Changing the financial year is in news again. Earlier, NASSCOM, in response to the Government initiative to examine desirability and feasibility of changing the Financial year, NASSCOM conducted a member survey comprising of IT/ITeS and E-commerce companies to assess industry's views and concerns on the issue.
The current financial year has been in practice in India for a very long time and is aligned with the UK system. Globally, different countries have different tax years and therefore multinational companies have to deal different reporting years, depending on their country of operation.
The response to specific questions posed by the Hon’ble committee members are summarized based on the inputs received from the members. The questions are listed below:
- Is there merit in moving to a financial year (for Central and State Governments) other than the present one and if so what should it be and for what reasons?
- If the financial year for governments (including the tax year) is changed (irrespective of your preferences), what issues, challenges and difficulties you foresee for the businesses you represent?
- Will changes in the financial year under these alternative scenarios entail relatively minor or major transitional costs / disruptions for the businesses your organization represents?
- Impact of GST Amendment Bill
For the responses please download the attached document. Also, let us know your thoughts in the comments section.