Thin capitalization arises when a company is financed through a relatively high level of debt compared to equity. In general, companies employ a mix of […]
Understanding Revenue Recognition Under Ind AS 115 and When to Defer Revenue
Revenue recognition is one of the most critical aspects of financial reporting. It determines when and how much revenue should be reported in the financial […]
Understanding ‘Accumulated Profits’: A Source of Persistent Controversy
The term “accumulated profits” holds critical importance in the realm of income tax, especially concerning the taxation of dividends under the Income-tax Act, 1961. The […]
Why GSTR 2A Alone Cannot Justify Tax Recovery
The GST regime in India introduced a self-assessment model wherein the registered taxpayers could claim input tax credit based on their inward supplies. However, confusion […]
The Growth of Startups in India: Evolution, Incentives, and Tax Relief
A startup company or startup is a business started by founders or entrepreneurs to explore a repeatable and scalable business model. Typically built around innovative […]
Empowering Small Businesses: Aligning Growth with the Ease of Doing Business Reforms
A small company is a specific class of company defined under section 2(85) of the Companies Act, 2013. The definition of a small company has […]
TDS Under Section 194T: Tax Deduction on Partner Payments Explained
Section 194T has been introduced to ensure tax deduction at source on certain payments made by firms to their partners. Previously, there was no requirement […]
Accounting for Interest: A Practical Approach
Interest, as recognized in financial statements, can either be an item of income or an item of expense. The accounting treatment for each differs depending […]
Understanding Taxation of Fees for Technical Services Under the Income Tax Act
Section 9(1) of the Income-tax Act enumerates incomes deemed to accrue or arise in India, and clause (vii) deals specifically with fees for technical services. […]
Understanding Registration Requirements for Charitable and Religious Trusts under Section 12AB
Section 12A(1) of the Income-tax Act, 1961, lays out the preconditions that must be fulfilled by any charitable or religious trust to claim tax exemptions […]
Standard Costing Demystified: A Complete Guide to Cost Control and Variance Analysis
In historical costing, the costs are determined only after they have been incurred. This system accumulates expenses for materials, labor, and overhead systematically. Amounts spent […]
Understanding Liaison, Branch, and Project Offices in India
When a foreign entity plans to enter a new territory, it generally seeks to assess the business environment, market potential, product acceptability, and socio-economic factors […]
Simplified Taxation for Small Businesses: A Guide to Section 44AD
Section 44AD of the Income-tax Act was introduced to ease the compliance burden on small businesses by allowing them to declare income on a presumptive […]
Ind AS 105 Explained: Discontinued Operations and Sale of Subsidiaries
Ind AS 105, titled Non-current Assets Held for Sale and Discontinued Operations, governs the accounting treatment and presentation of non-current assets and disposal groups that […]
Understanding the Impact of Government Policies on Business Development
Every nation defines its governance approach through several public policies. Public policy is an institutionalized plan created to solve real-world problems. These plans are implemented […]