1. What is the Anti-Profiteering Law under GST? The anti-profiteering mechanism under the Goods and Services Tax (GST) was introduced to ensure that businesses pass on the benefits of: Reduction in GST rates , and Input Tax Credit (ITC)  availability to consumers through  commensurate price reductions . In simple terms: ➡ If your tax cost goes down under GST, your selling price should also go down . 2. Legal Framework The anti-profiteering provisions are contained in: Sectio

Faceless Assessment Section 144B was introduced by the Finance Act, 2020. According to this section: The Central Government shall notify a faceless assessment scheme. Assessment shall be carried out through electronic mode. Multiple specialized units shall be involved. No personal appearance is required unless permitted through video conferencing. All communications must be through the designated portal. This section ensures that assessments are conducted in a standardized an

Definition of Gratuity Gratuity is a lump-sum monetary benefit paid by an employer to an employee as a reward for long-term and continuous service. It is a statutory benefit governed by the Payment of Gratuity Act, 1972. An employee becomes legally entitled to gratuity after completing a minimum of five years of continuous service with the same employer. Gratuity is generally payable upon retirement, resignation, death, or permanent disability. Eligibility and Application of

Introduction Input Tax Credit (ITC) is a fundamental feature of the Goods and Services Tax (GST) regime. It enables registered taxpayers to reduce their output tax liability by claiming credit of GST paid on inputs, capital goods, and input services used during business. However, to curb tax evasion and fraudulent practices, the GST law empowers tax authorities to restrict the use of ITC in certain cases. One such provision is Rule 86A of the CGST Rules, 2017 , which

Section 185 – Loans to Directors Section 185 is designed to prevent companies from giving undue financial benefits to their directors or persons closely connected to them. It promotes corporate governance and avoids conflicts of interest. Key Provisions (After Amendments) 1. Absolute Prohibition A company cannot directly or indirectly : Give loans, Provide guarantees, or Provide security for any loan Any director of the company , Any director of its holding company , Any part

1.    Introduction The Equalization Levy is a direct tax introduced by India to tax income accruing to non-resident companies from digital transactions with Indian customers or users, where the non-resident does not have a permanent establishment (PE) in India. It is contained in Chapter VIII of the Finance Act, 2016, and related rules, rather than the Income Tax Act, 1961, itself, but interacts with it via Section 10(50). 2.     Objective Tax digital transactions where the i

Introduction The Companies Act, 2013 introduces the concept of a Small Company  to encourage entrepreneurship and reduce the compliance burden on smaller businesses. By offering various exemptions and simplified procedures, the Act supports ease of doing business and ensures that small enterprises can operate efficiently without excessive regulatory strain. Definition of a Small Company According to Section 2(85) of the Companies Act, 2013, a small company is a company other

Managing finances effectively is crucial for any business aiming to grow and sustain itself in a competitive market. Proper financial management helps businesses allocate resources wisely, control costs, and maximize profits. This article provides practical tips and insights to help you master financial management and make informed decisions that drive success. Understanding the Basics of Financial Management Financial management involves planning, organizing, directing, and

Tax-saving is an important part of financial planning. An intelligent tax-planning strategy can serve the dual objective of helping...

ALL individuals or HUFs (except those liable to Audit u/s 44AB) and paying monthly rent to a resident above Rs. 50,000 are liable to...