Professional Updates

The key difference between Section 9(3) and Section 9(4) of the Central Goods and Services Tax (CGST) Act, 2017 In the context of GST, Reverse Charge Mechanism (RCM) is indeed a key concept. It shifts the liability to pay tax from the supplier to the recipient of goods or services, under specific conditions. Here is the differentiation between the sections 9(3) & 9(4): Aspect Section 9(3) Section 9(4) Application Specific categories of supply of goods or services or both Specific class of registered persons receiving goods/services from unregistered suppliers Notification Government notifies specific categories of supplies on the recommendation of the Council Government notifies specific classes of registered persons on the recommendation of the Council

A New TDS Requirement for Partnership : 194T The recent amendment to the Income Tax Act, India, introduced a new section, 194T, effective from April 1, 2025. This section mandates the deduction of tax at source (TDS) on certain payments made to partners of firms. Let's delve into the details of this new provision and its potential implications for partnerships. Key Provisions of Section 194T Scope: The section applies to any firm responsible for paying sums to its partners in the nature of salary, remuneration, commission, bonus, or interest. Tax Deduction: At the time of crediting such sums to the partner's account (including the capital account) or at the time of payment, whichever is earlier, the firm must deduct income tax at a rate of 10%. Exemption: The deduction is not required if the total or aggregate sums credited or paid to the partner during the financial year do not exceed ₹20,000 . Implications for Partnerships Increased Administrative Burden: Firms will need

Everything You Need to Know About PPF Account 1. What is the Public Provident Fund (PPF) Scheme? The PPF Scheme is a government-backed savings scheme aimed at providing long-term investment options for individuals, offering tax benefits and a fixed rate of interest. 2. Who can open a PPF account? Any individual can open a PPF account in their own name or on behalf of a minor or a person of unsound mind for whom they are the guardian. 3. How many PPF accounts can an individual open? An individual can open only one PPF account in their own name. They can also open one account on behalf of each minor or person of unsound mind for whom they are the guardian. 4. Can a joint PPF account be opened? No, joint accounts are not allowed under the PPF Scheme. 5. What is the minimum deposit required to open a PPF account? The minimum deposit required to open a PPF account is ₹500. 6. What is the maximum deposit limit for a PPF account in a financial year? The maximum deposit limit is ₹1,50,000 in

All about Limited Liability Partnership Audit Report Audit Requirements under LLP Act, 2008, and Rules thereunder for the FY 2023-24 LLP Act 2008: Mandates that LLP accounts be audited in accordance with the rules prescribed under the LLP Rules 2009. LLP Rules 2009: Rule 24 outlines the requirements for LLP audits, including the exemption for LLPs with turnover below 40 lakhs or contribution below 25 lakhs. Proviso to Rule 24: Allows LLPs with turnover or contribution below the specified limits to opt for an audit if their partners decide to do so. Auditing Standards: Auditors of LLPs must adhere to the Auditing Standards issued by the Auditing & Assurance Standards Board of ICAI. Therefore, LLPs in India are generally required to have their accounts audited, with certain exemptions for smaller LLPs. The audit must be conducted in accordance with the prescribed rules and auditing standards to ensure the accuracy and reliability of the financial statements.  For your ease refere

All about minutes of the board meeting Minutes of Board Meetings serve as a vital record of the discussions, decisions, and actions taken by a company's board of directors. These documents provide essential evidence of the proceedings and help ensure transparency, accountability, and compliance with corporate governance regulations. Here is the summary of provisions related to minutes of the board meeting and summary of the Secretarial Standard-1 (SS-1) on “Meetings of the Board of Directors Maintenance of Minutes: Dedicated Minutes Book: A separate Minutes Book should be maintained for Board Meetings and each Committee. Physical or Electronic Form: Minutes can be kept in physical or electronic format, adhering to prescribed guidelines and Board decisions. Consecutive Numbering: Pages of Minutes Books must be consecutively numbered, regardless of binding or electronic format. Loose-leaf : Minutes Books, if maintained in loose-leaf form, shall be bound periodically Security

Not All Indian Residents Need a Tax Clearance Certificate Understanding the Rumor After the The Finance (No.2) Act, 2024 there has been a widespread misconception that all Indian citizens must obtain a tax clearance certificate (ITCC) before leaving the country. This rumor has been circulating, causing unnecessary anxiety and confusion among travelers. The provision requiring a tax clearance certificate in certain circumstances has been in place since 2003. The recent amendment introduced by the Finance (No. 2) Act, 2024, specifically focuses on expanding the scope of the ITCC requirement to include liabilities under the Black Money Act. The Truth: Limited Scope of ITCC Requirement Contrary to popular belief, as clarified by the income tax department the ITCC requirement is not a blanket rule applicable to all Indian residents. In reality, only a specific subset of individuals need to obtain this certificate. According to Section 230(1A) of the Income Tax Act, 1961, an ITCC is required

Independent auditors report for the FY 2023-24 Everyone is talking about amendments in schedule III & CARO however most of those are not highlighting changes in  Independent Auditors Report . Though changes are small but can result into significant risk of negligence. First I would like to request every one kindly read entire independent audit report for every auditee.  At least read what you are signing and what would be the implications. I have seen audit reports for the FY 2022-23 which are not referring to the The Companies (Accounting Standards) Rules, 2021. MCA already prescribed accounting standards w.e.f. 01/04/2021. But as usual  due to "Ctrl C+ Ctrl V" same is not reflecting  in the independent auditors report and reference to old rule of 2006 is given. Also some of us not inserting new para under rule  Rule 11 of the Companies (Audit and Auditors) Rules, 2014. This year reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules 2014 is also mandator

Maharashtra minimum wages July 2024 The Minimum Wages Act is applicable to any establishments / industries / factories / employment either registered under the shops & establishment Act or the Factories Act,  irrespective to the strength of employment . That is even if anybody  employs an one employee he has to pay Minimum Wage .  The term Minimum Wage includes the Basic Wage plus Special allowance, as prescribed & published by Labour department, time to time for a given schedule of employment. Brief summary of the Minimum Wages Act in Maharashtra for easy understanding: Maharashtra minimum wages are set by the state government and can vary depending on the type of work and the skill level required. The minimum wages in Maharashtra are reviewed and revised periodically by the state government. The wages are determined by the labor department and relevant authorities. Employers in Maharashtra are legally required to pay their employees at least the state-mandated minimum wage. F