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Maharashtra Assembly Ratify GST

Maharashtra Legislative Assembly today ratified the Goods and Services Tax (GST) Constitutional Amendment Bill become 10th state to pass the Bill.

The Bill was thoroughly discussed in both houses of the legislature.

Special one-day session of the state legislature was called on Monday. The Bill was thoroughly discussed in both houses of the legislature.

Finance Minister Sudhir Mungantiwar, who tabled the resolution to ratify the bill, said Maharashtra would not incur any losses after GST comes into effect.

"Chief Minister Devendra Fadnavis has held detailed discussions on the GST bill with Union Finance Minister Arun Jaitley," he said.

"We have also allayed apprehensions of Shiv Sena on the bill," the state Finance Minister said.

Leader of Opposition in Assembly Radhakrishna Vikhe Patil said the ruling BJP should not claim credit for ushering in the GST era.

In the 288-member Maharashtra Assembly, the BJP and Shiv Sena (SS) alliance has a majority of 185. With the Opposition Congress and NCP in favour of GST, the Lower House ratified the Bill unanimously.


GST, GST News, GST Updates, Maharashtra Assembly Ratify GST,

IND AS – 23: Clarification of Borrowing Cost with regards to foreign exchange loss/ Gain

IND AS – 23: Clarification of Borrowing Cost with regards to foreign exchange loss/ Gain

As per Para 6 Borrowing costs may include:

(a) Interest expense calculated using the effective interest method as described in Ind AS 39    Financial Instruments: Recognition and Measurement;

(b) [Refer to Appendix 1]

(c) [Refer to Appendix 1]

(d) Finance charges in respect of finance leases recognised in accordance with Leases; and

(e) Exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

6A With regard to exchange difference required to be treated as borrowing costs in accordance with paragraph 6(e), the manner of arriving at the adjustments stated therein shall be as follows:

(i) The adjustment should be of an amount which is equivalent to the extent to which the exchange loss does not exceed the difference between the cost of borrowing
in functional currency when compared to the cost of borrowing in a foreign currency.

(ii) Where there is an unrealised exchange loss which is treated as an adjustment to interest and subsequently there is a realised or unrealised gain in respect of the
Settlement or translation of the same borrowing, the gain to the extent of the loss previously recognised as an adjustment should also be recognised as an adjustment
to interest.

Crux: If the exchange loss arising due to restatement of foreign liability is less than interest saving amount (Difference between cost of borrowing in functional currency when compared to cost of borrowing in an foreign currency), then the entire amount to be considered as Borrowing cost.
On the other hand, If the exchange loss arising due to restatement of foreign liability is exceeds interest saving amount (Difference between cost of borrowing in functional currency when compared to cost of borrowing in an foreign currency), then we need to calculate the amount of interest saving component in the foreign loss.
When there is foreign exchange gain in subsequent years, the same should be adjusted to the extent of loss previously recognised as an adjustment to Interest Cost

Let us have an example to understand the abovementioned paragraphs

Practical Example
ANK Limited (Indian Company) has imported goods worth $ 1,00,000 from US at the rate of 65( Year -2014) by taking a foreign currency loan. The interest rate is 6% P.A at the end of the year. An equivalent borrowing in INR would carry an interest rate of 14% P.A.The exchange rates for the years given below:
March 2015- 1$ - Rs 70
March 2016- 1$ - Rs 64
FY 2014-15
 Calculation of Foreign Exchange loss:
Foreign currency loan recognised at the time of import of goods
Foreign currency loan recognised at the end of period
Foreign Exchange loss

 Calculation of Interest Saving Component:
Foreign currency loan recognised at the end of period
Interest rate as Foreign rate(70 lacs @ 8%)
Interest rate as Local currency Borrowing rate( 70 lacs @ 14%)
Interest Saving Component

 Adjustment to Borrowing Cost:
Total Foreign Exchange loss
Foreign Exchange loss regarded as an adjustment to interest loss
Foreign Exchange loss

 Statement of Profit and Loss Account for FY 2014-15
Interest Cost (560000+4,20,000)
Foreign Exchange Loss
Total Expenses

Para Ref: 6A(i) The adjustment should be of an amount which is equivalent to the extent to which the exchange loss does not exceed the difference between the cost of borrowing in functional currency when compared to the cost of borrowing in a foreign currency.

FY 2015-16
Foreign currency loan recognised at the end of period (2016)
Foreign currency loan recognised at the end of period
Foreign Exchange Gain

Statement of Profit and Loss Account for FY 2015-16
Interest Income ( to the extent of earlier adjustment)
Foreign Exchange Gain
Total Income

Para Ref: 6A(ii) :
Where there is an unrealised exchange loss which is treated as an adjustment to interest and subsequently there is a realised or unrealised gain in respect of the settlement or translation of the same borrowing, the gain to the extent of the loss previously recognised as an adjustment should also be recognised as an adjustment to interest.

Appendix 1
Note: This Appendix is not a part of the Indian Accounting Standard.The purpose of this Appendix is only to bring out the differences, if any, between Indian Accounting Standard (Ind AS) 23 and the corresponding International Accounting Standard (IAS) 23, Borrowing Costs.

Comparison with IAS 23, Borrowing Costs
    1.       IAS 23 provides no guidance as to how the adjustment prescribed in paragraph 6(e) is to be determined. Paragraph 6A is added in Ind AS 23 to provide the guidance.
    2.       The following paragraph numbers appear as ‘Deleted’ in IAS 23.In order to maintain consistency with paragraph numbers of IAS 23, the paragraph numbers are retained in Ind AS 23 :
           (i) paragraph 6(a)
           (ii) paragraph 6(b)

    3.       The transitional provisions given in IAS 23 have not been given in Ind AS 23, since all transitional provisions related to Ind ASs, wherever considered appropriate have been included in Ind AS 101, First-time Adoption of Indian Accounting Standards corresponding to IFRS 1, First time Adoption of International Financial Reporting Standards.

This article has been sahred by CA Deepak Rathore. He can be reached at Deepakrathore.8888@gmail.com


How to do Concurrent Audit of a Bank- 3Qs & 3Cs

By CA Snigdha Nigam

Most of the young chartered Accountants always dwell in the Question “How to do concurrent Audit of a Bank.” There are many reasons of this anxiety they possess for concurrent audits, Such as Lack of experience, Lack of opportunities, Lack of confidence etc.

Here in this article, I am going to share my personal experience of learning how to do concurrent audit of a bank, specifically when you are a Newly Qualified Chartered. Hopefully many would find it beneficial.

I had also qualified my CA recently and was assigned with concurrent audit of a nationalized bank by my employer firm. It was the biggest branch of any banks in my city.

Though I had good experience of auditing private banks, but it was my first assignment as a CA and of auditing a nationalized bank, so I was pretty excited & confident enough that I can easily handle this assignment.

First Day was a formal meeting, met all designated officials, including our Audit coordinator and the very next day I realized that it is not going to be easy to deal this assignment due to following major reasons:

1. I had experience of auditing private banks and the cultures of private banks & nationalized banks are completely different.

2. It was the first time any external concurrent auditor was appointed in that branch, and I was almost half the age of 90% of the staff in that branch.

Perhaps few officials could not digest the fact that a girl, half of their age, Will point out their mistakes.

Well!! Somehow I managed to start my work next day by going through their CBS, Audit module and major circulars and guidelines.

I introduced myself to each and every staff, mentioned the reason Why I was there, and requested them to help me so that I could help them.
And you would be glad to know, that it took me 3 months, to make them realize that I wasn’t their enemy.

Soon I started enjoying my work and all appreciated my efforts too (Always remember, Never Give Up!!).

Due to what I experienced, I developed my own methodology to do a bank concurrent audit effectively and efficiently

I strongly believe that like me, It would be really beneficial to all those who want to have perfection in their work.

Let’s answer a question before we move to the main content of this article:

What is a Concurrent audit?
Few friends of mine say, that is not statutory audit (good answer)!!!!
Yes certainly, it’s not!! Because first u are not so well welcomed as a statutory auditor in concurrent audits.

Second, it’s not a 3-4 day work that you mostly enjoy having food and roaming places!!! The real audit work starts when are doing a concurrent audit because you are going to do in-depth audit.

To put it simply it is majorly an audit of controls & compliances.

1. Whether adequate controls are there?

2. Whether the policies and guidelines of the bank and RBI and duly complied with (In context to banks)?

Now when we know in simple words what concurrent audit is all about, let’s know about how to do it. For that all we need to understand is: the 3 Q’s and 3 C’s of Concurrent Audit.
What are these??? Let’s understand:

3Q’s are the questions we should ask ourselves before starting any audit; these are:
1. What
2. Why
3. How

Let’s discuss these three questions in detail:
1. What do we want to do?
This question will scope our audit work.
– Clearly understand your audit assignment,
– Identify your roles & responsibility,
– Evaluate the authority (power) that are assigned to you.

It’s most important to understand two things:
Responsibility: what if you don’t do your job properly?

Authority: what are the powers you are given to do your work effectively, efficiently & most important independently.

2. Why do we want to do this audit?
Here we analyze the reason behind what we do in auditing.
This we can easily understand if we go through the Circulars, manuals, policies & guidelines.

We should read these well to understand the need behind the checks ,always keep a folder by your side which has all the relevant circulars and guidelines, so that you can refer those in case of any confusion.
But practically we all refuse to do so because its time consuming. You know many times we can know the reasons to perform any check by applying common sense too!!  Don’t you agree??

Let’s take a simple example: While checking custody of deliverables we check that ATM cards & ATM pins are held by two different custodians, and ATM card custodian should never become the ATM pin custodian & vice versa.

We just read it in Audit Report format as a requirement and check it, do we ever think why??

Why this should not happen?
Simple: It’s a control measure, so that no single custodian is given authority to misuse that ATM card which belongs to customers.
The same happens in all the areas that are covered in audit report.

Once we know the reason behind the checks & controls, we will always use the correct measure to evaluate that those checks and controls are working effectively or not.

And once we know the answer to this question, we easily get the answer of the next question too i.e. How!

3. How are we going to perform our audit work?
Answer to this question points out the techniques & methods which we will use to perform the tasks.

One of the most important thing to remember is, that you are an auditor, not an engineer or technician or any process owner.
Hence if you don’t know how to do something (not a big deal!), you should always take management help.

Ask them about the whole process, why and how it is done, and I assure you that you are capable enough to bring out the loopholes and decide measures to check that.

If you are not familiar with the banking software, there is no need to panic, No one learn those since childhood. Take management help, ask your seniors, or search it on GOOGLE Baba!!! (Believe me, it knows everything!!)

And mostly there are just 4-5 commands that are of our best use, and we get to learn them by practice.

So now we have understood the 3Q’s and the next thing to understand is 3C’s.

Let’s discuss what these 3C’s are all about.
3 C’s are the essential requirements to conduct a concurrent audit successfully:
These are as follows:
1: Coordination
2: Cooperation
3: Continuous efforts

How does these words effect the quality of our audit work in case of concurrent audits?
Let’s discuss:

1. Co-ordination:
Co-ordination between whom??
There must a good co-ordination between the members of Audit Team.
Who will deal which area?
(Like cash processing, inventory & deliverables, loan documents, forex & trade desk, customer service etc.):
Assign jobs to the members according to their capabilities. And be assured in it because you are not here to do experiments.

Who will be the one managing whole audit work?
There must one coordinator who will just coordinate work the members (I believe that more than one coordinator will spoil the work rather than managing it, remember too many cooks spoil the food!!), and guide them about the risk weightage of every area and the time that we should devote in every area,Higher the risk higher would be the time devoted.
This Coordination should be continued with same intensity during the period of assignments.

2. Co-operation:
One of the most important things that one needs to understand is that the ultimate aim of a concurrent audit is not to report the deficiencies, but to apply measures to mitigate the risk that arises due to weaknesses in the system.

The mistake that most of us do in concurrent audits is to report the discrepancies without suggesting any proper action that management should take to avoid those mistake again in future. Reporting same discrepancies every time creates frustration to controlling officers.

Here comes the role of second most important element i.e. Co-operation.
We always have to report in a manner, that management should feel that you are not there for Investigation but to work as a supporting hand. Let me tell you few ideas that can help you:

1. Always communicate over emails; it has two benefits:
You have a proof that you have reported the deficiency to the management.

Most of the problems are resolved over mails, so you don’t have to put everything on report. Which is surely a sign of relief for management.
2. Have a good understanding with the staff members, educate them about the mistakes that are of recurring nature, and how it harms their performance in the audit report.

3. Don’t go and ask for everything from a single staff member, even if he is your audit coordinator. They have got their work to do too, it makes them really annoyed if u keep asking them for petty things, instead contact the staff directly who deals that area of your concern.

4. Gain confidence of staff, by letting them know about what is actually happening in the reports about their respective area. Discuss everything before you put it on report. But remember you have to report it on mails to your controlling officer too, so that everything is on record.

5. Don’t be so keen to make your report size larger & larger every time. Always remember that if even after 6 months of your assignment, you are reporting the same issues in the report, then it’s not the mistake of management, it’s your mistake because you can’t make the management understand the reason behind it.

6. If you are lucky enough (like me!!) there would be at least one person in the bank staff, who would always be happy to help you in need. Identify that one man in the opposite army, and utilize him, till you win the battle of egos.

Do believe me, you can do both, win their hearts and draft a very good, true and fair report, if you behave well with them. Co-operation is key to success in these audit, I have experienced it myself.
Let’s move to the final & most important element- Continuous efforts.

3. Continuous efforts:
It’s in Human nature that we tend to get bored by things we do continuously, and this is the biggest reason we fail to draft a strong audit report. We tend to fill the audit report ourselves on the basis of trends, assuming there won’t be any changes. This is the worst thing one can do with the professional capabilities he possess.

Concurrent audit requires continuous efforts that too with the same level of hard work and enthusiasm that we applied for the first time.
Every time you draft report, try to dig it deeper, do better from the last time; don’t get satisfied with your work.

Make sure that once you report an issue in report, measures are taken by management that it doesn’t happen again. Check that all compliances have been done. Don’t believe on talks, always demand proves that the reported issues are complied with.

Start afresh every month, look from different perspective. Don’t build opinions that certain area is always bad, and certain area is always fine, because you never know when unexpected errors may surprise you.
Enjoy your work!! Then only you will not feel bored or tired of it.

Bottom Line:
Many friends of mine used to wonder how do I manage to do the same thing again & again, there was only one reason behind it- My strong desire to achieve perfection in my work and my will to enjoy my work.
To answer few questions that always demotivate young chartered, let’s go through following motivational thoughts:

Q. 1: I am a young CA, I can’t get a bank audit.
Wrong! You can get a bank audit, not in your name, let the name be of any experienced old firm, work as an associate with them, or join them as an employee. They have lack of man power, you have lack of experience, join hands and work for each other. This is how we can give maximum benefits to our community.

Q.2: What is the benefit of spending time and money on professional courses like DISA/CISA if I can’t get an audit?
Yes it may take you another 5 years to get a bank audit in your name, but till then you can get more qualified, better than others in the competition.

If you can’t cut the tree at night…spend time to sharp your axe all night so that you cut it at once when the sun arrives. Make the best use of your time.

Q.3: There are no opportunities in my city.
Stop acting like a toddler; the whole world is waiting for talents like us. The time has gone where you need to be physically present to do some work. The whole world is in your hands, explore the opportunities.

Q.4: I am a CA, and I need rewards for my work.
Be assured in one thing, no one will give you work on your degree, you need to gain knowledge and capabilities to earn the rewards. If you don’t have that capabilities, be ready to get burnt in fire of hard work, then only you will shine like Gold.

Q.5: I have spent all these years in studies, how long do I need to learn more?
You will need a lifetime to learn, and even that won’t suffice. We have to keep learning to grow, river has pure water because it keeps moving. If you want to shine like a shining star, Keep learning.

I hope this article was worth your time. Keep learning and sharing knowledge. Best wishes to all my readers.

This article is written by CA Snigdha Nigam (ACA,DISA, MBA -Finance)
She is a practising Chartered Accountant, with major exposure in bank audits. She can be reached at snigdha.231290.nigam@gmail.com

What does google knowS about you

We all have been worried about our Data privacy over internet. Big Data Analytics has been the biggest source of income for online players like Google and Facebook. While using their services, we generally neglect the terms & conditions of use that they ask for, which majorly includes right to use our data.
There come two big questions in our mind:
How do they collect our data? & how do they use it?
Let’s answer the second question first:
The most valuable asset in today’s world is DATA!! They collect it, process it though the BIG DATA Analytics and convert them into useful information on the basis of various parameters like our tastes, geo- location and activities.
Then our Data is used to publish ads that match to ours tastes and recent activities such as google search and history.
Have you ever wondered, when we go for search of any product on any shopping site, few ads start flashing on our computer screen for days whenever we go Online. How does it happen? This is what big data analytics does. They capture our recent activities and use it share with people who need that data, like shopping websites. For every click on those ads, google gets paid by those shopping sites.
That’s why it is said that nothing comes free; we use services of google at the cost of our data.
Now the question comes, what does google knows about you.
Google collects information through your smart phone, PC or any device from which you access google.
Google knows when you go for office, how much time you work in office, your office routes.
How much time you spend on internet, which type of information you saw like news websites, Bollywood websites, social media and whom your search on internet, this type of information Google continuously collects through your smart phone. Which hotel you search on internet, which movie ticket you buy this is also Google knows.
Everything that you do through internet, or even if you are not using it but your data connection is on; is collected by google. Through many applications like google map, image search, YouTube etc.
Let’s know how to check what information about us is saved on google and how to delete it, if we wish so.
A step by step guide is as follows:
·         Go to www.myactivity.google.com
It will look like this:

·         Login with your Gmail account

·         Now you can get access of all your data at one place.

Please note Google protect your privacy so this information can be access by you only.
·         You may filter the data by products or date to know what you searched on a particular date, or about a particular product, like image search, maps, voice search, or YouTube.

·         You may also delete the data stored by clicking on the Delete activity by option at the left side list.

·         You may choose to delete activity by topic/ product or by date

·         Once you select any activity you may delete it by clicking delete as shown below:

·         You may also see other google activities by selecting Other Google Activity option from the list on left side, it will look as shown below:

Now you can control your activities, suppose you don't want that Google access your data so you can disable your activities.
·         If you want google to stop collecting information about you, you may use Activity Controls option. Once you select this option you will see all the Web and App Activities and an option to manage those respective activities, As shown below:

·         If you turn off the option by clicking on the blue option as shown in above picture, google will stop storing your data from that particular activity on clicking at pause option, see the picture below.

We may control the way google uses our data, if we know how it collects it and how to stop it.

Hope this article was informative to most of us. Keep learning and sharing.
This article is written by CA Snigdha Nigam (ACA,DISA, MBA -Finance)
She is a practising Chartered Accountant, with major exposure in bank audits. She can be reached at snigdha.231290.nigam@gmail.com

Pick Up One Thing And Do It In A Way No One Can Do Better

Pick Up One Thing And Do It In A Way No One Can Do Better

Last Sunday me, and my sister with our respective families went to a very famous Choley Bhature shop in Paharganj. It’s called Sita Ram Diwan Chand, quite old and famous for its paneer filled bhature and nice spicy choley.
As is typically available with any choley bhature shop, generally you find curd, lassi and some cold drinks always available. We entered the shop and I asked the owner to give me 6 plates of choley bhature also casually requested for few glasses of lassi, expecting that he will ask – Sweet or Salted. But to my utter surprise, the owner who wouldn't be more than a 30 years old boy simply ignored and did not bother to even answer the question.
Because the place was so crowded, I did not get a chance to even ask him again and I took my coupons to proceed to the counter to pick up my share of choley bhature.

I narrated this incidence to my family members with a sense of embarrassment that a young guy did not even bother to answer my simple question. While we were eating and discussing this incidence, I realized that perhaps he had a reason for not answering it, albeit his arrogance should not be excused.
This shop has been selling choley bhature for more than 40 years and there is no doubt there’s the best choley bhature shop in Delhi. People throng that place like honey bees and despite being so old and popular, there is no place to sit. People stand and eat. But this might be there intentional business strategy.
I thought the owners might have a reason to not offer anything other than chole bhature. That's because offering any other item such as lassi or sweets etc will not add any value to their core product, i.e., choley bhature, rather it might reduce their sales. If by offering lassi or sweets people spend more time on the tables, then their overall sales might get lower. That's because they have limited space and turnaround time at each table is quite fast. People come, have their share of choley bhature and because there is no place to sit and its not air-conditioned, no one wants to spend too much time. By offering lassi etc, people may want to spend more time just whiling away with their glasses. That might mean loss of core business, something that no businessman would want.
I am a firm believer that whatever you are doing, you should do it so well that no one else could do it better than you. Though, I have also faltered myself in this vision, I still try to keep at it.
I want to share a personal experience with you on how focusing on one thing is always better than doing more. This was the time when I had quit PwC and joined as a Partner in our firm IBA. Along with starting the indirect tax practice at IBA, I also had in my mind to start a training company for young chartered accountants living in Tier-II towns like Jaipur, Chandigarh, Lucknow etc and make them more employable. Me, and my partners believed that employability of chartered accountants at fresher level was a big challenge and we all thought of starting a new venture - “Promaynov”. The term Promaynov was derived from the initial letters of "Professionals of May and November", indicating chartered accountants.
We started this venture along with running our existing consulting firm. Though, all three of us were involved, I was spending more time in its operations and management. Promaynov as a concept picked up, though it took some time as it happens with any new venture. We did trainings in Jaipur and Chandigarh and Delhi and placed more than hundred students across BIG4s including EY, PwC, Grant Thornton, Genpact etc. Promaynov over a period of time became synonymous with training and job placements.
The venture was slowly picking up, though we were not making any money rather making lot of investment, both cash and time. Åt times we also panicked because of lack of sufficient funds and took some wrong decisions in haste. I realized that managing both Promaynov and IBA was getting difficult and it was like putting your legs in two boats and trying to row both of them simultaneously. Obviously, the speed and quality of ride had to suffer.
I could realize that the indirect tax practice though was growing, could have been better had I spent more time on it. Similarly, it was the fate with Promaynov. And because we were desperate to make it work we were trying to do too many things without any clear indication of how it will work.
Finally, one fine day all of us sat down and decided that in the larger interest of the organization we should shut down Promaynov so that we can focus on “OUR CORE” business of consulting. That was the day we agreed not to spend any more time and money on it. And what a decision it was.
After shutting down Promaynov all three of us focused completely on the consulting business and made some real good progress. Though the consulting firm did grow while we were managing both, but the kind of progress we made while focusing on one venture wouldn't have been possible had we been managing the both. The firm grew multifold, we added a lot of new clients, opened new offices and hired a lot of qualified professionals.
This is the power of focus on “YOUR CORE” and the beauty of picking up one thing at a time and doing it very well. As a professional it is important that we pick up few things, preferably one and master it. Though one would be tempted to do many things at a time but, in my experience of reading the lives of many top and elite performers, it is evident that focusing on one activity or job will give much better results that handling more.
If you are a student, don't try and deviate your focus on too many things. Your CORE is studying and you should only do that. Anything else that majorly deviates you shouldn't be allowed to enter your life. This world is full of distractions and you will find many exciting things to do, but by focusing on your Core you will be a long-term winner. A winner, that everyone will remember.
If you are a professional, try not to do too many things, try not to experiment with your career trying to work in too many areas, try not to change too many jobs, try not to pick up different areas of expertise. Try and spend time on one or two key areas of expertise and do them well. But do give some time to yourself to prove. Nothing happens overnight.
This is such a good lesson to learn and it reminds of a quote by Steve Jobs:
            “Deciding what not to do is as important as deciding what to do”
Wishing all of you green lights and good luck…
Authored by Nimish Goel (www.nimishgoel.com), a qualified chartered accountant who’s passion is to coach young chartered accountants and aspiring students achieve the best in their life.  Nimish used to work with EY and PwC in India and has also worked with KPMG in Europe.  He now runs his own consulting company and runs a blog www.nimishgoel.com.  He can be reached for any queries and issues on his blog.

CS Executive Merit List Toppers Marks and Photos June 2016

CS Executive Merit List Toppers Marks and Photos June 2016. ICSI has announced CS Executive result June 2016 on 24th Aug 2016. Every one wants to know ” Who is CS Executive Topper June 2016 ” and “ CS Executive Pass Percentage ” details. ICSI has announced CS Executive Merit list, Toppers list and their marks and photos and CS Executive pass percentage June 2016. Below are CS Executive Merit list / toppers list / rankers and their marks and photos of June 2016 attempt both old syllabus and new syllabus.

JUNE 2016 CS Executive toppers list for CS Executive Programme


CS Professional Merit List Toppers Marks and Photos June 2016

CS Professional Merit List Toppers Marks and Photos June 2016. ICSI has announced CS Professional result June 2016 on 24th Aug 2016. Every one wants to know ” Who is CS Professional Topper June 2016 ” and “ CS Professional Pass Percentage ” details. ICSI has announced CS Professional Merit list, Toppers list and their marks and photos and CS Professional pass percentage June 2016. Below are CS Professional Merit list / toppers list / rankers and their marks and photos of June 2016 attempt both old syllabus and new syllabus.

JUNE 2016 CS Professional toppers list for CS Professional Programme (New Syllabus)


CS Professional toppers list for CS Professional Programme (Old Syllabus)


Role of CA / CMA in GST

Role of CA / CMA in GST

Government of India has progressed one step forward to implement the much awaited reform in the Indirect tax regime i.e. Introduction of GST. It will undoubtedly biggest tax reform since independence. With this development, while the passing of the GST Constitution (122nd) Amendment Bill during the monsoon session is awaited, industry , professionals and other stakeholders will be able to provide their inputs and comments on the draft, which will form the basis for the eventual GST legislations. Both Institute of Chartered Accountants of India and Institute of Cost Accountants of India has invited for suggestion from members which will be compiled and submitted to the Government authorities.

Role of CA /CMA is prescribed in following section of Model GST Law in following sections :


Section 2 (33) “Cost Accountant” means a Cost Accountant within the meaning of the Cost and Works Accountants Act, 1959 (23 of 1959);

42. Accounts and other records
(4) Every registered taxable person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a Cost Accountant and shall submit to the proper officer a copy of the audited statement of accounts, the reconciliation statement under sub-section (2) of section 30 and such other documents in the form and manner as may be prescribed in this behalf

50. Special audit

(1) If at any stage of scrutiny, enquiry, investigation or any other proceedings before him, any officer not below the rank of [Deputy/Assistant Commissioner] having regard to the nature and complexity of the case and the interest of revenue, is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, with the prior approval of the [Commissioner], direct such taxable person by notice in writing to get his records including books of account examined and audited by a chartered accountant or a Cost Accountant as may be nominated by the [Commissioner] in this behalf.


64. Access to business premises
(2) Every person in charge of premises referred to in sub-section (1) shall, on demand, make available to the officer authorized under sub-section (1) or the audit party deputed by the Additional/Joint Commissioner of CGST or SGST or the Comptroller and Auditor General of India or a Cost Accountant or chartered accountant nominated under section 50, as the case may be,-


86. Appearance by authorised representative

(2) (c) any chartered accountant, a Cost Accountant or a company secretary, who holds a valid certificate of practice and who has not been debarred from practice; or

126. Disclosure of information by a public servant

(h) any such particulars, when such disclosure is occasioned by the lawful exercise by a public servant or any other statutory authority, of his or its powers under any law for the time being in force; or

(i) any such particulars relevant to any inquiry into a charge of misconduct in connection with any proceedings under the Act against a practising advocate, tax practitioner, a Practising Cost Accountant, a practising chartered accountant, a practicing company secretary to the authority empowered to take disciplinary action against the members practising the profession of a legal practitioner, cost accountant, chartered accountant or company secretary, as the case may be; or

“Change is only permanent thing in life.”

Professionals need to adopt to the changes in the business and economic environment and this change definitely is welcome change for professionals. In this draft law CA/CMAs are given very vital role to play. Wherever there is requirement of experts CA / CMA is included for which CAs / CMAs should be proud of.  But this pride comes with the responsibility to perform. The prosed legislature will bring sea changes in the existing Indirect tax structure for which we professionals are well verged with. This reform will provide huge opportunity to CAs / CMAs to perform role of facilitator between the Policy makers, Industry & Trade organization and consumers. The role CA / CMA can play in the proposed GST regime can be highlighted as under :
    Ø  Representations to Policy makers pre GST:
As the proposed law is in draft stage with the knowledge of business process and taxations CA /CMAs can submit their representations. This representation can be help to industry and consumers to achieve convergence to new law as well as it may prevent hard ship caused to industry and consumer.  In the recent past Government has accepted and acted on many such representation made by Institute of Chartered Accountants of India and Institute of Cost Accountants of India.
    Ø  GST - Registration :
Threshold limit Rs. 10 Lacs of aggregate turnover has been prescribed to taxable person located other than north east States. The threshold limit of Rs. 5 lacs will for a taxable person conducts his business in any to taxable person located of north east state including Sikkim.
It also will be noted that threshold limit will not be applicable to those taxpayers who make inter-state supplies, Casual Tax Payer, person liable to pay reverse charge, non-resident tax payer, person required to be paid TDS, Agent , Input Service Distributor, E-Commerce Operator , persons providing branded services through ecommerce, aggregator or any other persons as notified. Such person needs to obtain the registration.
The concept of a single/centralised registration for multiple places of business has not been provided.
Hence the Taxpayer base is going to be increased and business will need to take registrations under all State GST act wherever it is operating.
This will bring opportunity to professionals to approach tax payers to assist in getting registered under GST regime.  This will provide opportunity to professionals to advice and consult the assesse in forming strategy right from inception. Although this activity is more of procedural matter but once the baby is born then nourishing can start and mother is always preferred guardian of child.

    Ø  GST – Procedural Compliances:
Tax credits – Although the GST is meant for seamless flow of ITC, there are certain restriction on availing ITC. CA /CMAs can advise taxpayers about the eligibility of Input Tax Credit (ITC).
Maintaining  ITC Register – ITC Register will be maintained in electronic form based on the transactions uploaded by assesse. Hence the transaction need to be uploaded in the prescribed form and periodical review of the same is required to confirm the availability of ITC.  
Computation of accurate liability - The GST liability needs to be paid off on monthly basis. The liability will be outward tax payable less Input Tax Credit available. Short payment will attract the penal provision and excess payment will block funds. CA /CMAs can compute and intimate accurate tax liability to tax payers.
Returns – Tax payers need to file following returns:
GSTR-1  Outward Supplies made by the Taxpayer (Monthly)
GSTR-2 Inward supplies/purchases received (Monthly)
GSTR-3 GST Return (Monthly)
GSTR-4 Quarterly Return for compounding dealer (Quarterly)
GSTR-5 Return for Non Resident Taxpayers  (Annual)
GSTR-6 Return for Input Service Distributor (Monthly)
Hence minimum returns to be filed for any assesse will be 36 in year as compared to 16 till now. It will bring the opportunity to CA/ CMAs to help taxpayers in compiling and filling the returns on time.
Matching of ITC -Tax Credit reconciliations
The ITC will be allowed only when the data in matched with the respective data filled up by suppliers or customers. Hence the reconciliation of Input tax credit as per our filling and as per other parties filling need to matched. Tax credit will not be allowed if the data is not matching. Such mismatched transaction will have to be rectified in the span of 2 months. CA/CMAs can help to identify such transactions and can inform the respective buyer /seller to amend their filling accordingly. This reconciliation will be big opportunity for professionals to undertake outsourcing assignments.

    Ø  GST - Audit & Assurance
Model GST laws include name of CA / CMAs to conduct audit of the accounts and records maintained under section 42(4). However apart from the statutory audit CA/CMAs can undertake assurance services to tax payers in the form of internal audit of GST records and tax health checkup. The assurance service can be in different forms depending on the requirements as under :
Verification of Returns
CA/ CMAs can do the verification of records on monthly basis. Before the returns are filled tax payers in consultation with CA/CMAs can do the verification of the invoices and other records to get assured of the correctness of the information getting filled with Government authorities. This will preventive check to eliminate the possibility of getting mismatch of tax credit and will avoid duplication of work.
Internal Audit
CA/CMAs can undertake internal audit of GST records. The internal audit can focus areas wherein there could be possibility of tax credit leakage.  It may be in the form of excess computation of liability or short availment of tax credit. With the expertise in prevalent indirect taxes and knowledge of business process, CA/ CMAs can be preferred source of this kind of services.
Statutory Audit
CA /CMAs are authorized to conduct audit of GST under section 42(4) of the Model act. Every tax payer exceeding the prescribed threshold limit will be subject to such audit. Already CA/CMAs are recognized to undertake VAT audit under various State VAT Act, however for service providers there is no such requirement. Hence the number of taxpayers under audit will get increased and CA/CMAs will get opportunity to conduct such audit. This audit will not only give the opportunity but also will get recognition in the Society.

Special Audit
Section 50 (1) of the Model act prescribes that if GST officer of is of the opinion that the value has not been correctly declared or the credit availed is not within the normal limits, he may, direct such taxable person by notice in writing to get his records including books of account examined and audited by a Chartered Accountant or a Cost Accountant. CA/CMAs can help government officers to find out revenue leakage if any. Such special audit will be conducted on behalf of Governmental authorities. This will help to find out non-compliant tax payers and protect the revenue of Government.

    Ø  GST- Assessment
Section 45 prescribes for scrutiny of the GST return. The proper officer may scrutinize the return and related particulars furnished by the taxable person to verify the correctness of the return in such manner as may be prescribed. The proper officer shall inform the taxable person of the discrepancies noticed, if any, after such scrutiny in such manner as may be prescribed and seek his explanation thereto. The assessments are extended to non-filers of return as well as unregistered persons.
CA /CMAs can help taxpayers to prepare the necessary explanations and submissions to the authorities facilitating quick competition of assessment proceedings.
    Ø  GST - Authorised representative
Any person who is entitled or required to appear before a GST Officer appointed under this Act, or the First Appellate Authority or the Appellate Tribunal in connection with any proceedings under the Act, may, otherwise than when required under this Act to appear personally for examination on oath or affirmation, subject to the other provisions of this section, appear by an authorized representative.
(2) For the purposes of this section, “authorised representative” means a person authorised by the person referred to in sub-section (1) to appear on his behalf, being —
(c) any chartered accountant, a Cost Accountant or a company secretary, who holds a valid certificate of practice and who has not been debarred from practice; or
CA/CMA/ CS are authorized to act as authorized representative under section 86 of the Model  Law. They can appear before GST Officer, First Appellate authority and Appellate Tribunal. Hence CA/CMA/ CS can assist the tax payers in the matters of litigation and appear as authorized representative till Appellate Tribunal level.

    Ø  GST – Refund
Any person claiming refund of any tax and interest, if any, paid on such tax or any other amount paid by him, may make an application in that regard to the proper officer of IGST/CGST/SGST before the expiry of two years from the relevant date in such form and in such manner as may be prescribed.
The application shall be accompanied by—
(a) such documentary evidence as may be prescribed to establish that a refund is due to the applicant, and (b) such documentary or other evidence (including the documents referred to in section 23A)
CA/CMA/ CS can prepare the application in prescribed form along with the prescribed documents and evidences. Proper preparation of Application and requisite follow up can fasten the process of getting refund to the tax payer.

    Ø  GST Advisory Services :
In additional to the procedural and accounting related services, CA/CMAs can provide Value Added services in the domain of GST. There will be requirement of expert like CA/CMAs to provides distinctive services like :
Impact Study
Contract Review
Impact on Pricing Model
Business Structure revamping
Supply Chain Management
Logistics and Distribution Systems
Businees process mapping under new tax regime
Participation in development of Systems, process and controls

    Ø  Systems Audit and systems development to be GST compliant:
GST will be highly IT driven initiative and systems will have to play important role in the successful implementation of GST. A systems audit involves a detailed analysis and evaluation of a complete system.  There would be a changes required in the ERP or Accounting systems established. Those systems are to be made GST-compliant. CA/CMAs would be the facilitator to conduct the systems audit rigorously and do the transactions mapping in the systems.
    Ø  Partners in Transitional period
CA/CMAs are well recognized in the prevalent indirect tax laws. They will be the best resource during this phase of change over to GST regime. CA/CMAs should provide the necessary guidance and support to the taxpayer to make them compatible to the GST. There could be various issues in this transition like
Pending litigations
Treatment of Tax credits on appointed date
Contracts WIP
De Registration and pending tax compliances

    Ø  GST- Training
Corporate Training - Apprising the management about various intricacies of GSM Law. The training requirements will be different for levels of management. TOP management will be interested in impact of GST in Strategic Management like impact on various contracts, redefining the existing contracts, caring out business models, Business process mapping etc. Middle management will require training in terms of Compliances of GST Law.
Educating new tax payers
Educating small tax payer like traders and organizing training and workshops to assist them in compiling with GST requirements

    Ø  Representations post GST:
It may take time for GST law to get settled. As it is new reform there could be hurdles in implementing GST effectively. In GST regime, there could be various disparities between the Centre and the States on account of various issues with reference to cross-border transactions, issues arise in respect of levy and administering of Destination State’s share of revenue, Time & Place of supply, dealing with inter-state movement of goods and services. Hence, for the resolution of the various issues in GST regime, there is a need to have dispute settlement mechanism in order to have smooth flow of structure. CA/CMAs are recognized to make representations before the Appellate Tribunals under the Indirect Taxation statutes in India. They would continue to make representations even in post-implementation of GST for smoother implementation of GST.

This list is not exhaustive , the opportunities can be even more than the mentioned above. Only thing is that the opportunity never knocks your doors, you have to find out where the opportunity is. CA/CMAs will have to build capacities to serve the trade and industries and all the stake holders.

It will be the great attempt to contribute effectively to the Nation for improving tax-literacy, financial inclusion, transparency, governance besides meeting the social and national requirements of India through implementation of GST. 

This Article has been shared by CMA Harshad S. Deshpande . He is practicing cost & management accountant and partner in M/S Harshad S Deshpande & Associates firm of practicing CMAs rendering professional services in the field of Cost & Management accounting and Indirect Tax for more than 12 years of experience.

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