Changes in GST. CGST Act is going to change by CGST Amendment Act 2019.

Reaching the zero income tax level of ₹5 lakh

• If your taxable income is above ₹5 lakh, you can avoid paying tax by investing in certain investment instruments
• For this financial year, if your salary is ₹5 lakh, you can earn full rebate on your tax liability of ₹12,500

MUMBAI: Did you know you could pay zero taxes even if you earn more than ₹5 lakh? According

Analysis of recent clarification on GST Annual returns and Reconciliation statement

Table summarizing disclosures relating to debit note (DN) and credit note (CN) in various scenarios

S.No	Document type	Document dated	Reported in GSTR1/3B	To be Reported in GSTR 9 at	To be Reported in GSTR 9C at
1	CN	F.Y. 2017-18	F.Y. 2017-18	B2C- Table 4A B2B- Table 4I
2		F.Y. 2017-18	F.Y. 2018-19	Table 11
3		F.Y. 2018-19 pertaining to supplies  of F.Y. 2017-18 (Provision made in BoA in 2017-18)	F.Y. 2018-19	Table 11	FY 17-18 - Table 5E if impact not considered in Table 5A.
4		F.Y. 2018-19 pertaining to supplies  of F.Y. 2017-18 (Accounted in BoA in 2018-19)	F.Y. 2018-19	Will not appear in GSTR-9 of FY 2017-18. Will become part of GSTR-9 of F.Y 2018-19 in Table 4I.	Will not appear in GSTR-9C of FY 2017-18. Will become part of table 5A in GSTR-9C of F.Y. 2018-19.
5	Financial CN	F.Y. 2017-18	NA	NA	Table 5J - if impact not considered in Table 5A.
6		F.Y. 2018-19 but provision made in F.Y.2017-18	NA	NA	Table 5J - if impact not considered in Table 5A.
7		F.Y. 2018-19 but booked in F.Y.2018-19	NA	NA	Table 5J of GSTR-9C 2018-19
8	DN	F.Y. 2017-18	F.Y. 2017-18	B2C- Table 4A B2B- Table 4J
9		F.Y. 2017-18	F.Y. 2018-19	Table 10
10		F.Y. 2018-19 relating to supply of F.Y.2017-18 and provisioned in BoA in F.Y.2017-18	F.Y. 2018-19	Table 10	Table 5O if impact not considered in Table 5A.
11		F.Y. 2018-19 relating to supply of F.Y.2017-18 and  accounted in BoA in 2018-19	F.Y. 2018-19	Will become part of GSTR-9 of F.Y.2018-19 table 4J.	Will become part of GSTR-9C of  F.Y. 2018-19 in table 5A

difference to be explained in GSTR-9C. This clarification does not seem to be in line with the basic premise/ structure in which the information is demanded in the forms.. In case of RCM, even though the entry of expenditure relating is recorded in the FY 17-18, still it states that the details of taxes paid under RCM in FY 18-19 needs to be disclosed in the Annual returns to be filed in FY 18-19 even though the transaction pertains to FY 17-18. One must note that exactly opposite stand is taken for disclosure of details of outward supplies, wherein the details of taxes paid in FY 18-19 are reported in table 10 of Part V of the same annual return. This revised understanding of the disclosure mechanism would lead to unnecessary reconciliation differences, although it is clarified to report the differences in GSTR 9C with reasons.
H	Role of chartered accountant or a cost accountant in certifying reconciliation statement: There are apprehensions that the chartered accountant or cost accountant may go beyond the books of account in their recommendations under FORM GSTR-9C. The GST Act is clear in this regard. With respect to the reconciliation statement, their role is limited to reconciling the values declared in annual return (FORM GSTR-9) with the audited annual accounts of the taxpayer.	Post issue of this press release, there has been tremendous confusion as to the scope of the scope of auditor w.r.t to the submission of the reconciliation statement and certification of the same. In order to understand the scope, following possible situations to be considered: Possibility 1: Whether scope of auditor is to merely reconcile the number as per audited financial statement with the annual return? Possibility 2: Whether auditor has to legally validate the transactions contained in the books of account i.e. taxability, ITC eligibility, rate of tax etc. or merely proceed based on the tax treatment as per books of account? Possibility 3: Whether auditor is required to look beyond the books of account also i.e. to identify the transactions of deemed supply, cross charge, clandestine removal, bogus billings etc.? It has been clarified that the scope of auditor is to reconcile the value declared in the books of account with the GSTR-9. This indicates that the scope of auditor is as per possibility 1 explained above. However, in view of the authors, the scope of auditor cannot be confined to merely reconciliation as the term 'Audit' has a wide connotation under GST Act and while signing auditor is expected to acknowledge the declaration of details to be 'true and correct'. Therefore, if any non-compliance comes to the knowledge of the auditor in the course of performance of the reconciliation and the auditor come across any instances where ITC has been taken wrongly or tax has not been charged on the transactions appearing in the books of account, then it should report the same in GSTR-9C. Further, the press release does not specifically state to restrict or limit the scope of the auditors to be merely a reconciliation exercise, it however provides a major relief in as much as auditor is not required to look beyond books of account to identify and report the instances of non-compliance by auditee.
I	Turnover for eligibility of filing of reconciliation statement: It may be noted that the aggregate turnover i.e. the turnover of all the registrations having the same Permanent Account Number is to be used for determining the requirement of filing of reconciliation statement. Therefore, if there are two registrations in two different States on the same PAN, say State A (with turnover of Rs. 1.2 Crore) and State B (with turnover of Rs.. 1 Crore) they are both required to file reconciliation statements individually for their registrations since their aggregate turnover is greater than Rs. 2 Crore. The aggregate turnover for this purpose shall be reckoned for the period July, 2017 to March, 2018.	This was a much needed clarification whereby only the turnover from Jul '17 to Mar '18 would have to be considered for ascertaining whether the taxpayer has crossed the Rs. 2 crore aggregate turnover limit, requiring him to file GSTR-9C along with the audited financial statements. However, an exactly opposite view was taken by GSTN in a recently issued FAQ's wherein it was stated that the period of full financial year Apr'17 to Mar'18 must be considered for calculating the turnover limit of Rs. 2 Crore. However, in view of authors, since now the same is being clarified otherwise by the policy wing i.e. CBIC, therefore one may restrict the period of only Jul'17 to Mar'18 for computing the limit of Rs. 2 Crores. Further, aggregate turnover has to be seen at the PAN level.
J	Treatment of Credit Notes / Debit Notes issued during FY 2018-19 for FY 2017-18: It  may    be noted that no credit note which has a tax implication can be issued after the month of September 2018 for any supply pertaining to FY 2017-18; a financial/commercial credit note can, however, be issued. If the credit or debit note for any supply was issued and declared in returns of FY 2018-19 and the provision for the same has been made in the books of accounts for FY 2017-18, the same shall be declared in Pt. V of the annual return. Many taxpayers have also represented that there is no provision in Pt. II of the reconciliation statement for adjustment in turnover in lieu of debit notes issued during FY 2018-19 although provision for the same was made in the books of accounts for FY 2017-18. In such cases, they may adjust the same in Table 5O of the reconciliation statement in FORM GSTR-9C.	There were confusions as to the treatment of credit notes in the GSTR-9 and GSTR-9C. The clarification is a welcome to remove the ambiguity. For ease of reference and understanding, various scenarios of credit notes and debit notes are being explained in the tabular form below.
K	Duplication of information in Table 6B and 6H: Many taxpayers have represented about duplication of information in Table 6B and 6H of the annual return. It may be noted that the label in Table 6H clearly states that information declared in Table 6H is exclusive of Table 6B. Therefore, information of such input tax credit is to be declared in one of the rows only.	It has been clarified that the reclaim of credit reversed due to non-payment within 180 days will appear only once, either in table 6B or 6H.
L	Reconciliation of input tax credit availed on expenses: Table 14 of the reconciliation statement calls for reconciliation of input tax credit availed on expenses with input tax credit declared in the annual return. It may be noted that only those expenses are to be reconciled where input tax credit has been availed. Further, the list of expenses given in Table 14 is a representative list of heads under which input tax credit may have been availed. The taxpayer has the option to add any head of expenses.	It stated that reconciliation is required only w.r.t. expenses where ITC has been availed. Though there is lack of clarity whether the ITC has to be reconciled or the value of expense as per books and ITC ledger has to be reconciled. In our considered view it seems logical to reconcile the ITC, as reconciliation of the expense will not serve any purpose and will lead to no meaningful conclusions. Thereby, the auditor can reconcile the ITC availed as per books and that as per the annual return and disclose the expense figure as appearing in the ITC ledger as per the BoA.

Impact of proposed Minimum Public Shareholding raised to 35%

1. Capital Market Reforms

a. Bar on Minimum Public Shareholding (MPS) proposed to be raised from 25% to 35%

Introduction

The Finance Minister in her budget speech for the year 2019-20, has mentioned that she has already proposed SEBI to raise the current threshold of MPS in listed companies which is currently 25% to 35%. The said amendment when made effective can face huge reactions from

ATTENTION TAXPAYERS|BIG CHANGES IN GST FOR REGULAR DEALERS|GST NEW RETURN FOR COMPOSITE|GST INTEREST

Clarification about GSTR 9 & 9C (Press Release dt. 03.07.2019)

CBIC has come up with its 2nd Press Release dt. 03.07.2019, wherein it has tried to clarify certain issues
faced by taxpayer in filing of GST Anuual Return & GST reconciliation in Form GSTR 9 & 9C respectively.
Some important clarification is summarised as below:

FAQ on Companies Act 2013

> Chapter 1 Incorporation and Allied Matters
> Q1: What is SPICE?
> A1: SPICE refers to “Simplified Proforma for Incorporating Company Electronically”. It is a simplified integrated process for incorporating a company in Form No. INC-32 along with e-Memorandum of Association in Form No. INC-33 and e-Articles of Association in Form No.

Selection of chartered accountant firm for accounts management related services (amrs) at office of fads, fcs and cp department, government of maharashtra

• Food Civil Supplies and Consumer Affairs Department, Mumbai, Maharashtra (12 Jun 2019) selection of chartered accountant firm for accounts management related services (amrs) at office of fads, fcs and cp department, government of maharashtra
  Address :
  

Expression of interest (eoi) from chartered accountant firms for taxation services related to income tax, gst, 15ca/cb, utilization certificate and advisory services on matters related to fcra projects / accounts & audit of Indira Gandhi Institute Of Development Research

• Indira Gandhi Institute Of Development Research, Mumbai, Maharashtra (20 Jun 2019)

  Expression of interest (eoi) from chartered accountant firms for taxation services related to income tax, gst, 15ca/cb, utilization certificate and advisory services on matters related to fcra projects / accounts & audit
  Address :
  

Directorate General of GST intelligence detects GST evasion of Rs 300 crore in Nagpur zone

Nagpur: The Directorate General of GST intelligence (DGGI) Nagpur Zonal Unit Thursday said it has detected good and services tax (GST) evasion amounting to Rs 300 crore across Nagpur zone, which includes Vidarbha, Marathwada and Nasik regions of Maharashtra. The Directorate General of

Decisions of Ethical Standard board of ICAI

FYI 🙏
*Decisions of Ethical Standards Board*

A CA Firm may register itself on Udyog Aadhar, a web portal of Ministry Micro, Small and Medium Enterprises.

There is no prohibition for internal auditor of a company to acquire/purchase shares of the said Company.

It is *not permissible for a member to use WhatsApp to send messages to make people aware about his practice, and mention the services provided therein*.

A Chartered Accountant in practice being Director Simplicitor in a Company cannot sign ROC Forms of the Company as it is a direct conflict of role.

A Chartered Accountant in practice can act as Authorized Representative of a Foreign Company, provided he is not the auditor of the said Company.

It is permissible for two or more Chartered Accountants in practice collectively to have joint training session for their clients on GST, and share the fees collected from the clients thereof.

A chartered accountant in practice can provide services through kiosk only if the services provided are professional activities of a practicing chartered accountant, permitted under the Act.

A Chartered Accountant in service is allowed to take e-return registration if it does not conflict with employment obligation. However, he cannot certify the return.

In case where Chartered Accountant in practice is a non-executive director in a company, he or a Firm in which he is a partner, should not accept the appointment as a statutory auditor of a Company which is a joint venture of the original Company, as it would impact independence.

A Chartered Accountant in practice may be an equity research adviser, but he cannot publish retail report, as it would amount to other business or occupation.

A Chartered Accountant, who is a member of a Trust, cannot be the auditor of the said trust.

A Chartered Accountant in practice may engage himself as Registration Authority (RA) for

NCLT appoints Aneesh Nanavati of Deloitte as RP for Reliance Communications

Mumbai: The bankruptcy tribunal Friday approved the appointment of Aneesh Nanavati of Deloitte as the resolution professional for Reliance Communications and its two subsidiaries--Reliance Telecom and Reliance Infratel.

According to RCom's own admission, financial creditors have made claims worth

Govt unveils tough rules to prevent GST evasion

The Goods and Services Tax Council, led by finance minister Nirmala Sitharaman on Friday introduced more stringent norms to check tax evasion and extended the tenure of the National Anti-Profiteering Authority (NAA) by two years to November 2021.
The federal indirect tax body, at its first meeting in the second term of the Prime Minister Narendra Modi administration, also decided that Aadhaar-based GST identification will now be sufficient for GST registration.
Aadhaar-based registration will not only simplify the process but also improve ease of doing

RFP for Internal Audit of Cotton Corporation India Limited

• Cotton Corporation India Limited, MUMBAI (10 Jun 2019) Development Of Web Browser Based Software For Internal Audit System
  Address :
  

Newly appointed Auditor in chief of Pakistan already facing conflict of interest issues

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Illustration by Maria Huma

Syed Shabbar Zaidi has helped many rich businessmen pay as little tax as they could. Now, as chairman of the Federal Board of Revenue (FBR), he needs to extract the maximum from them.
For four decades, he has worked as a chartered accountant at one of Pakistan’s top accountancy firms, A.F. Ferguson, having risen through its ranks to become its senior partner in 2014. His clients have

Vacancy for CA in Infosys

Company: Infosys Limited India
Job ID/Ref Code: Inf_EXTERNAL_10023907_82
Skill(s): Financial Accounting
Experience Range: 01-03 years
Primary Location:

Chartered Accountant found Guilty of Misconduct for incorporating Company without permission of ICAI

The Appellate Authority has recently held that the incorporation of a Company by Chartered Accountant with 90% Shares without the prior permission of the Institute of Chartered Accountants of India (ICAI) can be professional misconduct.
The main allegation against the appellant was that he incorporated a Company without the prior permission of the Council of ICAI. It was alleged that he engaged in other business as a Director of

The FAA Just Banned Flights Over Iranian Air Space. Here's What Fliers Need to Know

United Airlines has canceled some direct flights after the Federal Aviation Administration banned U.S. carriers from Iranian airspace following Iran’s shoot-down of a high-altitude U.S. drone in the area.
Other airlines around the world are following suit and avoiding the area.
The FAA order comes after Iran shot down an unarmed RQ-4 Global Hawk surveillance drone on Thursday that was “operating in the vicinity of civil air routes above the Gulf of Oman,” according to

Filing income-tax returns? Here are the five key mistakes to avoid

Selection of incorrect return form and not disclosing income on which tax doesn't have to be paid are key mistakes

Individuals and Hindu Undivided Families constitute almost 98 per cent of e-filers. This category tends to be most prone to making mistakes while filing returns. Begin collecting relevant documents and file returns before the July 31 due date. Here are common mistakes to watch out for:

The GST Council in its 35th meeting today extended the date for filing annual returns

The GST Council in its 35th meeting today extended the date for filing annual returns under the Goods and Services Tax (GST) regime by two months to August 30. The Council also decided to introduce a new one-form new GST return filing system, which will be applicable from January 1, 2020. Today’s meeting of the Council was its first after the recently concluded general elections. The