faced by the assessees during these pandemic times. We undertake to be proactive in making appropriate representations before the concerned authority to redress the difficulties faced by the members and stakeholders if any. Thank you for placing TRUST and confidence in the Association, with your difficulties and issues.

News Roundup

Direct Tax

On the direct taxes front, while the professionals are busy meeting the Reports and Returns deadline, the Income Tax Department is back in action with a push for Vivad Se Vishwas Scheme (VSVS), Faceless Assessment, and collection of outstanding demand.

Income-tax disputes consume a lot of resources both on the part of the Government as well as Taxpayers. A total of 4,83,000 Income tax cases, involving a tax effect of INR 9.33 trillion were pending. This amount is greater than the one-year revenue of the Government from direct tax. VSVS, which allows the assessee to settle direct tax disputes, is open till 31.12.2020. CBDT has come up with 2 sets of FAQs and relaxed 15 days window to make the payment without an additional amount on receipt of Form 3 under VSVS.

In line with the ongoing initiatives of the Income Tax Department for integrating with other Government agencies and bodies, Income-tax e-filing portal has completed its integration with ICAI for validation of UDIN in the case of Tax Audit Report will help in weeding out fake or incorrect reports not duly authenticated with ICAI.

Indirect Tax

Last week of December is always a fun filled one on account of Christmas and New Year Celebrations. The celebrations can be amplified by ensuring that all the GST Annual Compliances for FY 2018-2019 are completed within the due date of 31.12.2020. The New Year 2021 brings with it, new changes in the GST law and as Chartered Accountants the responsibility lies on us to help our clients be prepared for the same.

  1. a) Online Module for GST Annual Return for FY 2019-2020 is now made available by the Department.
  2. b) E-Invoicing system shall be made compulsory for all business houses with aggregate turnover exceeding Rs.100 Crores.
  3. c) The much-awaited Quarterly Return Monthly Payment Scheme (QRMP) along with Invoice Furnishing Facility (IFF) shall be activated from 01.01.2021.

New changes bring with it, new opportunities and challenges. As Chartered Accountants we must make the best out of opportunities and identify solutions for new challenges. KSCAA is always present to help identify the solutions for new challenges and enable Chartered Accountants to make the best out of the new opportunities.

Corporate Law

MCA vide circular dated 09.11.2020, had extended the LLP Settlement Scheme, 2020 where the Statement of Account and Solvency for the Financial Year 2019-2020 which has been signed beyond the period of six months from the end of financial year but not later than 30.11.2020, shall not be deemed as non-compliance. This circular rectifies the anomaly arising out of the earlier Circulars.

All stakeholders may also note that the Companies Fresh Start Scheme (CFSS), LLP settlement Scheme and the extended time limit for all pending documents to be filed with the MCA and for conducting of Annual General Meeting are due by 31.12.2020.

Conclusion

In a world that is in the grip of public TRUST crisis, our profession is considered to be the most TRUSTed profession and is bestowed with sovereign responsibilities and obligations. This broad crisis of public disTRUST can be mitigated if we discharge our duties, in this compliance calendar month, with utmost Integrity, Honesty, Devotion, and Diligence.

A lovely thing about Christmas is that it’s compulsory like a thunderstorm and we all go through it together. Let’s buckle up and enjoy the ride. Merry Christmas and Happy New Year to all the TRUSTed Members and your family!

TRUST you will enjoy reading this month’s News Bulletin!

Yours’ TRUST worthy,

CA Kumar S Jigajinni,

President