President’s Message | June 2021

Dear Professional Friends,

In a unique show of strength and concern, Team KSCAA and the Bangalore Branch of SIRC of ICAI (hereinafter referred to as CAwarriors) organized to join Vaccination Drive for the benefit of members, their staff, and family. Though the idea was conceived a little late, CAwarriors left no stone unturned to ensure wide reach and seamless booking-post booking-vaccination-post vaccination experience. Day 1 (05.05.2021 ) of the Drive @ Fortis La Femme COVAXIN witnessed 370 vaccinations and Day 2 (06.06.2021) @ Cloudnine COVISHIELD had 631 beneficiaries. End of 2 weeks’ tireless and relentless efforts of CAwarriors saw 1001 vaccinated members, 1001 happy faces, 1001 safe members. It was an opportunity for us to walk the talk of placing health first and then work !

While the economic activity is poised to pick up on the backdrop of a 2-month low in fresh COVID cases, we need to continue exercising caution and follow appropriate behavior to avoid Wave 3. If stock markets are to be considered as a barometer of the market sentiments, underlying fundamentals remain strong and disruption caused due to Wave 2 seems to be short-lived.

After this lean period of May and June, we need to gear up for filing/audit season, due dates without few trainees (due to exams), a new IT website, a new MCA website, in short, a new life!

At KSCAA’s activity level, every year the month of June was generally used for dispatch of financials and AGM would have been called for. This year with restriction in public assembly, we feel it apt to postpone the AGM event to a convenient subsequent date. We will let you know the same in the days to come.

News Roundup

Direct Tax

  1. CBDT amends annexure to Forms 26Q, 27EQ & 27Q to incorporate changes related to Finance Act 2020 & 2021
  2. ITAT to launch e-filing portal
  3. New income tax e-filing portal has been launched on 07.05.2021. New features include ITR preparation interactive software, call center for taxpayer assistance;
  4. Limitation time for filing of appeals before CIT(Appeals) stands extended till further orders as ordered by the Hon’ble Supreme Court in suo moto writ petition (civil) no. 3 of 2020 vide order dated 27.04.2021
  5. Insertion of Rule 11UAE to IT Rules dealing with computation of Fair Market Value of Capital Assets for the purposes of section 50B of the Act;
  6. Extension of time limits of certain compliances to provide relief to taxpayers in view of severe pandemic Circular No. 9 Of 2021 [F. No. 225/49/2021-ITA-LI], Dated 20-5-2021
  7. Section 269ST of the Act: Mode of undertaking transactions – non-application of said section to specified persons or class of persons providing COVID treatment to patients on receipt of payment in cash during 1-4-2021 to 31-5-2021 on obtaining PAN or Aadhaar.

Indirect Tax

Even COVID has not been able to bring down the GST Collections to below 1 lakh crores as the collections for the month of April has crossed 1 lakh crores, however we need to wait and watch what would be the collections for the month of May as most of the country was under lockdown. We, Chartered Accountants must note that the due dates for filing the monthly returns under GST has not been relaxed, the relaxations have been provided only on the interest and late fee that accompanies with belated filing of the returns and hence must advise clients to ensure the returns are filed on time. GST Council met on 28th May, 2021 and has agreed to implement various business friendly decisions wrt Interest, Late Fees, Exemption to certain goods and services related to treatment of COVID, further the council has also clarified that the annual returns for FY 20-21 shall continue in GSTR-9 and 9C without CA/CMA Certification and has also promised to simply the form. Even in our state, due dates for Annual Payment of Professional Tax have been extended to 30th June, 2021 and limitation period for assessments getting time barred under KVAT Act, 2003 has also been extended, I urge all professionals to utilise this much needed relief.

Company Law

MCA vide a circular dated 20th May 2021 has clarified the following that:

  1. If a company has contributed any amount to ‘PM Cares Fund’ on March 31, 2020 and the said contribution is over and above the minimum amount as prescribed under section 135(5) of the Companies Act, 2013 for the FY 2019-20
  2. the same can be set off against the CSR obligation for FY 2020-21 (only) subject to the

following conditions:

a. The unspent amount, if any, of the previous years, should have been factored;

b. The Chief Financial Officer and Statutory Auditor shall certify that such amount was contributed on March 31, 2020;

c. The details of such contribution shall be disclosed separately in the Annual report on CSR and Board’s Report for the FY 2020-21.

The MCA vide notification dated 7th June 2021, has notified new E-form AGILE-PRO-S. By filing the AGILE PRO-SE-form together with the SPICE incorporation form, companies would be enrolled automatically for GST, EPFO, ESIC, Professional tax registration, Opening of bank account and Shops and Establishment Registration in one go

After a month’ of house arrest, we need to value the freedom of movement when lockdown is eventually lifted. No amount of technological adoption is enough. While we should continue to work from home to the extent possible, venturing out should be limited and in strict adherence to protocols. It is in our hands to stop Wave 3 – Get vaccinated, stay home, and stay safe!!

We wish to express the deepest gratitude to frontline workers, EC members of KSCAA, MC and staff at the Bangalore Branch of SIRC of ICAI, for their selfless services to mankind. Also, wish to thank the beneficiaries for their professional and responsible conduct during the vaccination process.

Happy Reading!

Yours’ faithfully,

CA. Kumar S Jigajinni