President’s Message | February 2021

Dear Professional Friends,

The air has new fresh of hope with things getting back to normal after displacing our normal routine albeit with new rules and perceptions to the world. The sheer hope of getting back to normal is refreshing and soothing. Government of India must be crediting to have driven the words largest systematic Vaccine Drive with ease, the preparedness and the volume of vaccine which was covered initially is unheard off. Even being developing nation, we must also acknowledge the effort of Government of India to support other countries, this speaks volume of humanitarian concerns of this great nation.

The budget has placed relatively high government spending, to lubricate the wheels of growth & spending. The budget has been well balanced to push and keep the domestic demand high, what unwinds to us in terms of inflation and other things are very interesting to wait and watch. It’s been three months and the professionals have been the victim of repeated due dates. I presume members would overcome with high spirits and meet the challenge in time this time as well.

KSCAA’s 33rd Annual Conference is to be held on 5th and 6th of March 2021. Considering the pandemic situation, the conference is to be held virtually with national and international best speakers. The wisdom of the technical committee was to move through the idea of broad based learning than on any specific technical subjects, applying the same logic all the topics are broadly categorized and registration has started for the conference. The conference is themed “Parivartan”, symbolic to mean the change which we wish the professional fraternity to bring in spite of sea changes.

KSCAA was allotted a KIADB land at Harohalli, the registration of lease cum sale deed took place on 7th of January 2021 at Sub-registrar office, Kanakapura. The land need to be put to use within 3 years from the date of lease cum sale deed and association is looking at alternatives and options to monetize the asset. The recently concluded results of ICAI are encouraging for an association to see and young CA’s coming out in flying colours and I personally wish all of them a bright professionally satisfying life ahead.

News Roundup

Direct Tax

The Budget 2021 witnessed about 100 changes to the Income-tax Act, 1961. Ease of doing is sought to be achieved through simplification in the income tax litigation cycle. Almost all provisions relating to litigation has been touched upon including Vivad se Vishwas Scheme (due date extended to 28.02.2021), assessments, reassessments, search, AAR, Settlement Commission, proposed Dispute Resolution body and reduction of various timelines thereunder.

While the professionals are adopting to the norm of the day being faceless assessment and appeals, implementation of faceless penalty scheme and proposed faceless ITAT will be keenly watched. The radical digital adoption / push appears to be the reason behind most of the proposals in the Finance Bill.

Indirect Tax

Changes and Amendments were the buzz words this month as Budget was presented on 1st February, 2021. Lot of changes has been proposed in the budget, some good, some not so good, however as CA’s who are partners in nation building, we must help our clients to implement the changes in their business, the proposal to provide for a sunset clause for exemptions under customs law is a welcome move, GST Collections on a month-on-month basis is pointing towards a healthy direction. Agriculture and Industrial Development Cess has been introduced with the objective of improving the agriculture sector. Amendments have been proposed relating to E-Way Bills, supply, input tax credits. Hope these proposals serve the intended purposes.

Corporate Law

Companies that have availed the benefits under the Company Fresh Start Scheme (CFSS) are required to file Form CFSS – 2020, the said form is an application seeking immunity in relation to belated documents filed. The application is to be filed within 6 months from the closure of the CFSS. The form has been made available for filing as e-Form w.e.f. January 16, 2021.

MCA has initiated the decriminalization of the LLP Act, 2008 with 12 offences proposed to be moved to in-house adjudication and one offence recommended to be removed. The report also suggests the following further changes:

Issuance of secured NCDs to bodies corporate and trusts regulated by SEBI and RBI.

Introduction of the concept of Small LLPs

Reduced or differential additional fees under Section 69;

Insertion of a new explanation to Section 62 by which the LLPs will be restricted from merging with the companies.

MCA had provided relaxation in additional fees for filing of e-form AOC-4, AOC-4 (CFS), AOC-4 XBRL and AOC-4 Non-XBRL in respect of the financial year ended 31.03.2020 till 15.02.2021.

Conclusion

The recent debate of budgets curtailing the audit in GST and Income Tax reminds me of a sentence from The Great Gatsby, “Life Starts All Over Again When It Gets Crisp in the Fall”

Happy Reading!

Yours’ faithfully,

CA. Kumar S Jigajinni,

President