Understanding Indirect and Direct Expenses: Their Impact on Profit and Loss Accounts!
In the complex landscape of business accounting, expenses are a crucial component that determines a company’s profitability and financial health. Among these expenses, direct and indirect expenses play significant roles. Understanding the differences between these two types of expenses is vital for effective financial management, accurate budgeting, and strategic decision-making. This blog explores direct and […]
Understanding ITC on Immovable Property Under the CGST Act: A Supreme Court Ruling
The Supreme Court of India recently clarified the rules for claiming Input Tax Credit (ITC) under the Central Goods and Services Tax (CGST) Act, 2017. This ruling directly impacts businesses that build commercial properties, such as malls and hotels, for renting or leasing. The Issue with ITC for Immovable Property Under the current CGST Act, […]
TDS Entries: How They Affect Accounting
Tax Deducted at Source (TDS) is a vital component of the Indian tax system. Understanding TDS is essential for businesses and accountants because it impacts cash flow, compliance with tax laws, and the accuracy of financial records. This blog will explain what TDS is, its importance, how it affects accounting practices, and how to manage […]
Ensuring Validity of Notices and Orders Without Digital Signatures: What You Need to Know
Taxpayers have expressed concerns about the legitimacy of documents like show cause notices, assessment orders, and refund orders. These documents, available on the tax portal, often don’t display visible digital signatures. This has caused confusion about whether they are officially valid. An advisory issued on September 25th, 2024, addresses these concerns. It clarifies that documents […]
Depreciation on Fixed Assets: How It Affects Accounting
Introduction Fixed Asset Depreciation is a vital accounting process that reflects the gradual decrease in the value of tangible assets over time. This depreciation is crucial for accurately representing a company’s financial health and profitability. In this blog, we will explore a list of fixed assets, categorize them into tangible and intangible assets, and provide […]
Understanding Advance Tax: A Comprehensive Guide
Advance tax is an essential part of income tax management in India. It allows taxpayers to spread their tax payments throughout the financial year rather than making a large payment at the end. This guide will explain what advance tax is, who needs to pay it, important due dates, and how you can pay it […]
Clarification on Place of Supply for Data Hosting Services in India
The Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 232/26/2024-GST on September 10, 2024. It gives clear guidance on the place of supply for data hosting services provided by Indian companies to foreign cloud computing providers. The Problem Businesses have raised concerns about whether data hosting services provided by Indian companies to […]
Income Tax Act, 1961 vs. Direct Tax Code, 2025: What’s Changed and Why It Matters
India is preparing for a significant shift in its tax landscape with the introduction of the Direct Tax Code (DTC) 2025. Back in 2017, the Ministry of Finance formed a task force to draft a new direct tax law. The goal of this law is to simplify tax regulations, expand the tax base, and make […]
How to Make Sure You Get Your Tax Refund Without Any Problems
Filing your Income Tax Return (ITR) can sometimes feel confusing, especially when waiting for a refund. If you’ve paid more tax than you needed to during the financial year, you’re likely due a refund. Here’s a simple guide to help you get your refund smoothly and fix any issues if they come up. Steps to […]
What is Section 194J: TDS on Professional and Technical Services
Section 194J of the Income Tax Act ensures timely tax collection by requiring the deduction of Tax Deducted at Source (TDS) on payments made for professional and technical services, royalties, non-compete fees, and director’s remuneration. The section applies to businesses, corporations, or individuals liable for an audit under the Income Tax Act. Key Payments Covered […]