CA Sai Talk's

The Ministry of Finance recently issued Notification No. 124/2024 , which introduces significant changes to the Income-tax Rules, 1962. Published on 29th November 2024 , this amendment outlines the safe harbour provisions applicable to the diamond mining business and updates the compliance requirements under the Income-tax Act, 1961. Let's dive into the details and implications of the Income-tax (Tenth Amendment) Rules, 2024 . What Are the Income-tax (Tenth Amendment) Rules, 2024? The new rules amend the Income-tax Rules, 1962 , bringing clarity and structured compliance for businesses engaged in diamond mining and the sale of raw diamonds. These rules primarily aim to provide a simplified framework for determining tax liability under the Safe Harbour Rules (SHR) . The Safe Harbour Rules ensure that income declared by businesses meeting specific conditions is accepted by tax authorities without further scrutiny, fostering certainty and reducing litigation. Key Highlights of the Am...

Let’s face it—CA and CMA exams are tough. The syllabus is vast, the time is limited, and the pressure is real. Most students spend hours reading and revising but forget one key aspect: writing practice . Here’s the truth: knowing the answer is one thing, but being able to write it clearly and quickly during the exam is a whole different ball game. If you want to confidently clear your exams, writing practice is non-negotiable. Let me explain why. Why Writing Practice Matters Completing Papers on Time: Many students can’t finish their papers because they haven’t practiced writing under timed conditions. Writing practice teaches you how to pace yourself and handle lengthy questions without panic. Scoring More Marks: The way you present your answers can make or break your score. Writing practice helps you format answers neatly, highlight key points, and avoid silly mistakes. Spotting Weak Areas: Ever thought you knew a topic but froze when trying to write about it? Writing helps you ident...

  Introduction Accurate financial reporting is crucial for maintaining the trust of stakeholders and ensuring compliance with accounting standards. A recent case involving Raha Limited , a joint venture company operating a gas-based Ammonia-Urea plant, has highlighted key issues in the classification of late payment charges in financial statements. This blog examines the debate surrounding the classification of such charges and provides clarity based on relevant provisions of Ind AS 1 and expert advisory opinions. Case Background Raha Limited delayed payments to G Ltd. under a long-term gas sales agreement during 2022-23, leading to late payment charges of ₹79.88 crore in 2023-24. These charges were classified under "Finance Costs" in the financial statements. Auditor’s Concerns Classification: The auditor argued that late payment charges should be included under "Other Expenses" based on the Guidance Note on Division II – Ind AS Schedule III . Disclosure as Ex...

 The National Financial Reporting Authority (NFRA) has proposed significant revisions to 40 auditing standards, including SA600 ( Using the Work of Another Auditor ) and SA299 ( Joint Audit of Financial Statements ). Scheduled for implementation on April 1, 2026 , pending approval from the Ministry of Corporate Affairs (MCA), these reforms aim to align India’s auditing framework with global standards. The goals are lofty: enhanced transparency, increased investor confidence, and fortified corporate governance. However, the proposal has sparked an intense debate within the auditing profession. The divide centers on whether these changes will benefit the profession holistically or inadvertently favor larger firms, sidelining smaller practices. This blog explores the key aspects of the debate and the potential implications of NFRA’s proposed reforms. The NFRA’s Vision: Enhancing Accountability and Corporate Governance NFRA Chairperson has emphasized the urgent need for reform, citi...

  Introduction In a significant move aimed at reducing tax disputes and providing relief to taxpayers, the GST Council has introduced a waiver scheme for interest and penalties on certain GST demand notices. This scheme, approved during the 53rd GST Council meeting, provides taxpayers with a unique opportunity to settle tax dues without incurring additional penalties or interest. This blog explores the details of this scheme, the eligibility criteria, and the procedural steps for taxpayers to take advantage of this waiver. Overview of the Waiver Scheme: Key Details The waiver scheme applies to demand notices or orders issued under Section 73 of the CGST Act, 2017 , which covers cases that do not involve fraud, suppression, or willful misstatement. Specifically, the scheme addresses demand orders for the financial years 2017-18, 2018-19, and 2019-20 . Key Highlights: Scope : The waiver covers interest and penalties on GST demands. Eligibility : Only demand notices under Section 73 (...

  Introduction In India’s regulated financial environment, public companies listed on the stock exchange are required to follow strict disclosure standards. Recently, CMS Info Systems Limited sought informal guidance from the Securities and Exchange Board of India (SEBI) on classifying nominee shareholders in accordance with SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations and the Issue of Capital and Disclosure Requirements (ICDR) Regulations. SEBI's response clarified various provisions regarding the classification of nominee shareholders as promoters and the process of reclassification. This blog delves into SEBI’s guidance, the relevant regulations, and what it means for listed entities and their shareholders. Background: The CMS Info Systems Case CMS Info Systems Limited, a listed company, initially held its shares through Sion Investments Pte. Limited, its primary promoter. To meet the minimum shareholder requirements outlined in the Companies Act, si...