Accountantjee

If your business relies on bringing in top-tier global talent or foreign experts to train your local teams in India, a recent legal change deserves your immediate attention. A major ruling by the Delhi High Court has shifted the rules around temporary international corporate assignments. This decision introduces fresh financial hurdles and tax liabilities for multinational companies (MNCs), Global Capability Centers (GCCs), and prominent advisory firms. The Core of the Dispute: Salary or Specialized Service? For years, multinational corporations have used a standard practice for international corporate transfers: A parent company overseas sends a skilled worker to its Indian branch. The Indian branch transfers money back to the foreign parent company to cover that worker's salary. The foreign company treats this money strictly as a "cost refund"—meaning no profit is made on the transfer, and no tax is paid on it in India. However, Indian tax authorities have challeng...

  ✅ Introduction: Why This Topic Matters Understanding the difference between accruals and provisions is essential for anyone learning accounting or managing business finances. These two concepts play a major role in accurate financial reporting — and are often misunderstood. In this blog, we’ll break them down in simple, beginner-friendly language , with: 1. Real world examples 2. Journal entries 3. Table for comparison 4. Practical tips 🔹 What Is an Accrual in Accounting? Accruals are revenues or expenses that have been earned or incurred but not yet received or paid . It means something has already happened — the service is received, or the product is sold — but the cash hasn’t been exchanged yet. This is part of the accrual basis of accounting , which focuses on matching income and expenses to the time they occur , not when money changes hands. 🧠 Easy Example: Accrued Salary Let’s say your employees worked in March, but salaries are paid on the 5th of April. Even thoug...

In this article we will understand the ITC Reversal rule pertaining to GSTR-3B.  Navigation-- Login-- Gstr3B-- 4. Eligible ITC section-- B. ITC Reversed-- (1) & (2) From the format of Table 4, following is noteworthy: I.                   All non-reclaimable reversal of ITC needs to be reported in table 4(B)(1) II.                 All reclaimable ITC reversals may be reported in table 4(B)(2). It should be noted that ITC reversed under 4(B)(2) can be reclaimed in table 4(A)(5) at appropriate time and the break-up detail of such reclaimed ITC should be provided in 4(D)(1) in the same return. III.               The ITC not-available mentioned in GSTR-2B of the taxpayer has to be reported in 4(D)(2) of table 4. IV.             ...