President’s Message | March 2019
Dear Professional friends,
At the onset, I wish to express my happiness and gratification before you all for making our 31st KSCAA Annual Conference ‘Ekata’ a grand success through your active participation and support. An event of this magnitude typically takes about three month of toil by the office bearers, the Executive Committee and members of Sub Committee to flag off. And there is a very thin line to differentiate and bring through success, thereby margin for error is rather less. A lot of midnight oil is burnt literally and metaphorically to put forth such an event. Time and again, we are able to succeed only due to the Team KSCAA and great support and affinity extended by our members and well-wishers. I must acknowledge and say this has been really a monumental and instrumental factor for success of this annual event.
My gratitude list and heart goes to our Past Presidents, Past Secretaries, well-wishers, Executive Committee members, Sub Committee members, District Associations and various Branches of ICAI, resource persons for their yeomen services, sponsors, publishers and other stakeholders without whose collective support none of this would have been possible. I would like to harp upon the critical element of belongingness and patronage which is the essential ingredient for long standing association to stand vibrant in the changing times. And, we are really strong on this Element!
News Roundup
The GSTN (Goods and Services Tax Network) has enabled an option of ‘Annual Return Tab’ for filing Annual GST Return. The option for the filing of GSTR-9 (annual return) and GSTR-9A (annual return for composition taxpayers) has been recently added to the GSTN portal along with detailed “how-to” guide for return filing, terms and FAQs. So, registered taxpayers, who are eligible to file the annual return form, i.e., both GSTR 9 and GSTR-9A, can do so by visiting the government website on the before the due date for annual returns.
The government has made buying homes easier by slashing the Goods and Services Tax (GST) tax on under-construction properties. Rates have been cut from 8% to 1% for affordable homes and from 12% to 5% for regular units. Moreover, the size of what constitutes an affordable home has too been revised. A 60 sq. mtrs unit in a metro and 90 sq. mtrs home in a non-metro, valued at up to Rs.45 lakh, will now fall under affordable housing. The government, however, has also eliminated input tax credit (ITC) benefit to builders, which the builders were required to pass on to buyers. Elimination of ITC could impact the base prices of properties.
UDIN is an initiative taken by ICAI to curb misrepresentation. Some mischievous persons posing as Chartered Accountants forge signatures on documents to mislead regulators and tax authorities. With the use of UDIN, Banks, RBI, SEBI, Income Tax Department etc. can check the validity and authenticity of the documents issued by Chartered Accountants. ICAI mandated the use of UDIN whereby all the practicing Chartered Accountants are required to generate UDIN for all Certificates issued with effect from 1st February 2019. As part of Phase II of UDIN initiative, the ICAI has made it mandatory for all GST & Tax audit Reports issued on or after 1st April 2019. Further, ICAI has clarified that UDIN is also applicable for Bank Audits too. Therefore, members are requested to adhere to the same while conducting Bank Audits.
As the keepers of financial discipline in the country, this situation should worry us all the more. Given our training, exposure and skills, we can play a crucial role in reversing rising trend of NPAs and vigilantly keeping our banking system healthy. By lending credibility to their financial statements, audits and auditors have an extremely important role to play in building a resilient banking industry. As such, the exercise of Bank Branch Audit assumes paramount importance for the banking industry, the banking regulator, our members, as well as the nation as a whole.
Let’s conduct these audits in the most professional manner keeping a broader national vision in mind. You will be aware that to help you to carry out this nationally important assignment in most proficient and ‘value add’ manner. Let’s also ensure compliance with relevant Standards on Auditing while carrying out Bank Audit engagement.
With a deep sense of relief and satisfaction, I wish to conclude my message with a thought –
“Coming together is a beginning; keeping together is progress; working together is success”.
Long live Team KSCAA!!
Sincerely,
Raghavendra Shetty
President