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As per the law, an independent chartered accountant, or a chartered accountant firm, or limited liability partnership firm (LLP) with majority of partners practicing in India are qualified to conduct a stautory audit.

Cost Accounting Policy of a company state the policy used by the company to deal with individual cost components in the cost determination. The Cost Accounting system of a company, on the other hand, provides a flow of the cost accounting data across the activity flow culminating in arriving at the cost of final product or service.

Only a Cost Accountant, as defined under section 2(28) of the Companies Act, 2013, can be appointed as a cost auditor. Cost Auditor is a Person who holds a valid certificate of practice under sub-section (1) of section 6 of the Cost and Works Accountants Act, 1959 and is in full time practice. Cost Accountant includes a Firm of Cost Accountants and a LLP of cost accountants.

The cost auditor is to be appointed by the Board of Directors on the recommendation of the Audit Committee, where the company is required to have an Audit Committee. The cost auditor proposed to be appointed is required to give a letter of consent to the Board of Directors. The company shall inform the cost auditor concerned of his or its appointment as such and file a notice of appointment with the Central Government.

GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The major components of GST are,
CGST: It is the tax collected by the Central Government for within state sale
SGST: It is the tax collected by the State Government for within state sale
IGST: It is a tax collected by the Central Government for an inter state sale

Unique Document Identification Number (UDIN) is a 18 digit System generated unique number attested by Chartered Accountants to curtail the malpractices by Non-CAs  impersonating as CAs.

Non-resident Indians are taxed only on the income earned or received in India. Also, income earned outside India would not be taxed in India. Please contact us for more details.

Provisions of Section 35(5) read with Section 2(23) and section 2(35) other related provision, only chartered accountants and cost accountants can be appointed as GST Auditors. A company secretary cannot be appointed as GST auditor.

In terms of section 6 of The Chartered Accountants Act: No member of the Institute shall be entitled to practice whether in India or elsewhere unless he has obtained from the Council a certificate of practice. Only a chartered accountant holding certificate of practice can audit accounts.

Section 144 of the Companies Act restricts Auditor not to render certain services and this is a new provision in the Companies Act. One of the restricted services is Section 144(h) – Management Services. The Companies Act does not define what constitutes Management Services. But in common parlance it is understood that, what services the management has to do, are the management services.
As, audit under GST Act is an audit under a statute, the restriction imposed by section 144(h) for an Auditor, not to render certain services, shall not be applicable. Hence statutory auditors can be appointed as GST Auditors.

As per IGST Act Section 2(6) “Export of services” means the supply of any service when,
1. The supplier of service is located in India
2. The recipient of service is located outside India
3. The place of supply of service is outside India
4. The payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian rupees wherever permitted by RBI
5. The supplier of service and the recipient of service are not merely establishments of a distinct person. if place of supply is out of India

SEZ units can clear goods to DTA unit upon payment of applicable custom duties. GSTR-1 or GSTR-3B do not have any column to disclose such details. Due to this, many differences arise between GST returns and financial statements which resulted in many notices to SEZ units. Reference can be made to instruction no. 9 of Form GSTR-1 which states that supply by SEZ unit to DTA has to be treated as an import in case goods are received under the cover of the bill of entry. It is a general opinion that there is no need to disclose the details of goods cleared to DTA units in GSTR-1 or GSTR-3B. However, it is suggested to maintain a reconciliation for the same and disclose the same while filing annual returns of the SEZ unit.