Latest Blogs from SBS and Company LLP

    Introduction

    As Ronald Regan rightly said, “Trust, but Verify”.The fact that one has to trust beyond oneself is more of a psychological challenge. 

    As per section 143(3)(a) of the Companies Act,2013 the auditor’s report shall also state whether he has sought and obtained all the information and explanations which to the best of his knowledge and belief were necessary for the purpose of his audit and if not, the details thereof and the effect of such information on the financial statements. 

    Section 143(9) stated every auditor shall comply with the auditing standards. 

    INTRODUCTION:

    The Manufacturer or Service Provider buys inputs and capital goods in order to use it for provision of taxable service or for manufacturing the final products. The assessee avails the credit of excise duty on such inputs/ capital goods which is utilised while making payment of output tax as per Rule 4 of CENVAT Credit Rules, 2004. 

    In manufacturing Industry, it is a common practice to remove goods (inputs/capital goods) from factory place without even using it in the manufacturing activity. There could be various reasons for clearing goods as it is from factory place. Few reasons are as follows: 

    1. Assessee buys inputs/ capital goods in order to sell them as it is, at higher amount and make profits, or
    2. The quality of goods might not be up to the mark for using it in manufacturing and so rejected it and return back or sell to another person or the goods might be sold as it is if it is not needed because of change in production plan etc. which occasionally happens; 

    A person may sell his Residential House Property either to construct or acquire a new house property or due to shift of his residence from one place to another place. 

    1. Construct or Acquire New House Property, in this case he might be selling the existing residential property either to construct or purchase a new Residential House Property (or) he might have already started constructing or purchased and selling the existing property for paying back such dues. 
    1. Shift of residence from one place to another place, in this case he is selling the property to buy another property in the place where he is relocating. 

    In the above two cases, the said transaction shall be called as transfer of capital asset and would require the transferor to pay income tax. The article herein makes an effort to dwell upon the aspects of short term capital gain and computation thereof, long term capital gain, its computation and exemptions thereon. 

    Key Topics Covered:

    • Income Tax Act 1961
    • Project Finance
    • Audit
    • FEMA
    • MCA Updates
    • Indirect Tax Updates
    • Interesting Facts

    Key Topics Covered:

    • International Taxation
    • FEMA
    • Audit
    • Direct Tax
    • Indirect Tax
    • Companies Act, 2013
    • FEMA Updates
    • Indirect Tax Updates

    Subscribe SBS AND COMPANY LLP updates via Email!