Introduction

The auditor is responsible to obtain reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether due to fraud or error. However, due to inherent limitations of an audit, there will be an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the standards. 

The potential effects of inherent limitations are particularly significant in the case of misstatements resulting from fraud. The risk of not detecting a material misstatement resulting from fraud is higher than risk of not detecting one resulting from error, because fraud may involve sophisticated and carefully organized schemes designed to conceal it, such as forgery, deliberate failure to record transactions or intentional misrepresentations made to auditor. 

SA 240 along with SA 315 are designed to assist the auditor in identifying and assessing the risks of material misstatement due to fraud and in designing procedures to detect such misstatement. 

Read more: SA 240 - The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements

Brief Introduction

GST, Entire India is eagerly waiting for its implementation. In Indirect Taxes, rolling out of GST is a major reform. Globally, most of the countries are under GST regime and now India is also going to step in to GST Net. The idea of national GST was first put forward by Kelkar Committee in 2004. Sri Chidambaram was announced the introduction of GST in his budget speech in 2006, however due to political issues, the dream to roll out GST got delayed for a decade. 

Through implementation of GST, Consumers shall be benefitted through the reduction of cascading effect and tax burden. Further, for the administrators, it would be easier to collect the taxes and also our Indian products would become competitive in the global markets resulting in strengthening the economy.

Read more: An Overview on GST

Introduction 

In India, Excise Duty/Service Tax on export of goods/services is exempted; A simple question arises in mind that 

“If export of services are exempted then what is the use of Cenvat credit lying in the books of Accounts?” 

Rule 5 of Cenvat credit rules, 2004 (CCR Rules, 2004)provides an opportunity to the service provider/manufacturer to utilize the accumulated CENVAT credit relating to export of goods or services for the payment of service tax on domestic output services and excise duty on final products cleared within India and in case any credit is left after making the stated adjustments the service provider/manufacturer can opt for refund of CENVAT credit. 

Read more: Refund Claim of Cenvat Credit in Relation to Input Services on Exports - Documentation and Other...

Key Topics Covered:

• Income Tax
• FEMA

Updates

• Income Tax
• Companies Act, 2013
• Indirect Tax

This article is contributed by Partners of SBS and Company LLP - Chartered Accountant Company. You can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.