INTERNAL CONTROL OVER FINANCIAL REPORTING (ICFR) can be defined as a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. IFCR is mandatory for unlisted companies where a. Turnover is >= Rs. 50 Cr. and b….
SIGNIFICANT BENEFICIAL OWNERSHIP “SBO”
Ministry of Corporate Affairs (MCA) has always been vigilant in curbing black money and round tripping of funds. A current measure to unearth the information, MCA has redrafted the provisions of Section 90 of the Companies Act 2013 to disclose ultimate individual beneficial shareholder of a company in order to reveal legitimate individual owner hiding behind the veils…
Analysis of Central Goods and Services Tax (Fifth Amendment) Rules, 2019: Part-1
The Central Government exercising the powers conferred by section 164, has made an amendment to CGST Rules 2017 ,which is termed as CGST (Fifth Amendment) Rules, 2019. Rule 12 (1A): Grant of registration to persons required to deduct tax at source or to collect tax at source- A person applying for registration to [deduct or]* collect…
GST E-invoice on Government Portal
GST was implemented with several unique provisions which intended to reduce the complexities of pre-GST era. One of such provision stated in rule 46 of CGST rules, 2017 which conferences about unique series of invoice under GST. As per law,a valid invoice is required to claim ITC absence of which results is inadmissibility of credit….
POEM in India: A New Perspective (Part-1)
Taxation of business profits on the basis of economic adherence has always been the underlying basis of existing international taxation rules as both the residence and source countries claim the right to taxation. Economists gave primacy to the economic allegiance rather than physical location and made it clear that physical presence was important only to…
MSME (Micro, Small and Medium Enterprises)
Understanding MSME as per the Law: The Government of India has devised the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 on 02nd October, 2006. As per the Act, categorization of enterprises is done into micro, small and medium enterprises based upon investment in plant & machine for manufacturing & production industry and investment in equipment…
Inter-State Supplies to Unregistered Persons shall Report as Mandated by Law Table 3.2/ GSTR-3B & Table 7B/ GSTR–1
Under GST regime, separate returns namely GSTR-1 & GSTR -2 respectively were designed for reporting of sale and purchase details. But due to teething problems under GST law, GSTR -2 did not materialised since its inception. Also,initially GST law makers had plan to introduce GSTR-3 which obviously could not be possible in the absence of…
Form 16 (Part B): New Procedure, Format and Standards for Issuance
The provisions of Income tax Act, 1961 require an employer to file statement of tax deduction at source (TDS) with respect to its employees in Form 24Q, providing therein details of tax withheld in respect of his employees. Additionally, the employer is required to furnish certificate of TDS in Form 16 to its employees specifying…
Implementation of Ind AS
The Indian Accounting Standards also known as Ind AS and are structured in line with the International Financial Reporting Standards (IFRS). The nomenclature for the naming and numbering of Ind AS is same as that of IFRS. Overall, the accounting changes introduced by Ind AS are positive for foreign firms operating in India. Implementation of…
Applicability of Ind AS
Since Indian companies have a far wider global reach now as compared to earlier, the need to converge reporting standards with international standards was felt, which has led to the introduction of Ind AS (Indian Accounting Standard). These new standards ensure that Indian accounting standards (Ind AS) are in lines with globally accepted standards, IFRS. Therefore,…