⏺️ ICAI Peer Review Mandate Roll Out
Firms Conducting Audits of Branches of Public Sector Banks Shall also be required to have Peer Review
_For full Details click here_
https://www.icai.org/post/peer-review-mandate-roll-out
⏺️ Last date for filing without additional fees
✅ Annual filing - Refer below
⏺️ Form for CSR Reporting Notified For the Companies by "Companies Accounts Amendment Rules 2022" - Amendment made to Companies (Accounts) Rules to introduce Form CSR-2 to be filed as annexure to Form AOC-4.
For FY 2020-21 to be filed separately till 31.3.2022.
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ICAI elects New Torchbearers-CA. (Dr.) Debashis Mitra elected as President & CA. Aniket Sunil Talati as Vice-President, ICAI for the year 2022-23.
ICAI Council at its 407th Meeting of the Council held from 7th– 9th January 2022 decided to mandate the Peer Review process for coverage of more firms under Peer Review process. The roll out shall be made in four stages wef 1.4.2022. Firms Conducting Audits of Branches of Public Sector Banks Shall also be required to have Peer Review.
ICAI issued Guidance Note on Audit of Banks (2022 Edition) Statutory audit of banks involves a number of peculiarities due to some unique features of banks and banking operations e.g. huge volumes and complexity of transactions, wide geographical spread of banks’ network, large range of products and services offered, extensive use of technology, strict vigilance by the banking regulator etc.
Central government is all set to use blockchain technology to curb fake billing and GST claims. In the first phase, the technology will be used for warehousing and monitoring of goods movement. With the technology, the government is aiming to catch fake claims immediately, especially in cases that file a fake supply of goods on paper.
CSR/ MCA Every company covered under the provisions of section 135(1) shall furnish a report on CSR in e-Form CSR-2 to the ROC for the preceding FY (2020-2021) and onwards as an addendum to Form AOC-4 or AOC-4 XBRL or AOC-4 NBFC (Ind AS).
Provided that for preceding FY 2020-21, Form CSR-2 shall be filed separately on or before 31st March 2022, after filing form AOC-4 Or AOC-4 XBRL Or AOC-4 NBFC (Ind as), as the case may be.
Limited Liability Partnership (Amendment) Rules, 2022 has been notified. The same is effective from 01.04.2022. Drastic reduction in additional fees has been done along with procedure for Adjudication of penalties and appeals laid down.
⏺️ DUE DATE - FEB 15, 2022
#Due Dates for Tax Audit Report (3CA-3CD/3CB-3CD)
The due date for filing of Tax Audit Report for all categories of assessees whose account are required to be audited.
#12AA/10(23C) registered/approved Charitable Trust/Institutions need to file Audit Report in Form 10B/10BB.
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⏺️ Relaxation on levy of additional fees : MCA has extended annual forms filing dates as per their notification appearing on www.mca.gov.in
AOC-4 : 15th March 2022
MGT-7/7A : 31st March 2022
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⏺️ Extension of the Last Date for Submission of Application for Empanelment of Chartered Accountants Firms/LLPs with O/o C&AG for the year 2022-23
Online Submission Date: 22 Feb
Hard Copy Date. : 28 Feb
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Surcharge on sales tax and turnover tax paid to the State Government is not a fee or charge coming within the scope of Section 40(a)(iib)(A) or 40(a)(iib)(B), as such same is not an amount which can be disallowed under the said provision and disallowance made in this regard is rightly set aside by the High Court (Favour of Assessee) Kerala State Beverages Manufacturing & Marketing Corporation Ltd Vs. ACIT, 3rd Jan. 2022 (Supreme Court).
GSTR-9/9C threshold limit notifications for FY 2020-21. For GSTR-9 - 2 Cr and for GSTR-9C - 5 Cr. Both the limits are based on Aggregate Turnover, hence to be checked on PAN basis and not GSTIN wise.
Final report is not a substantive evidence, just a collective opinion of investigating officer: Case Name : Rajesh Yadav Vs State of U.P. (Supreme Court of India) Appeal Number : Criminal Appeal Nos. 339-340 of 2014 Date of Judgement/Order : 04/02/2022
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👉🏻Chartered Accountant's Assets worth Rs. 56 Cr Attached in Syndicate Bank Fraud Case
(The attached properties are in the form of agricultural land, plots, shops, offices, flats, fixed deposits and bank accounts. These properties were attached under the Prevention of Money Laundering Act (PMLA), 2002)
👇🏻 👇🏻 👇🏻
https://bit.ly/3gKX9J1
👉🏻SEBI cancels registration of 4 stock brokers, 11 depository participants
(SEBI cancelled the registration of 11 depository participants, including Karvy Stock Broking Ltd. In a separate order, the market regulator has also cancelled the registration certificate of four other stock brokers)
👇🏻 👇🏻 👇🏻
https://bit.ly/3rQbB90
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Certain provisions of Companies Act, 2013 is now applicable on LLPs
MCA vide Notification No. G.S.R. 110(E) dated 11th February, 2022 has notified the following provisions of the Companies Act, 2013 is now applicable on LLPs:
1) Section 90(1) to (11): Declaration of SBO;
2) Section 164(1) & (2): Disqualifications for appointment as designated partner;
3) Section 165(1) & (3) to (6): Number of LLPs in which designated partner i.e. 20 LLPs;
4) Section 167(1) to (3): Vacation of office of designated partner;
5) Section 206(5): Inspection of books and papers of LLP by an inspector;
6) Section 207(3): Applicability of CPC in respect of inspection or inquiry by the Registrar/inspector;
7) Section 252: Appeal to NCLT for restoration of name of LLP;
8) Section 439: Offences to be non-congnizable.
Note: Section 67 of the LLP Act, 2008 empowers the Central Government to direct, by notification, that any of the provisions of the Companies Act shall apply to any LLP or shall apply with such exception, modification and adaptation, as may be specified in the notification.
Click here to view Notification: https://www.mca.gov.in/bin/dms/getdocument?mds=s3NAd1DMJP%252Bb4D3KxSkX1Q%253D%253D&type=open
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Pune ITAT holds that CBDT Circular No. 3 of 2022 dated 03.02.2022 specifying the need for a separate notification for importing the beneficial treatment from another DTAA cannot have a retrospective effect; Observes that once DTAA is notified all its integral parts, including Protocol, get automatically notified and there remains no need to again notify the individual limbs of the DTAA.
Department of Trade and Taxes has issued an update dated February 1, 2022, regarding indicative guidelines for the issuance of show-cause notices (SCNs). It has been brought to the notice of the Competent Authority that in several instances non-speaking & vague Show Cause Notices (SCNS) are being issued in violation of provisions of the GST Act and Rules made thereunder. In view of the above, it is important that proper diligence is made before the issuance of SCN’S by the Proper Officers.
Government has put in place a detailed disclosure framework for CSR spending by companies, with experts saying the move will help enhance transparency but at the same time, is also likely to increase the compliance burden. Form CSR-2 (Report on Corporate Social Responsibility) has been notified by the corporate affairs ministry.
CGST Act of 2017 includes a specific provision for "Compliance Rating Score". The Kerala State GST department has released this first document with respect to the score-card provision, which has not been released by the central government until now.
Reserve Bank Deputy Governor said they are even worse than Ponzi schemes and threaten the financial sovereignty of a country. Observing that crypto-technology is underpinned by a philosophy to evade government controls, he said they have been specifically developed to bypass the regulated financial system.
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Steps to withdraw application for cancellation of GST Registration :
In case you've applied for your GST Registration cancellation but for any reason, you want to withdraw the said application, then you may follow the below steps:
1. Go to the Common Portal and post login navigate through Services --> User Services --> View My Submissions
2. Click on the "Withdraw" button available beside your Application for Cancellation of Registration
3. Click on Confirm and your application will be withdrawn.
Source: GST Common Portal
#gstindiacare #gstupdates #portalupdate #gst
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Interest on blocking of ITC if restrictions is beyond one year under Rule 86A
Delhi HC in case of Fides Distribution Pvt. Ltd
1️⃣ Rule 86A(3) - Conditions of use of amount available in credit ledger, restriction shall cease to have effect after the expiry of a period of one year from the date of imposing such restriction.
2️⃣ Since ITC under Rule 86A of the CGST Rules, 2017 could have been blocked only for a period of one year, petitioner asking for grant of interest for blocking of ITC for more than one year. In the present case the blocking has been done for two years.
3️⃣ Next Date of hearing on 14.09.2022.
Reference Case Laws on Rule 86A
Krishna Fashion, Hon'ble Delhi HC
Barmecha Texfab Pvt. Ltd., Hon'ble Gujarat HC
Ambika Creation, Hon'ble Gujarat HC
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No Power of Negative Block for Credit to be availed in future: Gujarat HC directs GST Dept. to Refund of Rs.20 Lakh to Assessee* [Read Order]
Read More: https://www.taxscan.in/no-power-of-negative-block-for-credit-to-be-availed-in-future-gujarat-hc-directs-gst-dept-to-refund-of-rs-20-lakh-to-assessee/155056/
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Infosys releases Steps to Troubleshoot Error When using DSC [Read Guidance]
Read More: https://www.taxscan.in/infosys-releases-steps-to-troubleshoot-error-when-using-dsc/155127/
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Finance minister asked capital Sebi to prepare for any possible market turbulence in the wake of tapering by the US Federal Reserve, and also undertake “next-generation reforms” to ensure greater ease of doing business.
RBI extended the deadline for non-banking financial companies (NBFCs) to comply with new asset classification norms issued on November 12.Non-bank lenders will now be allowed to move to the new rules for recognising bad loans by September 30, 2022, as against March 31, 2022.
Final MEF PANEL for STATUTORY BANK BRANCH AUDIT for the Year 2021-22 is now released.
Check Your Firm’s RBI Category - Online MEF Link: https://app.meficai.org/panel
Extension of last date for CAG empanelment for 22-23 to 22.2.22. Hard copies by 28.2.22. Queries at sao2ca5@cag.gov.in pdc@icai.in.
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Blocking under Rule 86
Bombay HC in the case of Dee Vee Projects Ltd_ The Appellant.
1️⃣ The impugned order of blocking of the ECL of the petitioner is quashed and set aside.
2️⃣ The respondents are at liberty to consider invocation of power under rule 86-A of the CGST Rules, 2017, afresh in accordance with law.
3️⃣ The power under Rule 86A doesn't enable the authority to impose a blanket prohibition upon utilization of full credit available in the ECL.
Reference Case Laws on Rule 86A
Radha Krishan Industries Versus State of Himachal Pradesh
HEC India LLP Versus Commissioner of GST
_Maneka Gandhi Versus Union of India_
Swadeshi Cotton Mills Versus Union of India
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Guest Lecture in Educational Institutions Attracts 18% GST: AAR Karnataka
If you give guest lecture in any educational institution then there is important news for you. Now in the coming times, you will have to pay 18 percent Goods and Services Tax (GST) on the earnings earned by giving guest lectures as a guest. According to the news of PTI, the Karnataka Bench of the Advance Ruling Authority (AAR) has given this arrangement. The applicant Sairam Gopalkrishna had contacted AAR and asked whether the income from guest lectures comes in taxable service (GST on guest lecture).
It is not under exempted category of services
According to the news, while passing this order, the AAR said that such services come under other professional, technical and business services and are not under the exempted category of services. In such a situation, GST will have to be paid at the rate of 18 percent on such services. This order of AAR means that service professionals whose income is more than 20 lakh rupees will have to pay 18 percent GST on the earnings from guest lectures.
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Karnataka Govt. Blacklists 60 Chartered Accountants for committing Irregularities
Read More: https://www.taxscan.in/karnataka-govt-blacklists-60-chartered-accountants-for-committing-irregularities/155253/
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👉 Setup of ‘GST Refund Help Desk’ in the office of Pr. CCA, CBIC
https://www.gst.gov.in/newsandupdates/read/523
👉 LLP (Amendment) Rules 2022
https://www.mca.gov.in/bin/dms/getdocument?mds=5kJvpQFp31MPOQ2XlwM5Ug%253D%253D&type=open
👉 Publication: Handbook on Liquidation Process and Voluntary Liquidation Process under The Insolvency and Bankruptcy Code, 2016 by CIBC of ICAI
https://resource.cdn.icai.org/69207cibc100222.pdf
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Delhi High Court in case of Coforge Limited (formerly known as NIIT Technologies Ltd) vs. ACIT: ITA Nos.213- 214/2020 decided while reversing the decision of the Tribunal, held that demerger expenses under section 35DD of the Income Tax Act, 1961 (Ac”) are also allowable to the resulting company.
The GST regime could get the most comprehensive makeover since it was introduced in 2017. The revision may simplify the rate structure and seek to lift revenue for states. The GST compensation given to states will end in June. The restructuring, which will be implemented in phases, may cut down tax exemptions, introduce only three major tax slabs and remove anomalies from taxing raw materials and intermediates.
28.2.22 is the last date to file Annual Return (GSTR-9) for turnover above 2 cr & self certified Audit Report (GSTR-9C) for turnover above 5 cr for FY 2020-21.
Centre will take a proposal to the GST Council to levy GST on entities that provide a mining platform for cryptocurrency assets and those who use virtual digital assets as a medium of exchange in purchases. CBIC Chairman told Business Standard the proposal could be to tax these at the top bracket of 18 per cent.
ICAI will explore the use of blockchain technology in auditing, Technology will be a major focus of the Institute of Chartered Accountants of India (ICAI) as it not only disrupts but will also create opportunities. Artificial intelligence and blockchain technology will be the focus among the emerging technologies.
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Correction in GSTR-1: Relief to Appeallant
Bombay HC in the case of Mahle Anand Termal Systems Pvt. Ltd.
1️⃣ The Petitioner seeks an order and direction against the respondent to allow the petitioner to correct form GSTR-1 Return and Invoice by mentioning the correct GST No. Of their customers and other relief.
2️⃣ Inadvertently error occured in SAP wherein GSTIN remain to be corrected/updated.
3️⃣ The Hon'ble HC directed to consider the applicability of the circular 26/26/2017 and reference to below judgements.
Reference Case Laws cited
Madras HC in case of Pentacle Plant and Machineries Pvt. Ltd.
Madras HC in the case of Sun Dye Chem Vs. Assistant Commissioner
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