We ended the previous month with a sigh of relief due to the extension of deadline for filing income tax returns by a month to August 31, 2018; a regu-lar feature by CBDT off late. In light of levy of fee for delayed filing of return of income introduced from the current year, the assesses have been granted an extra month. So let us all work towards meeting this deadline well in time and not wait till the very end.
Once the July filing season ends, all of us start gearing up for the more stress-ful and challenging tax audit season. Notwithstanding the fact of coping with the unpreparedness of clients and delays in receiving adequate information from them, we have been thrust upon with additional work of reporting on new clauses added in the revised Form 3CD notified by the CBDT. This was made effective from August 20, 2018. There were 15 changes consisting of 6 amendments and 9 insertions in the tax audit report in Form 3CD initially. However two insertions relating to GAAR and GST compliance, have now been made applicable from the next assessment year and will bring some relief to the tax auditor. Reporting under these amendments will result in increased work load of the tax auditor and his reporting responsibilities will be en-hanced. Our Society jointly with other likeminded sister organizations has submitted a representation on revised Tax Audit Report to the CBDT solicit-ing immediate intervention. To deal with these new changes, our society had organized a seminar for the benefit of members. The seminar was totally sold out and registrations had to be closed days before the event. This event was made available on the e-learning platform “Course Play” for those who could not be physically present.
Our society had arranged a visit to Reliance Corporate Park, Navi Mumbai, exclusively for its members for a “Workshop on Preparation of Consolidated Financial Statements”. In a first of its kind event, the finance and accounts team of Reliance Industries Limited (the largest company by market capitali-zation in India as on this date) walked through the entire process of preparing consolidated financial statements for such a large corporation at their own training centre. This workshop was taken by the Vice President – Finance & Accounts of RIL and he shared his experiences and gave an understanding of the processes involved in collating the information and preparing consolidated financial statements. All the members who attended had an enriching practical experience of how a business conglomerate like RIL, having a turnover in ex-cess of Rs. 3 lac crores, with 170+ consolidating entities, 96 different business areas and operating from 13 locations is able to declare its consolidated re-sults within a short span of 15 to 20 days at the end of every quarter. We at BCAS thank the RIL team for allowing us to use their training infrastructure, extending their hospitality and making this event a grand success.
The results of CA final examination held in May 2018 were declared last month and as per the ICAI’s press release, more than 9000 candidates quali-fied as chartered accountants taking our Institute’s membership within strik-ing distance of 3 lakhs members. I congratulate these freshly qualified CAs and welcome them to our fraternity. Our Society looks forward to enrol these young freshly qualified professionals as its members so as to increase its reach and ensure continuity for the future. We are providing special benefits, such as E-vouchers that can be encashed against an event or publication, special memento of BCAS publications, access to the referencer app and E-journal website etc. for these young CAs who enrol as BCAS members.
There is much to cheer for the investor community as our benchmark indices, BSE Sensex and NSE Nifty are hitting all-time record highs in the recent past and continuing their upward journey. This was despite the fact that our cur-rency has substantially depreciated against the US Dollar, negative global cues and adverse movement of crude prices internationally. Besides strong corpo-rate performances, the credit for this should go to the domestic investors, both institutional and retail. They continued to show confidence in the strength of the capital markets by committing fresh funds to the stock markets on a month on month basis notwithstanding the fact that international investors have been pulling out funds gradually from Indian capital markets. This is very positive for our economy as it reflects the maturity and coming off age of our domestic retail, mutual funds, and institutional investors. However, there is an enormous growth opportunity for our investors. The size of our capital market is much lower than that of some of the western countries like United States etc. This can be demonstrated from the fact that the US listed Face-book’s market capitalization on NASDAQ fell roughly 20% (loss of about US$ 120 billion or 8.30 lac crores) in a day after its June quarter results were declared; a single day fall which is more than the biggest company in India by market capitalization.
Recently, the Quality Review Board (QRB) under the ICAI has issued a report highlighting the key findings observed in the audit quality review conducted of audited financial statements during the FY 2017-18. This report has observa-tions on compliances of Accounting Standards (AS), Standards on Auditing (SA) and compliance of other regulatory laws and regulations. This report co-vers 47 audit firms and 53 reporting entities (including 41 Listed and 1 other Public Interest Entity). As an auditor, I encourage you to pay attention to all the key findings published annually in this QRB’s report and other previous publications to avoid such identified non-compliances. We should continue our efforts to improve the overall audit quality on a continuous basis and in-creasing the standards of financial reporting making our work more relevant and reliable.
Last year, our Indirect tax committee came out with a number of short videos by our in-house experts covering various topics relating to GST for our social media platforms. This was an instant success as can be judged by the number of hits and viewers it got in a short period of time. Encouraged with this re-sponse, our Direct tax committee also has started releasing a series of short videos informing important developments that take place on the direct tax front. Members are requested to take advantage of this unique initiative taken by our society to increase its reach across all formats and build sustainable digital assets. So stay tuned to BCAS Tax Guru-Cool on all the social media platforms.
It also gives me great pleasure to inform all members, that the BCAS’s infra-structure at its premises is available to its members only for their training re-quirements, subject to availability. This includes use of library free of cost and state of the art training facilities including provision for video recording etc. at a very nominal cost. Members are requested to take advantage of this and vis-it our website or contact our administrative office for further information.
Wishing all of you a very happy Raksha Bandhan and Eid Mubarak!
With warm regards
CA. Manish Sampat