MM TAX CLUB

As a step towards enhancing the transparency about management and governance of audit firms and their internal policy framework to ensure high quality audits and preventing conflict of interest by maintaining independence, the National Financial Reporting Authority (NFRA) has published draft requirements regarding preparation and publication of Annual Transparency Report (ATR) by auditors/audit firms.

 These ATR requirements are on the lines of the contemporary international best practices implemented by certain prominent Independent Audit Regulators in other jurisdictions. Rule 8(2) of the NFRA Rules 2018 empowers the NFRA to require an auditor to report on its governance practices and internal processes designed to promote audit quality, protect its reputation and reduce risks including risk of failure of the auditor and may take such action on the report as may be necessary.

Indian companies have become significant constituents of the global economy and India has evolved as a global centre of excellence in the delivery of financial reporting and audit services to a large number of multi-national corporations raising expectations for sound and high quality codes and practices comparable to global benchmarks. In accordance with Rule 8(2) of the NFRA Rule 2018, NFRA intends prescribing publication of Annual Transparency Report containing certain critical information about the auditor’s operational activities, management, governance and ownership structures, and policies and procedures necessary to deliver high-quality audits etc.

The information contained in the ATR will be useful to the Investors, Audit Committees, Independent Directors and public at large.

The ATR requirements are proposed to be implemented in a gradual manner for PIEs starting with Statutory Auditors of Top 1000 Listed Companies (by market capitalisation) with effect from the financial year ending on 31 March 2023. The ATR has to be published within three months from the end of each financial year.

NFRA has also decided to seek public comments/suggestions on the contents of the ATR by 16 February 2023.

According to Hon’ble Supreme Court’s directive filing of TRAN forms was made available for aggrieved taxpayers during 01.10.2022 to 30.11.2022. It has been observed that, in the process of filing TRAN forms, few taxpayers have submitted their forms on the portal but did not finally File it within the specified time. After submitting the Tran Forms, only filing was to be done with e-sign. Further, it is seen that such taxpayers have not raised any ticket for difficulty faced by them in filing Tran Forms. Some taxpayers were also contacted by GSTN and they informed that they do not intend to file TRAN forms. As the TRAN forms of these taxpayers are submitted but not filed, these taxpayers are not able to file their GSTR-3B.

The TRAN filing window has already been closed. Hence, such taxpayers are advised to raise a ticket on GST Grievance Portal giving consent that their TRAN filing status may be reset by GSTN. Once the consent for resetting their unfiled TRAN forms is received, the TRAN forms will be reset and the taxpayer will be able to file their GSTR-3B.

The Central Bureau of Investigation has arrested seven accused including an Additional Divisional Railway Manager ( IRSE-1997), Guwahati, Contractor, Hawala Operator, Bribe-giver etc in a bribery of Rs.50 Lakh.

          A case was registered against an Additional Divisional Railway Manager (ADRM), Guwahati and other private persons including Contractors etc. It was alleged that the accused had entered into a conspiracy with the intention of showing undue favours to the private contractors for awarding of contract agreements, preparation of measurement book, processing of running account bills, early release of payment against pending bills & for the ongoing work of construction in North East Frontier Railway as well as for early release of security deposit & bank guarantees. It was further alleged that the ADRM, Guwahati was habitual of demanding & accepting undue advantage from  various Contractors while being posted as Chief Engineer, Construction, New Jalpaiguri, NFR. It was also alleged that a Contractor was facilitating the delivery of the bribe to ADRM, Guwahati through his acquaintance from a Hawala Operator in Delhi.

          CBI laid a trap and caught an acquaintance of ADRM, Guwahati while accepting bribe of Rs. 50 Lakh on behalf the said ADRM delivered through Hawala Channel. The ADRM and said private persons were also caught.

          Searches were conducted at the premises of ADRM & others in various locations including at Delhi, Narora, Guwahati, Siliguri & Aligarh which led to recovery of Rs.47 Lakh( approx) cash, Laptops and several incriminating documents.

          All the arrested accused will be produced today before the Competent Court.

The documents are classified according to the Kind of Food Business. The list is available on the Homepage of FSSAI's Food Safety Compliance System (FoSCoS) under ‘Documents Required’.