Simplifying tax, finance, corporate law concepts
Meaning The Doctrine of Unjust Enrichment means one person is unfairly benefitting on the expenses of another. This doctrine stops taxpayers from getting extra money or benefits that they actually deserve. Example: Ram paid extra ₹1,000 as GST due to clerical error and ram applied for refund expecting that money will be credited to his…
What is Reverse Charge Mechanism (RCM) in GST? Generally, the supplier of goods or services is liable to pay GST. However, notified goods and services on which GST is paid by the recipient directly to the government which is called reverse charge mechanism (RCM). Under the principle of indirect tax, the burden of tax has…
What is supply under GST? Under the Goods and Services Tax (GST) supply means a taxable event. Taxable event means any transaction that results in tax consequences. Supply includes any transaction such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agree to be made of goods or services for a consideration…
Understanding Transfer in Capital Gains Section 2(47) As per section 45 of Income Tax Act, 1961, any profit or gains arise on transfer of capital asset is taxable under the head capital gains. This section emphasizes more on two important terms i.e. capital asset and transfer. Capital asset is defined under section 2(14) and transfer…
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What are capital gains? As per the provisions of Section 45 of Income Tax Act 1961 any profits or gains arising from transfer of a capital asset will be chargeable to income tax under ‘Capital Gains’. Such capital gain will be deemed to be the income of the year in which the transfer took place….
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When was GST first introduced in India? In 2000, the then Prime Minister considered the idea of GST and set up a committee to design the GST service model for the country. The government formed a task force in 2003 which in 2004 strongly recommended to implementation of a fully integrated ‘GST’ on a national…
Importance of an Audit Checklist What is an Audit Checklist An audit checklist is a document or tool that helps auditors to ensure that all the key areas to review and all necessary steps and procedures are followed during an audit. It as a roadmap which will guide you through the auditing process. It includes…
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What are Mergers and Acquisitions (M&A)? Where two or more companies merged and form a single entity or where one company purchases and absorbs another company is known as merger and acquisition. In case of merger when two companies join together to combine resources and expertise for mutual benefit and form a new company. The…
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Introduction Permanent Account Number (PAN) is an alphanumeric identifier consisting of 10 digits. The fourth character of the PAN indicates the cardholder’s status, such as ‘P’ for individuals, ‘C’ for companies, and so on. It is not permissible for one person to hold two PAN cards. The government, through the Income Tax Department, utilizes PAN…
Introduction Tax is a mandatory charges levied or imposed by the government on individuals, corporates, Hindu undivided family, Partnership Firms and various other entities. The revenue generated from these taxes is utilized by the government to finance public services, infrastructure project and government operations, ensuring the welfare and development of the country. Understanding the tax…