The weekly messenger | Edition 24.17
This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.
Accounting News
IASB proposes amendments to IAS 16 to reduce diversity in practice- 20 June 2017
The International Accounting Standard Board (IASB) has proposed an amendment in International Accounting Standard (IAS) 16 “Property, Plant and Equipment” that the deduction of sales proceeds from the cost of an item of property, plant and equipment while that asset is being made available for use would be prohibited. Instead, the company would be required to recognise such sales proceeds and related costs in profit or loss.
Comments to be received by 19 October 2017.
For more information, click here.
June 2017 IFRIC Update published – 21 June 2017
June 2017 International Financial Reporting Interpretations Committee (IFRIC) interpretations update contains the discussions on the following topics:
- International Financial Reposting Standard (IFRS 9) Financial Instruments – Modification or exchange of financial liabilities that do not result in derecognition;
- IAS 23 Borrowing Costs – Borrowing costs on completed qualifying assets;
- IFRS 3 Business Combinations – Acquisition of a group of assets that does not constitute a business
- IAS 28 Investments in Associates and Joint Ventures – Acquisition of an associate or joint venture from an entity under common control, etc.
For more information, click here.
Draft guidance on the IFRS for SMEs Standard published for public comment – 26 June 2017
IFRS Foundation has published draft guidance on IFRS on Small and medium enterprises (SMEs) Standard. It has been developed by SME Implementation Group, in the form of Q&A document and addresses the accounting treatment for a financial guarantee issued by a parent company in their separate financial statement.
Comments are to be received by 1 September 2017.
For more information, click here.
Regulatory News
Companies (Audit and Auditors) Second Amendment Rules, 2017- 22 June 2017
Central Government (CG) has amended the “Companies (Audit and Auditor) Rules, 2014” with the “Companies (Audit and Auditors) Second Amendment Rules, 2017” wherein it has revised the limits required to be checked for the purpose of rotation of auditors in case of private companies. Earlier, as per clause (b) of Rule 5 of the principal rules, the provisions w.r.t. the rotation of auditors were applicable in case of those private companies whose paid up share capital was Rs. 20 cr. or more. However, now this limit has been increased from Rs. 20 cr. to 50 cr. Therefore, now onwards the private companies having a paid up share capital less than Rs. 50 cr. would be exempt from the rotation rules, as against 20 cr. earlier.
This notification is effective from the date of publication in the official gazette (i.e. 22 June 2017).
For more information, click here.
Commencement Date of certain sections of the IGST Act– 19 June 2017
CG has appointed 22 June 2017 as the date on which provisions of sections 1,2,3,14,20 and 22 of the Integrated Goods and Services Tax (IGST) Act shall come into force.
For more information, click here
CGST Rules, 2017 – 19 June 2017
CG has issued Central Goods and Service Tax (CGST) Rules, 2017. These rules inter-alia includes:
- Definitions;
- Composition Rules;
- Registration norms etc.
These rules shall come into force from 22 June 2017.
For more information, click here
All States/UTs except the State of Jammu & Kashmir, approves the State GST Act and are ready for the smooth roll-out of GST w.e.f. 1st July, 2017- 21 June 2017
All the States and Union Territories (UTs) (having assemblies), except Jammu & Kashmir, have approved the State GST Act. Thus, almost the entire country is now on board and ready for the smooth roll-out of GST with effect from 1 July 2017.
For more information, click here.
Commencement Date of certain sections of the UGST Act – 21 June 2017
CG has appointed 22 June 2017 as the date on which provisions of sections 1,2,3,4,5,17,21 and 22 of the Union Territory Goods and Service Tax (UGST) Act shall come into force.
For more information, click here
Further GST Updates
The Central Board of Excise and Customs has issued certain rules and formats, whose links are as follows;
For Advance Ruling-Rules, click here;
For Advance Ruling-Formats, click here;
For Anti Profiteering Rules, click here;
For Appeals and Revision Rules, click here;
For Appeals and Revision Formats, click here;
For Assessment and Audit Rules, click here;
For Assessment Formats, click here;
For Audit Formats, click here;
For e-way Rules, click here.
Service Tax (Fourth Amendment) Rules, 2017 – 22 June 2017
CG has notified that the service tax return for the quarter ended 30 June 2017 shall be submitted by 15 August 2017 in Form ‘ST-3’ or ‘ST-3C’ and the revised return for the same period shall be submitted within 45 days from the date of submission of original return.
For more information, click here.
CBDT notifies Rule 10CB for Secondary Adjustments under Section 92CE of IT Act, 1961-19 June 2017
The Central Board of Direct Taxes (CBDT) has notified Rule 10CB for operationalizing the provisions of secondary adjustment as given in section 92 CE of the Income Tax (IT) Act, 1961. It prescribes time limit for repatriation of excess money and interest rate to be applied for computing the income in case of failure to repatriate the excess money within the prescribed time limit.
For more information, click here.