Tax Audit under Section 44AB of Income Tax Act - Latest Significant Points

Folks,

Herewith I have given few pointers significant for Tax Audit. Your suggestions are welcome to gkr@icai.org

Tax Audit Report should be filed with the Return of Income before due date for filing of Return of Income.

However, due to electronic filing mechanism coming into existence, the Returns which are filed before due date of filing of Return containing details about Tax Audit date, Auditors’ name and address and their PANo are considered as tax audit compliant returns and penalty under section 271B can be avoided. If the Return is filed a day late and still it contains the date of audit report prior to due date still it will amount to non filing of tax audit return in time. As a precautionary measure, it is advisable to file tax audit report in such case with a covering letter with the concerned Assessing Officer in case of extraneous circumstances beyond the control of the management.

Period to be covered by the Auditor:

In many cases the companies adopt accounting year different from the uniform accounting year (financial year) as suggested under Income tax Act for various convenience factors. In such case tax audit should be conducted for the previous year relevant to the assessment year. Hence, tax auditors have to carry out tax

audit on the basis of the split information procured from two accounting period as per Companies Act and file Form No. 3CA as required in prescribed rule. [Circular No. 561 dtd 22.5.1990]

Incomplete Audit Reports - effect

The Government has decided that all cases where the information provided in the audit report is incomplete or such non committal replies are furnished so as to render the remarks or the report meaningless, should be reported by the Assessing Officer to the CIT. The matter thereafter, be taken up by the CIT to see if the

case reflects any professional negligence on the part of the accountants signing the audit report. Action for initiation of disciplinary proceedings in terms of section 288 of the I T Act should be immediately taken by the commissioner of Income tax with the approval of the Chief CIT, as the case may be.

The CBDT has issued instructions with immediate effect to the field officers to report any professional negligence on the part of the chartered accountants in preparing the tax audit report to the ICAI in terms of section 288, as the ICAI is entitled to institute proceedings against its member chartered accountants who

submit faulty tax audit reports. [Press release, New Delhi dated 10th Dec, 1999].

 

Happy Reading.

 

GKR

CPE Program at Palghat Branch of SIRC of ICAI - 23rd August 2011

Folks,

I am presenting a technical paper on the following topic at the Palghat Branch of SIRC of ICAI on 23rd August 2011 Saturday.

• SCHEDULE VI - Recent Changes in Companies Act.

My co-speaker will be CS.S.Dhanapal who will speak on recent changes in Circulars issued by MCA in the recent months.

GKR

CPE Seminar at The Pondicherry Branch of SIRC of ICAI - Saturday the 6th of August 2011

Folks,

I had presented a technical paper in Pondicherry Branch of SIRC of ICAI on August 6th 2011, Saturday on the following subject:

XBRL - Way Forward


Covering why, what, when, where, whom and How on XBRL.

The seminar is full day covering three sessions.

1. Survey, Search and Seizure - Practical aspects - by CA. V. Jagadisan

2. Schedule VI changes and E-filing under XBRL mode - by CS. S. Dhanapal

3. XBRL - Way Forward - CA. Gopal Krishna Raju

The seminar was well attended by 27 practising Chartered Accountants (oops..out of 38 only practicing CAs in Pondicherry).

My session was very well received by all the members,

GKR

CPE Program at Vijayawada Branch of SIRC of ICAI - 22nd JULY 2011

Dear Folks,

It was a fascinating experience in Vijayawada when presenting a technical paper in the Vijayawada Branch of SIRC of ICAI on the following topics:

1. Foreign Contribution Regulation Act, 2010 and Foreign Contribution Regulation Rules, 2011
2. Procedure for Bulk filing of XML (for Income Tax ITR e-filing)

The session started at evening 05:00 pm and went on till 09:00 pm for 4 Hour CPE credit. The session was divided into two technical sessions with a break in between.

A total of 45 participants attended the entire session. A mix of senior and young members participated in this unique CPE program.

The participation was exiting among the delegates. The entire seminar was coherently coordinated by the organisers and the Chairman of Vijayawada Branch of SIRC of ICAI.

GKR

Review of Entry Requirements for Chartered Accountancy Courses (First Time in History of ICAI, exemption given for ICSI & ICWAI qualified and semi qualified - a smart act)

ANNOUNCEMENT


8th July, 2011

Review of Entry Requirements for Chartered Accountancy Courses

The Council at its 306th meeting held from 7th to 9th June, 2011 had considered the recommendations of the Group Constituted by the President, in terms of the authority given to him at its 303rd Meeting held from 10-12 February, 2011 to review entry requirement for Chartered Accountancy Course and decided as under:-

(a) Exemption to Graduates/CWAs/CSs from appearing in Common Proficiency Test (CPT) Common Proficiency Test (CPT) be exempted for candidates who -

(i) are commerce graduates/post-graduates and have studied any three full papers of 100 marks each out of Accounting, Auditing, Mercantile Laws, Corporate Laws, Economics, Management including Financial
Management, Taxation including Direct Tax Laws, Indirect Tax Laws etc., Costing, Business Administration, Management Accounting and passed the graduate/post-graduate examination by securing in the aggregate a minimum of 55% of the total marks or its equivalent grade from any recognized Universities including Open Universities.

(ii) are other graduates/post-graduates not falling in the above category who have passed the graduation/post-graduation examination by securing in the aggregate a minimum of 60% of the total marks in the examination or its equivalent grade from any recognized Universities including Open Universities.

(iii) have passed the Intermediate level examination conducted by The Institute of Cost and Works Accountants of India or by The Institute of Company Secretaries of India.

It was also decided that the above exemption would also be applicable to students who wish to pursue Accounting Technician Course of the Institute.

(b) (i) Candidates who are exempted from CPT be allowed direct entry to articleship; or


(ii) Enrolment to Articleship after passing either of the Groups of IPCC Exam

The Council noted that three different alternatives routes have been recommended by the Group in respect of registration of articles and decided as under:-
(i) The existing criteria to continue for candidates who wish to join articled training through CPT route i.e. only after qualifying Group I of IPCC Examination.
(ii) Graduates/ Post Graduates who are exempted from CPT as per (a) (i) & (ii) above be allowed to commence their articled training directly. However, candidates passing Intermediate level examination conducted by the ICWAI/ ICSI may join articleship only after passing Group I of the IPCC Examination of the Institute.

(c) Provisional Registration for Students pursuing Graduation Course
The students pursuing final year of graduation be allowed for provisional registration to the Integrated Professional Competence Course (IPCC) and appear in the Integrated Professional Competence Examination (IPCE) only after appearing in the final year examination of graduation course and after completion of prescribed study period of 9 months from the date of registration to the IPCC.

Their provisional registration to the CA Course would be confirmed only after submission of satisfactory proof of their having passed the graduation course with the prescribed percentage of marks.

…………………..

It may kindly be noted that the above decisions of the Council will come into force subject to relevant provisions of the Chartered Accountants Regulations, 1988 being amended, and the approval of the Central Government, and public exposure as required by law for which the process is in progress.

Courtesy:  http://www.icai.org/

Rajamahendravarem Branch of SIRC of ICAI - July 23rd - CPE Program on XBRL

Dear Folks,

I was in Rajamahendravarem (Rajahmundhry) Branch of SIRC of ICAI for the first time to present a technical paper on XBRL - Way Forward.

The seminar was organised in a very special place somewhere 20 Kms from Tanuku Town (enroute from Vijayawada to Kakinada). Tanuku is a fertile place in West Godavari District.

The seminar was in 'Kanuru' in Vasavi Engineering College premises Seminar Hall. Congrats to the organisers. The seminar hall is in a college building second floor which was amidst agricultural and aquaculture fields.

More than 60 participants, in all the age group, 60% of  them are senior members. The participation level was very high especially when XBRL session was going on. Close to more than 30 students also attended the seminar. An attendance of 90 plus in a place like Kanuru is a record number.

Special thanks to the organisers for this oppurtunity.

The other papers presented there was:

1. Schedule VI new changes - CS. S. Dhanapal

2. Code of Ethics - CA. P R Suresh

3. Search and Survey - Practical Solutions for Issues raised - CA. Ramdev Bhutada

GKR

Nellore Branch of SIRC of ICAI - CPE Program in Foreign Contribution Regulation Act, 2010 and Foreign Contribution Regulation Rule, 2011

Folks,

I am presenting a paper in Nellore Branch of SIRC of ICAI on the following topic:

CHANGES IN FOREIGN CONTRIBUTION REGULATION ACT & BASICS IN XBRL

on Saturday 9th JULY 2011 from 05:00 pm to 08:00 pm.

The link for the information is given below: http://www.nellore-icai.org/

Kindly post your comments, suggestions and feedback to: gkr@icai.org

GKR

Tuticorin Branch of SIRC of ICAI - Two Day CPE Program on International Taxation

Folks,

I am presenting two technical papers in the Two day CPE seminar on International Taxation to be held on 25th and 26th JUNE 2011 at Tuticorin branch of SIRC of ICAI. The topics presented by me are the following two:

• International Taxation - A Blue Print
• Dividend, Interest, Capital Gains, Dependant and Independent Personal Services

The link below will give more details of the program.

http://www.icaituticorin.org/news-events-1.php?value=243

Happy Learning,

GKR

Salem Branch of SIRC of ICAI - 11th JUNE 2011 - CPE Program on FCRA

Folks,

I presented a paper on "Foreign Contribution and Regulation Act, 2010 and Foreign Contribution Regulation Rules, 2011".

Its a well attended gathering. Warm reception, very positive and vibrant feedback. Hope to do more such programs in the days to come in Salem.

Devising a full day program on "XBRL and related topics" for Salem Branch members in the month of JULY 2011.

GKR

Guntur Branch of SIRC of ICAI - Advanced Excel for Chartered Accountants

Folks,

On 12th and 13th May 2011, Guntur Branch is organising two day CPE program for Members in ADVANCED EXCEL.

The entire program is coordinated and presented by CA. GOPAL KRISHNA RAJU.

GKR

The invitation of the GUNTUR BRANCH OF SIRC OF ICAI is given below:

GUNTUR BRANCH OF SIRC OF ICAI, GUNTUR


CPE WORK SHOP ON ADVANCED EXCEL

You are cordially invited for two days work shop on Advanced Excel on 12.05.2011and 13.05.2011 of MAY 2011 at our branch premises. The work shop timings start 10 A.M -5 P.M on both days.

Faculty: CA.GOPAL KRISHNA RAJU FCA, AICWA, ACS, PGDOR, PGDFM, DISA

The following are the topics

1. Basics of Spreadsheet- Navigation, Toolbar, Range Names, Formatting, etc.,

2. Financial Functions

3. Data & Time Functions

4. Math Functions

5. Statistical Functions

6. Lookup & Reference Functions

7. Database Functions

8. Text Functions

9. Logical Functions

10. Information Functions

11. Round, Date, logical, Lookup, If, nested If, Count, Subtotal, Array

12. List Management-Sort, Filter ,Advanced Filter, Pivot Table, Import Data, Data Validation

13. Tools-Solver, Goal Seek, Scenario Analysis, protection, sharing

Both days will be dealt with practical illustrations faced by CAs in their day-to-day practice

The subject will be dealt while sitting with the individual computer

Work shop will be held at ITT Lab in our branch premises.

Each work shop is limited to 28 members.

Registration will be done on first com basis.

Delegate Fees: 800/-

Lunch will be served on both days.

CA K.V Brahmum CA A.Leela Krishna Murthy

Branch Chairman Branch Secretary