Key Topics:

FEMA

• FEM (EXPORT OF GOODS & SERVICES) REGULATIONS, 2015

AUDIT

• INDIAN ACCOUNTING STANDARD16

DIRECT TAX

• 270A

Introductory Remarks:
A high level inter-ministerial committee was constituted in 2017 under the Chairmanship of Secretary Department of Economic Affairs, to study the issues related to virtual currencies. The mandate of the Committee included examination of policy and legal framework for the regulation of virtual currencies. The subject of virtual currencies is assuming importance day by day after every country in the world drafting regulations either to allow or prohibit usage of same. Further, the current regulatory and legal framework does not squarely cover the issues presented by the usage of virtual currencies and technology involved therein.

The absence or inadequate regulatory and legal framework over the usage of virtual currencies presents a challenge to the customers, economy and society. The recent ponzi scheme unearthed by Pune Police where a person claiming himself to be a Bitcoin1 entrepreneur has duped 8000 people involving INR 2000 Crore scam2. Also, various scams in other countries and the value of Bitcoin falling rapidly on the Coin Stock Exchanges and such value is not being backed by any concrete assets, the virtual currencies offer various challenges. The Ministry of Finance in India has issued a press release dated 29th Dec 173 stating that virtual currencies do not have any intrinsic value and are not backed by any kind of assets and cautioned that such currencies are not backed by Government and thereby are not legal tender.

Further, there is also classification issue in the virtual currencies, which also offers a significant challenge in designing the regulatory and legal framework around the same. Many countries generally classify virtual currencies into payment, utility and security tokens. Also, in certain countries another category of hybrid tokens that share characteristics of multiple categories also exits.

Read more: First Note on Banning of Cryptocurrency & Regulation of Official Digital Currency Bill 2019

Dear All,

Today marks an important milestone in the journey of our organisation. From today, we become eligible to start officially using the expression ‘decade’, to convey the age of our organisation. I bow down to each one who has supported all through the past years to make our organisation as it stands today. I wish and pray that each one will continue their best efforts and support in the  years to come.

When I sit back and recollect, it’s natural that I was forced to see how last decade flew by. When I started the firm, I would not say that, I had a clear vision, clear path and clear destination. What I had immensely is the unstoppable spirit that I must live my life big size. Never there was a time, I felt that this life is worthless to pursuit. I had from the day one, a dream of creating an organisation which should continue beyond me. When I used to talk about such dream to people in the profession, all I could understand is that I am treading a path, which is less travelled, and challenges will be most  obvious. Despite the theoretical challenges and various setbacks, which I have picked up from various people, I decided to embark my journey.  

Read more: Annual Reviews 2019

In this edition, we bring you to quite a few interesting articles.
The article on ‘Affordable Housing – Income Tax & GST Perspective’ deals with tax incentives under both the taxation laws for a business which is engaged in making the goal of this government true. We have also commented on certain issues from both the taxation laws with respect to affordable housing.

We also have an article on ‘Gifts, Discounts, Credit & Impact thereof’, wherein one of the issues in GST with respect to the gifts, discounts and impact of credit is detailed. This is based on the recent rulings of AAR and Circulars issued by CBIC on the said subject.

The next article is on ‘MSME vis-à-vis Internal Audit’, which brings the importance of internal audit for MSMEs and the key challenges faced by Auditor in auditing such auditees.

The final one is on the new section introduced by Finance (No.2) Bill, 2019 in direct taxation, which deals with deduction of tax by individuals or HUFs when using the services of contractor or professionals. We have also contributed certain FAQs for the benefit of Clients.

Read more: SBS Wiki E Journal July 2019