(Updating of knowledge)
Shrikrishna (S) — Yes Arjun, how was the budget?
Arjun (A) —You mean Union Budget of 2016-17? It was very nice!
S — What was nice about it?
A — FM has touched upon many pain-points of tax payers. Has tried to rationalise many provisions.
S — Oh! You CAs believe that Budget means Finance Bill. That too, only Direct tax. One needs to see the broader picture; the economic part as well.
A — I agree. But those astronomical figures of a few lakh crores; and high-dream schemes really don’t make any meaning. Statistics is always deceptive.
S — Still, you should try to understand those things.
A — What you say is right. But who has the time to go through it? You know how hectic March is for us.
S — But you have no choice. Clients will expect a communication from you about the salient features.
A — So many people and firms bring out the booklets. Our BCAS budget booklet is excellent. S — T hat’s true. But have you bothered to buy them and distribute among your clients? You should educate your clients.
A — We are running around for completion of scrutiny assessments; service tax calculations, and what not!
S — And what about bank audits that will come in April?
A — That reminds me. I need to attend branch audit seminars. I have also to complete my CPE hours! A headache!
S — But why did you not complete it before? Why wait till the last date; and do it only in extended time?
A — That is in our blood now! We CAs don’t like to do things in time.
S — So that at the last moment, you can act to be too busy!
A — But these compliances keep us busy round the year. There is no respite to think of anything creative.
S — There is one more important thing that you CAs have not taken seriously! And that may invite trouble.
A — He Bhagwan! What do you mean? Any more burden?
S — Yes. Income Computation Disclosure Standards. ICDS.
A — I have heard about it. What exactly is it?
S — You are mainly practising income tax. Then you should know it. There are 10 ICDS and the Income for financial year 2015-16 was supposed to be computed by applying ICDS.
A — Oh, My God! Really, is it applicable? So our advance tax estimates also were to be done by ICDS?
S — Of course! Materiality, Revenue Recognition, Foreign Exchange, Inventory Valuation and so many of them. All affecting taxable income.
A — But have they not postponed it? Such a new thing made applicable all of a sudden!
S — They brought it last year only. But you always expect extension of every compliance.
A — Lord, we meet here to discuss our Code of Ethics. What has ICDS to do with the Code of Ethics?
S — You are mistaken, my dear! Technical competence is a fundamental part of ethics. You are a professional. If you are not up-to-date in knowledge, how will you render proper service?
A — That’s a point.
S — Technical lapses, lack of basic knowledge on the part of a CA, are considered to be misconduct.
A — Is it negligence?
S — Certainly.
A — But is there any effect on accounts?
S — No. On account of ICDS, you need not change the accounts. But tax provision will be affected.
A — Then our audit will also be affected. It is a part of statutory compliance.
S — And not doing it properly is a gross-negligence; or at least a lack of due diligence!
A — Clause (7) of part I of Second Schedule! Right? S — Very good! You remember so much!
A — So now, I need to update myself on Ind AS and ICDS! That means, my summer vacation is gone!
S — Don’t sacrifice your vacation. But always have knowledge update in your priority list. Be pro-active and avoid last moment tensions.
A — I agree. It affects our health; quality of work suffers; and in general, there is trouble.
S — Timely action will bring you peace in practice.
A — You are absolutely right, Lord, as always! Om shanti !!!!!
