CA Rushabh Shah

Chartered Accountant | Trying to be an Investor

[Dinesh Wadera @dineshwadera]

Trapped in the Web of “Online Compliance” – A Real Story

A few days ago, I received a case through an existing client. He walked into my office visibly shaken. His first words were filled with panic!

“Sir, this tender is extremely important for me. But the government authorities are saying my company documents are fake. They warned me that not only will I lose the tender, I might even get blacklisted.”

You could see the fear in his eyes. I asked him to sit, relax, and explain everything calmly.

He placed a file on my table and began.

Back in 2020, he had incorporated a private limited company through an online platform operating under the name “Vakil.” They had promised end-to-end compliance, accounting, statutory & tax audit, ROC filings, income tax, GST, all at a surprisingly low annual fee.

For six years, he trusted them blindly.

The Reality Check

I began reviewing his documents.

The first shock came when I called my CS partner and we checked the MCA portal.
- No annual filings
- No AGM compliance
- Directors’ KYC not done
- DINs of all directors suspended

It was as if the company had never complied with the law.

Then I examined the statutory audit reports.

There were no actual audit reports, just financial statements stamped and signed by a so-called CA firm. No UDIN. That raised immediate suspicion.

When I searched for the firm…

It didn’t exist.

Things Got Worse

I moved on to the GST portal.

After resetting the password and checking filings:
- For the past 5 years, only NIL returns were filed
- No Input Tax Credit claimed
- No real business activity reflected

Yet, the client’s turnover had been growing every year.

My head started spinning.

Then came Income Tax.

I immediately called my partner who takes care of Income Tax matters. We saw, Returns were filed, but:
- No tax audit was ever conducted
- Losses were reported and carried forward without audit compliance
- Financial statements and returns didn’t match at all

And then the biggest shock

The signing director mentioned in filings was someone the client had never heard of.

At that moment, it became clear that
Someone else’s DSC was used to file returns for this company.

The Damage Assessment

I asked the client to return the next day.

Meanwhile:
- I consulted our CS partner → Estimated penalties for MCA non-compliance crossed ₹15 lakh
(Thankfully, an amnesty scheme could offer ~90% relief)
- My CA partner reviewed Income Tax →
Filing loss returns without audit… a serious issue, potentially leading to scrutiny and penalties

This wasn’t just negligence.
This was a complete compliance collapse.

The Hard Truth

When the client returned, I asked him a simple question!

“How much were you paying annually?”

He hesitated… then said, “₹10,000 per year.”

I smiled, not out of amusement, but disbelief.

I asked if he had ever checked local professionals.

He admitted:
- Accountant quoted: ₹25,000/year
- Auditor quoted: ₹25,000/year
- CS quoted: ₹15,000/year
- GST consultant: ~₹40,000/year

He chose the cheaper option.

The Cost of “Saving Money”
I then asked,
“Do you know how much it will cost now to fix everything?”

I didn’t mention the MCA amnesty benefit deliberately and told him:
- Penalties: ~₹20 lakh
- Professional fees: ₹6–8 lakh
- And uncertainty of future scrutiny from departments

His face went pale.

With trembling voice and teary eyes, he said,

“Sir, please fix everything. If I don’t get this tender, I will be ruined. Years of hard work will go to waste.”

A Question That Stayed With Me
What answer could I give him?
But more importantly, Who is actually at fault here?
- The online platforms selling “cheap compliance dreams”?
- The client, who despite having crores in turnover, avoided spending on proper compliance?
- Or the system, where “chalta hai” attitude still prevails?

Final Thought
Compliance is not an expense.
It is protection. And sometimes, the cheapest option turns out to be the costliest mistake of your life.

[CA Bimal Jain @BimalGST]

🚨🌟 BREAKING: ICAI EXAMS NOW TO BE HELD ONLY TWICE A YEAR

Official Notification: https://t.co/Cuw8JKWo12

[Dinesh Wadera @dineshwadera]

7,590 new CAs who qualified in March 2026 are in a dilemma.

If they apply for ICAI membership now, they will be charged the full annual membership fee for just one month.

If they wait and apply after 1st April, they can save an entire year’s fee.

A practical solution or relief from Institute of Chartered Accountants of India in such cases would be greatly appreciated.
@FCAUmeshSharma @ruwatiaofficial @theicai

[CA Rushabh Shah @rushabh017]

@cadeepakgupta_ [email protected]

[CA Rushabh Shah @rushabh017]

@goel_nissa87682 @Infosys_GSTN Same issue coming since last 2-3 days.

[CA Rushabh Shah @rushabh017]

@Infosys_GSTN I have sent you ticket numbers.

[CA Rushabh Shah @rushabh017]

Technical error RT-BAS1069 while filing GSTR 3B for Apr25. As per the GST technical team, the matter has been reported and the team is working on it. Kindly Extend the due date.
@Infosys_GSTN @FinMinIndia

[CA Bimal Jain @BimalGST]

📛🔥 HC: Stays demand owing to multiple proceedings by State and Central GST Authorities

➡️ The Calcutta High Court (HC) has issued an interim order restraining any coercive actions related to an order under Section 73(9) of the West Bengal GST Act, which was challenged by the petitioner.

➡️The petitioner argued that the Central Authorities had already initiated proceedings for the same tax period under the Central GST Act, 2017, by issuing a summons under Section 70.

➡️ The petitioner, referring to Section 6(2)(b) of the WBGST Act, contended that the State Authorities, who initiated proceedings later by issuing a Show Cause Notice (SCN) on December 27, 2023, under Section 73, should not have proceeded with the matter or passed any adjudication order under Section 73(9).

➡️ The HC noted that the matter raised a jurisdictional issue about the State Respondents' authority to proceed under the provisions of the Act, considering the provisions in Section 6(2)(b) of the WBGST Act.

➡️ The HC concluded that the petitioner presented a prima facie case and is entitled to interim protection until July 2024.

✔️ Calcutta High Court - Glen Industries Pvt Ltd vs. The Deputy Commissioner of State Tax & Ors. [W.P.A 13552 of 2024]

#GST #GSTwithBimalJain #a2ztaxcorpllp #GSTUpdate #GSTcaseLaw

[CA Rushabh Shah @rushabh017]

@zerodha Even mobile app is also not working.

[Ministry of Information and Broadcasting @MIB_India]

Live: Prime Minister @narendramodi distributes more than 51,000 appointment letters via Rozgar Mela @PMOIndia https://t.co/1n7qgkoJoH

[GST Insights 🇮🇳 @InGSTPortal]

The application for new GST registrations will now show the Center / State jurisdiction to which it has been assigned.

[CA Rushabh Shah @rushabh017]

@IncomeTaxIndia @Infosys Requesting @nsitharamanoffc @PMOIndia to cancel the contract and bring back Old Income Tax Portal which was very familiar to the Professionals.

[CA Manish Desai @the_filmy_ca]

Jinko return file karne me problem ho rahi he,

Unke liye opt out scheme nikalo re baba😂😂🔥💔🤘

#thefilmyca #due_date_extension

[Ahmedabad Police અમદાવાદ પોલીસ @AhmedabadPolice]

Covid19 cases are rapidly spreading. But students are facing crucial issues at this time. Since Exams are a nessecity, they had to exempt it from the curfew guidelines.
With proper santising and precautionary measures taken into consideration, exams will be held as scheduled.

[CA Rushabh Shah @rushabh017]

@AniketTalati @theicai @CAFENILLeads Sir Today’s Arrangement in Zebar School, Ahmedabad was very good. Kudos to you & your Team. Thank You. 👏🏻

[Rahul @rahuljaipur01]

@kdhiraj123 CA students suffered more from CCM's than corona in 2020. They will be worst ICAI officials in the history of ICAI.

#RIPcastudents 🙏😊

still we are positive with thoughts

[Rahul @rahuljaipur01]

CA students suffered more from CCM's than corona in 2020. They will be worst ICAI officials in the history of ICAI.

Share maxi. this hashtag #RIPcastudents

But stay positive.........😊🙏 bas man tha is msg ka so.

[CA Vikram Biyani @cavikrambiyani]

Nothing in your control except exam is as per schedule .. Kya hai yeh ..

[CA Manish Desai @the_filmy_ca]

Baki sab thik par,

Kahi asa to nahi na ki exams ke Centre change karne ke chakkar me "Question Paper" draft karna to nahi reh gaya na

Ek baar check kar lena dear exam committee 😂😂🔥💔🤘

#thefilmyca #icaiexams

[Rahul @rahuljaipur01]

Ahmedabad jsi situation to next week se kafi cities m banegi.....tab ????

1-1 paper postpone karte jaoge ?? bich m covid ho gya or postponed paper m appear ni ho paya to bacha ????

pura group vpis dega bacha 😳😳😂😂

#icaiexams #icai #ICAI_DENIES_JUSTICE retweet maxi.😉