Direct and indirect taxes have different implications for businesses, and every company needs to comply with rules and regulations specific to each tax system. GST, an indirect tax, is levied on sales, while corporate income tax is charged on net taxable income. How much does direct and indirect tax compliance differ? Stay with us to learn more on this topic. Importance of Tax Compliance for Indian BusinessesTax compliance is an inseparable part of doing business in any country. Companies operating in multiple geographies are required to adhere to tax laws in each of those regions. The same applies to Indian businesses. The key reasons behind the necessity of tax compliance for companies in India are: Avoiding legal ramifications - Failure to comply with tax laws and regulations can cause serious legal ramification for businesses in India. It can be as minimum as levying of penalties to as severe as seizure of company assets and imprisonment of business promoters and managers. Continuity of business operations - It is the responsibility of a company to learn about the applicability of taxes on its business.

Compliance risk management is one of the most important factors influencing business success. However, a lot of businesses neglect this part of their operations in favour of more important ones like marketing and cash flow. In this article, you will explore what is compliance risk management and how to manage compliance risk. We will also provide you with the best practices for managing compliance risks efficiently. What is Compliance Risk Management?Compliance risk management means understanding the risks associated with non-compliance with rules and regulations. The objective of compliance risk management is to reduce legal penalties, losses and any financial impact.

Despite its price point, the iPhone has grown to be a very popular phone brand in India. However, iPhone buyers are always apprehensive about GST on iPhones as it forms a substantial part of the cost. In this article, we decode the GST rate on iPhone mobiles, the type of GST on iPhones, the input tax credit available, import duties on iPhones, and more.For more information on GST on mobile phones, you can refer to our article here.GST on iPhonesBefore the implementation of GST, there were various taxes levied by the Central and state governments, such as Customs duty, Central Excise, and VAT, at various stages of value addition. Now, post the implementation of GST, there is still Customs Duty levied on iPhones as they are imported into India from countries like China.In fact, the reason why iPhones are as expensive as they are is because of the amount of indirect taxes forming a part of the value, which at present, includes Customs duty and GST.GST Rate on iPhones in IndiaUnder the GST law, the rate applicable on mobile phones is 18%. Hence, the GST rate on iPhones is 18%.

The supply chain has become one of the most important functions for organisations to reduce their cost of operations and increase their business value. If you are thinking about what a supply chain is and how it works, then here is a comprehensive guide. In this article, we explain the meaning of supply chain, along with the different supply chain types, give examples and share some of the best practices to help you effectively manage your supply chain.What is a Supply Chain?A supply chain is a network that includes all the necessary activities and resources to produce goods and services and ensure that these goods and services reach the consumer. It comprises different stages, such as procurement of the raw materials, manufacturing, storage, and, ultimately, the delivery of the finished product.Clear Supply Chain Cloud: #1 Global supply chain automation solutionKey Objectives of a Supply Chain in a BusinessNow that you know what a supply chain is, let's explore the key objectives of a supply chain in more detail:Customer Satisfaction: The first objective of the supply chain is to ensure that customers receive the right product at the right time.Cost Efficiency: The second objective is to reduce expenses while maintaining service quality, which is achieved through planning carefully and optimising resources.Inventory Optimisation: This objective is about balancing the availability of the product and controlling the cost. This is achieved by regularly tracking the demand and streamlining the restocking process.Lead Time Reduction: Delivering the products faster is key to keeping consumers motivated, which is what a supply chain aims to achieve.

In an e-commerce era where budding entrepreneurs carry out business remotely or from homes, without an office space, there are scenarios where businesses must register under GST declaring a place of business which are neither owned nor rented out by them. It invokes the use of the consent letter.They must still comply with the GST law since that will legally authorise them to collect taxes from their buyers and pass on the input credit of taxes paid. Only such GST registered businesses will be legally recognised as suppliers of goods or services, made mandatory to sell on e-commerce sites. If you want to verify the authenticity of the GST number of such sellers, you can use the GST search tool.The article provides details on using a consent letter, who should sign it, format for downloading the consent letter for GST registration.Meaning of GST consent letter or NOCMany businesses are carrying out their work from home as they do not have a registered commercial place of business. If such premises on which work is being carried out is owned, then a document supporting the taxpayer’s ownership is to be uploaded at the time of registration.If the premises are rented, then a valid rent/lease agreement is to be uploaded.

In July 2022, the government made certain changes to the format of the GSTR-3B return, notably changing the procedure for reporting data in Table 3 and Table 4 of the form. The changes were first announced in July via Notification No. 14/2022 – Central Tax, and thereafter, in September, the GSTN released the format for reporting data in Table 4 of the GSTR-3B. The new format of Table 4 of the GSTR-3B has now been updated to include a more detailed split of input tax credit (ITC) that is eligible and ineligible, restricted, reversed and reclaimed, along with other similar ITC information. In this article, we discuss the new changes to the Table 4 format and how taxpayers need to report their ITC in the GSTR-3B going forward.Contents of Table 4 of GSTR-3B and Applicability Table 4 of the GSTR-3B return contains the break-up of all ITC-related information for a particular return period. This includes ITC available on the import of goods and services, capital goods, inward supplies liable to reverse charge, ITC distributed by an Input Service Distributor (ISD), etc.

Under GST, a single rate of 12% is applicable on under-construction properties, whereas no GST is applicable on completed properties. However, the tax rates have been reduced from 8% to 1% for affordable houses and 12% to 5% for other than affordable houses, subject to the builder not claiming input tax credit (ITC).In the case of a works contract service being provided to develop a plot of land, a GST rate of 18% is applicable. Stamp duty and registration charges continue to apply apart from the indirect taxes.Taxability of Sale of Land Under Pre-GST LawsBefore GST, VAT was applicable on the sale of goods and goods were defined as all kinds of movable property. Land, being an immovable property, was not subject to VAT. However, stamp duties were charged on the sale of immovable properties.Taxability of Sale of Land Under GST and ExemptionsAs per Schedule III of the CGST Act, the land sale is neither considered a sale of goods nor a supply of services.

Push and pull supply chain strategies are two basic methods for controlling the flow of goods between the manufacturing unit to the end consumer. Each strategy has advantages and disadvantages, and the applicability is based on the product type, business objective and market demand. In this article, we will explore what is push and pull strategy in supply chain. We will also look at the difference between push and pull in supply chain to help you choose the right strategy for your requirements.  1. What is Push Strategy in Supply Chain Management?In supply chain management, a “push” strategy involves preplanning and controlling inventory levels and activities based on future projections.

Supply chain management (SCM) has a very important role in the growth of the Indian economy, as its economy is growing at a very fast pace. The proper implementation of effective SCM practices enables organisational operations to run smoothly, causes less waste, and results in high customer satisfaction. In this article, we discuss several examples of supply chain management in India and reveal a successful case of supply chain management.Supply Chain Management Examples in IndiaMany firms in India have adapted new ways of supply chain management to sustain and survive the highly competitive market. These examples illustrate how effective SCM can be in transforming business operations:1. FlipkartToday, Flipkart is considered one of the largest e-commerce companies in India with a well-organised supply chain system.

In this modern phase of ecologic mindfulness and organisational civic duty, the Securities and Exchange Board of India (SEBI) has introduced the Business Responsibility and Sustainability Reporting (BRSR) guidelines for listed companies. BRSR reporting is a comprehensive framework that seeks to promote sustainable business, responsible management of the environment, and corporate governance. This blog explores the BRSR reporting directives, principles, relevance, and benefits to organisations and investors.What is the Full Form of BRSR?The full form of BRSR is Businеss Rеsponsibility and Sustainability Rеporting, which is a rеporting framеwork notified by thе SEBI for listеd companiеs in Indiа.What is Businеss Rеsponsibility and Sustainability Rеporting (BRSR)? Business Responsibility and Sustainability Reporting (BRSR) is an integrated reporting framework. Its purpose is to increase the level of reporting on environmental, social, and governance (ESG) performance. BRSR requires enterprises to report ESG performance indicators to ensure that they practise responsible business and achieve sustainable development. Objectives of BRSR ImplementationThе primary objеctivеs of BRSR implementation are:To encouragе companiеs to adopt sustainablе businеss practicеs and intеgratе ESG considеrations into thеir opеrations. To encourage the comparability and quality of non-financial information disclosed in the reports. To ensure that Indian companiеs complу with the internationаl standards and frаmeworks of sustainаbility reporting. To improve stakeholder engagement and establish trust by ensuring that comprehensive ESG disclosures arе made. BRSR ApplicabilitySEBI has requirеd the 1000 largest listеd companiеs by markеt capitalisation must mandatorily file BRSR rеports as part of the annual reports from FY 2022-23 onwards. Further, as per SEBI Circular SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated 12th July 2023, the top 1000 listed entities by market capitalisation are required to make disclosures as per the updated BRSR format (which include the disclosure and assurance requirements for BRSR Core, ESG disclosures for value chain, and assurance requirements), as follows:Financial YearApplicability of BRSR Core to top listed entities (by market capitalisation)2023-24Top 150 listed entities2024-25Top 250 listed entities2025-26Top 500 listed entities2026-27Top 1000 listed entitiesFurther, to encourage widespread adoption of sustainable practices, SEBI has called on all companies with a public listing to adopt BRSR reporting on a voluntary basis.