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Important Considerations for audit report on financial statement for the year ended March 31, 2018

As the financial year 2017-18 end is approaching, auditors are geared for performing audit procedures for issuance of the audit report on the financial statements of the auditess.  Objective of this article is to bring out certain important consideration to be made while reporting on these financial statements.  1)  Reporting on Specified Bank Notes (SBNs) (In main audit report): By way of the MCA notification, companies were required to make disclosures related to the SBN’s in the financial statement for the period ended March 31, 2017. It is to be noted that the provisions stated in Schedule III (Divisions I and II) to the Companies Act, 2013, and Rule 11(d) of the Companies (Audit and Auditors) Rule 2014 have not yet been withdrawn . Consequently, the previous year figures relating to SBNs are required to be given in the financial statements prepared for the financial year ending March 31, 2018.    Further, while reporting on the financial st...
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Benefits under Served From India Scheme of the Foreign Trade Policy (FTP)

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  Benefits under Served From India Scheme of the Foreign Trade Policy (FTP) I ntroduction-   This is the scheme, under foreign trade policy of india , under which certain service providers earning foreign exchange  are eligible for duty scrip credit which can be utilised for payment of duty upon import of certain articles. Objective of the Served from the India Scheme-  Objective of SFIS is to accelerate growth in export of services. Who is eligible for the benefits of served from india Scheme-  Served From India Scheme is applicable for Indian service providers rendering services  listed in Appendix 41 of Handbook of  Procedures 2009-14  (w.e.f. 01.01.2011) and having free foreign exchange earning of at least Rs. 10 lac in the current financial year. For Individual Indian Service Providers, minimum free foreign exchange earnings have to be  Rs 5 lac for eligibility of benefits under this scheme. For services rendered prior to 01....
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Benefits under Served From India Scheme of the Foreign Trade Policy (FTP)

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Benefits under Served From India Scheme of the Foreign Trade Policy (FTP)
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Corporate Maniac: Payment of Sitting Fees to Directors – Whether tax...

Corporate Maniac: Payment of Sitting Fees to Directors – Whether tax... : INTRODUCTION One is often confronted with the question whether there should be deduction of tax at source against payment made by wa...
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Payment of Sitting Fees to Directors – Whether tax is deductible at source?

INTRODUCTION One is often confronted with the question whether there should be deduction of tax at source against payment made by way of sitting fees to directors for attending meetings of the board and the committees constituted by it. The day before the Finance Bill, 2012 was presented in the parliament of India by Hon’ble Finance Minister Pranab Mukharji there was an ambiguity  regarding the applicability of TDS provisions on the payment of sitting fees to the directors, that whether TDS is required to be deducted under section 192 or under section 194J of the Income Tax Act, 1961 or no TDS itself. But it seems that the above ambiguity has been resolved by the Finance Bill, 2012 with an introduction of  clause (ba ) to sub section (1) of the Section 194J   effective from 1 st July, 2012.    SIGNIFICANCE OF THE ISSUE T he above issue is gaining significance in the current scenario when large corporations in india are paying substantial su...
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