Blogs

Introduction:

It is common practice prevailing in many industries that certain materials are provided by the customer to the manufacturer or contractor. This is done for various business or economic reasons. For example, moulds, jigs and dies etc., are provided by the Original Equipment Manufacturers (OEM) to a component manufacturer in the automobile industry. Similarly, the client would be supplying the diesel and explosives to the mining contractor. Likewise, the recipient would be...

The Government of India is keen on implementing the GST law from 01.04.2017. In previous two articles, we wrote on impact of GST on sales and procurement function in case of manufacturers. Though these are the two main functions having big impact under GST, the accounting function cannot be ignored. It is accounting function which has to take care of compliances such as tax payment, return filing, registration etc. In this article, we have discussed few aspects having impact on accounting...

Introduction:

Audit documentation is the written record (including electronic record) prepared during the course of audit which forms foundation for auditor’s in preserving the various observations identified during the audit, acts as a proof of performance of audit and safeguard the auditor at the time of dispute. Besides, documents are keys to determine the trail of any transaction, it plays pivotal role in all the audits under GST law and in general. Further, the audit documentation...

Introduction:

In a conventional sense, audit means scrutiny, verification of documents, events and processes in order to verify facts and to draw conclusions regarding the correctness of recording of facts and the efficiency of system under study. Today, the concept of audit in general has undergone change from a transactional audit to a risk based one. 

GST law mainly functions under the principles of self-assessment wherein the tax payers assess / determine the tax liability and...

Introduction: Banquet hall services are usually provided by hotels and it consist of supply of food and supply of other services i.e., renting the hall, serving, ambiance, etc. Restaurant services are also provided by hotels and it involves supply of food and Supply of other services i.e. serving, ambiance, etc. In Banquet, renting the hall could be the main element (as there could be a case where only the hall is rented whereas food could be procured from elsewhere, but there can never be...

GST compliance for real estate has always been a nightmare considering the frequent changes in the rates, tax structure, GST returns to be filed, so an and so forth. Assessee to be tax compliant has to look for ways and means to make the tax compliances easier. An attempt was made to simplify the GST compliance relating to real estate and to reduce the GST cost to the ultimate customer by way of introducing a new scheme of rate. But the new scheme also does not look simple. 

GST...

Introduction:

The shipping industry is a vital part of global freight transportation which caters global trade supply-chain. More than 90% of the world trade is through oceans as it is the most affordable and efficient mode of transporting goods, where a large volume of goods can be carried on vessels for long distances at a fraction of a cost when compared to other modes of transport like rail, roads, air, etc.  Before, going to analyze the applicability of GST on inward ocean freight...

With a time limit being set in the law for availing credit (u/s 16(4) of the CGST Act, 2017) it is important to reconcile the tax credits as per books and that as claimed in Form GSTR-3B. During this reconciliation it would be fruitful to also review those tax payments of which credit has not been availed and tag them into those:

1. Actually ineligible (no further action required in this regard),
2. Which are doubtful due to which not availed (profession advice can be sought to decide the...

Introduction:

One of the major expenditures incurred in some of the industries is business promotion. This being a typical and a critical expenditure for many industries (i.e. even a small trader in such industry would have to incur such expense), innovation is the stress whereby business promotion schemes could take form of free goods being given or reward points being given or free trips being offered, etc. In the recent ruling given by the Karnataka Authority for Advance Ruling (AAR)...

The GST Council approved the standard of e-invoice in its 37th meeting held on 20th Sept 2019 and the same along with schema has been published on the GST portal. Further, there were workshops (scheduled in 7 Indian cities in the 1st phase) that were conducted by the GSTN wherein the CEO Prakash Kumar was also present to explain and address the concerns of the trade, industry, professionals and the software vendors whose involvement would be prime in complying with the new provisions of...