The Regional Council of the Institute of Cost Accountants of India organized Professional Development Programme on “GST, Income declaration scheme – 2016”

The Regional Council of the Institute of Cost Accountants of India organized Professional Development Programme on “GST, Income declaration scheme – 2016”

The Regional Council of the Institute of Cost accountants of India organized the Professional Development Programme on GST, Income declaration Scheme 2016 and Oral coaching classes inaugurated by hon’ble Dr.Justice AR.Lakshman, Former Judge, Supreme Court of India & Former Chairman, Law Commission of India.

On this occasion CMA. V Murali, Chairman, Southern India Regional Council of The Institute of Cost Accountants of India said, the Central Government under the dynamic leadership of Our Honorable Prime Minister Shri Narendra Modiji has successfully piloted the GST bill in both the Houses of Parliament. This is one of the most important indirect Tax reforms which have a great impact on various sectors of our economy. The Southern India Regional Council of the Institute of Cost Accountants of India organized the massive program on the newly enacted GST Act to impress upon the cost accountants, members from industry and CEOs, CFOs regarding the benefits derived from the ONE NATION-ONE TAX- ONE MARKET Scenario. Our Honorable Finance Minister Shri Arun Jaitleyji should be complimented for tactfully handled the entire issue in the parliament by passing the Bill Unanimously. Mr. Murali further added that this GST Regime will pave way for the ease of doing business and will considerably reduce the compliance cost incurred by the Trade, commerce and industry and it is one more feather in the cap of the present Union Government.

Dr.Justice AR.Lakshman, Former Judge, Supreme Court of India said,  At the outset let me thank CMA V.Murali, Chairman, SIRC, Shri P S Vasudevan, Shri K Vaitheeswaran and CMA N S Srinivasan, Central and Regional Council Members, Cost Accountants, Members from Industry for inviting me to inaugurate the first Professional Development Programme.

It is said – Behind every successful business decision there is always a Cost Accountant. You are an integral part of trade, commerce, industry and business. In fact, cost accountants are playing an indispensable role in the growth of our Indian Economy.

Set up by an Act of Parliament in 1959, this Institute is playing a sheet anchor role in the growth of industry. The Institute is the 2nd largest cost and management accounting body in the world and has more than 5 Lakhs students and 60000 members who are occupying pivotal positions in India and around the world. For professionals knowledge is power. A thorough knowledge of the law is imperative to professionals who have to guide the industry, their employers and their clients.

Further he added, The Goods and Services Tax Act has just recently been passed by Lok Sabha and is an important legislation that will have an impact on industry, trade, commerce, professionals and people at large.  The new GST Act is an important reform in the history of Indirect Taxes. The proposed GST regime scores over the existing multiple taxes regime on various points some of which I am touching here.

1)One Nation, One Market, One Tax, 2)Uniform Tax Rate, 3)Single Point Taxation, 4)Easy  Input  Credit, 5)System Driven, 6)Revenue Leakage & Seepage Prevented, 7)Prevents Corruption being System Driven, 8)Documentation Made Easier, 9)Same Rate Applicable both for Service Tax, Excise Duty & VAT, 10)Cascading Effect avoided as there is no Multiplicity of Tax, 11)Wrong Declaration of place of Manufacture, Bill Trading &    Maneuverability Prevented, 12)Litigation Will be Considerably Reduced, 13)Nexus of  Middlemen will be Broken, 14)Transparent  Accounts,  Systematic Disclosure norms and Easy Tax Credits made Possible, 15)Online  System will track Transaction at every Stage making it  possible to detect  evasion, 16) More Accountable Tax regime will be made Possible Due to the Introduction of GST, 17)Ease of doing business is facilitated by GST regime.

There is one Challenge which acted as an impediment in the Implementation of GST.  Being consumption based taxation this may be disadvantageous to the manufacturing states like Gujarat, Tamil Nadu, Maharashtra, etc and this is sought to be overcome by adequately compensating the manufacturing states which the Union Government has assured. Although there will be Revenue Loss for Manufacturing States this will be adequately compensated by fixing slightly higher rate but Inflationary Pressure should also be kept in mind whilst fixing the GST rate.

The Income Declaration Scheme – 2016 is a scheme which proposes to give a chance to those who have so far not disclosed their unaccounted income, wealth etc to come clean. For the growth of our economy and country it is essential for all citizens to pay their taxes and thereby they can enjoy peace of mind. Evasion of tax is not only an offence; it also is an impediment to the growth of our economy.

The Union government is moving towards transparency, uniform law and digitalization.  I hope that the speakers will demystify the GST and the IDS and this will throw light and enable the professionals to emerge clear on current issues of professional relevance.

I appreciate the Southern India Regional Council of the Institute of Cost Accountants of India and its dynamic Chairman Murali for organizing this GST programme within a record time.