Economists in India and market experts have said that the Government of India is now officially in a protectionist mode.
The result of the novel coronavirus pandemic on the global economy is something beyond comprehension until countries, including India, come out of lockdown mode. In a move which is being received with enthusiasm for the most part in India amid fears of takeovers of Indian domestic industries, the Department for Promotion of Industry and Internal Trade (DPIIT) has, by Press Note No. 3 (2020 Series), amended the Foreign Direct Investment (FDI) policy for curbing ‘opportunistic takeovers/acquisitions of Indian companies due … Read more
The world, as a whole, is on a lockdown currently due to the exceptional situation regarding public health and safety caused by the Coronavirus (COVID-19) pandemic. Further due to economy lockdown the whole world get into disruption.
The Ministry of Corporate Affairs, in order to ease matters for the companies, recently announced a new scheme named the Companies Fresh Start Scheme, 2020 (CFSS) giving one time prospects to defaulting companies to file the pending forms without any additional fees and seek immunity from the penalties and prosecutions as provided under Companies Act, 2013. As the name proposes, it is a … Read more
Tax Deducted at Source is one of the ways of government to collect and secure payment of tax based on fixed percentages on the amount payable by the receiver on goods / services. According to section 51 of the CGST Act, following are the persons who are liable to deduct TDS under GST:
- Department or establishment of Central Government or State Government
- Local Authority
- Governmental Agencies
- Category of persons as may be notified by the government on the recommendation of the GST Council
In addition to the aforementioned persons, the government via notification no. 50/2018 dated 13th September, 2018, added … Read more
Accounting of leases under IFRS 16
Lease accounting is the method of recording and reporting on all of the leased property, equipment, and other non-owned assets that a business or other organization holds. Generally, these contracts are categorized as either operating leases or finance leases.
Under the latest lease accounting standards —IFRS 16, these leases and similar contracts must now be accounted for as assets and liabilities on the balance sheet.
|Accounting by lessees
||Accounting by lessors
|For a contract that is or contains a lease a lessee is required to recognize at the commencement date of a lease|
… Read more
A Limited Liability Partnership has become one of the most sought-after businesses these days. Just as the name implies, it exhibits the blend of both partnership and corporation by offering the advantage of Limited Liability of a company and flexibility of a partnership. All LLPs are administered under the Limited Liability Partnership Act of 2008.
Reasons to initiate the scheme
It had been observed lately that a vast number of LLPs have defaulted in the filing of documents or statutory returns due to numerous reasons. Furthermore, the applicability of additional fees of INR 100/- per day for every day created … Read more
With effect from 15th February 2020, a new web based form named ‘SPICe+’ (pronounced ‘SPICe Plus’) has been introduced replacing the existing SPICe form. SPICe+ stands for Simplified Proforma for Incorporating Company electronically. SPICe+ offers services by 3 Central Government Ministries & Departments (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance) and One State Government (Maharashtra), thereby saving as many procedures, time and cost for starting a Business in India. A total of 10 services are being offered by Spice+.
1. SPICe+ is an integrated Web Form.
2. SPICe+ has … Read more
The Finance Minister Smt. Nirmala Sitharaman on 1st February, 2020 presented her 2nd Budget where a new optional personal tax scheme has been proposed vide a newly inserted section i.e. 115BAC applicable to Individuals and HUF only. The income tax slab rates have been reduced significantly in the new regime. However, in order to opt for the new tax regime various key income tax deductions and exemptions as mentioned in subsection (2), which are currently available under the old scheme will have to be forgone.
The following table shows the new slab rates as per Section 115BAC.
… Read more
Employee benefits refer to all forms of compensation (cash/non-cash) paid by an employer to employee apart from salary/wages for the service provided to the employer. Offering employee benefits are essential to attract and retain the talent for the company.
Ind AS-19 deals with accounting of employee benefits
The standard requires an entity to recognize:
- Payroll liability when an employee provides service in exchange for benefits to be paid in the future; and
- Expense when the entity makes use of the benefit derived from service provided by an employee in exchange for benefits to be provided to an employee.
Short term … Read more
In this era of globalization, trade is not just restricted to local markets. Rather the approach has been shifted from domestic to each corner of the world. To make India an export-oriented country, the concerned authorities are trying their best by introducing schemes, granting subsidies, licenses, and by making the export-related processes easier than ever. One of such requirement to extend your business globally is to have IEC- Import Export Code.
Who all are required to obtain IEC registration?
Every person who wants to lead off its import/export business in the country is required to obtain the Import Export Code … Read more
Inventories are assets- held for sale within the ordinary course of business; in the process of production for such sale or assets in the form of materials; supplies to be consumed within the production process or in the rendering of services.
Indian Accounting Standard 2 provides the principles for measurement of inventories, recognition of inventories as expense and disclosure of inventories etc. The objective of the standard is to prescribe the treatment of accounting for inventories. While accounting for inventories an entity needs to recognize the costs and amount to be carried forward until the related revenues are recognized. The … Read more
As per the announcement made by the Finance minister in Budget speech on 1st February 2020 regarding the resolution of Income Tax disputes pending in Court and appellate jurisdiction, the Vivad se Vishwas scheme was tabled on 5th February 2020 in Lok sabha. After discussion in both houses of parliament, the bill was passed by both houses of parliament and received the assent of President of India on 17th March 2020 and was accordingly published in the official gazette of India on 17th March 2020 making the same as “Vivad se Vishwas Act, 2020”
Benefit to … Read more
CARO 2020, commonly known as Companies Auditors Report Order 2020 is the latest prescribed format of audit reports of companies under Companies Act, 2013 which supersedes CARO 2016. The objective of CARO 2020 is to cover the wide variety of information mandated to be disclosed by the auditors in their Audit reports, covering the additional requirements of the National Financial Reporting Authority, to be disclosed to the shareholders and to enhance the overall reliability and transparency of reporting in the financial statements of companies. For instance, earlier, details of any proceedings pending under the Benami Transactions (Prohibition) Act, 1988 … Read more
TDS on salary under Section-192 of Income Tax Act’1961
Salary as defined u/s 17(1) of the Income Tax Act’1961 is the amount paid or payable by an employer to his employee in the return of the services rendered by him. However, salary as per 17(1) includes all wages, annuity or pension, any gratuity, fees, commissions, perquisites or profits, any advance salary, Leave encashment, etc.
Every employer is required to deduct TDS of his eligible employees on the estimated total salary as per section 192 and subsequently provide form 16 at the end of the financial year. For any sum to … Read more
An Interim Financial Report is a complete or condensed set of financial statements reporting the financial results for a period shorter than a fiscal year. Ind AS 34 does not specify which entities must publish an interim financial report. It applies if any entity publishes an interim financial report that asserts compliance with the Indian Accounting Standards.
Ind AS 34 provides the minimum content required to be mentioned in the interim financial report and provides the principles required for recognition and measurement in complete or summarized financial statements for a specified interim period. However, it doesn’t mandate which entities must … Read more
Charity denotes a selfless act. Charity means giving something to those in needs without expecting anything back in return. It is doing something good to others without any expectations in return. People form Non-Government Organizations (NGOs) for doing the charities and social welfare.
NGO’s are formed with the aim to help the society in many different ways. NGO’s mainly have charitable objects and objects to advancement of general public utility. These organizations do not operate with the motive of earning profit. There are many NGO’s operating in India with the aim of welfare of society some are registered and some … Read more
In any tax regime, registration is considered as the most vital requirement in identification of the taxpayers and ensuring tax compliance. Under the GST regime, a number of categories of persons have to register themselves mandatorily under the Act which include:
- A business firm having annual turnover for INR 40 lakhs or more whereas the annual turnover limit is INR 20 lakhs or more in case of special states*
- A business firm already registered under the previous regime
- Casual taxable person
- Taxable person under reverse charge mechanism
- E-commerce operators and suppliers operating though an e-commerce operator
- Inter-state supplier of goods
… Read more
Petty cash fund or simply petty cash may be defined as a small amount of money available for making payments related to small expenses without writing a check. It is also known as imprest cash sometimes. A separate general ledger account is generally prepared to record the petty expenses being incurred and report the available petty cash of the company. A petty cash voucher (for each expense incurred) is generally made for controlling the petty cash.
As far as the presentation of petty cash is concerned, it is presented in the current assets section of the balance sheet. Since petty … Read more
Consolidated financial statements (or usually abbreviated as CFSs) are defined as the financial statements in which the company’s financial statements, as well as financial statements for all of its subsidiaries, divisions, or sub-organizations, are combined and presented as being those of a sole business entity.
What is the purpose of consolidated financial statements?
Consolidated financial statements play an integral part in the accounting process and help in reviewing the overall financial position of the entire group altogether. It is of utmost significance from the viewpoint of creditors and shareholders of the parent company. It is always presumed that consolidated … Read more
A company is defined as a business entity formed for performing certain lawful purposes and is incorporated under the Companies Act, 2013. It is somewhat imperative on the part of the company to work transparently in the best interests of the public in general and its stakeholders. In this regard, an auditor is generally appointed by the company who is entrusted with monitoring the company’s affairs and inspecting the company’s books of accounts and further validating the accuracy of the transactions.
An audit is an impartial or unprejudiced analysis and assessment of the financial statements of a business entity. … Read more
A Micro, Small and Medium Enterprises Development Act, 2006 became operational on October 02, 2006. The act facilitates / boosts the promotion, development and enhancing the competitiveness of micro, small and medium enterprises.
Earlier, MSME’s were classified into two categories on the basis of amount of investment i.e., Manufacturing & Service Enterprises but now according to the revision made in October 2019 by Union Minister Nitin Gadkari, the proposed basis for categorizing MSME’s will be on the amount of turnover. Also, there will be no distinction between the manufacturing and service sectors.
Previously (On the basis of the … Read more