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What Sec 143(10) states is that ICAI MAY make recommendation to the Central Govt. BUT such recommendations will be subject to review/endorsement by NFRA. However, u/s 132 (2) NFRA SHALL (consulting ICAI is NOT required): (a) make recommendations to the Central Government on the formulation and laying down of accounting and auditing policies and standards for adoption by companies or class of companies or their auditors, as the case may be; (b) monitor and enforce the compliance with accounting standards and auditing standards in such manner as may be prescribed; In the case of SA 600 NFRA has indeed consulted ICAI who by its conduct has compelled NFRA to say “enough is enough”. #nfra

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MCA vs ICAI The debate over ICAI’s authority in setting audit standards raises significant governance concerns. As we push for better transparency and accountability in our financial systems, it’s crucial that regulatory frameworks are clear and aligned with legal mandates. Ensuring compliance strengthens trust in India's financial and corporate reporting ecosystem. https://lnkd.in/d9-SX5TW

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*Taste Mix Scoop of Business news 18th Oct* 1. **India Inc. Must Adopt Global Audit Norms: NFRA Chief** NFRA chair Ajay Bhushan Pandey urged Indian companies to align with global accounting standards, emphasizing the lead auditors’ responsibility for consolidated financial statements. This follows NFRA's call to revise auditing norms, conflicting with ICAI's suggestion for a review. 2. **Direct Tax Collection Soars 294% in a Decade** India’s personal income tax collection grew 294% over the past decade, reaching ₹10.45 lakh crore in FY24. The surge is attributed to improved compliance, reduced corporate tax rates, and a doubling of taxpayers to 10.41 crore. 3. **Infosys Q2 Profit Rises 5% YoY; Revenue Guidance Revised** Infosys posted a 5% YoY increase in profit, reaching ₹6,506 crore for Q2. Revenue guidance for FY25 was revised to 3.75-4.5%, driven by strong performance in financial services and ramp-up of mega deals. 4. **Wipro Q2 Profit Jumps 21%, Announces Bonus Share Issue** Wipro’s Q2 net profit rose 21% to ₹3,209 crore, outperforming expectations. The company announced a 1:1 bonus share issue and saw significant growth in large deal bookings. 5. **Nestle India Q2 Profit Grows 8.6%, Revenue Up 1.3% YoY** Nestle India reported an 8.6% rise in net profit to ₹986 crore, with revenue growing 1.3% YoY. Despite challenges in consumer demand and commodity prices, the company’s major brands showed robust growth. Nestlé Wipro Infosys The Institute of Chartered Accountants of India MINT

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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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Important Update: Reversals under Rule 37A Compliance for 2023-24 Introduction to Rule 37A: Rule 37A was introduced through Notification No. 26/2022 – Central Tax, dated 26th December 2022. This rule mandates the reversal of ITC by the recipient where the supplier has not discharged their tax liability by filing GSTR-3B by the 30th of September of the subsequent financial year. In such instances, the recipient must reverse the availed ITC on or before the 30th of November of the following year. Reclaim: For the reversal under Rule 37A, after the supplier files GSTR-3B, the recipient may reclaim the reversed ITC, subject to the availability of the same in GSTR-2B. Steps for ITC Reversal for FY 2023-24: 1. Have a regular dialogue with suppliers to ensure that any pending GSTR-3B for the relevant period is filed promptly. 2. In case the supplier has not filed GSTR-3B by the time you file your GSTR-3B for October 2024, the ITC must be temporarily reversed. This reversal should be disclosed in Table 4B(2) of your GSTR-3B. 3. Reclaim the ITC once the supplier files the GSTR-3B for the relevant period, ensuring compliance. Illustration: Suppose X Ltd. purchased goods from Supplier A in December 2023 and availed ITC of ₹1,00,000 for the December invoice. If Supplier A fails to file GSTR-3B for the relevant period by 30th September 2024, X Ltd. must reverse the ₹1,00,000 ITC when filing their GSTR-3B for October 2024 (to be filed by 30th November 2024). The reversal must be shown under Table 4B(2). If Supplier A files their GSTR-3B by December 2024, X Ltd. may reclaim the ₹1,00,000 ITC in their subsequent GSTR-3B (e.g., for December 2024). Watch our video which throws light on the provision and guides on how to comply with Rule 37A for FY 203-24 #EasyGST4U

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Working as consultant vs Empolyee for knowledge Working ! you can book your expense on job as business expenses , have office , car, travel and commute, entertainment allowed as business exps with guidance from a CA Employee or Consultant under presumptive tax for consulting ?

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We don't have a Government yet We don't know who will be the finance minister And (over emotional) tax experts are already talking about the Direct Taxes Code being introduced I mean - come on My question to tax leaders in MNCs/ big corporations - does anyone take these people seriously ?? And yet these experts don't talk about Pillar One and Pillar Two - which is a more relevant topic - especially for MNCs/ corporations having presence in multiple jurisdictions We need a Sprite advertisement on this - sidhi baat, no bakwaas #tax #taxes #taxlaw #taxlaws #oecd #pillarone #pillartwo #taxleader #taxleaders #incometax #incometaxes

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Ab-initio cancellation of a GSTIN is a cause for great concern.. It is often noticed that the recipients of goods from such taxpayers whose GSTIN is cancelled ab-initio, are the most affected as they lose out on the Input Tax Credit generated through the transactions with such taxpayers.. As the Act states that to claim eligible Input tax credit the GSTIN of the seller needs to be Active.. Here are a few situations wherein cancellation of a GSTIN ab-initio may be justified.. a) Multiple GSTIN registrations for a given address b) Multiple GSTIN for a given PAN c) OSTIN using incomplete or wrong addresses d) Tax payer using sensitive commodities. e) Common e-mail, common mobile numbers, common address, common authorized signatories, common promoters for multiple GSTIN. f) Mismatch between the premises declared and the volume of goods transacted. g) Mismatch between the quantum or transactions and the e-way bills generated. If there are, no e-way bills or less c-way bills generated compared to the details of transactions as per the GST returns. h) PAN involved in any “fake invoice” fraud or any other GST frauds appear as either in GSTR I A or GSTR 2A. i) Abnormal ITC utilization (for example above 95%).

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Responded to Issue Id: 4709 applying following Ind AS: 1. Ind AS 27 – Separate Financial Statements Issues in Issue Repository: 82 2. Ind AS 28 – Investment in Associates and Joint Ventures Issues in Issue Repository: 55 3. Ind AS 110 – Consolidated Financial Statements Issues in Issue Repository: 130   Registrants of https://gaapadvisors.com having subscription access to issue repository can search issue id 4709 to see the issue and response.   Issues in Issue Repository can be searched based on: 1. Framework – Accounting Standards or Indian Accounting Standards; 2. Standards in the selected Framework; 3. Paragraph no. in the selected standard; 4. Issue Id; or 5. Keywords.   Register now on https://gaapadvisors.com and get 48 hours of free subscription access to all repositories which includes the benefit to submit issues.   Excel in Financial Reporting in India   #GAAPAdvisors - Enabling Excellence in Financial Reporting

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To counter the Chinese intervention in Surveillance Cameras, The government has amended the compulsory registration order for CCTV cameras sold in India to make testing of their 'essential security parameters' mandatory. Securing a CCTV (Closed-Circuit Television) system is crucial to protect sensitive information and ensure the system operates effectively. Key areas of testing include exposed network services, device communication protocols, physical access to the device’s UART, JTAG, SWD, etc., the ability to extract memory and firmware, firmware update process security and storage and encryption of data. The Union Government has come out with safety guidelines keeping national security as top priority. Till date, the Indian Government had no mechanism to check the installation of these Chinese-origin surveillance cameras, as the certification for such devices in use in the country only looked into aspects such as fire hazard or durability, and not security or snooping threats. China’s Hikvision controlled India’s surveillance market. US had already invoked the National Defense Authorization Act and prohibited government agencies from purchasing video surveillance products from Hikvision. Hikvision is one of the world’s largest video surveillance companies producing both hardware and software tools.Hikvision exists in India under the name Prama Hikvision Indian Private Limited. As per reports, Hikvision enjoys over 35 per cent market share in India It is also listed as a vendor by BEL, which works on highly sensitive and classified defence projects for the government of India. More worryingly, Hikvision has allegedly also supplied solutions to Delhi Metro Rail Corporation (DMRC), Defence Research and Development Organisation (DRDO), and the Special Protection Group (SPG), which is responsible for the security of the prime minister. This leaves India with a tricky situation. Admittedly such companies do create secondary economic benefits for India with the local assembly and selling units creating jobs at home. However, there is arguably a bigger price India pays in terms of handing its CCTV grid to a country that is a threat to our national security. However recently the Govt felt it's high time We need to reclaim our physical territory along with our digital spaces. So Govt of India banned 17 Chinese companies from participating in tenders in India and also warned private companies that do business with Govt entities against using these Chinese products. This will not only prevent Chinese companies from snooping into Indian National security but also give a massive thrust to domestic manufacturers to reclaim the market share that used to be dominated by the Chinese. Above was just an example, this pattern is being repeated across many sectors where capability to produce in India is already present and Sovereignty of INDIA is under threat. We have the right to govern ourselves without any external interference.

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Views are personal. How do you ensure that auditors get fair fee? With large rotation around the corner would you see audit fee coming under pressure. There use to be a regulation to ensure there is no undercutting of fee. Is there a need to revive that? What role can the regulator play? Where are we headed. Any thoughts?????

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ICAI Releases SQM 1 and SQM 2: A Game-Changer for Audit Firms ICAI has introduced two new standards—SQM 1 (Quality Management for Firms) and SQM 2 (Engagement Quality Reviews)—to elevate quality management in audit firms. SQM 1: Quality Management for Firms ✅Applicable to firms conducting audits, reviews, and assurance services. ✅Focus: Establishing a risk-based quality management system covering leadership, ethics, client acceptance, performance, resources, communication, and monitoring. SQM 2: Engagement Quality Reviews ✅Applies to engagements requiring independent quality reviews. ✅Ensures engagement quality through competent, independent reviewers, covering significant judgments and documentation. Challenges for Non-Big Four Firms ✅Resource constraints, training, and technology adaptation. Preparedness Tips ✅Early implementation, staff training, resource allocation, and investment in audit technology. By addressing these areas, Non-Big Four firms can smoothly transition to the new standards and uphold high-quality engagements. Ref the link to download standards #NFRA #Audit #ICAI #StandardsonAudit

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✅ You may be aware of the ongoing discussions over the adoption of ISA 600 after NFRA has shown its eagerness for the same. Personally, I am little skeptical on adoption of #ISA600 in its entirety for all listed companies. ☑ There will be some carve-outs and exclusion like Banking and Insurance Companies. ♂ Meanwhile, let’s see what ICAI does to improve the audit quality in #India. The Institute of Chartered Accountants of India through its various committees or Boards ensures that the audit quality remains high. The list of the committees with their webpage links: ▶ AASB (https://lnkd.in/g9zvev6z) ▶ CAQD (https://lnkd.in/gnehdmaz) ▶ FRRB (https://lnkd.in/gMxE9Z-M) ▶ PRB (https://lnkd.in/ga3e7h9N) ▶ TAQRB (https://lnkd.in/gNRpf-2g) ✅ The purpose of forming these committees is to make robust Standards, issue Guidance and supporting material for auditors, review the financials and audit reports, to make utilities and tools to help the members, organize various training sessions, workshops and seminars for the benefits of members. You may find their detailed objectives on the given links. ✅ Apart from above, Government has formed an independent body QRB (https://www.qrbca.in/) to review the quality of services provided by the members of #ICAI. ✔ These committees also provide some work opportunities to the members in the form of empanelment. An experience auditor can empanel with the PRB, FRRB, TAQRB, QRB etc. for the purpose of review. For more details, you may go to the above links. ✔ Do you think ICAI should do more efforts at the grass root level? Like a specialized course for new auditors/practitioners, hand holding by a senior expert, continuous learning through a dedicated peer portal etc. ♀ Please share your thoughts for the benefits of CA community. 👍 Follow CA. Devender Pandey 🇮🇳 for more.

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NFRA vs. ICAI: The Audit Standards Debate The National Financial Reporting Authority (NFRA) and the Institute of Chartered Accountants of India (ICAI) are at odds over proposed changes to audit standard SA 600 ¹ ². What's the Issue? NFRA wants to align SA 600 with international standards, making principal auditors accountable for subsidiary audits. ICAI fears this will concentrate the audit market in a few hands, harming small practitioners ¹ ². Key Concerns: - Concentration of Market: ICAI worries that revising SA 600 will lead to bigger firms dominating the audit market, pushing out smaller firms ¹. - Principal Auditor's Responsibility: NFRA proposes holding principal auditors accountable for subsidiary audits, which ICAI believes is unfair ². - Impact on Small Firms: ICAI claims that 97,000 small CA firms will be affected if NFRA's changes are implemented [2). The Way Forward: ICAI suggests improving processes and implementing additional checks and balances instead of revising SA 600 ². NFRA's goal is to enhance audit quality and reliability, crucial for India's growing economy ¹. https://lnkd.in/gqBgbm5Q Share your thoughts on this controversy. How can NFRA and ICAI find a balance between audit quality and supporting small practitioners? Let's discuss! 💬 #NFRA #ICAI #AuditStandards #SA600 #Accounting #Finance #India

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Whatever happened in Loksabha as well in Rajya sabha recently does not reflect well on the democratic norms of the nation.The kind of acrimonious scenes were witnessed in two houses particularly Lok Sabha only tell about the immaturity of our leaders ,both in opposition as well as in the ruling party. We certainly need a strong opposition which can keep the ruling party on toes and a ruling party which can respond to opposition objectively and truthfully.But alas It appears to be only a dream for indians. We as citizens of India expect debate on collapsing bridges,falling roof tops of airports,flooded capital of the nation,grave unemployment problem,implications of huge inequalities of income and wealth ,pressure on our resources due to population explosion,issues concerning corruption,need to ban politicians against whom criminal cases are pending in courts from contesting any election and holding any post and so on.But our leaders are still discussing religion,caste,communities and so on. One can sincerely hope that opposition can be constructive in criticism and ruling party can take them along to fulfill the ambitions of 140 crore people of this nation.

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Yes, radical as it may sound (especially to the audit community), replacing audit in certain cases may be worth considering. No mandatory audit is required for Private companies in many countries. In India, the relaxation in Tax audit/ GST audit indicates that Revenue is NOT convinced of the efficacy from exchequer perspective. Reasons are not difficult to seek or find. Look at the Annual Reports of large listed companies today.. one needs to find out where the audit reports on financials are burried..(see Tata Steel and Tata Motors). Do investors who should be bothered about Consolidated Financial Statements care to read the audit reports filled with caveats and approaches ? Should the Investors care about how the so called “Key Matters” were addressed (the auditors responses anyway come with ambiguous boiler-plate templates) ? OR do they need to know what the reservations (if any) are ?. Addressing the reports on Key Audit Matters or Internal Controls to shareholders instead of to Audit Committees is missing the point. Regulators like SEBI/NFRA may consider an investors outreach/survey to assess if audit be made optional for Companies for any year where the external certification asserts that a Company has robust Internal controls on Financial Reporting that operate effectively ? Make more thoughful minds available to be engaged in something constructive for the Society/Eco-system ?

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 🔵 Audit Will Not Be Same Anymore :( For good or for bad? Here’s everything you MUST KNOW 👇 The National Financial Reporting Authority (NFRA) has launched a BOLD reform to overhaul the way auditors verify corporate financials in India. NFRA is revising all 38 Auditing Standards & two Quality Management Standards set by The Institute of Chartered Accountants of India. This is huge because, in the current practice, Auditing Standards issued by the ICAI are deemed final. SA 600 is already in process which deals with consolidated financial statements of business with more updates expected soon. 🧐 Why such reforms are needed? The move comes after corporate scandals like Satyam, IL&FS, and others highlighted the need for stricter audits and accountability. NFRA’s approach might have caused some disagreements with ICAI, but this isn’t a conflict. It’s about meeting the mandate of Section 143(10) of the Companies Act, 2013. Quiz for Smart CAs: What is the mandate of Sec 143(10) of CA’2013? Correct answer will get a “Practical Audit Resource”. Let’s gooo! My fellow CAs, what do you think about this BOLD move of NFRA? Would love to read your take on this. #AuditingStandards #NFRA #ICAI #AccountingStandards

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July-October 2024 Incredible outreach, Conversation on Audit Quality including Group audits SA 600 revisions, valuable feedback and perspectives. Reserve Bank of India (RBI) Karnataka State Chartered Accountants Association BCAS - Bombay Chartered Accountants' Society Confederation of Indian Industry ASSOCHAM (The Associated Chambers of Commerce and Industry of India) #AuditQuality #AuditingStandards #GroupAudits #SA600 #FinancialReporting #Accountability #Transparency

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