Mandatory application of Cost Accounting Standards

The Council of the ICWAI at its 251st Meeting held on 12-13 February 2009 decided as below:


Mandatory application of Cost Accounting Standards


“RESOLVED THAT the following Cost Accounting Standards


CAS 1: Classifications of Costs
CAS 2: Capacity Determination
CAS 3: Overheads
CAS 4: Cost of Production for Captive Consumption
CAS 5: Determination of Average (Equalized) Cost of Transportation
CAS 6: Material Cost


shall be mandatory with effect from period commencing on or after 1st April 2010 for being applied for the preparation and certification of General Purpose Cost Accounting Statements. Since there is no statutory requirement for the application of such Cost Accounting Standards for the preparation and certification of Cost Accounting Statements, in case the cost accountant is of the opinion that the aforesaid standards have not been complied with for the preparation of the Cost Statements, it shall be his duty to make a suitable disclosure/qualification in his audit report/certificate”

Additional Campus for SMEs & SMPs for Newly Qualified CAs

As you are aware that CMII has been taking each and every possible measure in the overall interest of the Young Chartered Accountants like your goodself.

We understand that in the Campus Interviews conducted during March-April 2009, you could not get placed. In order to promote your interest CMII is organizing another set of Campus Placement Programmes exclusively for Small and Medium sized Industries and Small and Medium Chartered Accountants Firms as per the following schedule:

Centres Revised Dates

Bangalore, Chennai, Kolkata, Mumbai and New Delhi - 22nd , 23rd ,24th May 2009

Ahmedabad,Chandigarh, Hyderabad, Jaipur, & Pune 30th May 2009

Minimum Salary Offer Requirements
For Industries: Rs. 3,00,000
For CA Firms: Rs. 2,75,000 at Bigger Centres and
Rs.2,40,000 at Smaller Centres

Please note that

1. In this specially organized Campus Placement Programme for SMEs and SMPs, the candidates who are not getting any placements in the bigger centres would be provided the option to attend the interviews at one smaller centres as per their option.

2. Candidates registered for Campus Placement Programme conducted during March-April 2009 and who have not been placed are automatically eligible for this Campus Placement Programme i.e they need not register themselves again.


Hope you would appreciate the initiative taken by the CMII in your interest.

We wish all success in the forthcoming interviews.

With best wishes

Yours sincerely,

(CA.Vijay Kumar Gupta)
Chairman, CMII.

Procedure to register LLP

Register yourself on the website of Ministry of Corporate Affairs, developed for LLP services, i.e. www.llp.gov.in .

This website may also be accessed through the website of the ministry www.mca.gov.in

On the home page of the URL www.llp.gov.in click “Register” tab on top right hand corner of the page.

• Fill in the registration form. Fields marked * in the form are to be mandatorily filled. Select your user name and password.

• Upload digital signature certificate

• On successful registration, system will give a message that you have been registered successfully.

Accounting Standard 11 - Amended

Visit

http://www.icai.org/resource_file/15726mca193_and_194.pdf

NEW PROCEDURE FOR EFFECTING FOREX REMITTANCES TO NON-RESIDENTS AND FOREING COMPANIES, EFFECTIVE FROM JULY 1, 2009

1. The Government has issues a Notification dated March 25, 2009, specifying the new procedure to be adopted by Companies for effecting remittances to Non-Residents and Foreign Companies, under Section 195 of the Income tax Act, 1961 which will come into force from July 1, 2009.

2. A new Rule 37BB has been added, as per which, the person effecting payment to a Non-Resident or a Foreign company should obtain a certificate from a Chartered Accountant in Form 15CB, format of which is enclosed.

3. The payer shall have to file the Form 15CA electronically to the website designated by the Income-tax Department and thereafter, a signed printout of the said form shall be submitted prior to remitting the payment.
4. The Form 15CA would have to be signed by the person competent to sign the Return of Income.

5. The Director-General of Income-tax (Systems) shall specify the procedures. formats and standards for ensuring secure capture, transmission of data and shall also be responsible for the day-to-day administration in relation to furnishing the information in the manner specified"

These new procedures would make the whole process of effecting foreign remittances by Indian Companies extremely procedural and cumbersome. Chartered Accountants who sign certificates in Form 15CB would now need to be extremely careful and vigilant in terms of the information required to be provided in the Certificates.

Companies would need to plan well in advance, of the dates of the forex payments.
Forn 15CB which is to be used by the certifying CA, will have a serial number (this is perhaps the first time I've heard of a CA certificate carrying a serial number).

My initial reaction to thie Form 15CB is that, CAs would now need to thoroughly go thro' the documents including agreements, etc. of their clients before issuing certificates. It is a much more serious affair now.

LLP begins its journey from 01.04.2009

A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility or organizing their internal structure as a partnership.

Limited Liability Partnership Act, 2008 is been notified on 31.03.2009 and Limited Liability Rules, 2009 notified on 01.04.2009. surprisingly first LLP is also got registered on 02.04.2009

Major changes in TDS Compliance

CBDT has issued Notification No 31 dated March 25, 2009 bringing out several changes in TDS compliance. The notification amends various rules w.e.f 01-04-2009.

TDS Payment

* TDS payment is now to be made electronically by all deductors. Earlier only corporate and persons covered under mandatory tax audit were required to make payment electronically.
* Electronic payment is now to be made in Form No 17
* Form No 17
o Form No 17 requires deductor to provide deductee wise PAN, Name and TDS amount
o There are two columns Unique Transaction Number and PAN Valid Y/N . To comprehend these columns more information is needed.

New TDS Compliance Statement

* New Form 24C in introduced
* This form is to be submitted every quarter electronically
* For each TDS section , monthly figures are to be given in respect of
o Total expense or capital outgo under the section
o Total amount on which TDS was to be deducted
o Total amount on which TDS deducted at normal rate / TDS amount
o Total amount on which TDS deducted at lower rate / TDS Amount
o Total TDS = TDS at normal rate + TDS at lower rate

eTDS Statements

* Form 24Q/ 27Q formats have been modified
* In deductee wise details , Unique Transaction No is to be given
* eTDS Statements in Form 24Q, 26Q,27Q are to be submitted only once a year on or before 15th June

Form 16 / 16A

* Formats of 16/16A have been amended
* Gross amount and TDS amount is to be given unique Transaction Number Wise
* Whether PAN uploaded was validated by income tax department is to be shown separately
* Several details not be given like : Date of payment, Chq No, BSR Code, CIN etc


Unique Transction Number ( UTN )

* It seems the whole system is now going to be based in UTN
* From the following chart it is clear that UTN is a common link between Challan, TDS certificate and eTDS Statement.
* UTN will be provided by the income tax department.
* How this number will be provided by the department – we have to wait and watch