President’s Message | Feb 2019

Dear Professional friends,

I am happy to invite you to our 31st KSCAA Annual Conference, to be held on 15th and 16th of March 2019. The theme for the Annual Conference is ‘Ekata – together we can’. KSCAA strongly believes “Growth is never by mere chance; it is the result of forces working together”. In this earnest, at this hour, we feel the immense need to get our members to cultivate the bonding inter se and take it to the next level by working coherently towards paradigm success. This can be achieved only with unity, belongingness, empathy, sharing of knowledge, collaboration, networking for win-win and this KSCAA Annual Conference stands and intends to ignite participants on the path.

I congratulate our incoming ICAI President and Vice president, CA. Prafulla Chhajed and CA. Atul Gupta for being elected for the term 2019-20. I’m sure, in the times of dynamic challenges the able leadership will lead the ICAI to new heights.

News Roundup

ICAI has made it mandatory to issue certificates and reports with UDIN. UDIN would plug in the loop of fake certificates issued by non-CA’s, misrepresenting and misleading the stake holders as CA.  This was a month with many changes in GST, method of utilising the ITC is tweaked by allowing the utilization of SGST for IGST liability unless credit of is CGST is totally utilized. Government has now allowed multiple registration within the same state for a person irrespective of business vertical. New provision has been inserted so as to allow ITC on activities mentioned in Schedule III (other than sale of land and subject to clause (b) of paragraph 5 of Schedule II, sale of building) by removing it from the ambit of exempt supplies. Ministry of Corporate Affairs issued a recent notification dated 22nd January, 2019in continuation of notification issued by Ministry of Micro, Small and Medium Enterprises dated 2nd November, 2018 for filing of half yearly return MSME I by specified companies whose payment cycle, while dealing with MSMEs, exceeds 45 days from the date of acceptance or the date of deemed acceptance.  The initial reporting of all outstanding dues is to be done within 30 days from the date of publication of this notification i.e., by 21st February, 2019. For the purpose of initial reporting, specified companies are required to report the dues outstanding to MSMEs for a period exceeding 45 days as on the date of this Notification as on 22nd January, 2019.

With elections around the corner, the interim budget throws some of the populist schemes to the citizens, more specifically to the middle-class earning citizens. The Interim budget 2019 proposes to exempt Individual tax payers upto income of Rs. 5 lakh by a tax rebate. Presenting its budget, Interim finance minister Mr. Piyush Goyal said “India’s growth story is poised to become 5 trillion economy, we aspire to become 10 trillion economy”. With this number, it benchmarks India as one of the largest growing economy second to China and the challenges in the growth is also magnanimous and dynamic as it can be. Fiscal deficit has been pegged down to 3.4% and CAD (Current account deficit) likely to be 2.5% of the GDP and inflation was 2.1% in the month of Dec 2018 and is a job ‘commendable’.

The direct tax collection has raised to whooping Rs. 12 lakh crores from its halfway mark of Rs. 6.38 Lakh crores in 2013-14.  Income tax return have practically turned electronic from its manual return with more than 99% opting to file through e-filing and in assurance to ease of doing business, around 99.54% of the return have been accepted with any call for scrutiny. Further, the government laid down to convert almost all the scrutiny and verification to electronic by an anonymized tax system without intervention of any tax officials. GST collection for the month of Jan 2019 crossed more than one lakh crore.

Representations

KSCAA has made representation to the Hon’ble Minister of Urban Development & Housing, Mr. U. T. Khader, impressing the Urban Area Development Authorities to adopt the Double Entry/ Accrual System of Accounting; Tax Audit under Income Tax Act along with filing of Income Tax returns and applicability of GST Audit. We have also showcased the benefit and the regulatory mandate u/s 68C (1) of the Karnataka Town and Country Planning Act, 1961 in clear terms to the authorities and are awaiting a favorable outcome.  

I personally appeal to the members to bring opportunities alike the one above to KSCAA, which we as an association can pursue the matter for favorable outcome and benefit our fraternity.

Upcoming Events and programs

We are organizing workshop on the topic ‘Practical approach – NCLT procedures’ on Saturday 2nd March 2019 at VVN Trust, Basavangudi, Bengaluru. We are also organizing workshop on the topic ‘RERA’ on Wednesday 20th February 2019 at Belagavi.

I earnestly request members to actively participate in our programs and make use of it.

For registrations, please visit www.kscaa.com.

As Vincent Van Gogh said “Great things are done by a series of small things brought together”, we at KSCAA are making an attempt to bring along those small steps with representation and our conference is also chosen on the concept of ‘Ekata – together we can’, signifying that our opportunities are directly proportional to the collaboration and cooperation we extend to each other in this journey of fraternity. 

Sincerely,

CA. Raghavendra Shetty

President

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