President's Desk

President’s Message | January 2020

16/01/2020 Comments Off on President’s Message | January 2020

Dear Professional friends,

My wishes to members for Sankranti and Republic day!

Republic day signifies the day on which Constitution of India was adopted, which remain as sacrosanct as our forefathers wanted it to be, even to this day. As I conveyed in my President message in August that Independence is not the physical freedom to whatever one wishes to do but the freedom of thought and such thought is not an absolute freedom but with some regulation which all solemnly engaged to observe. And such resolve was observed on this Republic day.  Be it Kesavananda Bharati vs State of Kerala or in the case of Indira Nehru Gandhi vs Raj Narain, or in many other cases the sanctity was tested and upheld within the framework.

ICAI has decided to revise the Code of Ethics applicable to the profession with effect from 1st April, 2020 after a decade when it was last revised. Part A contains provisions of the International Ethics Standards Board for Accountants (IESBA) Code of Ethics 2005 as suitably incorporated after modification, and Part B representing the domestic provisions of India governing the Chartered Accountants’ Act, 1949. This would align itself to IESBA Code of Ethics 2005,

The work related to Annual Conference is in full swing and the topics chosen have been carefully cherry picked in the background of its relevance today and tomorrow. The name ‘Anavarata’ was an apt choice for complexly placed web in the fraternity, which needs forethought of leaders and speakers who would guide us to reflect on means and depths while facing the challenge.

News Roundup

Goods and Service Tax

In order to curb tax evasion, the concept of e-Invoicing has been introduced under GST to be implemented in phased manner. Various portals have been set live for use of e-Invoicing function by from 1st January 2020 for voluntary adoption. However from 1st April 2020, it is a mandatory requirement to generate invoices through e-Invoicing portal by taxpayers with aggregate turnover in a financial year exceeds Rs. 100 Cores.

Late filing fees in respect of all pending GSTR1 for the period July, 2017 to November, 2019, will be waived off, if the forms are filed by 17th January 2020.

Following key decisions were taken at 38th GST council meeting held on 18th December 2019

  • The last date for filing GSTR-9 and GSTR-9C for 2017-18 is further extended from 31st December 2019 to 31st January 2020
  • The restriction on availing ITC in respect of invoices/debit notes not reflected in GSTR-2A is further reduced from existing 20% to 10% of total invoices reflected in GSTR-2A

Corporate and Business Law

On 3rd January 2020, Ministry of Corporate Affairs issued a notification amending the Companies (Appointment and Remuneration of Managerial Personnel) Rules which are effective from April 1st 2020. Prior to this amendment, the Rule 8A of the Rules provided that all the companies not covered under Rule 8[1] and having a paid-up share capital of Rs. 5 Crore or more shall have a whole-time company secretary. The amendment has substituted the rule by providing that every private company which has a paid-up share capital of Rs. 10 Crore or more shall have a whole-time company secretary.

Also, pursuant to section 204 read with Rule 9, every listed company and public companies having a paid-up share capital of Rs. 50 crore or more, or having a turnover of Rs. 250 crore or more shall annex a Secretarial Audit Report, given by a Practicing Company Secretary, with its Board Report. Post amendment, every company having outstanding loans or borrowings from banks or public financial institutions of Rs. 100 crore or more are also required to annex the Secretarial Audit report.

Further, Every listed company and every other public company having a paid-up share capital of Rs. 10 crore or more shall have whole-time key managerial personnel(which includes a company secretary).

Direct Tax

  • CBDT has notified:
    • revised FORM NO. 10DA (Report under section 80JJAA- Deduction in respect of employment of new employees, of the Income-tax Act, 1961).
    • 31st Jan, 2020 as the last date for payment of pending amount under Income Declaration Scheme (IDS) 2016
    • Government designates special court under Black money law.
  • Annuities payable to NRI (Non Resident Indian)/ OCI (Overseas citizen of India) are subject to TDS at rates applicable as per the DTAA (Double Taxation Avoidance Agreements) of the country where the annuitant resides.

Conclusion

Decision is outcome of the thought process of an individual and success of each of them depends on cognitive ability, perception, history, creativity and many other factors. The Six thinking hat theory by Edward de Bono explains six various thought process which every independent person contemplates before arriving at his decision. For example, an optimistic overseas the downfall and pessimistic misses an opportunity. The theory explains the conscious efforts before making a rational thought, this theory also helps a leader in getting the perception of his team before concluding the decision.

My Wishes to you all for a great learning and enriching experience.

Yours Sincerely,

 

CA. Chandrashekara Shetty,

President