MCA mandates Companies to use Software with Audit Trail of each Transaction

Auditing Software

The Ministry of Corporate Affairs (MCA) notified that every company
which uses accounting software for maintaining its books of account
shall use only such accounting software which has a feature of recording
audit trail of each and every transaction, creating an edit log of each
change made in books of account along with the date when such changes
were made and ensuring that the audit trail cannot be disabled.

The Government notified the Companies (Accounts) Amendment Rules, 2021
which seeks to amend Companies (Accounts) Rules, 2014.

In rule 3, in sub-rule (1), the proviso shall be inserted which says,
“Provided that for the financial year commencing on or after the 1st day
of April 2021, every company which uses accounting software for
maintaining its books of account, shall use only such accounting
software which has a feature of recording audit trail of each and every
transaction, creating an edit log of each change made in books of
account along with the date when such changes were made and ensuring
that the audit trail cannot be disabled.”

In rule 8, in sub-rule (5), after clause (x), the two clauses shall be
inserted.

Firstly, the details of an application made or any proceeding pending
under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the
year along with their status as at the end of the financial year.

Secondly, the details of difference between the amount of the valuation
done at the time of one time settlement and the valuation done while
taking loan from the Banks or Financial Institutions along with the
reasons thereof.”

The notification shall come into force with effect from the 1 April,
2021.

MCA notifies Amendment in Director’s Remuneration

company act

The Ministry of Corporate Affairs (MCA) notified the amendment in the
director’s remuneration. The notification seeks to amend Schedule V of
the Companies Act, 2013, in PART II, under the heading “Remuneration”.

Read More:
https://www.taxscan.in/mca-notifies-amendment-in-directors-remuneration/106273/

HSN Code on GST Invoice Mandatory w.e.f. 1st April 2021, reminds CBIC

gst

The Central Board of Indirect Taxes and Customs (CBIC) reminded the HSN
Code on GST Tax Invoice Mandatory w.e.f. 1st April 2021.

The Taxpayers whose aggregate Turnover is up to Rs. 5 crores in the
preceding Financial Year HSN code of 4 digits is mandatory for all the
B2B tax invoices and optional for B2C tax invoices on the supplies of
Goods and Services.

It is noteworthy, important system changes need to be integrated in your
e waybills, Delivery challans, Tax invoices, GSTR 1 reporting, Shipping
bills , GST refund applications and further note that options available
for nonreporting under Table 17 and Table 18 would be done away from FY
2122 positively.

For nonreporting in Table 17 and Table 18 in GSTR 9 of FY 2021, we need
to wait for the notification which may be issued by appropriate
notification.

E-Invoice mandatory for entities having Turnover of Rs. 50 Crores

E-Invoice mandatory for entities having Turnover of Rs. 50 Crores: CBIC
reduces threshold limit

The Board seeks to amend notification No. 13/2020 – Central Tax, dated
the 21st March, 2020

Read More:
https://www.taxscan.in/e-invoice-mandatory-for-entities-having-turnover-of-rs-50-crores-cbic-reduces-threshold-limit/104248/

Mere Disallowance’ of an Expense Does Not Warrant a Penalty for Filing

Mere disallowance’ of an Expense does not warrant a Penalty for filing
inaccurate particulars of Income: ITAT

The Income Tax Appellate Tribunal (ITAT), Delhi Bench ruled that “Mere
disallowance” of an expense does not warrant a penalty for filing
inaccurate particulars of income.

Non-Declaration of Intent can’t be a Ground for Rejecting Benefit

Non-Declaration of Intent can’t be a ground for Rejecting Benefit to an
Exporter under MEI Scheme: Bombay High Court

Division Bench of the Bombay High Court held that an exporter eligible
under the Merchandise Exports from India Scheme(MEIS) cannot be denied
benefit under the scheme on the ground of non-declaration of intent.

The judgment was pronounced by the division Bench consisting Milind N.
Jadhav, J. and Ujjal Bhuyan, J , in the writ petition filed by Portescap
India Private Limited, challenging the rejection of its applications
filed under the Merchandise Exports from India Scheme by the respondents
on the ground of mis/non declaration of intent. Accepting the contention
of the petitioner and relying on the decisions of the Madras High Court
in Pasha International Vs. Commissioner of Customs, Tuticorn (2019(365)
E.L.T. 669 (Mad.)) and M/s. Greenglobe Exports India P Ltd Vs. Asst.
Commission of Customs &Ors.( 2018-TIOL-94-SC-MAD-CUS),  the Court held
that except for the inadvertent mistake of non statement of declaration
of intent, the petitioner is otherwise eligible and entitled to the
reward under MEIS.

The Petitioner placed its arguments on various rulings including
Mangalore Chemicals & Fertilizers Ltd Vs. Deputy Commissioner
(2002-TIOL-234-SC-CX) wherein it was held that the intention of the
legislature under the Merchandise Exports from India Scheme is to
provide rewards to exporters to offset infrastructural inefficiencies
and associated costs and therefore any procedural irregularity or
mistake committed by the claimant cannot be a ground for denial of
benefit.