Applicability of Tax Audit for AY 2021-22
A. Tax Audit Limit for Individual/HUF/firm engaged in Business: Turnover exceeds Rs. 5 crore: Tax Audit under the Income Tax Act 1961 is applicable to all entities if the total sales, turnover or gross receipts (as the case may be) in a business for the year exceeds Rs. 5 crore. 2. Turnover is between Rs. 2 […]
Decoding the newly introduced Section 194Q for deduction of TDS
W.e.f. 01st July, the Government has introduced a new provision for deduction of TDS u/s 194Q, the applicability of which is being reproduced below in a simplified point by point manner: 1. Deduction in which case: Purchase of goods (including capital goods) from a resident seller (This implies that import transactions are out of the purview of this section) 2. Event […]
Navigating GST Complexities: ITC Reversal for non-payment of vendor invoice within 180 days
Second & Third Proviso to Section 16(2) of the CGST Act 2017 provide that: “Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon […]
Procedure for issue of ESOPs under Companies Act 2013
Step 1: Check the Articles for any specific provision on issue of share under ESOP. Check the Articles to understand if any specific provision has been provided with respect to issue of share under ESOP. Step 2: Hold Board MeetingAction to be taken in the Board Meeting: 1. Authorization for issue of shares under ESOP2. […]
EMPLOYEES STOCK OPTION SCHEME- Meaning, Types & Tax Implications
MEANING (SECTION 2(37) OF COMPANIES ACT, 2013):“Employees’ Stock Option” means the option given to the directors, officers or employees of a Company or of its holding company or subsidiary company or companies, if any, which gives such directors, officers or employees, the benefit or right to purchase, or to subscribe for, the shares of the […]
Works Contract Services under GST: Resolving Complexities
As per section 2(119) of CGST Act, “Works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. […]
GST: Year-end tasks to be undertaken before filing the return for the m/o March’21…
The end of a financial year entails additional multiple action points for the accounts team in every organization, few of which relating to GST are being summarized below for easy reference: 1. Draft & send an email to all your customers to check that all the sales bills issued to them during the year are […]
Different types of Show Cause Notices under GST, its Service and Responding to them….
Show cause notice (SCN) is a document served by the department on a person asking him to explain with reasons as to why a particular course of action should not be taken against him. It is similar to an opportunity given to a person who is proposed to be charged with violation of law by […]
Situations that can lead to Suspension or Cancellation of GST registration and ways to avoid it….
Section 29 of the Central Goods And Services Tax Act, 2017 and Rule 21 of the Central Goods and Services Tax Rules, 2017 provide for suspension or cancellation of registration. Situations giving rise to suspension/cancellation: (a) does not conduct any business from the declared place of business; (b) issues invoice or bill without […]
Determining Non-Resident Individual (NRI) status and related issues under the Income Tax Act 1961
How to determine that an Individual is NRI: As per section 6 of the Income-tax Act, an individual is said to be non-resident in India if he is not a resident in India. An individual is deemed to be resident in India in any previous year if he satisfies any of the following conditions: 1. If […]