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    What is Fixed Assets?

    FixedAssets are defined as the Assets held with the intention of being used for the purpose of producing orproviding goods or services and is not held for sale in the normal course of business. 

    Whichare expected to be used for moret han 1 accounting period. Some of the Examples are: 

    • Buildings o Furniture 

    o Machinery & Equipment o Computer 

    o  Vehicles. 

    Audit Objective: 

    Toensure Proper records relating to Fixed Assets are being maintained vToensure that only capital Expenses are being capitalized 

    ToValidate the correctness, accuracy and completeness of depreciation calculated and compliance of schedule II of Companies Act, 2013. 

    Compliance of relevant Accounting Standards/IND AS applicable. vCompliance of disclosure requirements as per schedule III of Companies Act,2013

    TOPICS TO BE DISCUSSED

    Tax deducted at Source:

    • On Sale of Immovable Property u/s 194IA.
    • On Interest other than Interest on Securities  u/s 194A

     

    Sec 194IA- TDS on Sale of Immovable Property

    • Transferor: Who is a Resident seller (Deductee).
    • Transferee: Who is a Buyer (any person) (Deductor).
    • When transferee is responsible for paying to a transferor any sum by way of sale consideration for transfer of an immovable property, shall,
    • at the time of credit of such sum to the account of the transferor (or) at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier,
    • TDS Deducted@1%
    • Where such sale consideration is equal to or more than 50 Lakhs.

    Brief about GST

    Applicability of Goods and Services Tax

    Types of GST

    Understanding of GST

    Payment of Goods and Services Tax

    Reverse Charge for Specified Services

    Requirement of Registration

    Composition Scheme

    Valuation of GST

    Returns under GST

    Credits under GST

    1. What is Advance Ruling?

    Advance ruling a mechanism prescribed under a taxing statute to seek clarity on applicability of respective tax. Such rulings or decisions are obtained in advance prior to undertaking a transaction by making suitable applications before the prescribed authorities. Under GST, advance ruling can be sought on any of the following matters;

    1. Classification of goods or services or both
    2. Applicability of a notification issued under the provisions of GST Law
    3. Determination of time and value of supply of goods or services or both
    4. Admissibility of Input Tax Credit of tax paid or deemed to have been paid
    5. Determination of liability to pay tax on any goods or services or both
    6. Whether registration is required
    7. Whether anything done with respect to goods or services or both amounts to or results in supply of goods or services or both. 

    1. What is Composition Scheme under GST?

    Composition scheme under GST is an optional levy provided to the manufacturers, traders and Restaurants to opt for composition scheme whose aggregate turnover in the previous financial year does not exceed Rs. 100 Lakhs which leads to reduction of compliances for small scale businesses i.e. maintenance of books of accounts, issuance of invoices, furnishing of returns etc and to pay a fixed percentage of turnover as tax in lieu of paying taxes at higher rate. In case of suppliers located in special category states, the turnover limit to opt for composition scheme is Rs. 75 lakhs. 

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