JOINT SEMINAR ON RECENT ADVANCES IN ACCOUNTING, COMMERCE AND TAXATION

Tremendous developments are taking place in the field of accounting, commerce and taxation as the world becomes one single business place crossing the physical boundaries of the countries. Accounting standards of countries are being replaced by international accounting standards to bring resemblance in accounting information worldwide. Changes in competition and technology, and the economic deregulation of industry in many countries, have placed significant strains on organizations which have asked for developments in the accounting, finance and taxation.

In this era of globalization, liberalization and privatization it is becoming necessary to get on with the changing scenario of the standards related with accounting, taxation and commerce. India being the developing economy is going through a very dynamic economic environment. To be in the competitive race with the leading economies of the world, Indian economy has to adjust with the changing rules and regulation for carrying out the business operations and the way the transaction takes place. The fact that India has a very complex and high tax jurisdiction is influencing pace of investments being slow. Various regulatory bodies and the Indian Government are updating the rules and regulations for keeping pace and attracting more investment in India. To find out diverted profits, concealed income of many companies and filling up the gaps in the taxation system and the regulation, the previous Acts have been amended and new Acts have been introduced.

Indian Accounting Standards are on way to endorsing IFRS (International Financial Reporting Standards). There are lot many chances taking place in the IAS to be compatible with IFRS. There are amendments in IAS which is making it easier for the companies to make their financial reports. For example, Amendment to IFRS 3 regarding Business Combination resulted in consequential amendment to IAS 39 and IAS 37 regarding Financial Instruments, Recognition, and Measurements and Provisions, Contingent Liabilities and Contingent Assets respectively. Any amendment made in IFRS makes a resultant amendment in the IAS to match it with the ongoing rules of Accounting which are generally accepted. For example, amendments to IFRS 10, IFRS 12 and IAS 27 make changes in the Investment Entities.

In recent years, Ministry of Corporate Affairs has revised many rules. The rules regarding the creation of DRR have changed reducing the percentage of DRR from 50% to 25% and exempting financial companies for privately placed debentures. Previously, as for payment of dividend lower of depreciation or carried over previous losses can be adjusted but the new rules says that now the companies can adjust both, depreciation and carried over previous losses. Schedule VII of the Companies Act, 2013 states a new rule regarding the CSR activities. It says that one off event should not be considered as CSR activity and the expenditure should not exceed 5% of the total CSR expenditure of the company on building CSR capacities.

Similarly, there are many developments in areas related to income tax. The revenue authorities of India are keeping a high vigilance on the cross border transaction. They are taking extra care to check revenues which actually belong to Indian Government. British company Vodafone has been charged with such a case where the authorities are trying to tax the profits of the company which are generated outside India on the basis that the underlying asset is the controlling interest in the Indian company. Recently, the Indian tax authorities are also trying to tax the participatory notes also known as P-Notes through which the foreign investors, who are not registered with the FIIs, participate.

Other institutions like RBI, SEBI, and ICAI etc. have also issued new guidelines to change business environment. It is becoming more and more important to set new rules, issue new guidelines, make pragmatic policies, amend the rules and go with the global standards. If we are to compete with the global companies and the world economies this is a high time to develop our economic system with dynamic set of laws. It is very much necessary that our taxation system, accounting standards and other regulatory bodies keep on amending their laws for the benefits of the companies and the economy at large.

With the simplification of the tax environment and regulatory environment in India, it will be easier for the investors to invest in India. The economy of India gives a massive opportunity for gains and capital appreciation to the investors. In order to make huge and speedy development in this area it is very much obligatory to understand the potential of the markets and the economy of the country. A careful planning is required to channelize the true ability of the opportunity in the country. Changes and developments only will lead us to the path of becoming the top economy of the world.

Keeping in view all various changes that are taking place in business world, Amity College of Commerce and Finance in collaboration with Institute of Chartered Accountant of India is planning to organize a two days joint seminar on “Recent Advances In Accounting, Commerce And Taxation” on September 16 & 17, 2015.