GST for E-Commerce: TCS Under Section 52 & Seller Compliance 📌 Quick Answer Every e-commerce operator (ECO) in India must collect TCS at 1% (0.5% CGST + 0.5% SGST, or 1% IGST) on the net value of taxable supplies made through its platform, under Section 52 of the CGST Act read with Rule 67. Sellers […]
Category Archives: Business Model
Business Model
Faceless Assessment & Appeal: How the New System Works Quick Answer The Faceless Assessment Scheme under Section 144B of the Income Tax Act eliminates physical interface between the taxpayer and the Assessing Officer. All scrutiny proceedings — notices, questionnaires, document submissions, hearings, and orders — are conducted electronically through the e-filing portal. The assessment is […]
18 Valuation Methods Compared: Which to Use When (India) 📌 Quick Answer: How to Choose the Right Valuation Method in India India’s regulatory landscape prescribes different valuation methods for different purposes — Rule 11UA for Income Tax, FEMA NDI Rules for foreign investment, IBBI Regulation 35 for insolvency, and SEBI ICDR Regulations for listed companies. […]
Presumptive Taxation: Section 44AD, 44ADA, 44AE — Eligibility, Thresholds & Benefits Quick Answer Presumptive taxation under Sections 44AD, 44ADA, and 44AE of the Income Tax Act, 1961 allows eligible small businesses, professionals, and goods-carriage operators to declare income at prescribed deemed-profit rates without maintaining detailed books of account. Section 44AD applies to businesses with turnover […]
ESOP Pool Creation: Board Resolution, Scheme Design & Tax Planning for Indian Startups Quick Answer: How Do Indian Startups Create an ESOP Pool? Creating an ESOP pool for an Indian private limited company requires: (1) Board resolution approving the ESOP scheme under Section 62(1)(b) of the Companies Act, 2013, (2) Special resolution of shareholders approving […]
Purchase Price Allocation in India: Ind AS 103 Guide 📌 Quick Answer: What Is Purchase Price Allocation Under Ind AS 103? Purchase Price Allocation (PPA) is the mandatory process under Ind AS 103 — Business Combinations of allocating the total consideration transferred in an acquisition to the identifiable assets acquired (including separately identifiable intangible assets […]
Drag-Along & Tag-Along Rights: SHA Clauses for Indian Startups 📌 Quick Answer: Drag-along rights allow majority shareholders to compel minority shareholders to join a sale of the company on the same terms, while tag-along rights protect minority shareholders by allowing them to participate in a sale initiated by majority shareholders. Both clauses are critical components […]
GST on Works Contract: Classification, Rate & ITC 📌 Quick Answer Works contract under GST is defined in Section 2(119) of the CGST Act as a contract for building, construction, or related activities involving immovable property with transfer of property in goods. Schedule II, Paragraph 6(a) deems it a supply of services. GST rates range […]
Income Tax Notices: Section 142(1), 143(2), 148, 156 — Complete Response Guide Quick Answer An income tax notice is a formal communication from the Income Tax Department requiring you to take a specific action — file a return, furnish information, attend scrutiny, pay a demand, or respond to a reassessment proposal. Each notice type carries […]
Best Judgment Assessment: Section 144 — Grounds to Challenge Quick Answer A best judgment assessment under Section 144 of the Income Tax Act is an ex-parte order passed by the Assessing Officer when the assessee fails to comply with notices, fails to file a return, or fails to get accounts audited under Section 44AB. The […]