Author: Daniya Kurian

As of the latest update from the GST E-invoice system on December 04, 2023, it has been mandated that a minimum of 6 digits of the HSN code will be compulsory in e-Invoices for taxpayers with an Aggregate Annual Turnover (AATO) of 5 Crore and above. This requirement will come into effect from December 15, 2023.… Continue reading Latest update on HSN code from GST

A Special Economic Zone (SEZ) is a dedicated zone wherein businesses enjoy simpler tax and easier legal compliances. SEZs are located within a country’s national borders. However, they are treated as a foreign territory for tax purposes. This is why the supply from and to special economic zones have a little different treatment than the… Continue reading Special Economic Zone (SEZ)

Within the lessee accounting model under IFRS 16, there is no longer a classification distinction between operating and finance leases. Rather, now a single model approach exists whereby all lessee leases post-adoption are reported as finance leases. These leases are capitalized and presented on the balance sheet as both assets, known as the right-of-use (ROU)… Continue reading IFRS 16 Leases

RFD-01 is an application for the online processing of refunds under GST. It is to be e-filed on the GST portal to claim the refund of: Taxes, cess and interest paid in case of zero-rated supplies (except the export of goods with tax payment). Balance of excess cash paid into the electronic cash ledger. Unutilised Input tax credit… Continue reading Form RFD-01 in GST

MSME stands for Micro, Small, and Medium Enterprises. It is a classification used by governments and organizations in various countries to categorize businesses based on their size and financial metrics. The specific criteria for classifying businesses as MSMEs can vary from one country to another, but the general idea is to provide a framework that… Continue reading Micro, Small, and Medium Enterprises

Management accounting provides financial and non-financial information to managers to help them make informed decisions about the business. The main functions of management accounting include: Communicating financial information: Management accountants gather and analyze financial data from the business’s financial statements and other sources, and then communicate this information to managers in a way that is easy… Continue reading How Management Accounting Works

In economics, the marginal cost is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity. The purpose of analyzing marginal cost is to determine at what point an organization can achieve economic of scale to… Continue reading Marginal Cost

There are two types of credit notes:  Those issued for incoming payments Those issued for outgoing payments What this therefore means is that a credit note can be both issued and received by a business. For small business owners, both types are common. There are several situations in which a credit note should be issued.… Continue reading When to issue a credit note

A primary benefit of account payee cheques is that they might be the safest variant of cheques. That is because the written sum on the cheque can only be deposited into the account of the payee, ensuring that the chances of misuse are very low. After receiving the payment through this cheque, the payee can’t… Continue reading Why write an account payee cheque

A rebate under section 87A is one of the income tax provisions that help low income earning taxpayers reduce their income tax liability. Taxpayers earning an income below a certain limit have the benefit of paying marginally lower taxes. A Taxpayer can claim the benefit of rebate under section 87A for FY 2022-23 and 2023-24… Continue reading Rebate u/s 87A