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…
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…
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…
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…
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…
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…
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…
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.…
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…
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…