Year: 2025

Unlocking Financial Stability: Understanding Section 43B(h) of the Income Tax Act The introduction of Section 43B(h) in the Income Tax Act by the Finance Act of 2023 marks a significant step towards enhancing the financial health of Micro and Small Enterprises (MSEs) in India. This provision is designed to ensure timely payments from larger businesses […]

📢 Important Update: Half-Yearly Return Submission to MCA All companies must now submit a six-monthly return listing MSME suppliers whose payments have been delayed beyond 45 days. This initiative enhances transparency and accountability in business transactions. ⚠️ Note: This does NOT affect the MSME-1 Return, which is still required for the period of October to […]

Additional depreciation is a tax incentive provided under Section 32 of the Income Tax Act, 1961, aimed at encouraging businesses to invest in new machinery and equipment. This additional depreciation allows businesses to claim an extra percentage of depreciation on top of the regular depreciation for eligible assets. Key Features of Additional Depreciation Eligibility Criteria: […]

Introduction Input Tax Credit (ITC) plays a crucial role in the GST regime by reducing the tax burden on businesses. However, not all ITC is eligible for claim. Certain ITC amounts are either blocked under Section 17(5) of the CGST Act or considered ineligible due to non-compliance with GST provisions. Proper treatment of Blocked and […]

Mandatory ISD Registration under GST from April 1, 2025 Understanding Input Service Distributor (ISD) An Input Service Distributor (ISD) is an office within a business that receives invoices for input services used across multiple branches and distributes the corresponding Input Tax Credit (ITC) under the same Permanent Account Number (PAN). This mechanism ensures proper allocation […]

Input Tax Credit (ITC) is a pivotal component of India’s Goods and Services Tax (GST) framework, designed to mitigate the cascading effect of taxes by allowing businesses to offset the tax they pay on inputs against the tax they collect on outputs. Detailed Analysis of Blocked ITC Categories Section 17(5) of the CGST Act specifies […]

What is Director KYC? Director KYC involves verifying the identities of a company’s directors. This process helps ensure that the individuals responsible for running the company are who they claim to be. Key components include submitting personal information, identification documents, and proof of address. Why is Director KYC Important? Ensuring Transparency Transparency is vital for […]

Introduction The Indian government has announced significant changes to the classification of Micro, Small, and Medium Enterprises (MSMEs) effective from April 1, 2025. These updates aim to foster growth and innovation within the MSME sector, which is a vital component of the Indian economy. Revised MSME Classification Criteria In the Union Budget 2025, Finance Minister […]

Introduction In the realm of Goods and Services Tax (GST), Input Tax Credit (ITC) serves as a pivotal mechanism enabling businesses to offset the tax they’ve paid on inputs against their output tax liabilities. However, to maintain the integrity of this system, specific conditions govern the availing and retention of ITC. One such critical condition […]

Internal Audit Definition: Internal Audit is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by systematically evaluating and improving the effectiveness of risk management, control, and governance processes. Aspect Description Definition Independent, objective assurance and consulting activity aimed at improving […]