Dr. Sujit Dutta

Understanding Accrual and Cash Basis of Accounting under PGBP

1 Comment / Indian Direct Tax /

Accrual Basis of accounting is a fundamental accounting assumption for the preparation and presentation of financial statements as per Accounting Standard (AS) 1, disclosure of Accounting Policies. Additionally, Section 128 of the Companies Act,2013 requires maintenance of books of accounts by Companies on the Accrual Basis. Many businesses prefer to use cash accounting because the […]

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Cost of capital and EVA

Cost of Capital and EVA: Tools for Strategic Financial Decisions

Leave a Comment / Finance /

Cost of Capital is the minimum rate of return or profit a company must earn.  It is extremely important to investors and analysts. It’s the cost of obtaining funds, whether through equity or debt and includes the returns expected by shareholders and the interest expenses on debt. Companies look for the optimal mix of financing that provides adequate funding and minimizes the

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PGBP vs Book Profit

PGBP vs Book Profit – Including Cash Disallowance –Section 40A (3)

1 Comment / Indian Direct Tax /

Section 43B of the Income Tax Act provides a list of expenses can be claimed as deductions from business income only in the year of actual payment and not in the year when the liability to pay such expenses is incurred. Section 40A (3) disallows tax deductions on expenses above Rs. 10,000 made in cash in a

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TDS on Salary and Consequences of Non-Compliance

Leave a Comment / Indian Direct Tax /

Good morning, students. This is my second class on TDS, because in our previous session some important questions remained unanswered. Today, we shall clarify them properly. He looked around the class and paused thoughtfully and asked Sweta… what is your question Sweta:Sir, in a company we make payments to contractors, suppliers, transporters and employees. We

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TDS compliance

TDS: An Overview of Understanding Compliance

1 Comment / Indian Direct Tax /

The bell had just rung, but Mohit and Mrinmoy were still seated, flipping through their notes. The topic for the day was Direct Tax Compliance, and both of them looked slightly unsettled. Mohit leaned towards Mrinmoy and whispered: I understand income tax theory, but in a manufacturing company interview, they won’t ask definitions. They’ll ask

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Stamp duty value vs sale price

Stamp Duty Value vs Actual Sale Price: Which One Governs Capital Gains Tax?

1 Comment / Indian Direct Tax /

Stam duty value is the value adopted by the Stamp Valuation Authority (SVA) to levy stamp duty on the registration of properties as guidance value to determine the undervaluation of land or buildings, if any, in the sale agreement. Stamp duty valuation is Important for the seller under income tax laws. Under Section 50C, if

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Regular or Composition? Understanding the Right GST Option

2 Comments / Indirect Tax /

The composition levy is an alternative method of levy of tax designed for small taxpayers. The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. It allows small businesses to: All persons registered under the Composition Scheme shall file Form GSTR-4 every quarter through the GST

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GST returns and reconciliation

Understanding Key GST Returns and the Reconciliation Process

3 Comments / Indirect Tax /

GST reconciliation refers to the act of comparing the GST returns filled by the taxpayer with the financial records of the business. It’s a crucial process for businesses to ensure accuracy and compliance. GSTR-9C is a form for annual GST reconciliation statement filed by applicable taxpayers. Every registered person whose aggregate turnover during a financial year

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