Reading of Financial Statements under Indirect Taxes

Contents

1.Introduction.

2.Utility of reading AFS correctly.

3.AFS Areas not having IDT Impact. 

4.Indicators from Balance Sheet (BS) with Notes. 

5.Indicators from Profit & Loss (PL) with Notes. 

6.Other Inferences & Areas outside AFS.

7.Conclusion.

Introduction

With the removal of CA/CMA mandatory external audits under GST and the beginning of GST departmental audits, it is...

Background

The scope, coverage and taxability of intermediary services has been a subject matter of litigation since service tax regime. Under service tax law, there had been disputes about the applicability of service tax levy on commission agency services by Indian service providers to foreign principals. The argument was that all services were provided by way of marketing /sales promotion to end customers in India, consequently taxable in India. The issue was more or less settled over...

1. Introduction and background

The COVID-19 crisis has caused an unprecedented crisis in various aspects of "life". In India, the 2nd wave is having a devastating effect in terms of number of causalities, contributed by the lack of health care facilities (beds & oxygen), the shortage of medical supplies, doctors and nurses and vaccines. In a desperate attempt to fulfil the shortages, the government reduced IGST on the oxygen concentrator to 12%, when imported as gift. 

But this...