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Reduced corporate taxes

Reduced corporate taxes

Various amendments to Income-tax Act, 1961 {Finance (no.2) Act, 2019} has been introduced vide Taxation Laws (Amendment) Ordinance, 2019. In order to boost growth in this period of sluggish economy and to promote “Make in India” initiative, Govt. of India has made series of announcements stated here as under:

  1. A new section 115BBA has been introduced, which gives domestic companies an option to pay tax at reduced rates from 30 per cent to 22 per cent. Effective tax rate, including surcharge and applicable cess reduced from 34.944 per cent to 25.168 per cent.
  1. Another section 115BAB has been introduced wherein
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Double-Taxation-Relief

Double Taxation Avoidance Agreement

Double Taxation means taxing the same income twice for the same purpose earned in same period and in the same tax jurisdiction. When such income is taxed in two countries, the aggregate of the tax liability will form substantial part of his total income.

Double Tax Avoidance Agreement (DTAA) is a tax agreement between two or multiple countries to prevent double taxation of income earned in both countries. DTAA is an agreement between two countries that the income of non-residents should not be taxed both in their country of origin and in the country in which they live.

In 1920, … Read more

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Adoption of ASC: 606 Revenue from Contracts with Customers

ASC 606 is the new revenue recognition standard in US GAAP that has significantly affected the revenue recognition practices of most companies in United States. It provides a comprehensive, industry-neutral revenue recognition model intended to increase financial statement comparability across companies and industries. The standard affects all businesses that enter into contracts with customers to transfer goods or services whether public, private and non-profit entities unless those contracts are within the scope of other standards (for example: leases and insurance contracts). Both the public and private companies should comply with be ASC 606. It focuses on recognizing revenue more consistently. … Read more

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Labor Laws in India

In India, we have numerous laws which regulate the labor in the country and ensure to provide high degree of workers protection and manage the rules relating to the same. This blog describes the basic introduction and applicability of two most common and important funds to various organizations in order to ensure proper working of the system. These are Employee State Insurance (ESI) and Employee Provident Fund (EPF) schemes. ESI is a contributory fund whereby the employees in India are benefited through self-financing and healthcare insurance fund contributed by them and their employer. This scheme is administered and regulated as Read more

Place of supply of goods under GST

Place of supply of goods under GST

The Goods and Service Tax Act was introduced as a destination based tax i.e. the state in which the goods consumed have the right to collect the amount of tax so it becomes critical to decide in which state the goods have been consumed and consequently who should collect the amount of tax. For solving this issue the concept of ‘Place of Supply’ was introduced both for goods and services. 

Place of Supply when there is movement of goods

Supply Place of Supply
Involves movement of goods, whether by the supplier or the recipient or by any other person  Location
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Latest norms of differential voting rights

Latest norms of differential voting rights

In a fillip to startups, the Ministry of Corporate Affairs (MCA) recently amended the Companies (Share Capital and Debentures) Rules, 2014 (SCAD Rules) which are relaxed norms for shares with Differential Voting Rights (DVR) that will help such companies to retain control while raising equity capital. A differential voting right share is one with higher or lower voting rights but the same economic interest as ordinary shares. Shares with higher voting rights have been used by entrepreneurs around the world to retain control of their companies even while selling ordinary equity to investors to raise capital. The MCA move was … Read more

Risk - Based Internal Audit

Risk – Based Internal Audit

Over the last few years, cyber-crimes have grown in number and in the ways cybercriminals exploit them. Due to this, the need to manage risks has been recognized by organizations and adopted as a crucial part of a good governance best practice. A Risk-Based Internal Audit (RBIA) is focused on the organization’s response to the risks they face in achieving their goals and objectives. An RBIA differs from other types of audits as it is based on the business goals and their associated risks. With this approach, internal auditors gain other responsibilities – now they not only manage the control Read more