Akshay Purandare

Tomorrow @ 4:30 PM! Taxsutra & BDO in India Present Webinar on "Recent Developments - Import Under FTAs”! Register Now >> https://buff.ly/3VXIMqd #Taxsutra #Webinar #Learning #FTAUpdates #TradeTalks #ImportRegulations #FreeTradeAgreements #GlobalTrade Parthasarathy R Vikram Kulkarni

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𝐍𝐅𝐑𝐀 𝐭𝐨 𝐑𝐞𝐯𝐢𝐬𝐞 𝐀𝐮𝐝𝐢𝐭 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬 𝐀𝐦𝐢𝐝 𝐈𝐂𝐀𝐈 𝐓𝐞𝐧𝐬𝐢𝐨𝐧𝐬 The National Financial Reporting Authority (NFRA) is set to introduce major revisions to audit standards, addressing concerns over audit quality and independence amid ongoing tensions with the Institute of Chartered Accountants of India (ICAI).  𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬:  𝐀𝐮𝐝𝐢𝐭 𝐑𝐞𝐟𝐨𝐫𝐦𝐬: Revisions aim to enhance quality, transparency, and accountability in audits.  𝐈𝐂𝐀𝐈 𝐯𝐬. 𝐍𝐅𝐑𝐀: A power struggle continues, with ICAI concerned about NFRA’s regulatory reach. 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧𝐢𝐧𝐠 𝐈𝐧𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐜𝐞: Ensuring auditors maintain objectivity, free from external influence. 𝐄𝐭𝐡𝐢𝐜𝐚𝐥 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬: A focus on adhering to global best practices in auditing.  𝐁𝐫𝐨𝐚𝐝𝐞𝐫 𝐈𝐦𝐩𝐚𝐜𝐭: These changes will influence corporate governance, financial reporting, and investor confidence in India. Stay ahead of these changes – Connect with 𝐂𝐀 𝐑𝐚𝐡𝐮𝐥 𝐆𝐮𝐩𝐭𝐚 for expert guidance. #NFRA #AuditReforms #ICAI #AuditQuality #FinancialReporting #CorporateGovernance #CArahulgupta #IndiaFinance #EthicalStandards

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NFRA clears 40 audit rules inspite of ICAI objection #NFRA #audit #rules #icai #CA #caingandhinagar #gandhinagar

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Dismisses challenge to show cause notice premised on audit findings : HC Delhi Magicon Impex Private Limited Ruling : Delhi HC dismisses challenge to show cause notice (SCN) by holding that “SCN may be premised on the findings of the audit report, the same is within the statutory framework.”; Pursuant to an audit, SCN as per section 74 was issued; On receipt of multiple audit memos, the same not only indicated the findings of the auditors, but also called upon the assessee to pay tax as determined, along with the interest and penalties as applicable; Besides, clarifies that “Any irregularities in issuing the audit memos does not impinge the validity of the impugned SCN”; Thus, concluding that SCN cannot be set aside at ‘threshold stage’ disposes of the petition with a direction to Adjudicating Authority to consider the response to SCN, if filed by Assessee #GST #GSTLitigation #GSTUpdates #GSTCompliances #GSTNews

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📢 Exciting News: GSTR-1A Coming Soon! 📢 I'm thrilled to announce that a significant update is on the horizon for the GSTN portal. The new Form GSTR-1A will soon be introduced, providing a much-needed enhancement for taxpayers. 🆕 What's Changing? 🔹 Flexibility in Amendments: Currently, taxpayers cannot modify GSTR-1 in the same period after it has been filed. Any amendments or missed records must be reported in the GSTR-1 of the next return period. 🔹 Introducing GSTR-1A: To simplify this process, GSTR-1A will allow taxpayers to amend or add records within the same month after filing GSTR-1 and before filing GSTR-3B. This ensures timely and accurate corrections. 🔹 Automatic Liability Adjustment: The amended liability will be automatically populated in GSTR-3B, enabling correct liability discharge. 📊 Key Impacts: 1. Same-Period Modifications: Taxpayers can modify GSTR-1 in the same return period. 2. Efficient Reporting: Amendments or missed records can be reported in GSTR-1A before filing GSTR-3B. 3. Downstream Effects: This update will impact forms like GSTR-2A, GSTR-2B/2BQ, GSTR-3B/3BQ, GSTR-4A, GSTR-6A, GSTR-9, GSTR-11, tax liabilities, and ITC comparison. 4. Monthly Amendment Process: Amendments in GSTR-1A cannot be amended again in the next month's GSTR-1. Only unamended records can be modified in the next period's GSTR-1. This upcoming feature is a game-changer, aiming to make the GST filing process smoother and more efficient for all taxpayers. Stay tuned for more updates as we get closer to the launch!

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Revised Criteria for classification of Non-company entities for applicability of Accounting Standards ICAI has issued an Announcement regarding the change in the applicability of Accounting Standards for non-company entities. For accounting periods commencing on or after April 1, 2024, non-company entities are now classified into 2 categories instead of 4 levels: 1. Large entities - Turnover above 250 Crore and Borrowings above 50 Crore; and 2. Micro, Small & Medium Sized Entities (MSMEs) - Turnover below 250 Crore and Borrowings below 50 Crore Exemptions/ relaxations which were available to non-company entities earlier classified under Level III & IV have been extended to all MSMEs except AS 18 & AS 28 which are applicable to non-company entities with Turnover below 50 Crore and Borrowings below 10 Crore. The said changes would bring reduced compliance for MSMEs without having a major impact on classification and recognition criteria and will be applicable for preparation & presentation of financial statements of sole proprietorships, LLPs, partnerships, etc. from FY 2024-25 onwards. #kcrkcollp #MSME #AccountingStandards #MBF

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What reporting to be done in Clause 26 of Tax Audit report? Clause 26 deals with the expenses which can be claimed according to clauses (a), (b), (c), (d), (e) or (f) or (g) of section 43B. As per section 43B specified expenses are allowed only on the basis of actual payment even if the assessee is following the mercantile basis of accounting. If the specified expense for which the liability was incurred during the previous are paid on or before the due date for filing IT return, the deduction will be allowed in the previous year itself. The detail of such expenses are as below: a. Any tax, duty, cess or fee payable is allowed as a deduction when it is paid. Tax, duty and cess include GST, customs duty or any other taxes or cess paid but does not include income tax or TDS/TCS. Interest paid on these taxes are also eligible for deduction. b. Contribution by the employer to any recognized employee’s benefit fund namely PF fund, superannuation fund, gratuity fund before the due date of the respective fund or before the due date of filing Return of Income. c. Bonus or commission payable to employees. d. Interest on loan from Public Financial Institutions or State Financial Corporation, state industrial investment corporation, scheduled banks in accordance with the conditions governing such loan. e. Leave encashment provided by an employer. f. Interest on loans and advances from deposit-taking NBFC or systematically important non-deposit-taking NBFC. g. Any sum is payable to Indian Railways for use of railway assets. An auditor shall distinguish the payments made during the previous year that were allowed in earlier years from those that were disallowed. In clause 26(i)(A), an auditor is required to report the payment status of the liability that is already existing on the first day of the previous year and was not allowed in the assessment of any preceding previous years. In clause 26(i)(B), an auditor is required to report the payment status of the liability that was incurred only in the previous year. 

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Key Changes in GSTR-9 applicable for FY 2023-24: The GSTR-9 form for FY 2023-24 is active on the GST portal, bringing some important updates to the mandatory and optional tables: Key Changes in #Mandatory and #Optional Table in #GSTR9: ➡️ Table 4: Details of All Taxable Supply: #Mandatory - Mandatory with a new Table G1 added.   - Reporting in 4I, 4J, 4K, 4L is now mandatory (was previously optional).  ➡️ Table 5: Details of All Non-Taxable Supply: - Reporting in 5H, 5I, 5J, 5K is now mandatory (was previously optional).   - Non-GST supplies (5F) must be reported separately.   - Option to either report exempted and nil-rated supplies separately or as a consolidated exempted row.  ➡️ Table 6: Break-up of ITC Availed through GSTR-3B - #Mandatory  ➡️ Table 7: ITC Reversal Details – #Optional (7A, 7B, 7C, 7D can be added in 7H).  ➡️ Table 8: ITC Reconciliation   - Now based on GSTR-2B instead of GSTR-2A.  ➡️ Table 9: GST Paid and Payable : No changes  ➡️ Tables 10-13: Adjustments for FY 2023-24 (can be reported till 30th November 2024). ➡️ Table 14: Differential Tax Paid – Mandatory (if applicable)  ➡️ Table 15: Demand & Refund – #Optional ➡️ Table 16: Purchase from Composite Taxpayers, Deemed Supply, Goods on Approval– #Optional ➡️ Table 17: HSN-wise Summary of #Outward Supplies: - Mandatory for businesses with AATO over ₹5 Crore (all supplies).   - For AATO up to ₹5 Crore, mandatory for B2B supplies only.  ➡️ Table 18: HSN-wise Summary of #Inward Supplies – #Optional  With these new requirements in place, it’s essential to review your data and prepare accordingly. Take advantage of the optional tables only where necessary to streamline your filing. File early to ensure compliance and avoid penalties! #GSTR9 #GSTUpdates #TaxFiling #TaxCompliance #Taxation #ITC #HSN

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Join us today for the Panel Discussion on "2nd Accounting Standards Day" starting at 02:30 PM at NDMC Convention Centre, CP, New Delhi. We'll be joined by experts to delve into the below:- 📌 Framework, Formats & Applicability of Accounting Standards 📌 Critical aspects of assets related standards 📌Critical aspects of Liabilities & Expense related standards 📌 Critical aspects of Revenue related standards For further details refer attached flyer. #AccountingStandardsDay #Accounting #NewDelhi

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Re-opening of ITC Reversal Reporting Opening Balance GSTIN has recently issued advisory dated 17 September 2024 with regards to ‘Re-opening of ITC Reversal Reporting Opening Balance’. Below are the relevant points encapsulated for ease of reference: Background: In July 2022, vide Notification No.14/2022- Central Tax dated 05 July 2022 read with circular 170/02/2022-GST dated 6 July 2022, Government (‘GOI’) had introduced certain changes in Table 4 of Form GSTR-3B regarding availment & reversal of ITC along-with reporting of re-claimed and ineligible ITC. Advisory: Vide the enclosed advisory GOI has extended the timelines for reporting the opening balance in the Electronic Credit Reversal and Re-claimed Statement, as outlined below: 1. The functionality for reporting the opening balance will be accessible from 15 September 2024 until 31 October 2024. Amendments to the declared opening balance can be made until 30 November 2024. 2. Monthly filers should report opening balance considering ITC reversals made up to the return period of July 2023, since balances of subsequent period are already appearing in the ledger. 3. Quarterly filers should report opening balances for the first quarter of FY 2023-24, considering ITC reversals for the period ending June 2023 since balances of subsequent period are already appearing in the ledger. 4. It is pertinent to note that no further extensions will be granted for reporting the opening balance and the system will soon prevent the re-claim of ITC beyond the amount previously reversed. Therefore, taxpayers will be able to reclaim ITC up to the balance available in their Electronic Credit Reversal and Re-claimed Statement.

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ICAI’s New Fee Calculator for CAs ICAI has launched a fee calculator to help CAs determine minimum recommended fees. Available on the TMD website, this tool is based on the Revised Minimum Scale of Fees (Feb 2020). Key Features: >> Service Categories: Covers Income Tax, GST, Audit, and more. >> Tailored Fees: Adjusts based on complexity, time, and location. >> Transparent Pricing: Standardizes fees, ensuring professional integrity. ICAI Guidelines: >> Fees should match complexity and time spent. >> Travel and other expenses are additional. >> GST should be collected separately. Link to the tool is in the comments section below!

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CBDT releases new functionality in AIS for taxpayers to display status of information confirmation process in real-time Taxpayers can now check whether their feedback is acted upon by the Source/Reporting Entities Posted On: 13 MAY 2024 7:42PM by PIB Delhi The Annual Information Statement (AIS) is available to all registered Income Taxpayers through the compliance portal, accessible through the e-filing website (www.incometax.gov.in). AIS provides details of a large number of financial transactions undertaken by the taxpayer which may have tax implications. AIS is populated based on the financial data received from multiple information sources. In AIS, taxpayer has been provided with a functionality to furnish feedback on every transaction displayed therein. This feedback helps the taxpayer to comment on the accuracy of the information provided by the Source of such information. In case of wrong reporting, the same is taken up with the Source for their confirmation, in an automated manner. It may be noted that, information confirmation is currently made functional with regard to information furnished by Tax Deductors/Collectors and Reporting Entities. The Central Board of Direct Taxes (CBDT) has now rolled out a new functionality in AIS to display the status of information confirmation process. This will display, whether the feedback of the taxpayer has been acted upon by the Source, by either, partially or fully accepting or rejecting the same. In case of partial or full acceptance, the information is required to be corrected by filing a correction statement by the Source. The following attributes shall be visible to the taxpayer for status of Feedback confirmation from Source. Whether feedback is shared for confirmation: This will let the taxpayer know if the feedback has been shared with the Reporting Source for confirmation or not. Feedback Shared On: This will let the taxpayer know the date on which the feedback has been shared with the Reporting Source for confirmation. Source Responded On: This will let the taxpayer know the date on which the Reporting Source has responded on the feedback shared with it for confirmation. Source Response: This will let the taxpayer know the response provided by the Source on the taxpayer's feedback (if any correction is required or not). This new functionality is expected to increase transparency by displaying such information in AIS to the taxpayer. This is another initiative of the Income Tax Department towards ease of compliance and enhanced taxpayer services. #incometax #incometaxindia #incometaxfiling #incometaxefiling #AIS

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The landscape of Indian accounting standards is set for a significant transformation by 2026, spearheaded by the National Financial Reporting Authority (NFRA). These changes are poised to impact not just corporates but also key stakeholders like CFOs and Indian auditors. Here’s what’s on the horizon: - Revamping ICAI Standards: NFRA is working to align all #ICAI standards, including those on auditors' responsibilities, with global best practices. - Audit Norms for LLPs: With the growing preference for #LLPs over companies due to lighter compliance requirements, #NFRA is exploring the introduction of audit norms for LLPs with substantial turnover or capital contributions. While revising the standards, it would be worthwhile for the NFRA to consider: - Recommendations and concerns of all stakeholders, as evident in many EU countries - Implement changes on a pilot basis or on a gradual basis - Ensure consistency with other regulations The Road Ahead : Change is the only constant, and embracing it can lead to unprecedented growth. The upcoming transformations are strategic enhancements that will: - Strengthen India's Global Standing: Aligning with international standards makes India more attractive to global investors. - Promote Transparency and Trust: Updated standards improve financial reporting accuracy, building stakeholder confidence. - Foster Sustainable Growth: A robust accounting framework aids better decision-making and risk management. By adapting proactively, we can help create a more transparent, efficient, and globally competitive financial ecosystem in India. MCA Consulting appreciates Ruchita Chavadi for her research on the subject. #AccountingStandards #Audit #IndianAccounting #FinancialReporting #CFO #Auditors #Governance #Compliance

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Applicability of GSTR 9 and GSTR 9C GSTR 9 is an annual return to be filed yearly by taxpayers registered under GST. It is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B) filed in that year. Though complex, this return helps in extensive reconciliation of data for 100% transparent disclosures. The GST law does not specify any turnover limit for GSTR-9. However, to ease the compliance burden for small businesses, the department made GSTR-9 optional for businesses with turnover up to Rs 2 crore from FY 17-18 onwards. As on 22nd June 2024, the Council has recommended to provide relaxation to taxpayers from filing GSTR-9/9A for FY 2023-24 where their aggregate annual turnover for the said financial year is upto Rs.2 crore. This was notified via CGST notification 14/2024 dated 10th July 2024. GSTR-9C is a Self Certified Reconciliation Statement, Taxpayers having aggregate turnover upto Rs.5 Crores are exempted from filing GSTR-9C for FY 2023-24 vide Rule 80(3) of CGST Rules. All other taxpayers are required to file GSTR-9C for FY 2023-24.

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According to recent news, the implementation of revised SA 600, advocated by NFRA, will be detrimental to small and mid-sized CA firms in India. The current Central Council of The Institute of Chartered Accountants of India (ICAI) seems to oppose the revised SA 600. In the upcoming ICAI elections, it's crucial to choose a Central Council candidate who can safeguard the interests of small and mid-sized firms and effectively represent their concerns. #audit #charteredaccountant #icaielections

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NFRA and ICAI at Odds Over Plans to Sync Audits with Global Norms! Who is NFRA?   The National Financial Reporting Authority (NFRA) is an independent regulator overseeing the auditing profession and Indian Accounting Standards under the Companies Act 2013. Why are NFRA and ICAI at odds, despite both working for the betterment of auditors?   The tension arises from differing roles and regulatory approaches. The Institute of Chartered Accountants of India supports self-regulation and auditor interests, while NFRA focuses on stricter oversight, emphasizing public interest and audit quality. This divergence creates friction as both strive for auditor improvement. NFRA’s draft norms overhaul the existing Standard on Auditing (SA) 600, affecting listed companies and banks, except state-run ones.  ICAI fears that these norms could concentrate audit work among larger firms, adversely impacting small and medium practitioner firms. ICAI also opposes mandating principal auditors to assess the competence of component auditors, arguing that all auditors share the same education, training, and licensing under ICAI. What is the take of other regulatory bodies? Despite these concerns, the Comptroller & Auditor General of India, Reserve Bank of India (RBI), and Securities and Exchange Board of India (SEBI) support aligning domestic audit standards with global ones. NFRA believes this revamp is essential to prevent corporate fraud by fostering greater accountability among auditors, whose work impacts millions of retail investors. #auditreforms #icai #nfra #auditquality #corporategovernance 

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ICAI has revised the classification criteria for non-company entities regarding Accounting Standards, effective April 1, 2024. Key points: Categories: Entities now classified as MSMEs (turnover < ₹250 crore, borrowing < ₹50 crore, unlisted) and Large. Standards for Large Entities: Full compliance required. Standards for MSMEs: Exemptions and relaxations available in certain standards. Disclosures: MSMEs must disclose if exemptions are used. Status Changes: If an entity’s status changes, full standards apply without revising previous periods.

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