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…
Author: AKGVG & Associates
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…
Joint Development Agreement (JDA) under GST
JDA is always considered as a grey area under GST, as many experts have different view on this transaction. But sale of land is very clear aspect, covered under schedule III of CGST Act,2017, which specify that selling of land does not attract GST as it is treated neither treated as supply of goods nor…
GST on Supply of Water
Water is classified as an essential & supply of the same is exempt through notification no 2/2017- Central Tax Rate dated 28th June,2017. The relevant extract is as under: S. No. Heading Description of Goods Rate (%) Condition 99 2201 Water (Other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralised and water sold in…
Relaxations in Income Tax Provisions on account of Covid-19 (post March 2020 ordinance)
Covid-19 has created a havoc worldwide and people are struggling hard to barely survive in this uncertain environment. People are stranded in different parts of the world on account of lockdown, quarantine and suspension of travel both domestic and international. Due to this, people are facing difficulties even in completing their tax compliances under the…
TDS Deposit Due Date – 30 April or 30 June?
As per the provisions of the Indian Income tax law, Tax Deducted at Source (TDS) on payments/credits made during the month of March, needs to be deposited latest by 30 April. In wake of Covid-19, Indian government issued an ordinance on 31st March 2020, giving relief to tax payers from various tax compliances, adherence of…
Synopsis Of Proposed Changes In GST Act
Addressingto challenges faced by taxpayers, FINMIN has proposed some changes in GST provisions through Finance Bill,2020 which majorly relates to restrictions in respect of availment of input tax credit (referred to as ‘ITC’) and cancellation of voluntary registration. To make headway against refinement of GST Act, following are amendments proposed in finance bill 2020: Entry…
Changes in Income tax Act proposed in Finance Bill, 2020
The Union Finance Minister Nirmala Sitharaman delivered budget speech breaking all previous records w.r.t. time. The budget speech began with a homage to late Mr Arun Jaitley with emphasis on Sabka Saath, Sabka Vikas, Sabka Vishwas. Synopsis of budget proposals in direct tax has been categorized here under: Direct tax rate card: New tax scheme…
IND AS 116 – LEASES
The Ministry of Corporate Affairs (MCA) has notified Ind AS 116, the new Indian Accounting Standard on Leases as on 30th March 2019. This Ind AS -116 replaces the current guidance in Ind AS-17, ‘Leases’. This amendment is effective from on 1st April 2019. Ind AS Definition: Ind AS-116 defines a lease as a contract, or part of a…
Tax On Non-Monetary Perquisites
As a normal practice, it is the employee who bears the tax on the salary earned by it, while the employer withholds such tax on salary and deposits it with income tax authorities. However, sometimes employees move across borders and work in different tax jurisdictions. In such a situation, it is a global practice for…