What Is Related Party Transaction (RPT)?A Related Party Transaction (RPT) occurs when a business is involved in monetary transactions with a related party, e.g., its subsidiary companies, immediate family members of directors, key managers, or senior executives. Sales, purchase transactions, loan extensions, lease contracts, or services agreements fall within this provision and must be dealt with clearly and at arm's length to avoid potential conflict of interest.Important Legislations Regulating Related Party Transactions (RPT)IFRS (International Financial Reporting Standards): Mandates disclosure of related party transactions in financial reports.US SEC (Securities and Exchange Commission): Requires reporting of RPTs to avoid conflicts of interest.India: Regulated by the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations.US: Regulated by the Sarbanes-Oxley Act (SOX) and GAAP (Generally Accepted Accounting Principles).UK: Regulated by the UK Corporate Governance Code and Financial Conduct Authority (FCA) rules.Benefits Of Related Party Transactions (RPT)Operational Efficiency: Firms can make transactions with affiliates and subsidiaries more efficient.Cost Savings: Third-party transactions tend to be more expensive than in-house transactions.Business Expansion: Facilitates strategic partnerships and better resource planning.Risk Management: Regulatory systems prevent fraud and unequal transactions.Enhanced Financial Performance: Synergies among allied parties increase business profitability in general.Key Takeaways Related Party Transactions (RPT) refer to financial transactions between a company and its subsidiaries, directors, executives, or close friends. As much as they increase business efficiency, save on costs, and foster growth, they must be guided by international and country-specific legislation to avert conflicts of interest and improper finance management. Proper disclosure maintains transparency, compliance with laws, and investors' trust..

What Is Net Interest Margin?Net Interest Margin is a bank and financial institution's profit measure of lending and investing activities. It is the interest rate for net interest income, and it is a ratio because it compares the proportion of interest-producing assets to the interest income received from assets like loans and investments versus the interest paid out on liabilities such as deposits.Net Interest Margin FormulaThe net interest margin can be calculated by using the below formulaeNet Interest Margin (%) = Net Intrest Income / (Average Intrest - earning assets)Advantages Of Net Interest Margin (NIM)A measure of Bank Profitability:  A high NIM represents higher earnings from lending operations.Aids Financial Planning: Banks use NIM to determine loan interest rates and deposit rates.Provides an indicator of Economic Conditions: Trends in NIM indicate economic and market interest rate conditions.Supports Risk Management: Assists banks in evaluating the effect of interest rate changes on profits.Investor Confidence: A high NIM indicates a well-managed bank, which draws investors.Key TakeawaysNet Interest Margin measures the profitability of the bank by calculating the difference between interest earned on liabilities and interest on liabilities as a percentage of interest-income assets. The higher the NIM, the better the financial performance, the better, while a falling may be a sign of disability or expensive borrowing. It assists banks in risk management, setting lending rates, and attracting investors and is also an economic indicator of interest rate trends and market conditions..

What Is Financial Sector?The financial sector consists of institutions and markets that facilitate the flow of money, credit scores, and investments in an economy. It includes banks, insurance companies, inventory markets, and other entities that help people, companies, and governments manipulate price ranges and allocate assets successfully.Types Of Financial InstitutionsCommercial Banks:  Accept deposits, provide loans, and offer monetary offerings.Investment Banks:  Assist in capital elevating, mergers, and acquisitions.Insurance Companies:  Provide chance protection through policies.Pension Funds:  Manage retirement financial savings and investments.Stock Exchanges:  Facilitate shopping for and promoting of shares and securities.Central Banks:  Regulate the cash supply and oversee economic policy.Microfinance Institutions:  Offer financial offerings to small businesses and coffee-income individuals.Financial Sector in MacroeconomicsCapital Allocation:  Directs budget to efficient investments.Monetary Policy Implementation:  Central banks modify hobby rates and money delivery.Economic Growth:  Supports groups with credit scores and investment opportunities.Inflation Control: Helps stabilise expenses via monetary policies.Advantages Of Strong Financial SectorEconomic Growth:  Provides capital for companies and innovation.Efficient Resource Allocation:  Ensures finances visit efficient sectors.Risk Management:  Insurance and economic units reduce uncertainties.Wealth Creation:  Investment opportunities boom income for people and organisations.Monetary Stability:  Helps control inflation and stabilise the financial system.Key TakeawaysThe monetary area incorporates establishments like banks, insurance corporations, and stock markets that facilitate cash drift and investments. Key financial establishments include business banks, investment banks, coverage businesses, pension funds, inventory exchanges, crucial banks, and microfinance institutions. In macroeconomics, the world helps manage capital allocation, monetary coverage, financial boom, inflation, and overseas alternatives. A strong financial quarter guarantees economic increase, efficient aid allocation, threat management, wealth advent, financial stability, and global integration, making it critical for a stable and thriving economy..

Meaning of Complementary GoodsAn object combined with another product or service is a complementary good or service. Usually, when consumed alone, the complementary good has little or no value. Still, when paired with another good or service, it adds value to the overall value of the bid. A product may be complementary if it shares a beneficial relationship with another product. An ideal example could be a sharpener and eraser given away with a box of pencils.Complementary Goods ExplainedThe complementary goods have a nature of joint demand, allowing interaction since the consumer craves the second product when the price of the first commodity fluctuates.

GST is applicable on the premiums paid on health insurance policies in India. In the 54th GST Council Meeting, it was decided to create a Group of Ministers (GoM) to evaluate the proposal of reducing the GST rate on health insurance premiums from 18% to 5%. However, the 55th GST Council meeting provided an extention to the GoM to submit their report.The article covers the latest GST rate on health insurance. Can we claim Input Tax Credit (ITC) on employees' health insurance under GST? Read and find out.What is GST on Health Insurance?GST on health insurance premiums is applicable at the time of the sale or renewal of the policy. Simply put, the premium paid on a medical or health insurance policy will attract GST. The GST rate on health insurance premiums is 18% under the HSN code 997133.However, there are exemptions given for certain government-run health insurance schemes for economically weaker sections of society.

Employers and organisations that deduct tax at source can check the TDS statement after filing the statement, just to make sure everything is correct. Here is the step-by-step procedure to do it.Step 1: Visit the income tax e-filing portal at the URL http://www.incometaxindiaefiling.gov.in/home.Step 2: Log in to the e-filing portal with your log in credentials.Step 3: Select the ‘View Filed TDS’ option under the ‘TDS’ tab.Step 4: Select the financial year, form name, and quarter, from the dropdown menu for which the TDS statement was uploaded. Click on the ‘View Details’ button.Step 5: The details of the TDS statement will be displayed. Once you upload the TDS statement, the ‘Status’ column will be shown as ‘Uploaded’. Upon validation, the status will either be ‘Accepted’ or ‘Rejected’.The final judgement will be reflected on the portal within a period of 24 hours from the time of upload.Step 6: If the statement is rejected, it will state the reasons for rejecting it.

GST news and updates must be tracked by every business for ensuring timely and 100% compliance. Read on to get the latest developments from CBIC, GST Council and GST Network/portal on GST returns and compliances, e-way bills and e-invoicing systems. Latest GST News1. 2024 GST Updates8th March 2025FM Nirmala Sitharaman has indicated that there will soon be a GST rate cut and that the tax review is in final stages, at the recently held Economics Times Awards for Corporate Excellence in Mumbai. With this update, we can expect the upcoming 56th GST Council meeting to have GST rate rationalisation on its agenda.10th January 2025The due dates of monthly and quarterly GSTR-1, GSTR-3B, GSTR-5, GSTR-6, GSTR-7 and GSTR-8 returns are extended for the month/quarter ending 31st December 2024 as follows-GSTR-7 & GSTR-8: File by 12th Jan 2025GSTR-1 (Monthly): File by 13th Jan 2025GSTR-5 & GSTR-6: File by 15th Jan 2025GSTR-1 (QRMP): File by 15th Jan 2025GSTR-3B (Monthly): File by 22nd Jan 2025GSTR-3B (QRMP): File by       24th Jan 2025 for Category X States/UT  or       26th Jan 2025 for Category Y States/UTCategory X: Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh, the Union Territories of Daman and Diu and Dadra and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep.Category Y:  Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, the Union Territories of Jammu and Kashmir, Ladakh, Chandigarh and New Delhi.21st December 2024The 55th GST Council meeting happened on 21st December 2024 in Jaisalmer, Rajasthan. It was chaired by the Union Finance and Corporate Affairs Minister and was attended by Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers of Haryana, Jammu and Kashmir, Meghalaya and Odisha; Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana; besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.

GST rates list is crucial for every Indian business and consumer to know. When the GST Council revises the Goods and Services Tax (GST) rates, it hits respective industries, trade bodies and end consumers, impacting the economy. Everyone tends to evaluate their position as a result of this change. Our comprehensive GST rates list for 2025 highlights all the updated rates and the recent changes after the 55th GST Council meeting. Clear HSN cum GST rates finder helps you identify the accurate and latest GST rate applicable for the product/service. Whether you're a business or a consumer, stay informed with the latest GST updates for seamless transactions.In this article, learn the meaning of GST rates, different types, classification, and get all the latest updates on GST rates in India 2025.In this article-Meaning of GST RatesTypes of GST Rates & GST Rate StructureGST rates in 2025GST Rate Changes at 55th GST Council MeetingGST Rate Changes at 54th GST Council Meeting GST Rate Changes at 53rd GST Council Meeting GST Rate Changes at 52nd GST Council Meeting GST Rate Changes at 51st GST Council Meeting GST Rate Changes at 50th GST Council Meeting GST Rates for Goods and Services with HSN Chapters Latest Updates8th March 2025FM Nirmala Sitharaman has indicated that there will soon be a GST rate cut and that the tax review is in final stages, at the recently held Economics Times Awards for Corporate Excellence in Mumbai.

The GST Amnesty Scheme was introduced by the government to provide relief to taxpayers who missed filing GSTR-3B for the previous tax periods. In this article, get complete details of the applicability, benefit, and working of this scheme with the latest updates. Also, learn about the late fee relief, the issues that were unresolved and possible solutions. Latest Updates :7 February 2025The department issued Instruction No. 02/2025-GST, clarifying that the taxpayers who have fully paid the tax but the department has filed or is filing an appeal only for interest or penalty calculation errors, the taxpayer remains eligible for the Amnesty scheme under Section 128A.14th Jan 2025Forms GST SPL 01 & SPL 02 are available on the GST portal.Withdrawal of appeal applications is required for waiver eligibility. The APL 01 withdrawal is available for appeals before the First Appellate Authority through the GST portal.

Ever noticed GST certificate displayed in any establishment/ even a local supermarket? A GST registration certificate is issued by the government as a valid document for proof of being registered under the GST law in India. Any business in India whose turnover exceeds the threshold limit for GST registration or otherwise mandated, must get registered under GST, download and display GST certificate. Getting a GST Certificate is simple process. Let's show you how!Watch the video to know the steps of downloading GST registration certificate-Meaning of GST Registration Certificate and UsesEvery taxpayer who has successfully registered under GST is issued a GST registration certificate in Form GST REG-06. It contains the GST Identification Number (GSTIN), the principal and additional places of business.