Why mandating audit trail might increase the compliance burden for businesses


Ease of Doing Business for MSMEs: The Ministry of Corporate Affairs (MCA) is continuously working towards driving transparency and strengthening the integrity of financial reporting in the business. The notification pertaining to the new audit trail rule is a step in this direction. This mandate is expected to be implemented from April 1, 2022, for companies that are registered under the Companies Acts in India. As per the notification “Every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.”

Corporate Laws

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Announcement OFFICE OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA 9


Empanelment of Chartered Accountant firms/LLPs for the year 2024-2025 Online Applications are invited from Chartered Accountant firms/LLPs who desire to be empanelled with the office of the Comptroller and Auditor General of India for the year 2024-2025 for considering for appointment as auditors of Companies as per Sections 139(5) and 139(7) of the Companies Act 2013 and of Statutory Corporations/Autonomous Bodies as per the provisions of their respective Acts. Online application form along with detailed instructions in this regard will be available on the website https://care.cag.gov.in/Authorised/Default.aspx from 05 January 2024 to 15 February 2024. The applicant firms/LLPs will have to fill/update the data showing the status of their firm as on 01 January 2024. After filling/updating the data, the firms/LLPs will be required to generate online acknowledgement letter for the year. If the firms/LLPs fail to generate online acknowledgment letter, their application would not be considered for empanelment. The firms/LLPs will be required to submit a printout of the acknowledgement letter generated online and also hard copies of the documents in support of their online application to this office by 28 February 2024

General

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CBIC notifies special procedure for filing returns for pan masala, tobacco manufacturers Jan 09, 2024


In a move aimed at improving compliance under the goods and services tax (GST), manufacturers of pan masala and tobacco products would have to follow a new procedure for registration and filing monthly returns from April 1.

Based on a decision of the GST Council, the Central Board of Indirect Taxes and Customs (CBIC) has notified a special procedure to be followed by a registered person engaged in manufacturing of these goods for the registration and disposal of packing machines. The move is aimed at assessing the production and packaging facility of such units to ensure correct GST is paid as the sector is seen to be prone to evasion.

GST

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GST authorities drop plans to enforce stricter e-way bill norms Jan 13, 2024


Goods and Services Tax (GST) authorities have dropped a plan to block generation of goods transportation permits, or e-way bills, from 1 March for companies that fail to produce 'e-invoices' for their wholesale transactions through designated portals. These portals aid in more accurate data capturing across various tax forms using a standardized invoice.

GST

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Advisory on introduction of new Tables 14 & 15 in GSTR-1 Jan 16, 2024


As per Notification No. 26/2022 – Central Tax dated 26th December 2022 two new tables Table 14 and Table 15 were added in GSTR-1 to capture the details of the supplies made through e-commerce operators (ECO) on which e-commerce operators are liable to collect tax under section 52 of the Act or liable to pay tax u/s 9(5). These tables have now been made live on the GST common portal. These two new tables will be available in GSTR-1/IFF from January-2024 tax periods onwards. Please click here for the complete advisory.

GST

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Employees' payment for canteen services will not attract GST: AAR Jan 19, 2024


Deducting money from employees' salaries to pay a canteen services provider (CSP) would not attract the Goods and Services Tax (GST), the Gujarat Authority for Advance Rulings (AAR) has ruled.
In a case related to luxury kitchen and bath fixtures brand Kohler India Corporation, the AAR ruled that input tax credit (ITC) would be given to the company for GST paid on payment to a CSP for non-contractual employees.

GST

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Lessor has to pay GST on rent if property is used for commercial purposes Jan 19, 2024


The Rajasthan bench of the Authority for Advance Rulings has held that GST (Goods and Services Tax) is applicable on the rent if a residential property is used for commercial purpose by a lessee (who is registered for GST purposes).
In the case of Deepak Jain (the applicant) who had leased out his property to a private limited company, which was engaged in back-office operations, the AAR observed that, up to July 17, 2022, renting of residential dwellings for use as a residence was exempt from GST, while renting for commercial use was taxable at 18%.

GST

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Advisory on Payment through Credit Card (CC)/Debit Card (DC) and Unified Payments Interface (UPI) Jan 20, 2024


To facilitate the taxpayer registered under GST with more methods of payment, two new facilities of payment have now been provided under e-payment in addition to net-banking. The two new methods are Cards and Unified Payments Interface (UPI). Cards facility includes Credit Card (CC) and Debit Card (DC) namely Mastercard, Visa, RuPay, Diners(CC only) issued by any Indian bank. Please click here for the complete advisory.

GST

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