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Announcement on Applicability of the Provisions of Section 143(12) of the Companies Act 2013 and the Related Rules to Periods beginning on or before 31st March 2014

ANNOUNCEMENT1 APPLICABILITY OF THE PROVISIONS OF SECTION 143(12) OF THE COMPANIES ACT 2013 AND THE RELATED RULES TO PERIODS BEGINNING ON OR BEFORE 31ST MARCH 2014

Section 143(12) of the Companies Act 2013 requires the auditors of the companies to report to the Central Government on the frauds committed or being committed against the company. The Council of the Institute of Chartered Accountants of India, at its adjourned 333rd meeting held on 18th June 2014, considered the issue of applicability of the provisions of sections 143(3)(12) of the Companies Act 2013 and the related Rules to the audits of the periods beginning on or before 31st March 2014. The Council noted that the sections 143(12) had come into force in respect of financial years beginning on or after 1st April 2014. The Council was of the view that the provisions of sections 143(12) of the Companies Act 2013 applied to the auditors appointed under the Companies Act 2013 to audit the financial statements for the year beginning on or after 1st April 2014. As a corollary, the requirements of these sections and related Rules would not apply to audits of financial statements of the periods beginning on or before 31st March 2014, even if the audits therefor were actually carried out and auditor's report thereon issued on or after 1st April 2014.

_________________________ 1    This Announcement has been issued by the President, ICAI under the authority of the Council of the Institute of Chartered Accountants of India. Source : http://www.icai.org/new_post.html?post_id=10739&c_id=219

Tax Audit Limit Increased From 45 to 60 for audits conducted during the financial year 2014-15 and onwards. - (11-02-2014)

In view of the enhancement of professional competence of members to perform quality services in an IT-enabled environment, the Council of the Institute at its 331st meeting held from 10th to 12th February, 2014 has decided to increase the "specified number of tax audit assignments" for practicing Chartered Accountants, as an individual or as a partner in a firm , from 45 to 60. The said limit will be effective for the audits conducted during the financial year 2014-15 and onwards. Accordingly, the Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008 stands amended from 1.4.2014 as under:-

In the Council General Guidelines, 2008, the Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008, in Chapter VI "Tax Audit assignments under Section 44AB of the Income-tax Act, 1961 ", in Explanation given in Para 6.1, in sub-para(a) and sub-para(b), the figure "45" be substituted with the figure "60".

Source : http://www.icai.org/post.html?post_id=10354

Cost Inflation Index 2014-15 is 1024

FY	Index	% inflation increase
2014-15	1024	9.05%
2013-14	939	10.21%
2012-13	852	8.54%
2011-12	785	10.41%
2010-11	711	12.50%
2009-10	632	8.59%
2008-09	582	5.63%
2007-08	551	6.17%
2006-07	519	4.43%
2005-06	497	3.54%
2004-05	480	3.67%
2003-04	463	3.58%
2002-03	447	4.93%
2001-02	426	4.93%
2000-01	406	4.37%
1999-00	389	10.83%
1998-99	351	6.04%
1997-98	331	8.52%
1996-97	305	8.54%
1995-96	281	8.49%
1994-95	259	6.15%
1993-94	244	9.42%
1992-93	223	12.06%
1991-92	199	9.34%
1990-91	182	5.81%
1989-90	172	6.83%
1988-89	161	7.33%
1987-88	150	7.14%
1986-87	140	5.26%
1985-86	133	6.40%
1984-85	125	7.76%
1983-84	116	6.42%
1982-83	109	9.00%
1981-82	100