The month of June has been one of the busiest at BCAS. We had four Lecture meetings this month on ITR Filing, Audit Finalisation, Insolvency and Bankruptcy Code and Model GST Law. The third lecture meeting was webcast live, from the BCAS Hall. Even the weekends were packed with incredible seminars on Practice Management and Fraud Reporting and Data Mining. The 10th Residential Study Course on Service tax and VAT at Lavasa was the largest.
TARANG 2k16, the annual student event was also the largest ever till date. For the first time, we did a live webcast of one of the Lecture Meetings out of BCAS hall.
Brexit showed how divided our societies are. A chalk board at a café said it all – 48% Sense and Sensibility and 52% Pride and Prejudice. The iconic Thomas Friedman wrote “The British vote by a narrow majority to leave the European Union is not the end of the world — but it does show us how we can get there.” It shows how a few politicians can create a “binary choice on an incredibly complex issue”. Brexit shows that anxiousness has prevailed over reason. Friedman goes on to say that countries with pluralism will thrive as they will have offer stability, talent retention and collaborative environment to live in. If we couple this with what Trumps talks, we can appreciate the value of pluralism in India offers. In contrast to all this, the recent interview of the PM has been a heartening, especially when it is from a political leader of 1.25 billion people.
Model GST Law
While the ‘model’ GST Law is out this month, reading the GST law gives a feeling similar to arrival of the incoming flight after a six hour wait at the airport. Just as the pent up anguish and expectancy is settling down, one hears a second announcement. The apologetic voice says that they have found a serious technical snag and are not sure if the flight will even depart. Bummer! After 15 years of wait, the model GST law gives you that kind of a feeling – is this model law good enough to take off?
GST is the largest tax reform ever, because it is really an economic integration in a federal democracy like ours. While the state laws taxing goods don’t talk to the central laws on production and services, we can now expect that the UNION will work like one – a union in both letter and spirit. Although it is an achievement to arrive at a consensus, the ‘model’ is nowhere close to being model in every sense of the word. A lot of definitions are picked up from VAT regime and critical definitions lack clarity and completeness. Compliance heavy mechanism of matching invoices will make small traders want to find a ‘way out’ than ‘stay in’. The heart of GST, seamless credit mechanism, is murdered by the condition of actual payment of tax by the seller. Even if a buyer has paid the tax, credit can be denied in case the seller hasn’t deposited that collection.
Going back to the airplane analogy the GST law seems more like a highjack story written by the VAT authorities. In both design and structure, the model law does give a sense of disbelief. Before becoming a Goods and Services Tax, GST needs to meet the test of GOOD and SENSIBLE TA X. A law to be good and sensible at inception is CRITICAL for its success. Success of GST will now depend on the government’s ability to absorb stakeholder comments in the final legislation and the States adopting and enacting the law in its fullest form. I believe, that will truly give us a UNIFIED MARKET and a sense of efficient federal democracy.
Meeting Expectations
Stephan Hawkings wrote, “Intelligence is the ability to adapt to change”. 2.5 Lac CAs are faced with an incredible opportunity and phenomenal challenge like never before. The greatest risk in a world changing at the speed of light is VANISHING MARKETS. Due to changes in technology some markets that we are used to, could cease to exist. For example, considering BIG DATA , a lot of Audit will happen by matching data from various sources. As CAs we will need to watch this closely and carefully and to keep learning new skills and sharpening those that are still relevant. This could be the singular capability we all will need. I leave you with the words I love – If you have learned how to learn then you have learnt enough.
The times ahead will be fascinating. I am sure, as a profession, we will meet the expectations of all our stakeholders and be of service – not lip service, but of service to humanity at large. I hope that as accountants we will remain accountable and remain ‘awake’ in the true sense of the motto our Institute. And therefore, like the BCAS motto says we won’t be bogged down by fear. I wish, hope and pray that the profession holds its pure essence of serving the client above every other consideration and never convert to ‘business of profession’. We will continue to dig, question, counter distortion and take a stand on behalf of what we believe is true and will not need to sacrifice our objectivity. BCAS is a living testament to that and I am sure will remain so.
It is 30th of June as I write From the President for the 12th and the last time! What a delight it has been to talk to you all through this page and receive your responses. For every President, his year at BCAS is tight, pressing, exciting, challenging, exhilarating and satisfying. It was an opportunity to stretch my boundaries, to learn, share and grow. On the technical front, the profession is passing through a stimulating and gainful time – Ind ASs, GST, Companies Act, 2013 with numerous new opportunities before us. To be sharing this time with all of you and lead its leading light – the Bombay Chartered Accountants’ Society – is a special honour and privilege! The highlights of the year are enumerated in the 67th Annual Report uploaded on www.bcasonline.org. I hope you will take a look.
Like all the presidents before me, I will pass on the baton to the next president. Chetan and his able team of Narayan, Manish, Sunil and Suhas will commence their tenure from 7th July. They all have served the Society for years in various capacities and therefore well aware of its ethos. I am sure they will lead with purpose and passion. After a great ride, it is time to hang up the boots. I look forward to continue to serve the BCAS through the Journal and other committees in the years to come. I thank you for your support and trust in BCAS. Let me conclude with an Irish blessings for you – May your troubles be less and your blessings be more, and nothing but happiness come through your door.
