itatonline
Dec 23
On "Mutuality"
TG
June 30
Why Tax Practitioners Bill Required For India?
Amendment to Auditor's Report Format Under the Companies Act
It is high time that ICAI, the august body overseeing CAs, looks into this and similar other aspects of vital importance to housing societies, deliberates in-depth and comes out with suitable guidelines to auditing CAs. That should effectively assist them in doing a proper audit and reporting.
Dec 23
On "Mutuality"
Transfer
Fees recd by Co-op Hsg Soc from incoming & outgoing members (even in excess
of limits) is exempt on the ground of mutuality
TG
June 30
Why Tax Practitioners Bill Required For India?
Amendment to Auditor's Report Format Under the Companies Act
<> ” 4.Use of the Term “Profit and Loss Account” or “Statement of Profit
and Loss” in the Statutory Audit Reports of Companies.”
One, who may have no real intimate exposure or hand-on mindful field experience
in company audit, is quite likely to be left unsure, if not bewildered or
totally nonplussed on,-as to whether the cited amendment is simply a cosmetic
change in the wording, nothing more, or has a laudable objective or purpose
behind the move.
Be that as it could not have been expected otherwise, seizing at the
opportunity, another angle thrown up for anyone to offer own Reaction, though
not related to ‘companies’, but most certainly to auditing CAs engaged for
audit of “Housing Societies”:
The said housing societies, if residential, - unlike other types of co-operative
societies, - do not have or are permitted to have any commercial activity, with
the object of making a ‘profit’ in its profound sense. It is on this ground
that such housing societies claim and are being exempt from taxation, relying
on the known and established legal, and time honored, principle of
“mutuality”.
Nonetheless, one may have come across instances of audited final accounts of housing societies (of flats or apartments) in which are included/presented,obviously unconsciously unwittingly, an account styled as “profit and loss account”; besides/in addition to a statement of “Receipts and Payments” and/ or “Income and Expenditure”.
Nonetheless, one may have come across instances of audited final accounts of housing societies (of flats or apartments) in which are included/presented,obviously unconsciously unwittingly, an account styled as “profit and loss account”; besides/in addition to a statement of “Receipts and Payments” and/ or “Income and Expenditure”.
If were to go strictly by legal or accounting principles, any year-end surplus
in such accounts, in one’s firm view, do not have the characteristics of
‘income’, in any view ‘profit’; at best, to be appropriately called, – “excess
of receipts over payments (or outgoings)”.
It is high time that ICAI, the august body overseeing CAs, looks into this and similar other aspects of vital importance to housing societies, deliberates in-depth and comes out with suitable guidelines to auditing CAs. That should effectively assist them in doing a proper audit and reporting.
Subject/Open to well - considered views of experts in ICAI, also those active
in the field.
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Read more http://praja.in/en/blog/m...
on the special topic of, -
on the special topic of, -
Role Of Auditor of A Housing Complex
Lastly posted on June 26, 2014
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