The Income Tax department will open a new building complex in the city soon, Sailendra Mamidi, Principal Commissioner, Income Tax Department, Chennai and Puducherry has said.
In his keynote address at a session hosted by CII and KPMG to create awareness on the changing face of Financial Reporting & Tax Reporting in India - Adoption of Indian Accounting Standards (Ind-AS) & Income Computation and Disclosure Standards (ICDS), Mr. Mamidi said the newly established building of 12,000 sq. ft will be inaugurated in next four months .
He said a proposal was being submitted to the Puducherry government for two acres of land for establishing an Income Tax Department with residential quarters in Puducherry / Villupuram .
S Narasimhan, Chairman, CII, Puducherry State Council, said the year ahead was going to be a challenging one as “you will have one set of numbers which you will report for quarter ended June 2015 but when you do the comparison with June 2016 you could reach completely different set of numbers”.
“So, effectively you will have to have 2 sets of numbers one under the existing accounting standards and one at the end of June 2016, so it is better to be prepared so that you don’t have to redo everything one year from now,” he said.
Akil Master, Director, KPMG (India), said that with the notification of these accounting standards Indian financial reporting has undergone a change. It is a shift that introduces several new and complex concepts, accompanied by detailed quantitative and qualitative disclosures. On the whole, it would lead to a better reflection of the financial performance of an entity and more relevant information in the hands of users of financial statements.
According to him, the corporate sector will now need to do its part to make the implementation a success, starting with an acknowledgement of the fact that this is not just an accounting change, but one that impacts the whole organization and the way they do business.
Darshan Varma, Director, KPMG (India), said the implementation Ind-AS along with other changes such as ICDS as well as key changes made in the Companies Act 2013 would bring about a substantial change in the reporting framework for corporates. Indian companies will need to ensure appropriate planning and consider wider implication beyond the external reporting for a transition, he said.