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GST e-invoicing module- Curbing tax evasion

GST e-invoicing module- Curbing tax evasion

E-invoicing is a common B2B practice involving exchange of an invoice between a supplier and a buyer in an integrated electronic format. Businesses may have a number of reasons to use e-invoicing. Commercial considerations are likely to drive a company’s decision to adopt e-invoicing, as the administrative costs and processing times for issuing and processing electronic documents are typically far lower than those for traditional paper documents. The savings come not only from reducing printing and postage costs, but also from adopting integrated processes for all invoice-related tasks. Since the introduction of GST (Goods and Service Tax) in the Indian … Read more

Recent amendments in real estate taxes

Recent amendments in real estate taxes

Starting a real estate business isn’t for the faint of heart now. GST (Goods and service tax) announcements favors the developer community by making it flexible choosing between old GST rates with Input tax credit (ITC) or the new reduced GST rates of 5 % without ITC. The new tax structures for real estates solved the transition issues on ITC for the ongoing projects and provided a relief for developers. The 33rd GST council meeting recommended a much needed breather to real estate sector which is beneficial for builders / developers as well as the customers. These changes will … Read more

RBI eases External Commercial Borrowings

RBI eases External Commercial Borrowings

India has always encouraged capital inflows as a part of the development policy. Deficient domestic capital and reduction in the current account compelled the government historically to go after foreign capital. Foreign capital is money obtained from foreign countries to make investment domestically. The major category is foreign investment including FDI (Foreign Direct Investment) and FPI (Foreign Portfolio Investment). Likewise, there are other types of foreign capital like trade credit, NRI Deposits and the most important one for India – the External Commercial Borrowings (ECB).

ECB is a loan which is being availed by an Indian entity from a non- … Read more

Insight to new rules of Input Tax credit

Insight to new rules of Input Tax credit

India could face a tax landmine with authorities beginning to question input tax credit claimed by companies in lieu of Goods and Services Tax (GST) paid by their vendors. The authorities have already started sending notices to businesses, confirming fears that scrutiny will increase in the new financial year as the government looks to plug leakages. While paying tax on any output, you can diminish the tax you have already paid on inputs and pay the balance amount referring to input tax credit (ITC). Everyone has to pay taxes on the purchase of a product / service from a registered … Read more

India-US agreement for Country by Country reporting

India-US agreement for Country by Country reporting

India and United States of America signed an inter- governmental agreement for exchange of country- by –country (CbC) reports on March 27, 2019. This enabled both the countries to exchange CbC reports filed by the ultimate parent organizations of multinationals in respect of jurisdictions, pertaining to the years commencing on or after January 1, 2016. Since there was no agreement between India and U.S before which resulted in a situation where CbC reports are required to be filed locally in India, even if the ultimate parent entities of the international group that were in U.S. had filed the CbC reports … Read more

Financial restatements- Understanding the significance

Financial restatements- Understanding the significance

Within the last few years, the corporate reporting environment has been reshaped by revised corporate reporting standards. Corporate officers, auditors and audit committees are involved in the efforts of publicly traded companies to provide accurate corporate financial reports to their investors. But often, mistakes make their way into financial statements of public companies, and when they do, what happens next can vary depending on the timing and severity.  Every corporate office is required to certify that quarterly and annual financial statements are fair in all material respects, financial condition and operational results .It is mandatory to correct a financial statement … Read more

Capital Gain tax reliefs for exiting startup investors

Capital Gain tax reliefs for exiting startup investors

After giving investors and entrepreneurs relief from angel tax, the government now wants to encourage startups and is examining regulatory issues, including taxation, which need to be eased.

With the commerce and industrial ministry taking steps to support budding entrepreneurs, government considers exempting investors from tax on capital gains accrued while exiting a startup so as to attract more funds in the sector. DPIIT (The Department for Promotion of Industry and Internal Trade) considers a limited exemption from capital gains tax to investors similar to tax benefits offered in the United Kingdom which helps in minimizing fraud and deploying more … Read more

Enhancements in e-way bill system

Enhancements in e-way bill system

E-way bill refers to an electronic way bill for movement of goods to be generated on the e-way bill portal. While an e-way bill is generated, a unique e-way bill number is allocated and is available to the supplier, recipient, and the transporter.  An e-way bill will be issued when there is a movement of goods in a vehicle of value for more than INR 50,000. However, in certain states the limit has been extended as decided by the state government:

  • In relation to a ‘supply’
  • For reasons other than ‘supply’
  • Due to inward ‘supply’ from an unregistered person.

Further, … Read more