President’s Message | October 2021

Dear Professional friends,

Let me wish you all a very Happy Dussera and wishes for a joyful celebration of festivity. The festival signifies the victory of good over evil. It was the day when Goddess Chamundeshwari killed the demon Mahishasura. Nadahabba, festivities began with the Vijayanagar kings as early as the 15th Century. The festival played a historical role in the 14th-century Vijayanagara Empire, where it was called Mahanavami and the festivities are shown in the relief artwork of the outer wall of the Hazara Rama temple of Hampi.

KSCAA successfully conducted the plantation of saplings in its KIADB plot at Harohalli. It was immensely satisfying event to secure the site for which our past presidents toiled hard to secure.

With restriction on Pandemic opening, the Global rating agency Moody’s Investors Service changed the rating outlook of Indian economy to “stable” from “negative”, as the downside risks from negative feedback between the real economy and financial system are receding. However rising inflation and faster pace of vaccination are still determinant to the India’s economic growth story in coming days.

Recent issue on NFRA has raised scathing concerns on the sudden change of mind in the regulators, it is also the right time to consciously look for a national level independent CA forum to deliberate on topics which can have lasting pains in profession. Last date for submission to respond to NFRA Consultation Paper on Statutory Audit and Auditing Standards for Micro, Small and Medium Companies is 10th Nov 2021. NFRA has invited comments on 4 specific questions listed in Section 4 of the Consultation Paper, request members to send in their response to [email protected]

If you have an idea which benefits the members at large, please mail the same to [email protected] We would be happy to peruse the same.

News Roundup

Direct Tax

Judicial developments:

  •  SC – Date of order and not its receipt, should be considered for limitation u/s 263.
  • Bombay HC: Error of issuing reassessment notice in name of entity which had ceased to exist can’t be corrected u/s 292B:
  • HC of Delhi  & Bombay HC quashed faceless assessment order as show-cause-notice cum draft assessment order wasn’t served on assessee

Executive developments:

  • Modification in Faceless Appeal Scheme, 2020 (FAS): In a matter before the Supreme Court, Additional Solicitor General submitted that CBDT is having a second look on FAS and sought a period of three months as it may require change of law
  • CBDT prescribes conditions to claim relief on offshore indirect transfer of Indian Assets by issue of draft rules on 28-08-2021. The Board has prescribed specified conditions to claim the above relief. After examining the stakeholder comments on the draft rules, the CBDT has notified the final rules vide Notification No. GSR 713(E), dated 01-10-2021.
  • CBDT further extends time limit to process refund claimed ITRs filed up to AY 2017-18 to 30-11-2021
  • CBDT extends validity of TP Safe Harbour rules till Assessment Year 2021-22

Indirect Tax

On the Indirect tax front, September has been a very eventful month, the first physical GST Council meeting since Covid-19 took place and many important decisions have been taken up. On the tax collection front too, the gross collections has been Rs.1.17 lakh crores signifying that the trade is limping back to normalcy. Many clarifications have come out and multiple rate change notifications effective from 01st October, 2021 has been issued. In order to ensure it’s members are kept abrest with the latest happenings in the Indirect front, KSCAA has planned various activities and one such activity is to update the members on recent changes on real time basis by sharing with them 1-2 pager update through KSCAA’s social media platforms. I sincerely hope this helps professional brethren.

Corporate and Allied Laws

Extension of time for holding Annual General Meeting

  •  The Central Government in the wake of difficulties faced by companies due to Covid-19 and consequent lockdowns, extends the due date for holding of Annual General Meeting for the Financial Year ended 31.03.2021 for a period of two months beyond the due date by which companies are required to conduct their AGMs for the Financial Year 2020-21 ended on 31.03.2021 in terms of third proviso to sub-section (1) of section 96 of the Companies Act, 2013.

Extension of last date of filing of Cost Audit Report

  •  MCA vide its General Circular No. 15/2021 dated 27.09.2021 extends the last date of filing of Cost Audit Report. Accordingly, in case of a company which has got extension for holding Annual General Meeting under section 96(1) of the Companies Act, 2013 the e-form CRA-4 may be filed within the timeline provided under the proviso to rule 6(6) of the Companies (Cost Records and Audit) Rules, 2014.

Time limit of generating UDIN from 15 days to 60 days

  •  The firms in order to establish policies and procedures for the timely completion of assembly of audit files are required to follow Standards on Quality Control (SQC 1) on retention period of Engagement Documentation (Working Papers). In this regard, ICAI with an aim to align the time limit for generating UDIN with the Standards on Auditing (SA) and Standard on Quality Control (SQC) has decided that the time limit of generating UDIN would be 60 days from the date of the signing of certificates/reports/document instead of 15 days henceforth.

Conclusion

As Mahtma Gandhi said, ‘Live as if you were to die tomorrow learn as if you were to live forever meaning’ – learning urges people to acquire knowledge, this is the greatest treasure one can posses. Learning is not something you get bored of, rather it is something you take in. Let us continue to learn, share and enjoy the journey.

 

Happy Reading !

 

Yours faithfully,

CA. Chandan Kumar Hegde A

President