CA KAMAL GARG

Accounting Treatment in case of goods received in lots / batches As per Section 16(2), “No registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,–– a.      he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; b.      he has received the goods or services or both.” The credit of tax is to be booked only when the above two conditions are satisfied i.e.  the recipient is in possession of the tax invoice or the debit note issued by the supplier and  has received the goods or services or both. In certain cases, goods are not completely received; for example, in case the goods are received in more than one consignment under a single invoice; in such case, the credit booked shall be restricted upto the amount of goods received. However, as per Proviso to Section 16(4), where the goods against an in

    Bank Guarantee A bank guarantee refers to a promise provided by a bank or any other financial institution that if a certain borrower fails to pay a loan, then the bank or the financial institution will take care of the losses. The bank will assure the original creditor through this bank guarantee that if the borrower does not meet his or her liabilities, then the bank will take care of them. An important criterion for judging the soundness of a banking institution is  the size and character, not only of its assets portfolio  but also, of its contingent liability commitments such as guarantees, letters of credit, etc.    As a part of business, banks issue guarantees on behalf of their customers for various purposes.  The guarantees executed by banks comprise both performance guarantees and financial guarantees. The guarantees are structured according to the terms of agreement, viz., security, maturity and purpose. With the introduction of risk weights for both on-Balance Sheet and o

Any payment or any remittance done to a Non-resident is subject to many rules and regulations.  Section 195 of the  Income tax act, 1961  makes it compulsory to deduct the Income-tax from payments made to Non-Resident . The purpose of deduction of Income Tax at source and its subsequent reporting is to ensure that taxes are collected on time. It is  the responsibility of t he Payer (Payer is the person who is responsible for making any payment  or any  remittance to Non-resident)   to furnish a Form 15CA and Form 15CB .  The Form 15CB regulates the tax deduction as per the income tax rules and also prohibits the double tax provision. The filing of Form 15CB requires an attestation from a Chartered Accountant. So when a person has to make any payment or remit any money to non-resident, the bank will have to verify the payment of tax and act accordingly . Form 15CA A person making the remittance (a payment) to a Non Resident or a Foreign Company has to submit the form 15CA. Form 15CA i

The Gujarat bench of the Advance Authority Ruling (AAR) recently held   That corporate social responsibility (CSR) activities under the Companies ( Policy) Rules are excluded from the normal course of business . The applicant was a private limited company, Adama India. The AAR said Adama India would not be eligible for GST Input Tax Credit under Goods and Services Tax (GST) laws.  If this ruling is followed by GST authorities during assessments, it will be a big blow to Indian Incorporations which, in the backdrop of the pandemic, has spent heavily on CSR activities, such as providing medical relief by way of oxygen concentrators & sanitizers, to name a few instances.  This is another classic case of divergent views on the same issue taken by two different benches of the AAR.  Earlier, the ruling given by the Uttar Pradesh (UP) bench of the AAR in the case of Dwarikesh Sugar Industries . In this case, the AAR bench had held   That CSR expenditure is incurred by a company to compl

Contents 1. Introduction 2. Definition of Startup 3. Stages of Funding 4. Benefits of Venture Capital Investors (VCs) to Startups Introduction In August 2015,  The Hon’ble Prime Minister , Shri Narendra Modi, announced   The launch of the national flagship initiative – Startup India ,  with a mandate to promote and encourage young entrepreneurs of our country .  With the aim of the initiative to transform India into a Startup nation, “ a country of job creators instead of job seekers ”.  In the initial stage of business, products are generally untested and do not have an established market. Operations of firms are at a small level with no operating history and no comparable firms.  The value of a Startup rests entirely on its future growth potential, which, in many cases is based on an untested idea and may not have been based on an adequate sampling of consumer behavior or anticipated consumer behavior. The estimates of future growth are also often based upon assessments of the

Please do not to respond to missed calls from unknown international numbers with prefix other than +91 or calls/SMS about winning prizes/ lottery as these may be fraudulent calls. Do not click on suspicious link or download App which promises fake part/full time jobs. Never pay any money or install any app upon request by unknown/ suspicious person over call. Do not scan any QR code received from any unidentified source. It can lead to unauthorized debit of money from your account. साइबर अपराध की शिकायतों की रिपोर्ट गृह मंत्रालय के राष्ट्रीय साइबर अपराध रिपोर्टिंग पोर्टल (https://cybercrime.gov.in) पर करें । केवाईसी (KYC) बैंक खाता रोकने या बंद करने के बारे में धोखाधड़ी वाले एसएमएस और कॉल से सावधान रहें। कोविड-19 वैक्सीन पंजीकरण लिंक प्रदान करने का दावा करने वाले झूठे एसएमएस से सावधान रहे । Be cautious while responding to missed calls/SMSs from unknown international numbers to avoid fraud and higher call charge

Contents: 1. Introduction 2.  Due Dates for  Income Tax Return filing 3. Belated Income Tax Return filing - Missed  filing Income Tax Return within the Due Date 4. Other Important Questions Introduction It is very important for all the taxpayers to file their Income tax return within the Due Date specified in the Income Tax Laws.  The due date varies on the basis of taxpayers.    The due date for filing Income Tax Returns is the date by which the returns can be filed without any late fee or penalty.  The taxpayers filing their return beyond such due date will have to pay interest under section  234A, 234B, 234C  and penalty under section  234F . Income Tax Return filing Due Dates for the FY 2020-21 (AY 2021-22) 1. Individual / HUF/ AOP/ BOI  (books of accounts not required to be audited)       Due Date - 30th Sep 2021  (extended from 31st July)       Applicable to - All salaried persons, persons opted for presumptive taxation etc. 2. Businesses (Requiring Audit)         Due Date -   30

To Ensure that there are no major / material misstatements, It is important to check compliance with GST laws and rules even during the finalization of the Financial Statement. An important list of reconciliations is given below:  Balance of Electronic Credit ledger with Balance of Input Tax credit (ITC) in Books of Accounts  Balance of Electronic Cash ledger with Balance of excess cash paid in Books of Accounts  GST paid in cash in March return, with GST Payables as per Books of Accounts  Refund claimed in GST portal with ITC refund receivable in Books of Accounts  Output Liability in GST returns with Books of Accounts  ITC Reconciliation in FORM GSTR-2A/ 2B with FORM GSTR-3B and Books of Accounts  ITC reversed in FORM GSTR-3B with Books of Accounts  Ineligible ITC in FORM GSTR-3B with Books of Accounts  Reconciliation of Gross Turnover in Books of Accounts with FORM GSTR-1, e-Way Bills and FORM GSTR-3B  Reconciliation of accounts of the suppliers  Adjustments of previous year, do

Q 1. When the goods of the principal are directly sent to the premises of the job worker, whether ITC can be taken by the said principal?   Ans.  Yes.  As per section 19 (2)  The principal shall be entitled to take ITC on inputs,  even if the inputs are directly sent to a job worker for job work without being first brought to his place of business.  The principal should avail the ITC based on proper tax invoice as issued under section 31 when the goods are delivered at the premises of the job worker by the supplier.  Q 2. What is the time limit for claiming ITC on capital goods sent from the principal’s place of business to job worker for job work?   Ans.  As per section 19 (4)  subject to such conditions and restrictions as may be prescribed (Rule 45),  The principal shall be entitled to take ITC on capital goods sent to a job worker for job work.  As per section 19(5)  Notwithstanding anything contained in section 16(2)(b),  The principal shall be entitled to take ITC on capi

  Content 1. What is Mutual Fund (MF)? 2. Types of Mutual Fund 3. Mutual Fund Schemes as per SEBI 4. Who should Invest in Mutual Funds? 5.  Benefits of Investment in Mutual Funds 6. Risks of Investment in Mutual Funds 7. How to Invest in Mutual Funds? 8. Other Important Questions 9. Special consideration for First Time Investors *** What is Mutual Funds *** Mutual Fund is a professionally managed company (Created with an objective of Investment )  that  pooled investment  ( collects money ) from many investors  , provide shares / units to its investors and  Invests the money received from investors in the securities such as stocks, bonds etc. to generate incomes for the investors . The Investments of the mutual fund are known as Portfolio .  The Portfolio of mutual fund is structured and maintained to match the investment objectives of the investors with the objectives of mutual fund .  Mutual funds are operated by  Fund Managers  (P rofessional  e xperts ).   Fund managers manage