Kwatra Dhawan & Co.

Link to join the Webinar is as following:
https://us06web.zoom.us/j/89763255901?pwd=EyEQ7RfEQOWUEYWG2QqLLmKh7ExKfE.1

Meeting ID: 897 6325 5901
Passcode: ICAILDH

We are pleased to announce a virtual knowledge session on Foreign Exchange Management Act, 1999 by our esteemed partner CA Vikas Kwatra.

Late Fee Payable for Delay in Furnishing of _FORM GSTR-4_ for the Financial Year 2021-22 shall stand Waived for the Period from the 1st May, 2022 till the 30th June, 2022

A list of details which can be asked for by members from bank branches while starting the audit considering the various circulars issued by RBI time to time is given below:

ILLUSTRATIVE LIST OF DETAILS CAN BE ASKED FOR LFAR AUDIT FROM BRANCHES
Note: Following list is illustrative only. Members can add/delete/modify the same as per their requirement/experience and according to nature of business of branch

1) Provide the cash retention limit of the branch.

2) Provide Audit Trail/list of entries raised by other branches on the branch under audit but not responded (IBR) as on 31.3.2022 at the end of day.

3) Provide the previous year list of NPA accounts as on 31.3.2021 and MOC issued by previous year branch auditor.

4) Provide Audit Trail from CBS containing all the instances of modification of rate of interest on all loan accounts, time to time during the year under audit with value date.

5) Keep ready all the circulars relating to modification of MCLR/EBLR issued by bank during the year time to time.

6) Provide Audit Trail from CBS containing all the instances of regular as well as ad-hoc/short review/renewal of credit facilities during the year. (Refer to RBI circular RBI/2020-21/27 DoS.CO.PPG.BC.1/11.01.005/2020-21 August 21, 2020 on Ad-hoc/Short Review/Renewal of Credit Facilities)

7) Keep ready detailed Board approved policy on methodology and periodicity for review/renewal of credit facilities. (Refer to RBI circular RBI/2020-21/27 DoS.CO.PPG.BC.1/11.01.005/2020-21 August 21, 2020 on Ad-hoc/Short Review/Renewal of Credit Facilities)

8) Keep ready bank policy with regard to credit rating done for the credit facilities of bank's borrowers from RBI accredited Credit Rating Agencies

9) Provide the following details
a) List of accounts where branch has to obtain valid credited rating from RBI accredited Credit Rating Agencies but not obtained
b) Accounts where in credit rating taken but expired.
c) Keep ready details of all the valid rating available.

10) Provide list of all the borrowers, where, buy back of shares has been done during the year under audit.

11) Provide list of all the borrowers where any loan has been disbursed by bank for buy back of shares

12) Provide Audit Trail containing the data relating to all modification of drawing power done in CBS during the year under audit with value date.

13) Keep ready all the stock statement/financial data obtained from borrowers during the year under audit. Further keep ready the calculations, how monthly/periodically DP was calculated by branch.

14) Keep ready, the bank policy with regard to methodology of calculation of DP under different schemes.

15) Keep ready latest audited balance sheets obtained from borrowers.

16) Provide bank policy with regard to getting stock audit done.

17) Keep ready copies of all stock audit reports as required by bank policy along with documents relating to action taken by branch

18) Provide the limit fixed by bank for requirement of obtaining the duly audit accounts of non corporate borrower.

19) Keep ready all due diligence reports in the form and manner required by the Reserve Bank of India in respect of advances under consortium and multiple banking arrangements. Provide the list of cases where same is not obtained.

20) Keep ready latest valuation reports of securities along with earlier valuation reports in cases wherein there is substantial deterioration in value of securities.

21) Keep ready bank policy with regard to Red Flag Accounts.

22) Provide list of all the accounts declared as Red Flag by bank.

23) As per RBI guidelines Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances - Clarifications dated RBI/2021-2022/125 DOR.STR.REC.68/21.04.048/2021-22 November 12, 2021:-

“Borrower accounts shall be flagged as overdue by the lending institutions as part of their day-end processes for the due date, irrespective of the time of running such processes. Similarly, classification of borrower accounts as SMA as well as NPA shall be done as part of day-end process for the relevant date and the SMA or NPA classification date shall be the calendar date for which the day end process is run. In other words, the date of SMA/NPA shall reflect the asset classification status of an account at the day-end of that calendar date. “

Hence keep ready all the soft copies of day end processing reports generated by system for all the loans (including cash credit and overdraft) for verification since November 12, 2021

24) As per RBI circular dated Sept 14, 2020 on Automation of Income Recognition, Asset Classification and Provisioning processes in banks, branch has to maintain logs for all exceptions i.e. manual interventions / over-rides including, but not limited to, the date and time stamp; purpose/reason; user-IDs, name and designation of those making such manual intervention and necessary account details. Provide all such logs for manual intervention while preparing the statements as on 31.3.2022

25) Provide list of all accounts restructured during the year under audit as per RBI/2015-16/101 DBR.No.BP.BC.2/21.04.048/2015-16 July 1, 2015 and RBI/2021-2022/104 DOR.No.STR.REC.55 /21.04.048/2021-22 October 1, 2021 Keep ready all documents and files.

26) Keep ready information with regard to total exposure with other lenders with respect to MSME borrowers restructured accounts which have been upgraded as per clause 17.2.1 of RBI/2021-2022/104 DOR.No.STR.REC.55 /21.04.048/2021-22 October 1, 2021.

27) Keep ready following information with regard to other borrowers restructured accounts (Not included in clause 17.2.1 of rbi circular) which have been upgraded as per clause 17.2.2 of RBI/2021-2022/104 DOR.No.STR.REC.55 /21.04.048/2021-22 October 1, 2021,

a) Total exposure of borrower including with other lenders
b) Confirmation from other lenders for any default with them if any as mentioned in clause 17.2.2.5 of above circular.

28) Provide list of all accounts where in projects are under implementation along with details of restructuring done if any. Keep ready all documents and files.

29) Provide the list of all accounts (preferably from CBS), where in concessions have been granted during the year under audit along with reason for the same.

30) Provide list of MSME cases restructured as prescribed in RBI circular no DOR.STR.REC.12/21.04.048/2021-22 dated May 5, 2021 on “Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)” read with DOR.STR.REC.21/21.04.048/2021-22 dated June 4, 2021 on “Resolution Framework - 2.0: Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs) – Revision in the threshold for aggregate exposure” . Keep ready all documents also.

31) Provide list of other accounts restructured due to Covid-19 (other than MSME) as prescribed in RBI circular no DOR.STR.REC.11/21.04.048/2021-22 dated May 5, 2021 on “Resolution Framework – 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses” read with DOR.STR.REC.20/21.04.048/2021-22 dated June 4, 2021 on “Resolution Framework - 2.0: Resolution of Covid-19 related stress of Individuals and Small Businesses – Revision in the threshold for aggregate exposure” . Keep ready all documents also.

32) Provide the list of all cases, wherein Process under IBC has been mandated by bank but same is not initiated by the bank.

33) Provide the list of all cases wherein IBC process has been initiated by creditors other than bank.

34) Keep ready all the communications /documents ready for ECGC claims filed along the rejections if any

35) Provide Age-wise analysis of suit filed cases, where decrees obtained and pending ex*****on.

36) Provide list of borrowers with details of LCs devolved or guarantees invoked during the year in the format as given in LFAR format.

37) Provide list of borrowers where the LCs have been devolved or guarantees have been invoked but not paid with amount thereof.

38) Provide List of all cases wherein rehabilitation/rephasement /one time settlement/compromise and write off has been done during the year under audit along with documents.

39) Provide List of instances where inter changeability between fund based and non-fund-based facilities was allowed subsequent to devolvement of LC / invocation of BG.

40) Provide Audit Trail from CBS relating to inoperative accounts activated during the year under audit.

41) Provide Audit Trail from CBS of all FCNR(B) deposits automatic renewed during the year. Further keep ready the evidence obtained from depositor for having satisfied that depositor is non resident.

42) Provide the list of saving accounts where in minimum balance has not been maintained by the depositor at year end. Keep ready the record of communication with depositor.

43) Keep ready the documents/files relating to legal cases filed against the bank by others.

44) Whether there are any software / systems (manual or otherwise) used at the branch which are not integrated with the CBS? If yes, give details thereof.

45) Provide the list of exception reports which are being generated by branch as per bank policy daily/periodically.

46) Provide list of all outstanding issues pending for compliance observed by branch officials during verification of exception reports by branch officials at year end.

47) Provide list of all outstanding issues pending for compliance observed by branch officials during verification of daily reports generated as required by Mitra Committee Recommendations.

48) Provide list of various audit trails being generated by bank for manual intervention in the system. Further provide all these audit trails for the year under audit.

49) Provide list of all Frauds detected/classified along with confirmation of reporting to RBI by:
a) Branch
b) Respective CPC/RPC or any other centralised office relating to loan accounts of branch

50) Provide list of any suspected or likely fraud cases are reported to higher office by following during the year along with details thereof related to status of investigation
a) Branch
b) Respective CPC/RPC or any other centralised office relating to loan accounts of branch
51) Provide the list of high value transactions Cash/NEFT/RTGS/Transfer/Clearing during the year generated from CBS.
52) Keep ready CTR and STR reports for the Financial Year 2021-22

53) Keep ready following reports :
a) Concurrent Audit report for the year under audit along with compliance certificates
b) Internal audit/snap audit report along with compliance certificate
d) Previous year statutory audit report along with MOC
e) Last RBI audit report
f) Special audit report
g) Credit audit report
h) Revenue audit report
i) IS/IT/Computer audit report
j) Periodic returns submitted by branch
50) Concurrent audit reports relating to loans appearing in branch balance sheet- To be arranged from respective centralised office—If being done at RPC/CPC or any other centralised office.
51) Annual Internal Inspection report relating to loans appearing in branch balance sheet- To be arranged from respective centralised office- If being done at RPC/CPC or any other centralised office

Complied by: CA Ajay Kumar Jain

17.2.2.5

Rectified GST UPDATE

Government Provides Facility To Restore Cancelled GST Registration

Breaking: Government Provides Facility To Restore Cancelled GST Registration OFFICE OF THE PRINCIPAL ADDITIONAL DIRECTOR GENERAL OF SYSTEMS & DATA MANAGEMENT GST & CENTRAL EXCISE, GST BHAVAN, No. 26/1 MAHATHMA GANDHI ROAD, NUNGAMBAKKAM, CHENNAI -34 Tel. Ph: 044-28331101 Fax:044-28331104 e-mail: [email protected] Date: 23.03.2022 Registration Advisory No. 07/2022 Sub:...

Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Happy Holi 🎉

Extension under Income Tax Act.
No extension so for issuing notice under section 148.
No extension so for issuing 143(2) notice for assessment year 2020-21 ( Returns filed by 31st March,2021 )
1. The application under Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No. 10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisional approval of Trusts/ Institutions/ Research Associations etc., required to be made on or before 30th June, 2021, may be made on or before 31st August, 2021.

2. Last date of payment of amount under Vivad se Vishwas(without additional amount) which was earlier extended to 30th June, 2021 is further extended to 31st August, 2021.

3. Last date of payment of amount under Vivad se Vishwas (with additional amount) has been notified as 31st October, 2021.

4. Time Limit for passing assessment order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.

5. Time Limit for passing penalty order which was earlier extended to 30th June, 2021 is further extended to 30th September, 2021.

Regards

CBDT issues functionality to verify whether the Vendors have filed tax return for compliance of Section 206AB and Section 206CCA. As per circular no 11 issued today , the deductor can verify from income tax portal about its vendor’s status of filing tax return in preceding 2 years. Further it has been clarified that preceding 2 previous years for FY 2021-22 shall mean FY 2018-19 and FY 2019-20. The name of specified persons who have not filed tax returns uploaded at the beginning of the year by CBDT will be valid for the entire FY as no further addition will be made to this list . However deletion will be done by CBDT in case any specified person in the list files its tax return . This will now make compliance of Section 206AB and 206CCA much easier as it will be one time exercise of verification in the beginning of the year of all vendors. No need now to obtain any declaration from resident Vendors . It is to be noted that this new requirement of Section 206AB and 206CCA are not applicable to non residents except when a non resident has a PE ( Permanent Establishment ) in India. Thus in the case of non residents, a declaration that it doesn’t has a PE will still be required in case it hasn’t filed its tax return.