All listed entities are required to disclose the impact of #Covid-19 on their financial statements in their results. Detailed disclosures are also required in notes. The auditor is also required to comment on the same in his audit report. In the attached file, we have compiled disclosures made by various companies in this regard. Hope you will find it useful.
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During the current pandemic, the government has given certain extensions and relaxations regarding #Income #Tax compliance. We have summarized them in our presentation below:
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Presentation on Section 115BAC – TDS on Employees Salary
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The #government has introduced a new section #194M requiring deduction by individuals on certain specified payments above Rs.50 Lacs. These provisions have come into effect from 1st September, 2019
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Note on Recent Changes in Law in connection with #issue of #certificate u/s 197 of the Income Tax Act
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Section 40A(3) of the Income Tax Act contains provision for disallowance of expenditure where any payments are aggregate of payments made to a person in a day otherwise then by account payee cheque / bank draft and electronic clearing system which exceeds Rs.20,000/-
TAX RATES
i) No change in exemption slab. However, the slab rate of tax between Rs.2.5 lakh and Rs. 5 lakh will be reduced from 10% to 5%.
ii) Individual /HUF/AOP/BOI/artificial juridical person having income above Rs.50 lakh will be subject to surcharge of 10% of income-tax. In case of these taxpayers (as well as other taxpayers) having income above Rs.1 crore, the current surcharge of 15% will continue. Continue reading
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AUDIT FIRMS establish branch offices to stay closer to the clients and thus serve them better. Branch offices (BO) facilitate manpower logistics by deputing staff at BO to serve the local clients.
Local clients prefer branch offices. After all, there is the comfort of buying from a local vendor! From an audit firm’s perspective, the number of locations is a prestige factor and is a first indicator of perceived size. Over the years, the importance of local presence has dwindled. There are two reasons for this:
One, better travel and accem- modation facilities. In case of large assignments, travel and accommodation is an integral part of the assignment. Staff put up near the client office in hotels or guest houses can lend better time to work than those residing far away. Cities are crowded and commuting can be a painful experi- ence. In fact, it is common today to see instances where even the audit staff residing in the same city are put up in a hotel near the client office to save time in daily commute. For this reason, large assignments may not be disadvantaged by the absence of a local office.
Two, better connectivity and cloud computing: Paper work is fast becoming a 201h-century phenomenon. Today, most things are done online. Teleconferencing and videoconferencing have cut both time and distance. This has greatly reduced the need for physical presence. Reviews can take place online. Hence, a local office is a relatively more significant factor for smaller clients than for larger clients. Yet from a perception level, locations matter.
In case of group firms, it is normal to have the same premises registered as head office or branch offices for two or more firms belonging to that group. While aggregating the number of locations for that group, common locations were counted only once. For example, Dalal & Shah (FRN 102021 W), Price Waterhouse (FRN 301l12E) and Lovelock & Lewes LLP (FRN 116150W/Wl00032) share the same address in Mumbai. This is counted as one office. However, where an audit firm or an audit group has more than one office location within the same city these were counted separately. We divided the audit firms into four categories. Here’s a snapshot.