LAW@GLANCE

  An auditor being a person responsible to verify and scrutinize the information and report thereupon as to its truthfulness to various stakeholders, is obliged by stringent guidance notes and pre-defined procedures/systems, so as to discharge their duty. Thus, they have to make sure that any engagement that they are taking up as a professional be it involving auditing or simply assurance, be must executed in line with the standards set out by relevant regulatory body. We shall here take a brief understanding of one such standard i.e. ‘SA-300 Planning an Audit of Financial Statements’, laying down roadmap on procedures to be undertaken and aspect to be specially paid attention to post accepting any fresh audit engagement, however before initiating the engagement. Topics covered in this article: ·        Scope & Objective ·        Human Resource Planning ·        Preliminary Engagem...

What is Impairment? Why IND AS 36 was introduced? Which assets be traced for impairment and how frequently? What be the criteria for- Recognition of Impairment? Reversal of Impairment?   Meaning of Impairment: In general terms impairment is a scenario when realizable value of an asset is found less than the book value said asset. There could be many reasons responsible for such asset value depletion/impairment such as obsolescence/physical damage of asset, technological advancement leading to downturn of old machinery and many more.   Objective of introducing IND AS 36: -         To prescribe a method that an entity can opt for to ensure that its assets are not carried at more than their recoverable amount i.e. higher of fair value less cost of disposal or value in use. -         For purpose of this the value in use refers to nothing but the present value of expected cashflow of ass...

Once we file income tax return, all we believe is that the compliance of reporting income ends with this. But in reality, this the very point where the whole processing begins. Once we report our income, now the departmental authorities actually begin to verify the data/details reported by an us and if any discrepancy is identified therewith then the authorities/officers may call for information/documentary records relied upon to report the income details. 1. Who can issue notice u/s 142? 2. When can a notice be issued u/s 142? 3. What further actions be taken by A.O.? 4. What to do when notice is issued u/s 142?   Section 142(1) Income Tax Act, 1961: Who can issue notice u/s 142? Notice for initiating inquiry assessment u/s 142 can be issued by Assessing Officer. However, A.O. can issue such notice only after obtaining due approval from Joint Commissioner. When can a notice be issued u/s 142? Only if any of the below mentioned condition is getting satisfied the...

Section 143: Return Processing and Scrutiny Assessment While as taxpayers we try our best to be compliant with the tax and fiscal laws prevalent in the country, but many times we end-up into litigation trouble due to various kind of scrutiny proceedings being initiated by the income tax authorities. Most of the times such proceedings seem to be cumbersome due to lack of clarity that why such kind of proceedings have been initiated. There can be various reasons a person’s return could be selected for scrutiny. One such case is of regular return processing and primary scrutiny assessment.   Section 143(1) Income Tax Act, 1961 provides processing of ITR filed by assessee under section 139 or 142(1) of the Act. The 143(1) lays down that any return that has been filed by assessee as referred above will thereafter be processed by CPC- Centralized Processing Centre keeping in view below grounds of primary adjustment to reported income: - -       ...

  Overview and comparison of 194O, 165-165A: - There has been prescribed different layers of criteria for determination of taxability with reference to E-commerce related or say digital transactions. We shall have an in-depth discussion of all such provisions and obtain understanding of fact that when which provision be attracted:   Section 194O (Income Tax Act,1961): TDS on certain payment by E-commerce operator to E-commerce Participant –   While any person supplying goods/services/both is enrolled on any e-commerce platform for supply therewith, then e-commerce operator be liable to deduct TDS @ 1%, on gross amount payable by him to such person enrolled as e-commerce participant, in reference to sales conducted via its platform and then only shall he release the net amount of sale proceeds collected from customer, in favor of participant. Such TDS be deducted either at time of credit of such amount to e-commerce participant’s account or at time of actual paymen...