What is cost optimization?
Cost optimization is the process of finding the most cost-effective way to accomplish a particular goal or task. It involves identifying ways to reduce costs without sacrificing quality or efficiency. Cost optimization can apply to a wide range of industries and activities, from manufacturing and supply chain management to software development and cloud computing.
Generally, bonds are issued at face value and a fixed interest is paid on them. But in case of Zero-Coupon Bonds (ZCB), no interest is paid to the holder. Rather, such bonds are issued at a heavy discount on the face value of the bond. On maturity, the bondholder gets back the face value of the bond. These bonds are therefore, also known as ‘Discount Bonds’. For example: - Suppose Face Value of the bond is Rs. 150 to be matured after 5 years. It is issued at Rs. 100. Thus, the bondholder initially pays Rs. 100. After 5 years, he will get back Rs. 150
The Limited Liability Partnership (LLP) is a business structure that merges the characteristics of a conventional partnership with limited liability. The LLP is regulated by the Limited Liability Partnership Act of 2008.
“Cash is king” still holds. But how do you use cash to analyze your company’s financial health? Consider these seven ratios:
This is to update you regarding the 49th GST Council Meeting concluded on February 18, 2023. Kindly note that the below proposals/ recommendations shall be given effect by way of issuance of relevant notifications/ amendments in the GST law, which could be issued in due course of time.
· In 2023 at Portugal, companies must print ATCUD and QR codes on all their invoices. They will need valid codes from the government and tax authority-certified software before they can start generating the invoices.
This Tax Alert summarizes the key amendments made to the Income Tax Return (ITR) forms for tax year 2022-23, vide Notifications No. 4 and 5 of 2023 dated 10 and 14 February 2023 (Notifications) issued by the Central Board of Direct Taxes (CBDT).
GST is payable only if the aggregate turnover including exempt supplies like property tax and water tax and also third-party goods/ services exempt up to Rs 7500 per month per member exceed Rs 20 Lakhs annually. Even in cases where the monthly receipts are below Rs 7,500 but the annual turnover of the society crosses Rs 20 Lakhs, in such cases GST is payable. Tax is payable at @18% on the entire taxable proceeds. For example, in cases where monthly proceeds exceed Rs 8000, GST is payable on the entire 8000 Rs and not just on 500 Rs as clarified by CBI&C circular dated 22-7-2019. Corpus, contribution to repair fund, and sinking fund collections are viewed as advance for future contingencies which may lead to the rendering of services and hence may be argued as taxable. There are few contrary advance rulings where the view taken is that these do not lead to a supply of services and hence should not be taxable. Many societies contribute heavily to repair funds to be future ready and as such, there is no service involved by way of value creation/addition. Also if we compare this entry on the monthly maintenance bill with others, all the others that are taxable also have associated input tax credit opportunity. Since this is merely a deposit, taxing this would mean taxing non-profit making societies @18 % without any input tax credit which seems unfair. Since the corpus and sinking fund contributions are mandatory in nature, taxing these would mean it is mandatory to pay 18% tax on the members own funds. It would still be acceptable if the interest earned by society from the repair and sinking fund deposit are charged GST instead of the principal.
1. Goods or services brought should only be used for further business purposes.
2. Buyer shall retain such tax invoice, debit note, or other documents as evidence of such payment.
3. Such tax invoice or debit note is filed by the supplier in Form GSTR-1, and it appears in the Buyer’s GSTR-2B form.
4. The goods or services must have been delivered to the buyer.
5. The buyer must furnish the GST returns in Form GSTR-3B.
6. Where the goods are received in lots or installments, ITC will be allowed to be availed when the last lot or installment is received.
7. The buyer must pay towards the supply of goods and/or services within 180 days from the invoice date. If they fail to do so, then the ITC already claimed will be added back to output tax liability and interest must be paid on such tax. ITC claim will be reinstated once the payment is made to the supplier.
8. If depreciation has been claimed on the tax portion of a capital goods (Assets) purchase, no ITC will be permitted.
9. Input tax credit can be claimed only before 30th November of the following year or before the filing of Annual GST returns whichever is earlier. That means to avail of the Input tax credit for Financial Year 2022-23, ITC for this year can only be claimed on or before 30th November 2023.
10. If Goods are lost or stolen or confiscated after the purchase, then ITC on such inward supply of goods are not eligible for an Input tax credit.
The mission of an in-house tax department is to ensure compliance with all tax laws and regulations, minimize tax liability, and identify and manage tax-related risks.
The vision of an in-house tax department is to become a trusted partner to other departments within the company and provide strategic tax planning guidance to help the company achieve its business goals.
The Finance Act, 2016 introduced Equalisation Levy (EL) at the rate of 6 per cent on the amount of consideration for online advertisement, any provision for digital advertising space or any other facility or service for the purpose of online advertisement with effect from 1 April 2016. This EL is applicable on the consideration received by a non-resident, from a person resident in India and carrying on business or profession or a non-resident having a Permanent Establishment in India.
Personal
Tax
Γ No change in tax rate under the old
regime.
Γ Receipts from Life insurance are
taxable if the gross annual premium payment exceeds Rs. 5 Lakhs. The net amount
is taxable under the head Income from other sources for new policies taken
after March 23.
Γ Limit of Leave encashment of Rs. 3 Lakhs increase to Rs. 25 Lakhs. (to be verified not available in the Memorandum but was there in the budget speech)
