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Section 141 of the Companies Act, 2013- Eligibility, qualifications, and disqualifications of auditors

Section 141 of the Companies Act, 2013- Eligibility, qualifications, and disqualifications of auditors

Introduction
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

Micro, Small and Medium Enterprises

MSME- Micro, Small and Medium Enterprises

Introduction
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.

Applicability
Previously (On the basis of the … Read more

Taxes on Gifts in India

Taxes on Gifts in India

Indian culture is a blend of various religions and there are numerous events and celebrations when people express their love and affection by way of exchanging gifts with each other. There is a misleading contention that there are no taxes on gifts in India.

Gifts can be defined as any sum of money, movable or immovable property, which has been received by any person either without consideration or by way of inadequate consideration.

In order to curb the evasion of tax flow, the Gift Tax Act was enacted by Parliament of India in the year 1958 from the 1stRead more

Audit of Insurance Companies

Audit of Insurance Companies

The Insurance Act defines the Indian Insurance Company as the insurer being a corporation- which is formed and registered under the Companies Act, 2013; whose sole purpose is to continue life insurance business or general insurance business or reinsurance business; and in which collective assets of equity shares by an overseas company, either by itself or through its subsidiary corporations or its nominees, do not go beyond 26% of the paid-up equity capital of such Indian insurance corporation.

The following are the relevant points which an auditor should keep in mind at the time of conducting the audit of an … Read more