Foreign Investment in India-Reporting in Single Master Form (SMF) 

As announced in the First Bi-monthly Monetary Policy Review dated 5th April, 2018, Reserve Bank of India (RBI) would introduce a Single Master Form (SMF) for reporting of Foreign Direct Investment (FDI) received as per Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations 2017, dated November 7, 2017and also for investment by persons resident outside India in an Investment Vehicle. 

In this regard, prior to the implementation of the SMF, entities who are in receipt of/ Outstanding FDI need to upload the prescribed details, on or before 20/07/2018, in the “Entity Master” on Foreign Investment Reporting and Management System (FIRMS) Portal, https://firms.rbi.org.in. All the entities registered up to 20/07/2018 on FIRMS Portal can add/edit details in Entity Master till 15th August 2018. 

Read more: FEMA updates for the month of Aug 2018

In this Article, an attempt has been made to draw the concept of

• Input service distributor (ISD);
• Cross Charge and
• An explanation of ‘what is the best method to adopt in various situations’.

Introduction:

Goods and Services Tax is a levy on a supply of goods or services. For the purpose of applicability of GST, the transactions are divided into two;

• Intrastate transactions: Intrastate transactions are those where the location of supplier and place of supply are in the same state and there will be a levy of Central Goods and Services Tax (CGST) and the State goods and services Tax Act (SGST) of the state in which the supplier is located.
• Interstate transactions: Interstate transactions are those where the location of supplier and place of supply are in different states or transactions of cross-border (supplier is located in India and recipient located outside India or vice versa). In case of inter-state transactions, Integrated Goods
  and Services Tax (IGST) will be levied and place of Supply shall be determined in accordance with sections 10, 11, 12 and 13 of the Integrated Goods and Services Tax Act, 2017.

  Read more: ISD VS Cross Charge

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A. Scope:

• This Standard on Auditing (SA) deals with the auditor’s responsibilities relating to fraud in an audit of financial statements.
• Specifically, it expands on how SA 315, “Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment,” and SA 330, “The Auditor’s Responses to Assessed Risks,” are to be applied in relation to risks of material misstatement due to fraud.

B. Effective Date:

• This SA is effective for audits of financial statements for periods commencing on or after 1st April 2009.

  Read more: SA 240 The auditors responsibility relating to fraud in an audit of financial statements

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Key Topics:

Audit

• SA 240 The auditors responsibility relating to fraud in an audit of financial statements

Indirect Taxes

• ISD VS Cross Charge

FEMA

• FEMA updates for the month of Aug 2018