Internal Auditor not to undertake Goods and Service Tax (GST) Audit simultaneously

We have received enquiries from the members at large and other stakeholders as to whether an internal auditor of an entity can also undertake GST Audit of the same entity as required under the Central Goods and Service Act, 2017.

The Council of the Institute, while considering the issue at its 378th Meeting held on 26th and 27th September, 2018, noted its earlier decision taken at its 281st Meeting held from 3rd to 5th October, 2008, that internal auditor of an assesee, whether working with the organization or independently practising Chartered Accountant being an individual chartered accountant or a firm of chartered accountants, cannot be appointed as his Tax auditor (under the Income Tax Act, 1961).

Upon consideration, the Council has decided that based on the conflict in roles as statutory and internal auditor simultaneously, the bar on internal auditor of an entity to accept tax audit (under Income Tax Act, 1961) will also be applicable to GST Audit (under the Central Goods and Service Act, 2017).

Accordingly, it is clarified that an Internal Auditor of an entity cannot undertake GST Audit of the same.

1. Aadhaar mandatory for filing of IT returns and allotment of Permanent Account Number;

2. Not mandatory to link Aadhaar to bank accounts;

3. Telecom service providers can’t seek linking of Aadhaar;

4. Nothing in Aadhaar Act that violates right to privacy of individual

5. SC upholds passing of Aadhaar Bill as Money Bill by Lok Sabha;

6. No child can be denied benefits of any schemes on not being able to bring their Aadhaar number;

7. Government not to give Aadhaar to illegal immigrants

8. CBSE, NEET, UGC cannot make Aadhaar mandatory, also not compulsory for school admissions;

9. Aadhaar authentication data cannot be stored for more than six months;

10. SC Constitution Bench strikes down the National security exception under the Aadhaar Act

11. Section 57 of Aadhaar Act permitting private entities to avail Aadhaar data struck down

12. Robust data protection regime has to be brought in place as early as possible, says Justice Sikri in majority verdict

13. There is sufficient defence mechanism for authentication in Aadhaar scheme: Justice Sikri

14. The concept of human dignity has been enlarged in the judgement, says Justice Sikri

15. SC declares Aadhaar scheme as constitutionally valid

16. There is no possibility of obtaining a duplicate Aadhaar card: Justice Sikri

17. It is better to be unique than being best; Aadhaar means Unique: SC

18. SC says there has been minimal demographic and biometric data collected by UIDAI for Aadhaar enrolment

19. Attack on Aadhaar by petitioners is based on violation of rights, will lead to a surveillance State

The revenue department today deferred implementation of a reporting norm for tax auditors wherein they were required to furnish details of Goods and Service Tax (GST) and general anti-tax avoidance rules (GAAR) till March 31, 2019.

MCA wide notification dated 31st July, 2018 amended the Companies (Accounts) rules, 2014

Amongst other things, it has been made mandatory for the Board to include a statement in its report with respect to status of compliance with the provisions relating to the constitutions of Internal Complaints Committee under the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013.

For this purpose, below are provisions regarding constitutions of Internal Complaints Committee:

i. One presiding officer, who shall be a woman, employed at a senior level by the employer

ii. Two members from amongst the employees, who are committed to the cause of women, or who has experience in social work or have legal knowledge

iii. One member from any NGO, operating in the area of cause of women.

Employer has to make sure not less than fifty percent of total members of the Committee are women.

Term of office of presiding officers and members of the Committee cannot be more than three years.

http://www.mca.gov.in/…/companisAccountsRules_31072018.pdf

MCA.GOV.IN

www.mca.gov.in

Companies (Significant Beneficial Ownership) Rules, 2018:

Every Individual holding 10% or more beneficial interest in the share capital of the company shall file a declaration in Form No. BEN-1 to the company within 90 days from commencement such rules and within 30 days in case of any change in his significant beneficial ownership. Therefore the due date of filing form BEN-1 is on or before 12th Sep 2018.

Thereafter, the company shall file a return in Form No. BEN-2 with the ROC, within 30 days from the date of receipt of BEN-1. Therefore the due date of filing form BEN-2 is on or before 11th Oct 2018.

Meaning of Significant Beneficial Owner

‘Significant Beneficial Ownership’ in case of member of the Company is not an individual or natural person:

(i) where the member is a company, the significant beneficial owner is the natural person, who holds not less than 10%. share capital of the company or who exercises significant influence or control in the company through other means;

(ii) where the member is a partnership firm, the significant beneficial owner is the natural person, who holds not less than 10% of capital or has entitlement of not less than ten per cent. of profits of the partnership;

(iii) where no natural person is identified under (i) or (ii), the significant beneficial owner is the relevant natural person who holds the position of senior managing official;

(iv) where the member is a trust (through trustee), the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with not less than 10% interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership.

2. The GST Council decided to reduce the biggest niggle for businesses by allowing Quarterly Filing of returns by those with Annual Turnover of up to Rs 5 crore, a move that will benefit nearly 90% taxpayers.

3. GST Council approved the proposal to open the GST migration window for taxpayers, who received provisional IDs but could not complete the migration process. The taxpayers who filed Part A of FORM GST REG-26, but not Part B of the said FORM are requested to approach the jurisdictional Central Tax/State Tax Nodal Officers with the necessary details on or before 31st August, 2018.

4. After Big Rate Cuts by GST Council, Only 35 Goods Left in 28% Tax Bracket. There were around 226 Goods in the 28% category when GST was implemented on July 1, 2017.