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Whether sports authority of India is considered as local authority?
No, SAI is not considered a local authority under the Income Tax Act. As per Section 10(20) of the Income Tax Act, a local authority includes:✅ Panchayats under Article 243(d) of the Constitution.✅ Municipalities under Article 243P.✅ Municipal Committees, District Boards, or similar authorities respRead more
No, SAI is not considered a local authority under the Income Tax Act.
As per Section 10(20) of the Income Tax Act, a local authority includes:
✅ Panchayats under Article 243(d) of the Constitution.
✅ Municipalities under Article 243P.
✅ Municipal Committees, District Boards, or similar authorities responsible for local governance and civic functions.
Hence, SAI is an Autonomous Body with No Local Governance Role and neither has any Statutory Authority for Local Self-Governance. It operates under the supervision of the Ministry of Youth Affairs & Sports, Government of India.
See lessDoes an invoice required to be signed? or we can mention that it is a computer generated invoice and not required to be signed?
Many businesses in India wonder whether an invoice must be signed or if a system-generated invoice is legally valid. Let’s break it down from both GST and Income Tax perspectives. 1. GST Rules on Invoice Signatures As per Rule 46 of the CGST Rules, 2017, an invoice must contain specific details suchRead more
Many businesses in India wonder whether an invoice must be signed or if a system-generated invoice is legally valid. Let’s break it down from both GST and Income Tax perspectives.
1. GST Rules on Invoice Signatures
As per Rule 46 of the CGST Rules, 2017, an invoice must contain specific details such as:
✅ Supplier’s Name & Address
✅ GSTIN
✅ Invoice Number & Date
✅ Description of Goods/Services
✅ Taxable Value & GST Amount
However, a physical signature is NOT mandatory if the invoice is issued electronically. Businesses can simply add a note stating:
📝 “This is a system-generated invoice and does not require a signature.” Here Computer generated means generated through a computer System/application.
What About E-Invoicing?
For businesses with a turnover of ₹5 crore or more (from 1st August 2023), e-invoicing is mandatory. These invoices are digitally signed by the Invoice Registration Portal (IRP), making a physical signature unnecessary.
2. Income Tax Perspective on Invoice Signatures
The Income Tax Act, 1961, does not prescribe any format for invoices, nor does it require a signature. However, invoices should contain necessary details to support expenses or revenue for tax assessments.
3. When Should You Sign an Invoice?
Although signatures are not mandatory, some situations may require them:
✔️ Export Transactions: Foreign clients may request a signed invoice.
✔️ Government Contracts: Some government departments require physical signatures.
✔️ Legal Disputes: A signed invoice can provide stronger evidentiary value.
Conclusion: What Should You Do?
For most businesses, a computer-generated invoice with a disclaimer is legally valid. If required, businesses can use digital signatures (DSC) or scanned signatures instead of manual signing.
👉 Recommended Disclaimer for Your Invoices:
📌 “This is a system-generated invoice and does not require a signature.”
This ensures compliance while keeping your invoicing process efficient.
See lessOn what value Labor cess shall be calculated?
As per Section 3(1) of the Act, labour cess is levied at 1% of the "cost of construction." Cost of Construction Includes (Rule 3 of the Cess Rules, 1998) ✅ Material Cost – Cost of raw materials used in construction✅ Labour Cost – Wages and salaries paid to workers✅ Hire Charges – Rent for machineryRead more
As per Section 3(1) of the Act, labour cess is levied at 1% of the “cost of construction.”
Cost of Construction Includes (Rule 3 of the Cess Rules, 1998)
✅ Material Cost – Cost of raw materials used in construction
✅ Labour Cost – Wages and salaries paid to workers
✅ Hire Charges – Rent for machinery and equipment
✅ Architectural & Design Fees – Payments to consultants, engineers, and designers
✅ Contractor’s Bills – Total contract value for civil work
Cost of Construction Excludes
❌ Land Cost – Purchase price or lease rent of land
❌ Compensation to Workers – Paid under the Workmen’s Compensation Act
❌ GST Component – Indirect taxes levied under GST
Labour Cess on Supply and Service Cost with GST
- Labour Cess is not levied on GST; it is calculated on the pre-tax cost of construction.
- If a construction contract includes both supply and services, the cess is applied to the total contract value before adding GST.
- Example Calculation:
- Supply Cost (Materials): ₹50,00,000
- Service Cost (Labour, Machinery, etc.): ₹30,00,000
- Total Cost (before GST): ₹80,00,000
- GST @ 18% (if applicable): ₹14,40,000
- Labour Cess @ 1% on ₹80,00,000 = ₹80,000
See lessIs TDS applicable on DMATE opening Charges? What is the section and rate?
TDS is NOT applicable on Demat account opening charges because they are in the nature of bank charges or service charges, which do not fall under any specific TDS provision. Such charges are generally considered as a payment for services, and TDS is applicable only if the payment falls under a speciRead more
TDS is NOT applicable on Demat account opening charges because they are in the nature of bank charges or service charges, which do not fall under any specific TDS provision.
Such charges are generally considered as a payment for services, and TDS is applicable only if the payment falls under a specific section of the Income Tax Act.
Since Demat account opening charges are generally not categorized as professional fees, commission, or contractual payment, TDS is NOT required to be deducted under the Income Tax Act.
See lessWhen E way bill is not required?
As per Rule 138 of the CGST Rules, 2017, an E-Way Bill is NOT required in the following cases: Goods Value Below ₹50,000 (Rule 138(1)) If the value of goods (excluding GST) being transported is less than ₹50,000. Transport by Non-Motorized Vehicles (Rule 138(14)(a)) No E-Way Bill is required if goodRead more
As per Rule 138 of the CGST Rules, 2017, an E-Way Bill is NOT required in the following cases:
These provisions ensure that small-value shipments, government-regulated goods, and special cases like customs and defense-related movements are exempt from the E-Way Bill requirement.
See lessWhen Ind AS are applicable?
Ind AS applies based on company size and listing status. 1. Mandatory Applicability: From April 1, 2016 → Listed & unlisted companies with net worth ₹500 crore+. From April 1, 2017 → All listed companies & unlisted companies with net worth ₹250 crore+. From April 1, 2018 → Banks, NBFCs &Read more
Ind AS applies based on company size and listing status.
1. Mandatory Applicability:
2. Voluntary Adoption:
3. Not Required for:
Net Worth = (Paid-up Share Capital) + (Reserves & Surplus) – (Accumulated Losses) – (Deferred Expenditure Not Written Off)
See lessWhen Labor cess is applicable?
The Building & Other Construction Workers’ Welfare Cess (BOCWW Cess) is a levy imposed on the construction costs incurred by employers for building and other construction activities. As per Section 2(1)(d) of the Building and Other Construction Workers (Regulation of Employment and Conditions ofRead more
The Building & Other Construction Workers’ Welfare Cess (BOCWW Cess) is a levy imposed on the construction costs incurred by employers for building and other construction activities.
As per Section 2(1)(d) of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, read with Section 2(d) of the Building and Other Construction Workers’ Welfare Cess Act, 1996, the term “building or other construction work” has a broad scope. It includes activities such as construction, alteration, repairs, maintenance, and demolition related to various structures, including buildings, streets, roads, railways, airfields, irrigation systems, drainage works, flood control projects (including stormwater drainage), power generation and distribution, waterworks, oil and gas installations, electric lines, telecommunication networks, dams, canals, tunnels, bridges, pipelines, transmission towers, and cooling towers. The government may also specify additional construction works through notifications. However, it excludes any construction activities covered under the Factories Act, 1948, or the Mines Act, 1952.
The BOCWW Cess is imposed on the total construction cost incurred by employers. As per Sections 3(1) and 3(3) of the Building and Other Construction Workers’ Welfare Cess Act, 1996, along with Notification No. S.O. 2899 dated 26.09.1996, the cess is charged at 1% of the total construction cost.
See less