The weekly messenger | Edition 26.17
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
ITFG Clarification Bulletin 10 – 6 July 2017
Indian Accounting Standards (Ind AS) Transition Facilitation Group (ITFG) of Ind AS (IFRS) Implementation Committee has been constituted to provide clarification on various issues related to applicability and/or implementation of Ind AS under the Companies (Ind AS) Rules, 2015, raised by preparers, users and other stakeholders. Recently, ITFG has issued the tenth set of clarifications. This bulletin contains clarifications on following significant matters:
- Accounting treatment of the differential in the carrying value of loan given by parent to its subsidiary under previous generally accepted accounting principles (GAAP) and its present value in standalone financial statement of the parent;
- Accounting treatment of the processing fees belonging to undisbursed term loan amount as on the transition date;
- Recognition of the deferred tax asset on the tax deductible goodwill in consolidated financial statement (CFS) when there is no corresponding accounting goodwill in the CFS;
- Availability of deemed cost exemption for assets held for sale under Ind AS 101 even if they did not fulfil the criteria given under Ind AS 105 ‘Non- Current Assets Held for Sale and Discontinued Operations’ as on the transition date;
- Reduction of amount debited to foreign currency monetary item translation difference account from profit and loss from continuing operations for the purpose of calculating Earnings Per Share (EPS) as per Ind AS 33;and
- Classification of the expense of providing free third party goods.
For more information, click here
Regulatory news
CBDT amends Clause 31 of Form 3CD- 3 July 2017
The Central Board of Direct Taxes (CBDT) has issued the Income tax (IT) (18th Amendment) Rules, 2017 wherein it has made certain changes with respect to the particulars required to be furnished in clause 31 of the Form No. 3CD i.e. “Particulars of loan accepted or repaid exceeding the limits specified under section 269SS and 269T of the IT Act, 1961”.Some of the changes that have been made in the aforementioned clause are as follows:
- Separate disclosure of each specified sum accepted or taken in an amount exceeding the limit given under section 269SS is required;
- Separate disclosure of particulars of repayment of those loans or deposits or any specified advance whose amount is exceeding the limit given in section 269T is also required if those loans were received either otherwise than by cheque or bank draft or use of electronic clearing system through a bank account or by a cheque or bank draft which is not an account payee cheque or account payee bank draft.
These rules shall come into force w.e.f. 19 July 2017.
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Non-applicability of provisions of section 269ST on certain transactions- 3 July 2017
Central government has exempted the following transactions from the purview of section 269ST of IT Act:-
- receipt by a business correspondent on behalf of a banking company or co-operative bank, in accordance with the guidelines issued by the Reserve Bank of India (RBI);
- receipt by a white label automated teller machine operator from retail outlet sources on behalf of a banking company or co-operative bank, in accordance with the authorisation issued by the RBI under the Payment and Settlement Systems Act, 2007 (51 of 2007);
- receipt from an agent by an issuer of pre-paid payment instruments, in accordance with the authorisation issued by the RBI under the Payment and Settlement Systems Act, 2007 (51 of 2007);
- receipt by a company or institution issuing credit cards against bills raised in respect of one or more credit cards;
- receipt which is not includible in the total income under clause (17A) of section 10 of the IT Act, 1961.
This notification shall be deemed to have come into force w.e.f. 1 April 2017.
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Further GST updates
The Central Board of Excise and Customs (CBEC) has issued certain notifications w.r.t. GST whose links are as follows:
- For Goods and Services Tax (GST) rate for specified items for Physically Challenged Persons, click here;
- For meaning of registered brand name in the context of GST rates, click here;
- For conditions and safeguards for the registered person who intends to supply goods or services for export without payment of integrated tax, click here.