The weekly messenger | Edition 40.18

Accounting News

Exposure Draft of AS 38, Intangible Assets – 3 October 2018

The Accounting Standard Board (ASB) of The Institute of Chartered Accountants of India (ICAI), with an initiative to upgrade the existing Accounting Standards (AS) and to bring them nearer to the Indian AS (Ind AS), has released an Exposure Draft (ED) on AS 38, ‘Intangible Assets’. It will be applicable to all companies having net worth less than 250 crore including non- corporate entities. 
 
The comments are to be received by 02 November 2018.
 
For more information, click here.
 

Auditing News 

Guidance Note on Annual Return of GST – By the Tax Research Department – 8 October 2018

Recently, the Institute of Cost Accountants of India has released a Guidance Note on Goods and Services Tax (GST) audit for easing out some of the critical aspects associated with the said audit. The said Guidance Note covers the following aspects:

• Introduction of GST;
• Audit Guidelines;
• Recommendatory formats for GST Audit.

For more information, click here.
 

Regulatory News 

Constitution of High Level Committee on Corporate Social Responsibility – 2018 (HLC – 2018) – 28 September 2018

The Ministry of Corporate Affairs (MCA), in order to review the existing framework and guide and formulate the roadmap for a coherent policy on Corporate Social Responsibility (CSR) has constituted a High Level committee on CSR- 2018 (HLC- 2018) and it will function as per its defined scope.
 
The committee will submit its recommendations to the MCA.
 
For more information, click here.

Notification regarding commencement of certain sections of Companies (Amendment) Act, 2017 – 1 October 2018 

The Central Government (CG) has appointed 1 October 2018 as the date from which the provisions of sub- sections (1) and (12) of section 132, “Constitution of National Financial Reporting Authority (NFRA)” of the Companies Act, 2013 shall come into force, which provides that the CG may constitute NFRA with its head office at New Delhi, to deal with matters relating to accounting and auditing standards under this act.
 
For more information, click here.

Constitution of NFRA – 1 October 2018

As a result of notification of commencement of section 132 (1) of the Companies act, 2013 by the MCA which empowers CG to constitute NFRA, the CG has appointed 1 October 2018 as the date of constitution of NFRA.
 
For more information, click here.

The MCA, considering the damage caused to normal life in Kerala due to heavy rains and floods, has relaxed the additional fees payable by the companies on e-Forms AOC-4, AOC (CFS) AOC-4 XBRL and e- Form MGT-7 up to 31.12.2018, whose registered office is in the State of Kerala, wherever such additional fee is applicable.   
 
For more information, click here.

The Reserve Bank of India (RBI) in consultation with the Govt. of India has decided to liberalise some of the provisions of External Commercial Borrowing (ECB) policy, the details of which are provided as follows:

• RBI has provided an alternative to the public sector Oil Marketing Companies (OMCs) to raise ECB for working capital purposes with minimum average maturity period of 3 years instead of 5 years which was the earlier minimum requirement, from all recognized lenders under the automatic route;
• The ‘individual limit’ i.e., the amount of ECB which can be raised in a financial year under the automatic route which was USD 750 million or equivalent and mandatory hedging requirements as per the ECB framework has been waived for borrowings under this dispensation;
• The OMCs will be required to have Board approved forex mark to market procedure and prudent risk management policy for such borrowings; and
• The overall ceiling for such ECBs has been decided to be USD 10 billion and equivalent.

The said facilities shall come into force from the date of this circular i.e., 3 October 2018.
 
For more information, click here.

In the month of September 2018, the Central Board of Direct Taxes (CBDT) after considering the representations from various stakeholders, had extended the due date for filing of Income Tax Returns (ITR) and Tax Audit Reports for the Assessment Year 2018-19 (Previous Year 2017-18) for certain categories of taxpayers from 30 September 2018 to 15 October 2018.
 
Now, the CBDT has further extended the date from 15 October 2018 to 31 October 2018. However, the Assessees who are filing their ITR within the extended due date shall be liable for levy of interest as per the provisions of section 234A of the Income Tax Act, 1961.
 
For more information, click here.

 
The Central Board of Indirect Taxes and Customs has issued certain updates w.r.t. GST whose links are as follows:

• For more information w.r.t Modification to the Guidelines for Deductions and Deposits of TDS by the DDO under GST, click here; and
• For more information w.r.t applicability of notifications issued under Central GST (CGST) Act, 2017 to the GST (Compensation to States) Act, 2017, click here.

International News 

ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures – 3 October 2018

The International Auditing and Assurance Standards Board (IAASB) has released its revised International Standard for Auditing (ISA) 540, ‘Auditing Accounting Estimates and Related Disclosures’ in order to keep pace with the highly changing market and foster a more independent and challenging sceptical mind set in auditors. 
 
This revised ISA shall be effective for the audit of financial statements for the period beginning on or after 15 December 2019.
 
For more information, click here.