My dear esteemed Professional Colleagues, |
I would like to wish a very happy Samvat Year 2074 to all of you, which has started from 20th October 2017. As someone has said before, I too would ask you to write it on your heart that every day is the best day in the year. Let the months and days of the New Year be full of happiness, smiles and hopes. G. K. Chesterton says that hope means hoping when everything seems hopeless. We just require to trust our hard work and determination. At ICAI, we always have a brave vision and examples of excellence, to look up to and follow. |
In India, the short-term impact of recent structural reforms of demonetisation and GST rollout appears to be reducing. Recent manufacturing data indicates that India’s growth story will soon be back on a sound track. In view of the recent slowdown in the national economy, the recently-reconstituted Economic Advisory Council to the Prime Minister, in its first meeting, identified 10 priority themes to revive growth and employment in the coming six months that include- economic growth, employment and job creation, informal sector and integration, fiscal framework, monetary policy, public expenditure, institutions of economic governance, agriculture and animal husbandry, patterns of consumption, and production and social sector. Martin Luther King, Jr. had said: We must accept finite disappointment but never lose infinite hope. As the world economy is moving up, India too will see a highergrowth trajectory soon. India has to seize the initiative to grow even faster. |
GST Implementation-An Update |
As you know, India rolled out a new indirect taxes regime in form of the goods and services tax on 1st July 2017, shedding a complex multiple tax system in favour of a unified one. The GST revenue for the month of August is 90,669 crore, though slightly less than that collected in July 2017, which is beyond expectations of the Government. |
Recommendations of SEBI’s Committee on Corporate Governance |
SEBI’s constituted Committee on Corporate Governance formed under the chairmanship of Shri Uday Kotak to improve the standards of corporate governance of listed companies in India, has submitted its report recently on 5th October 2017. ICAI as a member of the Committee actively participated in the deliberations. In its report, the Committee has submitted a number of recommendations to further improve the corporate governance structure prevalent in corporate India, which include separation of roles of non-executive Chairperson and Managing Director/CEO, Chairperson of a listed company to be a non-executive Director, Board of Directors to have a minimum of six Directors, and listed companies to have one independent woman Director on its Board, among others. |
Representations Submitted to CBDT |
Certain issues regarding intimations received by the assessees in respect of the proposed adjustment made under Section 143(1)(a), subsequent to the filing of income-tax returns for AY 2017-18, had been brought to the notice of ICAI. Accordingly, ICAI submitted a representation to CBDT (Central Board of Direct Taxes) requesting it to consider and address the hardships being faced by the members and the assessees. The request has been favourably considered and CBDT has issued an instruction dated 11th October 2017, directing that the provision of Section 143(1)(a)(vi) of Income-tax Act would not be invoked to issue an intimation proposing adjustment to the income/loss filed in the ITR-1 Form in specified situations. |
Bombay High Court Condones Delay of 8-Plus Years in Filing Appeal |
Recently, Bombay High Court in its judgement dated 19th September 2017, in a case Vijay Vishin Meghani v DCIT, has condoned the delay of 2984 days in filing appeal and also reprimanded ITAT Mumbai for unwarranted observations on Chartered Accountants. As you may be aware, in the case of an assessee, who was rendering services to a foreign bank from India and who had claimed a deduction under Section 80-O of the Income-tax Act, 1961, ITAT Mumbai while refusing the condonation of delay, had passed some negative remarks against ICAI and CA professionals. ICAI Council had taken up this matter in September 2014 and got the order of ITAT Mumbai modified in September 2015. ITAT Mumbai had clarified that none of its observations in the said order was intended to criticise or should be construed as criticising the functioning of ICAI, and that the Tribunal had applauded the strict standards followed by the ICAI in imparting education and training. |
31st GASAB Meeting in New Delhi |
At the recently-held 31st meeting of the Government Accounting Standards Advisory Board (GASAB) in New Delhi, draft Guidance Note on Fixed Assets Recording and Accounting and draft Strategic Development Plan 2017-20, among others, were discussed. As you know, GASAB formulates Accounting Standards for the Central and State Government(s) in India. My Central Council colleague CA. M. P. Vijay Kumar represented the Institute at the GASAB meeting. The aforementioned draft Guidance Note prescribes standardised disclosure on the accounting of fixed assets, whose comprehensive and proper records are considered critical stepping stone for moving towards accrual-based accounting in the government sector. ICAI has offered its members’ services to help various State Governments in this mammoth exercise of collation of data and recording of fixed assets. ICAI has also suggested the Board to set a broad timeline for adopting the accrual accounting in Government. |
Interactive Programme of IIIPI and IBA |
To streamline the financial stress resolution process, the Government has sought to replace a plethora of legislations by enacting the Insolvency and Bankruptcy Code, 2016. ICAI IPA, i.e, Indian Institute of Insolvency Professionals of ICAI (IIIPI), is of the view that apart from appropriate legal or accounting enablers, the resolution exercise requires a comprehensive and effective operational process. In view of this, IIIPI is engaging with the insolvency professionals (IPs) while proposing to cover other user-groups to improve the coordination, quality, delivery and speed of resolving the insolvency cases. |
Meeting with CII National Committee of CFOs |
I along with my Central Council colleague CA. Prafulla Chhajed met the Chairman of CII National Committee for CFO Shri R. Shankarraman on 26th September 2017 in Mumbai, where issues with regard to the expectations of corporates and industries, especially from the freshly qualified chartered accountants and their capacity-building, were discussed. Views were also expressed on how CA students, in process of becoming the chartered accountants, could be trained and empowered in line with the industries’ expectations. |
Training Programme for Income Tax Officers |
A training programme on Ind AS and ICDS was organised recently for the officers of Income Tax Department of Faridabad and Gurugram jointly by ICAI and the Direct Taxes Regional Training Institute of Chandigarh. Sessions were addressed by my Central Council colleagues CA. Sanjay Agarwal, CA. Dhinal Shah, CA. Sanjiv Chaudhary and CA. Nandkishore Hegde. |
ICAI International Conference in December |
As you know, ICAI is organising its 2017 International Conference on the theme of Accountancy Profession: Convergence and Sustainability in Digital Era in Mumbai. The Conference will provide a platform to both national and international accounting professionals to get together and share their views in the areas of Accounting and Auditing Standards, Integrated Reporting, transparent regulatory regime, new frontiers in direct taxes like GAAR and BEPS, GST, Capital and Financial Market developments and the impact of Digital revolution, among others. I am sure this Conference will prove to be a great learning experience for all participants. Let us all participate and make this Conference a grand success. |
11th ICAI Awards 2017 |
I am happy to inform that 11th ICAI Awards 2017, to be given in eight categories, will be organised in Mumbai on 19th January 2018 to recognise the CAs in industry and business who demonstrate professional excellence, create value for their companies and stakeholders on sustainable basis, become exemplary role models for other CAs in industry and business and contribute to society. Nomination process will remain open till 30th November 2017. Details (i.e. categories, eligibility criteria, award process, guidelines, etc.) in this regard are available at https://awards.icai.org/icaiawards/. |
Visit to Aurangabad, Jalgaon, Dhule and Nashik Branches of WIRC |
After a long time, I got the opportunity to visit four of our Branches in the Western Region, viz. Aurangabad, Jalgaon, Dhule and Nashik Branches, where I interacted with the members on various issues vis-àvis the profession, including GST and ICDS. Members were able to appreciate the work being done by the Institute. We reaffirmed our commitment to the Swachh Bharat Mission at Aurangabad Branch, a delegation of various trade and industry associations met us and made us abreast with the challenges of the GST faced especially by the SMEs and small traders and businesses. On behalf of the Institute, I have assured them that most of their issues have already been and will be further escalated by ICAI to the authorities for resolution and smooth implementation of the GST. |
Campus Placement for Newly Qualified CAs |
46th edition of the campus placement programmes held in August-September 2017 where 105 companies participated and newly-qualified Chartered Accountants secured 1068 offers, with an average salary of 8.48 lakh per annum and the highest package of 20 lakh per annum. |
Seeking MCA to Intervene in Designating CA |
Qualification as Equivalent to Post-Graduation ICAI has recently written to the Ministry of Corporate Affairs seeking its intervention in designating the CA qualification as equivalent to postgraduate and CA-Intermediate as graduate degree in the university education system. This will help our professional colleagues in pursuing higher studies and facilitate them in their global mobility. Besides, this will also boost and improve our overall contribution to the profession and academics globally. |
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One of the three sister institutions and the regulator of profession of the company secretaries in India, the Institute of Company Secretaries of India entered its Golden Jubilee year. On behalf of ICAI and our professional fraternity, I congratulate them. |
CA. Nilesh S. Vikamsey President, ICAI Mumbai, 25th October 2017 |
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