Reporting on Fraud under Section 143(12) of the Companies Act, 2013

       With the introduction of section 143(12) of the Companies Act, 2013, the Central Government is apparently seeking the support of the auditors in bringing in greater transparency and discipline in the corporate world to protect the interests of the shareholders as also the public, at large. The Institute of Chartered Accountants has come out with a Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013 with a aim to address auditors responsibility while carrying out a limited review or other attest services, issues in reporting on section 143(12) in audit of consolidated financial statements and more of such incidental issues that would arise before the auditors in complying with the requirements of this section and the related Rules. Besides, this Guidance Note gives much needed guidance on the concepts of reasons to believe”, “suspicion”, etc., and other procedures involved.

Following presentation is based on the above subject:-

https://drive.google.com/file/d/0B1rRav-P4-8JYkdERGdLTG1Ib2c/view?usp=sharing

SIMPLIFIED ITR FORMS

Government notifies simplified ITR forms; now taxpayers earning exempt income above Rs 5,000 can file ITR-1 and 4S

https://drive.google.com/file/d/0B1rRav-P4-8JTDRkMk56Mk9xOE0/view?usp=sharing

Valuation and Abatement for Goods Transport Agency (GTA) Service

As per Serial No. 7 of Notification 26/2012-ST, dated 20/6/2012, the service tax is payable for services provided by GTA on 25% of gross amount charged. The abatement of 75% of gross amount charged is permitted for determining the value on which tax is payable. This prohibits availment of credit on inputs, capital goods and input services used for providing taxable service.

With effect from 1/4/2015, amendment has been made vide notification no.08/2015-ST, dated 1/3/2015, which has reduced abatement from 75% to 70%. Thus service tax will be payable on 30% of the value as against 25% of the value with effect from 1/4/2015.

As per notification no 14/2015-ST, dated 19/5/2015, rate of service tax has been raised to 14% with effect from 1/6/2015, instead of 12.36% (Service tax 12%, Education cess 2% and Secondary and Higher Education cess 1%) up-till 31/5/2015

Illustrations: 

Let amount of GTA service charged is Rs.50,000.00

Service Tax before 1/4/2015

Value of GTA service charged is Rs.50,000.00

Less: Abatement @ 75%              Rs.37,500.00

Taxable value                               Rs.12,500.00

Service Tax on above @12.36%  Rs.1,545.00

Service Tax after  1/4/2015 up to 31/5/2015

Value of GTA service charged is Rs.50,000.00

Less: Abatement @ 70%              Rs.35,000.00

Taxable value                               Rs.15,000.00

Service Tax on above @12.36%  Rs.1,854.00

Service Tax from  1/6/2015 

Value of GTA service charged is Rs.50,000.00

Less: Abatement @ 70%              Rs.35,000.00

Taxable value                               Rs.15,000.00

Service Tax on above @14%  Rs.2,100.00