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Pushpendra Kushwaha

If a Foreign Subsidiary Company takes External Commercial Borrowings (ECBs) from its Holding Company at a lower interest rate compared to the prevailing industry rate. In this scenario:
1. Is this considered a compound financial instrument, requiring accounting treatment as per Ind AS 109?
2. If so, what benchmark rate should be used for valuation, especially when a comparable rate is unavailable?
Further clarification:
a) The company has prepared its financial statements in accordance with Ind AS for the first time (First-time Adoption of IND AS).
b) The company has been in a loss-making position for the last 10-11 years. Therefore, the company is not in a position or eligible to take any borrowings from banks, financial institutions, or other non-related parties. So, what comparable rate should be used if Ind AS 109 is to be applied?

If any professionals or individuals have expertise or experience in handling this particular situation, please provide insights in the comments section below.


PANDIAN BRIGHT
05 March 2024 at 17:26

POWERS OF CERTIFIED INTERNAL AUDITOR

Respected Sir/Madam,
I am going to Study CIA Course (Certified Internal Auditor). Can a CIA attested on Financial statements of the assessee ? (Sec 44AD cases. Not tax audit)


Pawan Kumar Naidu
06 February 2024 at 16:54

Irregular availment of Input Tax Credit

Hi,
I filed my feb 2018 GST returns in March 2019 . As per the GSTR-3B
returns by violating the provisions of section 16(4) of CGST Act, 2017).I have received show cause notice, I have already closed my business. Further I can pay the principle liability but the interest amount is farfetched, can you tell me if I need to pay interest till date.Is there any way to avoid it


Meghna
30 January 2024 at 16:01

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Under clause 44 one bill has two components Taxable supply and Non-taxable supply then Non-taxable value where to report under Exempt supply or other inward supply .

1. Exchange service bill of 100 but under GST taxable value is only 30 then 70 rupees supply how to report Exempt or other inward service .
2. One bill has reimbursement of expenses on which GST is not applicable then how to report reimbursement of expenses under exempt supply or Non-taxable supply under clause 44


0123456789@
30 January 2024 at 14:13

Provident Fund Audit Report Format

Please Provide a sample copy format of Provident Fund Audit Report


kishor paramar

ONE OF MY TRUST CLIENT INCOME BELOW 5 CR THEN FILLED 10BB DUE COURSE,THEN AFTER RS. 20LAKH INCOME NOT TAKEN AT THAT TIME NOW CONSIDER THAT INCOME SO MY TRUST INCOME IS MORE THAN 5 CR,CAN I FILLED NEW FORM 10B AND UPDATED TRUST RETURN


Abhishek.A

can anyone please say what are the errors we can face in physical verification of work in progress (wip) and how to slove that


jayesh shah
21 January 2024 at 23:14

Gratuity accounting in company's books

Ours is pvt ltd co. we have formed separate group gratuity trust and it was approved by Income tax department.
The Gratuity Trust has invested the money with LIC Group Gratuity Scheme.

1. We are making provision for Gratuity liability as actuarial report (as per INDAS) in the books of company and shown on liability side under provision.
2. Whatever amount we pay to LIC is shown under assets side as Gratuity Fund with LIC and every year what ever we pay is getting added in the balance and claim deduction for what ever amount is paid to LIC.

Just now we are passing only 2 entries in the company's books
1 - Provision of Gratuity as per actuarial Report
Gratuity a/c Dr. (profit & loss)
To Provision for Gratuity (Liability Side)

2 - For amount paid to LIC for Group gratuity scheme.
Gratuity Fund (LIC) Dr. (Assets side)
To Bank Account

my question
3. Whatever Interest we received from LIC is shown as income in gratuity Trust. & Trust is having separate PAN No. and we also file Trust Income Tax Return. - so shall we also show that Interest income in Company's profit & Loss account ? if yes how -i.e. what entry should be passed -say interest shown as income in p&l but dr. to what ?

4. when ever employee left the job and having completed 5 years - LIC pay Gratuity Directly to Group Gratuity Trust account and from trust account it is directly paid to employees.

Do we also have to show Gratuity paid to employees in company's books of account if yes what will be the entry ? i.e. which account will be debited and which account will be credited ?

highly appreciate if some one help to solve our query.
Thanks in Advance.


Sulafa S.V

Sir, Can you please tell me what is the treatment of profit on sale of fixed asset in income tax as well as in the books of a company?
Is this included on deferred tax calculation?
Please help me on this.


Pushpendra Kushwaha

When calculating CSR expenditure under Section 198, should the government grant received for capital expenditure be treated as part of the profit? If so, is it the entire amount received during the year, or should it be based on the amortization amount reflected in the statement of profit and loss for the year?