INCOME TAX
1. E-Settlement Scheme,2021
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a. The Central Board of Direct Taxes (CBDT) has rolled out a scheme for settlement of tax disputes involving small tax payers to be processed entirely electronically.
b. Under the e-Settlement Scheme, 2021 that is effective from Monday, an ‘interim board’ will decide on applications for settlement. The interim board is tasked with handling pleas that are transferred from the Settlement Commission.
c. While announcing a new Dispute Resolution Committee in union budget for FY22, the government said taxpayers having taxable income up to ₹five million and disputed income up to ₹one million could seek settlement under this Committee and any pending cases before the Settlement Commission would be handled by the Interim Board.
d. The e-Settlement scheme says that all communication between the Interim Board and tax payers will be exclusively in electronic mode. All communications between the Interim Board and the applicant, or his authorised representative, shall be exchanged by electronic mode, showed an official order.
2. Amendment to determination of Arm’s length price in Transfer pricing
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In exercise of the powers conferred by the third proviso to sub-section (2) of section 92C of the Income-tax Act, 1961 (43 of 1961)(hereafter referred to as the 'said Act'), read with proviso to sub-rule (7) of rule 10CA of the Income-tax Rules, 1962, the Central Government hereby notifies that where the variation between the arm's length price determined under section 92C and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exceed one per cent. of the latter in respect of wholesale trading and three per cent. of the latter in all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm's length price for Assessment Year 2021-22.
Explanation.—For the purposes of this notification, "wholesale trading" means an international transaction or specified domestic transaction of trading in goods, which fulfils the following conditions, namely:—
a. purchase cost of finished goods is eighty per cent. or more of the total cost pertaining to such trading activities; and
b. average monthly closing inventory of such goods is ten per cent. or less of sales pertaining to such trading activities.
3. Clarification regarding Section 36(1)(xvii) of Income Tax Act,1961
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1.The Finance Act, 2015 inserted the following clause (xvii) in sub-section (1) of section 36 of the Income-tax Act, 1961 (the Act) to provide for deduction on account of the amount of expenditure incurred by a co-operative society engaged in the business of manufacture of sugar—
"(xvii) the amount of expenditure incurred by a co-operative society engaged in the business of manufacture of sugar for purchase of sugarcane at a price which is equal to or less than the price fixed or approved by the Government;" This clause took effect from 1-4-2016 and accordingly applied to assessment year 2016-17 and subsequent assessment years.
2.The issue of treatment of additional payment for sugarcane price by Co-operative sugar mills as an income distribution to farmer members and the resuitant tax liabilities has been brought to the notice of the Central Board of Direct Taxes (the Board).
3. The matter has been examined by the Board and in this regard, it is clarified that the phrase 'price fixed or approved by the Government' in clause (xvii) in sub-section (1) of section 36 of the Act includes price fixation by State Governments through State-level Acts/Orders or other legal instruments that regulate the purchase price for sugarcane, including State Advised Price, which may be higher than the Statutory Minimum Price/Fair and Remunerative Price fixed by the Central Government.
COMPANIES ACT
1. Extension of last date of filing of cost audit report
In continuation to this Ministry's General Circular No.15/2021 dated 27-9-2021, in view of the disruption caused by the COVID-19 pandemic and after due examination of the representations received from stakeholders, it has been decided to substitute the word and figures "31st October, 2021" with the word and figures "30th November, 2021" in the said General Circular.2. Relaxation on levy of additional fees in filing of e-forms
Keeping in view of various requests received from stakeholders regarding relaxation on levy of additional fees for annual financial statement filings required to be done for the financial year ended on 31-3-2021, it has been decided that no additional fees shall be levied upto 31-12-2021 for the filing of e-forms AOC-4, AOC-4 (CFS), AOC-4XBRL, AOC-4 Non-XBRL and MGT-7/MGT-7A in respect of the financial year ended on 31-3-2021. During the said period, only normal fees shall be payable for the filing of the aforementioned e-forms.SEBI
Maintenance of current accounts in multiple banks by Stock Brokers
a. SEBI vide circular no. SMD/SED/CIR/93/23321dated November 18, 1993 on “Regulation of Transactions between Clients and Brokers” mandated that all the brokers shall keep the money of the clients in a separate account and their own money in a separate account. Further, SEBI vide circular no. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 on “Enhanced Supervision of Stock Broker/Depository Participants” and CIR/HO/MIRSD/MIRSD2/CIR/P/2017/64 dated June 22, 2017 on “Clarification to Enhanced Supervision Circular” provided guidelines on uniform nomenclature to be followed by Stock Brokers for naming and tagging of bank accounts according to which Bank account(s) which hold clients funds shall be named as "Name of Stock Broker -Client Account", Bank account(s) held for the purpose of settlement would be named as "Name of Stock Broker -Settlement Account" and that naming of proprietary bank account is voluntary and all accounts which are not named as Client/Settlement account would be deemed to be proprietary accounts.
b. Reserve Bank of India (RBI) has issued a circular no. DOR.No.BP.BC/7/21.04.048/2020-21 dated August 06, 2020 according to which banks shall not open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system and all transactions shall be routed through the CC/OD account. However, on a review, RBI vide circular no. DOR.No.BP.BC.30/21.04.048/2020-21 dated December 14, 2020has permitted banks to open specific accounts which are stipulated under various statutes and instruction of other regulators/regulatory departments, without any restrictions placed in terms of the RBI circular dated August 06, 2020.
c. SEBI has received representations regarding the issue being faced by Stock Brokers in view of the aforementioned circulars issued by RBI, and was requested to issue instructions to Stock Brokers in respect of maintenance of current accounts in multiple banks.
d. In order to facilitate seamless settlement of funds and for the convenience of investors, it is clarified that Stock Brokers should maintain current accounts in appropriate number of banks (subject to the maximum limit prescribed by Stock Exchanges/SEBI from time to time) for holding the client funds (i.e., Client Account),for settlement purposes (i.e., Settlement Account) and any other accounts mandated by Stock Exchanges such as Exchange Dues Account subject to the condition that brokers are using these accounts for their defined purposes.
e. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
FEMA
Money Transfer Service Scheme (MTSS) is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India.
RBI FED has issued Master Direction No. 1/2016-17 dated 22-2-2017 on 'Money Transfer Service Scheme (MTSS)' which consolidates RBI directions on this issue.
ALLOWED:
1. Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible.
2. Under MTSS the remitters and the beneficiaries are individuals only
NOT ALLOWED:
1. No outward remittance from India is permissible under MTSS.
2. Donations/contributions to charitable institutions/trusts, trade related remittances, remittance towards purchase of property, investments or credit to NRE Accounts shall not be made through MTSS.
HOW DOES IT OPERATE
RBI Authorisation to Indian Agents
1. RBI may accord necessary permission (authorization) to any person to act as an Indian Agent under the Money Transfer Service Scheme.
2. No person can handle the business of cross-border money transfer to India in any capacity unless specifically permitted to do so by RBI.
Entry Norms to act as Indian Agent –
1. The applicant to become an Indian Agent should be an Authorised Dealer Category-I bank or an Authorised Dealer Category-II or a Full-Fledged Money Changer (FFMC), or a Scheduled Commercial Bank or the Department of Posts.
2. The applicant should have minimum Net Owned Funds of Rs.50 lakh, as per following definition:
a. Owned Funds: - (Paid-up Equity Capital + Free reserves + Credit balance in Profit & Loss A/c) minus (Accumulated balance of loss, Deferred revenue expenditure and Other intangible assets)
b.Net Owned Funds: - Owned funds minus the number of investments in shares of its subsidiaries, companies in the same group, all (other) non-banking financial companies as also the book value of debentures, bonds, outstanding loans and advances made to and deposits with its subsidiaries and companies in the same group in excess of 10 per cent of the Owned funds.
c. The Indian Agents need to have strength and efficiency to function profitably in a highly competitive environment. As a number of Indian Agents are already functioning, permission (authorization) will be issued on a very selective basis to those who meet the above requirements, have necessary outreach and who are likely to conform to the best international and domestic standards of customer service and efficiency.
d. The Indian Agent should commence its money transfer operations under the scheme within a period of six months from the date of issuance of permission (authorization) and inform the regional office concerned of the Foreign Exchange Department of the Reserve Bank
Collateral by Overseas Principal in favour of Indian Agent –
1. Collateral equivalent to 3 days' average drawings or USD 50,000, whichever is higher, may be kept by the Overseas Principal in favour of the Indian Agent with a designated bank in India.
2. The minimum amount of USD 50,000 shall be kept as a foreign currency deposit while the balance amount may be kept in the form of a Bank Guarantee.
3. The adequacy of collateral should be reviewed by Indian Agents at quarterly intervals on the basis of remittances received during the past three months.
This collateral is required as the Indian Agent pays amount to Indian beneficiary immediately, while Overseas Principal remits the funds later.
Limit of USD 2,500 and cash payment only up to Rs. 50,000 –
A cap of USD 2500 has been placed on individual remittance under the scheme. Amounts up to Rs. 50,000 may be paid in cash to a beneficiary in India.
Any amount exceeding this limit shall be paid by means of account payee cheque/demand draft/payment order, etc., or credited directly to the beneficiary's bank account only.
However, in exceptional circumstances, where the beneficiary is a foreign tourist, higher amounts may be disbursed in cash. Full details of such transactions should be kept on record for scrutiny by the auditors/inspectors.
Only 30 remittances can be received by a single individual beneficiary under the scheme during a calendar year
Appointment of Sub Agents by Indian Agents
Indian Agents can enter into Sub Agency agreements with entities, fulfilling certain conditions, for the purpose of undertaking money transfer business.
The Indian Agents are fully responsible for the activities of their Sub Agents. While the Indian Agents will be encouraged to act as self-regulated entities, the onus of ensuring the conduct of activities of the Sub Agents in the prescribed manner will lie solely on the Indian Agents concerned and Reserve Bank of India can in no way be held responsible for the activities of the Sub Agents.
Each Indian Agent would be required to conduct due diligence before appointing a Sub Agent and any irregularity observed could render the Indian Agent's permission liable for cancellation.
Renewal of permission (authorization) of existing Indian Agents
Necessary permission to Indian Agents will be issued initially for a period of one year, which may be renewed for one to three years at a time on the basis of fulfilment of all conditions and other directions/instructions issued by the Reserve Bank from time to time.
Reporting to RBI
The reporting requirements are given below.The forms and detailed instructions are given in Part I(ii) of RBI FED Master Direction No. 18/2015-16 dated 1-1-2016 on 'Reporting'.
1. List of Sub-Agents, Overseas Principal-Indian Agent wise.
2. List of additional locations
3. Quarterly statement of the quantum of remittances received
4. Half-yearly statement of the collateral held as at the end of June and December every year
Companies Act 2013
Limited Liability Partnership
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.
The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.
The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP. Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.
Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity.
Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.
LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession.
Maintenance of books of account
To reflect the true and fair view of state of affairs, every LLP is required to maintain books of account. Every LLP is required to maintain the books of accounts on cash basis or accrual basis (recording revenues when they are earned and not when they are received in cash, and recording expenses when they are incurred and not when they are paid) and also according to Double Entry System of Accounting. The books of accounts shall also be preserved in the registered office of the LLP for the specified period.Every LLP has to maintain uniform financial year ending on 31st March of a year. The LLP rules provide that the books of account shall contain:
a) Particulars of all sums of money received and expended (spend)by the LLP and the matters with respect to which the receipts and expenditures take place
b) A record of all the assets and liabilities of the LLP
c) Statements of cost of goods purchased, inventories, work-in progress, finished goods and cost of goods sold
d) Any other particular as the partner/s may decide
Preservation period of books of account
The books of account are required to be preserved for 8 years - i.e., current year plus last eight years.Audit
LLPs with a turnover of Rs 40 lakhs or more, or contribution of Rs 25 lakhs or more are to appoint a Chartered Accountant to do their audits every year. LLPs are required to maintain their book of accounts in a double entry system. They ought to prepare the Statement of Solvency every year by 31st March. Every year, the same should be filed in the form 8 with the registrar of companies by 30th October.Documents required for the appointment of auditor
The following documents are required for appointment of auditor(s)
1. Consent letter from the auditor.
2. Valid certificate from auditor(s) stating their eligibility to get appointed.
3. Resolution duly passed by the limited liability partnership.
Filing requirement in LLP for auditors’ appointment
Since there is no form has been prescribed in the Limited Liability Partnership Act 2008, as on date, there is no requirement to intimate the Registrar of Companies for an auditor's appointment in the limited liability partnership.
Remuneration of auditor in LLP
Unlike under Companies Act 2013, there is no provisions under the Limited Liability Partnership Act 2008 is prescribed for the remuneration to be paid to the auditor(s). In view of this, the remuneration would be as provided in the LLP agreement and the mutual understanding between the partners and the auditor(s). Rule 24(17) of Limited Liability Partnership Rules 2009 also states that the remuneration of an auditor appointed by the limited liability partnership may be fixed by the designated partners or by following the procedure as laid down in the LLP agreement.
Tenure of office of an auditor
Pursuant to Rule 24 (13) of the Limited Liability Partnership Rule 2009, an auditor or auditors of limited likably partnership shall hold office in accordance with the terms of his or their appointment which is for a year. However, the auditor shall continue to hold such office till the period until such time (a) a new auditor(s) is appointed or (b) the auditors are reappointed.
Annual returns
Irrespective of whether the company has done business or not, an LLP has to file returns every year. The returns have to be filed in the form of Form 11 which is to be submitted to the registrar within 60 days after the end of a financial year.
Income tax
Tax Audit of the accounts is mandatory for an LLP with annual turnover of Rs 100 lakh or more. (Up to FY 2019-20). However, from 2020-21, it would be applicable for turnover above 500 Lakhs.
Income tax returns have to be filed under ITR 5. And the income tax rate for an LLP is 30%. This is to be filed irrespective of the audit applicability
Section 115JC states that the tax payable by an LLP should not be less than 18.5% of the adjusted total income. (AMT).
If an LLP’s turnover doesn’t exceed Rs 40 lakh it doesn’t require LLP Audit and the due date to file the income tax is 31st July.
Those with a turnover of more than Rs 40 lakh will have to file their income tax by 30th September.
The LLPs who have done international business ought to file Form 3CEB which must be approved by a CA. The due date to file income tax in such cases is 30th November of every year.
Applicability of Minimum Alternate Tax to LLP (MAT)
Provisions relating to Minimum Alternate Tax (MAT) in section 115JB, Dividend Distribution Tax (DDT) in section 115-O, Deemed Dividend (DD) in section 2(22) will not apply to a limited liability partnership. However, in the following cases, Minimum Alternate Tax would be applicable to the limited liability partnership: -
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a. When LLP claims
b. deduction under section 80H to 80RRB (except section 80P)
c. deduction under section 35AD
d. deduction under section 10AA
Applicability of presumptive taxation scheme to LLP
Under section 44AD as substituted by the Finance (No. 2) Act, 2009, a limited liability partnership is not eligible for the scheme of presumptive taxation. However foreign limited liability partnership would be treated as corporate assesse. Accordingly, all the provisions as applicable to company would apply to foreign limited liability partnership.
Conversion of partnership firm under the Partnership Act 1932 to LLP
There is no specific provision in the Income-tax Act, 1961 for exemption from taxation on conversion or a partnership firm under the Partnership Act, 1932 (general partnership) into an limited liability partnership. However, in case of conversion of a General Partnership into an limited liability partnership, the Explanatory Memorandum to the Finance (No. 2) Bill, 2009 clarifies that since a general partnership and an limited liability partnership are considered equivalent, conversion of a general partnership into an limited liability partnership will be tax neutral if the rights and obligations of the partners remain the same and there is no transfer of assets or liabilities.
Capital Gains related provisions for LLP
The Finance Act, 2010, has introduced section 47(xiiib) w. e. f. 1-4-2011. The newly introduced section exempts from Capital Gains, any transfer of a capital assets by private company or unlisted public company to a Limited Liability transfer or any transfer of shares held in the company by a shareholder as a result of conversion of the company into a Limited Liability Partnership. The conversion must satisfy conditions laid down in sections 56 & 57 of the Limited Liability Partnership Act 2008 and satisfaction of various conditions prescribed under this section itself.
Income Tax Return
Under section 140 of the Income-tax Act, 1961, return of income of a limited liability partnership is to be signed by a designated partner. However, if for any unavoidable reason the designated partner is unable to sign or where there is no designated partner, any partner may sign the return.
Partner's liability towards liability of income tax of LLP
Under the section 167C, each partner of an limited liability partnership is jointly and severally liable for tax due from an limited liability partnership if it cannot be recovered from the limited liability partnership unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the limited liability partnership. This section is similar to section 179 applicable to directors of a private company. It is materially different from section 188A already existing and applicable to partners of a partnership firm.
Tax Audit
The limited liability partnership whose turnover exceeds rupees one crore is required to get its books of accounts tax audited under section 44AB of the Income-tax Act and contain the tax audit report in form 3CA which is required to be filed with the income tax department before the due date for each financial year. However, those limited liability partnerships who are not liable for Tax Audit, needs to file Income Tax Return on or before the due date.
Taxation
CBIC issues Guidelines for disallowing Debit of Electronic Credit Ledger under GST
The Central Board of Indirect Taxes and Customs (CBIC) has issued the Guidelines for disallowing debit of Electronic Credit Ledger under Rule 86A of the CGST Rules, 2017. Rule 86A of the Central Goods and Services Tax Rules, 2017 provides that in certain circumstances, Commissioner or an officer authorized by him, on the basis of a reasonable belief that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible, may not allow debit of an amount equivalent to such credit in electronic credit ledger.
Doubts have been raised by the field formations on various issues pertaining to disallowing debit of input tax credit from electronic credit ledger, under rule 86A of the Rules. Further, Hon’ble High Courts in some cases have emphasized the need for laying down guidelines for the purpose of invoking rule 86A.
Perusal of the rule makes it clear that the Commissioner, or an officer authorised by him, not below the rank of Assistant Commissioner, must have” reasons to believe” that credit of input tax available in the electronic credit ledger is either ineligible or has been fraudulently availed by the registered person, before disallowing the debit of amount from electronic credit ledger of the said registered person under rule 86A. The reasons for such belief must be based only on one or more of the following grounds:
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a. The credit is availed by the registered person on the invoices or debit notes issued by a supplier, who is found to be non-existent or is found not to be conducting any business from the place declared in registration.
b.The credit is availed by the registered person on invoices or debit notes, without actually receiving any goods or services or both.
c. The credit is availed by the registered person on invoices or debit notes, the tax in respect of which has not been paid to the government.
d. The registered person claiming the credit is found to be non-existent or is found not to be conducting, any business from the place declared in registration.
e.The credit is availed by the registered person without having any invoice or debit note or any other valid document for it.
The Commissioner (including Principal Commissioner) is the proper officer for the purpose of exercising powers for disallowing the debit of amount from electronic credit ledger of a registered person under rule 86A. However, Commissioner/ Principal Commissioner can also authorize any officer subordinate to him, not below the rank of Assistant Commissioner, to be the proper officer for exercising such power under rule 86A.
Where during the course of Audit under section 65 or 66 of CGST Act, 2017 it is noticed that any input tax credit has been fraudulently availed or is ineligible as per the grounds mentioned in sub-rule (1) of rule 86A, which may require disallowing debit of electronic credit ledger under rule 86A, the concerned Commissioner/ Principal Commissioner of CGST Audit Commissionerate may refer the same to the jurisdictional CGST Commissioner for examination of the matter for exercise of power under rule 86A.
Monetary Limit for Disallowance
| Total amount of ineligible or fraudulently availed input tax credit | Officer to disallow debit of amount from electronic credit ledger under rule 86A |
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| Not exceeding Rupees 1 crore | Deputy Commissioner/ Assistant Commissioner |
| Above Rupees 1 crore but not exceeding Rs 5 crore | Additional Commissioner/ Joint Commissioner |
| Above Rs 5 crore | Principal Commissioner/ Commissioner |
The amount disallowed for debit from electronic credit ledger should not be more than the amount of input tax credit which is believed to have been fraudulently availed or is ineligible, as per the conditions/ grounds mentioned in sub-rule (1) of rule 86A.
The action by the Commissioner or the authorized officer, as the case may be, to disallow debit from electronic credit ledger of a registered person, is informed on the portal to the concerned registered person, along with the details of the officer who has disallowed such debit.
As per the guidelines, the Commissioner or the authorized officer, as the case may be, either on his own or based on the submissions made by the taxpayer with material evidence thereof, may examine the matter afresh and on being satisfied that the input tax credit, initially considered to be fraudulently availed or ineligible as per conditions of sub-rule (1) of rule 86A, is no more ineligible or wrongly availed, either partially or fully, may allow the use of the credit, so disallowed/restricted, up to the extent of eligibility, as per powers granted under sub-rule (2) of rule 86A. Reasons for allowing the debit of electronic credit ledger, which had been earlier disallowed, shall be duly recorded on file in writing, before allowing such debit of electronic credit ledger.
TRENDING TOPIC
Block chain and the future of Accounting and Audit
Once in a while, we could witness a disruptive technology emerge and change the way the world operates entirely. Such an occasion is the emergence of Blockchain Technology in the last few years. Blockchain in simple terms is a decentralized, distributed, public ledger that exists in a network. Its inherent design is that the record or history once created in a blockchain is unalterable and also transparent.
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a. A Blockchain is essentially a digital, distributed transaction ledger with identical copies maintained on each of the network’s members’ computers. All parties can review previous entries and record new ones.
b. Transactions are grouped in blocks and recorded one after the other in a chain of blocks (hence the name “blockchain”). Cryptography protects the links between blocks and their content, so previous transactions cannot be destroyed or forged. This means the ledger and transaction network are trusted without a central authority or middleman.
c. The Blockchain’s ability to record, store and move any kinds of assets with absolute ease, automation and decentralized has sparked interest from startups and the financial services industry, which envision possible use cases and applications in multiple areas.
Accountants are considered the best record keepers for years now whose primary job is to record every financial information and maintain the ledgers of the financial information. With the basics of block chain being directly connected with that of the accountancy profession which is maintaining a ledger of financial information but it is also decentralized, distributed and effectively unbreakable and tamper proof, in a block chain environment, it offers everything that the accounting world needs right now. It has the potential to reduce and minimize the cost and efforts required to maintain and reconcile ledgers and also with absolute certainty over the record of transactions. With the help of blockchain and integrating automation tools, the accountants shall be relieved of his recordkeeping duties and concentrate on more complex transactions and analysis of the financial information with the reality and provide more values in other areas.
Blockchain technology with opportunity to become an absolute replacement for maintaining record of transactions and reduce the necessity to reconcile transactions, it poses a threat to those who are skilled at only maintaining records and reconciliations and it is time for those accountants to concentrate and improve their skill on other areas where he/she could be of more value such as analysis, planning and valuation, etc., And it is also essential that those in the accounting industry start learning the blockchain technology along with automation tools and bit of machine learning to cope up with this raising technology and as well as for effective implementation of blockchain in the accounting industry.
As it reduces the need to reconcile transactions for accountants, it also significantly reduces the necessity to obtain confirmations for auditors. With the blockchain, the auditor need not spend time and effort on the transaction levels as it provides absolute certainty over each recorded transactions. With the help of various automated tools in a blockchain environment, a complete automated audit may be a possibility in the future. And the expert auditors shall improve their skills in blockchain and machine learning for its successful implementation thereby reducing their time and effort and also focus on rather very important complex transactions and areas which could add value to any organization or industry as a whole.