Category Archives: Valuation

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 […]

Income Tax Prosecution: Section 276C, 277 — Defence & Compounding Quick Answer Income tax prosecution is the most severe consequence of non-compliance — it carries the possibility of imprisonment. Section 276C penalises wilful attempt to evade tax (up to 7 years rigorous imprisonment for amounts exceeding Rs 25 lakhs). Section 277 penalises making a false […]

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 […]

Section 270A vs 271(1)(c): Which Penalty Applies & Defence Strategy Income tax penalty proceedings are among the most contested areas of tax litigation in India. With the introduction of Section 270A by the Finance Act, 2016 (effective from 1 April 2017), the penalty framework underwent a fundamental overhaul. Yet, both the old provision — Section […]

Investor Due Diligence Checklist: Legal, Financial & Tax (India) 📌 Quick Answer: Investor due diligence for Indian startups typically spans five workstreams — legal, financial, tax, regulatory and operational. A thorough diligence process examines corporate records, financial statements, tax filings, FEMA compliance, intellectual property ownership, employment matters, litigation risks and commercial contracts. Founders who proactively […]