CBDT dividing United India

Modi Sir

Today's notification by CBDT reminded us the British policy of "Divide and Rule".

Today CBDT divided united India into states by not respecting the judgements of three High Courts of extending due dates. It extended due dates only those states where writs were filed, whereas Income Tax being the levy of centre, date should have been extended on PAN INDIA basis.

Are we expected to file writ in every state HIGH COURT for its implementation on PAN INDIA basis?

It really hurts and pains when bureaucracy does not listen to the elected representatives of an autonomous body.

Sir, please interfere and do some thing......

क्या यही हैं अच्छे दिन....अच्छे दिन आ गए पर किसके.......        

                                                                                          

Regards

CA Kasliwal Ambar

Mumbai

Bom HC passed interim order considering ‪‎Gujarat‬ and P&H HC judgement:

Directed ‪CBDT‬ to issue extending date for e-filing of ‪ROI‬ by 31.10.15. Court has not examined any other aspect.This order will not affect any other obligation to be fulfilled under Act.

-CA Kasliwal Ambar

CBDT‬ directed by Bom. HC to issue extending date for e-filing

Betting turnover in Bihar elections is expected to cross Rs 10,000 crore

Bookies in the satta bazzar or the illegal betting market, who accurately predicted a single party majority for BJP in May 2014's national polls, are predicting that state's two political parties the RDJ and JDU may not win more than 50 seats and 80 seats respectively in the 243 seat state assembly. It is the best case scenario of both these political parties, bookies. Odds on Nitish Kumar led JDU winning 80 seats are pegged at 6:1 while Lalu Yadav's RJD winning 50 seats is pegged at 6:1.

"Anti-incumbency is strongly against JDU, while people of Bihar have still not forgotten the poor state of law during RJD's tenure," said a bookie. Betting turnover in Bihar elections is expected to cross Rs 10,000 crore.

The BJP appears to be galloping ahead in Bihar polls like the bulls. Bookies say in the worst case the BJP's seat count may not fall below 85 seats whereas there is no cap on seats on the upside. Bookies will offer only 85 paise on every rupee bet for BJP winning 85 seats. 

Lower the odds, higher are the chances of a win.

A couple of months ago most bets were on a close contest. The bookies gave BJP lead NDA and Nitish Kumar around 110 each. But, the punters now favour a clear majority for the NDA, giving it around 135 seats, JDU 40-42, RJD 33-35 and relegating Congress to single digits.

- CA Kasliwal Ambar

AUDITORS SHOULD NOT AFFIX THEIR DIGITAL SIGNATURE IN ROC RETURNS

Forms for annual filing have been released today. The two forms ie Form 23AC and ACA have been replaced by a single Form AOC-4.

Now every company needs to file its balance sheet in Form AOC-4

Form AOC -4 is required to be certified by any CA CS or ICWA in practice by subscribing to the declaration that the respective professional has been duly engaged for certification of the said form.

As per the provisions of section 144 of the Companies Act 2013 certain services can't be rendered as an auditor, which includes “management services”

Management services means services rendered on behalf of Management, which management itself is oblige to do.

E.g.

Preparation and filling of:
· Income Tax Return
· ROC Return
· Service Tax Return
· VAT Return
· TDS Return
· Excise Return

This can be planned to comply with the provision.

- CA Kasliwal Ambar

CASA Daily News Alert

>> TAR/ITR Extension Case:

Writ Petition filed against non extension of Due date of TAR/ITR filing for cases covered under Tax Audit Provisions in various High Courts (Gujarat, Delhi, Jodhpur, Karnataka, Orrisa, Mumbai and in Punjab & Haryana) - Cases adjourned for Hearing / Cases Listed for Final Hearing later. ICAI Meeting with FM: No Concrete Decision on TAR/ITR Date Extension.

>> CBDT has updated the tax audit utility today by updating utilities for form 3CA CD, form 3CB CD and form 10B. So please take care and in case you are using tax filling software ask your vendor to update software.

>> ICAI: Exposure Draft of Changes in Ind ASs as a consequence of deferment of Ind AS 115, Revenue from Contracts with Customers, for Public Comments issued

>> MCA Updates: New forms (AOC-4, MGT-7, ADT-2, SH-9) will be available from 25-09-2015. Versions of CRA-4 & CHG-4 are likely to be modified w.e.f. 25-09-2015.

>> SEBI has issued circular under Regulation 27(2) of the SEBI(Listing obligations and disclosure requirements) Regulations, 2015 read with regulation 101(2) (Clause 49 of the existing listing agreement), which provides for the format for compliance report on corporate governance to be submitted to the Stock exchanges by the listed entities.

>> Case Study: Bombay High Court held In the case of M/s Nagpur Engineering Co. Pvt. Ltd. vs. CIT. that in order to attract ceiling u/s 40(c), the payment must be a periodical payment. A Lumsum payment or one time payment is not covered under section 40(c) of Income Tax Act

- CA Kasliwal Ambar

Delhi High Court rejected writ for extention of due date for TAR

Delhi High Court rejected writ for extension of due date for TAR; said CAs should have completed audit by 7th July( i.e. date till form notified), time thereafter is sufficient to file TAR (7th July to 30th September) 

Facts:

a) The petitioner claims to be entitled to extension of due date of filing income-tax return (‘ITR’) (i.e., September 30, 2015) due to the delay on the part of the respondents in prescribing the ITR forms. b) It was contended that the said forms were prescribed only vide Notification dated 29th July, 2015 and were made available only with effect from August 7, 2015. The argument of the counsel for the petitioner was that since the Assessment Year 2015-2016 commenced on 1st April, 2015 and the due date for filing the return is 30th September, 2015, so 180 days are to be made available to the assessee to file the return. The Delhi High Court held as under:

1) The period claimed by the petitioner as a matter of right of 180 days for filing the ITR is admittedly not prescribed, neither in the Statute nor in the Rules.

2) Filing of ITR for assesses due date whereof is 180 day sis dependent upon the accounts of the assessee being audited and which audit the counsel for the petitioner admits commences only on the beginning of assessment year. The said audit, in the case of some assesses may be completed in a few days and in case of others may take longer. Thus, the time taken in audit, which is variable, will be determinative of the time available thereafter for filing the ITR. Said audit is not dependent upon the prescription of the income-tax return (‘ITR’)forms.

3) Once the audit is complete the time admittedly available from 29th July, 2015 / 7th August, 2015 to 30th September, 2015 cannot be said to be so small.

4) The Government vide Press Release dated 9th September, 2015 have already clarified that the date of 30th September, 2015 will not be extended and have advised the taxpayers to file the returns accordingly. The time available, after 7th August, 2015 and till 30th September, 2015 is not found to be illogical or unreasonable to enable the assessees to file the ITR.

5) The counsel for CBDT is unable to give the reasons for the forms are not available at the beginning of the assessment year on 1st April of every year and the same thereby causing inconvenience to the practitioners of the subject.

6) There is sufficient time available to the Government, after the Finance Act of the financial year, to finalise the forms and if no change is intended therein, to notify of the same immediately.

7) From the next assessment year Government should at least ensure that the forms which are to be prescribed for their Audit Report and for filing the ITR are available as on 1st April of the assessment year unless there is a valid reason therefore and which should be recorded in writing by the respondents themselves, without waiting for any representations to be made.

-CA Kasliwal Ambar

Cash loan of above Rs. 20,000 taken by builder to meet immediate requirement of business won’t attract penalty

Section 269SS, read with sections 273B and 271D, of the Income-tax Act, 1961 - Deposits - Mode of taking/accepting

Penalty under section 271D could not be levied when assessee sufficiently process that loan was taken in excess of Rs. 20,000 to meet urgent and immediate requirement of Business

[2015] 56 taxmann.com 439 -HIGH COURT OF GUJARAT –CIT v. Shreenathji Corpn

Assessee carries on business of construction of building and in course of such business large amount of labour charges and payments for raw material purchased from unorganized trading sectors and bricks etc. are required to be made after banking hours

If their demand for cash payment was not met they would cancel contract work and refused to complete work and would also prevent other contractors from undertaking work till their dues were settled

It was held that since loan/deposits was taken in excess of Rs. 20,000 to meet urgent and immediate requirements of business, no penalty could be imposed

Circulars and Notifications: Circular Nos. 387 dated 6-7-1984 and 572, dated 3-8-1990

- CA Kasliwal Ambar

Chartered Accountant: Latest Updates You Need To Know - 17th September 2015

1. President ICAI suggested Finance Minister to extend due date of filing of ITR & Tax Audit Report be extended from 30.9.2015 to atleast 31.10.2015 for genuine hardship to the assesses and members of the profession.

2. Individuals can now apply for PAN online with digital signature w.e.f 6.9.2015.

3. Salary and Interest to partner to be allowed as deduction while estimating the profits of the firm where books of accounts are rejected- Inter Continental Constructions (High Court of Andhra Pradesh and Telangana).

4. If the notice u/s 148 of I T Act was not served on the assessee in accordance with law, the re-assessment made is liable to be quashed.[ CIT vs. Chetan Gupta, High Court of Delhi]

5. Now a private company can accept unsecured loans also from a relative of director, with a declaration that such loan is not from borrowings. Notification dated 15.09.2015.

6. Union Cabinet has approved to promulgate the Negotiable Instruments (Amendment) Ordinance 2015 which redefined the jurisdiction clause in the Negotiable Instrument Act.

7. DGFT has notified modification in E-IEC’s as well as the IEC’s issued in physical format from 21st of September, 2015. www.dgft.nic.in.

- CA Kasliwal Ambar

‪MCA‬ Update on Deposit From Relative By ‪Private Limited Company‬

Deposits rules are quickly getting aligned with old 58A exempted rules to private limited company.

Without any upper limit of amount, now a private company can accept unsecured loans apart from director even from a relative (as per definition) of a director of the company with simple declaration saying the relative has not borrowed same from others. The relative need not be a shareholder of the company.

http://www.mca.gov.in/Minis…/…/Amendement_Rules_15092015.pdf

- CA Kasliwal Ambar

Learn CARO, 2015 in just a minute.

Lets Begin!!

We have to learn one line to learn each point of CARO , 2015.

Line is:

"FIL ID Code - SAD GUN"

1. F : Fixed assets

2. I : Inventories

3. L : Loans u/s 189

4. I : internal control system

5. D : Deposited

6. Code : Cost records

7. S : Statutory dues

8. A : Accumulated Losses

9. D : Default of repayment

10. G : Guarantee for Loan

11. U : Usage of Term Loan

12. N : Noticed any fraud and its reporting ?

- CA Kasliwal Ambar

Guidance Note on Audit of Internal Financial Controls Over Financial Reporting

ICAI has issued "Guidance Note on Audit of Internal Financial Controls Over Financial Reporting"

Link for Text of Guidance Note: http://220.227.161.86/39249aasb28733.pdf

Link for Contents of accompanying CD: http://220.227.161.86/39250aasb28733cd.zip

- CA Kasliwal Ambar

GST Update

Companies with an annual turnover up to Rs 25 lakh might be exempted from the proposed national goods and services tax (GST). The Centre and states are likely to settle for this threshold as they finalise the GST laws.

According to finance ministry officials, the draft of these laws is expected to be ready by the end of this month. The Centre and states are working on a mechanism to avoid dual scrutiny of companies by them. "The thinking now is that all legal entities with an annual turnover of up to Rs 25 lakh will be completely exempt. This will be applicable to one TIN (Taxpayer Identification Number)," said a ministry official.

The government is looking to reconvene Parliament's monsoon session to get the Constitutional amendment Bill on GST passed in the Rajya Sabha. Three Bills - on the Centre's GST (CGST), states' GST and Integrated GST -would come up after the Constitutional Bill is cleared. Work on the drafts is on.

States wanted a threshold of Rs 10 lakh to protect their revenue, while the Centre has assured them full compensation for five years. Besides, firms with an annual turnover between Rs 25 lakh and Rs 75 lakh will have an option to pay a flat rate of one per cent or GST rate. If they decide to opt for one per cent rate, firms will not get input credits because of which many, particularly dealers, may choose the GST rate.

The exemption limit from value added tax and service tax across states - except the North-East - is close to Rs 10 lakh turnover. "There will be an impact on revenue but it will depend on how many under the Rs 25 lakh to Rs 75 lakh annual turnover bracket opt for the one per cent rate. If 60-70 per cent opt for it, there will be loss of revenue for states but they will also get compensated by the Centre," said Bipin Sapra, tax partner, EY. From the manufacturing point of view, it was important to keep the exemption limit higher, he added.

While these are likely to be part of the GST laws, a final decision on this is to be taken by the yet-unformed GST Council. This is to be constituted within two months of enacting the Constitution amendment. It would comprise the Union and state finance ministers and will be empowered to take key decisions on GST.

The idea is that entities with a turnover of up to Rs 75 lakh will not attract any checks or audits from either the state or the Centre. The Centre will give states a free run on compliance checks for companies with annual turnover above Rs 75 lakh and up to Rs 1.5 crore. "Here, the Centre will only do online scrutiny. And, if states detect non-compliance with respect to CGST, only the Centre will issue a notice. States cannot issue a notice on our behalf," said an official. However, in case of companies with annual turnover of more than Rs 1.5 crore, there will be concurrent audits by both the state government and the Centre.

"The government is still discussing a mechanism of a risk-based selection so that the checks by Centre and states do not overlap," said the official.

The government on Sunday made a renewed appeal to Opposition parties to help pass the Constitutional amendment through an extended monsoon session. It is vital that this be cleared at the earliest for the government to stick to the GST implementation timeline of April 1, 2016. The three draft legislations will lay down the fine print of the uniform indirect tax regime.

- CA Kasliwal Ambar

RBI – New Guidelines on Concurrent Auditing at Branches

The ‪Reserve Bank‬ on Thursday said the concurrent audit at bank branches shouldcover at least half of their advances and deposits.

The concurrent audit system is regarded as part of a bank's early warning system to ensure timely detection of irregularities and lapses.


"Concurrent audit at branches should cover at least 50 per cent of the advances and 50 per cent of deposits of a bank," RBI said in a notification.

It said branches rated as high risk or above in the last risk-based internal audit (RBIA) or serious deficiencies found in internal audit are subject to concurrent audit.

The audit will also be applicable on all specialized branches like large corporate, mid corporate, exceptionally large/very large branches, SMEs and all centralised processing units like loan processing units (LPUs).

Besides, it would include service branches, centralized account opening divisions, wealth and portfolio management services, card products divisions, data centres and treasury/ foreign exchange business, investment banking, among others.

The concurrent audit also helps in preventing fraudulent transactions at branches.

The main role of concurrent audit is to supplement the efforts of the bank in carrying out simultaneous internal check of the transactions and other verifications and compliance with the procedures laid down, the RBI said.

The scope of concurrent audit should be wide enough or focused to cover certain fraud-prone areas such as handling of cash, deposits, advances, foreign exchange business, off-balance sheet items, credit-card business, Internet banking, it added.

The regulator said appointment of an external audit firm for concurrent audit may be initially for one year and extended up to three years, after which an auditor could be shifted to another branch, subject to satisfactory performance.

Abolition of ISA Eligibility Test

The Committee decided to abolish the ISA Eligibility Test from the Post Qualification Course on Information Systems Audit and all the members who have not yet qualified the ISA Eligibility Test and completed the Professional Training classes will be allowed to appear directly in the forthcoming ISA Assessment Test scheduled to be held in December, 2015. All the participants who will complete their professional training classes by 20th November, 2015 will be allowed to appear directly in the ISA Assessment Test scheduled to be held in the month of December, 2015.

- CA Kasliwal Ambar

Regional Council Elections of WIRC of ICAI for 2016-18

Dear CA Friends,

We, as Chartered Accountants belong to an esteemed profession that is at the forefront of a rapidly developing economy. Our skill sets have been honed by one of the best educational systems in the country and we have been entrusted with the responsibility to lead, nurture and protect our great nation. It is, therefore, our responsibility to ensure that our skill sets are world class and we continue to be well equipped to take on the challenge.

Since qualifying as a Chartered Accountant in the year 2002, it has always been my endeavour to contribute to the pride, dignity and growth of our esteemed community. My senior members of ICAI have always been my inspiration, mentor and guide during my professional journey and they have always encouraged me to take on greater responsibility at the Institute. Coupled with the support and guidance of my father and other senior members, I am in a position where I understand and appreciate the concerns of our community which operates under highly regulated environment and work with Institute in developing an inclusive and supportive ecosystem to enable members to discharge their responsibilities objectively and independently. With the advantage of youth on my side, I am well aware of the issues that newly qualified members face with regard to professional opportunities and networking and operate effectively under globalization, liberalization and privatization arena. I am equally aware of the problems faced by members in the industry and the women chartered accountants.

I would like to pledge my experience, skills, resources and efforts to our noble profession to take our community to even greater heights. I hereby declare my candidature for the next term of the Regional Council Elections of WIRC of ICAI for 2016-18 for which elections are scheduled for 4th and 5th December 2015, and humbly seek your support as well as the support of your colleagues and friends in our fraternity.

TO HAVE A VOICE, MAKE A CHOICE.

Thanks & Regards,
CA Ambar Kasliwal
B.Com., F.C.A
________________________

Jain Kasliwal & Associates LLP
Chartered Accountants

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Near Nutan Vidya Mandir,
Marve Rd, Malad (W)
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