NEW RETURN FORMS FOR ASSESSMENT YEAR 2010-11 | ||
Form No. | Heading | Instructions |
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For Individuals and HUFs not having Income from Business or Profession | ||
For Individuals/ | ||
For individuals and HUFs having income from a proprietory business or profession | ||
For firms, AOPs and BOIs | ||
For Companies other than companies claiming exemption under section 11 | ||
For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) | ||
Where the data of the Return of Income in Forms Saral-II (ITR-1), ITR-2, ITR-3, ITR-4, ITR-5 & ITR-6 transmitted electronically without digital signature | ||
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13 May 2010
NEW RETURN FORMS FOR ASSESSMENT YEAR 2010-11
12 May 2010
VAT Trade Cir - 16T of 2010 - Extension of Date for Physical Submission of Acknowledgement of Audit Report in Form 704 for the dealers
TRADE CIRCULAR
Date: 10/05/2010
No. DC/704 Cell/B-759
TradeCir. No- 16 T of 2010
Sub : | Extension of Date for Physical Submission of Acknowledgement of Audit Report in Form 704 for the dealers |
Ref: | (1) Government Notification No.VAT/AMD-1009/ 2) Trade Circular 27T of 2009 No. dated 10th October 2009. 3) Trade Circular 05T of 2010 No. dated 28th January 2010. 4) Trade Circular 13T of 2010 No. dated 31st March 2010. |
As per Trade Circular 13T of 2010 No. dated 31st March 2010 Last date for filing the Audit Report in form 704 for F.Y. 2008-09 was 30th April 2010.Dealers are required to submit "the statement of submission of audit report in form e-704" along with required document on or before 10th May 2010.
This office has received representation from trade to extend the date of submission .Considering the same the date of submission of "the statement of submission of audit report in form e-704" along with required document is hereby extended up to 15th May 2010.
(Sanjay Bhatia)
Commissioner of Sales Tax,
11 May 2010
IndianCAs on FaceBook
Hi members,
IndianCAs group is now on FaceBook. if you are on faceBook, just click the link below and be part of IndianCAs on Facebook.
best regards,
Ashwin Nagar FCA and SAP-FICO\SEM-BCS
Success is not permanent and failure is not final
Ph: India: +91-98330-15352 US: +1-323-325-4111
Facebook : http://www.facebook.com/ashwinnagar
Twitter : http://twitter.com/ashwinnagar
Linkedin : http://in.linkedin.com/in/ashwinnagar
06 May 2010
CBEC Clarification on Cenvat Credit
Clarification regarding availment of CENVAT credit on input services
Circular No. 122/03/2010-ST, dated 30-4-2010
Representations have been received by Board regarding denial of CENVAT credit on input services in certain cases. Some of the cases where doubts have been raised by field formations are given below:
2. As per Rule 4 (7) of the CENVAT Credit Rules, 2004, the CENVAT credit on input services is available only on or after the day on which payment of the value of input service and service tax is made. The section 67 (4) of the Finance Act, 1994, provides that gross amount charged includes payment made by issue of credit / debit notes or by entries in the books of account, where the transaction is with any associated enterprise.
A doubt has arisen as to whether CENVAT credit can be taken by "Associate Enterprises" when debit is made in book of accounts or when book adjustments/ debit or credit in accounts is made, or if the CENVAT credit of the service tax paid on input service is available only after the actual payment of the value of input service has been made in money terms.
3. As per sub-rule (7) of Rule 4 of the CENVAT Credit Rules, 2004,
"Credit in respect of input service shall be allowed, on or after the day on which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or as the case may be, challan referred to in Rule 9".
A doubt raised is as to whether the receiver of input service can take credit only after the full value that is indicated in the invoice, bill or challan raised by the service provider, and also the service tax payable thereon, has been paid. It has been represented that in many cases, after the invoice is issued by the service provider, the service receiver does not make the full payment of the invoiced amount on account of discount agreed upon after issuance of invoice; or deducts certain amount due to unsatisfactory service; or withholds some amount as security to be held during contract period. Due to these reasons the value paid may not tally with the amount indicated in the invoice, bill or challan. In such cases the department has raised objections to the taking of credit as it does not meet the requirement of the said sub-rule (7).
4. Thus the following issues relating to availment of CENVAT credit need clarification,-
Whether CENVAT credit can be claimed
(a) when payments are made through debit/credit notes and debit/credit entries in books of account or by any other mode as mentioned in section 67 Explanation (c) for transactions between associate enterprises; or
(b) where a service receiver does not pay the full invoice value and the service tax indicated thereon due to some reasons.
5. Matter has been examined and clarification in respect of each of the above mentioned issues is as under,-
(a) When the substantive law i.e. section 67 of the Finance Act, 1994 treats such book adjustments etc., as deemed payment, there is no reason for denying such extended meaning to the word 'payment' for availment of credit. As far as the provisions of Rule 4 (7) are concerned, it only provides that the CENVAT credit shall be allowed, on or after the date on which payment is made of the value of the input service and of service tax. The form of payment is not indicated in the same and the rule does not place restriction on payment through debit in the books of accounts. Therefore, if the service charges as well as the service tax have been paid in any prescribed manner which is entitled to be called 'gross amount charged' then credit should be allowed under said rule 4 (7). Thus, in the case of "Associate Enterprises", credit of service tax can be availed of when the payment has been made to the service provider in terms of section 67 (4) (c) of Finance Act, 1994 and the service tax has been paid to the Government Account.
(b) In the cases where the receiver of service reduces the amount mentioned in the invoice/bill/challan and makes discounted payment, then it should be taken as final payment towards the provision of service. The mere fact that finally settled amount is less than the amount shown in the invoice does not alter the fact that service charges have been paid and thus the service receiver is entitled to take credit provided he has also paid the amount of service tax, (whether proportionately reduced or the original amount) to the service provider. The invoice would in fact stand amended to that extent. The credit taken would be equivalent to the amount that is paid as service tax. However, in case of subsequent refund or extra payment of service tax, the credit would also be altered accordingly.
6. The contents of this circular may be suitably brought to the notice of the field formations. In case any difficulty is faced in implementing these instructions, the same may be brought to the notice of the undersigned.
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Best Wishes
CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
+91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx
04 May 2010
MEF Hosted for 2010-11
| Multipurpose Empanelment Form for the year 2010-11 - (04-05-2010) | ||||||||||
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Best Wishes
CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
+91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx
30 April 2010
Amendments to Finance Bill,2010 [1 Attachment]
[Attachment(s) from Ashwin Nagar included below]
Pranab hands out tax concessions to India Inc
Our Bureau
FM's Oopening Speech at Consideration Stage of Finance Bill,2010- see attachment
Finance Bill ,2010 passed in Lok Sabha On 29.04.2010.Few New Tax relief has been proposed during the discussion and same has been incorporated in the Bill while passing by the Lok Sabha. Amendments are given below.
AMENDMENTS TO FINANCE BILL, 2010
Sl. No. | Clause No. | |
1. | Page 5, line 46, Omit 'and";' | |
2. | Page, after line 46, insert – '(ab) on or after the 1st day of April, 2010, where the specified business is in the nature of building and operating a new hospital with at least one hundred beds of patients; (ac) on or after the 1st day of April, 2010, where the specified business is in the nature of developing and building a housing . project under a scheme for slum redevelopment or rehabilitation framed by the Central Government or a State Government, as the case may be, and which is notified by the Board in this behalf in accordance with guidelines as may be prescribed; and"; | 10 10 |
3. | Page 5, line 48,— for "and clause (aa)" substitute "clause (aa), clause (ab) and clause (ac)'" | 10 |
4. | Page 5, after line 52, insert— '(v) building and operating, anywhere in India, a new hospital with at least one hundred beds for patients; (vi) developing and building a housing project under a scheme for slum redevelopment or rehabilitation framed by the Central Government or a State Government, as the case may be, and notified by the Board in this behalf in accordance with the guidelines as may be prescribed;'. | 10 |
5. | Page 6, line 47,— after "to a limited liability partnership" insert "or any transfer of a share or shares held in the company by a shareholder". | 18 |
6. | Page 7, for lines 24 and 25, substitute— "asset or share or shares not charged under section 45 by virtue of conditions laid down in the said proviso shall be deemed to be the profits and gains chargeable to tax of the successor limited liability partnership or the shareholder of the predecessor company, as the case may be, for". | 19 |
7. | Page 7, after Iine 30, insert— '(aa) after sub-section (2A A), the following sub-section shall be inserted with effect from the 1st day of April, 2011, namely:— "(2AAA) Where the capital asset being rights of a partner referred to in section 42 of the Limited Liability PartnershipAct, 2008 (6 of 2009) became the property of the assessee on conversion as referred to in clause (xiiib) of section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the share or shares in the company immediately before its conversion.";' | 20 |
8. | Page 14, after line 7, insert— Amendment of the Second Schedule. '62A. In the Second Schedule to the Customs Tariff Act, against heading No. 16, in column (3), for the entry "Rs. 2500 per tonne", the entry "Rs. 10000 per tone" shall be substituted.'. | 62A (New) |
9. | Page 17, after line 49, insert— '(3A) for clause (77c), the following clause shall be substituted, namely:— '(77c) "passenger" means any person boarding an aircraft in India for performing domestic journey or international journey.';'. | 75 |
10. | Page 39, line 9, in column (3), after "on inputs" insert "or input services". | The Eighth Schedule |
Pranab hands out tax concessions to India Inc
| Opposition unhappy, says nothing for the common man. |
Our Bureau
New Delhi, Apr 29
The Finance Minister, Mr Pranab Mukherjee, today made a number of amendments to the Finance Bill including raising the export duty on iron ore lumps and increasing the standard rate on raw cotton exports.
Simultaneously, he reduced the import duty on melting scrap for stainless steel, and the service tax burden on construction services and air travel. Mr Mukherjee also offered a debt relief package for coffee growers.
The main Opposition party, Bhartiya Janata Party (BJP), walked out saying that there was no relief for the common man and farmers. The Left parties too staged a walkout. The Finance Bill was later passed by the Lok Sabha.
As part of the reply to the discussions on the Finance Bill, 2010, the Finance Minister announced a debt relief package to the small growers of coffee. He also provided relief to medium and large growers by allowing re-scheduling of loans. The total financial implication for the Centre would be Rs 241.33 crore, while the benefit to coffee growers will be about Rs 362.82 crore.
Tax Deduction
On the income-tax front, Mr Mukherjee announced that new hospitals with at least 100 beds and constructed anywhere in India would now be entitled for investment-linked deduction.
Also, housing projects developed for slum redevelopment and rehabilitation under Rajiv Awas Yojana (RAY) will be eligible for investment-linked deduction for income-tax purposes.
Another relief for the housing sector came by way of reduced service tax burden on construction services.
"Several suggestions have been made by trade associations. Considering all inputs, I propose to provide tax relief to this sector by enhancing the rate of abatement from 67 per cent to 75 per cent of the gross value where such value includes value of land constructed upon," Mr Mukherjee said.
However, the real-estate industry felt that the measures for housing were a mixed bag. "Although the service tax outgo will now be calculated on 25 per cent and not 33 per cent of the value of the house, it still falls short of expectations. The industry was hoping that land value will be completely excluded from such calculation, which has not happened. Also, the abatement is lower than what the industry had sought (90 per cent)," said Mr Pratik Jain, Executive Director of KPMG.
Real-estate company Parsvnath Developers Chairman, Mr Pradeep Jain, said the Government's move to exempt service tax on constructions under JNNURM and RAY was a welcome step.
Meanwhile, on the aviation sector, the Finance Minister clarified that Rs 100 will be the maximum service tax a domestic air traveller will pay for each journey, while travel to and from the North-East will be totally exempt. Mr Mukherjee added that Rs 500 will be the maximum that an economy class international air traveller will have to pay as service tax.
The Finance Minister also announced an increase in the export duty on iron ore lumps from 10 per cent to 15 per cent. This move was hailed by the steel-makers, stating that this has been a long-standing demand of the steel industry.
"This is certainly a positive move for the steel industry as domestic availability of iron ore will increase which will help steel makers," said Mr Sushil Maroo, Director, Jindal Steel and Power Ltd.
Limited Liability Partnership
On limited liability partnership (LLP), the Finance Minister announced that transfer of shares by the shareholders of the company would be tax exempt. This move was in consequence of the decision to allow tax neutrality for conversion of a company into LLP.
"The one important and very positive change is the exemption from levy of capital gains tax in the hands of shareholders upon the conversion of a company into a limited liability partnership. Arguably, such a conversion is a tax neutral event as it is, but the clarification is a step in the right direction.
"One had hoped that the conditions which permit only small companies to convert tax neutral would have been removed," Mr Dinesh Kanabar, Deputy CEO and Chairman Tax, KPMG in India told Business Line.
Drugs cheaper
The Finance Minister also announced reduction in basic customs duty on 11 specified drugs including two anti-cancer and one for the treatment of AIDS to 5 per cent.
These drugs are also being exempted from countervailing duty by way of excise duty exemption.
Meanwhile, Fortis Healthcare Ltd welcomed the measures announced for the health care industry. "It will contribute to the creation of much needed infrastructure in the country. This is symbolic of the Government's efforts to provide the support required by the sector," the company said in a statement.
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Attachment(s)
1 of 1 File(s)
28 April 2010
CFE APPLICATION
| Certified Facilitation Centres under ACES Project of the CBEC - (13-04-2010) | |||||||||
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IPL from a Finance perspective [1 Attachment]
About IPL, What's going on in BCCI could be of Businessman's interest, what's going on in Parliament is of Politician's interest, but what is going on in IPL as a Financial Project, is certainly of Chartered Accountants's interest.
So, please find attached a powerpoint presentation giving insights of IPL from a Finance perspective.
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Attachment(s) from Ashwin Nagar
1 of 1 File(s)
27 April 2010
New Income Tax Return Form SARAL II for Assessment Year 2010-11 [2 Attachments]
New Income Tax Return Form SARAL II for Assessment Year 2010-11.
CBDT notifies New Income Tax Return Form SARAL II (ITR 1) for Assessment Year 2010-11 for Individuals having income from Salary/Pension/Income from One House Property (Excluding loss brought forward from previous years) / Income from Other Sources (Excluding winning from Lottery and Income from Race Horses). CBDT also notifies Income Tax Return Verification Form ITR-V for Assessment Year 2010-11 for SARAL II (ITR-1) ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 transmitted electronically without digital signature.
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Attachment(s) from Ashwin Nagar
2 of 2 File(s)
25 April 2010
Implementation of Section 51A of Unlawful Activities (Prevention) Act, 1967
Implementation of Section 51A of Unlawful Activities (Prevention) Act, 1967
The provisions of the Unlawful Activities (Prevention) Act,1967 were amended in 2008, by inserting Section 51A which was notified on 31.12.2008 by the Govt. of India. Section 51A reads as under :-
The provisions of the Unlawful Activities (Prevention) Act,1967 were amended in 2008, by inserting Section 51A which was notified on 31.12.2008 by the Govt. of India. Section 51A reads as under :-
"51A. For the prevention of, and for coping with terrorist activities, the Central Government shall have power to -
(a) freeze, seize or attach funds and other financial assets or economic resources held by, on behalf of or at the direction of the individuals or entities Listed in the Schedule to the Order, or any other person engaged in or suspected to be engaged in terrorism;
(b) prohibit any individual or entity from making any funds, financial assets or economic resources or related services available for the benefit of the individuals or entities Listed in the Schedule to the Order or any other person engaged in or suspected to be engaged in terrorism;
(c) prevent the entry into or the transit through India of individuals Listed in the Schedule to the Order or any person engaged in or suspected to be engaged in terrorism."
In order to implement the provisions of Sec. 51A effectively, the Ministry of Home Affairs, Govt. of India requested the Ministry of Corporate Affairs to issue an appropriate order to ICAI,ICSI and ICWAI to sensitize their members to the provisions of Section 51A of Unlawful Activities(Prevention ) Act, 1967. Accordingly the Ministry of Corporate Affairs vide its letter dated 22.03.2010 (copy enclosed) asked the ICAI to advise its members to act as per mandate of the Ministry of Home Affairs.
Accordingly, all members of ICAI are informed that as and when any member come across any such fact which is connected with the violation(s) of provision(s) of the Unlawful Activities (Prevention) Act, 1967, he must take action forthwith for the implementation of Sec 51A as per procedure laid down in the Office Memorandum dated 22/02/2010 issued by Ministry of Home Affairs, Government of India (copy of the Office Memorandum dated 22/02/10 is enclosed ).
In other words, the members of ICAI must ensure that in case any of their client match with the particulars of designated individual / entity, as per Order dated 08/07/2009,wherin the list of such designated individuals / entities have been given (copy of the said order dated 08/07/09 enclosed), they shall immediately, not later than 24 hours from the time of finding out such client, inform full particulars to the Joint Secretary (IS.I), Ministry of Home Affairs, at Fax No. 011- 23092569 and also convey over telephone on 011-23092736. The particulars apart from being sent by post should necessary be conveyed on e-mail id: isis@nic.in.
It is pertinent to mention that, besides the aforesaid, the Ministry of Home Affairs has separately issued an order dated 27/08/2009 to the regulators of the financial sectors, and to all the State Governments and UT Administrations, with regards to immovable property (copy of the order dated 27/08/09 enclosed).
[Note : Members may refer the Website of the Institute (www.icai.org) for the contents of the enclosures]
Accordingly, all members of ICAI are informed that as and when any member come across any such fact which is connected with the violation(s) of provision(s) of the Unlawful Activities (Prevention) Act, 1967, he must take action forthwith for the implementation of Sec 51A as per procedure laid down in the Office Memorandum dated 22/02/2010 issued by Ministry of Home Affairs, Government of India (copy of the Office Memorandum dated 22/02/10 is enclosed ).
In other words, the members of ICAI must ensure that in case any of their client match with the particulars of designated individual / entity, as per Order dated 08/07/2009,wherin the list of such designated individuals / entities have been given (copy of the said order dated 08/07/09 enclosed), they shall immediately, not later than 24 hours from the time of finding out such client, inform full particulars to the Joint Secretary (IS.I), Ministry of Home Affairs, at Fax No. 011- 23092569 and also convey over telephone on 011-23092736. The particulars apart from being sent by post should necessary be conveyed on e-mail id: isis@nic.in.
It is pertinent to mention that, besides the aforesaid, the Ministry of Home Affairs has separately issued an order dated 27/08/2009 to the regulators of the financial sectors, and to all the State Governments and UT Administrations, with regards to immovable property (copy of the order dated 27/08/09 enclosed).
[Note : Members may refer the Website of the Institute (www.icai.org) for the contents of the enclosures]
22 April 2010
IMP UPDATE : RBI Guidelines [1 Attachment]
[Attachment(s) from Ashwin Nagar included below]
Dear All,
Please go through the attached Notice/ Circular issued by HDFC Bank post the communication from RBI for Banks on Guidelines to follow in case of alterations on cheques. This will get implemented from July 01, 2010.
As per RBI Circular - DPSS.CO.CHD.
Prohibiting alterations / corrections on cheques :
No changes / corrections should be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee's name, courtesy amount (amount in figures) or legal amount (amount in words), etc., fresh cheque forms should be used by customers. This would help banks to identify and control fraudulent alterations.
In view of the above guidelines, with effect from July 01, 2010 no alterations in cheque will be allowed (even if signature is made at the place of alteration on cheque). These kinds of altered cheques will not be honored by Bank.
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Attachment(s) from Ashwin Nagar
1 of 1 File(s)
18 April 2010
ICAI MOU with CBEC- CFCs'
| Tuesday, April 13, 2010 | |||||
| Ministry of Minority Affairs | |||||
ICAI TO BE A FACILITATOR OF FINANCE MINISTRY'S E-INITIATIVE SIGNS MOU WITH THE CENTRAL BOARD OF EXCISE AND CUSTOMS | |||||
| 18:13 IST | |||||
| The Institute of Chartered Accountants of India (ICAI has signed a Memorandum of Understanding (MOU) with the Central Board of Excise and Customs (CBEC). Giving this information here today the President of ICAI, Shri Amarjit Chopra, said that under it the practicing members of ICAI will provide facility of e-filing of returns and documents to Central Excise and Service Tax assessees through Certified Facilitation Centres (CFCs). A CFC is a facility, other than the physical front offices or Facilitation centres of CBEC, which will be set up and operated by practicing Chartered Accountants in individual capacity or as proprietor or firm. With this the ICAI has become a facilitator of Finance Ministry's e-initiative. CBEC had introduced 'Automation of Central Excise and Service Tax' (ACES) programme to improve tax-payer services. ACES is a centralized web based application which enables the assessees to electronically interface with the department. It aims to reduce paperwork, transaction costs and increase accountability, efficiency and transparency. This initiative will immensely help all those assessees who may not have the requisite IT infrastructure / resources, to use ACES. An assessee is required to pay nominal fixed fees (maximum Rs 600/- for entering return data and Rs.200/-per return for uploading returns with ACES) for availing services of CFCs. With this MOU, the members can not only provide services as envisaged, but would also provide other services on request of the assesses. It opens a new professional avenue for the Members as they can now provide services to the assessees of Central Excise and Service Tax in filing their returns and other documents electronically under ACES. The Institute of Chartered Accountants of India), functioning under the aegis of the Ministry of Corporate Affairs, is in the process of setting up utility for online filing of application by members to obtain certificate under the scheme whereupon CBEC will provide user name and password to members to activate the facility. Members of the ICAI are spread across the country and this initiative will facilitate e-filing of returns and documents by assessees in every part of the country. | |||||
15 April 2010
Compliance Calender 2010 [1 Attachment]
[Attachment(s) from Ashwin Nagar included below]
1 of 1 File(s)
03 April 2010
Is current Bank Audit Allotment Procedure Just, Fair and Transparent?
| Are you disappointed with current Bank Audit allotment process? Let us discuss. Write your comments, compliants and suggestions on this wall. |
Consolidated FDI Policy [1 Attachment]
| Consolidated FDI Policy effective from 1st APril,2010- see attachment |
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Attachment(s) from Ashwin Nagar
1 of 1 File(s)
31 March 2010
Bank Branch Auditors List- RBI
| List of Branch Statutory Auditors recommended for appointment by RBI for the year 2009-10. - (31-03-2010) | ||||||
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28 March 2010
KYC Guidelines-Proprietary Concern
| | | |
Date: Mar 26, 2010 | Know your Customer (KYC) guidelines - accounts of proprietary concerns | |
|
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Best Wishes
CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
+91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx
27 March 2010
Materials on Bank Branch Audit for 2009-10 [1 Attachment]
[Attachment(s) from Ashwin Nagar included below]
Click attachment link below
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Attachment(s) from Ashwin Nagar
1 of 1 File(s)
25 March 2010
Bank Audit Engagement Letter- Word Format
Bank Audit Engagement Letter as suggeste by ICAI in Word Format-see attachment
The Branch Manager, Dt. /03/2010
Dear Sir,
Sub: Audit of accounts of your Branch for the year 2009-10 – Audit Engagement /Management Representations.
***
You have already been informed by your Management, that we have been appointed as the auditors to audit and report on the accounts of the Branch for the year 2009-10.
We have accepted the appointment, and we confirm that the audit shall be carried out in accordance with the applicable legal provisions and the regulatory requirements, besides the applicable authoritative pronouncements of the Institute of Chartered Accountants of India, with the objective of expressing an opinion on the Branch financial statements. For this purpose we will perform sufficient tests to obtain reasonable assurance as to whether the information contained in the accounting records and other source data is reliable and sufficient as the basis of the preparation of the financial statements; and whether the information is properly presented in the said statements.
You are aware that the responsibility for the preparation of the financial statements including adequate disclosure is that of the Management, and this includes the maintenance of adequate accounting records and internal controls, the selection and consistent application of appropriate accounting policies, including implementation of applicable accounting standards along with proper explanation relating to any material departures from those accounting standards. The management is also responsible for making judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Branch at the end of the financial year and of the profit or loss of the Branch for that period, and the safeguard of the assets of ;the Bank/branch.
We will conduct our audit in accordance with the auditing standards generally accepted in India and with the requirements of law. These Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the managements, as well as evaluating the overall financial statement presentation. However, having regarding to the test nature of an audit, persuasive rather than conclusive nature of audit evidence together with inherent limitations of any accounting and internal control system, there is an unavoidable risk that even some material misstatements of financial statements, resulting from fraud, and to a lesser extent error, if either exists, may remain undetected.
In addition to our report on the financial statements, we expect to provide you with a separate letter concerning any material weaknesses in accounting and internal control systems which might come to our notice through the Long Form Audit Report (LFAR), or otherwise.
We also wish to invite your attention to the fact that our audit process is subject to 'peer review' under the Chartered Accountants Act, 1949 and the reviewer may examine our working papers during the course such review.
We wish to complete some audit procedures even prior to the year-end, depending on your readiness / response.
In view of the severe time constraints imposed, we are confident you will make available to us, within the dates stipulated, the following Branch returns / statements duly completed, pre-reviewed and duly authenticated, to enable us to furnish our reports in the form and manner desired of us by law or by the Reserve Bank of India and not necessarily in the form and manner prescribed by the Bank.
Statements / returns:
a) the Balance Sheet as at 31.03.2010
b) the Profit and Loss Account for the year 2009-10
c) the statements relating to the particulars of Advances as at 31.03.2010 and
d) other supporting returns / statements / annexures.
(including those covering also the LFAR requirements)
Information / clarification as stated in Annexure 'I' to this letter in connection with our assignment, may please also be expedited.
To enable us to monitor the progress of the audit and completion of the assignment, please indicate / mentioned, the actual dates(s) of completion as well as handing over to us of each statement / return / confirmation or other information required to be prepared by your (as per the contents of the letter of appointment sent to us), by your endorsement on each such statement / return / confirmation, before the same (duly authenticated) are handed over to us on 1st April, 2010
We await your commitment.
As part of the audit process, we will expect to receive from the Management, written confirmation of the representations made to us and a written response (para-wise), to our requirements is imperative, and such response is to be based on your verification of facts.
We shall be greatful if your could confirmed the name(s) of the Officer(s) designated by the Branch to comply with our requirements in connection with the audit, so that our reports are expedited.
We shall appreciate your co-operation in the matter.
Thanking You
Yours faithfully
For Chartered Accountants
Proprietor / Partner
Membership No.
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CA. V.M.V.SUBBA RAO
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After the ICAI regional council and central council elections , there is an anxious waiting period for resul...
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Here is the final list of candidates won from WIRC for Central Council: Sr. No. Name of Candidate 1 CA. Adukia Rajkumar Satyanarayan 2 CA...
