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Global auditors feel the heat, may face tighter scrutiny The move is expected to give a fillip to Indian audit firms and designed to fill the gaps the big four have allegedly misused, including with the help of their huge network and financial muscles, a top regulatory official said. Global auditing firms may come under greater scrutiny for any wrong-doing as regulators mull ways to make them more accountable, with the role of such auditors -- especially the Big Four -- coming under the lens in various corporate misdoings. The move is expected to give a fillip to Indian audit firms and designed to fill the gaps the big four have allegedly misused, including with the help of their huge network and financial muscles, a top regulatory official said. Prime Minister Narendra Modi has also talked of the need for Indian audit firms growing to join the ranks of global giants. A big area of concern pertains to the big guns seeking to wash off their hands whenever their names crop up in any

When GST heads to the courtroom Compliance requirements, valuation, classification, transfer of input tax credit are likely to lead to tax litigation, say experts. SAYAN GHOSAL writes Two months after coming into effect, India’s new indirect tax has already begun making its rounds in the courtrooms. Tax professionals and corporate lawyers are gearing up for a swathe of increased litigation, given the large influence that the goods and services tax (GST) has on economic participants. “The GST has caused and continues to have some teething problems as to its applicability and compliance requirements. The concerns arising from these issues are reflected in the various writ petitions filed in high courts across the country,” says Nishant Shah, partner, Economic Laws Practice. According to experts, several issues related to enhanced compliance requirements, valuation, classification and the availability and transfer of input tax credit are expected to take centrestage in tax litigation

I-T dept to appoint 7600 more TRPs to cover entire country Every district of the country will soon have at least one trained personnel to assist small taxpayers in filing ITRs, with the Income Tax Department proposing to appoint 7,600 additional experts whose services will also be available on mobile application. The Central Board of Direct Taxes (CBDT), the apex policy-making body of the tax department, has decided to enlarge the ambit of the 2006 Tax Return Preparer Scheme (TRPS) by making the service "digital" and covering all the 708 districts of the country. "It is proposed to provide sufficient number of Tax Return Preparers (TRPs) in every district by scaling up of number of TRPs from a total 5,400 to 13,000 in the country," according to an I-T department blueprint, accessed by PTI. "It is proposed that every district in the country should have at least three TRPs," it added. A senior official working on the project said the aim was to ensure ha

Sebi advisory panel to discuss extension of trading hours An advisory committee of market regulator Securities and Exchange Board of India (Sebi) is likely to discuss a proposal for extending stock market trading hours, even as several brokers feel any such move would increase costs and logistics burden for them. Currently, the stock market in India opens at 9 am and closes at 3.30 pm, but there is a view — including among stock exchanges — that the trade hours could be extended till up to 7.30 pm to better align domestic trading with global markets. The proponents of this proposal feel extended hours can help boost trade volumes, thus generating greater revenue for exchanges, and help deepen the equity markets in the country. The proposal is likely to be discussed by Sebi’s Secondary Market Advisory Committee. The Business Standard , New Delhi, 11th September 2017

Now, taxmen to snoop on social networking sites to trace black money A photo of your shiny new luxury car on Instagram or a costly watch on Facebook may lead the taxman to your door as the tax department from next month will begin amassing virtual information to trace black money. 'Project Insight', likely to be launched next month, will use big data analytics to match information from social media sites to deduce mismatches+ between spending pattern and income declaration. The tax department will analyse mismatches in income declarations and spending patterns to trace tax evasions and black money, an official said. The government has also made the linking of PAN with Aadhaar mandatory to get a 360 degree view of a person's income and assets. The tax department had last year signed a pact with L&T Infotech for the implementation of Project Insight, which is designed to strengthen the non-intrusive information driven approach for improving tax compliance. "Curre

FinMin to initiate Budget exercise nextweek This might be this govt's last Budget before 2019 general elections Work on India's first post-goods and services tax (GST) Budget will start next week, with the finance ministry issuing time lines for different processes that will culminate with its presentation in February. It may also be the current government's last full-fledged Budget, as general elections are due in 2019. Even though independent India's biggest tax reform of GST was implemented from July 1, the Budget for 2017-18 (April-March), had followed the practice of tax revenue projections under the heads of customs duty, central excise and service tax, alongside direct tax numbers. With excise duty and service tax being subsumed in the GST, the classifications will undergo change, an official said. While a new classification for revenues to be accrued from GST will be included in the Budget for next fiscal year, for the current year two sets of accounting may

Next set of NPAs must have credit rating: RBI Tough to comply with the norm, say bankers Aresolution plan finalised for the next set of stressed assets identified by the Reserve Bank of India (RBI) will be subject to a rating requirement if the plan for resolving their bad debts falls outside the scope of the Insolvency and Bankruptcy Code (IBC). The central bank has conveyed to the banks that if any resolution plan is finalised outside the ambit of the IBC, the residual debt would have to be rated as investment grade by two external credit rating agencies for bank loan rating. In case the plan fails to get the rating, the accounts would be referred for resolution under the IBC before December 31. Though there has been no official communication to the companies regarding this rating requirement, they have been informally informed about this by the lenders, who would appoint credit rating agencies for this. The RBI, in its letter dated August 28, reminded banks about the resolution