A campaign to oppose proposal of extension of Tax Audit date to 31st October (it should be 30th November)
The Hon’ble Finance Minister
1.It has been heard that many organisation has given representation to extend date of Tax Audit report under Income Tax Act till 31st October (including ICAI)
2.But we request you to consider following points and extend it till 30th November otherwise it will be a half hearted fruitless extension.
a. Recently the Government has extended the date of GSTR 1 till 31st October for the period since 1st July 2017 to 30th September 2018 . As lakhs of dealer has to do a lot of accounting exercise to submit these pending returns properly.
b. Even those GST registered assessee who has filed their returns timely are facing serious problems due to non filling of GSTR1 by their suppliers. They are not able to make any provision for refund in financial statements as without reflection in GSTR 2A the authorities are not sanctioning refunds.
c. If after 31st October even suppliers do not file GSTR1 then the Income tax assessee will take final decision and has to create liability for such Input tax credit availed by him.
d.The October is full of festivals. In Gujarat there is holidays of school of Appox. 9 days during Navratra celebrations. So normal working is very disturbed .In Bengal due to Durga pooja festival almost 10 days are non working.
e. Last date of TDS return filling for 2nd quarter is also 31st October.
f. As SME and small units are not having full time chartered Accountants . They are totally dependent on practicing professionals. So how a small entrepreneur will meet so many deadlines in October.
g. This is the first Balance sheet after GST. Government is daily issuing circular/ notifications. It will take time to understand this new law. Further web site of GST also don’t work properly.
h. For ease of doing business it is necessary that tax compliance is easy for small entrepreneur.
i. Due to last date of Individual returns extended to 31st August, no work could be done by any assessee or professional towards Audits. So it is not possible to complete the Audits before 30th November.
j. Despite the instructions of the Delhi High court , Tax audit formats were made available quite late and till today there are continuous changes in Schema at website.
k.To protect the Revenue, the Government may levy the interest after 30th September. But imposing penalty and to force tax paying citizens to comply all deadlines in single month of October will be high injustice .
So we request you to extend it till 30th November.
(Submitted by Rajesh Bhauwala – [email protected])