President’s Message | December 2022

Dear Professional Friends,

Let me wish you all members a very happy new year 2023 and merry Christmas.

The digital world is progressing to continue, and the Reserve Bank of India launched the digital rupee on a pilot basis and will be offered by public and private banks in a few major cities initially, which can be used for both person-to-person and person-to-merchant transactions. The digital rupee is recognised as legal tender by the RBI, and thus must be accepted by everyone in the country as a medium of exchange. The concept is interesting to imagine and progressively futuristic. We will have to wait and watch the outcome of such an initiative.

The growth story of India continues to move positively. Morgan Stanley mentions in its outlook report that “we expect domestic demand to remain in the driver’s seat for growth and reports that the domestic demand-oriented economies like India have been insulated from the weaker external demand conditions”.

KSCAA conducted its Kreeda Habba – Sports and Cultural Meet 2022 in a grand way. Our interest was to include maximum number of participants from CA members, especially I welcome more women members in the participation of such events in subsequent events. The cricket which was conducted on 4th Dec 2022 was intense like every year and participants from Bellary, Udupi, Kundapura, Bagalkote and Kalburgi participated. The fun was not restricted only to members who are very athletic in their age, but box cricket was reserved only to members with more than 40 years. It was fun to watch our senior members play, enjoy, and participate in the event. We had KSCAA ‘El-Pasio’, an event for walking, the event was open from 14 days, and it was surprising to know that total distance covered by total 120+ participants was more than 2,600 km and two members who crossed 250 km won the title. The badminton which was separately conducted, was intensely participated, and saw a true display of sportsmanship. The fun and frolic along with Kannada Rajyotsva continued on 11th Dec 2022 was presided by the chief Guest Ganakalabushana Dr. Vid. R. K Padmanabha who added separate fervor to the event. Many family members and our CA members enjoyed the event, participated & won many prizes in the event.

True to our current year theme, create and Compliment, the program on ‘Intensive training program on appeals before ITAT’ which has mentorship, live classes, preparatory presentation by participants on live cases and grand presentation of participants on 21st Jan 2023 at National Law school with real sitting ITAT members would provide hands on experience for members to start a new area of practice and hone the skill for existing ITAT practitioners.

We are planning to conduct our flagship event, the 35th KSCAA Annual conference on 17th and 18th of March 2023. We are working to bring some of the nation’s best speakers from various forum and expose the members to a new possibility. The topic we intend to choose would also be mixture of traditional areas and non-traditional areas which are upcoming for future practicing CA’s.

Members would be aware that during the last EGM of KSCAA, the proposal to increase in membership has been passed and the same increased fee would be soon applicable for lifetime membership of KSCAA. If you find any of your friends who are yet to become members, please pass on such message and inform them to become members of KSCAA and avail the advantage of lower membership fees.

Your association has represented on the delay in processing of applications filed u/s 119(2)(b) of the Income-tax Act, 1961 and recommended introducing online (faceless) measures to clear the same as well as process various other approvals/applications under Act.

I request members to exercise caution in submission of GSTR 9 and 9C and uphold the spirit and law of GST, the revenue of GST is also rising, and contribution of our fraternity is immense in collection process in GST.

As a part of complementing our Practicing members, the association has concluded an agreement with one of the health subscriptions companies to provide reasonable and attractive Healthcare packages to themselves, partners, articles, employees, and their families. The whole idea currently is to provide a tech-based login and make a monthly subscription to our members with options for members for subscribing themselves. We will be coming back soon with an update on these processes.

My Immediate Past President previously had written about Drama Triangle. The premise of the Drama Triangle is that with every change we turn out to act like a victim, one insidious ‘game’ commonly played in the profession – albeit unconsciously – is The Drama Triangle, which has Victim, Rescuer and Prosecutor. The trick is to come out of the Drama Triangle and manage the situation intelligently is changing the ingrained thinking patterns either by changing and adapting or replacing them. You can simply refuse to be either superior or inferior – doing so breaks the triangle. Once you stop the game, the drama stops too. You can stop acting as ‘poor me’, ignoring your own needs, giving in to people even when it’s not a good idea, or always taking the blame. To stop being a victim you need to accept the relationship with the other person, face the fact that you’re the one who will need to change. Rescuers are natural caretakers and it’s a hard habit to break since it involves heavy emotions like guilt and obligation. Living beyond the Drama Triangle roles is about managing your own boundaries and having a strong sense of your own agency and value. This would enable you to work and come out of the Drama triangle and solve many issues which are daily face in the profession.

News Roundup

MCA Updates

The Ministry of Corporate Affairs vide its Notification dated 21st November 2022 has introduced the Companies (Registered Valuers and Valuation) Amendment Rules, 2022 to amend the Companies (Registered Valuers and Valuation) Rules, 2017.

The Notification issued by the MCA seeks to improve the rules governing entities performing the valuation of corporate assets in order to enhance the ease of doing business and ensure greater regulatory oversight. The new Rules provide that a partnership entity or company shall be a member of only one registered valuer’s organisation and such restriction will help in having an effective disciplinary mechanism. The new amendments are expected to strengthen the valuation practices in the country.

Indirect Taxes

GST collection for November stands at Rs 1,45,867 crore surges 11% YoY. 30th November was the last opportunity to make use of the re-opened facility to file Transitional returns consequent to the Honorable Supreme Court Decision on M/s. Filco Trade Center Pvt Ltd. Both State and Central GST Commissioners have issued administrative circulars regarding carrying out of verification of filed returns before allowing transitional credit to the filers.

A circular has been issued stating that the new formulae for computing inverted duty structure would be effective for refund applications filed after 18.07.2022 and not for the ones before. This could possibly be litigated, and the amendment was more corrective in nature, consequent to the observation by the Supreme Court in the M/s.V K C Footsteps case.

GSTR 9/9C due date for FY 2021-22 is 31.12.2022. HSN summary table is made mandatory, which was initially not required to be filled in. Few relaxations in filling up, which were earlier available are continued.

Let me pray that the new year be more prosperous, filled with happiness and good health!

Happy Reading!

Yours’ faithfully,

CA. Pramod Srihari