Ind AS Implementation - a strategic issue, not just accounting.

Ind AS conversion is a strategic issue. The board of directors and management need to explain to the stakeholders on changes and impact arising from the Ind AS conversion. Ind AS effects all the verticals of the company and it should be well planned.  

If there is one thing you can take from reading this blog, it is: Develop your Ind AS implementation roadmap soon.To kick off this roadmap, we suggest that you ask your team a few preliminary questions. The answers to these questions should help you gauge the potential effect of Ind AS on your company. For example:

• Have we identified main differences between Ind AS and Indian GAAP?

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Ind AS for NBFC

Applicability

The MCA on March 30, 2016 notified the Companies (Indian Accounting Standards) (Amendment) Rules, 2016, which includes a road map for implementation of Indian Accounting Standards (Ind AS) by Non-Banking Financial Companies (NBFCs) (NBFC road map). NBFCs will be required to comply with Ind AS in a phased manner, from accounting periods beginning on or after 1 April 2018 for the first phase and 1 April 2019 for the second phase.

Phase I

From April 01, 2018, onwards, with comparative figures for the periods ending on or after 31 March 2018:

• NBFCs having net worth of INR 500 crores or more, and
• The holding, subsidiary, joint venture or associate companies of the above, other than those companies already covered under the road map for companies issued by MCA (corporate road map) in February 2015.

Phase II

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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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