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Sivakasi Branch of SIRC of ICAI Newsletter- January 2018
1 For Private Circulation Only
CHAIRMAN’S MESSAGE
Dear Members
Iam happy to share my views though this column.
CPE PROGRAMS
We had two CPE programs in Dec17. First one was on “New Form
WW”.Our member CA. Sundarajan explained the silent features of the New Form in
a simplest way. He is one of our distinguished members who took classes for GST
officials and acting as ambassador of our profession. We feel proud of him. The
second one was on “Insolvency and Bankruptcy code”. The speaker was
CA.R.Sundaram, Madurai. He shared his views and rich experience in this field.
After his speech many members showed interest to become “Insolvency
Professionals”. I request interested members may please register your names with
branch. If the numbers are adequate, we will start certificate course on IP at branch.
SIRC REGIONAL CONFERENCE
More than 20 of our members attended SIRC Regional Conference at
Bangalore. It was a proud moment that all of us went to stage and received
prestigious Best branch and Best SICASA Award (16-17) from Karnataka State
Minister. On 31st, we honored our past chairman CA R Sureshkumar and Past
SICASA Chairmen CA.Giridhar and CA.Anuradha Giridhar for their dedicated
works in getting the above awards.
6th SPORTS DAY
I must fail in my duty if not appreciated our SICASA Chairman CA. Selvaraj
and his team. Our branch celebrated 6th sports day on 31st Dec 2017. SIRC – SICASA
Chairman CA.Jalapathy was the chief Guest. Throughout the day the branch looked
festive and happiness everywhere. I congratulate the entire team who made that
day memorable in the history of our branch.
I wish you a happy, healthy and prosperous New Year.
Thanking you
Yours in Profession,
CA. M. Abdul Nasser
CHAIRMAN MESSAGE
Sivakasi Branch of SIRC of ICAI Newsletter- January 2018
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Dear Members, ,
Greetings. Completion of CPE hours for the year 2017 is extended upto 28th February. If you didn't complete your CPE requirements, Finish it before Feb.28th.
Thanking You Yours faithfully,
S.Palanichamy Secretary.
Dear members,
Hearty Greetings. I am really happy to address through the newsletter. By
this time everyone would have completed the VAT audit. I request the members &
students to contribute to the newsletter. Happy Pongal & my Best wishes to all the
CPT & Final students for their results.
With Best Wishes, CA.K.Giridhar
SECRETARY’S MESSAGE
EDITOR’S MESSAGE
Sivakasi Branch of SIRC of ICAI Newsletter- January 2018
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-CA. Rajendra Kumar P, FCA, Chennai
If you are availing input tax credit in GST the Government has fixed a credit
period of 180 days. Kindly read the below mentioned steps and follow the same to
be on the right side of the law.
Step 1
If you are availing input tax credit (ITC) then check whether payment (value plus
tax) has been made (in full or part) to the supplier for the supply of Goods or
Services or Both within 180 days from the date of invoice.
If payment is not made (in full or part) within 180 days from the date of invoice then
go to Step 2.
Step 2
Reverse that amount of ITC credit availed (either in full or in part) and add the same
to the output tax liability ledger after the expiry of 180 days.
Proceed to Step 3.
Step 3
Interest at the rate of 18% per annum has to be paid on the value of ITC reversed as
per Step 2.
Interest has to be calculated for the number of days commencing from the date of
availing the ITC in the books of accounts till the date of adding the ITC to the
output tax liability ledger.
Step 4
On the date the payment as discussed in Step 1 is made to the supplier the ITC so
reversed can be availed as credit again. However, the Interest paid shall be cost.
Any clarification on the above steps may be emailed to [email protected] or
what’s app on 9444017087.
GST - IMPORTANT ISSUE TO BE CONSIDERED FROM DECEMBER ONWARDS
Sivakasi Branch of SIRC of ICAI Newsletter- January 2018
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CPE Hours Requirements for the Block Period of 3 years (1-1-2017
to 31.12.2019) to be complied with by different categories of Members:
All the members (aged less than 60 years) who are holding Certificate of
Practice (except all those members who are residing abroad) are required to:
1. Complete at least 120 CPE credit hours in a rolling period of three-
years.
2. Complete minimum 20 CPE credit hours of structured learning in
each calendar year.
3. Balance 60 CPE credit hours (minimum 20 CPE credit hours in each
calendar year) can be completed either through Structured or
Unstructured learning (as per Member’s choice).
All the members (aged less than 60 years) who are not holding Certificate of
Practice; and all the members who are residing abroad (whether holding
Certificate of Practice or not) are required to:
1. Complete at least 60 CPE credit hours either structured or
unstructured learning (as per Member’s choice) in rolling period of
three-years
2. Complete minimum 15 CPE credit hours of either structured or
unstructured learning (as per member’s choice) in each calendar
year.
All the members (aged 60 years & above) who are holding Certificate of Practice,
are required to:
1. Complete at least an aggregate of 90 CPE credit hours of either
Structured or Unstructured Learning (as per member’s choice) in a
rolling period of three years
2. Complete minimum of 20 CPE credit hours being an aggregate of
either Structured or Unstructured Learning (as per member’s choice)
in each calendar year
CPE HOURS REQUIREMENTS
Sivakasi Branch of SIRC of ICAI Newsletter- January 2018
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2. The following class of members are exempted from CPE credit hours
requirement:
1. All the members (aged 60 years and above) who are not holding
Certificate of Practice.
2. Judges of Supreme Court, High Court, District Courts and Tribunal
3. Members of Parliament/MLAs/MLCs
4. Governors of States
5. Centre and State Civil Services
6. Entrepreneurs (owners of Business (manufacturing) organizations
other than professional services)
7. Judicial officers
8. Members in Military Service
3. Temporary Exemptions:
1. Female members for one Calendar year on the grounds of pregnancy
2. Physically disabled members on case to case basis having permanent
disability of not less than 40% and above (Supported with medical
certificates from any doctor registered with Indian Medical Council
with relevant specialization as evidenced by Post Qualifications
(M.D., M.S. etc.).
3. Members suffering from prolonged critical diseases/illnesses or
other disability as may be specified or approved by the CPEC.
(Supported with medical certificates from any doctor registered with
Indian Medical Council with relevant specialization as evidenced by
Post Qualifications (M.D., M.S. etc.).
Sivakasi Branch of SIRC of ICAI Newsletter- January 2018
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Companies Amendment Act 2017
The Companies Act 2013, at its commencement stood for the 2 alphabets of
Accountability, Corporate Governance and Transparency. In the last 4 years, these
alphabets now stand to mean Amendments and alterations, Circulars and Changes
and Transitions. Welcome to yet another edition of changes with the approval of the
Companies Amendment Act 2017
The Government of India constituted The Companies Law Committee in June
2015 to provide recommendations on the issues arising out of implementation of the
Companies Act 2013. The Committee submitted its Report to the Government on 1st
February 2016.The Bill was passed by Lok Sabha on 27 Jul 2017 and the Rajya Sabha
on 19 December 2017 and received the Presidential assent thereafter. The Central
Government notified the Companies (Amendment) Act, 2017 (Amendment Act) on
3rd January, 2018. The provisions of this Amendment Act shall come into force on the
date or dates as the Central Government may appoint by notification(s) in the
Official Gazette
The amendments can be categorised into the following broad segments
Definitions
Loans and Investments
Related Party Transactions
Directors, Board related
Managerial Remuneration
Corporate Social Responsibility
Dividend related
Financial Reporting
Audit and Auditors
Acceptance of Deposits
Other Matters
In this edition let us examine some key changes that impacts our profession
COMPANIES AMENDMENT ACT 2017
Sivakasi Branch of SIRC of ICAI Newsletter- January 2018
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1. Sec 2(41) – Uniform Financial Year
Under the Companies Act 2013, only companies which were holding or subsidiary
of a company incorporated outside India could apply for a different financial year.
Now Companies which are associates or joint ventures of a Company incorporated
outside India can now approach NCLT for adopting a different financial year
2. Preparation of CFS – Sec 129 (3)
Companies having Joint ventures although they have no subsidiaries will still be
required to prepare consolidated financial statements. Such CFS shall be prepared
as per the applicable Accounting Standards
3. Signing of financial Statements – Sec 134(1)
The previous act permitted CEO’s to sign financial statements only if she / he was a
director in the Company. This requirement of being a director has now been
dispensed with
4. Annual General Meeting of an unlisted company - Sec 96
Presently, a company is required to hold its Annual General Meeting at its
Registered Office.As per the amendment now, the Annual General Meeting of an
unlisted company may be held at any place in India if consent is given in writing or
by electronic mode by all the members in advance.
5. Ratification of appointment of auditor in Section 139(1)
The Provision that the company shall place the matter relating to such appointment
for ratification by members at every annual general meeting has been omitted
6. Rationalisation of Penalties on the Audit Profession
Penalties under the Act had no co-relation to the audit fees and these have now been
rationalised by the Companies Amendment Act 2017. For instance, the penalty for
non filing of resignation is tabulated below. Similar modifications have been made
for penalties for contraventions of section 139, 143, 144 or 145. This has since been
linked to audit fees or Rs 5 lakhs whichever is less
Sivakasi Branch of SIRC of ICAI Newsletter- January 2018
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Previous After Amendment
(3) If the auditor does not comply with
sub-section (2), he or it shall be
punishable with fine which shall not
be less than fifty thousand rupees but
which may extend to five lakh rupees.
(3) If the auditor does not comply with sub-
section (2), he or it shall be punishable with
fine which shall not be less than fifty
thousand rupees or the remuneration of
the auditor, whichever is less,
7. Provisions relating to reopening of Accounts under Sec 130
There are two important changes in relation to Reopening of accounts on Court or
Tribunal Order. One , there appears to be a provision for the auditor for an
opportunity to be heard and two, there is a restriction that such re-opening cannot
generally exceed 8 years unless there is an order of the Central government for a
longer period ( under Sec 128 (5) – investigation )
8. Auditor Reporting under Managerial Remuneration
A new Sec 197(16) has been introduced for reporting on managerial remuneration as
under. However this is similar to the requirement under CARO 2015 and further
clarification on this duplication is awaited
“The auditor of the company shall, in his report under section 143, make a statement
as to whether the remuneration paid by the company to its directors is in accordance
with the provisions of this section, whether remuneration paid to any director is in
excess of the limit laid down under this section and give such other details as may be
prescribed”
To be continued
-Sripriya Kumar
Sivakasi Branch of SIRC of ICAI Newsletter- January 2018
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Mock Test II for CA CPT December 2017 Exam on 10th December 2017
CPE Seminar on New Form WW“on 9th December 2017
Inauguration of “ICITSS- Orientation Course I Batch” on 18th December 2017
Career Counselling Programme at “Velankanni madha Hr.Sec School, Sivakasi” on 21st December 2017
EVENTS DECEMBER 2017
Sivakasi Branch of SIRC of ICAI Newsletter- January 2018
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“SRESTATHA“49th Regional Conference of SIRC of ICAI at Bangalore on 22nd and 23rd December 2017
Investors Awareness Programme at ICAI Bhawan,Sivakasi on 30th December 2017
CPE Seminar on “Insolvency and Bankruptcy Code” on 31st December 2017
Sivakasi Branch of SIRC of ICAI Newsletter- January 2018
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03.01.2018 – Inaguration of AICITSS - Advanced IT Batch I 13.01.2018- 3Hrs CPE Seminar on “Professional Ethics and Professional Development” 27.01.2018- SIRC Chairman Official Visit and 6 Hrs CPE Seminars on “International Taxation”
FORTHCOMING EVENTS