The impacts of the outbreak on financial statements will depend on facts and circumstances, including the degree to which a business operation is exposed, and the sensitivity of amounts recorded in the financial statements to the volatility of economic conditions. This article looks at some of the aspects that needs to be considered by the companies…
Month: June 2020
Frauds and Covid-19
Frauds globally can easily be executed by taking advantage of the individual’s lack of awareness, many financial institutions, law enforcement officers and state departments have cautioned individuals related to frauds. The threat of getting infected by this virus called covid-19 is on top of people’s minds. Fraudsters and cybercriminals are using newer ways to defraud…
TDS on Dividends in India – Post Budget 2020
With the advent of Financial Year 2020-21, dividend taxation in India has completely gone upside-down. The new provisions have again asked the recipient of Dividend to pay taxes instead of the Company who was distributing the dividends. The changes in the Income-tax law which brought the above change are as under: Dividend Distribution Tax (DDT)…
Materiality
Due to practical limitations, any auditor cannot carry out the examination of all the transactions and balances, so materiality ensures covering the transactions significant enough to influence the decisions of the users of the financial statements. Also, materiality is an essential concept since, materiality and audit risk are directly related i.e., higher the level of…
GST on Liquidated Damages
Liquidated damages are means of compensation for the breach of a contract. In literal sense, ‘Liquidate’ implies the winding up of affairs of a business and on the other hand the word ‘Damages’ denotes a sum of money claimed or awarded in compensation for a loss or an inquiry. Example: There is a forfeiture clause to…
Impairment of Assets
In this dynamic business environment, the real market value of the assets that a business presents in its financial statements does not stay intact. The market value of the assets might be different as compared to their carrying amount. If there are some indications about the permanent downside in the market value of the assets…
GST on Tobacco Leaves Procured
Tobacco is obtained from various cultivated varieties and has multiple varieties based on size and shape. Tobacco may be cured either as whole plant (on the stalk) or as separate leaves. Before packing for shipment, the dried leaves are treated in order to ensure their preservation. Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 Rates Effective…
