President’s Message | July 2021

Dear Professional Friends,

The whole of India, especially the state of Karnataka has opened and loosened the restriction placed due to COVID and people are returning to normal. As responsible citizens, let us practice safety norms as it is too early to lower our guard and risk ourselves. KSCAA conducted vaccination drive to its members and we clocked vaccinating 1,100+ of our members’ family and staffs. Vaccination is the only hope, at the end of the tunnel. The shift in mind off late for professionals practicing tax is that of poor site which is thrust upon the professionals, the near memory of GST and MCA sites, gets them to a feel of ‘dillydallying’. The hope is that the new site is brought to better the experience and we presume it lives it to expectation.

This year the AGM of the Association is planned to be scheduled in the month of August with prevailing poor condition, this was postponed by a month from July to August. The current issue also has the annual report which wraps the activity and performance of the year. This year we have also brought certain resolution to the attention of our members some impending issues which needs to be passed for betterment of the Association.

News Roundup

Direct Tax

  • The CBDT has extended time limit to furnish manual Form 15CA/CB to 15th August 2021 as glitches maar the new income tax portal
  • Survey operation on the biggest staffing company in Bangalore allegedly unearthed 880 concealments. The focus being claim of deduction under section 80JJAA
  • Notification of rules for the purpose of section 50 and section 48
  • Guidelines issued by the Board by issue of Circular 14/2021 on section 9B read with 45(4) and Circular 13/2021 on 194Q
  • The due date for payment of VSVS settlement amount without interest is extended to 31.8.2021 and with interest between 1.09.2021 and 31.10.2021
  • Extension of various due dates under TOLA read with notification dated 25.06.2021 to 30.09.2021
  • Tax exemption for expenditure on COVID treatment and ex-gratis received on death due to COVID
  • Introduction of functionality for section 206AB and 206CCA
  • Notification of CII for FY 2021-22 @ 317.

Indirect Tax

GST celebrated its 4th year anniversary on 01st July and the last 4 years of GST has been a high octane thrill ride for all tax professionals. The law seems to be taking some more time to settle and I’m sure in the times to come GST shall truly be a “Good and Simple Tax”. Let us as tax professionals keep up the same positive attitude and help our clients to be GST Compliant. I request all my CA brethren to help their clients update their IEC before 31st July on the DGFT portal to avoid the IEC certificate being classified as inactive. It is also the time of the quarter where the assessees are given an option to choose the QRMP scheme or to opt the Normal Monthly return. Let us guide our clients to choose the appropriate option.

Corporate Law

The MCA vide General Circular No 11/2021 has extended the relaxation originally granted vide General Circular No 06/2021 on levy of additional fees in filing of forms (other than CHG Forms) to Companies and LLPs. Accordingly, only normal fees shall be levied upto 31st August, 2021 for forms (other than charge related forms) required to be filed during 1st April 2021 to 31st July 2021.

The MCA vide a notification dated 23rd June 2021, notified the Companies (Accounting Standards) Ruled, 2021 expanding the small and medium firm definition. The new thresholds for the small and medium companies (SMCs) are turnover not exceeding Rs 250 crore (up from Rs 50 crore) and borrowings not more than Rs 50 crore (up from Rs 10 crore). This would enable a wider set of companies to avail of greater flexibility in the accounting standards.

The outlook of the profession is changing and so is that of the association, and that is the cornerstone of any successful individual or organization. The question of adoptability realizes us to think on the sustenance and so would this lead us to think on outlook, the major source of inspiration to watch about outlook is not that of acceptability but that of ability to persevere and stay relevant. With every force of necessary to change of outlook brings in an abnormal vigor to push the engine to change within. This is how an organizations stays with new perceived outlook and KSCAA derives to make a relevant outlook with such inspiring members and EC’s.

Happy Reading!

Yours’ faithfully,

CA. Kumar S Jigajinni