President's Desk 

President’s Message | June 2019

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Dear Professional Friends,

The new decisive mandate of the people during 2019 election has given one more term for this government to implement changes in full swing. At the outset, I congratulate our new PM Narendra Modi for his resounding victory and assuming the office for second consequent time. We also place on record our best wishes to Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman and Minister of Commerce, Shri. Piyush Goyal on assuming their office. The high labour intensive industries like automobile are silencing, liquidy concerns are creeping – this provides little time for government to act before slowdown hits the market.

Budget is scheduled to be presented on 5th of Jul 2019 and ‘Halwa Ceremony’, which marks the start of final preparation to budget was on 22nd of Jun 2019. This ceremony marks the lock-in of all officials involved in making of the budget and are not allowed to communicate with outside world, not even their family. On the representations front, we have made pre-budget memorandum to government and expressed the concerns of tax payers by providing rational solutions wherever possible.

 

New Roundup

In Corporate law – One of the major compliances to be undertaken under the Companies Act, 2013 in the month of June is filing of form DPT-3. DPT-3 is a return of Deposits or particulars of transaction not considered as deposit or both which is to be filed by every company, other than Government Company. The purpose of filing DPT-3 is to provide the information to Registrar of Company about the loan/money received by the Company.

 

This is an one time return disclosing the details of outstanding money and loan received by a company but not considered as deposits in terms of rule 2(1)(c) of the Companies (Acceptance of Deposits) Rules, 2014.

 

There were various representations submitted to the MCA to extend the due date for filing form DPT-3 considering the clashing of due date with GSTR-9 and GSTR-9C with DPT-3. Also, there were suggestions to include the information required under DPT-3 in the Annual return itself in order to reduce the compliance burden on the companies and the professionals. However, considering the extension of due dates of GSTR-9 and GSTR-9C it is unlikely that there might be any extension for filing form DPT-3.

 

GST also has lot of updates for the month and some of the important news wrap are–

  • Decision for reduction of rate on electric vehicle (EV) is given to Fitment committee – decision is expected in next council meeting. Current rate on EV is 12% and proposal is to reduce it to 5%.
  • Anti-profiteering mechanism which was to end on 30.06.2019 has been extended for another 2 years till 2021.
  • If Profiteered amount is not deposited as per the order of the authority within 30 days then supplier will have to pay Penalty of 10% on it.
  • Annual Return (GSTR 9 / 9A) and Audit (GSTR 9C) has been extended from 30.06.2019 to 31.08.2019 Registration process simplified by using Aadhar back bone.
  • Generation of invoices on Government portal given in-principle approval, once implemented, this invoice will be treated as E-way bill as well. E-ticketing for multiplexes approved.

Upcoming programs and other updates

KSCAA is organizing a program on ‘GST Annual Return & Audit’ on 26th of June 2019 at Bagalkot.

KSCAA has lost the case filed against the government order which granted permission to audit the co-operatives in Karnataka to Cost Accountants, in front of divisional bench of Hon. Karnataka High Court. Considering the larger ramification on the profession and its domino impact on other areas of practice, KSCAA is contemplating to persue the case legally in Supreme Court and uses this platform to appeal members to contribute to the KSCAA Legal Fund.

KSCAA strives to provide quality in everything it does, it has sustained to uphold the quality inspite of its limited resources. I wish to conclude my current month message with what Steve Jobs said

“Be a yardstick of quality. Some people aren’t used to an environment where excellence is expected.” It is this excellence and quality which has got KSCAA all its credit – its time to manure  more quality for superior harvest for tomorrow’s dream.

 

Sincerely,

 

Raghavendra Shetty

President