Dear Professional friends,
It is never too late to bring in the change that you always want to see around you. Let this New Year be the one that will see you being at the forefront of introducing new ideas and new concepts to make the world a better and safer place. I wish you all Happy New Year 2019!!
KSCAA celebrated its 63 glorious years of existence. It had its humble beginning on 7th December 1957. As a conscious effort of taking the Association across Karnataka, a maiden attempt was made to organize Sports and Talent meet for our members and their families across the State in November 2018, we were overwhelmed by the outpour of participants and good responses. Members participated in various outdoor and indoor events, showcased their hidden talents, and exhibited excellent sportsmanship and camaraderie. We realized, there is no dearth of talent among our members, but there is real dearth of platform to showcase such talents. This kindled a spirit in EC to conceive an event which creates a platform for our members and their families. After lot of brainstorm, why not celebrate foundation day of KSCAA, which lead to birth of ‘KSCAA Habba’. Habba by very nature is an event of celebration, belongingness and companionship. Assimilating this theme forward, we wish to enhance belongingness and companionship among our own members towards this glorious association. Over couple of years, tremendous changes in regulatory environment may it be Demonetization, GST and so on have kept our members too busy and stressed out, KSCAA Habba definitely acted as a stress buster. We hope to continue the trend to future as well.
As you all are aware, the results of elections to the 24th Central Council and 23rd Regional Council of ICAI have already been declared, I congratulate all the elected members and sincerely hope that they will take our dear profession to greater heights. Winning is earning, but losing is learning. Don’t let a win to get to your head or a loss to your heart. At the moment, I take this opportunity to extend my best wishes to all of them.
The GST Council in its 31st meeting held on 22nd December 2018 inter alia has decided to extend the due date of annual return in GSTR 9 and GST Audit and Reconciliation Statement in GSTR 9C up to 30th June 2019 with an option to pay the additional liability and tax. HSN-wise reporting has been relaxed for the inward supply to 10% value or more instead of complete details, while filling these forms. It has also been decided to extend the time limit for claiming the ITC for the FY 2017-18 from 20th October 2018 to 31st March 2019. Late fee has been waived for filing forms GSTR-1, 3B and 4 for the period from July 2017 to September 2018 after 22nd December 2018 but not later than 31st March 2019. Payment through single-tax ledger, rationalisation of interest calculation, and single authority for refund disbursement are key changes that have been approved in this meeting.
The GST Council during its 32nd meeting on 10th January 2019, doubled the threshold exemption limit to Rs.40 Lakhs and raised the threshold limit for availing the composition scheme to Rs.1.50 Crores. The council also increased the threshold exemption limit to Rs.20 lakh for North Eastern states. The compliance burden on composition tax payers are eased further to allow them pay taxes quarterly and file returns annually. Service providers with a turnover up to Rs.50 Lakhs will now be entitled to avail composition scheme with rate of tax pegged at 6%. The move aims to give significant relief to micro, small and medium enterprises. The council also allowed Kerala Government to levy 1% calamity cess on intra-state sales for a period of up to two years. A seven-member group of ministers is formed to comprehensively study on including real estate and lottery under the Goods and Services Tax.
As you are aware that ICAI has implemented an innovative concept ‘UDIN’ – Unique Document Identification Number to secure the certificates and documents attested or certified by practicing Chartered Accountants and to trace the forged or wrong documents prepared by any third person misrepresenting himself as Chartered Accountant. The Council of ICAI has decided to mandate UDIN with effect from 1st February 2019 in a phased manner as against the earlier announced date of 1st January 2019. I request our members to familiarize themselves and get acquainted with this new system soon.
The Committee of Experts formed by the Ministry of Corporate Affairs has suggested the Government to allow the audit firms to practice law and to incorporate necessary amendments to the Advocates Act. According the report submitted by COE, the major hurdle in the growth of Indian audit firms is lack of development of MDPs in India. COE observed, quality auditing requires specialists in many areas like law, valuation, IT systems, actuarial etc., The need for specialization increases with the complexity of the business model of the clients. The Committee opined that fundamental legal reforms would be necessary to facilitate development of MDPs in India and MDPs would be beneficial for Indian Corporates.
On the representations front, we are pleased to inform you all that we have joined hands with a host of premier association IMC Chamber of Commerce & Industry s, BCAS, CAAA, CAAS and LCAS to file a representation on the issues in Income tax relating prosecution launch by department in the backdrop of delay in TDS payments etc. We have elaborated on how it is unfriendly and contrary to the intention of the Government to create a tax payer friendly atmosphere and minimum governance agenda. You can find the content in full elsewhere in this newsletter. We appeal our members to present us with worthy matters and issues for representation going forward too.
Upcoming Events and programs
We are organizing workshop on Issues on Assessment, Demand and Recovery under GST on Thursday 24th January 2019 at KLE Society’s Nijalingappa College Rajajinagar, Bengaluru. I earnestly request members to actively participate in our programs and make use of it.
For registrations, please visit www.kscaa.com.