Category: Finance

The client requires a consolidated report that provides complete visibility into asset-related journal activity. Specifically, the report should display the reversed journal entries (JE) associated with each asset record, along with the corresponding reversal required depreciation journal entries, presented together in a single, unified format. This will enable streamlined reconciliation, improved auditability, and more efficient… Continue reading FAM Custom report for Asset reversals

Input Tax Credit (ITC) is an important feature of the GST system that helps businesses reduce their tax burden. When a company purchases goods or services, it pays GST to the supplier. Later, while selling its own products or services, the company collects GST from customers. ITC allows the business to subtract the GST already… Continue reading Input Tax Credit (ITC)

Return on Investment (ROI) is a financial metric used to assess the profitability and efficiency of an investment by comparing the return generated to its cost. It is calculated using the formula: “ROI”=”Net Profit” /”Cost of Investment” ×100. It is expressed as a percentage. ROI is widely used in business decisions, marketing campaigns, and project evaluations… Continue reading Return on Investment (ROI)

EBIT has earned its place as a fundamental financial metric because it reveals a company’s operational strength without the distractions of financing decisions or tax situations. Here’s what it’s often used for: Operational profitability: EBIT strips away interest and tax expenses to reveal how efficiently a company runs its core business. For example, if a business generates… Continue reading Importance of Earnings Before Interest and Taxes (EBIT)

How RCM Works in NetSuite (India Localization) India Localization SuiteTax Engine NetSuite provides a free managed SuiteApp called India Localization SuiteTax Engine that supports GST compliance, including RCM. It integrates with transactions to apply GST rules based on Indian tax laws. RCM Configuration RCM is triggered when purchases are made from vendors where GST liability… Continue reading How RCM Works in NetSuite (India Localization)

The Reverse Charge Mechanism (RCM) is a system under GST where the recipient of goods or services, instead of supplier is responsible for paying the applicable GST directly to the government. RCM is used in situations where the government wants to ensure tax compliance from organized entities, such as purchases from unregistered suppliers, import of… Continue reading Reverse Charge Mechanism (RCM)

TDS on repair and maintenance services is applicable under Section 194C of the Income Tax Act, 1961, where payments to contractors for such services require tax deduction at source. Section 194C: This section states that any person making payments to a resident contractor for carrying out work, including repair and maintenance, must deduct TDS at the prescribed rate. The threshold for TDS deduction is set at ₹30,000 for a single transaction and ₹1,00,000 for the aggregate amount in a financial year. If the… Continue reading Overview of TDS Applicability on Repairs and Maintenance

The CGST Rule 80 covers the provisions pertaining to the annual return forms under the GST law. Annual returns in GST are of four types as follows– GSTR 9– Regular GST taxpayers who file GSTR 1 and GSTR 3B must file this return, especially if they cross the GST annual return limit of Rs.2 crore turnover… Continue reading GSTR-9 types