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 The two forms ie Form 23AC and ACA have been replaced by a single Form AOC-4.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

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

FAST TRACK EXIT (FTE) FOR DEFUNCT COMPANIES

FAST TRACK EXIT (FTE) FOR DEFUNCT COMPANIES 
 (Sec 560 of 1956 Act now Sec 248 of 2013 Act)

CONDITIONS FOR FTE

The defunct company should have “Nil” Assets & Liabilities and has not commenced any business activity or operation since incorporation; or is not carrying over any business activity or operation for last one year before making application and Company which has “Active” status or identified as “Dormant” by the MCA

COMPANIES NOT ELIGIBLE FOR FTE

Listed Companies/ De-listed Companies/Section 8 Co/ Vanishing Companies/ Companies under Inspection/Investigation pending in any Court/ Companies where order under Section 234 has been issued and reply thereto or prosecution, if any, is pending in the court/ Companies against which prosecution for a non-compoundable offence is pending in court/Companies which have accepted public deposits and has made defaults in repayment of the same/Companies having secured loans/Companies having management disputes/Companies whose filing of documents has been stayed by Court or CLB or CG / Companies having dues to Taxes, banks and FI or CG or SG or any local authorities

HOW TO APPLY FOR FTE?

The application shall be made in Form FTE accompanied by filing fees of Rs. 5,000/-.

Attachments to Form FTE

1. Affidavit (as per “Annexure A” to the Circular) to be given individually by all Directors;

2. Indemnity Bond (as per “Annexure B” to the Circular) to be given individually by all Directors;

3. Statement of Accounts (as per “Annexure C” to the Circular) certified by PCA  or Statutory Auditor

4. Board Resolution stating to Strike off the name of the Company under FTE Mode;

5. Board Resolution for closure of Bank Accounts;

6. Confirmation letter duly signed by the concerned Banks Official that the Bank Account of the Company is closed;

7. The company shall disclose pending litigations, if any, involving the company while applying under FTE;

8. Form FTE shall be certified by PCA/ PCS/PCMA.

9. If database of directors not maintained by the MCA, a certificate from PCA/ PCS/PCMA  certifying that applicants are present Directors of the Company. Then no need to file Form DIR-12  and  DIR-3 (earlier  DIN 3).

PROCEDURE AT ROC

1. ROC shall examine the same and if found in order,  shall intimate the Co by issuing a notice under Section 560 (3) giving 30 days time, stating that unless cause is shown to the contrary, the name of Company be struck off from the register and the lead to dissolution of the Company.

2.  The Registrar on being satisfied shall strike off the name of the Company from its Register and send notice under Section 560 (5) of the Act for publication in the Official Gazette and the Company stands dissolved from date of publication of the notice in the Official Gazette.

3.  A Company dissolved under Section 560 of the Act can be restored before expiry of 20 years from the date of publication of notice in the Official Gazette by order of the Court. The application for restoration can be made only by the Company, member or creditor.

Update from Department of Sales Tax, Government of Maharashtra

Department of Sales Tax, Government of Maharashtra has issued Trade Circular 13T of 2015 dated 14th August 2015 modifying some requirements for online registration and most important is 
(a) accepting the non-registered documents for place of residence and business and 
(b) facility to replace the documents or add other documents is in process and will be communicated at appropriate time after it becomes operational.

- CA Kasliwal Ambar

WIRC Update: Recognition of CAs in Social Service

Dear All,

WIRC has taken the initiative to recognise the CAs of Western Region, involved in Social Services (any category) by organising an event namely “Recognition of CAs in Social Service” on August 27, 2015.

A CA can nominate self as well as submit the recommendation for other CA, who is in Social Service. All the forms selected by screening committee will be appreciated by way of "Certificate of Appreciation".

Request to nominate yourself and inform your known professional counterparts to nominate themselves in “WIRC’s Recognition of CAs in Social Service”, who have undertaken social services. Kindly note that there is “No Nomination Fee”. (Last date for submission of nomination form is August 20, 2015) 

The softcopy of nomination form and brochure is also available at http://wirc-icai.org/noticeboard-detail.aspx?id=%20570 

- CA Kasliwal Ambar

Professional Updates Part 2 (August 17) by CA Kasliwal Ambar

Income Tax:

1) FROM ITAT, PUNE: Kunal Polymers Pvt. Ltd. Vs. DCIT, ITA No. 1859/PN/2012, order dt. 15.07.15: "provisions of section 14A r.w. Rule 8D would not apply in case of dividend on the shares held as stock-in-trade"

2)The date for filing ITR-V for returns e-Filed for A.Y 2013-14 (filed on or after 1st April 2014 till 31st March 2015) and for A.Y 2014-15 (filed on or after 1st April 2014 till 30th June 2015) extended till 31st October 2015. Notification no. 1/ 2015

3)ITAT sounds note of caution for frivolous appeal by revenue; it damages public faith. Filling of appeal with complete knowledge of its fate by the Revenue only reflects the mischievous adamancy to attempt to mislead the Tribunal and waste the time of the Court and the officers concerned.[2015] 60 taxmann.com 160 (Delhi - Trib.) IN THE ITAT DELHI BENCH 'E' ACIT v. R.

LBT Update

LBT Amnesty scheme date extended up to 31.8.2015

SERVICE TAX

Service Tax Commissioner Office is coming up with empanelment of CA/ICWA for service tax Audits. Apply at The Commissioner Service Tax Audit - I Comm, 17-B, IAEA house, I.P. Estate, New Delhi - 110002

COMPANIES ACT

MCA has initiated the process of the constitution of the NCLT & NCLAT and in this regard notified the vacancies for the post of Technical Member & Judicial Member.

PRIDE OF OUR PROFESSION

Our Hon. Past President Padmashri CA T.N.Manoharan appointed as Non Executive Chairman of leading PSU Bank -Canara. Bank.

- CA Kasliwal Ambar

Professional Updates August 17, 2015 by CA Kasliwal Ambar

Income Tax: Electronic Verification of Income Tax Returns for AY 2015-16. CBDT vide Notification No. 2/2015 dated 13th July 2015 introduced e-verification of ITRs. Download from the below link:
https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/EVC_notification.pdf

RBI: Vide Notification No. RBI/2015-16/152 dated 13 August, 2015 Government of India has approved the implementation of the Interest Subvention Scheme for the year 2015-16.

ICDS Update: Applicable from AY 2016-17 and onwards. Applicable to all corporates following mercantile system of accounting irrespective of income, turnover, asset size, etc. Relevant only for computing income under head "Profits and gains of business or profession" (PGBP) and "Income from other sources".

Case Study: DVAT - ITC - levy of VAT on sale price of transaction which is yet to take place / deemed sales - such levy cannot be sustained in law - Veer Service Station, Delhi Petrol Dealers Association & Another, The Commissioner, DVAT & Others - Delhi High Court

ICAI: Election 2015 - Draft List of Voters as on 1.4.2015 - Views/Suggestions on proposed Polling Booths - http://icai.org/post.html?post_id=11810

- CA Kasliwal Ambar