SUGGESTIVE MEASURES FOR CHANGES IN FORM 3CD APPLICABLE FROM 20TH AUGUST

On 20th july 2018 Central Board of Direct Tax notify (notification No. 33/2018) multiple changes in Tax Audit Report (Form 3CD) which would come into force from 20th August 2018. In this article we will inform about change in form 3CD, we have given point by point suggestion on same for your reference.

■ POINT  No & PARTICULAR  OF TAR

4. ''Whether the assessee is liable to pay indirect tax like excise duty, service tax, sales tax, goods and services tax, customs duty, etc. if yes, please furnish the registration number or GST number or any other identification number allotted for the same''

● Sugg. measure

GSTIN to be cited in Form 3CD from now onwards.

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What To Make Of The Auditor Resignations ?

It is uncommon for auditors in India to resign halfway through an audit. Even more uncommon for them to quit just before the finalisation of annual accounts. But it’s happened thrice now in two months.

• On Apr. 27, Price Waterhouse & Co resigned as auditor of Vakrangee Ltd.
• On May 26, Deloitte Haskins & Sells resigned as auditor of Manpasand Beverages Ltd.
• On May 30, Price Waterhouse Chartered Accountants LLP as auditor of Atlanta Ltd

In all these cases the auditors resigned just days before signing off on annual accounts.
In all these cases the reason for resignation was inadequate information.
In all these cases the companies’ statements sidestep the auditors’ concerns.

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Major Amendments in Income Tax applicable for A.Y. 2018-19

The Finance Act 2017 had made several changes last year in Income Tax Act and rules which became applicable from FY 2016-17 ( AY 2017-18). Compilation of some of the amendments are given below for your reference.

1. Limit for payment of expenses by cash (Both capital and revenue expenditure) reduced from RS. 20,000 to RS. 10,000 per day in aggregate per person.
2.  No Person shall receive an amount of two lakh rupees or more, by cash (Sec 269ST).
3. For below Rs. 2 crores turnover cases - For Non cash sales (through Digital, Online, cheque, Bank etc.) : Net Profit will be taken as 6% of Turnover/ Gross Receipt. It is 8% For Cash Sales.
4. Tax Exemption limit is Rs.2,50,000/- (same as earlier) After that, up to 5 Lakh, Tax rate is 5% (earlier it was 10%). 

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Parliament passes Companies Amendment Bill

The Rajya Sabha passed the Companies (Amendment) Bill, 2017 by a voice vote. It was adopted by the Lok Sabha in July this year during the monsoon session.

A bill to amend the companies law to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business in the country, was passed by parliament on Tuesday. The Rajya Sabha passed the Companies (Amendment) Bill, 2017 by a voice vote. It was adopted by the Lok Sabha in July this year during the monsoon session. 

Replying to issues raised by the members during a discussion on the bill, minister of state for corporate affairs P.P. Chaudhary said the amendment would ensure better corporate governance and improve the ease of doing business in the country

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Ind AS Transition Facilitation Group (ITFG) Clarification Bulletins | Analysis

The Ind AS Transition Facilitation Group (ITFG) has issued several Clarification Bulletins, a synopsis of these bulletins are given below for ready reference 

ITFG Bulletin 1 clarifications  

1. A company having a net worth between 250–500 crore INR as on 31 March 2014 and therefore falling in phase II but has net worth exceeding 500 crore INR during 2015–16 would need to comply with Ind AS from 1 April 2016 i.e. from the immediately next financial year.
2. Subsidiaries of Phase I company also transition to Ind AS from 1 April 2016. However, the parent-subsidiary relationship for this purpose is evaluated as at 1 April 2016.

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Ind AS Implementation – 5 Major Challenges

Financial reporting in India is passing through very remarkable moments owing to adoption of Indian accounting standards (Ind AS). For companies covered under Phase – 1 of mandatory Ind AS Financials, 31^st March 2017 is first time complete reporting period and June 2016 was first Quarterly result publication date and we are months away from Phase 2 implementation. Ind AS Implementation has very wide impact on the organization so companies should assess carefully impact on growth, strategies, joint ventures and tax planning. There are many challenges in implementation of Ind AS however this blog/ article focuses on 5 major challenges:

Challenges Ahead

Financial Instruments

Deferred Taxation

Revenue Recognition

Control for Group Accounting

Business Combination

Financial instrument (Ind AS 32, 109):- 

There are no mandatory standards applicable under Ind GAAP, Ind AS provide the detailed guidance on accounting of classification, measurement, derecognition and impairment of financial assets and financial liabilities.

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